Texas House Bill HB2659

Texas 2017 - 85th Regular

Caption

Relating to the distribution of universal service funds to certain small and rural incumbent local exchange companies.

Impact

The bill's adjustments to the distribution mechanism for universal service funds is set to directly impact the operations and financial stability of small and rural telecommunications companies in Texas. By allowing these companies to receive fixed monthly support, it aims to facilitate a reasonable rate of return, which may promote further investment in infrastructure and service improvements. This is particularly significant as rural areas often face challenges in maintaining adequate telecommunications services due to the high costs associated with infrastructure development.

Summary

House Bill 2659 pertains to the distribution of universal service funds specifically tailored for small and rural incumbent local exchange companies. The bill aims to amend existing provisions within the Utilities Code, establishing new frameworks for support distribution to small telecommunications providers. The legislation emphasizes ensuring that these small providers can receive sufficient financial backing to offer effective services, thereby enhancing the quality of telecommunications in less populated areas, which are often underserved compared to urban locales.

Contention

While the bill offers potential benefits to rural service providers, there remain underlying concerns regarding how these funds will be managed and distributed. Some stakeholders might argue that the bill does not adequately address the competitive landscape of telecom services or the specifics of what constitutes a 'reasonable return.' Moreover, the legislation may draw scrutiny over its provisions for confidentiality regarding the financial data of telecommunications providers, which could hinder transparency and accountability in expenditures and allocations of these universal service funds.

Implementation

If HB 2659 is enacted, it will require the commission to undertake rulemaking proceedings aimed at developing an effective mechanism for recurring evaluations of support amounts for small providers. Such assessments will likely consider financial performance over a span of years to ensure continued alignments with economic realities and operational demands. Overall, the bill's implementation reflects an ongoing commitment to fostering greater access and quality in telecommunications, particularly for rural populations throughout Texas.