Tex. Utilities Code § 60.041

(a) An incumbent local exchange company that on September 1, 1995, serves one million or more access lines or that on or before September 1, 1995, elects regulation under Chapter 58 shall file a usage sensitive loop resale tariff.

(b) An incumbent local exchange company shall file a usage sensitive loop resale tariff not later than the 60th day after the date a certificate of operating authority or a service provider certificate of operating authority is granted under Chapter 54 if the company:

(1) serves fewer than one million access lines; and

(2) is not an electing company under Chapter 58.

(c) The commission shall conduct an appropriate proceeding to determine the rates and terms of the resale tariff not later than the 180th day after the date the tariff is filed.

(d) The commission may not approve a usage sensitive rate unless the rate recovers:

(1) the total long run incremental cost of the loop on an unseparated basis; and

(2) an appropriate contribution to joint and common costs.

(e) Except as provided by Section 60.044, a person may not purchase from the resale tariff unless the person is the holder of:

(1) a certificate of convenience and necessity;

(2) a certificate of operating authority; or

(3) a service provider certificate of operating authority.

(f) In this section, "loop resale" means the purchase of the local distribution channel or loop facility from the incumbent local exchange company to resell to end user customers.