TITLE economic-regulation

Part II. Public Utility Commission of Texas

Chapter 23. Substantive Rules

Subchapter H. Telephone

16 TAC §23.95

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Public Utility Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Public Utility Commission of Texas (commission) proposes the repeal of §23.95, relating to Voting Procedures for Partial Deregulation or Reversal of Partial Deregulation of Telephone Cooperatives. Project Number 17709 has been assigned to this proceeding. The Appropriations Act of 1997, House Bill 1, Article IX, Section 167 (Section 167) requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist. The commission held three workshops to conduct a preliminary review of its rules. As a result of these workshops, the commission is reorganizing its current substantive rules located in 16 Texas Administrative Code (TAC) Chapter 23 to (1) satisfy the requirements of Section 167; (2) repeal rules no longer needed; (3) update existing rules to reflect changes in the industries regulated by the commission; (4) do clean-up amendments made necessary by changes in law and commission organizational structure and practices; (5) reorganize rules into new chapters to facilitate future amendments and provide room for expansion; and (6) reorganize the rules according to the industry to which they apply. As a result of this reorganization, §23.95 will be duplicative of proposed new §26.172 of this title (relating to Voting Procedures for Partial Deregulation or Reversal of Partial Deregulation of Telephone Cooperatives) in Chapter 26, Substantive Rules Applicable to Telecommunications Service Providers.

James Ezell, assistant general counsel, Office of Regulatory Affairs-Legal Division, has determined that for each year of the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Mr. Ezell has determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will be the elimination of a duplicative rule. There will be no effect on small businesses or micro businesses as a result of repealing this section. There is no anticipated economic cost to persons as a result of repealing this section.

Mr. Ezell has also determined that for each year of the first five years the proposed section is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed repeal (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication. All comments should refer to Project Number 17709, repeal of §23.95.

This repeal is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction.

Cross Reference to Statutes: Public Utility Regulatory Act §14.002.

§23.95.Voting Procedures for Partial Deregulation or Reversal of Partial Deregulation of Telephone Cooperatives.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on August 13, 1999.

TRD-9905100

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 26, 1999

For further information, please call: (512) 936-7308


Chapter 26. Substantive Rules Applicable to Telecommunications Service Providers

Subchapter I. Alternative Regulation

16 TAC §26.172

The Public Utility Commission of Texas (commission) proposes new §26.172, relating to Voting Procedures for Partial Deregulation or Reversal of Partial Deregulation of Telephone Cooperatives. The proposed new rule will replace §23.95 of this title (relating Voting Procedures for Partial Deregulation or Reversal of Partial Deregulation of Telephone Cooperatives). Project Number 17709 has been assigned to this proceeding.

The Appropriations Act of 1997, House Bill 1, Article IX, Section 167 (Section 167) requires that each state agency review and consider for readoption each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rule continues to exist. The commission held three workshops to conduct a preliminary review of its rules. As a result of these workshops, the commission is reorganizing its current substantive rules located in 16 Texas Administrative Code (TAC) Chapter 23 to (1) satisfy the requirements of Section 167; (2) repeal rules no longer needed; (3) update existing rules to reflect changes in the industries regulated by the commission; (4) do clean-up amendments made necessary by changes in law and commission organizational structure and practices; (5) reorganize rules into new chapters to facilitate future amendments and provide room for expansion; and (6) reorganize the rules according to the industry to which they apply. Chapter 26 has been established for all commission substantive rules applicable to telecommunications service providers. The duplicative sections of Chapter 23 will be proposed for repeal as each new section is proposed for publication in the new chapter.

General changes to rule language:

The proposed new section reflects different section, subsection, and paragraph designations due to the reorganization of the rules. Citations to the Public Utility Regulatory Act have been updated to conform to the Texas Utilities Code throughout the sections and citations to other sections of the commission's rules have been updated to reflect the new section designations. The Texas Register will publish this section as all new text. Persons who desire a copy of the proposed new section as it reflects changes to the existing section in Chapter 23 may obtain a redlined version from the commission's Central Records under Project Number 17709.

Other changes specific to each section:

Section 23.95(c)(9), (c)(10), (d)(9), and (d)(10) have not been included in proposed new 26.172. The sections relate to the use of a generic ballot and generic balloting instructions. The commission does not believe the use of a generic ballot or generic balloting instruction is necessary when a telephone cooperative is voting on its status of deregulation. The modification also removes the telephone cooperatives' requirement to file with the commission any alternative ballot language or alternative voting instructions.

Subsection (g) has been added to the rule. The subsection, titled "Reporting requirements," requires cooperatives to notify the commission when it votes to deregulate or reverse its deregulation. This reporting requirement will assist the commission in compiling an accurate list of telephone cooperatives that are deregulated.

James Ezell, assistant general counsel, Office of Regulatory Affairs-Legal Division, has determined that for each year of the first five-year period the proposed section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Ezell has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be to provide to all of the state's citizens adequate and efficient telecommunications service by facilitating the small incumbent local exchange carriers' abilities to offer, in a more timely manner, to subscribers those technologically advanced services that are available in metropolitan areas from large incumbent local exchange companies. There will be no effect on small businesses or micro businesses as a result of enforcing this section. There is no anticipated economic cost to persons who are required to comply with the section as proposed.

Mr. Ezell has also determined that for each year of the first five years the proposed section is in effect there should be no affect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed new rule (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed section. The commission will consider the costs and benefits in deciding whether to adopt the section. The commission also invites specific comments regarding the Section 167 requirement as to whether the reason for adopting or readopting the rule continues to exist. All comments should refer to Project Number 17709.

This new rule is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and specifically, PURA §53.306 which grants the commission authority to review changes proposed under Subchapter G.

Cross-Index to Statutes: Public Utility Regulatory Act §14.002 and §§53.301 - 53.308.

§26.172.Voting Procedures for Partial Deregulation or Reversal of Partial Deregulation of Telephone Cooperatives.

(a)

Purpose. A cooperative seeking to partially deregulate or to reverse partial deregulation shall utilize the voting procedures required in this section.

(b)

Definition. The term "majority vote" shall mean a vote of more than 50% of the valid ballots returned by the cooperative's members.

(c)

Balloting. Balloting by a cooperative shall comply with the requirements in this subsection.

(1)

A ballot and a postage-paid return envelope, or a ballot on a postage-paid postcard addressed to the cooperative, and instructions shall be provided to each member of the cooperative.

(2)

Materials required in paragraph (1) of this subsection may be provided as bill inserts or as a separate mailing.

(3)

The ballot shall be printed as a separate form on paper that is a different color from any other paper contained in the same mailing and shall be contained on one page or postcard.

(4)

Ballots shall be written in English and in Spanish if §26.26 of this title (relating to Spanish Language Requirements) is applicable.

(5)

The ballot shall be entitled:

(A)

"BALLOT SEEKING THE PARTIAL DEREGULATION OF (NAME OF COOPERATIVE)" if the ballot is one for partial deregulation; or

(B)

"BALLOT SEEKING TO REVERSE THE PARTIAL DEREGULATION OF (NAME OF COOPERATIVE)" if the ballot is one to reverse partial deregulation.

(6)

Each ballot shall:

(A)

provide brief instructions to mark with an "X" either the box "FOR" or "AGAINST" the action that is the subject of the balloting;

(B)

provide in boldface type that is larger than surrounding text the date certain by which the ballot must be postmarked for tabulation; and

(C)

contain a box labeled "FOR Authorizing the Partial Deregulation of the (Name of the Cooperative)" and a box labeled "AGAINST Authorizing the Partial Deregulation of the (Name of the Cooperative)" if the ballot is one to partially deregulate, or contain a box labeled "FOR Authorizing the Reversal of Partial Deregulation of the (Name of the Cooperative)" and a box labeled "AGAINST Authorizing the Reversal of Partial Deregulation of the (Name of the Cooperative)" if the ballot is one to reverse partial deregulation.

(7)

Ballots must include the statement "By signing this ballot, I affirm that I am the member to whom this ballot was addressed" and must provide, following the statement, lined spaces for the member to provide his or her printed name, address, telephone number, and signature.

(8)

Ballots shall not contain any statement regarding how a member should cast a vote on the action that is the subject of the balloting.

(d)

Instructions for balloting. Instructions for balloting by a cooperative shall comply with the requirements in this subsection.

(1)

Instructions for balloting shall accompany each ballot provided to a member of the cooperative.

(2)

Instructions shall be printed as a form separate from the ballot and any other insert provided in the same mailing and shall be provided in English and in Spanish, if §26.26 (relating to Spanish Language Requirements) is applicable.

(3)

Instructions shall be entitled:

(A)

"INSTRUCTIONS FOR BALLOT SEEKING THE PARTIAL DEREGULATION OF (NAME OF COOPERATIVE)" if the ballot is one for partial deregulation; or

(B)

"INSTRUCTIONS FOR BALLOT SEEKING TO REVERSE THE PARTIAL DEREGULATION OF (NAME OF COOPERATIVE)" if the ballot is one to reverse partial deregulation.

(4)

Instructions shall explain in plain language the meaning of:

(A)

partial deregulation and the effects of partial deregulation, if the vote is one to partially deregulate; or

(B)

reversal of partial deregulation and the effects of reversal of partial deregulation, if the vote is one to reverse partial deregulation.

(5)

Instructions must state in boldface type that is larger than surrounding text the date certain by which the ballot must be postmarked for tabulation.

(6)

Instructions shall explain that a ballot must be returned for tabulation via U.S. mail.

(7)

Instructions shall not contain any statement regarding how a member should cast a vote on the action that is the subject of the balloting.

(8)

Instructions shall define majority vote and shall explain that a majority vote is required in order to achieve the action that is the subject of the balloting.

(e)

Tabulation of ballots.

(1)

A ballot will be tabulated if it:

(A)

contains a mark in the box either "FOR" or "AGAINST" the action being sought;

(B)

is postmarked for tabulation within 45 days following the date that ballots are mailed to members; and

(C)

is returned via U.S. mail.

(2)

The following votes will not be tabulated:

(A)

a ballot for which neither a "FOR" nor an "AGAINST" vote is cast;

(B)

a ballot for which both a "FOR" and an "AGAINST" vote is cast;

(C)

a ballot that represents a second vote for the member;

(D)

a ballot for which the procedures required by this section are not followed;

(E)

a ballot for which the envelope or postcard bears a postmark later than the 45th day following the date the ballot or postcard was mailed to the member.

(F)

a ballot that represents a vote from a non-member customer.

(G)

a ballot which represents a proxy vote.

(H)

a ballot for which the envelope or postcard bears no legible postmark from the U.S. Postal Service unless it is received by the cooperative via the U.S. mail within 45 days following the date the ballot or postcard was mailed to the member.

(f)

Retention of Ballots.

(1)

A cooperative shall retain for 90 days after the end of the 45 day voting period all ballots and envelopes returned by the members in the voting process.

(2)

During the 90 day retention period a cooperative shall produce the ballots and envelopes to the commission for inspection if so requested by the commission.

(g)

Reporting Requirement. Any telephone cooperative deregulated prior to the effective date of this section shall file a letter with the commission within 30 days from the effective date of this section. Any telephone cooperative deregulated or reversing its deregulation after the effective date of this section shall file a letter with the commission within 30 days of deregulation or reversal of deregulation. The letter shall state whether the cooperative is partially deregulating or reversing deregulation, the date of the change, and whether its members approved the change. The letter shall be filed in Project Number 21122.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on August 13, 1999.

TRD-9905101

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 26, 1999

For further information, please call: (512) 936-7308


Subchapter R. Provisions Relating to Municipal Regulation and Rights-of-Way-Management

16 TAC §26.461

The Public Utility Commission of Texas (commission) proposes new §26.461, relating to Access Line Categories. The proposed new rule implements the provisions of House Bill 1777, 76th Legislature, Regular Session (1999). The proposed new rule will establish three competitively neutral categories of access lines for statewide use in establishing a uniform method for compensating municipalities for use of the public rights-of-way by certificated telecommunications providers. Project Number 20935 has been assigned to this proceeding.

D. Diane Parker, Senior Attorney, Office of Policy Development and Elango Rajagopal, Senior Policy Analyst, Office of Regulatory Affairs, have determined that for each year of the first five-year period the proposed section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Ms. Parker and Mr. Rajagopal have determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be to minimize the effects of rate increases on telephone customers attributable to changes in the way municipalities are compensated for the use of public rights-of-way. In addition, the categories as proposed are anticipated to make the deployment of advanced telecommunication services affordable to residential customers. As a result of enforcing this section, small telecommunications businesses or micro-businesses will be required to invest in new billing software for tracking and categorizing access lines. The economic cost to persons who are required to comply with the section as proposed cannot be determined due to the diverse billing systems used in the telecommunications industry.

Ms. Parker and Mr. Rajagopal have also determined that for each year of the first five years the proposed section is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act §2001.022.

Comments on the proposed new rule (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 20 days after publication. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed section. The commission will consider the costs and benefits in deciding whether to adopt the section. Additionally, the commission seeks comment on whether the dividing line of 6.44 Mbps between proposed category 2 and category 3 is appropriate to address changes in technology in the provisioning of advanced telecommunications services. Should the commission review this proposed division in the future, and if so, how often? All comments should refer to Project Number 20935.

This new rule is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction. This proposed rule is also authorized by House Bill 1777, 76th Legislature, Regular Session (1999) §283.055 which provides that not later than November 1, 1999, the commission shall establish not more than three categories of access lines for statewide use.

Cross-Index to Statutes: Public Utility Regulatory Act §14.002 and House Bill 1777, 76th Legislature, Regular Session (1999) §283.055.

§26.461.Access Line Categories.

(a)

Purpose. This section establishes three competitively neutral, non-discriminatory categories of access lines for statewide use in establishing a uniform method for compensating municipalities for the use of a public right-of-way by certificated telecommunications providers (CTPs).

(b)

Application. The provisions of this section apply to CTPs, as defined by subsection (c)(2) of this section, and to municipalities in the State of Texas.

(c)

Definitions. The following words and terms when used in this section, shall have the following meaning, unless the context clearly indicates otherwise.

(1)

Access lines - As defined in Local Government Code §283.002 (1).

(2)

Certificated telecommunications provider (CTP) - A person who has been issued a certificate of convenience and necessity, certificate of operating authority, or service provider certificate of operating authority by the commission to offer local exchange telephone service.

(3)

Customer - An end-use customer.

(4)

Public right-of-way - The area on, below, or above a public roadway, highway, street, public sidewalk, alley, waterway, or utility easement in which the municipality has an interest. The term does not include the airways above a right-of-way with regard to wireless telecommunications.

(d)

Access line categories. There shall be three categories of access lines. The three categories shall be as follows:

(1)

Category 1 shall include both analog and digital residential access lines, regardless of the bit rate delivered to the end use customer. This category shall not include point-to-point or private lines.

(2)

Category 2 shall include all analog and digital non-residential access lines. For digital lines the bit rate delivered to the end use customer by each access line shall be less than or equal to 6.44 Mbps. This category shall also include residential and non-residential point-to-point lines or private lines. For digital point-to-point or private lines the bit rate delivered to the end use customer shall be less than or equal to 6.44 Mbps.

(3)

Category 3 shall include all digital non-residential access lines where the bit rate delivered to the end use customer by each access line shall be greater than 6.44 Mbps. This category shall also include residential and non- residential point-to-point lines or private lines where the bit rate delivered to the end use customer shall be greater than 6.44 Mbps.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on August 13, 1999.

TRD-9905077

Rhonda Dempsey

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: September 26, 1999

For further information, please call: (512) 936-7308