Texas House Bill HB4177

Texas 2017 - 85th Regular

Caption

Relating to adjustments to universal service plan support for small and rural incumbent local exchange companies.

Impact

The bill directly impacts the Utilities Code by adding Section 56.0321, which sets a framework for how monthly support amounts for qualifying local exchange companies are handled. By preventing adjustments to these amounts until the specified date, the bill aims to ensure that small and rural companies can maintain operational stability and financial predictability as they provide essential services to underserved areas.

Summary

House Bill 4177 focuses on adjustments to the universal service plan support specifically tailored for small and rural incumbent local exchange companies in Texas. The bill proposes that for these companies, defined as serving fewer than 31,000 access lines and not classified as election companies, their monthly support amounts cannot be adjusted before December 1, 2018. This provision is intended to stabilize funding and support for smaller telecommunications providers which play a crucial role in rural connectivity.

Contention

Despite its intent to support rural telecommunications, the bill's approach may face contention regarding its long-term viability and funding implications. Critics could argue that by locking in these support levels, the bill may limit the flexibility of regulatory bodies, like the Texas Public Utility Commission, in responding to dynamic market conditions or technological advancements. There may also be concerns about whether the support amounts are sufficient and sustainable in the face of future industry changes.