S.B. No. 1710
AN ACT
relating to the universal service fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 56.023, Utilities Code, is amended by
amending Subsections (f), (g), (h), (i), and (k) and adding
Subsections (q), (t), and (u) to read as follows:
(f) Except as provided by Subsection (g), for an incumbent
local exchange company or cooperative that served greater than
31,000 access lines in this state on September 1, 2022 [2013], or a
company or cooperative that is a successor to such a company or
cooperative, the support that the company or cooperative is
eligible to receive on December 31, 2023 [2016], under a plan
established under Section 56.021(1)(A) is reduced:
(1) on January 1, 2024 [2017], to 75 percent of the
level of support the company or cooperative is eligible to receive
on December 31, 2023 [2016];
(2) on January 1, 2025 [2018], to 50 percent of the
level of support the company or cooperative is eligible to receive
on December 31, 2023 [2016]; [and]
(3) on January 1, 2026 [2019], to 25 percent of the
level of support the company or cooperative is eligible to receive
on December 31, 2023; and
(4) on January 1, 2027, to zero percent of the level of
support the company or cooperative is eligible to receive on
December 31, 2023 [2016].
(g) After the commission has adopted rules under Subsection
(j), an incumbent local exchange company or cooperative that is
subject to Subsection (f) may petition the commission to initiate a
contested case proceeding as necessary to determine the eligibility
of the company or cooperative to receive support under a plan
established under Section 56.021(1)(A). A company or cooperative
may not file more than one petition under this subsection. On
receipt of a petition under this subsection, the commission shall
initiate a contested case proceeding to determine the eligibility
of the company or cooperative to receive continued support under a
plan established under Section 56.021(1)(A) for service in the
exchanges that are the subject of the petition. To be eligible to
receive support for service in an exchange under this subsection,
the company or cooperative must demonstrate that it has a financial
need for continued support. The commission must issue a final order
on the proceeding not later than the 330th day after the date the
petition is filed with the commission. Until the commission issues
a final order on the proceeding, the company or cooperative is
entitled to receive the total amount of support the company or
cooperative was eligible to receive on the date the company or
cooperative filed the petition. A company or cooperative that
files a petition under this subsection is not subject to Subsection
(f) after the commission issues a final order on the proceeding. If
the commission determines that a company or cooperative has
demonstrated financial need for continued support under this
subsection, it shall set the amount of support in the same
proceeding. The amount of support set by the commission for an
exchange under this subsection may not exceed:
(1) 100 percent of the amount of support that the
company or cooperative will be eligible to receive on December 31,
2023 [2016], if the petition is filed before January 1, 2024 [2016];
(2) 75 percent of the amount of support that the
company or cooperative will be eligible to receive on December 31,
2023 [2016], if the petition is filed on or after January 1, 2024
[2016], and before January 1, 2025 [2017];
(3) 50 percent of the amount of support the company or
cooperative is eligible to receive on December 31, 2023 [2016], if
the petition is filed on or after January 1, 2025 [2017], and before
January 1, 2026 [2018]; [or]
(4) 25 percent of the amount of support that the
company or cooperative is eligible to receive on December 31, 2023
[2016], if the petition is filed on or after January 1, 2026 [2018],
and before January 1, 2027; or
(5) zero percent of the amount of support that the
company or cooperative is eligible to receive on December 31, 2023,
if the petition is filed on or after January 1, 2027, and before
January 1, 2028 [2019].
(h) Except as provided by Subsection (i), for an incumbent
local exchange company that is an electing company under Chapter 58
or 59 or a cooperative that served greater than 31,000 access lines
in this state on September 1, 2022 [2013], or a company or
cooperative that is a successor to such a company or cooperative,
the support that the company or cooperative is eligible to receive
on December 31, 2024 [2017], under a plan established under Section
56.021(1)(B) is reduced:
(1) on January 1, 2025 [2018], to 75 percent of the
level of support the company or cooperative is eligible to receive
on December 31, 2024 [2017];
(2) on January 1, 2026 [2019], to 50 percent of the
level of support the company or cooperative is eligible to receive
on December 31, 2024 [2017]; [and]
(3) on January 1, 2027 [2020], to 25 percent of the
level of support the company or cooperative is eligible to receive
on December 31, 2024; and
(4) on January 1, 2028, to zero percent of the level of
support the company or cooperative is eligible to receive on
December 31, 2024 [2017].
(i) After the commission has adopted rules under Subsection
(j), an incumbent local exchange company or cooperative that is
subject to Subsection (h) may petition the commission to initiate a
contested case proceeding as necessary to determine the eligibility
of the company or cooperative to receive support under a plan
established under Section 56.021(1)(B). A company or cooperative
may not file more than one petition under this subsection. On
receipt of a petition under this subsection, the commission shall
initiate a contested case proceeding to determine the eligibility
of the company or cooperative to receive continued support under a
plan established under Section 56.021(1)(B) for service in the
exchanges that are the subject of the petition. To be eligible to
receive support for service in an exchange under this subsection,
the company or cooperative must demonstrate that it has a financial
need for continued support. The commission must issue a final order
on the proceeding no later than the 330th day after the date the
petition is filed with the commission. Until the commission issues
a final order on the proceeding, the company or cooperative shall
continue to receive the total amount of support it was eligible to
receive on the date the company or cooperative filed a petition
under this subsection. A company or cooperative that files a
petition under this subsection is not subject to Subsection (h)
after the commission issues a final order on the proceeding. If the
commission determines that a company or cooperative has
demonstrated financial need for continued support under this
subsection, it shall set the amount of support in the same
proceeding. The amount of support set by the commission for an
exchange under this subsection may not exceed:
(1) 100 percent of the amount of support that the
company or cooperative will be eligible to receive on December 31,
2024 [2017], if the petition is filed before January 1, 2025 [2017];
(2) 75 percent of the amount of support that the
company or cooperative will be eligible to receive on December 31,
2024 [2017], if the petition is filed on or after January 1, 2025
[2017], and before January 1, 2026 [2018];
(3) 50 percent of the amount of support that the
company or cooperative is eligible to receive on December 31, 2024
[2017], if the petition is filed on or after January 1, 2026 [2018],
and before January 1, 2027 [2019]; [or]
(4) 25 percent of the amount of support that the
company or cooperative is eligible to receive on December 31, 2024
[2017], if the petition is filed on or after January 1, 2027 [2019],
and before January 1, 2028; or
(5) zero percent of the amount of support that the
company or cooperative is eligible to receive on December 31, 2024,
if the petition is filed on or after January 1, 2028, and before
January 1, 2029 [2020].
(k) Subsections (g) and (i) do not authorize the commission
to initiate a contested case hearing concerning a local exchange
company that has elected to participate in a total support
reduction plan under 16 T.A.C. Section 26.403 that requires the
company to forego funding under a plan established under Section
56.021(1) after January 1, 2024 [2017]. This section does not
affect any obligation of a local exchange company subject to such a
total support reduction plan.
(q) Notwithstanding the period for continued support
specified by Subsection (p), if the eligible telecommunications
provider receiving continued support under that subsection is a
cooperative or an affiliate of a cooperative, the
telecommunications provider is entitled to continued support
through December 31, 2023, at the same monthly per line support
amount as the provider is receiving as of the date the support
ceases for that exchange for the incumbent local exchange company
or cooperative. Support authorized under this subsection ceases
December 31, 2023.
(t) Not later than September 1 of every fourth year
beginning September 1, 2023, the commission shall review and may
adjust the standards and criteria to demonstrate financial need for
continued support under Subsection (f).
(u) Not later than September 1 of every fourth year
beginning September 1, 2024, the commission shall review and may
adjust the standards and criteria to demonstrate financial need for
continued support under Subsection (h).
SECTION 2. Subchapter B, Chapter 56, Utilities Code, is
amended by adding Sections 56.0231 and 56.0232 to read as follows:
Sec. 56.0231. SUPPORT EXPIRED. Support to an incumbent
local exchange company or cooperative provided under Section 56.023
must be reduced on December 31, 2024, to zero percent of the amount
of support that the company or cooperative is eligible to receive on
that date if before December 31, 2022, support to the company or
cooperative had been reduced to 25 percent of the support the
company or cooperative was eligible to receive.
Sec. 56.0232. SUPPORT RELINQUISHED. (a) An eligible
telecommunications provider may notify the commission that the
provider relinquishes the support it is entitled to receive under
this chapter. After notice by the provider, the commission shall
require the entity administering the universal service fund to
terminate support to the provider.
(b) If the commission does not notify the administrator
under Subsection (a) of the provider's request before the 90th day
after the date the commission receives the request, the provider is
entitled to stop receiving the support on that date.
SECTION 3. 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, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1710 passed the Senate on
April 19, 2023, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1710 passed the House on
May 19, 2023, by the following vote: Yeas 137, Nays 6, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor