84R9639 JXC-D
By: Guillen H.B. No. 3440
A BILL TO BE ENTITLED
AN ACT
relating to eligibility of certain rural companies for support from
the universal service fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 56.021, Utilities Code, is amended to
read as follows:
Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The
commission shall adopt and enforce rules requiring local exchange
companies to establish a universal service fund to:
(1) assist telecommunications providers in providing
basic local telecommunications service at reasonable rates in high
cost rural areas under two plans:
(A) the Texas High Cost Universal Service Plan
(16 T.A.C. Section 26.403); and
(B) the Small and Rural Incumbent Local Exchange
Company Universal Service Plan (16 T.A.C. Section 26.404);
(2) reimburse the telecommunications carrier that
provides the statewide telecommunications relay access service
under Subchapter D;
(3) finance the specialized telecommunications
assistance program established under Subchapter E;
(4) reimburse the department and the commission for
costs incurred in implementing this chapter and Chapter 57;
(5) reimburse a telecommunications carrier providing
lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
amended;
(6) finance the implementation and administration of
an integrated eligibility process created under Section 17.007 for
customer service discounts relating to telecommunications
services, including outreach expenses the commission determines
are reasonable and necessary;
(7) reimburse a designated provider under Subchapter
F;
(8) reimburse a successor utility under Subchapter G;
[and]
(9) finance the program established under Subchapter
H; and
(10) finance the rural basic and broadband service
program established under Subchapter I.
SECTION 2. Chapter 56, Utilities Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. RURAL BASIC AND BROADBAND SERVICE PROGRAM
Sec. 56.351. SUPPORT FOR BASIC AND BROADBAND SERVICES IN
RURAL AREAS. (a) The commission shall provide from the universal
service fund financial assistance for a telecommunications
provider that holds a certificate of operating authority or a
service provider certificate of operating authority to build and
maintain facility-based networks capable of providing access to
basic local telecommunications service and broadband service in
rural areas of this state where:
(1) an incumbent local exchange company no longer
seeks support for a particular exchange; and
(2) support is necessary to allow the provision of
services at rates comparable to the benchmark rates established by
the Federal Communications Commission.
(b) Support received under this subchapter may not be used
for a purpose other than a purpose described by Subsection (a).
(c) In an area where an incumbent local exchange company
provides service and seeks support from the universal service fund,
telecommunications providers eligible to receive support under
this subchapter will continue to receive per-line support identical
to the support received by the incumbent local exchange company.
Sec. 56.352. NETWORK STANDARDS. The commission by rule
shall establish standards for networks built or maintained using
support disbursed under this subchapter. The standards must require
a network to provide basic local telecommunications service and
broadband service and be consistent with standards established by
the federal government.
Sec. 56.353. SUPPORT LEVEL. (a) The commission shall adopt
rules to ensure that support provided under this subchapter is
calculated in a manner that is consistent with standard accounting
principles.
(b) Until the commission determines the level of support
necessary to allow a telecommunications provider eligible to
receive support under this subchapter to fulfill the requirements
of this subchapter:
(1) on or before September 1, 2017, the provider is
entitled to receive at least the level of support the provider is
entitled to receive on the date the provider requests support from
the commission; and
(2) after September 1, 2017, the provider is entitled
to receive at least the level of support the provider is entitled to
receive under commission rules effective on September 1, 2017.
SECTION 3. This Act takes effect September 1, 2015.