1 | 1 | | By: Springer S.B. No. 1813 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | A BILL TO BE ENTITLED |
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5 | 5 | | AN ACT |
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6 | 6 | | relating to the universal service fund. |
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7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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8 | 8 | | SECTION 1. Section 151.801, Tax Code, is amended by |
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9 | 9 | | amending Subsection (a) and adding Subsection (d-1) to read as |
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10 | 10 | | follows: |
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11 | 11 | | (a) Except for the amounts allocated under Subsections (b), |
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12 | 12 | | (c), (c-2), [and] (c-3), and (d-1), all proceeds from the |
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13 | 13 | | collection of the taxes imposed by this chapter shall be deposited |
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14 | 14 | | to the credit of the general revenue fund. |
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15 | 15 | | (d-1) The first $200 million of the proceeds received in a |
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16 | 16 | | state fiscal year from the collection of the taxes imposed by this |
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17 | 17 | | chapter on telecommunications services shall be deposited to the |
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18 | 18 | | credit of the universal service fund sales tax receipts account in |
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19 | 19 | | the general revenue fund. The comptroller shall determine the |
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20 | 20 | | amount to be deposited under this subsection according to available |
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21 | 21 | | statistical data indicating the estimated or actual total proceeds |
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22 | 22 | | in this state from taxes imposed on the sale of telecommunications |
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23 | 23 | | services. |
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24 | 24 | | SECTION 2. Section 51.002, Utilities Code, is amended to |
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25 | 25 | | read as follows: |
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26 | 26 | | Sec. 51.002. DEFINITIONS. In this subtitle: |
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27 | 27 | | (1) "Basic local telecommunications service" means: |
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28 | 28 | | (A) flat rate residential and business local exchange |
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29 | 29 | | telephone service, including primary directory listings; |
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30 | 30 | | (B) tone dialing service; |
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31 | 31 | | (C) [access to operator services]access to facilities with |
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32 | 32 | | the capability of carrying data or broadband signals ; |
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33 | 33 | | (D) access to directory assistance services and operator |
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34 | 34 | | services; |
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35 | 35 | | (E) access to 911 service provided by a local authority or |
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36 | 36 | | dual party relay service; |
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37 | 37 | | (F) the ability to report service problems seven days a |
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38 | 38 | | week; |
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39 | 39 | | (G) lifeline and tel-assistance services; and |
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40 | 40 | | (H) any other service the commission determines after a |
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41 | 41 | | hearing is a basic local telecommunications service. |
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42 | 42 | | SECTION 3. Section 51.002 (10), Utilities Code, is amended |
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43 | 43 | | to read as follows: |
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44 | 44 | | (10) "Telecommunications provider"; |
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45 | 45 | | (A) means: |
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46 | 46 | | (i) a certificated telecommunications utility; |
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47 | 47 | | (ii) a shared tenant service provider; |
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48 | 48 | | (iii) a nondominant carrier of telecommunications |
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49 | 49 | | services; |
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50 | 50 | | (iv) a provider of commercial mobile service as |
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51 | 51 | | defined by Section 332(d), Communications Act of 1934 (47 U.S.C. |
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52 | 52 | | Section 14 151 et seq.), Federal Communications Commission rules, |
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53 | 53 | | and the Omnibus Budget Reconciliation Act of 1993 (Public Law |
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54 | 54 | | 103-66), except that the term does not include these entities for |
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55 | 55 | | the purposes of Chapter 17, 55, or 64; |
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56 | 56 | | (v) a telecommunications entity that provides central |
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57 | 57 | | 19 office based PBX-type sharing or resale arrangements; |
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58 | 58 | | (vi) an interexchange telecommunications carrier; |
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59 | 59 | | (vii) a specialized common carrier; |
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60 | 60 | | (viii) a reseller of communications; |
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61 | 61 | | (ix) a provider of operator services; |
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62 | 62 | | (x) a provider of customer-owned pay telephone |
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63 | 63 | | service; |
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64 | 64 | | (xi) a provider of Voice over Internet Protocol |
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65 | 65 | | service; or |
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66 | 66 | | [(xi)](xii) a person or entity determined by the commission to |
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67 | 67 | | provide telecommunications services to customers in this state; and |
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68 | 68 | | (B) does not mean; |
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69 | 69 | | (i) a provider of enhanced or information services, or another |
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70 | 70 | | user of telecommunications services, who does not also provided |
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71 | 71 | | telecommunications services; or |
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72 | 72 | | (ii) a state agency or institution of higher education, or a |
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73 | 73 | | service provided by a state agency or state institution of higher |
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74 | 74 | | education. |
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75 | 75 | | SECTION 4. Section 56.022, Utilities Code, is amended to |
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76 | 76 | | read as follows: |
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77 | 77 | | Sec. 56.022. UNIFORM CHARGE. |
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78 | 78 | | (a) The universal service fund is funded by a statewide |
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79 | 79 | | uniform charge payable by each telecommunication provider that has |
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80 | 80 | | access to the customer base. |
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81 | 81 | | (b) A telecommunications provider shall pay the charge in |
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82 | 82 | | accordance with procedures approved by the commission. |
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83 | 83 | | (c) The uniform charge is on services and at rates the |
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84 | 84 | | commission determines and may be in the form of a fee or an |
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85 | 85 | | assessment on revenues. In establishing the charge and the services |
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86 | 86 | | to which the charge will apply, the commission may not: |
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87 | 87 | | (1) grant an unreasonable preference or advantage to a |
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88 | 88 | | telecommunications provider; |
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89 | 89 | | (2) assess the charge on pay telephone service; [or] |
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90 | 90 | | (3) subject a telecommunications provider to unreasonable |
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91 | 91 | | prejudice or disadvantage; or |
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92 | 92 | | (4) assess the charge in a manner that is not technology |
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93 | 93 | | neutral or grants an unreasonable preference based on technology. |
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94 | 94 | | SECTION 5. Subchapter A, Chapter 56, Utilities Code, is |
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95 | 95 | | amended by adding Sections 56.003 and 56.004 to read as follows: |
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96 | 96 | | Sec. 56.003. COMPTROLLER. A reference in this chapter to |
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97 | 97 | | the commission means the comptroller. |
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98 | 98 | | Sec. 56.004. PROHIBITION AGAINST CROSS-SUBSIDIZATION (a) A |
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99 | 99 | | company that the Commission determines willfully and knowingly uses |
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100 | 100 | | support received under this chapter to subsidize an activity of the |
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101 | 101 | | company that is not subject to rate regulation under this subtitle |
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102 | 102 | | will be subject to a fine by the commission of up to $100,000. The |
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103 | 103 | | Commission may, by rule, determine a procedure for terminating the |
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104 | 104 | | certification of a company that is found to have an ongoing pattern |
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105 | 105 | | of such subsidization. |
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106 | 106 | | SECTION 6. Section 56.021, Utilities Code, is amended to |
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107 | 107 | | read as follows: |
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108 | 108 | | Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED; SALES TAX |
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109 | 109 | | RECEIPTS ACCOUNT. (a) The commission shall adopt and enforce rules |
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110 | 110 | | requiring local exchange companies to establish a universal service |
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111 | 111 | | fund to: |
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112 | 112 | | (1) assist telecommunications providers in providing |
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113 | 113 | | basic local telecommunications service at reasonable rates in high |
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114 | 114 | | cost rural areas under two plans: |
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115 | 115 | | (A) the Texas High Cost Universal Service Plan |
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116 | 116 | | (16 T.A.C. Section 26.403); and |
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117 | 117 | | (B) the Small and Rural Incumbent Local Exchange |
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118 | 118 | | Company Universal Service Plan (16 T.A.C. Section 26.404); |
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119 | 119 | | (2) reimburse the telecommunications carrier that |
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120 | 120 | | provides the statewide telecommunications relay access service |
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121 | 121 | | under Subchapter D; |
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122 | 122 | | (3) finance the specialized telecommunications |
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123 | 123 | | assistance program established under Subchapter E; |
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124 | 124 | | (4) reimburse the department and the commission for |
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125 | 125 | | costs incurred in implementing this chapter and Chapter 57; |
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126 | 126 | | (5) reimburse a telecommunications carrier providing |
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127 | 127 | | lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as |
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128 | 128 | | amended; |
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129 | 129 | | (6) finance the implementation and administration of |
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130 | 130 | | the identification process under Section 17.007 for |
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131 | 131 | | telecommunications services; |
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132 | 132 | | (7) reimburse a designated provider under Subchapter |
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133 | 133 | | F; |
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134 | 134 | | (8) reimburse a successor utility under Subchapter G; |
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135 | 135 | | and |
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136 | 136 | | (9) finance the program established under Subchapter |
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137 | 137 | | H. |
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138 | 138 | | (b) The universal service fund sales tax receipts account is |
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139 | 139 | | an account in the general revenue fund administered by the |
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140 | 140 | | commission. The account consists of revenue deposited to the |
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141 | 141 | | account under Section 151.801(d-1), Tax Code. Money in the account |
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142 | 142 | | is available to be appropriated for the purposes of this chapter. |
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143 | 143 | | SECTION 7. Subchapter B, Chapter 56, Utilities Code, is |
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144 | 144 | | amended by adding Sections 56.034 and 56.035 to read as follows: |
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145 | 145 | | Sec. 56.034. SUPPORT ALLOCATION. Notwithstanding another |
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146 | 146 | | provision of this chapter, the commission shall subdivide each |
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147 | 147 | | exchange that serves both urban and rural areas and may require that |
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148 | 148 | | support distributed under this chapter be used only for a rural |
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149 | 149 | | portion of a subdivided exchange. |
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150 | 150 | | Sec. 56.035. TRANSITION. (a) The commission shall create |
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151 | 151 | | and publish a plan to: |
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152 | 152 | | (1) over a 15-year period, gradually reduce the amount |
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153 | 153 | | of distributions made from the fund for programs other than the |
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154 | 154 | | programs described by Section 56.021(1); |
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155 | 155 | | (b) The plan must include recommendations for statutory |
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156 | 156 | | changes necessary to authorize the commission to execute the plan. |
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157 | 157 | | SECTION 8. (a) In this section, "commission" means the |
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158 | 158 | | Public Utility Commission of Texas. |
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159 | 159 | | (b) On September 1, 2021: |
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160 | 160 | | (1) all functions and activities related to the |
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161 | 161 | | universal service fund established under Chapter 56, Utilities |
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162 | 162 | | Code, performed by the commission immediately before that date are |
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163 | 163 | | transferred to the comptroller; |
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164 | 164 | | (2) all rules, fees, policies, procedures, decisions, |
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165 | 165 | | and forms related to the universal service fund adopted by the |
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166 | 166 | | commission are continued in effect as rules, fees, policies, |
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167 | 167 | | procedures, decisions, and forms of the comptroller, as applicable, |
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168 | 168 | | and remain in effect until amended or replaced by the comptroller; |
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169 | 169 | | (3) a complaint, investigation, contested case, or |
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170 | 170 | | other proceeding related to the universal service fund before the |
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171 | 171 | | commission that is pending on September 1, 2021, is transferred |
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172 | 172 | | without change in status to the comptroller; |
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173 | 173 | | (4) all money, contracts, leases, property, and |
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174 | 174 | | obligations related to the universal service fund are transferred |
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175 | 175 | | to the comptroller; |
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176 | 176 | | (5) all property related to the universal service fund |
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177 | 177 | | in the custody of the commission is transferred to the comptroller; |
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178 | 178 | | and |
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179 | 179 | | (6) the unexpended and unobligated balance of any |
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180 | 180 | | money appropriated by the legislature for the commission for the |
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181 | 181 | | purpose of administering the universal service fund is transferred |
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182 | 182 | | to the comptroller. |
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183 | 183 | | (c) The commission shall provide the comptroller with |
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184 | 184 | | access to any systems or information necessary for the comptroller |
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185 | 185 | | to administer the universal service fund. |
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186 | 186 | | (d) On September 1, 2021, all full-time equivalent employee |
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187 | 187 | | positions at the commission that primarily concern the |
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188 | 188 | | administration or enforcement of the universal service fund become |
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189 | 189 | | positions at the office of the comptroller. |
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190 | 190 | | SECTION 9. This Act takes effect September 1, 2021. |
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