79R3399 JJT-D

By:  Turner                                                       H.B. No. 898



A BILL TO BE ENTITLED

AN ACT

relating to universal service fund support provided to 
telecommunications providers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 56, Utilities Code, is 
amended by adding Sections 56.027, 56.029, and 56.030 to read as 
follows:
	Sec. 56.027.  MAXIMUM SUBSIDY.  A disbursement from the 
universal service fund made to a telecommunications provider may 
not exceed the amount, measured per customer of the 
telecommunications provider, of the disbursement per customer made 
to the lowest cost telecommunications provider in the same wire 
center.
	Sec. 56.029.  USE OF FUND DISBURSEMENTS FOR SUPPORTED 
SERVICES.  A telecommunications provider that receives money from 
the universal service fund shall invest that money in the 
telecommunications network that provides the supported services.  
The money may not be applied to salaries, wages, or other 
non-network expenses of the provider.
	Sec. 56.030.  RECOVERY OF LOST FUND SUPPORT.  The commission 
by rule shall establish a procedure by which a rural 
telecommunications provider may offset through a rate increase any 
reduction in support from the universal service fund.
	SECTION 2.  Section 56.026(c), Utilities Code, is repealed.                    
	SECTION 3.  This Act takes effect September 1, 2005.