Texas House Bill HB3713

Texas 2025 - 89th Regular

• Filed: 3/4/25
• Out of House Committee: 4/25/25

Caption

Relating of maintenance of rates and expansion of funds for certain companies.

Impact

If enacted, HB 3713 would modify existing laws under the Utilities Code to reinforce the role of the Public Utility Commission in overseeing rate mechanisms and fund allocations. The inclusion of provisions to replace projected revenue losses suggests a strategy to cover financial deficiencies while ensuring the sustainability of local telecom services. Stakeholders, including local exchange companies, may benefit from the assurance of rate stability, which in turn supports customer confidence in local telecom infrastructure. However, this act may also place additional burdens on the Universal Service Fund to meet expanded requirements.

Summary

House Bill 3713 focuses on the maintenance of rates and the expansion of funds for local exchange companies and cooperatives in Texas. The bill aims to provide mechanisms that would allow these companies, particularly those serving fewer than 31,000 access lines, to maintain reasonable rates for local exchange telephone services. Changes to the Universal Service Fund are also proposed to ensure continued support where revenue might be reduced due to new federal regulations or state policies. This legislation is intended to secure and stabilize telecom services, especially in under-served areas.

Sentiment

Discussions around HB 3713 have been generally supportive in terms of the need for maintaining access to reliable telecom services. Proponents have argued that the bill addresses critical needs for rural and underserved regions in Texas, ensuring that these communities do not fall behind in telecommunications. However, there exists a cautious sentiment regarding the implications for the Universal Service Fund and whether its expansion might lead to challenges in meeting its other obligations. Overall, while the intent of the bill is positive, some concerns about funding sustainability have arisen.

Contention

Notable points of contention arise from the implications for existing funding mechanisms and how they may affect telecommunications service providers. Critics have raised concerns that expanding the Universal Service Fund and depending on it for maintaining the rates for local exchange companies could lead to fiscal strain if not properly managed. The long-term sustainability of these funds and their ability to adapt to changing regulations is a key focus for skeptics. Given these discussions, it is expected that there will be ongoing debate as the bill moves through the legislative process.

Texas Constitutional Statutes Affected

Utilities Code

• Chapter 56. Telecommunications Assistance And Universal Service Fund
  • Section: New Section
  • Section: New Section
  • Section: New Section