Texas Senate Bill SB494

Texas 2013 - 83rd Regular

Caption

Relating to the sources of funding for the universal service fund; authorizing a change in fees.

Impact

The impact of SB494 on state laws revolves around the ways in which the universal service fund is financed. The potential introduction of fees on local exchange access lines could generate new revenue streams aimed at supporting the fund's objectives. By establishing clearer guidelines for funding, the bill seeks to bolster support for rural telecommunications services, providing necessary resources to underserved areas that struggle with connectivity. Such changes could enhance service delivery and bring about improvements in both urban and rural telecommunications infrastructure throughout Texas.

Summary

SB494 proposes amendments to the Texas Utilities Code regarding the funding of the universal service fund, which is designed to ensure that telecommunications services are available at reasonable rates, especially in high-cost rural areas. The bill authorizes the Texas Commission to evaluate various funding methods for the universal service fund and mandates that the funding approach be competitively neutral, regardless of the communication technologies used. This reflects a significant step towards addressing disparities in access to basic telecommunications services across Texas's diverse geographical landscape.

Sentiment

Sentiment surrounding SB494 generally leans towards a positive outlook on its objectives of enhancing telecommunications access. Supporters argue that it offers a necessary mechanism for ensuring equitable service provision in economically disadvantaged areas. However, there are concerns that the implementation of new fees could be met with resistance from local exchange companies and consumers who might be apprehensive about additional costs. The debate reflects broader anxieties regarding the balance between ensuring adequate service availability and managing consumer expenses.

Contention

Notable points of contention include the debate over how fees will be levied and the implications for competition among telecommunications providers. Opponents worry that imposing fees on local exchange access lines could inhibit market competition, creating an undue burden on consumers. Additionally, discussions may emerge around the efficiency and effectiveness of the universal service fund in fulfilling its goals, raising questions about accountability and oversight in how funds are allocated. The bill's successful passage may hinge on addressing these concerns and finding a balance that satisfies both provider interests and consumer protections.