Texas 2021 - 87th Regular

Texas House Bill HB4373 Compare Versions

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11 By: Rodriguez H.B. No. 4373
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44 A BILL TO BE ENTITLED
55 AN ACT
66 relating to the universal service fund.
77 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
88 SECTION 1. Section 151.801, Tax Code, is amended by
99 amending Subsection (a) and adding Subsection (d-1) to read as
1010 follows:
1111 (a) Except for the amounts allocated under Subsections (b),
1212 (c), (c-2), [and] (c-3), and (d-1), all proceeds from the
1313 collection of the taxes imposed by this chapter shall be deposited
1414 to the credit of the general revenue fund.
1515 (d-1) The first $200 million of the proceeds received in a
1616 state fiscal year from the collection of the taxes imposed by this
1717 chapter on telecommunications services shall be deposited to the
1818 credit of the universal service fund sales tax receipts account in
1919 the general revenue fund. The comptroller shall determine the
2020 amount to be deposited under this subsection according to available
2121 statistical data indicating the estimated or actual total proceeds
2222 in this state from taxes imposed on the sale of telecommunications
2323 services.
2424 SECTION 2. Section 51.002, Utilities Code, is amended to
2525 read as follows:
2626 Sec. 51.002. DEFINITIONS. In this subtitle:
2727 (1) "Basic local telecommunications service" means:
2828 (A) flat rate residential and business local
2929 exchange telephone service, including primary directory listings;
3030 (B) tone dialing service;
3131 (C) [access to operator services]access to
3232 facilities with data transmission capability;
3333 (D) access to directory assistance services and
3434 operator services;
3535 (E) access to 911 service provided by a local
3636 authority or dual party relay service;
3737 (F) the ability to report service problems seven
3838 days a week;
3939 (G) lifeline and tel-assistance services; and
4040 (H) any other service the commission determines
4141 after a hearing is a basic local telecommunications service.
4242 SECTION 3. Subchapter A, Chapter 56, Utilities Code, is
4343 amended by adding Sections 56.003 and 56.004 to read as follows:
4444 Sec. 56.003. COMPTROLLER. A reference in this chapter to
4545 the commission means the comptroller.
4646 Sec. 56.004. PROHIBITION AGAINST CROSS-SUBSIDIZATION (a) A
4747 company that the commission determines willfully and knowingly uses
4848 support received under this chapter to subsidize an activity of the
4949 company that is not subject to rate regulation under this subtitle
5050 will be subject to a fine by the commission of up to $100,000. The
5151 commission may, by rule, determine a procedure for terminating the
5252 certification of a company that is found to have an ongoing pattern
5353 of such subsidization.
5454 SECTION 4. Section 56.021, Utilities Code, is amended to
5555 read as follows:
5656 Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED; SALES TAX
5757 RECEIPTS ACCOUNT. (a) The commission shall adopt and enforce rules
5858 requiring local exchange companies to establish a universal service
5959 fund to:
6060 (1) assist telecommunications providers in providing
6161 basic local telecommunications service at reasonable rates in high
6262 cost rural areas under two plans:
6363 (A) the Texas High Cost Universal Service Plan
6464 (16 T.A.C. Section 26.403); and
6565 (B) the Small and Rural Incumbent Local Exchange
6666 Company Universal Service Plan (16 T.A.C. Section 26.404);
6767 (2) reimburse the telecommunications carrier that
6868 provides the statewide telecommunications relay access service
6969 under Subchapter D;
7070 (3) finance the specialized telecommunications
7171 assistance program established under Subchapter E;
7272 (4) reimburse the department and the commission for
7373 costs incurred in implementing this chapter and Chapter 57;
7474 (5) reimburse a telecommunications carrier providing
7575 lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
7676 amended;
7777 (6) finance the implementation and administration of
7878 the identification process under Section 17.007 for
7979 telecommunications services;
8080 (7) reimburse a designated provider under Subchapter
8181 F;
8282 (8) reimburse a successor utility under Subchapter G;
8383 and
8484 (9) finance the program established under Subchapter
8585 H.
8686 (b) The universal service fund sales tax receipts account is
8787 an account in the general revenue fund administered by the
8888 commission. The account consists of revenue deposited to the
8989 account under Section 151.801(d-1), Tax Code. Money in the account
9090 is available to be appropriated for the purposes of this chapter.
9191 SECTION 5. Subchapter B, Chapter 56, Utilities Code, is
9292 amended by adding Sections 56.034 and 56.035 to read as follows:
9393 Sec. 56.034. SUPPORT ALLOCATION. Notwithstanding another
9494 provision of this chapter, the commission shall subdivide each
9595 exchange that serves both urban and rural areas and may require that
9696 support distributed under this chapter be used only for a rural
9797 portion of a subdivided exchange.
9898 Sec. 56.035. TRANSITION. (a) The commission shall create
9999 and publish a plan to:
100100 (1) over a 5-year period, gradually reduce the amount
101101 of distributions made from the fund for programs other than the
102102 programs described by Section 56.021(1);
103103 (b) The plan must include recommendations for statutory
104104 changes necessary to authorize the commission to execute the plan.
105105 SECTION 6. (a) In this section, "commission" means the
106106 Public Utility Commission of Texas.
107107 (b) On September 1, 2021:
108108 (1) all functions and activities related to the
109109 universal service fund established under Chapter 56, Utilities
110110 Code, performed by the commission immediately before that date are
111111 transferred to the comptroller;
112112 (2) all rules, fees, policies, procedures, decisions,
113113 and forms related to the universal service fund adopted by the
114114 commission are continued in effect as rules, fees, policies,
115115 procedures, decisions, and forms of the comptroller, as applicable,
116116 and remain in effect until amended or replaced by the comptroller;
117117 (3) a complaint, investigation, contested case, or
118118 other proceeding related to the universal service fund before the
119119 commission that is pending on September 1, 2021, is transferred
120120 without change in status to the comptroller;
121121 (4) all money, contracts, leases, property, and
122122 obligations related to the universal service fund are transferred
123123 to the comptroller;
124124 (5) all property related to the universal service fund
125125 in the custody of the commission is transferred to the comptroller;
126126 and
127127 (6) the unexpended and unobligated balance of any
128128 money appropriated by the legislature for the commission for the
129129 purpose of administering the universal service fund is transferred
130130 to the comptroller.
131131 (c) The commission shall provide the comptroller with
132132 access to any systems or information necessary for the comptroller
133133 to administer the universal service fund.
134134 (d) On September 1, 2021, all full-time equivalent employee
135135 positions at the commission that primarily concern the
136136 administration or enforcement of the universal service fund become
137137 positions at the office of the comptroller.
138138 SECTION 7. This Act takes effect September 1, 2021.