By: Smithee (Senate Sponsor - Hegar) H.B. No. 2603
(In the Senate - Received from the House May 16, 2011;
May 16, 2011, read first time and referred to Committee on Business
and Commerce; May 19, 2011, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 7, Nays 2;
May 19, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 2603 By: Jackson
A BILL TO BE ENTITLED
AN ACT
relating to the distribution of universal service funds to certain
small and rural local exchange companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 56.031, Utilities Code, is amended to
read as follows:
Sec. 56.031. ADJUSTMENTS: TEXAS HIGH COST UNIVERSAL
SERVICE PLAN. The commission may revise the monthly per line
support amounts to be made available from the Texas High Cost
Universal Service Plan [and from the Small and Rural Incumbent
Local Exchange Company Universal Service Plan at any time after
September 1, 2007,] after notice and an opportunity for
hearing. In determining appropriate monthly per line support
amounts, the commission shall consider the adequacy of basic rates
to support universal service.
SECTION 2. Subchapter B, Chapter 56, Utilities Code, is
amended by adding Section 56.032 to read as follows:
Sec. 56.032. ADJUSTMENTS: SMALL AND RURAL INCUMBENT LOCAL
EXCHANGE COMPANY UNIVERSAL SERVICE PLAN. (a) For purposes of this
section, "consumer price index" means the Consumer Price Index for
All Urban Consumers, as published by the federal Bureau of Labor
Statistics of the United States Department of Labor.
(b) Except as provided by Subsections (c), (d), (e), and
(f), the commission may revise the monthly support amounts to be
made available from the Small and Rural Incumbent Local Exchange
Company Universal Service Plan by revising the monthly per line
support amounts, after notice and an opportunity for hearing. In
determining appropriate monthly per line support amounts, the
commission shall consider the adequacy of basic rates to support
universal service.
(c) On the written request of a small or rural incumbent
local exchange company that receives monthly per line support
amounts, the commission shall disburse funds to the company in
fixed monthly amounts based on the company's annualized amount of
recovery for the calendar year ending on December 31, 2010. A
company may submit only one request under this subsection and must
submit the request on or before December 31, 2011.
(d) On the written request of a small or rural incumbent
local exchange company that is not an electing company under
Chapter 58 or 59, the commission annually shall set the company's
monthly support amounts for the following 12 months by dividing by
12 the annualized support amount calculated under this subsection.
The commission shall calculate the annualized amount:
(1) for the initial 12-month period for which a
company makes an election under this subsection, by:
(A) determining the annualized support amount
calculated for the requestor in the final order issued by the
commission in Docket No. 18516; and
(B) adjusting the support amount determined
under Paragraph (A) at the beginning of each calendar year by a
factor equal to the most recent consumer price index published at
that time, beginning with the 1999 calendar year and ending in the
year the company makes an election under this subsection; and
(2) for the 12-month period following the initial
period for which a company made an election under this subsection
and for subsequent 12-month periods, by adjusting the most recent
annualized support amount calculated by the commission by a factor
equal to the percentage change in the consumer price index for the
most recent 12-month period.
(e) If a company elects to receive monthly support amounts
under Subsection (d), the commission, on its own motion or on the
written request of the company, may initiate a proceeding to
recalculate the most recent annualized support amount to be used as
the basis for adjustment for a subsequent 12-month period under
Subsection (d)(2). If, based on the recalculation, the commission
by order adjusts a company's most recent annualized support amount,
the adjusted support amount supersedes the annualized support
amount calculated in accordance with Subsection (d).
(f) The commission shall administratively review requests
filed under Subsections (c) and (d). Except for good cause, the
commission shall approve the request not later than the 60th day
after the date the commission determines the company is eligible
and has met all the procedural requirements under this subchapter.
(g) This section does not affect the commission's authority
under Chapter 53 or this chapter.
(h) This section and any monthly support amount approved
under this section expire on September 1, 2013.
SECTION 3. Effective September 1, 2013, Section 56.031,
Utilities Code, is amended to read as follows:
Sec. 56.031. ADJUSTMENTS. The commission may revise the
monthly per line support amounts to be made available from the Texas
High Cost Universal Service Plan and from the Small and Rural
Incumbent Local Exchange Company Universal Service Plan at any time
after September 1, 2007, after notice and an opportunity for
hearing. In determining appropriate monthly per line support
amounts, the commission shall consider the adequacy of basic rates
to support universal service.
SECTION 4. Except as otherwise provided by this Act, this
Act takes effect September 1, 2011.
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