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.