Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 26.
SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
The Public Utility Commission of Texas (commission) proposes amendments
to:
Section 26.223, relating to Prohibition of Excessive COA/SPCOA Usage Sensitive
Intrastate Switched Access Rates;
Section 26.224, relating to Requirements Applicable to Basic Network Services
for Chapter 58 Electing Companies;
Section 26.225, relating to Requirements Applicable to Nonbasic Services
for Chapter 58 Electing Companies;
Section 26.401, relating to Texas Universal Service Fund (TUSF);
Section 26.404, relating to Small and Rural Incumbent Local Exchange Company
(ILEC) Universal Service Plan;
Section 26.406, relating to Implementation of the Public Utility Regulatory
Act §56.025;
Section 26.408, relating to Additional Financial Assistance (AFA); and
Section 26.423, relating to High Cost Universal Service Plan for Uncertificated
Areas where an Eligible Telecommunications Provider (ETP) Volunteers to Provide
Basic Local Telecommunications Service.
The proposed amendments will make minor, non-policy affecting, changes
to Chapter 26 Substantive Rules to bring them into conformance with associated
minor changes in the Public Utility Regulatory Act (PURA) brought about by
Senate Bill 5, 79th Legislature, Second Called Session. Substantive Rules §26.417
and §26.420 have also been found to require minor modifications to bring
them into conformance with associated minor changes in PURA, but these two
sections already have pending proposed rule changes (Project Numbers 24522
and 29077). Therefore, additional rulemaking will not proceed on §26.417
and §26.420 until the prior proposed rule changes go into effect. Project
Number 32136 is assigned to this proceeding.
Rick Talbot, Policy Analyst, Communications Industry Oversight, and James
Tourtelott, Staff Attorney, Telecommunications Legal Section, 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.
Mr. Talbot and Mr. Tourtelott 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 the administrative efficiency
of the Chapter 26 Substantive Rules conforming to PURA. There will be no adverse
economic 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. Talbot and Mr. Tourtelott 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 (APA), Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking,
if requested pursuant to 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 Thursday,
July 13, 2006, at 10:00 a.m. The request for a public hearing must be received
within 31 days after publication.
Comments on the proposed amendments 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 31 days after publication. Sixteen copies
of comments to the proposed amendment are required to be filed pursuant to §22.71(c)
of this title. 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 32136.
Subchapter J. COSTS, RATES AND TARIFFS
16 TAC §§26.223 - 26.225
These amendments are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2005) (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, §§52.155(a) and (c), 56.021,
56.025(a), 56.026(e), 58.051, 58.151, and Chapter 65, which provide the authority
for the various rule changes made herein.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
52.155(a) and (c), 56.021, 56.025(a), 56.026(e), 58.051, 58.151, and Chapter
65.
§26.223.Prohibition of Excessive COA/SPCOA Usage Sensitive Intrastate Switched Access Rates.
(a) - (b)
(No change.)
(c)
Requirements for COA/SPCOA usage sensitive intrastate
switched access rates. A telecommunications utility that holds a COA or a
SPCOA may not charge a higher aggregate amount, including any rate elements
not charged by the holder of the certificate of convenience and necessity
(CCN), for originating or terminating usage sensitive intrastate switched
access than the prevailing rates charged by the CCN holder
or the holder
of a COA issued under Chapter 65
in whose territory the call originated
or terminated unless:
(1) - (2)
(No change.)
(d)
Governance of Switched Access Rates under
PURA Chapter 65. Notwithstanding subsection (c) of this section, PURA Chapter
65 governs the switched access rates of a company that holds a COA issued
under PURA Chapter 65.
(e)
[
(1)
Methodology. The commission shall employ the following
methodology for development of the weighted statewide average composite usage
sensitive intrastate switched access rates separately for each originating
and for each terminating rate element category in subsection
(g)
[
(A)
Each CCN holder's individual rate elements' rates will
be multiplied by the total actual minutes of use (MOUs) for that rate element,
producing a total revenue for each rate element for each CCN holder.
(B)
Revenues for each CCN holder's rate element will be added
to create a statewide total revenue for that rate element.
(C)
The actual MOUs for each CCN holder's rate element will
be added to create a statewide total actual MOUs for that rate element.
(D)
The statewide total revenue for that rate element will
be divided by the statewide total actual MOUs for that rate element, producing
a weighted statewide average composite usage sensitive intrastate switched
access rate for that switched access rate element.
(2)
Recalculation.
(A)
The commission shall re-calculate the weighted statewide
average composite usage sensitive intrastate switched access rates biennially
based upon the submissions of the CCN holders, as required in subsection
(g)
[
(B)
Any certificated telecommunications utility may file a
petition requesting that the commission re-calculate the weighted statewide
average composite usage sensitive intrastate switched access rates at any
time, but no sooner than six months from the effective date of this section
or most recent re-calculation. The commission shall initiate re-calculation
if it concludes that the petition has provided just cause for re-calculation.
(C)
As provided in subsection
(g)
[
(f)
[
(1)
A COA/SPCOA holder seeking approval of originating and/or
terminating usage sensitive intrastate switched access rates that in the aggregate,
including any rate elements not charged by the CCN holder, are higher than
the aggregate of the originating and/or terminating usage sensitive switched
access rate elements charged by the CCN holder in the COA/SPCOA's territory
may do so by filing an application with the commission subject to the procedures
outlined in Procedural Rule §22.33 of this title (relating to Tariff
Filings). The COA/SPCOA's application must provide, at a minimum, the following
information:
(A)
Cost justification for each rate element.
(B)
Rationale for implementation of the higher rate for each
rate element.
(2)
A COA/SPCOA holder's application must address all of the
applicable switched access rate elements in subsection (b) of this section.
(3)
The commission shall publish notice of the application
in the
Texas Register
.
(g)
[
(1)
Within 30 days from the effective date of this section,
all CCN holders must provide the following intrastate data to the commission
as a compliance filing:
(A)
The current tariffed rate for originating and terminating
CCL.
(B)
The current tariffed rate for originating and terminating
LS.
(C)
The current tariffed rate for originating and terminating
TR.
(D)
The current tariffed rate for originating and terminating
TS.
(E)
The current average per minute rate for originating and
terminating TST.
(F)
The current originating and terminating tariffed rate(s)
for any other usage sensitive intrastate switched access rate element(s).
(G)
The total actual originating and terminating MOUs for
the most recent 12 month period for each rate element in subparagraphs (A)
- (F) of this paragraph.
(2)
Biennially all CCN holders must provide the following
intrastate data to the commission as a compliance filing by June 1 of the
year:
(A)
The current tariffed rate for originating and terminating
CCL.
(B)
The current tariffed rate for originating and terminating
LS.
(C)
The current tariffed rate for originating and terminating
TR.
(D)
The current tariffed rate for originating and terminating
TS.
(E)
The current average per minute rate for originating and
terminating TST.
(F)
The current originating and terminating tariffed rate(s)
for any other usage sensitive intrastate switched access rate element(s).
(G)
The total actual originating and terminating MOUs for
the most recent 12 month period for each rate element in subparagraphs (A)
- (F) of this paragraph.
(h)
[
(1)
Within 90 days of the effective date of this section,
each COA/SPCOA holder shall either:
(A)
file an application under subsection
(f)
[
(B)
file compliance tariffs/price lists effective 125 days
from the effective date of this section containing originating and terminating
usage sensitive intrastate switched access rates that do not exceed the prevailing
rates charged by the CCN holder in each territory in which the COA/SPCOA holder
operates;
(C)
file compliance tariffs/price sheets with originating
and terminating usage sensitive intrastate switched access rates that do not
exceed the weighted statewide average composite usage sensitive switched access
rates established by the commission effective 125 days from the effective
date of this section; or
(D)
file a letter with the commission demonstrating that no
rate revisions are necessary in order to comply with this section.
(2)
If the commission subsequently recalculates the weighted
statewide average composite usage sensitive switched access rates, no later
than 30 days after the commission recalculates the weighted statewide average
composite usage sensitive switched access rates, COA/SPCOA holders shall either:
(A)
file an application under subsection
(f)
[
(B)
file compliance tariffs/price lists effective 45 days
from the filing date of the compliance tariffs/price lists containing originating
and terminating usage sensitive intrastate switched access rates that do not
exceed the prevailing rates charged by the CCN holder in each territory in
which the COA/SPCOA holder operates;
(C)
file compliance tariffs/price sheets with originating
and terminating usage sensitive intrastate switched access rates that do not
exceed the recalculated weighted statewide average composite usage sensitive
switched access rates established by the commission effective 45 days from
the filing date of the compliance tariffs/price sheets; or
(D)
file a letter with the commission demonstrating that no
rate revisions are necessary in order to comply with this section.
(3)
If a COA/SPCOA holder establishes usage sensitive intrastate
switched access rates pursuant to paragraphs (1)(B) or (2)(B) of this subsection
and the underlying CCN holder(s) whose rates were the basis for the COA/SPCOA
holder's usage sensitive intrastate switched access rates are modified, no
later than 30 days after said CCN holder's rates are modified, the COA/SPCOA
holder shall either:
(A)
file an application under subsection
(f)
[
(B)
file compliance tariffs/price lists effective 45 days
from the filing date of the compliance tariffs/price lists containing originating
and terminating usage sensitive intrastate switched access rates that do not
exceed the prevailing rates charged by the CCN holder in each territory in
which the COA/SPCOA holder operates;
(C)
file compliance tariffs/price sheets with originating
and terminating usage sensitive intrastate switched access rates that do not
exceed the most recent commission established weighted statewide average composite
usage sensitive switched access rates established by the commission effective
45 days from the filing date of the compliance tariffs/price sheets; or
(D)
file a letter with the commission demonstrating that no
rate revisions are necessary in order to comply with this section.
(i)
[
§26.224.Requirements Applicable to Basic Network Services for Chapter 58 Electing Companies.
(a) - (b)
(No change.)
(c)
Basic network services.
(1)
Services included in basic network services. Unless reclassified
pursuant to PURA §58.024, the following are classified as basic network
services pursuant to PURA §58.051(a):
(A) - (J)
(No change.)
(K)
Residential caller identification services if the
customer to whom the service is billed is at least 65 years of age
[
(2) - (5)
(No change.)
(6)
At the election of the affected incumbent
local exchange company, the price for basic network service shall also include
the fees and charges for any mandatory extended area service arrangements,
mandatory expanded toll-free calling plans, and any other service included
in the definition of basic network service.
(7)
A nonpermanent expanded toll-free local
calling service surcharge established by the commission to recover the costs
of mandatory expanded toll-free local calling service:
(A)
is considered a part of basic network service;
(B)
may not be aggregated under subsection (c)(6) of this section;
and
(C)
continues to be transitioned in accordance with commission
orders and substantive rules.
(d) - (l)
(No change.)
§26.225.Requirements Applicable to Nonbasic Services For Chapter 58 Electing Companies.
(a) - (b)
(No change.)
(c)
Nonbasic services.
(1)
Consistent with PURA §58.151 and §58.024, these
services are nonbasic services:
(A) - (E)
(No change.)
(F)
call forwarding, call return, caller identification, call
waiting and other custom calling services and call control options, except
that residential call waiting is a basic network service
until July 1,
2006
;
(G) - (S)
(No change.)
(2)
(No change.)
(d)
Substantive requirements. An electing company that seeks
to introduce or modify rates, terms or conditions of a nonbasic service tariff
shall follow the substantive requirements in this section and the procedural
requirements in §26.227 of this title. Additionally, an electing company
that seeks to flexibly price a nonbasic service shall follow the requirements
in §26.226 of this title.
(1)
Pricing standards. The price of a nonbasic service may
not be preferential, prejudicial, discriminatory, predatory, or anticompetitive.
(A)
Price ceilings. This subparagraph specifies the price
ceilings for certain nonbasic services. Except as specified in this subparagraph,
nonbasic services have no price ceiling.
(i) - (ii)
(No change.)
(iii)
An electing company shall provide to a residential customer
the first three local directory assistance inquiries in a monthly billing
cycle at a maximum price of zero dollars ($.00)
until July 1, 2006
.
(iv)
(No change.)
(B)
(No change.)
(2)
(No change.)
(e)
(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 May 11, 2006.
TRD-200602644
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: June 25, 2006
For further information, please call: (512) 936-7223
16 TAC §§26.401, 26.404, 26.406, 26.408, 26.423
These amendments are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2005) (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, §§52.155(a) and (c), 56.021,
56.025(a), 56.026(e), 58.051, 58.151, and Chapter 65, which provide the authority
for the various rule changes made herein.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
52.155(a) and (c), 56.021, 56.025(a), 56.026(e), 58.051, 58.151, and Chapter
65.
§26.401.Texas Universal Service Fund (TUSF).
(a)
(No change.)
(b)
Programs included in the TUSF.
(1) - (12)
(No change.)
(13)
Section 26.422 of this title (relating to Subsequent
Petitions for Service to Uncertificated Areas); [
(14)
Section 26.423 of this title (relating to High Cost Universal
Service Plan for Uncertificated Areas where an Eligible Telecommunications
Provider (ETP) Volunteers to Provide Basic Local Telecommunications Service)
; and
[
(15)
Section 26.424 of this title (relating
to Audio Newspaper Program).
§26.404.Small and Rural Incumbent Local Exchange Company (ILEC) Universal Service Plan.
(a) - (d)
(No change.)
(e)
Small and Rural ILEC Universal Service Plan monthly per-line
support. A monthly per-line amount of support for each small or rural ILEC
study area shall be determined in a one-time calculation using data from such
small or rural ILEC's test year that has been audited by an independent auditor
in conformance with generally accepted accounting principles (GAAP).
(1) - (2)
(No change.)
(3)
Switched Access Service Rate Reductions. To the extent
that the disbursements from the universal service fund under PURA §56.021(1)
for small and rural local exchange companies are used to decrease the implicit
support in intraLATA toll and switched access rates, the decrease shall be
made in a competitively neutral manner.
This paragraph expires August
31, 2007.
(f) - (h)
(No change.)
§26.406.Implementation of the Public Utility Regulatory Act §56.025.
(a)
(No change.)
(b)
Applicability. An incumbent local exchange company (ILEC)
serving fewer than
31,000
[
(1) - (4)
(No change.)
(c) - (e)
(No change.)
§26.408.Additional Financial Assistance (AFA).
(a)
(No change.)
(b)
Application. Any ILEC that has been designated by the
commission as an eligible telecommunications provider (ETP) and is not an
electing company under the Public Utility Regulatory Act (PURA) Chapter 58
,
[
(c) - (d)
(No change.)
§26.423.High Cost Universal Service Plan for Uncertificated Areas where an Eligible Telecommunications Provider (ETP) Volunteers to Provide Basic Local Telecommunications Service.
(a) - (d)
(No change.)
(e)
Support for uncertificated areas where an ETP volunteers
to provide service. The TUSF administrator shall disburse monthly support
payments to ETPs qualified to receive support pursuant to this section. The
amount of support available to each ETP shall be calculated using the base
support amount available as provided under paragraph (1) of this subsection
as adjusted by the requirements of paragraph (3)(B) of this subsection.
(1)
Determining base support amount available to ETPs.
(A)
The monthly per-line support available for uncertificated
areas shall be determined by calculating the average of the per-line support
amount approved for all local telephone company exchanges of CCN
holders
[
(B)
(No change.)
(2) - (3)
(No change.)
(f) - (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 May 11, 2006.
TRD-200602645
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: June 25, 2006
For further information, please call: (512) 936-7223
Subchapter J. COSTS, RATES AND TARIFFS
16 TAC §26.230
The Public Utility Commission of Texas (commission) proposes
new §26.230, relating to requirements applicable to transitioning incumbent
local exchange companies' (ILECs') one-day informational notice filings made
pursuant to Public Utility Regulatory Act (PURA) Chapter 65, Subchapter D.
Project Number 32334 has been assigned to this proceeding.
PURA Chapter 65, Subchapter D, establishes provisions and requirements
for ILECs that are transitioning to a fully competitive market. A "transitioning
company" is an ILEC for which at least one, but not all, of the company's
markets have been deregulated by the commission. Transitioning companies may
exercise pricing flexibility and introduce new services one day after providing
an informational notice to the commission pursuant to PURA §65.151, §65.152
and §65.153 and, as referenced therein, PURA §58.063 and §58.153.
Ms. Janis Ervin, Senior Policy Specialist, Infrastructure Reliability Division,
and Mr. James Tourtelott, Attorney, Legal Division, 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. Ervin and Mr. Tourtelott 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 this section will be the clarification of the substantive
requirements and procedures relating to the offering of new services and pricing
and packaging flexibility through one-day information notice filings. There
will be no adverse economic 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.
Ms. Ervin and Mr. Tourtelott 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.
The commission staff will conduct a public hearing on this rulemaking,
if requested pursuant to the Texas Government Code §2001.029, or deemed
necessary by commission staff, at the commission's offices located in the
William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701
on Wednesday, June 21, 2006 at 10:00 a.m. The request for a public hearing
must be received within 30 days after publication.
Comments on the proposed new section (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
PO Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
Reply comments may be submitted within 45 days after publication. Parties
are also requested to e-mail an electronic copy of comments to janis.ervin@puc.state.tx.us,
if possible. The commission invites specific comments regarding any 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 proposed section. All comments should refer to Project
Number 32334 and §26.230.
This new section is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2005) (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 §65.152 and §65.153 regarding
general requirements and rate requirements for one-day informational notice
filings provided by transitioning companies.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
65.152, and 65.153.
§26.230.Requirements Applicable to Chapter 65 One-day Informational Notice Filings.
(a)
Application. This section applies to incumbent local exchange
companies (ILECs), as defined in the Public Utility Regulatory Act (PURA) §51.002(3),
with markets deregulated pursuant to PURA Chapter 65 who choose to offer services
through one-day informational notice filings pursuant to PURA §§65.151
- 65.153. A transitioning company, as defined in PURA §65.002(5), which
does not choose to offer services through a one-day informational notice filing
must either offer services through ten day informational notice filings pursuant
to §§26.227-26.229 of this title or through filings pursuant to §§26.207
- 26.211 of this title.
(b)
Purpose. The purpose of this section is to establish the
requirements for a transitioning ILEC to introduce new services, and/or to
exercise pricing flexibility for basic and non-basic retail telecommunications
services, and to outline the procedures for processing complaints regarding
service offerings introduced by such informational notice filings.
(c)
Pricing standards.
(1)
In a market that remains regulated, the transitioning ILEC
shall price its retail services in accordance with the provisions as set forth
in §§26.224 - 26.226 of this title.
(2)
In a deregulated market, the transitioning ILEC shall price
its retail services as follows:
(A)
for all services, other than basic local telecommunications
service, at a price higher than the service's long run incremental costs (LRIC);
and
(B)
for basic local telecommunications service, at any price
higher than the lesser of the service's LRIC or the tariffed price on the
date the market was deregulated, provided that the company does not increase
rates for stand-alone residential local exchange voice service as defined
in PURA §65.002(4) before the date that the commission revises monthly
per line support under the Texas High Cost Universal Service Plan pursuant
to PURA §56.031, regardless of whether the company is an electing company
under PURA Chapter 58.
(3)
In each deregulated market, a transitioning company shall
make available to all residential customers throughout that market the same
price, terms, and conditions for all basic and non-basic retail telecommunications
services, consistent with any pricing flexibility available to the company
on or before August 31, 2005.
(4)
In any market, regulated or deregulated, the transitioning
ILEC may not:
(A)
establish a retail rate, term, or condition that is anticompetitive
or unreasonably preferential, prejudicial, or discriminatory;
(B)
establish a retail rate for a basic or non-basic service
in a deregulated market that is subsidized either directly or indirectly by
a basic or non-basic service provided in an exchange that is not deregulated;
or
(C)
engage in predatory pricing or attempt to engage in predatory
pricing.
(5)
A rate that meets the pricing requirements of paragraph
(2) of this subsection is deemed compliant with paragraph (4)(B) of this subsection.
(d)
Procedures related to the filing of one-day informational
notices and associated tariffs. The provisions of this subsection apply to
ILECs choosing to introduce new services and/or exercise pricing and packaging
flexibility through one-day informational notice filings.
(1)
Notice requirements. A transitioning ILEC shall provide
the informational notice required by this section to the commission, the Office
of Public Utility Counsel (OPC), and to any person who holds a certificate
of operating authority in the transitioning ILEC's certificated area or areas,
or who has an effective interconnection agreement with the transitioning ILEC.
(2)
Filing requirements.
(A)
Filing of informational notice and confidential information.
At the time the informational notice is filed in Central Records, a copy of
the informational notice, including confidential information, shall be delivered
to OPC. Copies of confidential information shall be filed in Central Records
in accordance with §22.71(d) of this title.
(B)
Format of filing. An informational notice under this section
must include the same elements as set forth in §26.227(c)(2)(D) of this
title and the following:
(i)
For retail services offered in regulated markets, the transitioning
company must demonstrate that the rates, terms, and conditions comply with
the requirements of subsection (c)(1) of this section and affirm that the
said rates, terms and conditions comply with requirements in subsection (c)(4)
of this section.
(ii)
For retail services offered in deregulated markets, the
transitioning company must demonstrate that the rates, terms, and conditions
comply with the requirements of subsection (c)(2) of this section and affirm
that the said rates, terms and conditions comply with requirements in subsection
(c)(3) - (4) of this section.
(C)
Access to confidential information. Access to confidential
information filed with the commission as part of an informational notice filing
shall be available to commission staff and OPC, upon execution of a commission
approved protective agreement.
(D)
Effective date. A transitioning ILEC's service offering
shall be effective one-day after the transitioning ILEC files an informational
notice with the commission.
(e)
Notice of deficiencies and disputes as to sufficiency or
appropriateness of one-day informational notice filings.
(1)
The commission staff may file a notice of deficiency for
incomplete filings or non-compliant filings or a pleading alleging that the
service offering is inappropriately filed as a one-day informational notice.
(2)
Within five working days after the date of the commission
staff's filing, an applicant shall file an explanation of the actions it has
taken or intends to take in response to the notice or pleading filed under
paragraph (1) of this subsection.
(3)
Disputes as to sufficiency or appropriateness of one-day
informational notice filings shall be subject to the provisions of §26.227(d)
of this title.
(f)
Complaints. Complaints filed by an affected person, the
Office of Public Utility Counsel or commission staff regarding service offerings
introduced by one-day informational notice filings shall be subject to the
provisions of §26.227(e) 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 May 11, 2006.
TRD-200602631
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: June 25, 2006
For further information, please call: (512) 936-7223
Chapter 71.
WARRANTORS OF VEHICLE PROTECTION PRODUCTS
The Texas Department of Licensing and Regulation ("Department") proposes
amendments to existing rules at 16 Texas Administrative Code (TAC), §§71.10,
71.22, 71.70, 71.80, and 71.90, a new rule at 16 TAC, §71.20, and the
repeal of rules at 16 TAC, §71.21 and §71.25, regarding the regulation
of warrantors of vehicle protection products.
The proposed amendments, new rule, and repeal result from the Department's
review of the administrative rules at 16 TAC, Chapter 71. Pursuant to Texas
Government Code, §2001.039, the Department reviewed the rules to determine
if the rules should be repealed, readopted, or readopted with changes. The
Notice of Intent to Review was published in the December 23, 2005, issue of
the
Texas Register
and distributed to persons
internal and external to the agency. The public comment period closed on January
23, 2006, and the Department received no public comments. The Department's
review determined that the reasons for initially adopting the rules continue
to exist but that changes to the rules should be proposed through the rulemaking
process to clarify statutory and rule requirements and to bring the rules
more in line with current law and Department procedure. On February 2, 2006,
the Commission of Licensing and Regulation ("Commission") adopted the rule
review, readopting the rules in Chapter 71 without changes, but with the intent
that rule changes would be proposed based on the Department's review.
The proposal updates rule provisions in light of statutory requirements,
makes technical changes and clarifications to the rules, and reorganizes provisions
for greater clarity and readability.
In §71.10, the term "nonpublic information" is expanded to "nonpublic
personal information" because the latter is the term that is used in Texas
Occupations Code, Chapter 2306. The definition of the term is reorganized
to be more readable, and some minor clarifying language is added. Additionally,
to enhance the protection of consumer privacy, social security numbers are
added to the list of items that are considered nonpublic personal information.
Texas Occupations Code, §2306.204(f) states, "The commission shall adopt
rules governing how a warrantor shall protect nonpublic personal information
provided by a consumer to the warrantor." Pursuant to that statutory provision,
the Commission has adopted rules that generally prohibit warrantors from disclosing
nonpublic personal information. Because of the confidential nature of an individual's
social security number, the Department believes it necessary to add the protection
of this type of information to the rules.
New §71.20 incorporates registration and renewal requirements from §§71.21
and 71.25, which are proposed for repeal. The wording of subsection (a) is
expanded to make clear that a warrantor must hold a current registration.
This added language makes subsection (c) of §71.25, which prohibits a
person with an expired registration from performing work requiring registration,
unnecessary.
Section 71.22(a) is amended to require that a reimbursement insurance policy
used as financial security by a warrantor include the "Vehicle Protection
Product Warrantor Texas Endorsement" prescribed by the executive director
or equivalent language. The endorsement includes provisions that, under Texas
Occupations Code, Chapter 2306, must be stated in the policy. The rule is
necessary to ensure that the policy includes the statutorily-required language.
The added language of subsection (b) specifies that a resolution of a parent
corporation's board of directors constitutes sufficient written proof that
the parent corporation has agreed to guarantee the liabilities and obligations
of an applicant or registrant.
A new subsection (g) is added to §71.70 to clarify that a registrant
must maintain financial security. This provision makes clear that the registrant
not only must establish financial security at the time of registration but
must maintain financial security throughout its registration. Several technical
corrections are also made to the section.
In §71.80 the fee structure for registrants is reorganized by separating
the initial registration fee, which is set at the lowest fee level of $500,
from the renewal fees, which are based on the number of warranties under which
the warrantor became obligated during the preceding twelve months. The fee
for a duplicate or amended registration certificate is lowered to $25, which
is consistent with the amount the Department charges for that service in other
programs. The amount should be sufficient to cover the Department's costs
in providing the service.
Technical corrections are made to §71.90.
William H. Kuntz, Jr., Executive Director, has determined that for the
first five-year period the proposed rules are in effect, there will be no
impact to costs and no significant impact to revenues of the State as a result
of enforcing or administering the proposed rules. The reduction of the duplicate
or amended registration fee may slightly reduce fee revenue to the Department.
The Department anticipates no impact to costs or revenues of local government.
Mr. Kuntz also has determined that for each year of the first five-year
period the proposed rules are in effect, the public benefit will be greater
protection of consumer privacy by generally prohibiting a warrantor from disclosing
an individual's social security number. The public and registrants will also
benefit from rule requirements that are easier to read and understand.
Mr. Kuntz has determined that there will be no adverse economic effect
on small or micro-businesses as a result of the proposed rules. There are
no anticipated economic costs to persons who are required to comply with the
proposed rules.
Comments on the proposal may be submitted to Tamala Fletcher, Legal Assistant,
Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas
78711, or facsimile (512) 475-3032, or electronically: Tamala@license.state.tx.us.
The deadline for comments is 30 days after publication in the
Texas Register
.
(d)
] Statewide average composite
rates. The commission shall establish weighted statewide average composite
usage sensitive intrastate switched access rates within 60 days of the effective
date of this section. Weighted statewide average composite usage sensitive
intrastate switched access rates will be developed based upon the submission
of CCN holders' compliance filings pursuant to subsection
(g)
[
(f)
] of this section.
(f)
](1)(A)-(F):
(f)
] of this section. The re-calculated rates will become
effective November 1 of that year.
(f)
]
of this section, the commission may also require compliance submissions by
CCN holders for re-calculation of the weighted statewide average composite
usage sensitive intrastate switched access rates as appropriate because of
significant changes in usage sensitive intrastate switched access rates or
in response to the request of affected parties, as specified in subparagraph
(B) of this paragraph.
(e)
] Approval of higher rates.
(f)
] Requirement for CCN holders
compliance submissions.
(g)
] Requirements of COA/SPCOA
holders compliance submissions.
(e)
] of this section;
(e)
] of this section;
(e)
] of this section;
(h)
]
Texas Register
notice. Notice shall be published in the
Texas Register
at the time of a CCN holder's application with the commission
to revise its usage sensitive intrastate switched access rates or when the
commission re-calculates the weighted statewide average composite usage sensitive
intrastate switched access rates.
Residential call waiting service
].
Subchapter P. TEXAS UNIVERSAL SERVICE FUND
and
]
.
]
five million
] access lines
and each cooperative
may seek to recover funds from the Texas Universal
Service Fund (TUSF) under this section in the following circumstances:
or
] 59
or 65
, may request AFA in a PURA §§53.105,
53.151, or 53.306 proceeding.
holder's
]
and holders of a COA issued under PURA Chapter
65
that are contiguous to the uncertificated area for which reimbursement
is requested. The per line support amounts used for this calculation shall
include, as appropriate, support amounts approved for only those exchanges
directly contiguous to the uncertificated area for which support is being
requested. The resulting average support shall apply to a line at a premises
in the uncertificated area regardless of the residential or business status
of the line.
Chapter 26.
SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
Part 4.
TEXAS DEPARTMENT OF LICENSING AND REGULATION