UTILITIES CODE
CHAPTER 61. INFORMATION TECHNOLOGY SERVICES
SUBCHAPTER A. GENERAL PROVISIONS
§ 61.001. DEFINITIONS. In this chapter:
(1) "Management consulting" means the development,
refinement, and coordination of a strategy to support a client's
business direction, positively affect business performance, and
improve an operating result, in a field such as business planning,
operations, information technology, marketing, finance, and human
resources.
(2) "Process management" means the ongoing
responsibility for direction and operation of a business process in
an enterprise in a field such as administration, finance, human
resources, operations, sales, or marketing.
(3) "Systems development" means the creation,
migration, or improvement of a computer system, including hardware
and software, to:
(A) meet a specific business need; or
(B) take advantage of a change in information
technology.
(4) "Systems integration" means the acquisition,
installation, and integration of hardware, software,
communications, and related support components or services.
(5) "Systems management" means the ongoing management
and operation of information technology components, ranging from
specialized system applications to an enterprise's entire
information technology function, including related facilities and
personnel.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. PROVISION OF INFORMATION TECHNOLOGY SERVICES
§ 61.021. PROVISION OF CERTAIN SERVICES OR PRODUCTS
PROHIBITED. (a) A local exchange company that serves more than
five million access lines in this state may not provide the
following customized business services or products to a customer
who has 50 or more access lines in this state:
(1) management consulting, except for consulting
related exclusively to telecommunications;
(2) information technology process or systems
development;
(3) information technology process or systems
integration; or
(4) information technology process or systems
management.
(b) This section does not apply to a service or product
provided on September 1, 1995.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 61.022. PERMISSIBLE SERVICES AND PRODUCTS. Section
61.021 does not prohibit:
(1) an affiliate of the local exchange company from
providing a service or product described by that section in
accordance with this subchapter and Subchapter C; or
(2) a local exchange company from:
(A) providing a service or product described by
Section 61.021 to an affiliate if:
(i) the company is not providing a service
or product described by that section to a nonaffiliated third
party; and
(ii) there is not an affiliate of the
company engaged in providing a service or product described by that
section to a nonaffiliated third party;
(B) providing mass market and consumer market
products and services directly to a customer that:
(i) has fewer than 50 access lines in this
state; and
(ii) uses or relies on the use of
information services, information systems, or information
technology or processes;
(C) selling or leasing billing and collection
services, local area networks, wide area networks, or other
telecommunications services; or
(D) providing to itself a service or product
described by Section 61.021.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 61.023. SEPARATE AFFILIATE REQUIREMENTS. (a) A
local exchange company's affiliate that provides a service or
product described by Section 61.021:
(1) shall:
(A) operate independently from the local
exchange company in providing the service or product; and
(B) maintain the affiliate's own books of
accounts; and
(2) may not have an officer, director, or employee in
common with the local exchange company.
(b) Notwithstanding Subsection (a)(2), an officer of a
corporate parent or holding company may serve as a director of the
local exchange company and as a director of another subsidiary of
the parent if the subsidiary existed on September 1, 1995.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 61.024. ARM'S-LENGTH TRANSACTIONS. A local exchange
company and an affiliate shall conduct at arm's length each
transaction regarding the acquisition from the affiliate of a
service or product described by Section 61.021.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 61.025. CONTRACTS AND RECORDS. (a) A local exchange
company shall maintain and keep available for inspection by the
commission copies of each contract or arrangement between the
company and an affiliate that relates to the company's acquisition
from the affiliate of a service or product described by Section
61.021.
(b) The local exchange company's records must show each cash
or noncash transaction with the affiliate for the service or
product, including each payment for a good, service, or property
right.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 61.026. JOINT OWNERSHIP OR USE PROHIBITED. A local
exchange company and an affiliate engaged in providing a service or
product described by Section 61.021 may not:
(1) own property jointly; or
(2) share in the use of property.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER C. ADDITIONAL COMPETITIVE SAFEGUARDS
§ 61.041. PROHIBITED DISCRIMINATION. A local exchange
company may not discriminate between an affiliate that provides a
service or product described by Section 61.021 and another person
in:
(1) providing or procuring a good, a service, a
facility, or information; or
(2) establishing a standard.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 61.042. SUBSIDIZATION OF SERVICES PROHIBITED. A
local exchange company or the company's affiliate may not subsidize
the provision of a service or product described by Section 61.021
with revenue from:
(1) a local exchange telephone service; or
(2) an access service provided by the local exchange
company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 61.043. PERMISSIBLE INVESTMENT. This subchapter does
not prohibit a local exchange company's affiliate from investing a
dividend or profit derived from a local exchange company or
developing a service or product described by Section 61.021 for the
local exchange company if the investment or development complies
with Subchapter B.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
