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	Amend CSHB 789 by adding the following appropriately numbered 
SECTION to the bill and renumbering the subsequent SECTIONS of the 
bill as appropriate:
	SECTION      . Subchapter B, Chapter 56, Utilities Code, is 
amended by adding Section 56.0211 to read as follows:
	Sec. 56.0211. UNRECOVERED COSTS. The commission may make 
distributions from the universal service fund for a purpose 
described by Section 56.021 (1) only as necessary to compensate 
telecommunications providers for actual costs related to the 
provision of basic local telecommunications service that are 
unrecovered through revenues.