UTILITIES CODE
CHAPTER 63. ELECTRONIC PUBLISHING
SUBCHAPTER A. GENERAL PROVISIONS
§ 63.001. GENERAL DEFINITIONS. In this chapter:
(1) "Affiliate" means an entity, other than a
separated affiliate, that, directly or indirectly, is:
(A) under common ownership or control with an
incumbent local exchange company;
(B) owned or controlled by an incumbent local
exchange company; or
(C) the owner or in control of an incumbent local
exchange company.
(2) "Basic telephone service" means a wireline
telephone exchange facility or service provided by an incumbent
local exchange company in a telephone exchange area, other than a:
(A) competitive wireline telephone exchange
service provided in a telephone exchange area in which another
entity provides a wireline telephone exchange service that was
provided on January 1, 1984; or
(B) commercial mobile service provided by an
affiliate that the Federal Communications Commission requires to be
a corporate entity separate from the local exchange company.
(3) "Basic telephone service information" means:
(A) an incumbent local exchange company's
network or customer information; and
(B) information acquired by an incumbent local
exchange company as a result of its provision of basic telephone
service.
(4) "Control" has the meaning assigned by:
(A) 17 C.F.R. Section 240.12b-2 as adopted by the
Securities and Exchange Commission under the Securities Exchange
Act of 1934 (15 U.S.C. Section 78a et seq.); or
(B) a successor to that section.
(5) "Electronic publishing joint venture" means a
joint venture owned by an incumbent local exchange company or
affiliate that provides electronic publishing disseminated by the
basic telephone service of:
(A) the incumbent local exchange company; or
(B) an affiliate of the incumbent local exchange
company.
(6) "Entity" means an organization and includes a
corporation, partnership, sole proprietorship, association, or
joint venture.
(7) "Inbound telemarketing" means marketing property,
goods, or services by telephone to a customer or potential customer
who initiates the call.
(8) "Modification of final judgment" means the order
entered August 24, 1982, in the antitrust action styled United
States v. Western Electric, Civil Action No. 82-0192, in the United
States District Court for the District of Columbia, and includes
any judgment or order with respect to that action issued on or after
August 24, 1982.
(9) "Own" means to have the:
(A) equivalent of a direct or indirect equity
interest of more than 10 percent of an entity; or
(B) right to more than 10 percent of the gross
revenues of an entity under a revenue sharing or royalty agreement.
(10) "Separated affiliate" means a corporation that:
(A) does not own or control an incumbent local
exchange company;
(B) is not owned or controlled by an incumbent
local exchange company; and
(C) is under common ownership or control with an
incumbent local exchange company and provides electronic
publishing that is disseminated by the basic telephone service of:
(i) the incumbent local exchange company;
or
(ii) an affiliate of the incumbent local
exchange company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.002. ELECTRONIC PUBLISHING DEFINED. (a) In this
chapter, "electronic publishing" means the use of an incumbent
local exchange company's basic telephone service to disseminate,
provide, publish, or sell to a nonaffiliated entity or person:
(1) news;
(2) entertainment other than an interactive game;
(3) business, financial, legal, consumer, or credit
material;
(4) an editorial;
(5) a column;
(6) sports reporting;
(7) a feature;
(8) advertising;
(9) a photograph or image;
(10) archival or research material;
(11) a legal notice or public record;
(12) scientific, educational, instructional,
technical, professional, trade, or other literary material; or
(13) other similar information.
(b) In this chapter, "electronic publishing" does not
include providing the following network services:
(1) information access, as that term is defined by the
modification of final judgment;
(2) transmission of information as a common carrier;
(3) transmission of information as part of a gateway
to an information service that does not involve the generation or
alteration of the content of information, including data
transmission, address translation, protocol conversion, billing
management, introductory information content, or navigational
systems that enable users to access electronic publishing services
and that do not affect the presentation of those electronic
publishing services to users;
(4) a voice storage and retrieval service, including
voice messaging and electronic mail service;
(5) level two gateway services as those services are
defined by the Federal Communications Commission's Second Report
and Order, Recommendation to Congress and Second Further Notice of
Proposed Rulemaking in CC Docket No. 87-266 dated August 14, 1992 (7
FCC Record 5781 (1992));
(6) a data processing service that does not involve
the generation or alteration of the content of information;
(7) a transaction processing system that does not
involve the generation or alteration of the content of information;
(8) electronic billing or advertising of a regulated
telecommunications service of an incumbent local exchange company;
(9) language translation;
(10) conversion of information from one format to
another;
(11) information necessary for the management,
control, or operation of a telephone company telecommunications
system;
(12) directory assistance that:
(A) provides names, addresses, and telephone
numbers; and
(B) does not include advertising;
(13) a caller identification service;
(14) repairing and provisioning a database for a
telephone company operation;
(15) credit card and billing validation for a
telephone company operation;
(16) a 911-E or another emergency assistance database;
(17) another network service of a type that:
(A) is similar to the network services listed in
this subsection; and
(B) does not involve the generation or alteration
of the content of information;
(18) an upgrade to a network service listed in this
subsection that does not involve the generation or alteration of
the content of information;
(19) full motion video entertainment on demand; or
(20) video programming, as defined by Section 602,
Communications Act of 1934 (47 U.S.C. Section 522).
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.003. INCUMBENT LOCAL EXCHANGE COMPANY
DEFINED. (a) Except as provided by Subsection (b), in this
chapter, "incumbent local exchange company" means:
(1) a corporation that:
(A) serves more than five million access lines in
this state; and
(B) is subject to the modification of final
judgment;
(2) an entity owned or controlled by a corporation
described by Subdivision (1); or
(3) a successor or assign of a corporation described
by Subdivision (1).
(b) In this chapter "incumbent local exchange company" does
not include an electronic publishing joint venture that is:
(1) owned by a corporation or entity described by
Subsection (a); and
(2) permitted by Section 63.039, 63.040, or 63.041.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.004. CERTAIN SERVICES NOT PROHIBITED. This
chapter does not prohibit:
(1) a separated affiliate or electronic publishing
joint venture from providing in any area electronic publishing or
another service; or
(2) an incumbent local exchange company or affiliate
from providing:
(A) a service other than electronic publishing in
any area; or
(B) electronic publishing that is not
disseminated by the basic telephone service of:
(i) the company; or
(ii) an affiliate of the company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.005. INVESTMENT OF DIVIDENDS. This chapter does
not prohibit an affiliate from investing a dividend derived from an
incumbent local exchange company in its separated affiliate.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.006. JOINT VIOLATIONS. An incumbent local
exchange company, an affiliate, or a separated affiliate may not
act jointly with another entity to knowingly and wilfully violate
or evade a requirement of this chapter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.007. PRIVATE COMPLAINT; APPLICATION FOR
ORDER. (a) A person may file with the commission a complaint that
an act or practice of an incumbent local exchange company,
affiliate, or separated affiliate violates this chapter.
(b) A person may apply to the commission for the commission
to order an incumbent local exchange company, affiliate, or
separated affiliate to cease and desist from an act or practice that
violates this chapter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.008. PRIVATE SUIT FOR INJUNCTION. A person may
bring suit in district court for an injunction to compel an
incumbent local exchange company, affiliate, or separated
affiliate to discontinue a violation of this chapter or to comply
with a requirement of this chapter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.009. PRIVATE SUIT FOR DAMAGES. (a) A person may
bring suit to recover damages that result from a violation of this
chapter.
(b) An incumbent local exchange company, affiliate, or
separated affiliate is liable for damages if the incumbent local
exchange company violates this chapter or causes a violation of
this chapter.
(c) The incumbent local exchange company is liable to a
person injured by a violation of this chapter caused by the company
for:
(1) the amount of the damages that result from the
violation; and
(2) reasonable attorney's fees.
(d) The court shall determine and award attorney's fees in
each case in which damages are awarded. The attorney's fees shall
be taxed and collected as part of the costs of the suit.
(e) The court may not award damages for a violation:
(1) discovered by a compliance review under Section
63.034; and
(2) corrected before the 91st day after the date of its
discovery.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.010. APPLICABILITY OF ANTITRUST LAWS. This
chapter does not modify, impair, or supersede the applicability of
antitrust laws.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.011. APPLICABILITY OF CHAPTER. This chapter does
not apply to conduct that occurs after June 30, 2001.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. ELECTRONIC PUBLISHING SAFEGUARDS
§ 63.031. PUBLICATION BY BASIC TELEPHONE SERVICE
PROHIBITED. An incumbent local exchange company or affiliate may
not provide electronic publishing disseminated by the basic
telephone service of:
(1) the incumbent local exchange company; or
(2) an affiliate of the incumbent local exchange
company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.032. SEPARATED AFFILIATE OR JOINT VENTURE
REQUIREMENTS. (a) A separated affiliate or electronic publishing
joint venture shall maintain books, records, and accounts that:
(1) are separate from the books, records, and accounts
of the incumbent local exchange company and any affiliate; and
(2) record, in accordance with generally accepted
accounting principles, all direct and indirect transactions with
the incumbent local exchange company.
(b) A separated affiliate or electronic publishing joint
venture shall prepare financial statements that are not
consolidated with the financial statements of the incumbent local
exchange company or an affiliate. Additional consolidated
statements may be prepared.
(c) A separated affiliate or electronic publishing joint
venture shall file annual reports with the commission. The reports
must be in a form substantially equivalent to the Form 10-K required
by federal Securities and Exchange Commission regulations.
(d) A separated affiliate or electronic publishing joint
venture may not hire:
(1) as a corporate officer, a sales or marketing
manager whose responsibilities at the separated affiliate or
electronic publishing joint venture include a geographic area in
which the incumbent local exchange company provides basic telephone
service;
(2) network operations personnel whose
responsibilities at the separated affiliate or electronic
publishing joint venture require dealing directly with the
incumbent local exchange company; or
(3) a person who was employed by the incumbent local
exchange company during the year preceding the date of hire.
(e) Subsection (d)(3) does not apply to a person who is
subject to a collective bargaining agreement under which the person
has a right to be employed by a separated affiliate or electronic
publishing joint venture of the local exchange company.
(f) A separated affiliate or electronic publishing joint
venture may not:
(1) incur debt in a manner that, on default, would
permit a creditor to have recourse against an asset of the incumbent
local exchange company;
(2) provide a wireline telephone exchange service in a
telephone exchange area in which an incumbent local exchange
company with which it is under common ownership or control provides
basic telephone exchange service, unless the service is provided by
resale; or
(3) use a name, trademark, or service mark of an
incumbent local exchange company unless the name, trademark, or
service mark is used in common with the entity that owns or controls
the incumbent local exchange company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.033. INCUMBENT LOCAL EXCHANGE COMPANY
REQUIREMENTS. (a) This section applies only to an incumbent
local exchange company that is under common ownership or control
with a separated affiliate or electronic publishing joint venture.
(b) An incumbent local exchange company shall:
(1) carry out each transaction with a separated
affiliate in a manner:
(A) equivalent to the manner that unrelated
parties would carry out an independent transaction; and
(B) able to be audited in accordance with
generally accepted auditing standards;
(2) carry out a transaction with a separated affiliate
that involves the transfer of personnel, assets, or anything of
value, in accordance with a written contract or tariff that is filed
with the commission and made available to the public;
(3) value an asset the company transfers to a
separated affiliate at the greater of the asset's net book cost or
fair market value;
(4) value an asset the company's separated affiliate
transfers to the company at the lesser of the asset's net book cost
or fair market value; and
(5) comply fully with applicable accounting rules of
the Federal Communications Commission and the commission,
including rules on cost allocation.
(c) An incumbent local exchange company may not directly or
indirectly provide anything of monetary value to a separated
affiliate unless the item is provided in exchange for consideration
valued in an amount at least equal to the greater of the item's net
book cost or fair market value. This subsection does not apply to
an affiliate's investment of a dividend or profit derived from an
incumbent local exchange company.
(d) An incumbent local exchange company may not:
(1) provide a separated affiliate a facility, a
service, or basic telephone service information unless the company
makes the facility, service, or information available to
nonaffiliated entities on request and on the same terms;
(2) provide debt or equity financing directly or
indirectly to a separated affiliate, except in an instance in which
Federal Communications Commission regulations or commission rules
permit:
(A) in-arrears payment for a tariffed
telecommunications service; or
(B) an affiliate to invest a dividend or profit
derived from an incumbent local exchange company;
(3) discriminate in the presentation or provision of a
gateway for electronic publishing services or an electronic
directory of information services that is provided over the
company's basic telephone service;
(4) have a director, officer, or employee in common
with a separated affiliate;
(5) own property in common with a separated affiliate;
(6) hire or train personnel for a separated affiliate;
(7) purchase, install, or maintain equipment for a
separated affiliate, except for telephone service that the company
provides under tariff or contract subject to this chapter; or
(8) perform a research or development activity for a
separated affiliate.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.034. COMPLIANCE REVIEW AND REPORT. (a) A
separated affiliate or an electronic publishing joint venture
annually shall have a compliance review performed to determine
whether the separated affiliate or joint venture, during the
preceding calendar year, complied with the requirements this
chapter imposes on the separated affiliate or joint venture.
(b) An incumbent local exchange company that is under common
ownership or control with a separated affiliate or electronic
publishing joint venture annually shall have a compliance review
performed to determine whether the company, during the preceding
calendar year, complied with the requirements this chapter imposes
on the company.
(c) An independent entity that is subject to professional,
legal, and ethical obligations must conduct the compliance review.
(d) The compliance review must be performed each year
before:
(1) March 31; or
(2) another date prescribed by the commission.
(e) An entity subject to a compliance review under
Subsection (a) or (b) shall maintain the results of the entity's
compliance review for five years subject to review by a lawful
authority.
(f) Before the 91st day after the date an entity subject to a
compliance review under Subsection (a) or (b) receives the results
of a compliance review under this section, the entity shall:
(1) file with the commission a report of any
exceptions or corrective actions; and
(2) allow any person to inspect and copy the report.
(g) The right of a person to inspect and copy the report is
subject to reasonable safeguards to protect proprietary
information in the report from being used for a purpose other than
to enforce this chapter or to pursue a remedy under this chapter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.035. SERVICES TO ELECTRONIC PUBLISHER. (a) This
section applies only to an incumbent local exchange company that is
under common ownership and control with a separated affiliate or an
electronic publishing joint venture.
(b) If the incumbent local exchange company provides a
facility or service for telecommunication, transmission, billing
and collection, or expanded interconnection to an electronic
publisher, including a separated affiliate, for use in connection
with the provision of electronic publishing disseminated by the
basic telephone service of the incumbent local exchange company or
an affiliate of the incumbent local exchange company, the incumbent
local exchange company shall provide to any electronic publisher on
request the same type of facility or service. The facility or
service must be:
(1) provided on the same terms as provided to another
electronic publisher or as required by the Federal Communications
Commission or the commission; and
(2) unbundled and individually tariffed to the
smallest extent technically feasible and economically reasonable.
(c) The incumbent local exchange company shall provide
network access and interconnection for basic telephone service to
an electronic publisher:
(1) at any technically feasible and economically
reasonable point in the incumbent local exchange company's network;
and
(2) at a just and reasonable rate that:
(A) is tariffed if rates for the service are
subject to regulation; and
(B) is not higher on a per unit basis than the
rate charged for the service to another electronic publisher or a
separated affiliate engaged in electronic publishing.
(d) If the price for network access or interconnection for
basic telephone service is not subject to regulation, the incumbent
local exchange company shall provide the service to an electronic
publisher on the same terms under which a separated affiliate
receives the service.
(e) If a tariff is not required for a basic telephone
service used by an electronic publisher, the incumbent local
exchange company shall provide an electronic publisher with the
service on the same terms under which a separated affiliate
receives the service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.036. INFORMATION PROVIDED. (a) An incumbent
local exchange company under common ownership or control with a
separated affiliate or an electronic publishing joint venture shall
give to each affected electronic publisher reasonable advance
notification of information that:
(1) is necessary for an interconnected electronic
publisher to transmit or route information;
(2) is necessary to ensure the interoperability of an
electronic publisher's network with the exchange company's network;
or
(3) relates to a change in basic telephone service
network design or a technical standard that may affect the
provision of electronic publishing.
(b) The notification must be given to each electronic
publisher at the same time and on the same terms.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.037. CUSTOMER PROPRIETARY NETWORK INFORMATION. In
accordance with Subchapter B, Chapter 62, an incumbent local
exchange company or an affiliate may not provide an electronic
publisher, including a separated affiliate or electronic
publishing joint venture, with customer proprietary network
information for use with or in connection with providing electronic
publishing disseminated by the basic telephone service of the
incumbent local exchange company or an affiliate of the incumbent
local exchange company unless the exchange company or affiliate
makes the information available to all electronic publishers on the
same terms.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.038. PROHIBITED JOINT ACTIVITIES. Except as
provided by Sections 63.039-63.041, an incumbent local exchange
company may not engage in any:
(1) promotion, marketing, sales, or advertising for or
with a separated affiliate; or
(2) promotion, marketing, sales, or advertising for or
with an affiliate if the activity is related to electronic
publishing.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.039. PERMITTED JOINT MARKETING OR REFERRAL
ACTIVITIES. (a) An incumbent local exchange company may provide
an inbound telemarketing or referral service related to the
provision of electronic publishing for:
(1) a separated affiliate;
(2) an electronic publishing joint venture;
(3) an affiliate; or
(4) a nonaffiliated electronic publisher.
(b) To ensure that the company's method of providing the
service or the company's price structure does not competitively
disadvantage an electronic publisher, regardless of the
publisher's size or whether the publisher uses a telemarketing
service of the company, an incumbent local exchange company that
provides an inbound telemarketing or referral service to a
separated affiliate, electronic publishing joint venture, or
affiliate shall make the service available to all electronic
publishers:
(1) on request;
(2) on nondiscriminatory terms;
(3) at compensatory prices; and
(4) subject to rules of the commission.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.040. ELECTRONIC PUBLISHING TEAMING OR BUSINESS
ARRANGEMENTS. (a) An incumbent local exchange company may engage
in a nondiscriminatory teaming or business arrangement to engage in
electronic publishing with a separated affiliate or with another
electronic publisher.
(b) An incumbent local exchange company engaged in a teaming
or business arrangement under Subsection (a) may not own the
teaming or business arrangement.
(c) An incumbent local exchange company engaged in a teaming
or business arrangement under Subsection (a) may provide only
facilities, services, and basic telephone service information
authorized by this chapter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.041. JOINT VENTURE PARTICIPATION. (a) Except as
provided by Subsection (b), an incumbent local exchange company or
affiliate may participate on a nonexclusive basis in an electronic
publishing joint venture to provide electronic publishing services
with an entity that is not:
(1) an incumbent local exchange company;
(2) an affiliate; or
(3) a separated affiliate.
(b) An incumbent local exchange company or affiliate may not
participate in an electronic publishing joint venture if the
company or affiliate has:
(1) a direct or indirect equity interest in the
venture, or the equivalent, of more than 50 percent; or
(2) the right to more than 50 percent of the gross
revenues of the venture under a revenue sharing or royalty
agreement.
(c) Officers and employees of an incumbent local exchange
company or affiliate that participates in an electronic publishing
joint venture may not have more than 50 percent of the voting
control over the venture.
(d) The commission for good cause shown may authorize an
incumbent local exchange company or affiliate to have a larger
percentage of equity interest, revenue share, or voting control
than that prescribed by Subsection (b) or (c) for a joint venture
between the company and a small, local, electronic publisher. The
larger percentage may not exceed 80 percent.
(e) An incumbent local exchange company that participates
in an electronic publishing joint venture may provide promotion,
marketing, sales, or advertising personnel or services to the joint
venture.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.042. OTHER ELECTRONIC PUBLISHERS. (a) Except as
provided by Section 63.041:
(1) an incumbent local exchange company may not have
an officer, employee, property, or facility in common with an
entity whose principal business is publishing if the business
includes electronic publishing; and
(2) an officer or employee of an incumbent local
exchange company may not serve as a director of an entity whose
principal business is publishing if the business includes
electronic publishing.
(b) For the purposes of Subsection (a), an incumbent local
exchange company or affiliate that owns an electronic publishing
joint venture is not considered engaged in the electronic
publishing business solely because of that ownership.
(c) Except as provided by Section 63.041, an incumbent local
exchange company may not:
(1) market or sell for an entity that engages in
electronic publishing;
(2) provide a facility, service, or basic telephone
service information to an entity that engages in electronic
publishing, for use with or in connection with the provision of
electronic publishing that is disseminated by the basic telephone
service of the incumbent local exchange company or an affiliate of
the incumbent local exchange company, unless an equivalent
facility, service, or information is made available on equivalent
terms to all other entities; or
(3) hire personnel, purchase, or carry out production
for an entity that engages in electronic publishing.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. ELECTRONIC PUBLISHING TRANSACTIONS
§ 63.061. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN
INCUMBENT LOCAL EXCHANGE COMPANY AND AFFILIATE GENERALLY. (a) If
related to the provision of electronic publishing, the provision of
a facility, a service, or basic telephone service information by an
incumbent local exchange company to an affiliate or the transfer of
an asset, including personnel or something of commercial or
competitive value, from an incumbent local exchange company to an
affiliate shall be:
(1) recorded in the books and records of the incumbent
local exchange company and the affiliate;
(2) able to be audited in accordance with generally
accepted auditing standards; and
(3) done in accordance with a written contract or
tariff filed with the commission.
(b) A transfer of an asset directly related to the provision
of electronic publishing from an incumbent local exchange company
to an affiliate shall be valued at the greater of the asset's net
book cost or fair market value.
(c) A transfer of an asset related to the provision of
electronic publishing from an affiliate to the incumbent local
exchange company shall be valued at the lesser of the asset's net
book cost or fair market value.
(d) An incumbent local exchange company may not directly or
indirectly provide to a separated affiliate a facility, a service,
or basic telephone service information related to the provision of
electronic publishing unless the facility, service, or information
is made available to nonaffiliated companies on the same terms.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.062. ELECTRONIC PUBLISHING TRANSACTIONS BETWEEN
INCUMBENT LOCAL EXCHANGE COMPANY AND SEPARATED AFFILIATE. (a) If
an incumbent local exchange company provides to an affiliate a
facility, a service, or basic telephone service information subject
to Section 63.061(a) or transfers to an affiliate an asset subject
to that section and the affiliate provides the facility, service,
or information to a separated affiliate or transfers the asset to a
separated affiliate, the transaction shall be:
(1) recorded in the books and records of each entity;
(2) able to be audited in accordance with generally
accepted auditing standards; and
(3) done in accordance with a written contract or
tariff filed with the commission.
(b) A transfer of an asset directly related to the provision
of electronic publishing from an incumbent local exchange company
to an affiliate as described by Section 63.061 and then transferred
to a separated affiliate shall be valued at the greater of the
asset's net book cost or fair market value.
(c) A transfer of an asset related to the provision of
electronic publishing from a separated affiliate to an affiliate
and then transferred to the incumbent local exchange company as
described by Section 63.061 shall be valued at the lesser of the
asset's net book cost or fair market value.
(d) An affiliate may not provide directly or indirectly to a
separated affiliate a facility, a service, or basic telephone
service information related to the provision of electronic
publishing unless the facility, service, or information is made
available to nonaffiliated companies on the same terms.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 63.063. EXCEPTION. This subchapter does not apply to
an investment described by Section 63.005.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
