87R10925 JAM-F By: Perry S.B. No. 1246 A BILL TO BE ENTITLED AN ACT relating to universal service fund assistance to high cost rural areas and the uniform charge that funds the universal service fund; authorizing a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 51.002(10), Utilities Code, is amended to read as follows: (10) "Telecommunications provider": (A) means: (i) a certificated telecommunications utility; (ii) a shared tenant service provider; (iii) a nondominant carrier of telecommunications services; (iv) a provider of commercial mobile service as defined by Section 332(d), Communications Act of 1934 (47 U.S.C. Section 151 et seq.), Federal Communications Commission rules, and the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66), except that the term does not include these entities for the purposes of Chapter 17, 55, or 64; (v) a telecommunications entity that provides central office based PBX-type sharing or resale arrangements; (vi) an interexchange telecommunications carrier; (vii) a specialized common carrier; (viii) a reseller of communications; (ix) a provider of operator services; (x) a provider of customer-owned pay telephone service; [or] (xi) a provider of Voice over Internet Protocol service; or (xii) a person or entity determined by the commission to provide telecommunications services to customers in this state; and (B) does not mean: (i) a provider of enhanced or information services, or another user of telecommunications services, who does not also provide telecommunications services; or (ii) a state agency or state institution of higher education, or a service provided by a state agency or state institution of higher education. SECTION 2. Section 56.001, Utilities Code, is amended by adding Subdivision (3) to read as follows: (3) "High cost rural area" means an area: (A) served by a small provider as defined by Section 56.032; or (B) served by a local exchange company that receives support under the Texas High Cost Universal Service Plan (16 T.A.C. Section 26.403) or the Small and Rural Incumbent Local Exchange Company Universal Service Plan (16 T.A.C. Section 26.404) and in which: (i) the population has not since increased by more than 100 percent since the year 2000; and (ii) there are less than 30 customers per route mile of plant in service. SECTION 3. Section 56.022(c), Utilities Code, is amended to read as follows: (c) The uniform charge is on services and at rates the commission determines and may be in the form of a fee or an assessment on revenues. 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; (2) assess the charge on pay telephone service; [or] (3) subject a telecommunications provider to unreasonable prejudice or disadvantage; or (4) assess the charge in a manner that is not technology neutral or grants an unreasonable preference based on technology. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2021.