| 1 | 1 | | S.B. No. 1710 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the universal service fund. |
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| 6 | 6 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 7 | 7 | | SECTION 1. Section 56.023, Utilities Code, is amended by |
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| 8 | 8 | | amending Subsections (f), (g), (h), (i), and (k) and adding |
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| 9 | 9 | | Subsections (q), (t), and (u) to read as follows: |
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| 10 | 10 | | (f) Except as provided by Subsection (g), for an incumbent |
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| 11 | 11 | | local exchange company or cooperative that served greater than |
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| 12 | 12 | | 31,000 access lines in this state on September 1, 2022 [2013], or a |
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| 13 | 13 | | company or cooperative that is a successor to such a company or |
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| 14 | 14 | | cooperative, the support that the company or cooperative is |
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| 15 | 15 | | eligible to receive on December 31, 2023 [2016], under a plan |
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| 16 | 16 | | established under Section 56.021(1)(A) is reduced: |
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| 17 | 17 | | (1) on January 1, 2024 [2017], to 75 percent of the |
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| 18 | 18 | | level of support the company or cooperative is eligible to receive |
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| 19 | 19 | | on December 31, 2023 [2016]; |
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| 20 | 20 | | (2) on January 1, 2025 [2018], to 50 percent of the |
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| 21 | 21 | | level of support the company or cooperative is eligible to receive |
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| 22 | 22 | | on December 31, 2023 [2016]; [and] |
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| 23 | 23 | | (3) on January 1, 2026 [2019], to 25 percent of the |
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| 24 | 24 | | level of support the company or cooperative is eligible to receive |
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| 25 | 25 | | on December 31, 2023; and |
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| 26 | 26 | | (4) on January 1, 2027, to zero percent of the level of |
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| 27 | 27 | | support the company or cooperative is eligible to receive on |
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| 28 | 28 | | December 31, 2023 [2016]. |
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| 29 | 29 | | (g) After the commission has adopted rules under Subsection |
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| 30 | 30 | | (j), an incumbent local exchange company or cooperative that is |
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| 31 | 31 | | subject to Subsection (f) may petition the commission to initiate a |
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| 32 | 32 | | contested case proceeding as necessary to determine the eligibility |
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| 33 | 33 | | of the company or cooperative to receive support under a plan |
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| 34 | 34 | | established under Section 56.021(1)(A). A company or cooperative |
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| 35 | 35 | | may not file more than one petition under this subsection. On |
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| 36 | 36 | | receipt of a petition under this subsection, the commission shall |
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| 37 | 37 | | initiate a contested case proceeding to determine the eligibility |
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| 38 | 38 | | of the company or cooperative to receive continued support under a |
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| 39 | 39 | | plan established under Section 56.021(1)(A) for service in the |
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| 40 | 40 | | exchanges that are the subject of the petition. To be eligible to |
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| 41 | 41 | | receive support for service in an exchange under this subsection, |
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| 42 | 42 | | the company or cooperative must demonstrate that it has a financial |
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| 43 | 43 | | need for continued support. The commission must issue a final order |
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| 44 | 44 | | on the proceeding not later than the 330th day after the date the |
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| 45 | 45 | | petition is filed with the commission. Until the commission issues |
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| 46 | 46 | | a final order on the proceeding, the company or cooperative is |
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| 47 | 47 | | entitled to receive the total amount of support the company or |
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| 48 | 48 | | cooperative was eligible to receive on the date the company or |
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| 49 | 49 | | cooperative filed the petition. A company or cooperative that |
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| 50 | 50 | | files a petition under this subsection is not subject to Subsection |
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| 51 | 51 | | (f) after the commission issues a final order on the proceeding. If |
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| 52 | 52 | | the commission determines that a company or cooperative has |
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| 53 | 53 | | demonstrated financial need for continued support under this |
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| 54 | 54 | | subsection, it shall set the amount of support in the same |
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| 55 | 55 | | proceeding. The amount of support set by the commission for an |
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| 56 | 56 | | exchange under this subsection may not exceed: |
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| 57 | 57 | | (1) 100 percent of the amount of support that the |
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| 58 | 58 | | company or cooperative will be eligible to receive on December 31, |
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| 59 | 59 | | 2023 [2016], if the petition is filed before January 1, 2024 [2016]; |
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| 60 | 60 | | (2) 75 percent of the amount of support that the |
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| 61 | 61 | | company or cooperative will be eligible to receive on December 31, |
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| 62 | 62 | | 2023 [2016], if the petition is filed on or after January 1, 2024 |
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| 63 | 63 | | [2016], and before January 1, 2025 [2017]; |
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| 64 | 64 | | (3) 50 percent of the amount of support the company or |
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| 65 | 65 | | cooperative is eligible to receive on December 31, 2023 [2016], if |
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| 66 | 66 | | the petition is filed on or after January 1, 2025 [2017], and before |
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| 67 | 67 | | January 1, 2026 [2018]; [or] |
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| 68 | 68 | | (4) 25 percent of the amount of support that the |
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| 69 | 69 | | company or cooperative is eligible to receive on December 31, 2023 |
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| 70 | 70 | | [2016], if the petition is filed on or after January 1, 2026 [2018], |
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| 71 | 71 | | and before January 1, 2027; or |
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| 72 | 72 | | (5) zero percent of the amount of support that the |
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| 73 | 73 | | company or cooperative is eligible to receive on December 31, 2023, |
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| 74 | 74 | | if the petition is filed on or after January 1, 2027, and before |
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| 75 | 75 | | January 1, 2028 [2019]. |
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| 76 | 76 | | (h) Except as provided by Subsection (i), for an incumbent |
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| 77 | 77 | | local exchange company that is an electing company under Chapter 58 |
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| 78 | 78 | | or 59 or a cooperative that served greater than 31,000 access lines |
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| 79 | 79 | | in this state on September 1, 2022 [2013], or a company or |
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| 80 | 80 | | cooperative that is a successor to such a company or cooperative, |
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| 81 | 81 | | the support that the company or cooperative is eligible to receive |
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| 82 | 82 | | on December 31, 2024 [2017], under a plan established under Section |
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| 83 | 83 | | 56.021(1)(B) is reduced: |
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| 84 | 84 | | (1) on January 1, 2025 [2018], to 75 percent of the |
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| 85 | 85 | | level of support the company or cooperative is eligible to receive |
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| 86 | 86 | | on December 31, 2024 [2017]; |
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| 87 | 87 | | (2) on January 1, 2026 [2019], to 50 percent of the |
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| 88 | 88 | | level of support the company or cooperative is eligible to receive |
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| 89 | 89 | | on December 31, 2024 [2017]; [and] |
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| 90 | 90 | | (3) on January 1, 2027 [2020], to 25 percent of the |
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| 91 | 91 | | level of support the company or cooperative is eligible to receive |
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| 92 | 92 | | on December 31, 2024; and |
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| 93 | 93 | | (4) on January 1, 2028, to zero percent of the level of |
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| 94 | 94 | | support the company or cooperative is eligible to receive on |
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| 95 | 95 | | December 31, 2024 [2017]. |
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| 96 | 96 | | (i) After the commission has adopted rules under Subsection |
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| 97 | 97 | | (j), an incumbent local exchange company or cooperative that is |
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| 98 | 98 | | subject to Subsection (h) may petition the commission to initiate a |
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| 99 | 99 | | contested case proceeding as necessary to determine the eligibility |
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| 100 | 100 | | of the company or cooperative to receive support under a plan |
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| 101 | 101 | | established under Section 56.021(1)(B). A company or cooperative |
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| 102 | 102 | | may not file more than one petition under this subsection. On |
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| 103 | 103 | | receipt of a petition under this subsection, the commission shall |
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| 104 | 104 | | initiate a contested case proceeding to determine the eligibility |
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| 105 | 105 | | of the company or cooperative to receive continued support under a |
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| 106 | 106 | | plan established under Section 56.021(1)(B) for service in the |
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| 107 | 107 | | exchanges that are the subject of the petition. To be eligible to |
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| 108 | 108 | | receive support for service in an exchange under this subsection, |
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| 109 | 109 | | the company or cooperative must demonstrate that it has a financial |
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| 110 | 110 | | need for continued support. The commission must issue a final order |
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| 111 | 111 | | on the proceeding no later than the 330th day after the date the |
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| 112 | 112 | | petition is filed with the commission. Until the commission issues |
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| 113 | 113 | | a final order on the proceeding, the company or cooperative shall |
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| 114 | 114 | | continue to receive the total amount of support it was eligible to |
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| 115 | 115 | | receive on the date the company or cooperative filed a petition |
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| 116 | 116 | | under this subsection. A company or cooperative that files a |
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| 117 | 117 | | petition under this subsection is not subject to Subsection (h) |
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| 118 | 118 | | after the commission issues a final order on the proceeding. If the |
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| 119 | 119 | | commission determines that a company or cooperative has |
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| 120 | 120 | | demonstrated financial need for continued support under this |
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| 121 | 121 | | subsection, it shall set the amount of support in the same |
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| 122 | 122 | | proceeding. The amount of support set by the commission for an |
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| 123 | 123 | | exchange under this subsection may not exceed: |
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| 124 | 124 | | (1) 100 percent of the amount of support that the |
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| 125 | 125 | | company or cooperative will be eligible to receive on December 31, |
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| 126 | 126 | | 2024 [2017], if the petition is filed before January 1, 2025 [2017]; |
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| 127 | 127 | | (2) 75 percent of the amount of support that the |
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| 128 | 128 | | company or cooperative will be eligible to receive on December 31, |
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| 129 | 129 | | 2024 [2017], if the petition is filed on or after January 1, 2025 |
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| 130 | 130 | | [2017], and before January 1, 2026 [2018]; |
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| 131 | 131 | | (3) 50 percent of the amount of support that the |
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| 132 | 132 | | company or cooperative is eligible to receive on December 31, 2024 |
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| 133 | 133 | | [2017], if the petition is filed on or after January 1, 2026 [2018], |
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| 134 | 134 | | and before January 1, 2027 [2019]; [or] |
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| 135 | 135 | | (4) 25 percent of the amount of support that the |
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| 136 | 136 | | company or cooperative is eligible to receive on December 31, 2024 |
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| 137 | 137 | | [2017], if the petition is filed on or after January 1, 2027 [2019], |
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| 138 | 138 | | and before January 1, 2028; or |
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| 139 | 139 | | (5) zero percent of the amount of support that the |
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| 140 | 140 | | company or cooperative is eligible to receive on December 31, 2024, |
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| 141 | 141 | | if the petition is filed on or after January 1, 2028, and before |
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| 142 | 142 | | January 1, 2029 [2020]. |
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| 143 | 143 | | (k) Subsections (g) and (i) do not authorize the commission |
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| 144 | 144 | | to initiate a contested case hearing concerning a local exchange |
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| 145 | 145 | | company that has elected to participate in a total support |
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| 146 | 146 | | reduction plan under 16 T.A.C. Section 26.403 that requires the |
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| 147 | 147 | | company to forego funding under a plan established under Section |
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| 148 | 148 | | 56.021(1) after January 1, 2024 [2017]. This section does not |
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| 149 | 149 | | affect any obligation of a local exchange company subject to such a |
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| 150 | 150 | | total support reduction plan. |
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| 151 | 151 | | (q) Notwithstanding the period for continued support |
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| 152 | 152 | | specified by Subsection (p), if the eligible telecommunications |
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| 153 | 153 | | provider receiving continued support under that subsection is a |
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| 154 | 154 | | cooperative or an affiliate of a cooperative, the |
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| 155 | 155 | | telecommunications provider is entitled to continued support |
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| 156 | 156 | | through December 31, 2023, at the same monthly per line support |
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| 157 | 157 | | amount as the provider is receiving as of the date the support |
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| 158 | 158 | | ceases for that exchange for the incumbent local exchange company |
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| 159 | 159 | | or cooperative. Support authorized under this subsection ceases |
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| 160 | 160 | | December 31, 2023. |
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| 161 | 161 | | (t) Not later than September 1 of every fourth year |
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| 162 | 162 | | beginning September 1, 2023, the commission shall review and may |
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| 163 | 163 | | adjust the standards and criteria to demonstrate financial need for |
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| 164 | 164 | | continued support under Subsection (f). |
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| 165 | 165 | | (u) Not later than September 1 of every fourth year |
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| 166 | 166 | | beginning September 1, 2024, the commission shall review and may |
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| 167 | 167 | | adjust the standards and criteria to demonstrate financial need for |
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| 168 | 168 | | continued support under Subsection (h). |
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| 169 | 169 | | SECTION 2. Subchapter B, Chapter 56, Utilities Code, is |
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| 170 | 170 | | amended by adding Sections 56.0231 and 56.0232 to read as follows: |
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| 171 | 171 | | Sec. 56.0231. SUPPORT EXPIRED. Support to an incumbent |
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| 172 | 172 | | local exchange company or cooperative provided under Section 56.023 |
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| 173 | 173 | | must be reduced on December 31, 2024, to zero percent of the amount |
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| 174 | 174 | | of support that the company or cooperative is eligible to receive on |
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| 175 | 175 | | that date if before December 31, 2022, support to the company or |
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| 176 | 176 | | cooperative had been reduced to 25 percent of the support the |
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| 177 | 177 | | company or cooperative was eligible to receive. |
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| 178 | 178 | | Sec. 56.0232. SUPPORT RELINQUISHED. (a) An eligible |
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| 179 | 179 | | telecommunications provider may notify the commission that the |
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| 180 | 180 | | provider relinquishes the support it is entitled to receive under |
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| 181 | 181 | | this chapter. After notice by the provider, the commission shall |
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| 182 | 182 | | require the entity administering the universal service fund to |
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| 183 | 183 | | terminate support to the provider. |
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| 184 | 184 | | (b) If the commission does not notify the administrator |
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| 185 | 185 | | under Subsection (a) of the provider's request before the 90th day |
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| 186 | 186 | | after the date the commission receives the request, the provider is |
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| 187 | 187 | | entitled to stop receiving the support on that date. |
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| 188 | 188 | | SECTION 3. This Act takes effect immediately if it receives |
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| 189 | 189 | | a vote of two-thirds of all the members elected to each house, as |
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| 190 | 190 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 191 | 191 | | Act does not receive the vote necessary for immediate effect, this |
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| 192 | 192 | | Act takes effect September 1, 2023. |
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| 193 | 193 | | ______________________________ ______________________________ |
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| 194 | 194 | | President of the Senate Speaker of the House |
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| 195 | 195 | | I hereby certify that S.B. No. 1710 passed the Senate on |
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| 196 | 196 | | April 19, 2023, by the following vote: Yeas 30, Nays 1. |
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| 197 | 197 | | ______________________________ |
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| 198 | 198 | | Secretary of the Senate |
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| 199 | 199 | | I hereby certify that S.B. No. 1710 passed the House on |
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| 200 | 200 | | May 19, 2023, by the following vote: Yeas 137, Nays 6, two |
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| 201 | 201 | | present not voting. |
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| 202 | 202 | | ______________________________ |
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| 203 | 203 | | Chief Clerk of the House |
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| 204 | 204 | | Approved: |
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| 205 | 205 | | ______________________________ |
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| 206 | 206 | | Date |
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| 207 | 207 | | ______________________________ |
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| 208 | 208 | | Governor |
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