HBA-DMD S.B. 1251 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1251
By: West
State Affairs
4/27/1999
Engrossed

BACKGROUND AND PURPOSE 

Under current Texas law, a provider of basic local telephone service may
disconnect that service for nonpayment of long distance charges. S.B. 1251
prohibits a provider of basic local telephone service from disconnecting
that service for nonpayment of long distance charges. This bill requires
the Public Utility Commission of Texas to adopt and implement rules to
prevent customer abuse of the protections created by this Act. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Public Utility Commission of Texas
in SECTION 1 (Section 55.012, Utilities Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 55, Utilities Code, by adding
Section 55.012, as follows: 

Sec. 55.012. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL
TELECOMMUNICATIONS SERVICE. (a) Prohibits a provider of basic local
telecommunications service from discontinuing that service because of
nonpayment by a residential customer of charges for long distance service.
Requires payment to first be allocated to basic local telecommunications
service. 

(b) Provides that for purposes of allocating payment in this section, if
the provider of basic local telecommunications service bundles its basic
local telecommunications service with long distance service or any other
service and provides a discount for the basic local telecommunications
service because of that bundling, the rate of basic local
telecommunications service is required to be the rate the provider charges
for stand-alone basic local telecommunications service. 

(c) Requires the Public Utility Commission of Texas (commission) to adopt
and implement rules, no later than January 1, 2000, to prevent customer
abuse of the protections afforded by this section, notwithstanding
Subsection (a). Sets forth provisions that must be included in the rules. 

(d) Sets forth that the commission has all jurisdiction necessary to
establish a maximum price that an incumbent local exchange company is
authorized to charge a long distance service provider to initiate the toll
blocking capability required to be offered under the rules adopted under
Subsection (c), notwithstanding any other provision of this title. Requires
the maximum price established under this subsection to be observed by all
providers of basic local telecommunications service in the incumbent local
exchange company's certificated service area. Sets forth that the
commission has all jurisdiction necessary to enforce this section,
notwithstanding Sections 52.102 (Limited Regulatory Authority) and 52.152
(Limited Regulatory Authority), Utilities Code. 

SECTION 2.Effective date: September 1, 1999. 

SECTION 3.Emergency clause.