Texas Senate Bill SB583

Texas 2013 - 83rd Regular

Caption

Relating to eligibility for support from the universal service fund.

Impact

The proposed changes in SB583 would fundamentally alter the landscape of financial support for telecommunications providers, particularly focusing on those serving a significant number of access lines. By establishing stricter eligibility criteria and requiring ongoing demonstrations of financial need, the bill aims to ensure that only those companies that genuinely require support receive funds. This could lead to a more efficient allocation of resources within Texas’s telecommunications sector, ultimately aiming to enhance service delivery to consumers across the state.

Summary

Senate Bill 583 seeks to amend the Texas Utilities Code concerning the eligibility criteria for telecommunications providers receiving support from the universal service fund. The bill specifically addresses the conditions under which local exchange companies and cooperatives can qualify for this financial support while ensuring service quality and compliance with regulatory standards. It introduces several amendments to existing statutes to enhance the oversight of disbursements and the financial assessments of providers seeking support.

Contention

However, there are potential points of contention surrounding this bill. Opponents might argue that the stricter eligibility requirements could place undue pressure on smaller or rural telecommunications providers, potentially reducing competition and discouraging investment in underserved areas. Additionally, the bill's provisions that limit the continued support for companies exceeding certain access line thresholds may result in service degradation in less profitable areas, thereby impacting consumers reliant on these companies for connectivity.

Implementation

If enacted, SB583 mandates the Public Utility Commission of Texas to adopt new rules for assessing the financial needs of companies seeking continued support. This requirement for ongoing evaluation aims to align with the state's goals of promoting high-quality services while managing public funds judiciously. Therefore, telecommunications providers will need to navigate more complex regulatory frameworks and comply with new reporting and accountability measures to remain eligible for financial assistance.