82R15428 ALL-D
 
  By: Smithee H.B. No. 2603
 
  Substitute the following for H.B. No. 2603:
 
  By:  Cook C.S.H.B. No. 2603
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the distribution of universal service funds to certain
  small and rural local exchange companies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 56.031, Utilities Code, is amended to
  read as follows:
         Sec. 56.031.  ADJUSTMENTS:  TEXAS HIGH COST UNIVERSAL
  SERVICE PLAN. The commission may revise the monthly per line
  support amounts to be made available from the Texas High Cost
  Universal Service Plan [and from the Small and Rural Incumbent
  Local Exchange Company Universal Service Plan at any time after
  September 1, 2007,] after notice and an opportunity for
  hearing.  In determining appropriate monthly per line support
  amounts, the commission shall consider the adequacy of basic rates
  to support universal service.
         SECTION 2.  Subchapter B, Chapter 56, Utilities Code, is
  amended by adding Section 56.032 to read as follows:
         Sec. 56.032. ADJUSTMENTS: SMALL AND RURAL INCUMBENT LOCAL
  EXCHANGE COMPANY UNIVERSAL SERVICE PLAN. (a)  For purposes of this
  section, "consumer price index" means the Consumer Price Index for
  All Urban Consumers, as published by the federal Bureau of Labor
  Statistics of the United States Department of Labor.
         (b)  Except as provided by Subsections (c), (d), and (e), the
  commission may revise the monthly support amounts to be made
  available from the Small and Rural Incumbent Local Exchange Company
  Universal Service Plan by revising the monthly per line support
  amounts, after notice and an opportunity for hearing.  In
  determining appropriate monthly per line support amounts, the
  commission shall consider the adequacy of basic rates to support
  universal service.
         (c)  On the written request of a small or rural incumbent
  local exchange company that receives monthly per line support
  amounts, the commission shall disburse funds to the company in
  fixed monthly amounts based on the company's annualized amount of
  recovery for the calendar year ending on December 31, 2010. A
  company may submit only one request under this subsection and must
  submit the request on or before December 31, 2011.
         (d)  On the written request of a small or rural incumbent
  local exchange company that is not an electing company under
  Chapter 58 or 59, the commission annually shall set the company's
  monthly support amounts for the following 12 months by dividing by
  12 the annualized support amount calculated under this subsection.
  The commission shall calculate the annualized amount:
               (1)  for the initial 12-month period for which a
  company makes an election under this subsection, by:
                     (A)  determining the annualized support amount
  calculated for the requestor in the final order issued by the
  commission in Docket No. 18516; and
                     (B)  adjusting the support amount determined
  under Paragraph (A) at the beginning of each calendar year by a
  factor equal to the most recent consumer price index published at
  that time, beginning with the 1999 calendar year and ending in the
  year the company makes an election under this subsection; and
               (2)  for the 12-month period following the initial
  period for which a company made an election under this subsection
  and for subsequent 12-month periods, by adjusting the most recent
  annualized support amount calculated by the commission by a factor
  equal to the percentage change in the consumer price index for the
  most recent 12-month period.
         (e)  The commission shall administratively review requests
  filed under Subsections (c) and (d). Except for good cause, the
  commission shall approve the request not later than the 60th day
  after the date the commission determines the company is eligible
  and has met all the procedural requirements under this subchapter.
         SECTION 3.  This Act takes effect September 1, 2011.