By: Springer S.B. No. 1813
A BILL TO BE ENTITLED
AN ACT
relating to the universal service fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.801, Tax Code, is amended by
amending Subsection (a) and adding Subsection (d-1) to read as
follows:
(a) Except for the amounts allocated under Subsections (b),
(c), (c-2), [and] (c-3), and (d-1), all proceeds from the
collection of the taxes imposed by this chapter shall be deposited
to the credit of the general revenue fund.
(d-1) The first $200 million of the proceeds received in a
state fiscal year from the collection of the taxes imposed by this
chapter on telecommunications services shall be deposited to the
credit of the universal service fund sales tax receipts account in
the general revenue fund. The comptroller shall determine the
amount to be deposited under this subsection according to available
statistical data indicating the estimated or actual total proceeds
in this state from taxes imposed on the sale of telecommunications
services.
SECTION 2. Section 51.002, Utilities Code, is amended to
read as follows:
Sec. 51.002. DEFINITIONS. In this subtitle:
(1) "Basic local telecommunications service" means:
(A) flat rate residential and business local exchange
telephone service, including primary directory listings;
(B) tone dialing service;
(C) [access to operator services]access to facilities with
the capability of carrying data or broadband signals ;
(D) access to directory assistance services and operator
services;
(E) access to 911 service provided by a local authority or
dual party relay service;
(F) the ability to report service problems seven days a
week;
(G) lifeline and tel-assistance services; and
(H) any other service the commission determines after a
hearing is a basic local telecommunications service.
SECTION 3. 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 14 151 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
19 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;
(xi) a provider of Voice over Internet Protocol
service; or
[(xi)](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 provided
telecommunications services; or
(ii) a state agency or institution of higher education, or a
service provided by a state agency or state institution of higher
education.
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 telecommunication provider that has
access to the customer base.
(b) A telecommunications provider 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 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 5. Subchapter A, Chapter 56, Utilities Code, is
amended by adding Sections 56.003 and 56.004 to read as follows:
Sec. 56.003. COMPTROLLER. A reference in this chapter to
the commission means the comptroller.
Sec. 56.004. PROHIBITION AGAINST CROSS-SUBSIDIZATION (a) A
company that the Commission determines willfully and knowingly uses
support received under this chapter to subsidize an activity of the
company that is not subject to rate regulation under this subtitle
will be subject to a fine by the commission of up to $100,000. The
Commission may, by rule, determine a procedure for terminating the
certification of a company that is found to have an ongoing pattern
of such subsidization.
SECTION 6. Section 56.021, Utilities Code, is amended to
read as follows:
Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED; SALES TAX
RECEIPTS ACCOUNT. (a) The commission shall adopt and enforce rules
requiring local exchange companies 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.
(b) The universal service fund sales tax receipts account is
an account in the general revenue fund administered by the
commission. The account consists of revenue deposited to the
account under Section 151.801(d-1), Tax Code. Money in the account
is available to be appropriated for the purposes of this chapter.
SECTION 7. Subchapter B, Chapter 56, Utilities Code, is
amended by adding Sections 56.034 and 56.035 to read as follows:
Sec. 56.034. SUPPORT ALLOCATION. Notwithstanding another
provision of this chapter, the commission shall subdivide each
exchange that serves both urban and rural areas and may require that
support distributed under this chapter be used only for a rural
portion of a subdivided exchange.
Sec. 56.035. TRANSITION. (a) The commission shall create
and publish a plan to:
(1) over a 15-year period, gradually reduce the amount
of distributions made from the fund for programs other than the
programs described by Section 56.021(1);
(b) The plan must include recommendations for statutory
changes necessary to authorize the commission to execute the plan.
SECTION 8. (a) In this section, "commission" means the
Public Utility Commission of Texas.
(b) On September 1, 2021:
(1) all functions and activities related to the
universal service fund established under Chapter 56, Utilities
Code, performed by the commission immediately before that date are
transferred to the comptroller;
(2) all rules, fees, policies, procedures, decisions,
and forms related to the universal service fund adopted by the
commission are continued in effect as rules, fees, policies,
procedures, decisions, and forms of the comptroller, as applicable,
and remain in effect until amended or replaced by the comptroller;
(3) a complaint, investigation, contested case, or
other proceeding related to the universal service fund before the
commission that is pending on September 1, 2021, is transferred
without change in status to the comptroller;
(4) all money, contracts, leases, property, and
obligations related to the universal service fund are transferred
to the comptroller;
(5) all property related to the universal service fund
in the custody of the commission is transferred to the comptroller;
and
(6) the unexpended and unobligated balance of any
money appropriated by the legislature for the commission for the
purpose of administering the universal service fund is transferred
to the comptroller.
(c) The commission shall provide the comptroller with
access to any systems or information necessary for the comptroller
to administer the universal service fund.
(d) On September 1, 2021, all full-time equivalent employee
positions at the commission that primarily concern the
administration or enforcement of the universal service fund become
positions at the office of the comptroller.
SECTION 9. This Act takes effect September 1, 2021.