Texas 2017 - 85th Regular

Texas House Bill HB2659 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R2743 DDT/JJT-F
2	2	By: Geren H.B. No. 2659
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the distribution of universal service funds to certain
8	8	small and rural incumbent local exchange companies.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 56.032, Utilities Code, as effective
11	11	September 1, 2017, is amended to read as follows:
12	12	Sec. 56.032. ADJUSTMENTS: SMALL AND RURAL INCUMBENT LOCAL
13	13	EXCHANGE COMPANY UNIVERSAL SERVICE PLAN. (a) In this section:
14	14	(1) "Rate of return" means the Federal Communication
15	15	Commission's prescribed rate of return as of the date of any
16	16	determination, review, or adjustment under this section.
17	17	(2) "Small provider" means:
18	18	(A) an incumbent local exchange company or
19	19	cooperative that, on September 1, 2013, together with all local
20	20	exchange companies affiliated with the company or cooperative on
21	21	that date, served 31,000 or fewer access lines in this state; or
22	22	(B) a company or cooperative that is a successor
23	23	to a company or cooperative described by Paragraph (A).
24	24	(b) Except as otherwise provided by this section
25	25	[Subsections (d) and (e)], the commission may revise the monthly
26	26	support amounts to be made available from the Small and Rural
27	27	Incumbent Local Exchange Company Universal Service Plan by any
28	28	mechanism, including support reductions resulting from rate
29	29	rebalancing approved by the commission, after notice and an
30	30	opportunity for hearing. In determining appropriate monthly
31	31	support amounts, the commission shall consider the adequacy of
32	32	basic rates to support universal service.
33	33	(c) On the written request of a small provider that is not an
34	34	electing company under Chapter 58 or 59, the commission shall
35	35	determine and disburse support to the small provider in fixed
36	36	monthly amounts based on an annualized support amount the
37	37	commission determines to be sufficient to permit the small provider
38	38	the opportunity to earn a reasonable return in accordance with
39	39	Section 53.051. A small provider that makes a request under this
40	40	section is entitled to continue to receive the same level of support
41	41	it was receiving on the date of the written request until the
42	42	commission makes a determination or adjustment through the
43	43	mechanism described by Subsection (d).
44	44	(d) Not later than January 1, 2018, the commission shall
45	45	initiate rulemaking proceedings to develop and implement a
46	46	mechanism to determine the annualized support amount to be
47	47	disbursed under this section. The mechanism must be designed to:
48	48	(1) review or adjust support for each small provider
49	49	on an annual basis; and
50	50	(2) use the earnings monitoring report and any
51	51	underlying information the commission determines to be reasonably
52	52	necessary for the rulemaking process to determine whether support
53	53	levels provide an opportunity to earn a reasonable return.
54	54	(e) In a proceeding to adjust support levels using the
55	55	mechanism described by Subsection (d), the commission may consider
56	56	the small provider's information for a period not to exceed three
57	57	fiscal years before the date the proceeding is initiated.
58	58	(f) For purposes of the mechanism described by Subsection
59	59	(d), a return that is within three percentage points of the rate of
60	60	return is considered to be reasonable and a support adjustment may
61	61	not be made for a small provider whose return falls in that range
62	62	for the previous fiscal year.
63	63	(g) A small provider whose return is more than three
64	64	percentage points below the rate of return may file an application
65	65	that is eligible for administrative review or informal disposition
66	66	to adjust support to a level which would bring the small provider's
67	67	return into the range that would be considered reasonable under
68	68	Subsection (f). Except for good cause, a small provider who files
69	69	an application for adjustment under this subsection may not file a
70	70	subsequent application for adjustment before the third anniversary
71	71	of the date on which the small provider's most recent application
72	72	for adjustment is resolved.
73	73	(h) There is no presumption that the return is unreasonable
74	74	for a small provider whose return is more than three percentage
75	75	points above the rate of return. However, on its own motion, the
76	76	commission may initiate a proceeding to review the small provider's
77	77	support level and after notice and an opportunity for a hearing,
78	78	reduce the provider's level of support, if appropriate. Except for
79	79	good cause, the commission may not initiate a subsequent adjustment
80	80	proceeding for a small provider under this subsection before the
81	81	third anniversary of the date on which that small provider's most
82	82	recent adjustment proceeding is resolved.
83	83	(i) A small provider that is eligible to have support
84	84	determined and distributed under this section shall continue to
85	85	receive the same level of support it was receiving on August 31,
86	86	2017, until the earlier of:
87	87	(1) the date on which the commission makes a
88	88	determination or adjustment through the mechanism described by
89	89	Subsection (d); or
90	90	(2) the 61st day after the date the commission adopts
91	91	the mechanism described by Subsection (d).
92	92	(j) A report or information the commission requires a
93	93	telecommunications provider to provide under this section is
94	94	confidential and is not subject to disclosure under Chapter 552,
95	95	Government Code. In any proceeding related to Subsection (d), a
96	96	third party's access to confidential information is subject to an
97	97	appropriate protective order.
98	98	(k) [(g)] This section does not affect the commission's
99	99	authority under Chapter 53 or this chapter.
100	100	[(h) Subsections (a), (c), (d), (e), and (f) and any monthly
101	101	support amount approved under those subsections expire September 1,
102	102	2017.]
103	103	SECTION 2. This Act takes effect September 1, 2017.