86R24940 GRM-D
By: King of Hemphill, et al. H.B. No. 669
Substitute the following for H.B. No. 669:
By: Phelan C.S.H.B. No. 669
A BILL TO BE ENTITLED
AN ACT
relating to the use of the universal service fund for the provision
of broadband service in underserved rural areas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 56.001, Utilities Code, is amended by
adding Subdivisions (3) and (4) to read as follows:
(3) "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.
(4) "Broadband service provider" means a provider of
broadband service.
SECTION 2. Subchapter A, Chapter 56, Utilities Code, is
amended by adding Section 56.003 to read as follows:
Sec. 56.003. JURISDICTION OVER BROADBAND SERVICE
PROVIDERS. (a) The commission has jurisdiction relating to
broadband service providers only as necessary to enforce this
chapter and rules adopted under this chapter.
(b) This chapter does not otherwise grant the commission
authority to regulate broadband services or broadband service
providers.
SECTION 3. 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, and only those broadband service providers that elect to
participate in the program under Subchapter I, 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) provide support for the rural broadband service
program established under Subchapter I.
SECTION 4. Section 56.022, Utilities Code, is amended to
read as follows:
Sec. 56.022. UNIFORM CHARGE. (a) The universal service
fund is funded by a statewide uniform charge payable by each:
(1) telecommunications provider that has access to the
customer base; and
(2) broadband service provider only to the extent the
provider elects to participate in the program under Subchapter I.
(b) Each [A] telecommunications provider and each broadband
service provider that elects to participate in the program under
Subchapter I shall pay the charge in accordance with procedures
approved by the commission.
(c) The uniform charge is on services and at rates the
commission determines. In establishing the charge and the services
to which the charge will apply, the commission may not:
(1) grant an unreasonable preference or advantage to a
telecommunications provider or a broadband service provider that
elects to participate in the program under Subchapter I;
(2) assess the charge on pay telephone service; or
(3) subject a telecommunications provider or electing
broadband service provider to unreasonable prejudice or
disadvantage.
(d) The commission may establish separate uniform charges
for telecommunications providers and broadband service providers.
(e) Funds from the uniform charge on telecommunications
providers may only be used to fund programs under Sections
56.021(1) through (9). Funds from the uniform charge on broadband
service providers that elect to participate in the program under
Subchapter I may only be used to fund the rural broadband service
program under Section 56.021(10).
(f) The commission may assess a uniform charge on a
broadband service provider only if the provider notifies the
commission of the provider's election to participate in the program
established under Subchapter I.
(g) A broadband service provider may notify the commission
at any time of the provider's intention to discontinue its
participation. The election is effective on the 60th day after the
date of the notification.
SECTION 5. Subchapter B, Chapter 56, Utilities Code, is
amended by adding Section 56.0235 to read as follows:
Sec. 56.0235. COMMISSION POWERS AND DUTIES RELATING TO
ELECTING BROADBAND SERVICE PROVIDERS. In addition to the powers
and duties provided by Section 56.023, the commission shall:
(1) adopt eligibility criteria for broadband service
providers that elect to participate in the program under Subchapter
I and review procedures, including a method for administrative
review, the commission finds necessary to manage crediting the
broadband charge receipts to the universal service fund in
accordance with Section 56.022(f) for the purposes of Subchapter I
and to make distributions of the broadband charge receipts from
that fund to electing broadband service providers;
(2) determine which electing broadband service
providers meet the eligibility criteria; and
(3) approve procedures for the collection and
disbursal to electing broadband service providers of the broadband
charge receipts the universal service fund received from electing
broadband service providers.
SECTION 6. Sections 56.024(a) and (b), Utilities Code, are
amended to read as follows:
(a) The commission may require a telecommunications
provider, or a broadband service provider that elects to
participate in the program under Subchapter I, to provide a report
or information necessary to assess contributions, broadband
charges, and disbursements to the universal service fund.
(b) A report or information the commission requires a
telecommunications provider, or a broadband service provider that
elects to participate in the program under Subchapter I, to provide
under Subsection (a) is confidential and not subject to disclosure
under Chapter 552, Government Code.
SECTION 7. Chapter 56, Utilities Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. RURAL BROADBAND SERVICE PROGRAM
Sec. 56.351. SUPPORT FOR BROADBAND SERVICES IN UNDERSERVED
RURAL AREAS. (a) The commission shall provide from broadband
charge receipts from electing providers, support for broadband
service providers to offer retail broadband service in underserved
rural areas of this state 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 underserved rural areas for the purposes of
this subchapter.
(d) A broadband service provider must notify the commission
of the provider's election to participate in the program
established under this subchapter and pay the uniform charge under
Section 56.022 before the provider may receive financial assistance
under this subchapter.
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 broadband service and be consistent
with standards established by the federal government.
Sec. 56.353. 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 8. This Act takes effect September 1, 2019.