Texas 2021 - 87th Regular

Texas Senate Bill SB1813 Compare Versions

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11 By: Springer S.B. No. 1813
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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 exchange
2929 telephone service, including primary directory listings;
3030 (B) tone dialing service;
3131 (C) [access to operator services]access to facilities with
3232 the capability of carrying data or broadband signals ;
3333 (D) access to directory assistance services and operator
3434 services;
3535 (E) access to 911 service provided by a local authority or
3636 dual party relay service;
3737 (F) the ability to report service problems seven days a
3838 week;
3939 (G) lifeline and tel-assistance services; and
4040 (H) any other service the commission determines after a
4141 hearing is a basic local telecommunications service.
4242 SECTION 3. Section 51.002 (10), Utilities Code, is amended
4343 to read as follows:
4444 (10) "Telecommunications provider";
4545 (A) means:
4646 (i) a certificated telecommunications utility;
4747 (ii) a shared tenant service provider;
4848 (iii) a nondominant carrier of telecommunications
4949 services;
5050 (iv) a provider of commercial mobile service as
5151 defined by Section 332(d), Communications Act of 1934 (47 U.S.C.
5252 Section 14 151 et seq.), Federal Communications Commission rules,
5353 and the Omnibus Budget Reconciliation Act of 1993 (Public Law
5454 103-66), except that the term does not include these entities for
5555 the purposes of Chapter 17, 55, or 64;
5656 (v) a telecommunications entity that provides central
5757 19 office based PBX-type sharing or resale arrangements;
5858 (vi) an interexchange telecommunications carrier;
5959 (vii) a specialized common carrier;
6060 (viii) a reseller of communications;
6161 (ix) a provider of operator services;
6262 (x) a provider of customer-owned pay telephone
6363 service;
6464 (xi) a provider of Voice over Internet Protocol
6565 service; or
6666 [(xi)](xii) a person or entity determined by the commission to
6767 provide telecommunications services to customers in this state; and
6868 (B) does not mean;
6969 (i) a provider of enhanced or information services, or another
7070 user of telecommunications services, who does not also provided
7171 telecommunications services; or
7272 (ii) a state agency or institution of higher education, or a
7373 service provided by a state agency or state institution of higher
7474 education.
7575 SECTION 4. Section 56.022, Utilities Code, is amended to
7676 read as follows:
7777 Sec. 56.022. UNIFORM CHARGE.
7878 (a) The universal service fund is funded by a statewide
7979 uniform charge payable by each telecommunication provider that has
8080 access to the customer base.
8181 (b) A telecommunications provider shall pay the charge in
8282 accordance with procedures approved by the commission.
8383 (c) The uniform charge is on services and at rates the
8484 commission determines and may be in the form of a fee or an
8585 assessment on revenues. In establishing the charge and the services
8686 to which the charge will apply, the commission may not:
8787 (1) grant an unreasonable preference or advantage to a
8888 telecommunications provider;
8989 (2) assess the charge on pay telephone service; [or]
9090 (3) subject a telecommunications provider to unreasonable
9191 prejudice or disadvantage; or
9292 (4) assess the charge in a manner that is not technology
9393 neutral or grants an unreasonable preference based on technology.
9494 SECTION 5. Subchapter A, Chapter 56, Utilities Code, is
9595 amended by adding Sections 56.003 and 56.004 to read as follows:
9696 Sec. 56.003. COMPTROLLER. A reference in this chapter to
9797 the commission means the comptroller.
9898 Sec. 56.004. PROHIBITION AGAINST CROSS-SUBSIDIZATION (a) A
9999 company that the Commission determines willfully and knowingly uses
100100 support received under this chapter to subsidize an activity of the
101101 company that is not subject to rate regulation under this subtitle
102102 will be subject to a fine by the commission of up to $100,000. The
103103 Commission may, by rule, determine a procedure for terminating the
104104 certification of a company that is found to have an ongoing pattern
105105 of such subsidization.
106106 SECTION 6. Section 56.021, Utilities Code, is amended to
107107 read as follows:
108108 Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED; SALES TAX
109109 RECEIPTS ACCOUNT. (a) The commission shall adopt and enforce rules
110110 requiring local exchange companies to establish a universal service
111111 fund to:
112112 (1) assist telecommunications providers in providing
113113 basic local telecommunications service at reasonable rates in high
114114 cost rural areas under two plans:
115115 (A) the Texas High Cost Universal Service Plan
116116 (16 T.A.C. Section 26.403); and
117117 (B) the Small and Rural Incumbent Local Exchange
118118 Company Universal Service Plan (16 T.A.C. Section 26.404);
119119 (2) reimburse the telecommunications carrier that
120120 provides the statewide telecommunications relay access service
121121 under Subchapter D;
122122 (3) finance the specialized telecommunications
123123 assistance program established under Subchapter E;
124124 (4) reimburse the department and the commission for
125125 costs incurred in implementing this chapter and Chapter 57;
126126 (5) reimburse a telecommunications carrier providing
127127 lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
128128 amended;
129129 (6) finance the implementation and administration of
130130 the identification process under Section 17.007 for
131131 telecommunications services;
132132 (7) reimburse a designated provider under Subchapter
133133 F;
134134 (8) reimburse a successor utility under Subchapter G;
135135 and
136136 (9) finance the program established under Subchapter
137137 H.
138138 (b) The universal service fund sales tax receipts account is
139139 an account in the general revenue fund administered by the
140140 commission. The account consists of revenue deposited to the
141141 account under Section 151.801(d-1), Tax Code. Money in the account
142142 is available to be appropriated for the purposes of this chapter.
143143 SECTION 7. Subchapter B, Chapter 56, Utilities Code, is
144144 amended by adding Sections 56.034 and 56.035 to read as follows:
145145 Sec. 56.034. SUPPORT ALLOCATION. Notwithstanding another
146146 provision of this chapter, the commission shall subdivide each
147147 exchange that serves both urban and rural areas and may require that
148148 support distributed under this chapter be used only for a rural
149149 portion of a subdivided exchange.
150150 Sec. 56.035. TRANSITION. (a) The commission shall create
151151 and publish a plan to:
152152 (1) over a 15-year period, gradually reduce the amount
153153 of distributions made from the fund for programs other than the
154154 programs described by Section 56.021(1);
155155 (b) The plan must include recommendations for statutory
156156 changes necessary to authorize the commission to execute the plan.
157157 SECTION 8. (a) In this section, "commission" means the
158158 Public Utility Commission of Texas.
159159 (b) On September 1, 2021:
160160 (1) all functions and activities related to the
161161 universal service fund established under Chapter 56, Utilities
162162 Code, performed by the commission immediately before that date are
163163 transferred to the comptroller;
164164 (2) all rules, fees, policies, procedures, decisions,
165165 and forms related to the universal service fund adopted by the
166166 commission are continued in effect as rules, fees, policies,
167167 procedures, decisions, and forms of the comptroller, as applicable,
168168 and remain in effect until amended or replaced by the comptroller;
169169 (3) a complaint, investigation, contested case, or
170170 other proceeding related to the universal service fund before the
171171 commission that is pending on September 1, 2021, is transferred
172172 without change in status to the comptroller;
173173 (4) all money, contracts, leases, property, and
174174 obligations related to the universal service fund are transferred
175175 to the comptroller;
176176 (5) all property related to the universal service fund
177177 in the custody of the commission is transferred to the comptroller;
178178 and
179179 (6) the unexpended and unobligated balance of any
180180 money appropriated by the legislature for the commission for the
181181 purpose of administering the universal service fund is transferred
182182 to the comptroller.
183183 (c) The commission shall provide the comptroller with
184184 access to any systems or information necessary for the comptroller
185185 to administer the universal service fund.
186186 (d) On September 1, 2021, all full-time equivalent employee
187187 positions at the commission that primarily concern the
188188 administration or enforcement of the universal service fund become
189189 positions at the office of the comptroller.
190190 SECTION 9. This Act takes effect September 1, 2021.