HBA-TYH S.B. 1020 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1020
By: Shapleigh
State Affairs
4/27/1999
Engrossed



BACKGROUND AND PURPOSE 

Texas currently has a large number of consumers who purchase "prepaid
calling cards" which give consumers access to telephone services up to the
dollar amount on the card. However, there is often no way for the consumer
to determine the per-minute rate, minimum rate, or per-call fees associated
with the card.  

S.B. 1020 authorizes the Public Utility Commission of Texas (commission),
by rule, to prescribe standards regarding the information that a prepaid
calling card company is required to disclose to customers in relation to
the rates and terms of service for prepaid calling services offered in this
state. This bill also provides that a violation of a rule adopted by the
commission is subject to enforcement.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Public Utility Commission of Texas
in SECTION 1 (Section 55.253, Utilities Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter J, Chapter 55, Utilities Code, by adding
Section 55.253, as follows: 

Sec. 55.253. TELEPHONE PREPAID CALLING SERVICES. (a) Defines "prepaid
calling card company" and "prepaid calling service" in this section.  

(b) Authorizes the Public Utility Commission of Texas (commission), by
rule, to prescribe standards regarding the information that a prepaid
calling card company is required to disclose to customers in relation to
the rates and terms of service for prepaid calling services offered in this
state.  

(c) Sets forth that the commission is granted all necessary jurisdiction to
adopt rules under this section and to enforce those rules and this section.

(d) Provides that a violation of a rule adopted under this chapter is
subject to enforcement under Subchapter B (Enforcement and Penalties),
Chapter 15 (Judicial Review, Enforcement, and Penalties), Utilities Code.  

SECTION 2.Emergency clause.
  Effective date: upon passage.