86R367 GRM-D
By: King of Hemphill H.B. No. 669
A BILL TO BE ENTITLED
AN ACT
relating to eligibility of certain local exchange companies for
support from the universal service fund for the provision of
broadband service.
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
the identification process under Section 17.007 for
telecommunications services;
(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 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 BROADBAND SERVICE PROGRAM
Sec. 56.351. DEFINITION. For the purposes of this
subchapter, "broadband service" means a mass-market retail service
by wire or radio that provides the capability to transmit data to
and receive data from all or substantially all Internet endpoints.
The term includes any capabilities that are incidental to and
enable the operation of the communications service but does not
include dial-up Internet access service.
Sec. 56.352. SUPPORT FOR BROADBAND SERVICES IN RURAL AREAS.
(a) The commission shall provide from the universal service fund
financial assistance for an incumbent local exchange company to
build and maintain facility-based networks capable of providing
access to broadband service in rural areas of this state where
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) The commission by rule shall adopt criteria for areas of
this state to qualify as rural areas for the purposes of this
subchapter.
Sec. 56.353. 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 broadband service and be consistent
with standards established by the federal government.
Sec. 56.354. ACCOUNTING. 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.
SECTION 3. This Act takes effect September 1, 2019.