TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 1. PRACTICE AND PROCEDURE

Subchapter I. PERMIT PROCESSING

16 TAC §1.201

The Railroad Commission of Texas (Commission) proposes amendments to §1.201, relating to Time Periods for Processing Applications and Issuing Permits Administratively. The Commission proposes the amendments in order to conform the rule text and Table 1 in §1.201 with organizational changes made at the Commission, with substantive changes adopted in rules in other chapters, and with the transfer of the Quarry Safety program to the Texas Department of Transportation, pursuant to House Bill (HB) 3442, 78th Legislature (2003) (Acts 2003, 78th Leg., ch. 200, eff. September 1, 2003).

The proposed amendments to the rule text and to the table are non-substantive and made for clarification purposes. Proposed changes that reflect the new organizational structure of the Commission are found in subsections (a), (d), and (e); these changes indicate the correct names of Commission divisions, employee titles, and the title of Chapter 1. In certain rows, the name of an Oil and Gas Division section is changed from the "Production and Permitting Section" to the new name, the "Permitting/Production Services Section." This change is found in the rows for §§3.6, 3.10, 3.23, 3.38, 3.41, 3.43, 3.48, the three rows for §§3.50, 3.57, 3.83, and 3.101.

In the row for §3.70, the rule number is corrected from the old number of §3.65, and the section name is corrected from the Gas Services Division "Pipeline Safety Section" to the "License and Permit Section."

In the row for §3.81, the rule number is corrected from the old number of §3.77.

In the row for §9.10, the rule number and title are corrected from the old rule number and title, and the Gas Services Division section is corrected to the new "License and Permit Section." The $20 fee is correct but applies only to an employee-level examination; the $50 fee for a management-level examination is added. These fees previously were adopted in §9.10 and are not new.

In the row for §9.27, the rule number is corrected and the division is corrected from Gas Services Division, LP-Gas Section, to the new "Rail/LP-Gas/Pipeline Safety Division." The reference to an "individual application" is deleted to conform to the current language of §9.27.

A new row is added for §9.54, Commission-Approved Outside Instructors; this rule applies to persons who wish to provide Commission-approved training or continuing education to LP-gas companies or employees. The Alternative Fuels Research and Education Division processes these applications, which are made on written request, do not require a Form P-5, require an application fee of $300, and have an initial review period of 14 days and a final review period of 10 days. These requirements previously were adopted in §9.54 and are not new.

In the row for §9.101, the rule number and the division name are corrected in the same manner as the row for §9.27.

Four rows are deleted from the Table because the Quarry Safety program was transferred from the Commission to the Texas Department of Transportation; the deleted rows are for §§11.1038 (two rows), 11.1043, and 11.1045.

In the row for §12.148, the initial review period has decreased from 120 days to 60 days.

In the row for §12.226, regarding administrative permit revisions, the application form has been corrected from SMRD-1C to SMRD-2C; the application fee for a permit revision of $500 added; the footnote deleted; and the initial review period changed from 120 days to 60 days. The $500 fee previously was adopted in §12.108(a)(2) and is not a new fee.

In the row for §§12.231-12.233, the application fee for a permit transfer of $500 has been added; again, this fee previously was adopted in §12.108(a)(2) and is not a new fee.

In the row for §13.35, the division name has been corrected to the Rail/LP-Gas/Pipeline Safety Division, and the reference to an individual application has been deleted; as with §9.27, §13.35 requires an application form.

In the rows for both §13.70 and §14.2019, the rule titles are corrected and the new "License and Permit Section" name is added. As with §9.10, a statement clarifying that the $20 examination fee is for an employee-level examination and the $50 fee for a management-level examination is added; these fees previously were adopted in §9.10 and are not new.

In the row for §14.2040, the rule number and division name are corrected.

In the row for §14.2052, the rule number and division name are corrected, and the reference to an individual application is deleted in the same manner as in the rows for §§9.27 and 13.35.

Finally, in the row for the clearance deviation authorization pursuant to Texas Revised Civil Statutes Annotated, article 6559f, the division name is corrected.

Mary Ross McDonald, Managing Director, Office of General Counsel, has determined that for each year of the first five years that the conforming amendments to §1.201 will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the amended rule. All fees shown on Table 1 of §1.201 have been adopted in other Commission rules and are not new. The proposed changes to §1.201 are being made for administrative convenience, to clarify applicable time periods, and to ensure consistency between Commission rules concerning application fees which are imposed under other Commission rules.

Ms. McDonald has also estimated that there will be no increased cost of compliance with the proposed amendments for the individual, small business or micro-business entities because there are no new fees or other new requirements associated with the proposed amendments to §1.201.

Ms. McDonald has determined that for each year of the first five years that the amended section will be in effect, the primary public benefit will be the consistency of Commission rules with respect to application fees and processing time lines.

Comments on the proposed amendments may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at www.rrc.state.tx.us/rules/commentform.html; or by electronic mail to rulescoordinator@rrc.state.tx.us. The Commission will accept comments for 30 days after publication in the Texas Register . For further information, call Ms. McDonald at (512) 463-7008. The status of Commission rulemakings in progress is available at www.rrc.state.tx.us/rules/proposed.html.

The Commission proposes the amendments to §1.201 pursuant to Texas Government Code, §§2005.001 - 2005.007, which require the Commission to adopt procedural rules for processing permit applications and issuing permits and to establish by rule a complaint procedure allowing permit applicants to complaint directly to the chief administrator of the agency; Texas Government Code, §2001.004, which requires agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; and HB 3442 (78th Legislature, 2003) (Acts 2003, 78th Leg., Ch. 200, eff. September 1, 2003).

Texas Government Code, §2001.004 and §§2005.001-2005.007, and Texas Natural Resources Code, Chapter 133, as amended by HB 3442 (Acts 2003, 78th Leg., Ch. 200, eff. September 1, 2003), are affected by the proposed amendments.

Issued in Austin, Texas on February 24, 2004.

§1.201.Time Periods for Processing Applications and Issuing Permits Administratively.

(a) Applicability. This rule applies to the permits listed in Column A of Table 1 of this section. For purposes of this rule, the term "permit" includes any authorization issued administratively by the Commission, through the Oil and Gas Division, the Gas Services Division, the Surface Mining and Reclamation Division, or the Rail/LP-Gas/Pipeline Safety [ Rail ] Division, and required by the Commission either to engage in or conduct a specific activity or to deviate from requirements, standards, or conditions in statutes or Commission rules and for which the median processing time exceeds seven days.

Figure: 16 TAC §1.201(a)

(b) (No change.)

(c) Time periods.

(1) The date a permit application is received under this section is the date the application reaches the designated division or section within a division [ of the Commission ] as shown in Column B of Table 1.

(2) - (7) (No change.)

(d) Complaint procedure.

(1) An applicant may complain directly to the Executive Director [ of Energy Operations ] if a division or section does not process an application within the applicable time periods shown in Columns F and G of Table 1, and may request a timely resolution of any dispute arising from the claimed delay. All complaints shall be in writing and shall state the specific relief sought, which may include the full reimbursement of the fee paid in that particular application process, if any, as shown in Column E of Table 1. As soon as possible after receiving a complaint, the Executive Director [ of Energy Operations ] shall notify the appropriate division director of the complaint.

(2) Within 30 days of receipt of a complaint, the division director of the division or section processing the application that is the subject of the complaint shall submit to the Executive Director [ of Energy Operations ] a written report of the facts relating to the processing of the application. The report shall include the division director's explanation of the reason or reasons the division or section did or did not exceed the established time periods. If the Executive Director [ of Energy Operations ] does not agree that the division or section has violated the established periods or finds that good cause existed for the division or section to have exceeded the established periods, the Executive Director may deny the relief requested by the complaint.

(3) (No change.)

(4) The Executive Director [ of Energy Operations ] shall make the final decision and provide written notification of the decision to the applicant and the division or section within 60 days of receipt of the complaint.

(e) Hearings. If an application is docketed as a contested case proceeding, it is governed by the time periods in this chapter (relating to [ General Rules of ] Practice and Procedure) once the application has been filed with the Docket Services Section of the Office of General Counsel.

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 February 24, 2004.

TRD-200401369

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 11, 2004

For further information, please call: (512) 475-1295


Chapter 15. ALTERNATIVE FUELS RESEARCH AND EDUCATION DIVISION

Subchapter B. PROPANE CONSUMER REBATE PROGRAM

16 TAC §15.125

The Railroad Commission of Texas proposes to amend §15.125 (relating to Application) to change the application period for certain rebates from 60 days after installation to 30 days after installation. This change was recommended by the AFRED (Alternative Fuels Research and Education Division) advisory committee as a means of better managing the consumer rebate program budget.

All administrative requirements of the rebate program will remain unchanged, except that an applicant for a rebate on domestic equipment, such as an appliance, will have 30 days rather than 60 days after installation to submit an application for a rebate. Thirty days appears to be adequate time, given the brevity and simplicity of the application and required documentation for these rebates. The application for a rebate on domestic equipment consists of a one- or two-page form, depending on the type of rebate, verifying the equipment for which the rebate is being sought. The form requires, for example, the make, model, and serial number of the eligible equipment installed or being replaced; the date and physical address of the installation; the applicant's name, address, and telephone number; and the participating propane marketer's name, address, telephone number, and Railroad Commission LP-Gas license number. The form also requires the signature of the applicant and the Company Representative and, for certain rebate amounts, the applicant's tax identification number or social security number. The required documentation is typically a one-page work order showing that the equipment for which the rebate is being sought is installed and operating in the State of Texas in compliance with Railroad Commission requirements.

The proposed amendment in §15.125(a) adds language specifying that the forms and supporting documentation must include required information, must describe with sufficient particularity the equipment for which the rebate is being sought, and must show that the equipment is installed and operating in the State of Texas in compliance with Railroad Commission requirements.

The proposed amendments in §15.125(d) make the distinction between the deadlines applicable to domestic equipment rebates and to other types of rebates. An application for a rebate on domestic equipment, such as an appliance, must be received at the Commission no later than 30 days following the date of the eligible installation to be eligible for a rebate. An application for a rebate on a motor vehicle, industrial lift truck, or other industrial equipment must be received at the Commission no later than 60 days following the date of the eligible installation to be eligible for a rebate.

Dan Kelly, Director, Alternative Fuels Education and Research Division, has determined that for the first five years that the proposed amendments will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the section as amended. The proposed amendments make it possible to identify and report more quickly the obligated funds relating to the consumer rebate program, but do not change the amounts of the rebates or alter the cost of administering the consumer rebate program.

Mr. Kelly has also determined that there will be no cost of compliance with the proposed amendments for individuals, small businesses, or micro-businesses that choose to participate in the voluntary consumer rebate program. All administrative requirements of the program will remain unchanged, except that applicants for rebates on domestic equipment, such as appliances, will have 30 days instead of 60 days after installation to submit applications for rebates. Shortening the time for submitting a rebate application appears to be unlikely to impose any additional costs on voluntary consumer rebate program participants, given the simplicity of the application requirements, which remain unchanged. There is no additional economic cost to persons who would be required to comply with the section as amended, because participation in the consumer rebate program is voluntary.

Mr. Kelly has also determined that for each the proposed amendments are in effect, the public benefit anticipated as a result of enforcing or administering the section as amended will be improved management of the consumer rebate program budget, because quarterly and annual application rates and volumes will have to be forecast only 30 days in advance rather than 60 days in advance.

Comments on the proposal may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at www.rrc.state.tx.us/rules/commentform.html; or by electronic mail to rulescoordinator@rrc.state.tx.us. The Commission will accept comments for 30 days after publication in the Texas Register . The Commission encourages all interested persons to submit comments no later than the deadline. The Commission cannot guarantee that comments submitted after the deadline will be considered. For further information, call Mr. Kelly at (512) 463-7291 or AFRED Marketing and Public Education Director Heather Ball at (512) 463-7359. The status of Commission rulemakings in progress is available at www.rrc.state.tx.us/rules/proposed.html.

The Commission proposes the amendments under Texas Natural Resources Code, §113.2435(b), which authorizes the Commission to adopt rules relating to the establishment of consumer rebate programs for purchasers of appliances and equipment fueled by LPG or other environmentally beneficial fuels for the purpose of achieving energy conservation and efficiency or improving air quality in this state; and Texas Natural Resources Code, §113.243(c)(6), which authorizes the Commission to use money in the Alternative Fuels Research and Education Fund, now Alternative Fuels Research and Education Fund Account 101, General Revenue-Dedicated, to pay the direct and indirect costs of such programs.

Texas Natural Resources Code, §§113.243, 113.2435, and 113.246, are affected by the proposed amendments.

Issued in Austin, Texas on February 24, 2004.

§15.125.Application.

(a) Forms. Application for a rebate shall be made by a consumer on forms prescribed for that purpose by the commission. The application for a rebate consists of a one- or two-page form, depending on the type of rebate, verifying the equipment for which the rebate is being sought. The form may require, for example, the make, model, and serial number of the eligible equipment installed or being replaced; the date and physical address of the installation; the applicant's name, address, and telephone number; and the participating propane marketer's name, address, telephone number, and Railroad Commission LP-Gas license number. The form requires the signature of the applicant and the Company Representative and, for certain rebate amounts, the applicant's tax identification number or social security number. The required documentation must show that the equipment for which the rebate is being sought is installed and operating in the State of Texas in compliance with Railroad Commission requirements.

(b) - (c) (No change.)

(d) Acceptance. Applications will be accepted no earlier than the effective date of this rule and no later than the date of termination of the program. An application for a rebate on domestic equipment, such as an appliance, must be received at the Commission no later than 30 [ 60 ] days following the date of the eligible installation to be eligible for a rebate [ rebates ]. An application for a rebate on a motor vehicle, industrial lift truck, or other industrial equipment must be received at the Commission no later than 60 days following the date of the eligible installation to be eligible for a rebate. Applications may be mailed or hand-delivered to the Railroad Commission of Texas, Alternative Fuels Research and Education Division, 1701 North Congress Avenue, Room 11-170O, P.O. Box 12967, Austin, Texas 78711-2967. Applications may not be submitted electronically or by facsimile transmission (FAX).

(e) - (g) (No change.)

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 February 24, 2004.

TRD-200401367

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 11, 2004

For further information, please call: (512) 475-1295


Part 2. PUBLIC UTILITY COMMISSION OF TEXAS

Chapter 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS

Subchapter R. CUSTOMER PROTECTION RULES FOR RETAIL ELECTRIC SERVICE

16 TAC §25.484

The Public Utility Commission of Texas (commission) proposes amendments to §25.484, relating to the Texas Electric No-Call List. The proposed amendments: (1) require Retail Electric Providers (REPs) that make non-exempt telemarketing calls to purchase the Electric No- Call List; (2) require REPs to provide information, such as call logs or phone records, to the commission to investigate alleged violations of the Electric No-Call List; (3) require that such records be maintained by the REP for a period of 24 months; (4) establish presumptions relevant to enforcement of the Electric No-Call List; (5) and specify certain types of evidence that are admissible in an action to enforce the Electric No-Call List. Project Number 29159 is assigned to this proceeding.

Jaime Slaughter, Attorney, Legal and Enforcement 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. Slaughter 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 enhanced protection of consumers' privacy rights by a curtailment of unsolicited telemarketing or telephone calls through implementation of an effective enforcement program. There will be no adverse economic effect on small businesses or micro-businesses as a result of enforcing this section. There may be economic costs to persons who are required to comply with the proposed section. These costs are associated with the cost of purchasing the Texas No-Call List and of maintaining records of consumers contacted by the telemarketer. However, the cost will be a set fee and subscribing to the list will assist the REP in identifying customers who do not wish to receive calls. Three factors mitigate the cost of purchasing and updating the list. First, REPs have been required to comply with the Texas No-Call rule as of June 17, 2002. Second, REPs are required to purchase and update the list in order to comply with Federal Regulations. Therefore, REPs' cost of doing business already reflect the initial costs of the list and quarterly updates. Third, the incremental costs associated with record retention are likely to vary from business to business, based upon types of equipment deployed, and are therefore difficult to ascertain. The commission seeks comments on this issue. However, the commission believes that the benefits accruing to the public from implementation of the proposed section will outweigh these incremental costs.

Mr. Slaughter 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 (APA), Texas Government Code §2001.022.

The commission staff will conduct a public hearing on this rulemaking under the Administrative Procedure Act, Texas Government Code §2001.029 at the commission's offices, located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701, on Tuesday, May 4, 2004, at 3:30 p.m.

Comments on the proposed amendments of §25.484 (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. Reply comments may be submitted within 45 days after publication. Comments should be organized in a manner consistent with the organization of the proposed rule(s). 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. All comments should refer to Project Number 29159.

These amendments are proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement 2004) (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 PURA §39.1025 which provides the commission with the authority to operate the no-call database and prohibits the telephone solicitation of an electricity customer who has previously advised the commission that he/she does not want to receive such solicitations. In addition, these amendments are proposed under the Texas Business and Commerce Code Annotated §§44.101-.104 (Renumbered from §§43.101-.104 by Acts 2003, 78th Leg., ch. 1275, §2(3), eff. Sept 1, 2003) (Vernon 2002 and Supplement 2004) which grants the commission the authority to adopt rules to administer and enforce the no-call list.

Cross Reference to Statutes: Public Utility Regulatory Act §14.002 and §39.1025; and Texas Business and Commerce Code Annotated §§44.101 - 44.104.

§25.484.Texas Electric No-Call List.

(a) Purpose. This section implements the Public Utility Regulatory Act (PURA) §39.1025, relating to Limitations on Telephone Solicitation, and the Texas Business & Commerce Code Annotated (Bus. & Com. Code) §44.103 [ §43.103 ] relating to rules, customer information, and isolated violations of the Texas no-call list.

(b) Application. This section applies to retail electric providers (REPs) as defined in §25.5 of this title (relating to Definitions). A REP acting as a telemarketer, as defined by §26.37 of this title (relating to Texas No-Call List), is also subject to the provisions of §26.37 of this title.

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

(1) Consumer good or service--For purposes of this section, consumer good or service has the same meaning as Bus. & Com. Code §44.002(3) [ §43.002(3) ] relating to Definitions.

(2) Electric no-call database--Database administered by the commission or its designee that contains the names, addresses, telephone numbers and dates of registration for all Texas electric no-call registrants. Lists or other information generated from the electric no-call database shall be deemed to be a part of the database for purposes of enforcing this section.

(3) Electric no-call list--List that is published and distributed as required by subsection (f)(2) of this section.

(4) Electric no-call registrant--A telephone customer who has registered, by application and payment of accompanying fee, for the Texas electric no-call list.

(5) Established business relationship--A prior or existing relationship that has not been terminated by either party, and that was formed by voluntary two-way communication between a person and a consumer regardless of whether consideration was exchanged, regarding consumer goods or services offered by the person.

(6) Telemarketing call--An unsolicited telephone call made to:

(A) solicit a sale of a consumer good or service;

(B) solicit an extension of credit for a consumer good or service; or,

(C) obtain information that may be used to solicit a sale of a consumer good or service or to extend credit for sale.

(7) Telephone call--A call or other transmission that is made to or received at a telephone number within an exchange in the state of Texas , including but not limited to:

(A) a call made by an automatic dial announcing device (ADAD); or,

(B) a transmission to a facsimile recording device.

(d) Requirement of REPs. A REP shall not make or cause to be made a telemarketing call to a telephone number that has been published for more than 60 calendar days on the Texas electric no-call list. A REP shall purchase each published version of the electric no-call list unless the REP does not make or cause to be made a telemarketing call, or only makes or causes to be made telephone calls that are exempt pursuant to subsection (e) of this section.

(e) Exemptions. This section shall not apply to a telephone call made:

(1) By an electric no-call registrant that is the result of a solicitation by a REP or in response to general media advertising by direct mail solicitations that clearly, conspicuously, and truthfully make all disclosures required by federal or state law;

(2) In connection with:

(A) An established business relationship; or,

(B) A business relationship that has been terminated, if the call is made before the later of:

(i) the date of publication of the first Texas electric no-call list on which the electric no-call registrant's telephone number appears; or

(ii) one year after the date of termination; or,

(3) To collect a debt.

(f) Electric no-call database.

(1) Administrator. The commission or its designee shall establish and provide for the operation of the electric no-call database.

(2) Distribution of database.

(A) Timing. Beginning on April 1, 2002, the administrator of the electric no-call database will update and publish the entire Texas electric no-call list on January 1, April 1, July 1, and October 1 of each year;

(B) Fees. The no-call electric list shall be made available to subscribing REPs for a set fee not to exceed $75 per list per quarter;

(C) Format. The commission or its designee will make the no-call list available to subscribing REPs by:

(i) electronic internet access in a downloadable format;

(ii) Compact Disk Read Only Memory (CD-ROM) format;

(iii) paper copy, if requested by the REP; and,

(iv) any other format agreed upon by the current administrator of the no-call database and the subscribing REP.

(3) Intended use of the electric no-call database and electric no-call list.

(A) The electric no-call database shall be used only for the intended purposes of creating an electric no-call list and promoting and furthering statutory mandates in accordance with PURA §39.1025 and the Bus. & Com. Code, Chapter 43 relating to Telemarketing. Neither the electric no-call database nor a published electric no-call list shall be transferred, exchanged or resold to a non-subscribing entity, group, or individual, regardless of whether compensation is exchanged.

(B) The no-call database is not open to public inspection or disclosure.

(C) The administrator shall take all necessary steps to protect the confidentiality of the no-call database and prevent access to the no-call database by unauthorized parties.

(4) Penalties for misuse of information. Improper use of the electric no-call database or a published electric no-call list by the administrator, REPs, or any other person, regardless of the method of attainment, shall be subject to administrative penalties and enforcement provisions contained in §22.246 of this title (relating to Administrative Penalties).

(g) Notice. A REP shall provide notice of the electric no-call list to its customers as specified by this subsection. In addition to the required notice, the REP may engage in other forms of customer notification.

(1) Content of notice. A REP shall provide notice in compliance with §25.473 of this title (relating to Non-English Language Requirements) that, at a minimum, clearly explains the following:

(A) Beginning January 1, 2002, customers may add their name, address and telephone number to a state-sponsored electric no-call list that is intended to limit the number of telemarketing calls received relating to the customer's choice of REPs;

(B) When a customer who registers for inclusion on the electric no-call list can expect to stop receiving telemarketing calls on behalf of a REP;

(C) A customer must pay a fee to register for the electric no-call list;

(D) Registration of a telephone number on the electric no-call list expires on the fifth anniversary of the date the number is first published on the list;

(E) Registration of a telephone number on the electric no-call list can be accomplished via the United States Postal Service, Internet, or telephonically;

(F) The customer registration fee, which cannot exceed five dollars per term, must be paid by credit card when registering online or by telephone. When registering by mail, the fee must be paid by credit card, check or money order;

(G) The toll-free telephone number, website address, and mailing address for registration; and,

(H) A customer that registers for inclusion on the electric no-call list may continue to receive calls from telemarketers other than REPs, and a statement that the customer may instead or may also register for a no-call list that is intended to limit telemarketing calls regarding consumer goods and services in general, including electric service.

(2) Publication of notice. A REP shall include notice in its Terms of Service document or Your Rights as a Customer disclosure. The notice shall be easily legible, prominently displayed and comply with the requirements listed in paragraph (1) of this subsection.

(3) Records of customer notification. A REP shall provide a copy of records maintained under the requirements of this subsection as specified by §25.491 of this title (relating to Record Retention and Reporting Requirements).

(h) Violations.

(1) Separate occurrence. Each telemarketing call to a telephone number on the electric no-call list shall be deemed a separate occurrence. Upon request from the commission or commission staff, a REP shall provide, within 21 days of such a request, information sufficient for the commission to investigate complaints regarding violations of the electric no-call list such as call logs or phone records.

(2) Isolated occurrence. A telemarketing call made to a number on the electric no-call list is not a violation of this section if the telemarketing call is determined by the commission to be an isolated occurrence.

(A) An isolated occurrence is an event, action, or occurrence that arises unexpectedly and unintentionally, and is caused by something other than a failure to implement or follow reasonable procedures. An isolated occurrence may involve more than one separate occurrence, but it does not involve a pattern or practice.

(B) The burden to prove that the telemarketing call was made in error and was an isolated occurrence rests upon the REP who made (or caused to be made) the call. In order for a REP to assert as an affirmative defense that a potential violation of this section was an isolated occurrence, the REP must provide evidence of the following:

(i) The REP has purchased the most recently published update to the Texas electric no-call list, unless the entirety of the REP's business is comprised of making or causing to be made telephone calls that are exempt pursuant to subsection (e) of this section and the REP can provide sufficient proof of such;

(ii) [ (i) ] The REP has adopted and implemented written procedures to ensure compliance with this section and effectively prevent telemarketing calls that are in violation of this section, including taking corrective actions when appropriate;

(iii) [ (ii) ] The REP has trained its personnel in the established procedures; and,

(iv) [ (iii) ] The telemarketing call that violated this section was made contrary to the policies and procedures established by the REP.

(i) Record retention; Provision of records; Presumptions.

(1) A REP shall maintain a record of all telephone numbers it has attempted to contact, a record of all telephone numbers it has contacted, and the date of each, for a period of not less than 24 months from the date the call was attempted or completed. Such records include all calls the REP has caused to be made or attempted whether by itself or by any other person or entity if such telemarketing calls terminate in this state.

(2) Upon request from the commission or commission staff, a REP shall provide, within 21 calendar days, all information relating to the commission's investigation of complaints regarding violations of the no-call list including, but not limited to, the call logs or phone records described in this paragraph.

(3) Failure by the REP to respond, or to provide a thorough response, within the time specified in paragraph (2) of this subsection establishes a violation of this section.

(4) Failure of a REP to produce records that demonstrate its compliance with subsection (h)(2)(B)(i) of this section within the time specified in paragraph (2) of this subsection establishes a violation of this section.

(j) Evidence. The rules of evidence as applied in a non-jury civil case in district court govern contested case hearings, including enforcement proceedings to enforce the provisions of this section, conducted by SOAH, except that evidence inadmissible under those rules may be admitted if it meets the standards set out in Texas Government Code §2001.081. Such evidence may include, but is not limited to, one or more affidavits from the recipient of a telemarketing call.

(k) [ (i) ] Enforcement and penalties. The commission has jurisdiction to investigate REP violations of this section, as specified in §25.492 of this title (relating to Non- Compliance with Rules or Orders; Enforcement by the Commission).

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 March 1, 2004.

TRD-200401652

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: April 11, 2004

For further information, please call: (512) 936-7223


Chapter 26. SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS

Subchapter B. CUSTOMER SERVICE AND PROTECTION

16 TAC §26.37

The Public Utility Commission of Texas (commission) proposes amendments to §26.37, relating to the Texas No-Call List. The proposed amendments require telemarketers to: (1) purchase the No-Call List; (2) provide information, such as call logs or phone records, to the commission to investigate alleged violations of the No-Call List; and (3) require that such records be maintained by the telemarketer for a period of 24 months. The proposed amendments also: (1) establish presumptions relevant to enforcement of the No-Call List; and (2) specify certain types of evidence that are admissible in an action to enforce the No-Call List. Project Number 29140 is assigned to this proceeding.

Jaime Slaughter, Attorney, Legal and Enforcement 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. Slaughter 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 enhanced protection of consumers' privacy rights by a curtailment of unsolicited telemarketing or telephone calls through implementation of an effective enforcement program. There will be no adverse economic effect on small businesses or micro-businesses as a result of enforcing this section. There may be economic costs to persons who are required to comply with the proposed section. These costs are associated with the cost of purchasing the Texas No-Call List and of maintaining records of consumers contacted by the telemarketer. However, the cost will be a set fee and subscribing to the list will assist the telemarketer in identifying customers who do not wish to receive calls. Three factors mitigate the cost of purchasing and updating the list. First, telemarketers have been required to comply with the Texas No-Call rule as of June 17, 2002. Second, telemarketers are required to purchase and update the list in order to comply with Federal Regulations. Therefore, telemarketers' cost of doing business already reflect the initial costs of the list and quarterly updates. Third, the incremental costs associated with record retention are likely to vary from business to business, based upon types of equipment deployed, and are therefore difficult to ascertain. The commission seeks comments on this issue. However, the commission believes that the benefits accruing to the public from implementation of the proposed section will outweigh these incremental costs.

Mr. Slaughter 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 (APA), Texas Government Code §2001.022.

The commission staff will conduct a public hearing on this rulemaking under the Administrative Procedure Act, Texas Government Code §2001.029 at the commission's offices, located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701, on Tuesday, May 4, 2004 at 1:30 p.m.

Comments on the proposed amendments of §26.37 (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. Reply comments may be submitted within 45 days after publication. Comments should be organized in a manner consistent with the organization of the proposed rule(s). 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. All comments should refer to Project Number 29140.

These amendments are proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998 and Supplement 2004) (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. In addition, these amendments are proposed under the Texas Business and Commerce Code Annotated §§44.101-.104 (Renumbered from §§43.101-.104 by Acts 2003, 78th Leg., ch. 1275, §2(3), eff. Sept 1, 2003) (Vernon 2002 and Supplement 2004) which grants the commission the authority to adopt rules to administer and enforce the no-call list.

Cross Reference to Statutes: Public Utility Regulatory Act §14.002; Texas Business and Commerce Code Annotated §§44.101 - 44.104.

§26.37.Texas No-Call List.

(a) Purpose. This section implements the Texas Business & Commerce Code Annotated §44.103 [ §43.103 ] (Bus. & Com. Code) relating to rules, customer information, and isolated violations of the Texas no-call list.

(b) Application. This section is applicable to:

(1) Certificated telecommunications utilities (CTUs), as defined by §26.5 of this title (relating to Definitions), that provide local exchange telephone service to residential customers in Texas; and,

(2) Telemarketers, as defined in subsection (c)(9) of this section including, but not limited to, retail electric providers as defined in §25.5 of this title (relating to Definitions).

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

(1) Consumer good or service--For purposes of this section, consumer good or service has the same meaning as Bus. & Com. Code §44.002(3) [ §43.002(3) ] relating to Definitions.

(2) Established business relationship--A prior or existing relationship that has not been terminated by either party, and that was formed by voluntary two-way communication between a person and a consumer regardless of whether consideration was exchanged, regarding consumer goods or services offered by the person.

(3) No-call database--Database administered by the commission or its designee that contains the names, addresses, non-business telephone numbers and dates of registration for all Texas no- call registrants. Lists or other information generated from the no-call database shall be deemed to be a part of the database for purposes of enforcing this section.

(4) No-call list--List that is published and distributed as required by subsection (f)(2) of this section.

(5) No-call registrant--A telephone customer who has registered, by application and payment of accompanying fee, for the Texas no-call list.

(6) State licensee--A person licensed by a state agency under a law of this state that requires the person to obtain a license as a condition of engaging in a profession or business.

(7) Telemarketing call--An unsolicited telephone call made to:

(A) solicit a sale of a consumer good or service;

(B) solicit an extension of credit for a consumer good or service; or,

(C) obtain information that may be used to solicit a sale of a consumer good or service or to extend credit for sale.

(8) Telephone call--A call or other transmission that is made to or received at a telephone number within an exchange in the state of Texas , including but not limited to:

(A) a call made by an automatic dial announcing device (ADAD); or,

(B) a transmission to a facsimile recording device.

(9) Telemarketer--A person who makes or causes to be made a telemarketing call that is made to a telephone number in an exchange in the state of Texas .

(d) Requirement of telemarketers. A telemarketer shall not make or cause to be made a telemarketing call to a telephone number that has been published for more than 60 calendar days on the Texas no-call list. A telemarketer shall purchase each published version of the no- call list unless the entirety of the telemarketer's business is comprised of telephone calls that are exempt pursuant to subsection (e) of this section.

(e) Exemptions. This section shall not apply to a telephone call made:

(1) By a no-call registrant that is the result of a solicitation by a seller or telemarketer or in response to general media advertising by direct mail solicitations that clearly, conspicuously, and truthfully make all disclosures required by federal or state law;

(2) In connection with:

(A) An established business relationship; or,

(B) A business relationship that has been terminated, if the call is made before the later of

(i) the date of publication of the first Texas no-call list on which the no-call registrant's telephone number appears; or,

(ii) one year after the date of termination;

(3) Between a telemarketer and a business, other than by a facsimile solicitation, unless the business informed the telemarketer that the business does not wish to receive telemarketing calls from the telemarketer;

(4) To collect a debt;

(5) By a state licensee if:

(A) The call is not made by an ADAD;

(B) The solicited transaction is not completed until a face-to-face sales presentation by the seller, and the consumer is not required to pay or authorize payment until after the presentation; and,

(C) The consumer has not informed the telemarketer that the consumer does not wish to receive telemarketing calls from the telemarketer; or,

(6) By a person who is not a telemarketer, as defined in subsection (c)(9) of this section.

(f) No-call database.

(1) Administrator. The commission or its designee shall establish and provide for the operation of the no-call database.

(2) Distribution of database.

(A) Timing. Beginning on April 1, 2002, the administrator of the no-call database will update and publish the entire Texas no-call list on January 1, April 1, July 1, and October 1 of each year;

(B) Fees. The no-call list shall be made available to subscribing telemarketers for a set fee not to exceed $75 per list per quarter;

(C) Format. The commission or its designee will make the no-call list available to subscribing telemarketers by:

(i) electronic internet access in a downloadable format;

(ii) Compact Disk Read Only Memory (CD-ROM) format;

(iii) paper copy, if requested by the telemarketer; and,

(iv) any other format agreed upon by the current administrator of the no-call database and the subscribing telemarketer.

(3) Intended use of the no-call database and no-call list.

(A) The no-call database shall be used only for the intended purposes of creating a no-call list and promoting and furthering statutory mandates in accordance with the Bus. & Com. Code, Chapter 43 relating to Telemarketing. Neither the no-call database nor a published no-call list shall be transferred, exchanged or resold to a non-subscribing entity, group, or individual regardless of whether compensation is exchanged.

(B) The no-call database is not open to public inspection or disclosure.

(C) The administrator shall take all necessary steps to protect the confidentiality of the no-call database and prevent access to the no-call database by unauthorized parties.

(4) Penalties for misuse of information. Improper use of the no-call database or a published no-call list by the administrator, telemarketers, or any other person regardless of the method of attainment, shall be subject to administrative penalties and enforcement provisions contained in §22.246 of this title (relating to Administrative Penalties).

(g) Notice. A CTU shall provide notice of the no-call list to each of its residential customers as specified by this subsection. In addition to the required notice, the CTU may engage in other forms of customer notification.

(1) Content of notice. A CTU shall provide notice in compliance with §26.26 of this title (relating to Foreign Language Requirements) that, at a minimum, clearly explains the following:

(A) Beginning January 1, 2002, residential customers may add their name, address and non- business telephone number to a state-sponsored no-call list that is intended to limit the number of telemarketing calls received;

(B) When a customer who registers for inclusion on the no-call list can expect to stop receiving telemarketing calls;

(C) A customer must pay a fee to register for the no-call list;

(D) Registration of a non-business telephone number on the no-call list expires on the third anniversary of the date the number is first published on the list;

(E) Registration of a telephone number on the no-call list can be accomplished via the United States Postal Service, Internet, or telephonically;

(F) The customer registration fee, which cannot exceed three dollars per term, must be paid by credit card when registering online or by telephone. When registering by mail, the fee must be paid by credit card, check or money order;

(G) The toll-free telephone number, website address, and mailing address for registration; and,

(H) A customer that registers for inclusion on the no-call list may continue to receive calls from groups, organizations, and persons who are exempt from compliance with this section, including a listing of the entities exempted as specified in subsection (e) of this section.

(2) Publication of notice.

(A) Telephone directory. A CTU that publishes, or has an affiliate that publishes, a residential telephone directory may include in the directory a prominently displayed toll-free number and Internet mail address, established by the commission, through which a person may request a form for, or request to be placed on, the Texas no-call list in order to avoid unwanted telemarketing calls.

(B) Notice to individual customers. A CTU shall provide notice of the Texas no-call list to each of its residential customers in Texas by one or more of the methods listed in clauses (i)-(v) of this subparagraph.

(i) an insert in the customer's billing statement. Electronic notification is permissible for a customer who, during the notification period, is receiving billing statements from the CTU in an electronic format;

(ii) a bill message;

(iii) separate direct mailing;

(iv) customer newsletter; or

(v) Customer Rights disclosure as provided in §26.31(a)(4) of this title (relating to Disclosures to Applicants and Customers).

(3) Timing of notice. Beginning in 2002, a CTU shall provide notice of the Texas no-call list to its residential customers using one of the methods listed in paragraph (2)(B)(i)-(v) of this subsection.

(A) A CTU that uses a notification method listed in paragraph (2)(B)(i)-(iv) of this subsection, shall provide the notice annually beginning in 2002. The annual notice shall be easily legible, prominently displayed, and comply with the requirements listed in paragraph (1) of this subsection.

(B) A CTU that elects the Customer Rights disclosure as its notification method as allowed in paragraph (2)(B)(v) of this subsection shall comply with the timing of distribution requirement in §26.31(a)(4) of this title. The no-call list information provided in the Customer Rights disclosure shall comply with paragraph (1) of this subsection.

(4) Records of customer notification. Upon commission request, a CTU shall provide a copy of records maintained under the requirements of this subsection to the commission. A CTU shall retain records maintained under the requirements of this subsection for a period of two years.

(h) Violations.

(1) Separate occurrence. Each telemarketing call to a telephone number on the no-call list shall be deemed a separate occurrence. Upon request from the commission or commission staff, a telemarketer shall provide, within 21 days of receipt of such a request, all information relating to the commission's investigation of complaints regarding violations of the no-call list such as call logs or phone records.

(2) Isolated occurrence. A telemarketing call made to a number on the no-call list is not a violation of this section if the telemarketing call is determined to be an isolated occurrence.

(A) An isolated occurrence is an event, action, or occurrence that arises unexpectedly and unintentionally, and is caused by something other than a failure to implement or follow reasonable procedures. An isolated occurrence may involve more than one separate occurrence, but it does not involve a pattern or practice.

(B) The burden to prove that the telemarketing call was made in error and was an isolated occurrence rests upon the telemarketer who made (or caused to be made) the call. In order for a telemarketer to assert as an affirmative defense that a potential violation of this section was an isolated occurrence, the telemarketer must provide evidence of the following:

(i) The telemarketer has purchased the most recently published version of the Texas no-call list, unless the entirety of the telemarketer's business is comprised of telephone calls that are exempt pursuant to subsection (e) of this section and the telemarketer can provide sufficient proof of such;

(ii) [ (i) ] The telemarketer has adopted and implemented written procedures to ensure compliance with this section and effectively prevent telemarketing calls that are in violation of this section, including taking corrective actions when appropriate;

(iii) [ (ii) ] The telemarketer has trained its personnel in the established procedures; and,

(iv) [ (iii) ] The telemarketing call that violated this section was made contrary to the policies and procedures established by the telemarketer.

(i) Record retention; Provision of records; Presumptions.

(1) A telemarketer shall maintain a record of all telephone numbers it has attempted to contact, a record of all telephone numbers it has contacted, and the date of each, for a period of not less than 24 months from the date the call was attempted or completed.

(2) Upon request from the commission or commission staff, a telemarketer shall provide, within 21 calendar days of receipt of such request, all information relating to the commission's investigation of complaints regarding violations of the no-call list including, but not limited to, the call logs or phone records described in this paragraph.

(3) Failure by the telemarketer to respond, or to provide a thorough response, within the time specified in paragraph (2) of this subsection establishes a violation of this section.

(4) Failure of a telemarketer to produce records that demonstrate its compliance with subsection (h)(2)(B)(i) of this section within the time specified in paragraph (2) of this subsection establishes a violation of this section.

(j) Evidence. The rules of evidence as applied in a non-jury civil case in district court govern contested case hearings, including enforcement proceedings to enforce the provisions of this section, conducted by SOAH, except that evidence inadmissible under those rules may be admitted if it meets the standards set out in Texas Government Code §2001.081. Such evidence may include, but is not limited to, one or more affidavits from the recipient of a telemarketing call.

(k) [ (i) ] Enforcement and penalties.

(1) State licensees. A state agency that issues a license to a state licensee may receive and investigate complaints concerning violations of this section by the state licensee.

(2) Telecommunications providers. The commission has jurisdiction to investigate violations of this section made by telecommunications providers, as defined in the Public Utility Regulatory Act (PURA) §51.002.

(3) Retail electric providers. The commission has jurisdiction to investigate violations of this section made by retail electric providers (REPs) as specified in §25.492 of this title (relating to Non-Compliance with Rules or Orders; Enforcement by the Commission).

(4) Other Telemarketers. A telemarketer, other than a state licensee or telecommunications provider, that violates this section shall be subject to administrative penalties pursuant to §22.246 of this title.

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 March 1, 2004.

TRD-200401654

Adriana Gonzales

Rules Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: April 11, 2004

For further information, please call: (512) 936-7223