HBA-EDN H.B. 1561 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1561
By: Chavez
State Affairs
2/23/2001
Introduced



BACKGROUND AND PURPOSE 

There is currently a prevalence of prepaid calling card companies (company)
stemming from the growing number of consumers using calling cards.   Many
of these consumers may  be unaware of what recourse is available to them if
they want to register a complaint relating to a company or its practices
with the Public Utility Commission (commission).  House Bill 1561 requires
companies to print the commission's toll-free customer hotline number on
the calling card and prohibits a company that is not registered with the
commission from operating in this state. 

RULEMAKING AUTHORITY

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

ANALYSIS

House Bill 1561 amends the Utilities Code to prohibit a person from
operating as a prepaid calling card company (company) in this state unless
the company is registered with the Public Utility Commission (commission).
The bill provides that the commission, by rule, shall require a company to
print on each prepaid calling card the commission's toll-free customer
hotline.  The bill provides that the commission is granted all necessary
jurisdiction to adopt rules to require registration and to enforce that
registration. Failure to register is subject to enforcement and may result
in an assessment of administrative penalties. H.B. 1561 requires a company
to register with the commission not later than January 1, 2002.     

EFFECTIVE DATE

September 1, 2001.