re necessary to address the impact of Senate Bill 5 on the commissions
telecommunications right-of-way rules under Subchapter R, Provisions Relating to Municipal
Regulation and Rights-of-way Management. Additional amendments to �26.465 are also
necessary to remove outdated reporting deadlines and reporting requirements.

Senate Bill 5 amended �283.002, of the Local Government Code, by amending subsection (2)
and adding subsection (7), which resulted in an expanded definition of the term certificated
telecommunications provider. The commission is amending �26.461 and �26.465 to implement
this amendment. SB 5 also amended the Public Utility Regulatory Act (PURA) by adding
�55.1735, relating to Charge for Pay Phone Access Line. The commission is amending �26.465,
relating to Methodology for Counting Access Lines and Reporting Requirements for Certificated
Telecommunications Provides, to clarify that payphones lines are classified as Category 2 access
line. Finally, the commission is deleting �26.465(g), relating to reporting procedures and
requirements, as the deadlines regarding initial reporting in that section are no longer relevant.
PROJECT NO. 31973
PROPOSAL FOR PUBLICATION
PAGE 2 OF 14
Elango Raj Rajagopal, Senior Policy Analyst, Infrastructure and Reliability Division, and
Andrew Kang, Staff Attorney, Legal Division, have determined that for each year of the first
five-year period the proposed amended sections are in effect, there will be no fiscal implications
for state government as a result of enforcing or administering the section.

Mr. Rajagopal and Mr. Kang have determined that for each year of the first five years the
proposed amended sections are in effect, the public benefit anticipated as a result of enforcing
these sections will be an equitable assessment of municipal access line fees from certificated
telecommunications providers and voice service providers in a technology neutral manner. In
doing so, the amendments recognize the changes in telecommunication technology.

Mr. and Mr. Kang have determined that there will be no adverse economic effect on small
businesses or micro-businesses as a result of enforcing this section. There is some anticipated
economic cost to persons who are required to comply with the amended sections as proposed.
However, the public benefit of imposing municipal fees in a non-discriminatory manner should
outweigh those costs.

Mr. Rajagopal and Mr. Kang have also determined that for each year of the first five years the
proposed section is in effect there should be no effect on a local economy, and therefore no local
employment impact statement is required under �2001.022 of the Administrative Procedure Act
(APA).
PROJECT NO. 31973
PROPOSAL FOR PUBLICATION
PAGE 3 OF 14
The commission staff will conduct a public hearing on this rulemaking, if interested parties
request a hearing pursuant to �2001.029 of the APA, or if a public hearing is deemed necessary
by commission staff. The request for a public hearing must be received within 20 days after
publication.

Comments on the proposed amendments may be submitted to the Filing Clerk, Public Utility
Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-
3326, within 30 days after publication. Reply comments, if any, are due 45 days from the date of
publication. Sixteen copies of comments to the proposed amendments are required to be filed
pursuant to �22.71(c) of the commissions rules. Comments should be organized in a manner
consistent with the organization of the proposed rules. The commission invites specific
comments regarding the costs associated with, and benefits that will be gained by,
implementation of the proposed amended sections. The commission will consider the costs and
benefits in deciding whether to adopt the amended sections. In addition, staff seeks comments
from interested parties on whether the proposed definition of voice service in �26.465 should
also include a reference to 911 capabilities as suggested by the State of Texas as follows:
Voice services would mean services using a physical voice grade telecommunications
connection or the cable or broadband transport facilities, or any combination of these
facilities, between an end user customers premises and a service providers network that,
when the digits 9-1-1 are dialed, provides the end user customer access to a public safety
answering point through a permissible interconnection to the dedicated 9-1-1 network.
All comments should refer to Project Number 31973.
PROJECT NO. 31973
PROPOSAL FOR PUBLICATION
PAGE 4 OF 14
These amendments are proposed under the PURA �14.002, which provides the Public Utility
Commission with the authority to make and enforce rules reasonably required in the exercise of
its powers and jurisdiction. These amended sections are also proposed under the Texas Local
Government Code ��283.056(c)(3) and 283.058, which grant the commission the jurisdiction
over municipalities, certificated telecommunications providers, and voice service providers,
necessary to enforce Chapter 283 and to ensure that all other legal requirements are enforced in a
competitively neutral, non-discriminatory, and reasonable manner. The amendments are
necessary to implement Texas Local Government Code �283.002(2) and (7).

Cross Reference to Statutes: Public Utility Regulatory Act �14.002 and Texas Local Government
Code ��283.056, 283.058, 283.002(2) and (7). PROJECT NO. 31973
PROPOSAL FOR PUBLICATION
PAGE 5 OF 14
�26.461. Access Line Categories.
(a)-(b) (No change.)

(c)
Definitions. The following words and terms when used in this subchapter, shall have the
following meaning, unless the context clearly indicates otherwise.
(1)
(No change.)
(2)
Certificated telecommunications provider (CTP) A person who has been
issued a certificate of convenience and necessity, certificate of operating
authority, or service provider certificate of operating authority by the commission
to offer local exchange telephone service or a person who provides voice service.
(3)-(5) (No change.)
(6)
Voice service Voice communications services provided through wireline
facilities located at least in part in the public right-of-way, without regard to the
delivery technology, including Internet protocol technology. The term does not
include voice service provided by a commercial mobile service provider as
defined by 47 U.S.C. Section 332(d).

(d)
Access line categories. There shall be three categories of access lines. The three
categories shall be as follows:
(1)
Category 1 shall include both analog and digital residential switched access lines
and any residential voice service. It shall also include point-to-point private lines,
whether residential or non-residential, only to the extent such lines provide
burglar alarm or other similar security services. PROJECT NO. 31973
PROPOSAL FOR PUBLICATION
PAGE 6 OF 14
(2)
Category 2 shall include all analog and digital non-residential switched access
lines and any non-residential voice service.
(3) (No
change.) PROJECT NO. 31973
PROPOSAL FOR PUBLICATION
PAGE 7 OF 14
�26.465. Methodology for Counting Access Lines and Reporting Requirements for
Certificated Telecommunications Providers.

(a)-(b) (No change.)

(c)
Definitions. The following words and terms when used in this section, shall have the
following meaning, unless the context clearly indicates otherwise.
(1) (No
change.)
(2)
Transmission path A path within the transmission media that allows the
delivery of switched local exchange service or provides a voice service.
(A)-(B)(No change.)
(C)
Services that constitute vertical features of a switched local exchange
service or a voice service, such as call waiting, caller-ID, etc., that do not
require a separate switched path, do not constitute a transmission path.
(D)
(No change.)
(E)
Packet voice services, without regard to the delivery technology, switched
or not, and including Internet protocol technology, shall constitute a single
transmission path.
(3)
Voice service voice communications services provided through wireline
facilities located at least in part in the public rights-of-way, without regard to the
delivery technology, including Internet protocol technology. The term does not
include voice service provided by a commercial mobile service provider as
defined by 47 U.S.C. Section 332 (d).
(4)(3) Wireless provider A provider of commercial mobile service as defined by
�332(d), Communications Act of 1934 (47 U.S.C. �151 et seq.), Federal PROJECT NO. 31973
PROPOSAL FOR PUBLICATION
PAGE 8 OF 14
Communications Commission rules, and the Omnibus Budget Reconciliation Act
of 1993 (Public Law 103-66).

(d)
Methodology for counting access lines. A CTPs access line count shall be the sum of
all lines counted pursuant to paragraphs (1), (2), and (3), and (4) of this subsection, and
shall be consistent with subsections (e), (f) and (g) of this section.
(1)-(3) (No change.)
(4)
Voice service.
(A)
The CTP shall count each end-use customer provided voice service as one
access line. Services that constitute vertical or optional features of a voice
service, or are bundled with the voice service shall not be counted as a
separate access line.
(B)
In the event a CTP is not able to identify the physical location of the end-
use customer, that physical location shall be attributed to the municipality
identified by the CTPs billing systems as the end-use customers billing
address.

(e)
Lines to be counted. A CTP shall count the foll