83R7180 JJT-D
By: King of Hemphill H.B. No. 2835
A BILL TO BE ENTITLED
AN ACT
relating to charges to fund and monthly support received from the
universal service fund; changing an assessment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Effective January 1, 2014, Section 56.022,
Utilities Code, is amended to read as follows:
Sec. 56.022. UNIFORM CHARGE. (a) In this section:
(1) "Lifeline service" has the meaning assigned by
Section 55.015(e).
(2) "Voice over Internet Protocol service" has the
meaning assigned by Section 51.002.
(3) "Working telephone number" does not include a
telephone number used for network administration or for another
purpose that is not related to providing end-user voice
communication service.
(b) The universal service fund is funded by a statewide
uniform charge assessed against [payable by] each
telecommunications provider and each Voice over Internet Protocol
service provider that has access to the customer base. Each [(b) A
telecommunications] provider against whom the charge is assessed
shall pay the charge in accordance with procedures approved by the
commission.
(c) The uniform charge is assessed on each working telephone
number, and each equivalent of a working telephone number, that has
access to the public switched telephone network in an amount
[services and at rates] the commission determines. In determining
the amount of [establishing] the charge [and the services to which
the charge will apply], the commission may not:
(1) grant an unreasonable preference or advantage to a
[telecommunications] provider against whom the charge may be
assessed;
(2) assess the charge on lifeline [pay telephone]
service; or
(3) subject a [telecommunications] provider against
whom the charge may be assessed to unreasonable prejudice or
disadvantage.
SECTION 2. Section 56.031, Utilities Code, as effective
September 1, 2013, is amended to read as follows:
Sec. 56.031. TEXAS HIGH COSTS UNIVERSAL SERVICE PLAN
ADJUSTMENTS. (a) In this section:
(1) "Consumer price index" has the meaning assigned by
Section 56.032.
(2) "Forward-looking common costs" means economic
costs efficiently incurred in providing a group of services that
cannot be attributed directly to an individual service.
(3) "Forward-looking economic cost" means the sum of
total service long run incremental cost and a reasonable allocation
of forward-looking common costs.
(4) "Total service long run incremental cost" means
the average incremental cost over the long run based on the total
demand for service using the existing locations of an incumbent
local exchange company's switches that provide service to the
exchange, measured by the use of the most efficient technology and
engineering practices.
(b) Except as provided by Subsection (d), the [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,] only after notice
and an opportunity for a contested case hearing. The commission
shall determine [In determining] appropriate monthly per line
support amounts under this subsection for residential lines and
business lines in each regulated exchange of an incumbent local
exchange company based on the difference between forward-looking
economic cost per line of providing basic local telecommunications
service in that exchange and the statewide average revenue per line
for that company [, the commission shall consider the adequacy of
basic rates to support universal service].
(c) In computing forward-looking economic cost and
statewide average revenue under Subsection (b), the commission
shall:
(1) use a forward-looking economic cost model or
methodology that:
(A) is capable of determining the cost to the
incumbent local exchange company of providing basic local
telecommunications service, including any mandatory extended area
service, for existing residential and for existing business
customer locations;
(B) reflects the territory being served; and
(C) uses items of information that reflect the
scale and scope of the incumbent local exchange company; and
(2) determine the statewide average revenue per
residential line and per business line for basic local
telecommunications service, including any mandatory extended area
service, provided in regulated exchanges that receive support under
the Texas High Cost Universal Service Plan.
(d) The commission administratively may decrease a
telecommunications provider's per line monthly support by an amount
that does not exceed the estimated amount of increase in additional
revenue the telecommunications provider would receive if the
telecommunications provider's rates for flat rate residential
local exchange telephone service in a regulated exchange that
receives Texas High Cost Universal Service Plan support increased
by a rate equal to the rate of increase in the consumer price index.
The commission may not implement a decrease for a
telecommunications provider under this subsection more than once in
any 12-month period and must provide reasonable notice of the
intended decrease. In estimating the amount of increase in
additional revenue for purposes of this subsection, the commission
must impute the increased rate for flat rate residential local
exchange telephone service to all packages of the provider that
include that type of service. This subsection does not apply to a
telecommunications provider that on or before January 1, 2017, as
provided by commission rule, elects not to seek or receive support
from the Texas High Cost Universal Service Plan after January 1,
2017.
(e) The commission by rule may require a telecommunications
provider to provide to the commission, after reasonable notice, any
information necessary to determine the amount of a decrease under
Subsection (d), including rates and line counts.
(f) A telecommunications provider that disputes the
accuracy of the commission's computation of a decrease in the
telecommunications provider's per line monthly support under
Subsection (d) may seek commission reconsideration and may seek
judicial review of the decrease after that reconsideration is made
or denied.
SECTION 3. Sections 56.032(f) and (h), Utilities Code, are
amended to read as follows:
(f) The commission shall administratively review requests
filed under Subsection [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.
(h) This section and any monthly support amount approved
under this section expire on September 1, 2019 [2013].
SECTION 4. (a) Sections 56.032(b) and (c), Utilities Code,
as added by Chapter 535 (H.B. 2603), Acts of the 82nd Legislature,
Regular Session, 2011, are repealed.
(b) Section 3, Chapter 535 (H.B. 2603), Acts of the 82nd
Legislature, Regular Session, 2011, which amended Section 56.031,
Utilities Code, is repealed.
SECTION 5. The changes in law made by Section 56.022,
Utilities Code, as amended by this Act, apply only on or after the
effective date of that section. Universal service fund charges
payable by a telecommunications provider on or before that date are
governed by the law in effect immediately before the effective date
of that section, and that law is continued in effect for that
purpose.
SECTION 6. Except as otherwise provided by this Act, this
Act takes effect August 31, 2013.