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Statutes > Texas > Utilities-code > Title-2-public-utility-regulatory-act > Chapter-55-regulation-of-telecommunications-services

UTILITIES CODE

TITLE 2. PUBLIC UTILITY REGULATORY ACT

SUBTITLE C. TELECOMMUNICATIONS UTILITIES

CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 55.001. GENERAL STANDARD. A public utility shall furnish

service, instrumentalities, and facilities that are safe,

adequate, efficient, and reasonable.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.002. COMMISSION AUTHORITY CONCERNING STANDARDS. The

commission, on its own motion or on complaint and after

reasonable notice and hearing, may:

(1) adopt just and reasonable standards, classifications, rules,

or practices a public utility must follow in furnishing a

service;

(2) adopt adequate and reasonable standards for measuring a

condition, including quantity and quality, relating to the

furnishing of a service;

(3) adopt reasonable rules for examining, testing, and measuring

a service; and

(4) adopt or approve reasonable rules, specifications, and

standards to ensure the accuracy of equipment, including meters

and instruments, used to measure a service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.003. RULE OR STANDARD. (a) A public utility may not

impose a rule except as provided by this title.

(b) A public utility may file with the commission a standard,

classification, rule, or practice the utility follows.

(c) The standard, classification, rule, or practice continues in

force until:

(1) amended by the utility; or

(2) changed by the commission as provided by this subtitle.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.004. LOCAL EXCHANGE COMPANY RULE OR PRACTICE CHANGE.

(a) To make a change in an incumbent local exchange company's

tariffed rules or practices that does not affect the company's

charges or rates, the company must file the proposed change with

the commission at least 35 days before the effective date of the

change. The commission may require the incumbent local exchange

company to provide to ratepayers appropriate notice as determined

by the commission.

(b) The commission, on complaint by an affected person or on its

own motion and after reasonable notice, may hold a hearing to

determine the propriety of a change proposed under this section.

Pending the hearing and decision, the commission may suspend the

change for not longer than 120 days after the date the change

would otherwise be effective. The commission shall approve, deny,

or modify the change before the period of suspension expires.

(c) In a proceeding under this section, the incumbent local

exchange company has the burden of proving the proposed change:

(1) is in the public interest; and

(2) complies with this title.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.005. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING

SERVICE PROHIBITED. In providing a service to persons in a

classification, a public utility may not:

(1) grant an unreasonable preference or advantage to a person in

the classification; or

(2) subject a person in the classification to an unreasonable

prejudice or disadvantage.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.006. DISCRIMINATION AND RESTRICTION ON COMPETITION. A

public utility may not:

(1) discriminate against a person who sells or leases equipment

or performs services in competition with the public utility; or

(2) engage in a practice that tends to restrict or impair that

competition.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.007. MINIMUM SERVICES. (a) The commission shall

require a holder of a certificate of convenience and necessity or

a certificate of operating authority to provide at the applicable

tariff rate, if any, to each customer, regardless of race,

national origin, income, or residence in an urban or rural area:

(1) single-party service;

(2) tone-dialing service;

(3) basic custom calling features;

(4) equal access for an interLATA interexchange carrier on a

bona fide request; and

(5) digital switching capability in an exchange on customer

request, provided by a digital switch in the exchange or by

connection to a digital switch in another exchange.

(b) Notwithstanding Subsection (a), an electing incumbent local

exchange company serving more than 175,000 but fewer than

1,500,000 access lines on January 1, 1995, shall install a

digital switch in each central office that serves an exchange of

fewer than 20,000 access lines.

(c) The commission may temporarily waive a requirement imposed

by Subsection (a) or (b) on a showing of good cause.

(d) The commission may not consider the cost of implementing

this section in determining whether an electing company is

entitled to:

(1) a rate increase under Chapter 58 or 59; or

(2) increased universal service funds under Subchapter B,

Chapter 56.

(e) Expired.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.008. IMPROVEMENTS IN SERVICE; INTERCONNECTING SERVICE.

The commission, after notice and hearing, may:

(1) order a public utility to provide specified improvements in

its service in a specified area if:

(A) service in the area is inadequate or substantially inferior

to service in a comparable area; and

(B) requiring the company to provide the improved service is

reasonable; or

(2) order two or more utilities to establish specified

facilities for interconnecting service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.009. INTRALATA CALLS. (a) If federal law prohibits a

local exchange company in this state from providing interLATA

telecommunications services, the local exchange companies in this

state designated or de facto authorized to receive a "0-plus" or

"1-plus" dialed intraLATA call are exclusively designated or

authorized to receive such a call.

(b) A telecommunications utility operating under a certificate

of operating authority or a service provider certificate of

operating authority is de facto authorized to receive a "0-plus"

or "1-plus" dialed intraLATA call on the date the utility

receives its certificate, to the extent the utility is not

restricted by Section 54.159.

(c) If federal law allows all local exchange companies to

provide interLATA telecommunications services, the commission

shall ensure that:

(1) a customer may designate a provider of the customer's choice

to carry the customer's "0-plus" and "1-plus" dialed intraLATA

calls; and

(2) equal access in the public network is implemented to allow

the provider to carry those calls.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.010. BILLING FOR SERVICE TO THE STATE. A

telecommunications utility providing service to the state,

including service to an agency in any branch of state government,

may not impose a fee, a penalty, interest, or any other charge

for delinquent payment of a bill for that service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.011. NOTICE OF IDENTITY OF INTEREXCHANGE CARRIER. (a)

A local exchange company shall print on the first page of each

bill sent to a customer of the local exchange company the name of

the customer's primary interexchange carrier if the company

provides billing services for that carrier.

(b) The bill must contain instructions on how the customer can

contact the commission if the customer believes that the named

carrier is not the customer's primary interexchange carrier.

(c) The commission may, for good cause, waive the billing

requirement prescribed by this section in exchanges served by

local exchange companies serving not more than 31,000 access

lines.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.04(b), eff. Sept.

1, 1999.

Sec. 55.012. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL

TELECOMMUNICATIONS SERVICE. (a) A provider of basic local

telecommunications service may not discontinue that service

because of nonpayment by a residential customer of charges for

long distance service. Payment shall first be allocated to basic

local telecommunications service.

(b) For purposes of allocating payment in this section, if the

provider of basic local telecommunications service bundles its

basic local telecommunications service with long distance service

or any other service and provides a discount for the basic local

telecommunications service because of that bundling, the rate of

basic local telecommunications service shall be the rate the

provider charges for stand-alone basic local telecommunications

service.

(c) Notwithstanding Subsection (a), the commission shall adopt

and implement rules, not later than January 1, 2000, to prevent

customer abuse of the protections afforded by this section. The

rules must include:

(1) provisions requiring a provider of basic local

telecommunications service to offer and implement, at the request

and expense of a long distance service provider, toll blocking

capability to limit a customer's ability to incur additional

charges for long distance services after nonpayment for long

distance services; and

(2) provisions regarding fraudulent activity in response to

which a provider may discontinue a residential customer's basic

local telecommunications service.

(d) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to establish a maximum

price that an incumbent local exchange company may charge a long

distance service provider to initiate the toll blocking

capability required to be offered under the rules adopted under

Subsection (c). The maximum price established under this

subsection shall be observed by all providers of basic local

telecommunications service in the incumbent local exchange

company's certificated service area. Notwithstanding Sections

52.102 and 52.152, the commission has all jurisdiction necessary

to enforce this section.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 5, eff. Aug. 30,

1999.

Sec. 55.013. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL

TELECOMMUNICATIONS SERVICE. (a) A provider of basic local

telecommunications service may not discontinue that service

because of nonpayment by a residential customer of charges for

long distance service. Payment shall first be allocated to basic

local telecommunications service.

(b) For purposes of allocating payment in this section, if the

provider of basic local telecommunications service bundles its

basic local telecommunications service with long distance service

or any other service and provides a discount for the basic local

telecommunications service because of that bundling, the rate of

basic local telecommunications service shall be the rate the

provider charges for stand-alone basic local telecommunications

service.

(c) Notwithstanding Subsection (a), the commission shall adopt

and implement rules, not later than January 1, 2000, to prevent

customer abuse of the protections afforded by this section. The

rules must include:

(1) provisions requiring a provider of basic local

telecommunications service to offer and implement toll blocking

capability to limit a customer's ability to incur additional

charges for long distance services after nonpayment for long

distance services; and

(2) provisions regarding fraudulent activity in response to

which a provider may discontinue a residential customer's basic

local telecommunications service.

(d) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to establish a maximum

price that an incumbent local exchange company may charge a long

distance service provider to initiate the toll blocking

capability required to be offered under the rules adopted under

Subsection (c). The maximum price established under this

subsection shall be observed by all providers of basic local

telecommunications service in the incumbent local exchange

company's certificated service area. Notwithstanding Sections

52.102 and 52.152, the commission has all jurisdiction necessary

to enforce this section.

(e) A provider of basic local exchange telecommunications

service shall comply with the requirements of this section not

later than March 1, 2000.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 19, eff. Sept. 1,

1999.

Sec. 55.014. PROVISION OF ADVANCED TELECOMMUNICATIONS SERVICES.

(a) In this section, "advanced service" means any

telecommunications service other than residential or business

basic local exchange telephone service, caller identification

service, and customer calling features.

(b) This section applies to a company electing under Chapter 58

or a company that holds a certificate of operating authority or

service provider certificate of operating authority.

(c) Notwithstanding any other provision of this title, beginning

September 1, 2001, a company to which this section applies that

provides advanced telecommunications services within the

company's urban service areas, shall, on a bona fide retail

request for those services, provide in rural areas of this state

served by the company advanced telecommunications services that

are reasonably comparable to the advanced services provided in

urban areas. The company shall offer the advanced

telecommunications services:

(1) at prices, terms, and conditions that are reasonably

comparable to the prices, terms, and conditions for similar

advanced services provided by the company in urban areas; and

(2) within 15 months after the bona fide request for those

advanced services.

(d) Notwithstanding any other provision of this title, a company

to which this section applies shall, on a bona fide retail

request for those services, offer caller identification service

and custom calling features in rural areas served by the company.

The company shall offer the services:

(1) at prices, terms, and conditions reasonably comparable to

the company's prices, terms, and conditions for similar services

in urban areas; and

(2) within 15 months after the bona fide request for those

services.

(e) This section may not be construed to require a company to:

(1) begin providing services in a rural area in which the

company does not provide local exchange telephone service; or

(2) provide a service in a rural area of this state unless the

company provides the service in urban areas of this state.

(f) For purposes of this section, a company to which this

section applies is considered to provide services in urban areas

of this state if the company provides services in a municipality

with a population of more than 190,000.

(g) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to enforce this

section.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 20, eff. Sept. 1,

1999.

Sec. 55.015. LIFELINE SERVICE. (a) The commission shall adopt

rules prohibiting a certificated provider of local exchange

telephone service from discontinuing basic network services

listed in Section 58.051 to a consumer who receives lifeline

service because of nonpayment by the consumer of charges for

other services billed by the provider, including interexchange

telecommunications service.

(b) The commission shall adopt rules providing for automatic

enrollment to receive lifeline service for eligible consumers.

The Texas Department of Human Services, on request of the

commission, shall assist in the adoption and implementation of

those rules. The commission and the Texas Department of Human

Services shall enter into a memorandum of understanding

establishing the respective duties of the commission and

department in relation to the automatic enrollment.

(b-1) The commission shall adopt rules requiring certificated

providers of local exchange telephone service to implement

procedures to ensure that all consumers are clearly informed both

orally and in writing of the existence of the lifeline service

program when they request or initiate service or change service

locations or providers. On or before June 1, 2006, the

commission shall enter into a memorandum of understanding with

the Health and Human Services Commission, and, to the maximum

extent feasible, housing authorities in the principal cities of

each metropolitan statistical area, to improve enrollment rates

in the lifeline service program.

(c) A certificated provider of local exchange telephone service

may block a lifeline service participant's access to all

interexchange telecommunications service except toll-free numbers

when the participant owes an outstanding amount for that service.

The provider shall remove the block without additional cost to

the participant on payment of the outstanding amount.

(d) A certificated provider of local exchange telephone service

shall offer a consumer who applies for or receives lifeline

service the option of blocking all toll calls or, if technically

capable, placing a limit on the amount of toll calls. The

provider may not charge the consumer an administrative charge or

other additional amount for the blocking service.

(d-1) A certificated provider of local exchange telephone

service shall provide access to lifeline service to a customer

whose income is not more than 150 percent of the applicable

income level established by the federal poverty guidelines or in

whose household resides a person who receives or has a child who

receives:

(1) Medicaid;

(2) food stamps;

(3) Supplemental Security Income;

(4) federal public housing assistance;

(5) Low Income Home Energy Assistance Program (LIHEAP)

assistance; or

(6) health benefits coverage under the state child health plan

under Chapter 62, Health and Safety Code.

(d-2) A certificated provider of local exchange telephone

service shall provide consumers who apply for or receive lifeline

service access to available vertical services or custom calling

features, including caller ID, call waiting, and call blocking,

at the same price as other consumers. Lifeline discounts shall

only apply to that portion of the bill that is for basic network

service.

(e) In this section, "lifeline service" means a retail local

service offering described by 47 C.F.R. Section 54.401(a), as

amended.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 21, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 9, eff. September 7, 2005.

Sec. 55.016. TELECOMMUNICATIONS BILLING. (a) The proliferation

of charges for separate services, products, surcharges, fees, and

taxes on a bill for telecommunications products or services has

increased the complexity of those bills to such an extent that in

some cases the bills have become difficult for customers to

understand.

(b) A bill from a local exchange company for telecommunications

products or services should be consistent with providing

customers sufficient information about the charges included in

the bill to understand the basis and source of the charges.

(c) To the extent permitted by law, a monthly bill from a local

exchange company for local exchange telephone service shall

clearly identify all charges including basic local service

charges, fees, carrier's charges, assessments, surcharges,

optional services, and taxes.

(d) Local exchange carriers shall annually file a copy of that

portion of their bill that has not been previously approved by

the commission for compliance review with this section.

(e) The commission shall have all necessary authority to enforce

this section.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 18, eff. Mar. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 963, Sec. 1, eff. June

14, 2001. Renumbered from Sec. 55.012 by Acts 2001, 77th Leg.,

ch. 1420, Sec. 21.001(110), eff. Sept. 1, 2001.

Sec. 55.017. IDENTIFICATION REQUIRED. (a) A representative of

a telecommunications provider or a video or cable service

provider that has an easement in or a right-of-way over or

through real property must show proof of identification to the

owner of the real property when entering the property if

requested by the owner.

(b) This section does not apply to regularly scheduled service

readings or examinations.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 10, eff. September 7, 2005.

SUBCHAPTER B. EXTENDED AREA SERVICE

Sec. 55.021. EXTENDED AREA SERVICE. After notice and a hearing,

the commission may order one or more local exchange companies

that are dominant carriers to provide:

(1) mandatory extended area service in accordance with Section

55.022; or

(2) optional extended area service in accordance with Section

55.023.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.022. MANDATORY SERVICE. The commission may order

mandatory extended area service in a specified metropolitan area

if:

(1) there is a sufficient community of interest in the area; and

(2) the company can reasonably provide the service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.023. OPTIONAL EXTENDED AREA SERVICE. (a) The

commission may order optional extended area service in a

specified calling area if:

(1) each affected company and the representatives of at least

one political subdivision in the proposed calling area agree to

the service; and

(2) the proposed common calling area has a single, continuous

boundary.

(b) The commission may not adopt rules that diminish in any

manner the ability of an affected company or a political

subdivision to enter into joint agreements for optional extended

area service under this section.

(c) In this section, "political subdivision" means:

(1) a county;

(2) a municipality; or

(3) an unincorporated town or village that has 275 or more

access lines.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.024. CHARGE FOR EXTENDED AREA SERVICE. (a) An

incumbent local exchange company that provides mandatory two-way

extended area service to customers shall impose for that service

a separately stated monthly charge of $3.50 a line for a

residential customer and $7 a line for a business customer if, on

September 1, 1995, the company:

(1) served more than 1,000,000 access lines in this state; and

(2) imposed a separately stated monthly charge for mandatory

two-way extended area service of more than $3.50 a line for a

residential customer and more than $7 a line for a business

customer.

(b) The company shall recover all costs incurred and all loss of

revenue that results from imposition of the rates prescribed by

Subsection (a) in the manner prescribed by Section 55.048(c).

(c) The rate limitation prescribed by Subsection (a) does not

apply to a separately stated monthly charge for:

(1) extended area service in or into a metropolitan exchange; or

(2) extended metropolitan service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.025. HUNTING SERVICE. (a) A local exchange company

shall make available, at a reasonable tariffed rate, hunting

service from local exchange lines to extended metropolitan

service lines.

(b) The company may not require a customer to purchase

additional extended metropolitan service to obtain the hunting

service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER C. EXPANDED TOLL-FREE LOCAL CALLING AREAS

Sec. 55.041. DEFINITIONS. In this subchapter, "metropolitan

exchange," "local calling area of a metropolitan exchange," and

"exchange" have the meanings and boundaries assigned by the

commission on September 1, 1993.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.042. CONTIGUOUS EXCHANGE. The commission may expand a

toll-free local calling area into an exchange that is not in a

metropolitan exchange but is in a local calling area that is

contiguous to a metropolitan exchange that the commission

determines has a community of interest with the exchange for

which a petition is filed under this subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.043. SPLITTING EXCHANGES PROHIBITED. Notwithstanding

any other provision of this subchapter, the commission may not

split a petitioning or requested exchange in establishing a

toll-free local calling area.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.044. EXEMPTION. (a) The commission may not require an

incumbent local exchange company serving the petitioning or

requested exchange to expand the company's toll-free local

calling area under this subchapter if:

(1) the incumbent local exchange company has fewer than 10,000

access lines;

(2) the petitioning or requested exchange is served by a

telephone cooperative corporation;

(3) extended area service or extended metropolitan service is

available between the exchanges;

(4) the petitioning or requested exchange is a metropolitan

exchange; or

(5) the commission determines that the company has shown that to

serve the area is not geographically or technologically feasible.

(b) To promote the wide dispersion of pay telephones, the

commission may:

(1) exempt pay telephones from this subchapter; or

(2) change the rates charged for calls from pay telephones.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.045. ELIGIBILITY TO PETITION. The telephone subscribers

of an incumbent local exchange company exchange that serves not

more than 10,000 access lines may petition the commission for

expansion of the company's toll-free local calling area if:

(1) the petitioning exchange's central switching office is

located within 22 miles, using vertical and horizontal geographic

coordinates, of the central switching office of the exchange

requested for expanded local calling service; or

(2) the petitioning exchange's central office is not more than

50 miles from the central office of the exchange requested for

expanded local calling service and the exchanges share a

community of interest.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.046. PETITION REQUIREMENTS. (a) A petition under this

subchapter must be signed by a number of the exchange's

subscribers equal at least to the lesser of 100 of the exchange's

subscribers or five percent of the exchange's subscribers.

(b) An exchange that petitions under Section 55.045(2) must

demonstrate in the petition that the exchange shares a community

of interest with the requested exchange.

(c) For purposes of this section, the relationships between

exchanges that create a community of interest include:

(1) a relationship because of schools, hospitals, local

governments, or business centers; or

(2) other relationships that would make the unavailability of

expanded local calling service a hardship for the residents of

the area.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.047. BALLOTING AND CONSIDERATION. (a) If the

commission receives a petition that complies with this

subchapter, the commission shall order the incumbent local

exchange company to provide ballots to the subscribers in the

petitioning exchange.

(b) The commission shall consider the request for expansion of

the toll-free local calling area if at least 70 percent of the

subscribers who vote do so in favor of the expansion.

(c) The commission by rule shall provide for an expedited

hearing on the issue of expansion.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.048. CHARGES. (a) The incumbent local exchange company

shall recover all costs incurred and all loss of revenue from an

expansion of a toll-free local calling area under this subchapter

through a request other than a revenue requirement showing by

imposing a monthly fee under Subsection (b) or (c), or both.

(b) The company may impose a monthly fee against each

residential and business customer in the petitioning exchange.

The fee may not exceed $3.50 a line for a residential customer

and $7 a line for a business customer unless the customer's

toll-free local calling area includes more than five exchanges.

The company may impose an additional monthly fee of $1.50 for

each exchange in excess of five. This subsection applies

regardless of the number of petitions required to obtain access

to the exchanges. A company may impose a fee under this

subsection only until the company's next general rate case.

(c) The company may impose a monthly fee against each of the

company's local exchange service customers in this state. This

fee is in addition to the company's local exchange rates.

(d) The company may not recover regulatory case expenses under

this subchapter by imposing a surcharge on the subscribers of the

petitioning exchange.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER D. OPERATOR SERVICE PROVIDERS

Sec. 55.081. DEFINITION. In this subchapter, "operator service"

means a service using live operator or automated operator

functions to handle telephone service such as toll calling using

collect, third-number billing, and calling card services. The

term does not include a call for which the called party has

arranged to be billed (800 service).

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.082. APPLICABILITY. Except as provided by Section

55.088, this subchapter applies only to a telecommunications

utility that is not a dominant carrier.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.083. RULES AND PROCEDURES. (a) The commission may

adopt rules and establish procedures to enforce and implement

this subchapter.

(b) A rule adopted under this subchapter must be

nondiscriminatory and designed to promote competition that

facilitates consumer choice.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.084. INFORMATION DISPLAYED ON PUBLIC USE TELEPHONE. (a)

An operator service provider shall furnish each entity with

which it contracts to provide operator service a sticker, card,

or other form of information approved by the commission for each

telephone that:

(1) has access to the service; and

(2) is intended for use by the public.

(b) The commission may grant the owner of a telephone approval

for an alternative form of information.

(c) The information must state:

(1) the provider's name;

(2) that the operator service provider will provide rate

information on a caller's request;

(3) that a caller, on the caller's request, will be informed of

the method of access to the local exchange carrier operator; and

(4) that a complaint about the service may be made to the

provider or to the commission at the designated telephone number.

(d) The operator service provider shall by contract require an

entity receiving information to display the information on or

near each telephone for which the operator service provider is

required to furnish the information.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.085. CONNECTION ANNOUNCEMENT. Before connecting a call,

the operator service provider shall:

(1) announce the provider's name; and

(2) at the caller's request, quote the rate and any other fee or

surcharge that applies to the call and is charged by the

provider.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.086. INFORMATION REQUIRED ON ACCESS TO LOCAL EXCHANGE

COMPANY OPERATOR. (a) An operator service provider, on a

caller's request, shall inform the caller of the method of access

to the local exchange carrier operator serving the exchange from

which the call is made.

(b) A charge may not be made for information provided under this

section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.087. ACCESS TO LOCAL EXCHANGE COMPANY AND OTHER

UTILITIES REQUIRED. (a) The commission by rule shall require an

operator service provider to include in its contract with each

entity through which it provides operator service a provision

that requires each telephone subscribed to its service to allow

access to:

(1) the local exchange carrier operator serving the exchange

from which the call is made; and

(2) other telecommunications utilities.

(b) To prevent fraudulent use of its service, an operator

service provider or an entity through which it provides operator

service may block the access described by Subsection (a) by

obtaining a waiver for this purpose from the commission or the

Federal Communications Commission. The commission by rule shall

establish the procedure and criteria for obtaining a waiver from

the commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.088. ACCESS TO LIVE OPERATOR REQUIRED. (a) A dominant

or nondominant telecommunications utility that provides operator

service shall ensure that a caller has access to a live operator

at the beginning of a live or mechanized operator-assisted call

through a method designed to be easily and clearly understandable

and accessible to the caller.

(b) A telecommunications utility described by Subsection (a)

shall submit to the commission for review the method by which the

utility will provide access to a live operator.

(c) This section applies regardless of the method by which the

telecommunications utility provides operator service.

(d) This section does not apply to a telephone located in a

prison or jail facility.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.089. COMMISSION MAY INVESTIGATE AND ACT ON VIOLATION.

(a) If the commission determines that an operator service

provider has violated or is about to violate this subchapter, the

commission, after notice and evidentiary hearing, may take action

to stop, correct, or prevent the violation.

(b) The commission may investigate a complaint that it receives

concerning an operator service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER E. CALLER IDENTIFICATION SERVICE

Sec. 55.101. DEFINITIONS. In this subchapter:

(1) "Caller identification information" means any information

that may be used to identify the specific originating number or

originating location of a wire or electronic communication

transmitted by a telephone, including the telephone listing

number or the name of the customer from whose telephone a

telephone number is dialed.

(2) "Caller identification service" means a service that

provides caller identification information to a device that can

display the information.

(3) "Per-call blocking" means a telecommunications service that

prevents caller identification information from being transmitted

to a called party on an individual call when the calling party

affirmatively acts to prevent the transmission.

(4) "Per-line blocking" means a telecommunications service that

prevents caller identification information from being transmitted

to a called party on each call unless the calling party

affirmatively acts to permit the transmission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.102. APPLICABILITY. (a) This subchapter applies only

to the provision of caller identification service.

(b) This subchapter does not apply to:

(1) an identification service that is used in a limited system,

including a central office based PBX-type system;

(2) information that is used on a public agency's emergency

telephone line or on a line that receives the primary emergency

telephone number (911);

(3) information exchanged between telecommunications utilities,

enhanced service providers, or other entities that is necessary

for the setting up, processing, transmission, or billing of

telecommunications or related services;

(4) information provided in compliance with applicable law or

legal process; or

(5) an identification service provided in connection with a 700,

800, or 900 access code telecommunications service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.103. PROVISION OF SERVICE. (a) A telecommunications

utility may offer caller identification services under this

subchapter only if the utility obtains written authorization from

the commission.

(b) A commercial mobile service provider may offer caller

identification services in accordance with Sections 55.104,

55.105, 55.106, 55.1065, and 55.107.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(a), eff.

Sept. 1, 1999.

Sec. 55.104. USE OF INFORMATION. (a) A person may not use a

caller identification service to compile and sell specific local

call information without the affirmative approval of the

originating telephone customer.

(b) This section does not prohibit a provider of caller

identification service from:

(1) verifying network performance or testing the caller

identification service;

(2) compiling, using, and disclosing aggregate caller

identification information; or

(3) complying with applicable law or legal process.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.105. PER-CALL BLOCKING. Except as provided by Section

55.1065, the commission shall require that a provider of caller

identification service offer free per-call blocking to each

telephone subscriber in the specific area in which the service is

offered.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(b), eff.

Sept. 1, 1999.

Sec. 55.106. PER-LINE BLOCKING. (a) Except as provided by

Section 55.1065, the commission shall require that a provider of

caller identification service offer free per-line blocking to a

particular customer if the commission receives from the customer

written certification that the customer has a compelling need for

per-line blocking.

(b) A provider who is ordered to offer per-line blocking under

this section shall notify the customer by mail of the date the

blocking will begin.

(c) If a customer removes and later reinstates the per-line

block, the provider may assess a service order charge in an

amount approved by the commission for the provider's

administrative expenses relating to the reinstatement.

(d) The commission may impose a fee or assessment on a provider

in an amount sufficient to cover the additional expenses the

commission incurs in implementing the customer certification

provisions of this section.

(e) Information received under this section by the commission or

by a provider is confidential and may be used only to administer

this section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(c), eff.

Sept. 1, 1999.

Sec. 55.107. LIMITATION ON COMMISSION AUTHORITY. The commission

may prescribe in relation to blocking only a requirement

authorized by Sections 55.105, 55.106, and 55.1065.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(e), eff.

Sept. 1, 1999.

Sec. 55.109. IMPLEMENTATION OF PANEL RECOMMENDATIONS. The

commission may implement the recommendations of the Caller ID

Consumer Education Panel and interested parties to the extent

consistent with the public interest.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.110. REPORT OF BLOCKING FAILURE. (a) A provider of

caller ID services who becomes aware of the failure of per-call

or per-line blocking to block identification of a customer shall

report that failure to the commission, the Caller ID Consumer

Education Panel, and the customer whose identification was not

blocked.

(b) The provider shall make a reasonable effort to notify the

customer within 24 hours after the provider becomes aware of the

failure. The provider is not required to notify the customer if

the customer reported the failure.

(c) In this section, "caller ID service" means a service that

permits the called party to determine the identity, telephone

number, or address of the calling party. The term does not

include 911 services.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER F. AUTOMATIC DIAL ANNOUNCING DEVICES

Sec. 55.121. DEFINITION. In this subchapter, "automated dial

announcing device" means automated equipment used for telephone

solicitation or collection that can:

(1) store telephone numbers to be called or produce numbers to

be called through use of a random or sequential number generator;

and

(2) convey, alone or in conjunction with other equipment, a

prerecorded or synthesized voice message to the number called

without the use of a live operator.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.122. EXEMPTIONS. This subchapter does not apply to the

use of an automated dial announcing device:

(1) to make a call relating to an emergency or a public service

under a program developed or approved by the emergency management

coordinator of the county in which the call is received; or

(2) by a public or private primary or secondary school system to

locate or account for a truant student.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.123. NOTICE OF USE OF DEVICE TO TELECOMMUNICATIONS

UTILITY. A person may not use an automated dial announcing

device to make a telephone call in which the device plays a

recorded message when the connection is completed unless the

person gives to each telecommunications utility over whose system

the device is to be used written notice specifying the type of

device to be used.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.124. RANDOM OR SEQUENTIAL NUMBER CALLING. A person may

not use an automated dial announcing device for random number

dialing or to dial numbers determined by successively increasing

or decreasing integers if the person uses the device to make a

telephone call in which the device plays a recorded message when

the connection is completed.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.125. HOURS WHEN USE PROHIBITED. (a) A person may not

use an automated dial announcing device to make a telephone

solicitation call terminating in this state in which the device

plays a recorded message when the connection is completed if the

call is made:

(1) before noon or after 9 p.m. on a Sunday; or

(2) before 9 a.m. or after 9 p.m. on a weekday or a Saturday.

(b) A person may not use an automated dial announcing device to

make a telephone collection call terminating in this state in

which the device plays a recorded message when the connection is

completed if the call is made at an hour at which collection

calls are prohibited under the federal Fair Debt Collection

Practices Act (15 U.S.C. Section 1692 et seq.).

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.126. DEVICE DISCONNECTION. A person may not use an

automated dial announcing device to make a telephone call in

which the device plays a recorded message when the connection is

completed unless the device disconnects from the called person's

line not later than five seconds after the call is terminated by

either party. If the device cannot disconnect during that period,

a live operator must introduce the call and receive the called

person's oral consent before beginning a prerecorded or

synthesized voice message.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 667, Sec. 2, eff. Sept. 1,

1999.

Sec. 55.127. CONTENTS OF RECORDED MESSAGE. (a) A person may

not use an automated dial announcing device to make a telephone

call in which the device plays a recorded message when the

connection is completed unless the recorded message states during

the first 30 seconds of the call:

(1) the nature of the call;

(2) the identity of the person, company, or organization making

the call; and

(3) the telephone number from which the call is made.

(b) In addition to the requirements prescribed by Subsection

(a), a call during which a cross-promotion or reference to a

pay-per-call information service is made must include a statement

of:

(1) the fact that a caller who makes a call to a pay-per-call

information service's telephone number will be charged for that

call;

(2) the amount of the flat-rate or cost-per-minute charge the

caller will incur or the amount of both if both charges will be

incurred; and

(3) the estimated amount of time required to receive all the

information offered by the service during a call.

(c) Subsection (a) does not apply to the use of a device if the

device is used:

(1) for debt collection purposes in compliance with applicable

federal law and regulations; and

(2) by a live operator for automated dialing or hold

announcement purposes.

(d) In this section, "pay-per-call information service" means a

service that routinely delivers, for a predetermined and

sometimes time-sensitive fee, a prerecorded or live message or

interactive program after the caller dials a specified 900 or 976

number.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.128. DURATION OF RECORDED MESSAGE. A person may not use

an automated dial announcing device to make for solicitation

purposes a telephone call in which the device plays a recorded

message when the connection is completed unless:

(1) the recorded message is shorter than 30 seconds; or

(2) the device has the technical capacity to:

(A) recognize a telephone answering device on the called

person's line; and

(B) terminate the call within 30 seconds.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(f), eff.

Sept. 1, 1999.

Sec. 55.129. PERMIT REQUIRED. A person may not use an automated

dial announcing device to make a telephone call in which the

device plays a recorded message when the connection is completed

unless the person has a permit under Section 55.130.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.130. PERMIT. (a) A person may not use an automated

dial announcing device without a permit issued by the commission.

(b) An applicant for an original permit must submit to the

commission an application on a form that:

(1) is prescribed by the commission; and

(2) contains:

(A) the telephone number of each automated dial announcing

device that the person will use; and

(B) the physical address from which each automated dial

announcing device will operate.

(c) An original permit is valid for one year and may be renewed

annually by filing with the commission the information required

by Subsection (b)(2).

(d) An application for an original permit or a filing required

for the renewal of the permit must be accompanied by the

appropriate fee prescribed by Section 55.131.

(e) In determining whether to deny an application for an

original permit or renewal of the permit, the commission shall

consider the compliance record of the owner or operator of the

automated dial announcing device and may deny the application

based on that record.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.131. PERMIT FEE. (a) The commission shall prescribe a

fee for an original permit or renewal of a permit.

(b) The amount of the original permit fee must be reasonable and

cover the enforcement cost to the commission but may not exceed

$500.

(c) The fee for renewal of a permit may not exceed $100.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.132. NOTIFICATION OF CHANGE. (a) The owner or operator

of an automated dial announcing device shall notify the

commission if the telephone number of the device or the physical

address from which the device operates changes.

(b) The owner or operator shall give the notice by certified

mail not later than the 48th hour before the hour the device

begins operating with the new telephone number or at the new

address.

(c) If the owner or operator of a device fails to give notice as

required by Subsection (b), the person's permit is invalid.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.133. NOTIFICATION OF LOCAL EXCHANGE COMPANY. The

commission shall provide to a local exchange company on request a

copy of a permit issued under this subchapter and of any change

relating to the permit.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.134. COMPLAINTS AND ENFORCEMENT. (a) The commission

shall:

(1) investigate complaints relating to the use of an automated

dial announcing device; and

(2) enforce this subchapter.

(b) A local exchange company that receives a complaint relating

to the use of an automated dial announcing device shall send the

complaint to the commission. The commission by rule shall

prescribe the procedures and requirements for sending a complaint

to the commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.135. REVOCATION OF PERMIT. The commission may revoke a

person's permit if the person fails to comply with this

subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.136. DISCONNECTION OF SERVICE. (a) If the commission

or a court determines that a person has violated this subchapter,

the commission or court shall require a telecommunications

utility to disconnect service to the person.

(b) The telecommunications utility may reconnect service to the

person only on a determination by the commission that the person

will comply with this subchapter.

(c) Not later than the third day before the date of the

disconnection, the telecommunications utility shall give notice

to the person using the device of its intent to disconnect

service. However, if the device is causing network congestion or

blockage, the notice may be given on the day before the date of

disconnection.

(d) A telecommunications utility, without an order by the

commission or a court, may disconnect or refuse to connect

service to a person using or intending to use an automated dial

announcing device if the utility determines that the device would

cause or is causing network harm.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.137. ADMINISTRATIVE PENALTY. (a) The commission may

impose an administrative penalty against a person who owns or

operates an automated dial announcing device in violation of this

subchapter or a commission rule or order.

(b) The penalty for a violation may be in an amount not to

exceed $1,000 for each day or portion of a day during which the

device operates in violation of this subchapter or a commission

rule or order.

(c) The administrative penalty is civil in nature and is in

addition to any other penalty provided by law.

(d) The commission by rule shall prescribe the procedures for

assessing an administrative penalty under this section. The

procedures must require proper notice and hearing in accordance

with Chapter 2001, Government Code.

(e) A person may appeal the final order of the commission under

Chapter 2001, Government Code. The substantial evidence rule

applies on appeal.

(f) The proceeds of administrative penalties collected under

this section shall be deposited to the credit of the commission.

The commission shall use the proceeds to enforce this subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(g), eff.

Sept. 1, 1999.

Sec. 55.138. CRIMINAL PENALTY. (a) A person commits an offense

if the person owns or operates an automated dial announcing

device that the person knows is operating in violation of this

subchapter.

(b) An offense under this section is a Class A misdemeanor.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER H. PAY TELEPHONES

Sec. 55.171. DEFINITION. In this subchapter, "provider" means

an entity that provides pay telephone service, including:

(1) an incumbent local exchange company; and

(2) a subscriber to a customer-owned pay telephone service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.172. LIMITATION. This subchapter prescribes the limits

of:

(1) the right of a provider to set the provider's rates and

charges for pay telephone services; and

(2) the commission's authority over the pay telephone service

rates of an incumbent local exchange company.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.173. REGISTRATION. (a) A person may not provide pay

telephone service in this state unless the person is registered

with the commission.

(b) This section does not apply to a provider who holds a

certificate of convenience and necessity.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.1735. CHARGE FOR PAY PHONE ACCESS LINE. The charge or

surcharge a local exchange company imposes for an access line

used to provide pay telephone service in an exchange may not

exceed the amount of the charge or surcharge the company imposes

for an access line used for regular business purposes in that

exchange.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 11, eff. September 7, 2005.

Sec. 55.174. PROHIBITION ON CHARGE FOR CERTAIN CALLS. A

provider may not charge a person making a call on a pay telephone

for:

(1) local directory assistance; or

(2) a call made under Chapter 771 or 772, Health and Safety

Code.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.175. CHARGE FOR LOCAL CALLS. (a) The commission shall

establish the limit on the amount a provider may charge for a pay

telephone coin sent-paid call in the local exchange company's

toll-free calling area.

(b) The commission may establish a statewide ceiling on the

amount a provider may charge for a local pay telephone call that

is:

(1) collect;

(2) operator assisted; or

(3) paid by credit card or calling card.

(c) The commission may not establish the ceiling under

Subsection (b) at an amount that is less than the applicable

local rates for such a call imposed by any of the four largest

interexchange telecommunications carriers operating in this

state.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.176. CHARGE FOR 800-TYPE CALLS. (a) A provider may

charge at a pay telephone a fee of not more than 25 cents for

initiating an 800-type call.

(b) A provider may impose the fee only if:

(1) the pay telephone is registered with the commission; and

(2) the provider certifies that the pay telephone complies with

commission rules regarding the provision of pay telephone

service.

(c) Subsection (b) does not apply to a local exchange company

pay telephone.

(d) A provider may not impose the fee if imposition is

inconsistent with federal law.

(e) A provider may not impose the fee for a:

(1) local call;

(2) 911 call;

(3) local directory assistance call; or

(4) call that is covered by the Telephone Operator Consumer

Services Improvement Act of 1990 (47 U.S.C. Section 226).

(f) A provider who imposes the fee must post on each pay

telephone notice that the fee will be charged. The provider must

post the notice:

(1) in plain sight of the user; and

(2) in a manner consistent with existing commission requirements

for posting information.

(g) The commission may not impose on a local exchange company

the duty or obligation to:

(1) record the use of pay telephone service;

(2) bill or collect for the use of the pay telephone; or

(3) remit to the provider the fee authorized by this section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.177. CHARGE FOR CREDIT CARD, CALLING CARD, OR

OPERATOR-ASSISTED CALLS. (a) A provider may not impose for a

credit card, calling card, or live or automated operator-assisted

call a rate or charge that is greater than the authorized rates

and charges published on March 18, 1995, in the eight newspapers

having the largest circulation in this state.

(b) The published rates may not be changed.

(c) This section does not apply to a local exchange company.

Chapter 58 governs the pay telephone rates of an incumbent local

exchange company that elects incentive regulation under that

chapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.178. NOTICE OF INABILITY TO RECEIVE CALLS. (a) A

provider may not display the telephone number of a pay telephone

that cannot receive telephone calls.

(b) A provider shall place in a conspicuous location on each pay

telephone that cannot receive telephone calls a notice stating in

letters one-fourth inch high: "THIS TELEPHONE CANNOT RECEIVE

TELEPHONE CALLS."

(c) A provider that violates this section or a rule or order

adopted by the commission under this section is subject to a

civil penalty as provided by Section 15.028 unless the provider

takes corrective action to comply with this section or the rule

or order not later than the 14th day after the date the provider

receives written notice of the violation.

(d) The commission has jurisdiction over a provider to the

extent necessary to enforce this section regardless of whether a

provider is a telecommunications utility regulated under this

title.

(e) The commission may establish procedures to enforce this

section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.179. INFORMATION REQUIREMENTS. (a) The commission by

rule may prescribe the information that must be posted on a pay

telephone.

(b) A commission rule may not require a provider or an affiliate

of a provider to police compliance by another provider with the

commission's rules.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.180. VIOLATIONS. The commission may order the

disconnection of pay telephone service for not more than one year

for repeat violations of commission rules.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER I. DIRECTORY LISTINGS AND ASSISTANCE

Sec. 55.201. TERMS OF DIRECTORY LISTINGS AND ASSISTANCE. (a)

Each company that provides local exchange telephone service in

overlapping certificated areas shall negotiate the terms of

printed directory listings and directory assistance in those

areas.

(b) On complaint by the incumbent local exchange company or the

holder of a certificate of convenience and necessity, a

certificate of operating authority, or a service provider

certificate of operating authority, the commission may:

(1) resolve a dispute between the parties; and

(2) issue an order setting the terms of the directory listings

or directory assistance, if necessary.

(c) This section does not affect the authority of an incumbent

local exchange company to voluntarily conduct negotiations with

an applicant for a certificate of convenience and necessity, a

certificate of operating authority, or a service provider

certificate of operating authority.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.202. DIRECTORY PUBLISHED BY TELECOMMUNICATIONS UTILITY.

A telecommunications utility or an affiliate of that utility that

publishes a residential or business telephone directory that is

distributed to the public shall publish in the directory the name

of each state senator or representative who represents all or

part of the geographical area for which the directory contains

listings.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.203. DIRECTORY PUBLISHED BY PRIVATE PUBLISHER. (a) A

private for-profit publi

State Codes and Statutes

Statutes > Texas > Utilities-code > Title-2-public-utility-regulatory-act > Chapter-55-regulation-of-telecommunications-services

UTILITIES CODE

TITLE 2. PUBLIC UTILITY REGULATORY ACT

SUBTITLE C. TELECOMMUNICATIONS UTILITIES

CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 55.001. GENERAL STANDARD. A public utility shall furnish

service, instrumentalities, and facilities that are safe,

adequate, efficient, and reasonable.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.002. COMMISSION AUTHORITY CONCERNING STANDARDS. The

commission, on its own motion or on complaint and after

reasonable notice and hearing, may:

(1) adopt just and reasonable standards, classifications, rules,

or practices a public utility must follow in furnishing a

service;

(2) adopt adequate and reasonable standards for measuring a

condition, including quantity and quality, relating to the

furnishing of a service;

(3) adopt reasonable rules for examining, testing, and measuring

a service; and

(4) adopt or approve reasonable rules, specifications, and

standards to ensure the accuracy of equipment, including meters

and instruments, used to measure a service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.003. RULE OR STANDARD. (a) A public utility may not

impose a rule except as provided by this title.

(b) A public utility may file with the commission a standard,

classification, rule, or practice the utility follows.

(c) The standard, classification, rule, or practice continues in

force until:

(1) amended by the utility; or

(2) changed by the commission as provided by this subtitle.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.004. LOCAL EXCHANGE COMPANY RULE OR PRACTICE CHANGE.

(a) To make a change in an incumbent local exchange company's

tariffed rules or practices that does not affect the company's

charges or rates, the company must file the proposed change with

the commission at least 35 days before the effective date of the

change. The commission may require the incumbent local exchange

company to provide to ratepayers appropriate notice as determined

by the commission.

(b) The commission, on complaint by an affected person or on its

own motion and after reasonable notice, may hold a hearing to

determine the propriety of a change proposed under this section.

Pending the hearing and decision, the commission may suspend the

change for not longer than 120 days after the date the change

would otherwise be effective. The commission shall approve, deny,

or modify the change before the period of suspension expires.

(c) In a proceeding under this section, the incumbent local

exchange company has the burden of proving the proposed change:

(1) is in the public interest; and

(2) complies with this title.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.005. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING

SERVICE PROHIBITED. In providing a service to persons in a

classification, a public utility may not:

(1) grant an unreasonable preference or advantage to a person in

the classification; or

(2) subject a person in the classification to an unreasonable

prejudice or disadvantage.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.006. DISCRIMINATION AND RESTRICTION ON COMPETITION. A

public utility may not:

(1) discriminate against a person who sells or leases equipment

or performs services in competition with the public utility; or

(2) engage in a practice that tends to restrict or impair that

competition.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.007. MINIMUM SERVICES. (a) The commission shall

require a holder of a certificate of convenience and necessity or

a certificate of operating authority to provide at the applicable

tariff rate, if any, to each customer, regardless of race,

national origin, income, or residence in an urban or rural area:

(1) single-party service;

(2) tone-dialing service;

(3) basic custom calling features;

(4) equal access for an interLATA interexchange carrier on a

bona fide request; and

(5) digital switching capability in an exchange on customer

request, provided by a digital switch in the exchange or by

connection to a digital switch in another exchange.

(b) Notwithstanding Subsection (a), an electing incumbent local

exchange company serving more than 175,000 but fewer than

1,500,000 access lines on January 1, 1995, shall install a

digital switch in each central office that serves an exchange of

fewer than 20,000 access lines.

(c) The commission may temporarily waive a requirement imposed

by Subsection (a) or (b) on a showing of good cause.

(d) The commission may not consider the cost of implementing

this section in determining whether an electing company is

entitled to:

(1) a rate increase under Chapter 58 or 59; or

(2) increased universal service funds under Subchapter B,

Chapter 56.

(e) Expired.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.008. IMPROVEMENTS IN SERVICE; INTERCONNECTING SERVICE.

The commission, after notice and hearing, may:

(1) order a public utility to provide specified improvements in

its service in a specified area if:

(A) service in the area is inadequate or substantially inferior

to service in a comparable area; and

(B) requiring the company to provide the improved service is

reasonable; or

(2) order two or more utilities to establish specified

facilities for interconnecting service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.009. INTRALATA CALLS. (a) If federal law prohibits a

local exchange company in this state from providing interLATA

telecommunications services, the local exchange companies in this

state designated or de facto authorized to receive a "0-plus" or

"1-plus" dialed intraLATA call are exclusively designated or

authorized to receive such a call.

(b) A telecommunications utility operating under a certificate

of operating authority or a service provider certificate of

operating authority is de facto authorized to receive a "0-plus"

or "1-plus" dialed intraLATA call on the date the utility

receives its certificate, to the extent the utility is not

restricted by Section 54.159.

(c) If federal law allows all local exchange companies to

provide interLATA telecommunications services, the commission

shall ensure that:

(1) a customer may designate a provider of the customer's choice

to carry the customer's "0-plus" and "1-plus" dialed intraLATA

calls; and

(2) equal access in the public network is implemented to allow

the provider to carry those calls.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.010. BILLING FOR SERVICE TO THE STATE. A

telecommunications utility providing service to the state,

including service to an agency in any branch of state government,

may not impose a fee, a penalty, interest, or any other charge

for delinquent payment of a bill for that service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.011. NOTICE OF IDENTITY OF INTEREXCHANGE CARRIER. (a)

A local exchange company shall print on the first page of each

bill sent to a customer of the local exchange company the name of

the customer's primary interexchange carrier if the company

provides billing services for that carrier.

(b) The bill must contain instructions on how the customer can

contact the commission if the customer believes that the named

carrier is not the customer's primary interexchange carrier.

(c) The commission may, for good cause, waive the billing

requirement prescribed by this section in exchanges served by

local exchange companies serving not more than 31,000 access

lines.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.04(b), eff. Sept.

1, 1999.

Sec. 55.012. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL

TELECOMMUNICATIONS SERVICE. (a) A provider of basic local

telecommunications service may not discontinue that service

because of nonpayment by a residential customer of charges for

long distance service. Payment shall first be allocated to basic

local telecommunications service.

(b) For purposes of allocating payment in this section, if the

provider of basic local telecommunications service bundles its

basic local telecommunications service with long distance service

or any other service and provides a discount for the basic local

telecommunications service because of that bundling, the rate of

basic local telecommunications service shall be the rate the

provider charges for stand-alone basic local telecommunications

service.

(c) Notwithstanding Subsection (a), the commission shall adopt

and implement rules, not later than January 1, 2000, to prevent

customer abuse of the protections afforded by this section. The

rules must include:

(1) provisions requiring a provider of basic local

telecommunications service to offer and implement, at the request

and expense of a long distance service provider, toll blocking

capability to limit a customer's ability to incur additional

charges for long distance services after nonpayment for long

distance services; and

(2) provisions regarding fraudulent activity in response to

which a provider may discontinue a residential customer's basic

local telecommunications service.

(d) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to establish a maximum

price that an incumbent local exchange company may charge a long

distance service provider to initiate the toll blocking

capability required to be offered under the rules adopted under

Subsection (c). The maximum price established under this

subsection shall be observed by all providers of basic local

telecommunications service in the incumbent local exchange

company's certificated service area. Notwithstanding Sections

52.102 and 52.152, the commission has all jurisdiction necessary

to enforce this section.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 5, eff. Aug. 30,

1999.

Sec. 55.013. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL

TELECOMMUNICATIONS SERVICE. (a) A provider of basic local

telecommunications service may not discontinue that service

because of nonpayment by a residential customer of charges for

long distance service. Payment shall first be allocated to basic

local telecommunications service.

(b) For purposes of allocating payment in this section, if the

provider of basic local telecommunications service bundles its

basic local telecommunications service with long distance service

or any other service and provides a discount for the basic local

telecommunications service because of that bundling, the rate of

basic local telecommunications service shall be the rate the

provider charges for stand-alone basic local telecommunications

service.

(c) Notwithstanding Subsection (a), the commission shall adopt

and implement rules, not later than January 1, 2000, to prevent

customer abuse of the protections afforded by this section. The

rules must include:

(1) provisions requiring a provider of basic local

telecommunications service to offer and implement toll blocking

capability to limit a customer's ability to incur additional

charges for long distance services after nonpayment for long

distance services; and

(2) provisions regarding fraudulent activity in response to

which a provider may discontinue a residential customer's basic

local telecommunications service.

(d) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to establish a maximum

price that an incumbent local exchange company may charge a long

distance service provider to initiate the toll blocking

capability required to be offered under the rules adopted under

Subsection (c). The maximum price established under this

subsection shall be observed by all providers of basic local

telecommunications service in the incumbent local exchange

company's certificated service area. Notwithstanding Sections

52.102 and 52.152, the commission has all jurisdiction necessary

to enforce this section.

(e) A provider of basic local exchange telecommunications

service shall comply with the requirements of this section not

later than March 1, 2000.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 19, eff. Sept. 1,

1999.

Sec. 55.014. PROVISION OF ADVANCED TELECOMMUNICATIONS SERVICES.

(a) In this section, "advanced service" means any

telecommunications service other than residential or business

basic local exchange telephone service, caller identification

service, and customer calling features.

(b) This section applies to a company electing under Chapter 58

or a company that holds a certificate of operating authority or

service provider certificate of operating authority.

(c) Notwithstanding any other provision of this title, beginning

September 1, 2001, a company to which this section applies that

provides advanced telecommunications services within the

company's urban service areas, shall, on a bona fide retail

request for those services, provide in rural areas of this state

served by the company advanced telecommunications services that

are reasonably comparable to the advanced services provided in

urban areas. The company shall offer the advanced

telecommunications services:

(1) at prices, terms, and conditions that are reasonably

comparable to the prices, terms, and conditions for similar

advanced services provided by the company in urban areas; and

(2) within 15 months after the bona fide request for those

advanced services.

(d) Notwithstanding any other provision of this title, a company

to which this section applies shall, on a bona fide retail

request for those services, offer caller identification service

and custom calling features in rural areas served by the company.

The company shall offer the services:

(1) at prices, terms, and conditions reasonably comparable to

the company's prices, terms, and conditions for similar services

in urban areas; and

(2) within 15 months after the bona fide request for those

services.

(e) This section may not be construed to require a company to:

(1) begin providing services in a rural area in which the

company does not provide local exchange telephone service; or

(2) provide a service in a rural area of this state unless the

company provides the service in urban areas of this state.

(f) For purposes of this section, a company to which this

section applies is considered to provide services in urban areas

of this state if the company provides services in a municipality

with a population of more than 190,000.

(g) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to enforce this

section.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 20, eff. Sept. 1,

1999.

Sec. 55.015. LIFELINE SERVICE. (a) The commission shall adopt

rules prohibiting a certificated provider of local exchange

telephone service from discontinuing basic network services

listed in Section 58.051 to a consumer who receives lifeline

service because of nonpayment by the consumer of charges for

other services billed by the provider, including interexchange

telecommunications service.

(b) The commission shall adopt rules providing for automatic

enrollment to receive lifeline service for eligible consumers.

The Texas Department of Human Services, on request of the

commission, shall assist in the adoption and implementation of

those rules. The commission and the Texas Department of Human

Services shall enter into a memorandum of understanding

establishing the respective duties of the commission and

department in relation to the automatic enrollment.

(b-1) The commission shall adopt rules requiring certificated

providers of local exchange telephone service to implement

procedures to ensure that all consumers are clearly informed both

orally and in writing of the existence of the lifeline service

program when they request or initiate service or change service

locations or providers. On or before June 1, 2006, the

commission shall enter into a memorandum of understanding with

the Health and Human Services Commission, and, to the maximum

extent feasible, housing authorities in the principal cities of

each metropolitan statistical area, to improve enrollment rates

in the lifeline service program.

(c) A certificated provider of local exchange telephone service

may block a lifeline service participant's access to all

interexchange telecommunications service except toll-free numbers

when the participant owes an outstanding amount for that service.

The provider shall remove the block without additional cost to

the participant on payment of the outstanding amount.

(d) A certificated provider of local exchange telephone service

shall offer a consumer who applies for or receives lifeline

service the option of blocking all toll calls or, if technically

capable, placing a limit on the amount of toll calls. The

provider may not charge the consumer an administrative charge or

other additional amount for the blocking service.

(d-1) A certificated provider of local exchange telephone

service shall provide access to lifeline service to a customer

whose income is not more than 150 percent of the applicable

income level established by the federal poverty guidelines or in

whose household resides a person who receives or has a child who

receives:

(1) Medicaid;

(2) food stamps;

(3) Supplemental Security Income;

(4) federal public housing assistance;

(5) Low Income Home Energy Assistance Program (LIHEAP)

assistance; or

(6) health benefits coverage under the state child health plan

under Chapter 62, Health and Safety Code.

(d-2) A certificated provider of local exchange telephone

service shall provide consumers who apply for or receive lifeline

service access to available vertical services or custom calling

features, including caller ID, call waiting, and call blocking,

at the same price as other consumers. Lifeline discounts shall

only apply to that portion of the bill that is for basic network

service.

(e) In this section, "lifeline service" means a retail local

service offering described by 47 C.F.R. Section 54.401(a), as

amended.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 21, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 9, eff. September 7, 2005.

Sec. 55.016. TELECOMMUNICATIONS BILLING. (a) The proliferation

of charges for separate services, products, surcharges, fees, and

taxes on a bill for telecommunications products or services has

increased the complexity of those bills to such an extent that in

some cases the bills have become difficult for customers to

understand.

(b) A bill from a local exchange company for telecommunications

products or services should be consistent with providing

customers sufficient information about the charges included in

the bill to understand the basis and source of the charges.

(c) To the extent permitted by law, a monthly bill from a local

exchange company for local exchange telephone service shall

clearly identify all charges including basic local service

charges, fees, carrier's charges, assessments, surcharges,

optional services, and taxes.

(d) Local exchange carriers shall annually file a copy of that

portion of their bill that has not been previously approved by

the commission for compliance review with this section.

(e) The commission shall have all necessary authority to enforce

this section.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 18, eff. Mar. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 963, Sec. 1, eff. June

14, 2001. Renumbered from Sec. 55.012 by Acts 2001, 77th Leg.,

ch. 1420, Sec. 21.001(110), eff. Sept. 1, 2001.

Sec. 55.017. IDENTIFICATION REQUIRED. (a) A representative of

a telecommunications provider or a video or cable service

provider that has an easement in or a right-of-way over or

through real property must show proof of identification to the

owner of the real property when entering the property if

requested by the owner.

(b) This section does not apply to regularly scheduled service

readings or examinations.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 10, eff. September 7, 2005.

SUBCHAPTER B. EXTENDED AREA SERVICE

Sec. 55.021. EXTENDED AREA SERVICE. After notice and a hearing,

the commission may order one or more local exchange companies

that are dominant carriers to provide:

(1) mandatory extended area service in accordance with Section

55.022; or

(2) optional extended area service in accordance with Section

55.023.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.022. MANDATORY SERVICE. The commission may order

mandatory extended area service in a specified metropolitan area

if:

(1) there is a sufficient community of interest in the area; and

(2) the company can reasonably provide the service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.023. OPTIONAL EXTENDED AREA SERVICE. (a) The

commission may order optional extended area service in a

specified calling area if:

(1) each affected company and the representatives of at least

one political subdivision in the proposed calling area agree to

the service; and

(2) the proposed common calling area has a single, continuous

boundary.

(b) The commission may not adopt rules that diminish in any

manner the ability of an affected company or a political

subdivision to enter into joint agreements for optional extended

area service under this section.

(c) In this section, "political subdivision" means:

(1) a county;

(2) a municipality; or

(3) an unincorporated town or village that has 275 or more

access lines.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.024. CHARGE FOR EXTENDED AREA SERVICE. (a) An

incumbent local exchange company that provides mandatory two-way

extended area service to customers shall impose for that service

a separately stated monthly charge of $3.50 a line for a

residential customer and $7 a line for a business customer if, on

September 1, 1995, the company:

(1) served more than 1,000,000 access lines in this state; and

(2) imposed a separately stated monthly charge for mandatory

two-way extended area service of more than $3.50 a line for a

residential customer and more than $7 a line for a business

customer.

(b) The company shall recover all costs incurred and all loss of

revenue that results from imposition of the rates prescribed by

Subsection (a) in the manner prescribed by Section 55.048(c).

(c) The rate limitation prescribed by Subsection (a) does not

apply to a separately stated monthly charge for:

(1) extended area service in or into a metropolitan exchange; or

(2) extended metropolitan service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.025. HUNTING SERVICE. (a) A local exchange company

shall make available, at a reasonable tariffed rate, hunting

service from local exchange lines to extended metropolitan

service lines.

(b) The company may not require a customer to purchase

additional extended metropolitan service to obtain the hunting

service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER C. EXPANDED TOLL-FREE LOCAL CALLING AREAS

Sec. 55.041. DEFINITIONS. In this subchapter, "metropolitan

exchange," "local calling area of a metropolitan exchange," and

"exchange" have the meanings and boundaries assigned by the

commission on September 1, 1993.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.042. CONTIGUOUS EXCHANGE. The commission may expand a

toll-free local calling area into an exchange that is not in a

metropolitan exchange but is in a local calling area that is

contiguous to a metropolitan exchange that the commission

determines has a community of interest with the exchange for

which a petition is filed under this subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.043. SPLITTING EXCHANGES PROHIBITED. Notwithstanding

any other provision of this subchapter, the commission may not

split a petitioning or requested exchange in establishing a

toll-free local calling area.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.044. EXEMPTION. (a) The commission may not require an

incumbent local exchange company serving the petitioning or

requested exchange to expand the company's toll-free local

calling area under this subchapter if:

(1) the incumbent local exchange company has fewer than 10,000

access lines;

(2) the petitioning or requested exchange is served by a

telephone cooperative corporation;

(3) extended area service or extended metropolitan service is

available between the exchanges;

(4) the petitioning or requested exchange is a metropolitan

exchange; or

(5) the commission determines that the company has shown that to

serve the area is not geographically or technologically feasible.

(b) To promote the wide dispersion of pay telephones, the

commission may:

(1) exempt pay telephones from this subchapter; or

(2) change the rates charged for calls from pay telephones.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.045. ELIGIBILITY TO PETITION. The telephone subscribers

of an incumbent local exchange company exchange that serves not

more than 10,000 access lines may petition the commission for

expansion of the company's toll-free local calling area if:

(1) the petitioning exchange's central switching office is

located within 22 miles, using vertical and horizontal geographic

coordinates, of the central switching office of the exchange

requested for expanded local calling service; or

(2) the petitioning exchange's central office is not more than

50 miles from the central office of the exchange requested for

expanded local calling service and the exchanges share a

community of interest.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.046. PETITION REQUIREMENTS. (a) A petition under this

subchapter must be signed by a number of the exchange's

subscribers equal at least to the lesser of 100 of the exchange's

subscribers or five percent of the exchange's subscribers.

(b) An exchange that petitions under Section 55.045(2) must

demonstrate in the petition that the exchange shares a community

of interest with the requested exchange.

(c) For purposes of this section, the relationships between

exchanges that create a community of interest include:

(1) a relationship because of schools, hospitals, local

governments, or business centers; or

(2) other relationships that would make the unavailability of

expanded local calling service a hardship for the residents of

the area.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.047. BALLOTING AND CONSIDERATION. (a) If the

commission receives a petition that complies with this

subchapter, the commission shall order the incumbent local

exchange company to provide ballots to the subscribers in the

petitioning exchange.

(b) The commission shall consider the request for expansion of

the toll-free local calling area if at least 70 percent of the

subscribers who vote do so in favor of the expansion.

(c) The commission by rule shall provide for an expedited

hearing on the issue of expansion.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.048. CHARGES. (a) The incumbent local exchange company

shall recover all costs incurred and all loss of revenue from an

expansion of a toll-free local calling area under this subchapter

through a request other than a revenue requirement showing by

imposing a monthly fee under Subsection (b) or (c), or both.

(b) The company may impose a monthly fee against each

residential and business customer in the petitioning exchange.

The fee may not exceed $3.50 a line for a residential customer

and $7 a line for a business customer unless the customer's

toll-free local calling area includes more than five exchanges.

The company may impose an additional monthly fee of $1.50 for

each exchange in excess of five. This subsection applies

regardless of the number of petitions required to obtain access

to the exchanges. A company may impose a fee under this

subsection only until the company's next general rate case.

(c) The company may impose a monthly fee against each of the

company's local exchange service customers in this state. This

fee is in addition to the company's local exchange rates.

(d) The company may not recover regulatory case expenses under

this subchapter by imposing a surcharge on the subscribers of the

petitioning exchange.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER D. OPERATOR SERVICE PROVIDERS

Sec. 55.081. DEFINITION. In this subchapter, "operator service"

means a service using live operator or automated operator

functions to handle telephone service such as toll calling using

collect, third-number billing, and calling card services. The

term does not include a call for which the called party has

arranged to be billed (800 service).

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.082. APPLICABILITY. Except as provided by Section

55.088, this subchapter applies only to a telecommunications

utility that is not a dominant carrier.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.083. RULES AND PROCEDURES. (a) The commission may

adopt rules and establish procedures to enforce and implement

this subchapter.

(b) A rule adopted under this subchapter must be

nondiscriminatory and designed to promote competition that

facilitates consumer choice.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.084. INFORMATION DISPLAYED ON PUBLIC USE TELEPHONE. (a)

An operator service provider shall furnish each entity with

which it contracts to provide operator service a sticker, card,

or other form of information approved by the commission for each

telephone that:

(1) has access to the service; and

(2) is intended for use by the public.

(b) The commission may grant the owner of a telephone approval

for an alternative form of information.

(c) The information must state:

(1) the provider's name;

(2) that the operator service provider will provide rate

information on a caller's request;

(3) that a caller, on the caller's request, will be informed of

the method of access to the local exchange carrier operator; and

(4) that a complaint about the service may be made to the

provider or to the commission at the designated telephone number.

(d) The operator service provider shall by contract require an

entity receiving information to display the information on or

near each telephone for which the operator service provider is

required to furnish the information.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.085. CONNECTION ANNOUNCEMENT. Before connecting a call,

the operator service provider shall:

(1) announce the provider's name; and

(2) at the caller's request, quote the rate and any other fee or

surcharge that applies to the call and is charged by the

provider.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.086. INFORMATION REQUIRED ON ACCESS TO LOCAL EXCHANGE

COMPANY OPERATOR. (a) An operator service provider, on a

caller's request, shall inform the caller of the method of access

to the local exchange carrier operator serving the exchange from

which the call is made.

(b) A charge may not be made for information provided under this

section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.087. ACCESS TO LOCAL EXCHANGE COMPANY AND OTHER

UTILITIES REQUIRED. (a) The commission by rule shall require an

operator service provider to include in its contract with each

entity through which it provides operator service a provision

that requires each telephone subscribed to its service to allow

access to:

(1) the local exchange carrier operator serving the exchange

from which the call is made; and

(2) other telecommunications utilities.

(b) To prevent fraudulent use of its service, an operator

service provider or an entity through which it provides operator

service may block the access described by Subsection (a) by

obtaining a waiver for this purpose from the commission or the

Federal Communications Commission. The commission by rule shall

establish the procedure and criteria for obtaining a waiver from

the commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.088. ACCESS TO LIVE OPERATOR REQUIRED. (a) A dominant

or nondominant telecommunications utility that provides operator

service shall ensure that a caller has access to a live operator

at the beginning of a live or mechanized operator-assisted call

through a method designed to be easily and clearly understandable

and accessible to the caller.

(b) A telecommunications utility described by Subsection (a)

shall submit to the commission for review the method by which the

utility will provide access to a live operator.

(c) This section applies regardless of the method by which the

telecommunications utility provides operator service.

(d) This section does not apply to a telephone located in a

prison or jail facility.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.089. COMMISSION MAY INVESTIGATE AND ACT ON VIOLATION.

(a) If the commission determines that an operator service

provider has violated or is about to violate this subchapter, the

commission, after notice and evidentiary hearing, may take action

to stop, correct, or prevent the violation.

(b) The commission may investigate a complaint that it receives

concerning an operator service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER E. CALLER IDENTIFICATION SERVICE

Sec. 55.101. DEFINITIONS. In this subchapter:

(1) "Caller identification information" means any information

that may be used to identify the specific originating number or

originating location of a wire or electronic communication

transmitted by a telephone, including the telephone listing

number or the name of the customer from whose telephone a

telephone number is dialed.

(2) "Caller identification service" means a service that

provides caller identification information to a device that can

display the information.

(3) "Per-call blocking" means a telecommunications service that

prevents caller identification information from being transmitted

to a called party on an individual call when the calling party

affirmatively acts to prevent the transmission.

(4) "Per-line blocking" means a telecommunications service that

prevents caller identification information from being transmitted

to a called party on each call unless the calling party

affirmatively acts to permit the transmission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.102. APPLICABILITY. (a) This subchapter applies only

to the provision of caller identification service.

(b) This subchapter does not apply to:

(1) an identification service that is used in a limited system,

including a central office based PBX-type system;

(2) information that is used on a public agency's emergency

telephone line or on a line that receives the primary emergency

telephone number (911);

(3) information exchanged between telecommunications utilities,

enhanced service providers, or other entities that is necessary

for the setting up, processing, transmission, or billing of

telecommunications or related services;

(4) information provided in compliance with applicable law or

legal process; or

(5) an identification service provided in connection with a 700,

800, or 900 access code telecommunications service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.103. PROVISION OF SERVICE. (a) A telecommunications

utility may offer caller identification services under this

subchapter only if the utility obtains written authorization from

the commission.

(b) A commercial mobile service provider may offer caller

identification services in accordance with Sections 55.104,

55.105, 55.106, 55.1065, and 55.107.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(a), eff.

Sept. 1, 1999.

Sec. 55.104. USE OF INFORMATION. (a) A person may not use a

caller identification service to compile and sell specific local

call information without the affirmative approval of the

originating telephone customer.

(b) This section does not prohibit a provider of caller

identification service from:

(1) verifying network performance or testing the caller

identification service;

(2) compiling, using, and disclosing aggregate caller

identification information; or

(3) complying with applicable law or legal process.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.105. PER-CALL BLOCKING. Except as provided by Section

55.1065, the commission shall require that a provider of caller

identification service offer free per-call blocking to each

telephone subscriber in the specific area in which the service is

offered.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(b), eff.

Sept. 1, 1999.

Sec. 55.106. PER-LINE BLOCKING. (a) Except as provided by

Section 55.1065, the commission shall require that a provider of

caller identification service offer free per-line blocking to a

particular customer if the commission receives from the customer

written certification that the customer has a compelling need for

per-line blocking.

(b) A provider who is ordered to offer per-line blocking under

this section shall notify the customer by mail of the date the

blocking will begin.

(c) If a customer removes and later reinstates the per-line

block, the provider may assess a service order charge in an

amount approved by the commission for the provider's

administrative expenses relating to the reinstatement.

(d) The commission may impose a fee or assessment on a provider

in an amount sufficient to cover the additional expenses the

commission incurs in implementing the customer certification

provisions of this section.

(e) Information received under this section by the commission or

by a provider is confidential and may be used only to administer

this section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(c), eff.

Sept. 1, 1999.

Sec. 55.107. LIMITATION ON COMMISSION AUTHORITY. The commission

may prescribe in relation to blocking only a requirement

authorized by Sections 55.105, 55.106, and 55.1065.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(e), eff.

Sept. 1, 1999.

Sec. 55.109. IMPLEMENTATION OF PANEL RECOMMENDATIONS. The

commission may implement the recommendations of the Caller ID

Consumer Education Panel and interested parties to the extent

consistent with the public interest.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.110. REPORT OF BLOCKING FAILURE. (a) A provider of

caller ID services who becomes aware of the failure of per-call

or per-line blocking to block identification of a customer shall

report that failure to the commission, the Caller ID Consumer

Education Panel, and the customer whose identification was not

blocked.

(b) The provider shall make a reasonable effort to notify the

customer within 24 hours after the provider becomes aware of the

failure. The provider is not required to notify the customer if

the customer reported the failure.

(c) In this section, "caller ID service" means a service that

permits the called party to determine the identity, telephone

number, or address of the calling party. The term does not

include 911 services.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER F. AUTOMATIC DIAL ANNOUNCING DEVICES

Sec. 55.121. DEFINITION. In this subchapter, "automated dial

announcing device" means automated equipment used for telephone

solicitation or collection that can:

(1) store telephone numbers to be called or produce numbers to

be called through use of a random or sequential number generator;

and

(2) convey, alone or in conjunction with other equipment, a

prerecorded or synthesized voice message to the number called

without the use of a live operator.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.122. EXEMPTIONS. This subchapter does not apply to the

use of an automated dial announcing device:

(1) to make a call relating to an emergency or a public service

under a program developed or approved by the emergency management

coordinator of the county in which the call is received; or

(2) by a public or private primary or secondary school system to

locate or account for a truant student.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.123. NOTICE OF USE OF DEVICE TO TELECOMMUNICATIONS

UTILITY. A person may not use an automated dial announcing

device to make a telephone call in which the device plays a

recorded message when the connection is completed unless the

person gives to each telecommunications utility over whose system

the device is to be used written notice specifying the type of

device to be used.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.124. RANDOM OR SEQUENTIAL NUMBER CALLING. A person may

not use an automated dial announcing device for random number

dialing or to dial numbers determined by successively increasing

or decreasing integers if the person uses the device to make a

telephone call in which the device plays a recorded message when

the connection is completed.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.125. HOURS WHEN USE PROHIBITED. (a) A person may not

use an automated dial announcing device to make a telephone

solicitation call terminating in this state in which the device

plays a recorded message when the connection is completed if the

call is made:

(1) before noon or after 9 p.m. on a Sunday; or

(2) before 9 a.m. or after 9 p.m. on a weekday or a Saturday.

(b) A person may not use an automated dial announcing device to

make a telephone collection call terminating in this state in

which the device plays a recorded message when the connection is

completed if the call is made at an hour at which collection

calls are prohibited under the federal Fair Debt Collection

Practices Act (15 U.S.C. Section 1692 et seq.).

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.126. DEVICE DISCONNECTION. A person may not use an

automated dial announcing device to make a telephone call in

which the device plays a recorded message when the connection is

completed unless the device disconnects from the called person's

line not later than five seconds after the call is terminated by

either party. If the device cannot disconnect during that period,

a live operator must introduce the call and receive the called

person's oral consent before beginning a prerecorded or

synthesized voice message.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 667, Sec. 2, eff. Sept. 1,

1999.

Sec. 55.127. CONTENTS OF RECORDED MESSAGE. (a) A person may

not use an automated dial announcing device to make a telephone

call in which the device plays a recorded message when the

connection is completed unless the recorded message states during

the first 30 seconds of the call:

(1) the nature of the call;

(2) the identity of the person, company, or organization making

the call; and

(3) the telephone number from which the call is made.

(b) In addition to the requirements prescribed by Subsection

(a), a call during which a cross-promotion or reference to a

pay-per-call information service is made must include a statement

of:

(1) the fact that a caller who makes a call to a pay-per-call

information service's telephone number will be charged for that

call;

(2) the amount of the flat-rate or cost-per-minute charge the

caller will incur or the amount of both if both charges will be

incurred; and

(3) the estimated amount of time required to receive all the

information offered by the service during a call.

(c) Subsection (a) does not apply to the use of a device if the

device is used:

(1) for debt collection purposes in compliance with applicable

federal law and regulations; and

(2) by a live operator for automated dialing or hold

announcement purposes.

(d) In this section, "pay-per-call information service" means a

service that routinely delivers, for a predetermined and

sometimes time-sensitive fee, a prerecorded or live message or

interactive program after the caller dials a specified 900 or 976

number.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.128. DURATION OF RECORDED MESSAGE. A person may not use

an automated dial announcing device to make for solicitation

purposes a telephone call in which the device plays a recorded

message when the connection is completed unless:

(1) the recorded message is shorter than 30 seconds; or

(2) the device has the technical capacity to:

(A) recognize a telephone answering device on the called

person's line; and

(B) terminate the call within 30 seconds.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(f), eff.

Sept. 1, 1999.

Sec. 55.129. PERMIT REQUIRED. A person may not use an automated

dial announcing device to make a telephone call in which the

device plays a recorded message when the connection is completed

unless the person has a permit under Section 55.130.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.130. PERMIT. (a) A person may not use an automated

dial announcing device without a permit issued by the commission.

(b) An applicant for an original permit must submit to the

commission an application on a form that:

(1) is prescribed by the commission; and

(2) contains:

(A) the telephone number of each automated dial announcing

device that the person will use; and

(B) the physical address from which each automated dial

announcing device will operate.

(c) An original permit is valid for one year and may be renewed

annually by filing with the commission the information required

by Subsection (b)(2).

(d) An application for an original permit or a filing required

for the renewal of the permit must be accompanied by the

appropriate fee prescribed by Section 55.131.

(e) In determining whether to deny an application for an

original permit or renewal of the permit, the commission shall

consider the compliance record of the owner or operator of the

automated dial announcing device and may deny the application

based on that record.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.131. PERMIT FEE. (a) The commission shall prescribe a

fee for an original permit or renewal of a permit.

(b) The amount of the original permit fee must be reasonable and

cover the enforcement cost to the commission but may not exceed

$500.

(c) The fee for renewal of a permit may not exceed $100.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.132. NOTIFICATION OF CHANGE. (a) The owner or operator

of an automated dial announcing device shall notify the

commission if the telephone number of the device or the physical

address from which the device operates changes.

(b) The owner or operator shall give the notice by certified

mail not later than the 48th hour before the hour the device

begins operating with the new telephone number or at the new

address.

(c) If the owner or operator of a device fails to give notice as

required by Subsection (b), the person's permit is invalid.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.133. NOTIFICATION OF LOCAL EXCHANGE COMPANY. The

commission shall provide to a local exchange company on request a

copy of a permit issued under this subchapter and of any change

relating to the permit.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.134. COMPLAINTS AND ENFORCEMENT. (a) The commission

shall:

(1) investigate complaints relating to the use of an automated

dial announcing device; and

(2) enforce this subchapter.

(b) A local exchange company that receives a complaint relating

to the use of an automated dial announcing device shall send the

complaint to the commission. The commission by rule shall

prescribe the procedures and requirements for sending a complaint

to the commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.135. REVOCATION OF PERMIT. The commission may revoke a

person's permit if the person fails to comply with this

subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.136. DISCONNECTION OF SERVICE. (a) If the commission

or a court determines that a person has violated this subchapter,

the commission or court shall require a telecommunications

utility to disconnect service to the person.

(b) The telecommunications utility may reconnect service to the

person only on a determination by the commission that the person

will comply with this subchapter.

(c) Not later than the third day before the date of the

disconnection, the telecommunications utility shall give notice

to the person using the device of its intent to disconnect

service. However, if the device is causing network congestion or

blockage, the notice may be given on the day before the date of

disconnection.

(d) A telecommunications utility, without an order by the

commission or a court, may disconnect or refuse to connect

service to a person using or intending to use an automated dial

announcing device if the utility determines that the device would

cause or is causing network harm.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.137. ADMINISTRATIVE PENALTY. (a) The commission may

impose an administrative penalty against a person who owns or

operates an automated dial announcing device in violation of this

subchapter or a commission rule or order.

(b) The penalty for a violation may be in an amount not to

exceed $1,000 for each day or portion of a day during which the

device operates in violation of this subchapter or a commission

rule or order.

(c) The administrative penalty is civil in nature and is in

addition to any other penalty provided by law.

(d) The commission by rule shall prescribe the procedures for

assessing an administrative penalty under this section. The

procedures must require proper notice and hearing in accordance

with Chapter 2001, Government Code.

(e) A person may appeal the final order of the commission under

Chapter 2001, Government Code. The substantial evidence rule

applies on appeal.

(f) The proceeds of administrative penalties collected under

this section shall be deposited to the credit of the commission.

The commission shall use the proceeds to enforce this subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(g), eff.

Sept. 1, 1999.

Sec. 55.138. CRIMINAL PENALTY. (a) A person commits an offense

if the person owns or operates an automated dial announcing

device that the person knows is operating in violation of this

subchapter.

(b) An offense under this section is a Class A misdemeanor.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER H. PAY TELEPHONES

Sec. 55.171. DEFINITION. In this subchapter, "provider" means

an entity that provides pay telephone service, including:

(1) an incumbent local exchange company; and

(2) a subscriber to a customer-owned pay telephone service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.172. LIMITATION. This subchapter prescribes the limits

of:

(1) the right of a provider to set the provider's rates and

charges for pay telephone services; and

(2) the commission's authority over the pay telephone service

rates of an incumbent local exchange company.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.173. REGISTRATION. (a) A person may not provide pay

telephone service in this state unless the person is registered

with the commission.

(b) This section does not apply to a provider who holds a

certificate of convenience and necessity.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.1735. CHARGE FOR PAY PHONE ACCESS LINE. The charge or

surcharge a local exchange company imposes for an access line

used to provide pay telephone service in an exchange may not

exceed the amount of the charge or surcharge the company imposes

for an access line used for regular business purposes in that

exchange.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 11, eff. September 7, 2005.

Sec. 55.174. PROHIBITION ON CHARGE FOR CERTAIN CALLS. A

provider may not charge a person making a call on a pay telephone

for:

(1) local directory assistance; or

(2) a call made under Chapter 771 or 772, Health and Safety

Code.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.175. CHARGE FOR LOCAL CALLS. (a) The commission shall

establish the limit on the amount a provider may charge for a pay

telephone coin sent-paid call in the local exchange company's

toll-free calling area.

(b) The commission may establish a statewide ceiling on the

amount a provider may charge for a local pay telephone call that

is:

(1) collect;

(2) operator assisted; or

(3) paid by credit card or calling card.

(c) The commission may not establish the ceiling under

Subsection (b) at an amount that is less than the applicable

local rates for such a call imposed by any of the four largest

interexchange telecommunications carriers operating in this

state.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.176. CHARGE FOR 800-TYPE CALLS. (a) A provider may

charge at a pay telephone a fee of not more than 25 cents for

initiating an 800-type call.

(b) A provider may impose the fee only if:

(1) the pay telephone is registered with the commission; and

(2) the provider certifies that the pay telephone complies with

commission rules regarding the provision of pay telephone

service.

(c) Subsection (b) does not apply to a local exchange company

pay telephone.

(d) A provider may not impose the fee if imposition is

inconsistent with federal law.

(e) A provider may not impose the fee for a:

(1) local call;

(2) 911 call;

(3) local directory assistance call; or

(4) call that is covered by the Telephone Operator Consumer

Services Improvement Act of 1990 (47 U.S.C. Section 226).

(f) A provider who imposes the fee must post on each pay

telephone notice that the fee will be charged. The provider must

post the notice:

(1) in plain sight of the user; and

(2) in a manner consistent with existing commission requirements

for posting information.

(g) The commission may not impose on a local exchange company

the duty or obligation to:

(1) record the use of pay telephone service;

(2) bill or collect for the use of the pay telephone; or

(3) remit to the provider the fee authorized by this section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.177. CHARGE FOR CREDIT CARD, CALLING CARD, OR

OPERATOR-ASSISTED CALLS. (a) A provider may not impose for a

credit card, calling card, or live or automated operator-assisted

call a rate or charge that is greater than the authorized rates

and charges published on March 18, 1995, in the eight newspapers

having the largest circulation in this state.

(b) The published rates may not be changed.

(c) This section does not apply to a local exchange company.

Chapter 58 governs the pay telephone rates of an incumbent local

exchange company that elects incentive regulation under that

chapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.178. NOTICE OF INABILITY TO RECEIVE CALLS. (a) A

provider may not display the telephone number of a pay telephone

that cannot receive telephone calls.

(b) A provider shall place in a conspicuous location on each pay

telephone that cannot receive telephone calls a notice stating in

letters one-fourth inch high: "THIS TELEPHONE CANNOT RECEIVE

TELEPHONE CALLS."

(c) A provider that violates this section or a rule or order

adopted by the commission under this section is subject to a

civil penalty as provided by Section 15.028 unless the provider

takes corrective action to comply with this section or the rule

or order not later than the 14th day after the date the provider

receives written notice of the violation.

(d) The commission has jurisdiction over a provider to the

extent necessary to enforce this section regardless of whether a

provider is a telecommunications utility regulated under this

title.

(e) The commission may establish procedures to enforce this

section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.179. INFORMATION REQUIREMENTS. (a) The commission by

rule may prescribe the information that must be posted on a pay

telephone.

(b) A commission rule may not require a provider or an affiliate

of a provider to police compliance by another provider with the

commission's rules.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.180. VIOLATIONS. The commission may order the

disconnection of pay telephone service for not more than one year

for repeat violations of commission rules.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER I. DIRECTORY LISTINGS AND ASSISTANCE

Sec. 55.201. TERMS OF DIRECTORY LISTINGS AND ASSISTANCE. (a)

Each company that provides local exchange telephone service in

overlapping certificated areas shall negotiate the terms of

printed directory listings and directory assistance in those

areas.

(b) On complaint by the incumbent local exchange company or the

holder of a certificate of convenience and necessity, a

certificate of operating authority, or a service provider

certificate of operating authority, the commission may:

(1) resolve a dispute between the parties; and

(2) issue an order setting the terms of the directory listings

or directory assistance, if necessary.

(c) This section does not affect the authority of an incumbent

local exchange company to voluntarily conduct negotiations with

an applicant for a certificate of convenience and necessity, a

certificate of operating authority, or a service provider

certificate of operating authority.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.202. DIRECTORY PUBLISHED BY TELECOMMUNICATIONS UTILITY.

A telecommunications utility or an affiliate of that utility that

publishes a residential or business telephone directory that is

distributed to the public shall publish in the directory the name

of each state senator or representative who represents all or

part of the geographical area for which the directory contains

listings.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.203. DIRECTORY PUBLISHED BY PRIVATE PUBLISHER. (a) A

private for-profit publi


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Utilities-code > Title-2-public-utility-regulatory-act > Chapter-55-regulation-of-telecommunications-services

UTILITIES CODE

TITLE 2. PUBLIC UTILITY REGULATORY ACT

SUBTITLE C. TELECOMMUNICATIONS UTILITIES

CHAPTER 55. REGULATION OF TELECOMMUNICATIONS SERVICES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 55.001. GENERAL STANDARD. A public utility shall furnish

service, instrumentalities, and facilities that are safe,

adequate, efficient, and reasonable.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.002. COMMISSION AUTHORITY CONCERNING STANDARDS. The

commission, on its own motion or on complaint and after

reasonable notice and hearing, may:

(1) adopt just and reasonable standards, classifications, rules,

or practices a public utility must follow in furnishing a

service;

(2) adopt adequate and reasonable standards for measuring a

condition, including quantity and quality, relating to the

furnishing of a service;

(3) adopt reasonable rules for examining, testing, and measuring

a service; and

(4) adopt or approve reasonable rules, specifications, and

standards to ensure the accuracy of equipment, including meters

and instruments, used to measure a service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.003. RULE OR STANDARD. (a) A public utility may not

impose a rule except as provided by this title.

(b) A public utility may file with the commission a standard,

classification, rule, or practice the utility follows.

(c) The standard, classification, rule, or practice continues in

force until:

(1) amended by the utility; or

(2) changed by the commission as provided by this subtitle.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.004. LOCAL EXCHANGE COMPANY RULE OR PRACTICE CHANGE.

(a) To make a change in an incumbent local exchange company's

tariffed rules or practices that does not affect the company's

charges or rates, the company must file the proposed change with

the commission at least 35 days before the effective date of the

change. The commission may require the incumbent local exchange

company to provide to ratepayers appropriate notice as determined

by the commission.

(b) The commission, on complaint by an affected person or on its

own motion and after reasonable notice, may hold a hearing to

determine the propriety of a change proposed under this section.

Pending the hearing and decision, the commission may suspend the

change for not longer than 120 days after the date the change

would otherwise be effective. The commission shall approve, deny,

or modify the change before the period of suspension expires.

(c) In a proceeding under this section, the incumbent local

exchange company has the burden of proving the proposed change:

(1) is in the public interest; and

(2) complies with this title.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.005. UNREASONABLE PREFERENCE OR PREJUDICE CONCERNING

SERVICE PROHIBITED. In providing a service to persons in a

classification, a public utility may not:

(1) grant an unreasonable preference or advantage to a person in

the classification; or

(2) subject a person in the classification to an unreasonable

prejudice or disadvantage.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.006. DISCRIMINATION AND RESTRICTION ON COMPETITION. A

public utility may not:

(1) discriminate against a person who sells or leases equipment

or performs services in competition with the public utility; or

(2) engage in a practice that tends to restrict or impair that

competition.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.007. MINIMUM SERVICES. (a) The commission shall

require a holder of a certificate of convenience and necessity or

a certificate of operating authority to provide at the applicable

tariff rate, if any, to each customer, regardless of race,

national origin, income, or residence in an urban or rural area:

(1) single-party service;

(2) tone-dialing service;

(3) basic custom calling features;

(4) equal access for an interLATA interexchange carrier on a

bona fide request; and

(5) digital switching capability in an exchange on customer

request, provided by a digital switch in the exchange or by

connection to a digital switch in another exchange.

(b) Notwithstanding Subsection (a), an electing incumbent local

exchange company serving more than 175,000 but fewer than

1,500,000 access lines on January 1, 1995, shall install a

digital switch in each central office that serves an exchange of

fewer than 20,000 access lines.

(c) The commission may temporarily waive a requirement imposed

by Subsection (a) or (b) on a showing of good cause.

(d) The commission may not consider the cost of implementing

this section in determining whether an electing company is

entitled to:

(1) a rate increase under Chapter 58 or 59; or

(2) increased universal service funds under Subchapter B,

Chapter 56.

(e) Expired.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.008. IMPROVEMENTS IN SERVICE; INTERCONNECTING SERVICE.

The commission, after notice and hearing, may:

(1) order a public utility to provide specified improvements in

its service in a specified area if:

(A) service in the area is inadequate or substantially inferior

to service in a comparable area; and

(B) requiring the company to provide the improved service is

reasonable; or

(2) order two or more utilities to establish specified

facilities for interconnecting service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.009. INTRALATA CALLS. (a) If federal law prohibits a

local exchange company in this state from providing interLATA

telecommunications services, the local exchange companies in this

state designated or de facto authorized to receive a "0-plus" or

"1-plus" dialed intraLATA call are exclusively designated or

authorized to receive such a call.

(b) A telecommunications utility operating under a certificate

of operating authority or a service provider certificate of

operating authority is de facto authorized to receive a "0-plus"

or "1-plus" dialed intraLATA call on the date the utility

receives its certificate, to the extent the utility is not

restricted by Section 54.159.

(c) If federal law allows all local exchange companies to

provide interLATA telecommunications services, the commission

shall ensure that:

(1) a customer may designate a provider of the customer's choice

to carry the customer's "0-plus" and "1-plus" dialed intraLATA

calls; and

(2) equal access in the public network is implemented to allow

the provider to carry those calls.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.010. BILLING FOR SERVICE TO THE STATE. A

telecommunications utility providing service to the state,

including service to an agency in any branch of state government,

may not impose a fee, a penalty, interest, or any other charge

for delinquent payment of a bill for that service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.011. NOTICE OF IDENTITY OF INTEREXCHANGE CARRIER. (a)

A local exchange company shall print on the first page of each

bill sent to a customer of the local exchange company the name of

the customer's primary interexchange carrier if the company

provides billing services for that carrier.

(b) The bill must contain instructions on how the customer can

contact the commission if the customer believes that the named

carrier is not the customer's primary interexchange carrier.

(c) The commission may, for good cause, waive the billing

requirement prescribed by this section in exchanges served by

local exchange companies serving not more than 31,000 access

lines.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.04(b), eff. Sept.

1, 1999.

Sec. 55.012. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL

TELECOMMUNICATIONS SERVICE. (a) A provider of basic local

telecommunications service may not discontinue that service

because of nonpayment by a residential customer of charges for

long distance service. Payment shall first be allocated to basic

local telecommunications service.

(b) For purposes of allocating payment in this section, if the

provider of basic local telecommunications service bundles its

basic local telecommunications service with long distance service

or any other service and provides a discount for the basic local

telecommunications service because of that bundling, the rate of

basic local telecommunications service shall be the rate the

provider charges for stand-alone basic local telecommunications

service.

(c) Notwithstanding Subsection (a), the commission shall adopt

and implement rules, not later than January 1, 2000, to prevent

customer abuse of the protections afforded by this section. The

rules must include:

(1) provisions requiring a provider of basic local

telecommunications service to offer and implement, at the request

and expense of a long distance service provider, toll blocking

capability to limit a customer's ability to incur additional

charges for long distance services after nonpayment for long

distance services; and

(2) provisions regarding fraudulent activity in response to

which a provider may discontinue a residential customer's basic

local telecommunications service.

(d) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to establish a maximum

price that an incumbent local exchange company may charge a long

distance service provider to initiate the toll blocking

capability required to be offered under the rules adopted under

Subsection (c). The maximum price established under this

subsection shall be observed by all providers of basic local

telecommunications service in the incumbent local exchange

company's certificated service area. Notwithstanding Sections

52.102 and 52.152, the commission has all jurisdiction necessary

to enforce this section.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 5, eff. Aug. 30,

1999.

Sec. 55.013. LIMITATIONS ON DISCONTINUANCE OF BASIC LOCAL

TELECOMMUNICATIONS SERVICE. (a) A provider of basic local

telecommunications service may not discontinue that service

because of nonpayment by a residential customer of charges for

long distance service. Payment shall first be allocated to basic

local telecommunications service.

(b) For purposes of allocating payment in this section, if the

provider of basic local telecommunications service bundles its

basic local telecommunications service with long distance service

or any other service and provides a discount for the basic local

telecommunications service because of that bundling, the rate of

basic local telecommunications service shall be the rate the

provider charges for stand-alone basic local telecommunications

service.

(c) Notwithstanding Subsection (a), the commission shall adopt

and implement rules, not later than January 1, 2000, to prevent

customer abuse of the protections afforded by this section. The

rules must include:

(1) provisions requiring a provider of basic local

telecommunications service to offer and implement toll blocking

capability to limit a customer's ability to incur additional

charges for long distance services after nonpayment for long

distance services; and

(2) provisions regarding fraudulent activity in response to

which a provider may discontinue a residential customer's basic

local telecommunications service.

(d) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to establish a maximum

price that an incumbent local exchange company may charge a long

distance service provider to initiate the toll blocking

capability required to be offered under the rules adopted under

Subsection (c). The maximum price established under this

subsection shall be observed by all providers of basic local

telecommunications service in the incumbent local exchange

company's certificated service area. Notwithstanding Sections

52.102 and 52.152, the commission has all jurisdiction necessary

to enforce this section.

(e) A provider of basic local exchange telecommunications

service shall comply with the requirements of this section not

later than March 1, 2000.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 19, eff. Sept. 1,

1999.

Sec. 55.014. PROVISION OF ADVANCED TELECOMMUNICATIONS SERVICES.

(a) In this section, "advanced service" means any

telecommunications service other than residential or business

basic local exchange telephone service, caller identification

service, and customer calling features.

(b) This section applies to a company electing under Chapter 58

or a company that holds a certificate of operating authority or

service provider certificate of operating authority.

(c) Notwithstanding any other provision of this title, beginning

September 1, 2001, a company to which this section applies that

provides advanced telecommunications services within the

company's urban service areas, shall, on a bona fide retail

request for those services, provide in rural areas of this state

served by the company advanced telecommunications services that

are reasonably comparable to the advanced services provided in

urban areas. The company shall offer the advanced

telecommunications services:

(1) at prices, terms, and conditions that are reasonably

comparable to the prices, terms, and conditions for similar

advanced services provided by the company in urban areas; and

(2) within 15 months after the bona fide request for those

advanced services.

(d) Notwithstanding any other provision of this title, a company

to which this section applies shall, on a bona fide retail

request for those services, offer caller identification service

and custom calling features in rural areas served by the company.

The company shall offer the services:

(1) at prices, terms, and conditions reasonably comparable to

the company's prices, terms, and conditions for similar services

in urban areas; and

(2) within 15 months after the bona fide request for those

services.

(e) This section may not be construed to require a company to:

(1) begin providing services in a rural area in which the

company does not provide local exchange telephone service; or

(2) provide a service in a rural area of this state unless the

company provides the service in urban areas of this state.

(f) For purposes of this section, a company to which this

section applies is considered to provide services in urban areas

of this state if the company provides services in a municipality

with a population of more than 190,000.

(g) Notwithstanding any other provision of this title, the

commission has all jurisdiction necessary to enforce this

section.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 20, eff. Sept. 1,

1999.

Sec. 55.015. LIFELINE SERVICE. (a) The commission shall adopt

rules prohibiting a certificated provider of local exchange

telephone service from discontinuing basic network services

listed in Section 58.051 to a consumer who receives lifeline

service because of nonpayment by the consumer of charges for

other services billed by the provider, including interexchange

telecommunications service.

(b) The commission shall adopt rules providing for automatic

enrollment to receive lifeline service for eligible consumers.

The Texas Department of Human Services, on request of the

commission, shall assist in the adoption and implementation of

those rules. The commission and the Texas Department of Human

Services shall enter into a memorandum of understanding

establishing the respective duties of the commission and

department in relation to the automatic enrollment.

(b-1) The commission shall adopt rules requiring certificated

providers of local exchange telephone service to implement

procedures to ensure that all consumers are clearly informed both

orally and in writing of the existence of the lifeline service

program when they request or initiate service or change service

locations or providers. On or before June 1, 2006, the

commission shall enter into a memorandum of understanding with

the Health and Human Services Commission, and, to the maximum

extent feasible, housing authorities in the principal cities of

each metropolitan statistical area, to improve enrollment rates

in the lifeline service program.

(c) A certificated provider of local exchange telephone service

may block a lifeline service participant's access to all

interexchange telecommunications service except toll-free numbers

when the participant owes an outstanding amount for that service.

The provider shall remove the block without additional cost to

the participant on payment of the outstanding amount.

(d) A certificated provider of local exchange telephone service

shall offer a consumer who applies for or receives lifeline

service the option of blocking all toll calls or, if technically

capable, placing a limit on the amount of toll calls. The

provider may not charge the consumer an administrative charge or

other additional amount for the blocking service.

(d-1) A certificated provider of local exchange telephone

service shall provide access to lifeline service to a customer

whose income is not more than 150 percent of the applicable

income level established by the federal poverty guidelines or in

whose household resides a person who receives or has a child who

receives:

(1) Medicaid;

(2) food stamps;

(3) Supplemental Security Income;

(4) federal public housing assistance;

(5) Low Income Home Energy Assistance Program (LIHEAP)

assistance; or

(6) health benefits coverage under the state child health plan

under Chapter 62, Health and Safety Code.

(d-2) A certificated provider of local exchange telephone

service shall provide consumers who apply for or receive lifeline

service access to available vertical services or custom calling

features, including caller ID, call waiting, and call blocking,

at the same price as other consumers. Lifeline discounts shall

only apply to that portion of the bill that is for basic network

service.

(e) In this section, "lifeline service" means a retail local

service offering described by 47 C.F.R. Section 54.401(a), as

amended.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 21, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 9, eff. September 7, 2005.

Sec. 55.016. TELECOMMUNICATIONS BILLING. (a) The proliferation

of charges for separate services, products, surcharges, fees, and

taxes on a bill for telecommunications products or services has

increased the complexity of those bills to such an extent that in

some cases the bills have become difficult for customers to

understand.

(b) A bill from a local exchange company for telecommunications

products or services should be consistent with providing

customers sufficient information about the charges included in

the bill to understand the basis and source of the charges.

(c) To the extent permitted by law, a monthly bill from a local

exchange company for local exchange telephone service shall

clearly identify all charges including basic local service

charges, fees, carrier's charges, assessments, surcharges,

optional services, and taxes.

(d) Local exchange carriers shall annually file a copy of that

portion of their bill that has not been previously approved by

the commission for compliance review with this section.

(e) The commission shall have all necessary authority to enforce

this section.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 18, eff. Mar. 1,

2000. Amended by Acts 2001, 77th Leg., ch. 963, Sec. 1, eff. June

14, 2001. Renumbered from Sec. 55.012 by Acts 2001, 77th Leg.,

ch. 1420, Sec. 21.001(110), eff. Sept. 1, 2001.

Sec. 55.017. IDENTIFICATION REQUIRED. (a) A representative of

a telecommunications provider or a video or cable service

provider that has an easement in or a right-of-way over or

through real property must show proof of identification to the

owner of the real property when entering the property if

requested by the owner.

(b) This section does not apply to regularly scheduled service

readings or examinations.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 10, eff. September 7, 2005.

SUBCHAPTER B. EXTENDED AREA SERVICE

Sec. 55.021. EXTENDED AREA SERVICE. After notice and a hearing,

the commission may order one or more local exchange companies

that are dominant carriers to provide:

(1) mandatory extended area service in accordance with Section

55.022; or

(2) optional extended area service in accordance with Section

55.023.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.022. MANDATORY SERVICE. The commission may order

mandatory extended area service in a specified metropolitan area

if:

(1) there is a sufficient community of interest in the area; and

(2) the company can reasonably provide the service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.023. OPTIONAL EXTENDED AREA SERVICE. (a) The

commission may order optional extended area service in a

specified calling area if:

(1) each affected company and the representatives of at least

one political subdivision in the proposed calling area agree to

the service; and

(2) the proposed common calling area has a single, continuous

boundary.

(b) The commission may not adopt rules that diminish in any

manner the ability of an affected company or a political

subdivision to enter into joint agreements for optional extended

area service under this section.

(c) In this section, "political subdivision" means:

(1) a county;

(2) a municipality; or

(3) an unincorporated town or village that has 275 or more

access lines.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.024. CHARGE FOR EXTENDED AREA SERVICE. (a) An

incumbent local exchange company that provides mandatory two-way

extended area service to customers shall impose for that service

a separately stated monthly charge of $3.50 a line for a

residential customer and $7 a line for a business customer if, on

September 1, 1995, the company:

(1) served more than 1,000,000 access lines in this state; and

(2) imposed a separately stated monthly charge for mandatory

two-way extended area service of more than $3.50 a line for a

residential customer and more than $7 a line for a business

customer.

(b) The company shall recover all costs incurred and all loss of

revenue that results from imposition of the rates prescribed by

Subsection (a) in the manner prescribed by Section 55.048(c).

(c) The rate limitation prescribed by Subsection (a) does not

apply to a separately stated monthly charge for:

(1) extended area service in or into a metropolitan exchange; or

(2) extended metropolitan service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.025. HUNTING SERVICE. (a) A local exchange company

shall make available, at a reasonable tariffed rate, hunting

service from local exchange lines to extended metropolitan

service lines.

(b) The company may not require a customer to purchase

additional extended metropolitan service to obtain the hunting

service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER C. EXPANDED TOLL-FREE LOCAL CALLING AREAS

Sec. 55.041. DEFINITIONS. In this subchapter, "metropolitan

exchange," "local calling area of a metropolitan exchange," and

"exchange" have the meanings and boundaries assigned by the

commission on September 1, 1993.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.042. CONTIGUOUS EXCHANGE. The commission may expand a

toll-free local calling area into an exchange that is not in a

metropolitan exchange but is in a local calling area that is

contiguous to a metropolitan exchange that the commission

determines has a community of interest with the exchange for

which a petition is filed under this subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.043. SPLITTING EXCHANGES PROHIBITED. Notwithstanding

any other provision of this subchapter, the commission may not

split a petitioning or requested exchange in establishing a

toll-free local calling area.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.044. EXEMPTION. (a) The commission may not require an

incumbent local exchange company serving the petitioning or

requested exchange to expand the company's toll-free local

calling area under this subchapter if:

(1) the incumbent local exchange company has fewer than 10,000

access lines;

(2) the petitioning or requested exchange is served by a

telephone cooperative corporation;

(3) extended area service or extended metropolitan service is

available between the exchanges;

(4) the petitioning or requested exchange is a metropolitan

exchange; or

(5) the commission determines that the company has shown that to

serve the area is not geographically or technologically feasible.

(b) To promote the wide dispersion of pay telephones, the

commission may:

(1) exempt pay telephones from this subchapter; or

(2) change the rates charged for calls from pay telephones.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.045. ELIGIBILITY TO PETITION. The telephone subscribers

of an incumbent local exchange company exchange that serves not

more than 10,000 access lines may petition the commission for

expansion of the company's toll-free local calling area if:

(1) the petitioning exchange's central switching office is

located within 22 miles, using vertical and horizontal geographic

coordinates, of the central switching office of the exchange

requested for expanded local calling service; or

(2) the petitioning exchange's central office is not more than

50 miles from the central office of the exchange requested for

expanded local calling service and the exchanges share a

community of interest.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.046. PETITION REQUIREMENTS. (a) A petition under this

subchapter must be signed by a number of the exchange's

subscribers equal at least to the lesser of 100 of the exchange's

subscribers or five percent of the exchange's subscribers.

(b) An exchange that petitions under Section 55.045(2) must

demonstrate in the petition that the exchange shares a community

of interest with the requested exchange.

(c) For purposes of this section, the relationships between

exchanges that create a community of interest include:

(1) a relationship because of schools, hospitals, local

governments, or business centers; or

(2) other relationships that would make the unavailability of

expanded local calling service a hardship for the residents of

the area.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.047. BALLOTING AND CONSIDERATION. (a) If the

commission receives a petition that complies with this

subchapter, the commission shall order the incumbent local

exchange company to provide ballots to the subscribers in the

petitioning exchange.

(b) The commission shall consider the request for expansion of

the toll-free local calling area if at least 70 percent of the

subscribers who vote do so in favor of the expansion.

(c) The commission by rule shall provide for an expedited

hearing on the issue of expansion.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.048. CHARGES. (a) The incumbent local exchange company

shall recover all costs incurred and all loss of revenue from an

expansion of a toll-free local calling area under this subchapter

through a request other than a revenue requirement showing by

imposing a monthly fee under Subsection (b) or (c), or both.

(b) The company may impose a monthly fee against each

residential and business customer in the petitioning exchange.

The fee may not exceed $3.50 a line for a residential customer

and $7 a line for a business customer unless the customer's

toll-free local calling area includes more than five exchanges.

The company may impose an additional monthly fee of $1.50 for

each exchange in excess of five. This subsection applies

regardless of the number of petitions required to obtain access

to the exchanges. A company may impose a fee under this

subsection only until the company's next general rate case.

(c) The company may impose a monthly fee against each of the

company's local exchange service customers in this state. This

fee is in addition to the company's local exchange rates.

(d) The company may not recover regulatory case expenses under

this subchapter by imposing a surcharge on the subscribers of the

petitioning exchange.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER D. OPERATOR SERVICE PROVIDERS

Sec. 55.081. DEFINITION. In this subchapter, "operator service"

means a service using live operator or automated operator

functions to handle telephone service such as toll calling using

collect, third-number billing, and calling card services. The

term does not include a call for which the called party has

arranged to be billed (800 service).

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.082. APPLICABILITY. Except as provided by Section

55.088, this subchapter applies only to a telecommunications

utility that is not a dominant carrier.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.083. RULES AND PROCEDURES. (a) The commission may

adopt rules and establish procedures to enforce and implement

this subchapter.

(b) A rule adopted under this subchapter must be

nondiscriminatory and designed to promote competition that

facilitates consumer choice.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.084. INFORMATION DISPLAYED ON PUBLIC USE TELEPHONE. (a)

An operator service provider shall furnish each entity with

which it contracts to provide operator service a sticker, card,

or other form of information approved by the commission for each

telephone that:

(1) has access to the service; and

(2) is intended for use by the public.

(b) The commission may grant the owner of a telephone approval

for an alternative form of information.

(c) The information must state:

(1) the provider's name;

(2) that the operator service provider will provide rate

information on a caller's request;

(3) that a caller, on the caller's request, will be informed of

the method of access to the local exchange carrier operator; and

(4) that a complaint about the service may be made to the

provider or to the commission at the designated telephone number.

(d) The operator service provider shall by contract require an

entity receiving information to display the information on or

near each telephone for which the operator service provider is

required to furnish the information.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.085. CONNECTION ANNOUNCEMENT. Before connecting a call,

the operator service provider shall:

(1) announce the provider's name; and

(2) at the caller's request, quote the rate and any other fee or

surcharge that applies to the call and is charged by the

provider.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.086. INFORMATION REQUIRED ON ACCESS TO LOCAL EXCHANGE

COMPANY OPERATOR. (a) An operator service provider, on a

caller's request, shall inform the caller of the method of access

to the local exchange carrier operator serving the exchange from

which the call is made.

(b) A charge may not be made for information provided under this

section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.087. ACCESS TO LOCAL EXCHANGE COMPANY AND OTHER

UTILITIES REQUIRED. (a) The commission by rule shall require an

operator service provider to include in its contract with each

entity through which it provides operator service a provision

that requires each telephone subscribed to its service to allow

access to:

(1) the local exchange carrier operator serving the exchange

from which the call is made; and

(2) other telecommunications utilities.

(b) To prevent fraudulent use of its service, an operator

service provider or an entity through which it provides operator

service may block the access described by Subsection (a) by

obtaining a waiver for this purpose from the commission or the

Federal Communications Commission. The commission by rule shall

establish the procedure and criteria for obtaining a waiver from

the commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.088. ACCESS TO LIVE OPERATOR REQUIRED. (a) A dominant

or nondominant telecommunications utility that provides operator

service shall ensure that a caller has access to a live operator

at the beginning of a live or mechanized operator-assisted call

through a method designed to be easily and clearly understandable

and accessible to the caller.

(b) A telecommunications utility described by Subsection (a)

shall submit to the commission for review the method by which the

utility will provide access to a live operator.

(c) This section applies regardless of the method by which the

telecommunications utility provides operator service.

(d) This section does not apply to a telephone located in a

prison or jail facility.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.089. COMMISSION MAY INVESTIGATE AND ACT ON VIOLATION.

(a) If the commission determines that an operator service

provider has violated or is about to violate this subchapter, the

commission, after notice and evidentiary hearing, may take action

to stop, correct, or prevent the violation.

(b) The commission may investigate a complaint that it receives

concerning an operator service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER E. CALLER IDENTIFICATION SERVICE

Sec. 55.101. DEFINITIONS. In this subchapter:

(1) "Caller identification information" means any information

that may be used to identify the specific originating number or

originating location of a wire or electronic communication

transmitted by a telephone, including the telephone listing

number or the name of the customer from whose telephone a

telephone number is dialed.

(2) "Caller identification service" means a service that

provides caller identification information to a device that can

display the information.

(3) "Per-call blocking" means a telecommunications service that

prevents caller identification information from being transmitted

to a called party on an individual call when the calling party

affirmatively acts to prevent the transmission.

(4) "Per-line blocking" means a telecommunications service that

prevents caller identification information from being transmitted

to a called party on each call unless the calling party

affirmatively acts to permit the transmission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.102. APPLICABILITY. (a) This subchapter applies only

to the provision of caller identification service.

(b) This subchapter does not apply to:

(1) an identification service that is used in a limited system,

including a central office based PBX-type system;

(2) information that is used on a public agency's emergency

telephone line or on a line that receives the primary emergency

telephone number (911);

(3) information exchanged between telecommunications utilities,

enhanced service providers, or other entities that is necessary

for the setting up, processing, transmission, or billing of

telecommunications or related services;

(4) information provided in compliance with applicable law or

legal process; or

(5) an identification service provided in connection with a 700,

800, or 900 access code telecommunications service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.103. PROVISION OF SERVICE. (a) A telecommunications

utility may offer caller identification services under this

subchapter only if the utility obtains written authorization from

the commission.

(b) A commercial mobile service provider may offer caller

identification services in accordance with Sections 55.104,

55.105, 55.106, 55.1065, and 55.107.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(a), eff.

Sept. 1, 1999.

Sec. 55.104. USE OF INFORMATION. (a) A person may not use a

caller identification service to compile and sell specific local

call information without the affirmative approval of the

originating telephone customer.

(b) This section does not prohibit a provider of caller

identification service from:

(1) verifying network performance or testing the caller

identification service;

(2) compiling, using, and disclosing aggregate caller

identification information; or

(3) complying with applicable law or legal process.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.105. PER-CALL BLOCKING. Except as provided by Section

55.1065, the commission shall require that a provider of caller

identification service offer free per-call blocking to each

telephone subscriber in the specific area in which the service is

offered.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(b), eff.

Sept. 1, 1999.

Sec. 55.106. PER-LINE BLOCKING. (a) Except as provided by

Section 55.1065, the commission shall require that a provider of

caller identification service offer free per-line blocking to a

particular customer if the commission receives from the customer

written certification that the customer has a compelling need for

per-line blocking.

(b) A provider who is ordered to offer per-line blocking under

this section shall notify the customer by mail of the date the

blocking will begin.

(c) If a customer removes and later reinstates the per-line

block, the provider may assess a service order charge in an

amount approved by the commission for the provider's

administrative expenses relating to the reinstatement.

(d) The commission may impose a fee or assessment on a provider

in an amount sufficient to cover the additional expenses the

commission incurs in implementing the customer certification

provisions of this section.

(e) Information received under this section by the commission or

by a provider is confidential and may be used only to administer

this section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(c), eff.

Sept. 1, 1999.

Sec. 55.107. LIMITATION ON COMMISSION AUTHORITY. The commission

may prescribe in relation to blocking only a requirement

authorized by Sections 55.105, 55.106, and 55.1065.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(e), eff.

Sept. 1, 1999.

Sec. 55.109. IMPLEMENTATION OF PANEL RECOMMENDATIONS. The

commission may implement the recommendations of the Caller ID

Consumer Education Panel and interested parties to the extent

consistent with the public interest.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.110. REPORT OF BLOCKING FAILURE. (a) A provider of

caller ID services who becomes aware of the failure of per-call

or per-line blocking to block identification of a customer shall

report that failure to the commission, the Caller ID Consumer

Education Panel, and the customer whose identification was not

blocked.

(b) The provider shall make a reasonable effort to notify the

customer within 24 hours after the provider becomes aware of the

failure. The provider is not required to notify the customer if

the customer reported the failure.

(c) In this section, "caller ID service" means a service that

permits the called party to determine the identity, telephone

number, or address of the calling party. The term does not

include 911 services.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER F. AUTOMATIC DIAL ANNOUNCING DEVICES

Sec. 55.121. DEFINITION. In this subchapter, "automated dial

announcing device" means automated equipment used for telephone

solicitation or collection that can:

(1) store telephone numbers to be called or produce numbers to

be called through use of a random or sequential number generator;

and

(2) convey, alone or in conjunction with other equipment, a

prerecorded or synthesized voice message to the number called

without the use of a live operator.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.122. EXEMPTIONS. This subchapter does not apply to the

use of an automated dial announcing device:

(1) to make a call relating to an emergency or a public service

under a program developed or approved by the emergency management

coordinator of the county in which the call is received; or

(2) by a public or private primary or secondary school system to

locate or account for a truant student.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.123. NOTICE OF USE OF DEVICE TO TELECOMMUNICATIONS

UTILITY. A person may not use an automated dial announcing

device to make a telephone call in which the device plays a

recorded message when the connection is completed unless the

person gives to each telecommunications utility over whose system

the device is to be used written notice specifying the type of

device to be used.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.124. RANDOM OR SEQUENTIAL NUMBER CALLING. A person may

not use an automated dial announcing device for random number

dialing or to dial numbers determined by successively increasing

or decreasing integers if the person uses the device to make a

telephone call in which the device plays a recorded message when

the connection is completed.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.125. HOURS WHEN USE PROHIBITED. (a) A person may not

use an automated dial announcing device to make a telephone

solicitation call terminating in this state in which the device

plays a recorded message when the connection is completed if the

call is made:

(1) before noon or after 9 p.m. on a Sunday; or

(2) before 9 a.m. or after 9 p.m. on a weekday or a Saturday.

(b) A person may not use an automated dial announcing device to

make a telephone collection call terminating in this state in

which the device plays a recorded message when the connection is

completed if the call is made at an hour at which collection

calls are prohibited under the federal Fair Debt Collection

Practices Act (15 U.S.C. Section 1692 et seq.).

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.126. DEVICE DISCONNECTION. A person may not use an

automated dial announcing device to make a telephone call in

which the device plays a recorded message when the connection is

completed unless the device disconnects from the called person's

line not later than five seconds after the call is terminated by

either party. If the device cannot disconnect during that period,

a live operator must introduce the call and receive the called

person's oral consent before beginning a prerecorded or

synthesized voice message.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 667, Sec. 2, eff. Sept. 1,

1999.

Sec. 55.127. CONTENTS OF RECORDED MESSAGE. (a) A person may

not use an automated dial announcing device to make a telephone

call in which the device plays a recorded message when the

connection is completed unless the recorded message states during

the first 30 seconds of the call:

(1) the nature of the call;

(2) the identity of the person, company, or organization making

the call; and

(3) the telephone number from which the call is made.

(b) In addition to the requirements prescribed by Subsection

(a), a call during which a cross-promotion or reference to a

pay-per-call information service is made must include a statement

of:

(1) the fact that a caller who makes a call to a pay-per-call

information service's telephone number will be charged for that

call;

(2) the amount of the flat-rate or cost-per-minute charge the

caller will incur or the amount of both if both charges will be

incurred; and

(3) the estimated amount of time required to receive all the

information offered by the service during a call.

(c) Subsection (a) does not apply to the use of a device if the

device is used:

(1) for debt collection purposes in compliance with applicable

federal law and regulations; and

(2) by a live operator for automated dialing or hold

announcement purposes.

(d) In this section, "pay-per-call information service" means a

service that routinely delivers, for a predetermined and

sometimes time-sensitive fee, a prerecorded or live message or

interactive program after the caller dials a specified 900 or 976

number.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.128. DURATION OF RECORDED MESSAGE. A person may not use

an automated dial announcing device to make for solicitation

purposes a telephone call in which the device plays a recorded

message when the connection is completed unless:

(1) the recorded message is shorter than 30 seconds; or

(2) the device has the technical capacity to:

(A) recognize a telephone answering device on the called

person's line; and

(B) terminate the call within 30 seconds.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(f), eff.

Sept. 1, 1999.

Sec. 55.129. PERMIT REQUIRED. A person may not use an automated

dial announcing device to make a telephone call in which the

device plays a recorded message when the connection is completed

unless the person has a permit under Section 55.130.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.130. PERMIT. (a) A person may not use an automated

dial announcing device without a permit issued by the commission.

(b) An applicant for an original permit must submit to the

commission an application on a form that:

(1) is prescribed by the commission; and

(2) contains:

(A) the telephone number of each automated dial announcing

device that the person will use; and

(B) the physical address from which each automated dial

announcing device will operate.

(c) An original permit is valid for one year and may be renewed

annually by filing with the commission the information required

by Subsection (b)(2).

(d) An application for an original permit or a filing required

for the renewal of the permit must be accompanied by the

appropriate fee prescribed by Section 55.131.

(e) In determining whether to deny an application for an

original permit or renewal of the permit, the commission shall

consider the compliance record of the owner or operator of the

automated dial announcing device and may deny the application

based on that record.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.131. PERMIT FEE. (a) The commission shall prescribe a

fee for an original permit or renewal of a permit.

(b) The amount of the original permit fee must be reasonable and

cover the enforcement cost to the commission but may not exceed

$500.

(c) The fee for renewal of a permit may not exceed $100.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.132. NOTIFICATION OF CHANGE. (a) The owner or operator

of an automated dial announcing device shall notify the

commission if the telephone number of the device or the physical

address from which the device operates changes.

(b) The owner or operator shall give the notice by certified

mail not later than the 48th hour before the hour the device

begins operating with the new telephone number or at the new

address.

(c) If the owner or operator of a device fails to give notice as

required by Subsection (b), the person's permit is invalid.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.133. NOTIFICATION OF LOCAL EXCHANGE COMPANY. The

commission shall provide to a local exchange company on request a

copy of a permit issued under this subchapter and of any change

relating to the permit.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.134. COMPLAINTS AND ENFORCEMENT. (a) The commission

shall:

(1) investigate complaints relating to the use of an automated

dial announcing device; and

(2) enforce this subchapter.

(b) A local exchange company that receives a complaint relating

to the use of an automated dial announcing device shall send the

complaint to the commission. The commission by rule shall

prescribe the procedures and requirements for sending a complaint

to the commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.135. REVOCATION OF PERMIT. The commission may revoke a

person's permit if the person fails to comply with this

subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.136. DISCONNECTION OF SERVICE. (a) If the commission

or a court determines that a person has violated this subchapter,

the commission or court shall require a telecommunications

utility to disconnect service to the person.

(b) The telecommunications utility may reconnect service to the

person only on a determination by the commission that the person

will comply with this subchapter.

(c) Not later than the third day before the date of the

disconnection, the telecommunications utility shall give notice

to the person using the device of its intent to disconnect

service. However, if the device is causing network congestion or

blockage, the notice may be given on the day before the date of

disconnection.

(d) A telecommunications utility, without an order by the

commission or a court, may disconnect or refuse to connect

service to a person using or intending to use an automated dial

announcing device if the utility determines that the device would

cause or is causing network harm.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.137. ADMINISTRATIVE PENALTY. (a) The commission may

impose an administrative penalty against a person who owns or

operates an automated dial announcing device in violation of this

subchapter or a commission rule or order.

(b) The penalty for a violation may be in an amount not to

exceed $1,000 for each day or portion of a day during which the

device operates in violation of this subchapter or a commission

rule or order.

(c) The administrative penalty is civil in nature and is in

addition to any other penalty provided by law.

(d) The commission by rule shall prescribe the procedures for

assessing an administrative penalty under this section. The

procedures must require proper notice and hearing in accordance

with Chapter 2001, Government Code.

(e) A person may appeal the final order of the commission under

Chapter 2001, Government Code. The substantial evidence rule

applies on appeal.

(f) The proceeds of administrative penalties collected under

this section shall be deposited to the credit of the commission.

The commission shall use the proceeds to enforce this subchapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.05(g), eff.

Sept. 1, 1999.

Sec. 55.138. CRIMINAL PENALTY. (a) A person commits an offense

if the person owns or operates an automated dial announcing

device that the person knows is operating in violation of this

subchapter.

(b) An offense under this section is a Class A misdemeanor.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER H. PAY TELEPHONES

Sec. 55.171. DEFINITION. In this subchapter, "provider" means

an entity that provides pay telephone service, including:

(1) an incumbent local exchange company; and

(2) a subscriber to a customer-owned pay telephone service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.172. LIMITATION. This subchapter prescribes the limits

of:

(1) the right of a provider to set the provider's rates and

charges for pay telephone services; and

(2) the commission's authority over the pay telephone service

rates of an incumbent local exchange company.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.173. REGISTRATION. (a) A person may not provide pay

telephone service in this state unless the person is registered

with the commission.

(b) This section does not apply to a provider who holds a

certificate of convenience and necessity.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.1735. CHARGE FOR PAY PHONE ACCESS LINE. The charge or

surcharge a local exchange company imposes for an access line

used to provide pay telephone service in an exchange may not

exceed the amount of the charge or surcharge the company imposes

for an access line used for regular business purposes in that

exchange.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 11, eff. September 7, 2005.

Sec. 55.174. PROHIBITION ON CHARGE FOR CERTAIN CALLS. A

provider may not charge a person making a call on a pay telephone

for:

(1) local directory assistance; or

(2) a call made under Chapter 771 or 772, Health and Safety

Code.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.175. CHARGE FOR LOCAL CALLS. (a) The commission shall

establish the limit on the amount a provider may charge for a pay

telephone coin sent-paid call in the local exchange company's

toll-free calling area.

(b) The commission may establish a statewide ceiling on the

amount a provider may charge for a local pay telephone call that

is:

(1) collect;

(2) operator assisted; or

(3) paid by credit card or calling card.

(c) The commission may not establish the ceiling under

Subsection (b) at an amount that is less than the applicable

local rates for such a call imposed by any of the four largest

interexchange telecommunications carriers operating in this

state.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.176. CHARGE FOR 800-TYPE CALLS. (a) A provider may

charge at a pay telephone a fee of not more than 25 cents for

initiating an 800-type call.

(b) A provider may impose the fee only if:

(1) the pay telephone is registered with the commission; and

(2) the provider certifies that the pay telephone complies with

commission rules regarding the provision of pay telephone

service.

(c) Subsection (b) does not apply to a local exchange company

pay telephone.

(d) A provider may not impose the fee if imposition is

inconsistent with federal law.

(e) A provider may not impose the fee for a:

(1) local call;

(2) 911 call;

(3) local directory assistance call; or

(4) call that is covered by the Telephone Operator Consumer

Services Improvement Act of 1990 (47 U.S.C. Section 226).

(f) A provider who imposes the fee must post on each pay

telephone notice that the fee will be charged. The provider must

post the notice:

(1) in plain sight of the user; and

(2) in a manner consistent with existing commission requirements

for posting information.

(g) The commission may not impose on a local exchange company

the duty or obligation to:

(1) record the use of pay telephone service;

(2) bill or collect for the use of the pay telephone; or

(3) remit to the provider the fee authorized by this section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.177. CHARGE FOR CREDIT CARD, CALLING CARD, OR

OPERATOR-ASSISTED CALLS. (a) A provider may not impose for a

credit card, calling card, or live or automated operator-assisted

call a rate or charge that is greater than the authorized rates

and charges published on March 18, 1995, in the eight newspapers

having the largest circulation in this state.

(b) The published rates may not be changed.

(c) This section does not apply to a local exchange company.

Chapter 58 governs the pay telephone rates of an incumbent local

exchange company that elects incentive regulation under that

chapter.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.178. NOTICE OF INABILITY TO RECEIVE CALLS. (a) A

provider may not display the telephone number of a pay telephone

that cannot receive telephone calls.

(b) A provider shall place in a conspicuous location on each pay

telephone that cannot receive telephone calls a notice stating in

letters one-fourth inch high: "THIS TELEPHONE CANNOT RECEIVE

TELEPHONE CALLS."

(c) A provider that violates this section or a rule or order

adopted by the commission under this section is subject to a

civil penalty as provided by Section 15.028 unless the provider

takes corrective action to comply with this section or the rule

or order not later than the 14th day after the date the provider

receives written notice of the violation.

(d) The commission has jurisdiction over a provider to the

extent necessary to enforce this section regardless of whether a

provider is a telecommunications utility regulated under this

title.

(e) The commission may establish procedures to enforce this

section.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.179. INFORMATION REQUIREMENTS. (a) The commission by

rule may prescribe the information that must be posted on a pay

telephone.

(b) A commission rule may not require a provider or an affiliate

of a provider to police compliance by another provider with the

commission's rules.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.180. VIOLATIONS. The commission may order the

disconnection of pay telephone service for not more than one year

for repeat violations of commission rules.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER I. DIRECTORY LISTINGS AND ASSISTANCE

Sec. 55.201. TERMS OF DIRECTORY LISTINGS AND ASSISTANCE. (a)

Each company that provides local exchange telephone service in

overlapping certificated areas shall negotiate the terms of

printed directory listings and directory assistance in those

areas.

(b) On complaint by the incumbent local exchange company or the

holder of a certificate of convenience and necessity, a

certificate of operating authority, or a service provider

certificate of operating authority, the commission may:

(1) resolve a dispute between the parties; and

(2) issue an order setting the terms of the directory listings

or directory assistance, if necessary.

(c) This section does not affect the authority of an incumbent

local exchange company to voluntarily conduct negotiations with

an applicant for a certificate of convenience and necessity, a

certificate of operating authority, or a service provider

certificate of operating authority.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.202. DIRECTORY PUBLISHED BY TELECOMMUNICATIONS UTILITY.

A telecommunications utility or an affiliate of that utility that

publishes a residential or business telephone directory that is

distributed to the public shall publish in the directory the name

of each state senator or representative who represents all or

part of the geographical area for which the directory contains

listings.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 55.203. DIRECTORY PUBLISHED BY PRIVATE PUBLISHER. (a) A

private for-profit publi