Texas 2015 - 84th Regular

Texas House Bill HB3127 Compare Versions

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1	1	By: King of Hemphill H.B. No. 3127
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the authority of certain telecommunications providers
7	7	to commit to making infrastructure and network improvements in
8	8	exchange for support from the universal service fund.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle C, Title 2, Utilities Code, is amended
11	11	by adding Chapter 53A to read as follows:
12	12	CHAPTER 53A. RURAL ADVANCED PLAN FOR INFRASTRUCTURE DEPLOYMENT
13	13	Sec. 53A.001. POLICY. In accordance with the policy stated
14	14	in Section 51.001(g), considering the differences in the geographic
15	15	and economic challenges posed by providing basic local
16	16	telecommunications services and competitive and advanced
17	17	telecommunications services to rural areas as opposed to urban
18	18	areas, the benefits incident to those services, the status of
19	19	universal service in the rural areas of this state, state and
20	20	national initiatives for widespread deployment of broadband
21	21	services, and the telecommunications services network and
22	22	infrastructure advancements needed to make possible the future
23	23	deployment of an electric smart grid in rural areas, it is the
24	24	policy of this state to:
25	25	(1) upgrade and maintain the telecommunications
26	26	services infrastructure in rural areas of this state in an effort
27	27	to:
28	28	(A) provide to each resident of this state a
29	29	network capable of providing access to basic local
30	30	telecommunications services and advanced telecommunications
31	31	services so that a majority of residents in rural areas have the
32	32	option to use those services; and
33	33	(B) ensure that each resident has advanced
34	34	telecommunications services to maintain the role of this state as a
35	35	leader in commerce and education;
36	36	(2) ensure that the residents of rural areas have
37	37	access to a wide range of advanced telecommunications services and
38	38	other competitive benefits in a manner and at prices similar to the
39	39	access available to residents in urban areas;
40	40	(3) provide the necessary infrastructure in rural
41	41	areas to support access to an array of telecommunications, data,
42	42	and video services, economic development and educational
43	43	opportunities, and telemedicine applications;
44	44	(4) provide the required underlying primary network
45	45	infrastructure to support major state and national energy policy
46	46	initiatives established to create an electric smart grid that
47	47	requires the support of an advanced telecommunications services
48	48	network;
49	49	(5) provide incentives and flexibility similar to
50	50	programs available in urban areas for small incumbent local
51	51	exchange companies that serve rural areas to complete a basic local
52	52	and advanced telecommunications services infrastructure that will
53	53	support universal service; and
54	54	(6) promote economic stabilization and growth in rural
55	55	areas through basic local and advanced telecommunications services
56	56	networks.
57	57	Sec. 53A.002. DEFINITIONS. In this chapter:
58	58	(1) "Advanced telecommunications services" includes
59	59	high speed, switched, broadband telecommunications service that
60	60	enables users to originate and receive high quality voice, data,
61	61	graphics, and video telecommunications.
62	62	(2) "Community center" means an organized public or
63	63	private entity that provides a location for specialized groups or
64	64	the general public to meet for group activities involving
65	65	community, educational, patriotic, political, public information,
66	66	recreational, religious, or social functions. The term includes
67	67	recreational centers, senior centers, youth centers, and publicly
68	68	owned meeting facilities. The commission may by rule designate
69	69	additional types of facilities or entities as community centers.
70	70	(3) "Educational institution" has the meaning
71	71	assigned by Section 57.021.
72	72	(4) "Electing provider" means a small provider that
73	73	elects to be subject to the infrastructure commitment and
74	74	corresponding regulation under this chapter.
75	75	(5) "Emergency services facility" means a facility
76	76	from which a person, including a firefighter, paramedic, emergency
77	77	medical technician, police officer, sheriff, constable, or other
78	78	state or federal law enforcement representative, responds to
79	79	emergencies, including 9-1-1 calls.
80	80	(6) "Library" means:
81	81	(A) a public library or regional library system,
82	82	as defined by Section 441.122, Government Code;
83	83	(B) a library operated by an institution of
84	84	higher education or a school district; or
85	85	(C) a library operated by a nonprofit
86	86	corporation, as defined by Section 441.221, Government Code.
87	87	(7) "Private network services" means
88	88	telecommunications services, including basic local
89	89	telecommunications services, broadband services, customized
90	90	services, and packaged network services.
91	91	(8) "Small provider" means:
92	92	(A) an incumbent local exchange company or
93	93	cooperative that on September 1, 2013, together with all local
94	94	exchange companies affiliated with the company or cooperative on
95	95	that date, served 31,000 or fewer access lines in this state; or
96	96	(B) a company or cooperative that is a successor
97	97	to a company or cooperative described by Subparagraph (A).
98	98	(9) "Smart grid" means infrastructure required to
99	99	produce an advanced electric energy grid system under the state and
100	100	national policy initiatives under the Energy Independence and
101	101	Security Act of 2007 (42 U.S.C. Section 17001 et seq.).
102	102	(10) "Telemedicine center" means a facility that is
103	103	equipped to transmit, by video, data, or voice service, medical
104	104	information for the diagnosis or treatment of an illness or disease
105	105	and that is:
106	106	(A) owned or operated by a public or
107	107	not-for-profit hospital; or
108	108	(B) owned by a state-licensed health care
109	109	practitioner and operated on a nonprofit basis.
110	110	Sec. 53A.003. CHAPTER CONTROLS. To the extent this chapter
111	111	conflicts with Chapter 53, this chapter controls.
112	112	Sec. 53A.004. ELECTION. (a) A small provider that is not
113	113	an electing company under Chapter 58 or 59 as of September 1, 2013,
114	114	may elect to be subject to this chapter and make the corresponding
115	115	infrastructure commitment under this chapter by notifying the
116	116	commission in writing of the election.
117	117	(b) The notice must include the information required by
118	118	Section 56.034 and a statement that the provider agrees to fulfill
119	119	the infrastructure commitment prescribed by this chapter.
120	120	(c) A small provider may not revoke an election.
121	121	Sec. 53A.005. INFRASTRUCTURE COMMITMENT. (a) After the
122	122	date the commission receives notice of the small provider's
123	123	election under Section 53A.004, the electing provider shall:
124	124	(1) commit to make all reasonable efforts and
125	125	investments in this state necessary to improve or upgrade network
126	126	infrastructure in the manner described by this chapter;
127	127	(2) work to ensure that the electing provider's
128	128	network backbone interoffice facilities are capable of supporting
129	129	services that include, at a minimum, broadband speeds that are not
130	130	less than the minimum speeds required by the Federal Communications
131	131	Commission, voice services, video signal at a quality level
132	132	comparable to a television broadcast signal, and other reasonably
133	133	anticipated basic local or advanced telecommunications services
134	134	that may become available to the public in the future; and
135	135	(3) work to ensure that all new or upgraded local loops
136	136	that are the subject of an equitable request for service are capable
137	137	of supporting basic local and advanced telecommunications
138	138	services, including broadband service at a speed that is not less
139	139	than the minimum broadband speed required by the Federal
140	140	Communications Commission.
141	141	(b) To meet the requirements of this chapter, an electing
142	142	provider may use any technology capable of achieving the required
143	143	level of service capabilities. This includes both new construction
144	144	and upgrades to existing facilities.
145	145	Sec. 53A.006. EQUITABLE REQUESTS FOR SERVICE. (a) For the
146	146	purposes of this chapter, a request for service is considered an
147	147	equitable request for service only if provision of the requested
148	148	service by the electing provider receiving the request is
149	149	technologically and economically feasible, including the provision
150	150	of network extensions or upgrades necessary to support any services
151	151	the requesting entity is receiving at the time the request is made
152	152	and other reasonably anticipated basic local or advanced
153	153	telecommunications services that may become available to the public
154	154	in the future.
155	155	(b) An electing provider shall determine whether a request
156	156	for service is an equitable request. If the electing provider
157	157	determines that the request is not an equitable request, the
158	158	electing provider shall provide written notice of that
159	159	determination to the requesting person. The requesting person may
160	160	appeal to the commission a determination that a request for service
161	161	is not an equitable request.
162	162	(c) An electing provider may deny a request that is not an
163	163	equitable request. An infrastructure commitment associated with a
164	164	denied request is waived.
165	165	(d) If the electing provider or the commission determines
166	166	that a request for service is an equitable request, the electing
167	167	provider shall, regardless of technology used, work to ensure that
168	168	the provider meets the commitments prescribed by Section 53A.005.
169	169	Sec. 53A.007. PRIVATE NETWORK SERVICES FOR CERTAIN
170	170	ENTITIES. (a) An electing provider shall, after receiving an
171	171	equitable request for service under Section 53A.006, provide
172	172	private network services to:
173	173	(1) a community center;
174	174	(2) an educational institution;
175	175	(3) a library;
176	176	(4) a public or not-for-profit emergency services
177	177	facility;
178	178	(5) a telemedicine center; or
179	179	(6) a legally constituted consortium of entities
180	180	listed in this subsection.
181	181	(b) The electing provider shall provide the private network
182	182	services for the private and sole use of the receiving entity or
183	183	entities. The provider may provide the services jointly with a
184	184	facility that is used to provide another service to another
185	185	customer.
186	186	(c) The entities described by Subsection (a) are a special
187	187	class of customers for the purposes of the private network for
188	188	distance learning, telemedicine, and information-sharing uses.
189	189	(d) An electing provider may provide a private network
190	190	service under a customer-specific contract.
191	191	(e) The entities described by Subsection (a) warrant
192	192	preferred rate treatment. An electing provider shall provide
193	193	private network services to those entities at a reduced rate equal
194	194	to 65 percent of the amount owed under the customer-specific
195	195	contract or under the otherwise applicable tariffed rate after
196	196	applicable federal discounts are applied.
197	197	(f) On request of an electing provider, the commission shall
198	198	provide reimbursement through the universal service fund, in
199	199	addition to monthly support received under Section 56.034(d)(1) or
200	200	(2), for reduced rates for private network services for entities
201	201	described by Subsection (a). The amount of reimbursement shall be
202	202	equal to the difference between the electing provider's
203	203	customer-specific contract or otherwise applicable tariffed rate
204	204	for that service, and the reduced rate offered for that service
205	205	under this chapter.
206	206	Sec. 53A.008. WAIVER OF INFRASTRUCTURE COMMITMENT
207	207	REQUIREMENTS. (a) On the request of an electing provider, the
208	208	commission may waive an infrastructure commitment requirement
209	209	under Section 53A.005 or 53A.009 or a requirement under an
210	210	equitable request for service under Section 53A.006.
211	211	(b) The commission may grant a waiver in relation to an
212	212	equitable request for service under Section 53A.006 if the electing
213	213	provider demonstrates that the requested investment or service
214	214	places an undue burden on the universal service fund or the electing
215	215	provider.
216	216	(c) Before granting a waiver under Subsection (b), the
217	217	commission must consider the public benefits that would result from
218	218	the investment or service, the willingness and ability of the
219	219	requestor to pay a reasonable aid to construction charge, and the
220	220	allowance of additional universal service fund support to allow
221	221	timely completion of the request.
222	222	(d) The commission shall review a waiver granted under
223	223	Subsection (a) or (b) at least once every three years if the
224	224	corresponding requirement or the corresponding equitable request
225	225	for service remains pending. The commission may not extend a waiver
226	226	until the commission reviews the factors listed in Subsection (c),
227	227	the technical ability of the provider to meet the waived
228	228	requirement, and the effect of extending the waiver on the
229	229	universal service fund.
230	230	Sec. 53A.009. PLAN. (a) An electing provider shall develop
231	231	and implement a five-year infrastructure investment plan to
232	232	maintain and upgrade existing network facilities to ensure
233	233	connectivity capable of meeting the standards prescribed by this
234	234	chapter.
235	235	(b) The plan must include a description of the proposed
236	236	improvements or upgrades to the electing provider's network
237	237	throughout its service area that will help the provider meet
238	238	infrastructure commitments and customer needs.
239	239	(c) An electing provider who is subject to a requirement
240	240	under federal law to file a five-year plan is not required to create
241	241	an additional plan under this section.
242	242	Sec. 53A.010. PROGRESS AND ACCOUNTABILITY REPORT. (a) An
243	243	electing provider shall file annually with the commission a report
244	244	on the provider's progress toward fulfilling the provider's
245	245	infrastructure commitment.
246	246	(b) The report must include:
247	247	(1) the plan described by Section 53A.009 or the
248	248	provider's federally prescribed five-year plan;
249	249	(2) a description of the provider's progress on
250	250	implementing the plan, how the provider is using universal service
251	251	support funds to improve service quality, coverage, or capacity,
252	252	and an explanation detailing why improvements or targets for the
253	253	previous calendar year have not been met, including adjustments for
254	254	evolving standards;
255	255	(3) a summary of financial data for the previous
256	256	calendar year that includes total company data, including:
257	257	(A) plant-specific operations expenses;
258	258	(B) plant non-specific operations expenses;
259	259	(C) customer operations expenses;
260	260	(D) corporate operations expenses;
261	261	(E) depreciation and amortization expenses;
262	262	(F) other operating expenses;
263	263	(G) total telecom plant in service;
264	264	(H) total property held for future use; and
265	265	(I) total telecom plant under construction; and
266	266	(4) average network capacity and speed capabilities
267	267	available to customers.
268	268	(c) A report filed under this section is confidential and
269	269	not subject to disclosure under Chapter 552, Government Code.
270	270	(d) The commission shall monitor the progress of each
271	271	electing provider through the reports submitted under this section.
272	272	Sec. 53A.011. UNIVERSAL SERVICE FUND RECOVERY. (a) An
273	273	electing provider is eligible to receive support from the universal
274	274	service fund as provided by this chapter and Section 56.034.
275	275	(b) This chapter does not affect the eligibility of an
276	276	electing provider to receive support under Section 56.025.
277	277	SECTION 2. Section 56.021, Utilities Code, is amended to
278	278	read as follows:
279	279	Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The
280	280	commission shall adopt and enforce rules requiring local exchange
281	281	companies to establish a universal service fund to:
282	282	(1) assist telecommunications providers in providing
283	283	basic local telecommunications service at reasonable rates in high
284	284	cost rural areas under two plans:
285	285	(A) the Texas High Cost Universal Service Plan
286	286	(16 T.A.C. Section 26.403); and
287	287	(B) the Small and Rural Incumbent Local Exchange
288	288	Company Universal Service Plan (16 T.A.C. Section 26.404);
289	289	(2) reimburse the telecommunications carrier that
290	290	provides the statewide telecommunications relay access service
291	291	under Subchapter D;
292	292	(3) finance the specialized telecommunications
293	293	assistance program established under Subchapter E;
294	294	(4) reimburse the department and the commission for
295	295	costs incurred in implementing this chapter and Chapter 57;
296	296	(5) reimburse a telecommunications carrier providing
297	297	lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
298	298	amended;
299	299	(6) finance the implementation and administration of
300	300	an integrated eligibility process created under Section 17.007 for
301	301	customer service discounts relating to telecommunications
302	302	services, including outreach expenses the commission determines
303	303	are reasonable and necessary;
304	304	(7) reimburse a designated provider under Subchapter
305	305	F;
306	306	(8) reimburse a successor utility under Subchapter G;
307	307	[and]
308	308	(9) finance the program established under Subchapter
309	309	H; and
310	310	(10) assist telecommunications providers that are
311	311	small and rural local exchange companies in providing basic local
312	312	and advanced telecommunications services in high cost rural areas
313	313	through fulfilling infrastructure commitments under Chapter 53A,
314	314	as provided by Section 56.034.
315	315	SECTION 3. Subchapter B, Chapter 56, Utilities Code, is
316	316	amended by adding Section 56.034 to read as follows:
317	317	Sec. 56.034. SUPPORT FOR RURAL ADVANCED PLAN FOR
318	318	INFRASTRUCTURE DEPLOYMENT. (a) Support for the Rural Advanced Plan
319	319	for Infrastructure Deployment is available to telecommunications
320	320	providers who are electing providers under Chapter 53A.
321	321	(b) Not later than January 1, 2017, the commission shall
322	322	implement a mechanism for electing providers to transition support
323	323	from the Small and Rural Incumbent Local Exchange Company Universal
324	324	Service Plan to the Rural Advanced Plan for Infrastructure
325	325	Deployment. Until the mechanism is in place, an electing
326	326	provider's support level may not be decreased from the level the
327	327	provider receives on the date the commission receives notice under
328	328	Section 53A.004 of the provider's election.
329	329	(c) When a provider notifies the commission that it elects
330	330	to be subject to Chapter 53A, the provider shall request that the
331	331	commission determine and disburse support to the provider under
332	332	Subsection (d)(1) or (d)(2).
333	333	(d) An electing provider may request that the commission
334	334	disburse funds to the provider in fixed monthly amounts based on:
335	335	(1) the company's annualized amount of recovery from
336	336	the universal service fund for the fiscal year ending on August 31,
337	337	2017, but only if the commission receives notice under Section
338	338	53A.004 of the provider's election on or before September 1, 2017;
339	339	or
340	340	(2) an annualized support amount determined to be
341	341	sufficient, based on the Federal Communications Commission cost
342	342	study and independently audited financials of the provider for the
343	343	most recently ended fiscal year and when considered with other
344	344	revenues, to permit the company the opportunity to earn a
345	345	reasonable return in accordance with Section 53.051.
346	346	(e) The commission shall determine the initial support
347	347	level not later than the 60th day after the date the commission
348	348	receives the notice under Section 53A.004.
349	349	(f) An electing provider who requests to have the provider's
350	350	initial support level determined and disbursed under Subsection
351	351	(d)(1) may, not earlier than the first anniversary of the date of
352	352	the determination of initial support level, make a one-time request
353	353	to have the provider's fixed monthly support determined and
354	354	disbursed under Subsection (d)(2). Not later than the 60th day
355	355	after the date the commission receives a request under this
356	356	subsection, the commission shall recalculate the amount of the
357	357	electing provider's support as provided by Subsection (d)(2) and
358	358	the electing provider is considered to have made a request under
359	359	Subsection (d)(2) for the purposes of all future adjustments. This
360	360	subsection does not limit a provider's ability to make a request
361	361	under Subsection (g).
362	362	(g) Not earlier than the first anniversary of the date of
363	363	the determination of an initial support level the electing provider
364	364	will receive under Subsection (d), or after an election under
365	365	Subsection (f), the commission may, only for good cause and on its
366	366	own motion, or shall, on the written request of the provider,
367	367	initiate a proceeding to recalculate the annual support amount to
368	368	be used as the basis for the fixed monthly support amounts. The
369	369	commission shall base the recalculation under this subsection on an
370	370	annualized support amount determined to be sufficient, when
371	371	considered with other revenues, to permit the company the
372	372	opportunity to earn a reasonable return in accordance with Section
373	373	53.051. Except for good cause, the commission may not initiate a
374	374	proceeding to adjust a provider's support under this subsection
375	375	more frequently than once every three years.
376	376	(h) The commission shall adjust support disbursed under
377	377	Subsection (d)(2) automatically every three years using the
378	378	calculation prescribed by Subsection (d)(2). An adjustment
379	379	proceeding under this subsection must be completed in not more than
380	380	60 days.
381	381	SECTION 4. This Act takes effect September 1, 2015.