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A BILL TO BE ENTITLED
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AN ACT
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relating to eligibility for support from the universal service |
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fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 56.023, Utilities Code, is amended by |
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amending Subsection (b) and adding Subsections (f), (g), (h), (i), |
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(j), (k), (l), (m), (n), (o), (p), and (q) to read as follows: |
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(b) The eligibility criteria must require that a |
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telecommunications provider, in compliance with the commission's |
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quality of service requirements: |
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(1) offer service to each consumer within an exchange |
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in the company's certificated area for which the incumbent local |
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exchange company receives support under a plan established under |
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Section 56.021(1) and to any permanent residential or business |
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premises to which the company is designated to provide services |
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under Subchapter F; and |
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(2) render continuous and adequate service within an |
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exchange in the company's certificated area for which the incumbent |
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local exchange company receives support under a plan established |
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under Section 56.021(1) and to any permanent residential or |
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business premises to which the company is designated to provide |
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services under Subchapter F. |
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(f) Except as provided by Subsection (g), for an incumbent |
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local exchange company or cooperative that served greater than |
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31,000 access lines in this state on September 1, 2013, or a company |
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or cooperative that is a successor to such a company or cooperative, |
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the support that the company or cooperative is eligible to receive |
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on December 31, 2016, under a plan established under Section |
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56.021(1)(A) is reduced: |
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(1) on January 1, 2017, to 75 percent of the level of |
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support the company or cooperative is eligible to receive on |
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December 31, 2016; |
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(2) on January 1, 2018, to 50 percent of the level of |
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support the company or cooperative is eligible to receive on |
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December 31, 2016; and |
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(3) on January 1, 2019, to 25 percent of the level of |
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support the company or cooperative is eligible to receive on |
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December 31, 2016. |
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(g) After the commission has adopted rules under Subsection |
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(j), an incumbent local exchange company or cooperative that is |
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subject to Subsection (f) may petition the commission to initiate a |
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contested case proceeding as necessary to determine the eligibility |
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of the company or cooperative to receive support under a plan |
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established under Section 56.021(1)(A). A company or cooperative |
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may not file more than one petition under this subsection. On |
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receipt of a petition under this subsection, the commission shall |
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initiate a contested case proceeding to determine the eligibility |
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of the company or cooperative to receive continued support under a |
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plan established under Section 56.021(1)(A) for service in the |
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exchanges that are the subject of the petition. To be eligible to |
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receive support for service in an exchange under this subsection, |
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the company or cooperative must demonstrate that it has a financial |
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need for continued support. The commission must issue a final order |
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on the proceeding not later than the 330th day after the date the |
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petition is filed with the commission. Until the commission issues |
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a final order on the proceeding, the company or cooperative is |
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entitled to receive the total amount of support the company or |
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cooperative was eligible to receive on the date the company or |
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cooperative filed the petition. A company or cooperative that |
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files a petition under this subsection is not subject to Subsection |
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(f) after the commission issues a final order on the proceeding. If |
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the commission determines that a company or cooperative has |
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demonstrated financial need for continued support under this |
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subsection, it shall set the amount of support in the same |
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proceeding. The amount of support set by the commission for an |
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exchange under this subsection may not exceed: |
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(1) 100 percent of the amount of support that the |
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company or cooperative will be eligible to receive on December 31, |
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2016, if the petition is filed before January 1, 2016; |
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(2) 75 percent of the amount of support that the |
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company or cooperative will be eligible to receive on December 31, |
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2016, if the petition is filed on or after January 1, 2016, and |
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before January 1, 2017; |
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(3) 50 percent of the amount of support the company or |
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cooperative is eligible to receive on December 31, 2016, if the |
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petition is filed on or after January 1, 2017, and before January 1, |
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2018; or |
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(4) 25 percent of the amount of support that the |
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company or cooperative is eligible to receive on December 31, 2016, |
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if the petition is filed on or after January 1, 2018, and before |
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January 1, 2019. |
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(h) Except as provided by Subsection (i), for an incumbent |
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local exchange company that is an electing company under Chapter 58 |
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or 59 or a cooperative that served greater than 31,000 access lines |
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in this state on September 1, 2013, or a company or cooperative that |
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is a successor to such a company or cooperative, the support that |
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the company or cooperative is eligible to receive on December 31, |
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2017, under a plan established under Section 56.021(1)(B) is |
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reduced: |
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(1) on January 1, 2018, to 75 percent of the level of |
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support the company or cooperative is eligible to receive on |
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December 31, 2017; |
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(2) on January 1, 2019, to 50 percent of the level of |
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support the company or cooperative is eligible to receive on |
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December 31, 2017; and |
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(3) on January 1, 2020, to 25 percent of the level of |
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support the company or cooperative is eligible to receive on |
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December 31, 2017. |
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(i) After the commission has adopted rules under Subsection |
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(j), an incumbent local exchange company or cooperative that is |
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subject to Subsection (h) may petition the commission to initiate a |
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contested case proceeding as necessary to determine the eligibility |
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of the company or cooperative to receive support under a plan |
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established under Section 56.021(1)(B). A company or cooperative |
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may not file more than one petition under this subsection. On |
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receipt of a petition under this subsection, the commission shall |
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initiate a contested case proceeding to determine the eligibility |
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of the company or cooperative to receive continued support under a |
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plan established under Section 56.021(1)(B) for service in the |
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exchanges that are the subject of the petition. To be eligible to |
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receive support for service in an exchange under this subsection, |
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the company or cooperative must demonstrate that it has a financial |
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need for continued support. The commission must issue a final order |
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on the proceeding no later than the 330th day after the date the |
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petition is filed with the commission. Until the commission issues |
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a final order on the proceeding, the company or cooperative shall |
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continue to receive the total amount of support it was eligible to |
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receive on the date the company or cooperative filed a petition |
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under this subsection. A company or cooperative that files a |
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petition under this subsection is not subject to Subsection (h) |
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after the commission issues a final order on the proceeding. If the |
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commission determines that a company or cooperative has |
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demonstrated financial need for continued support under this |
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subsection, it shall set the amount of support in the same |
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proceeding. The amount of support set by the commission for an |
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exchange under this subsection may not exceed: |
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(1) 100 percent of the amount of support that the |
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company or cooperative will be eligible to receive on December 31, |
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2017, if the petition is filed before January 1, 2017; |
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(2) 75 percent of the amount of support that the |
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company or cooperative will be eligible to receive on December 31, |
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2017, if the petition is filed on or after January 1, 2017, and |
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before January 1, 2018; |
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(3) 50 percent of the amount of support that the |
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company or cooperative is eligible to receive on December 31, 2017, |
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if the petition is filed on or after January 1, 2018, and before |
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January 1, 2019; or |
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(4) 25 percent of the amount of support that the |
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company or cooperative is eligible to receive on December 31, 2017, |
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if the petition is filed on or after January 1, 2019, and before |
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January 1, 2020. |
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(j) The commission by rule shall establish the standards and |
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criteria for an incumbent local exchange company or cooperative to |
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demonstrate under Subsection (g) or (i) that the company or |
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cooperative has a financial need for continued support for |
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residential and business lines under a plan established under |
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Section 56.021(1). |
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(k) Subsections (g) and (i) do not authorize the commission |
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to initiate a contested case hearing concerning a local exchange |
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company that has elected to participate in a total support |
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reduction plan under 16 T.A.C. Section 26.403 that requires the |
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company to forego funding under a plan established under Section |
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56.021(1) after January 1, 2017. This section does not affect any |
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obligation of a local exchange company subject to such a total |
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support reduction plan. |
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(l) Subsections (f), (g), (h), and (i) do not apply to an |
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incumbent local exchange company that elects, not later than March |
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1, 2014, to eliminate, not later than September 1, 2018, the support |
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it receives under a plan established under Section 56.021(1). |
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(m) Nothing in this chapter relieves any party of an |
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obligation entered into in the commission's Docket No. 40521. |
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(n) Nothing in this section is intended to affect the rate |
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rebalancing proceeding in the commission's Docket No. 41097. |
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(o) Notwithstanding the provisions of this chapter, the |
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commission has no authority, except as provided by Subsections (f), |
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(g), (h), (i), (j), (k), (m), and (n) to reduce support provided to |
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an incumbent local exchange company that is an electing company |
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under Chapter 58 or 59 or is a cooperative that served greater than |
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31,000 access lines in this state on September 1, 2013: |
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(1) under a plan established under Section |
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56.021(1)(A) before January 1, 2019; or |
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(2) under a plan established under Section |
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56.021(1)(B) before January 1, 2020. This subsection expires on |
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January 2, 2020. |
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(p) If an incumbent local exchange company or cooperative is |
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ineligible for support under a plan established under Section |
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56.021(1) for services in an exchange, a plan established under |
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Section 56.021(1) may not provide support to any other |
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telecommunications providers for services in that exchange, except |
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that an eligible telecommunications provider that is receiving |
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support under Section 56.021(1)(A) in that exchange shall continue |
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to receive such support for a 24-month period following the date the |
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incumbent local exchange provider or cooperative ceases receiving |
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support in that exchange. The support received by the eligible |
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telecommunications provider during the 24-month period shall be at |
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the same monthly per line support level in effect for that exchange |
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as of the date the incumbent local exchange provider or cooperative |
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ceases receiving funding in that exchange. |
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(q) Notwithstanding the period for continued support |
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specified by Subsection (p), if the eligible telecommunications |
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provider receiving continued support under that subsection is a |
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cooperative or an affiliate of a cooperative, the |
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telecommunications provider is entitled to continued support |
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through December 31, 2017, at the same monthly per-line support |
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amount as the provider is receiving as of the date the support |
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ceases for that exchange for the incumbent local exchange company |
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or cooperative. Support authorized under this subsection ceases |
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December 31, 2017. |
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SECTION 2. Section 56.024, Utilities Code, is amended by |
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amending Subsection (b) and adding Subsections (c) and (d) to read |
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as follows: |
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(b) A report or information the commission requires a |
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telecommunications provider to provide under Subsection (a) is |
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confidential and not subject to disclosure under Chapter 552, |
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Government Code. |
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(c) A telecommunications provider shall file with the |
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commission the provider's annual earnings report if the provider: |
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(1) is not a local exchange company subject to a total |
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support reduction plan under 16 T.A.C. Section 26.403 or that has |
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made an election under Section 56.023(l); |
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(2) serves greater than 31,000 access lines; and |
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(3) receives support under a plan established under |
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Section 56.021(1). |
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(d) A report filed under Subsection (c) is confidential and |
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not subject to disclosure under Chapter 552, Government Code. |
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SECTION 3. Section 56.025, Utilities Code, is amended by |
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amending Subsection (a) and adding Subsection (g) to read as |
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follows: |
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(a) In addition to the authority provided by Section 56.021: |
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(1) [,] for each local exchange company that serves |
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fewer than 31,000 access lines and each cooperative, the |
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commission[:
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[(1)] may adopt a mechanism necessary to maintain |
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reasonable rates for local exchange telephone service; and |
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(2) for each local exchange company and each |
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cooperative that serves 31,000 or fewer access lines and that on |
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June 1, 2013, is not an electing company under Chapter 58 or 59, the |
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commission shall adopt rules to expand the universal service fund |
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in the circumstances prescribed by this section. |
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(g) Notwithstanding any other provision of this section, |
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after December 31, 2013, the commission may not distribute support |
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granted under this section, including any support granted before |
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that date, to a local exchange company or cooperative that serves |
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greater than 31,000 access lines or that is an electing company |
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under Chapter 58 or 59 on June 1, 2013. |
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SECTION 4. Section 56.026, Utilities Code, is amended to |
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read as follows: |
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Sec. 56.026. PROMPT AND EFFICIENT [UNIVERSAL SERVICE FUND] |
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DISBURSEMENTS. [(a)
A revenue requirement showing is not required
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for a disbursement from the universal service fund under this
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subchapter.
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[(b)] The commission shall make each disbursement from the |
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universal service fund promptly and efficiently so that a |
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telecommunications provider does not experience an unnecessary |
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cash-flow change as a result of a change in governmental policy. |
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SECTION 5. Subsections (b), (c), (d), (e), (f), and (h), |
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Section 56.032, Utilities Code, as added by Chapter 535 (H.B. |
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2603), Acts of the 82nd Legislature, Regular Session, 2011, are |
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amended to read as follows: |
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(b) Except as provided by Subsections [(c),] (d) and[,] (e), |
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[and (f),] the commission may revise the monthly support amounts to |
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be made available from the Small and Rural Incumbent Local Exchange |
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Company Universal Service Plan by any mechanism, including support |
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reductions resulting from rate rebalancing approved by the |
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commission, [by revising the monthly per line support amounts,] |
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after notice and an opportunity for hearing. In determining |
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appropriate monthly [per line] support amounts, the commission |
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shall consider the adequacy of basic rates to support universal |
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service. |
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(c) A [On the written request of a small or rural incumbent
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local exchange] company that receives frozen monthly [per line] |
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support amounts as prescribed by a final order issued by the |
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commission in the commission's Docket No. 39643 is entitled to |
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continue to receive that monthly support until the support is |
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revised under Subsection (b)[, the commission shall disburse funds
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to the company in fixed monthly amounts based on the company's
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annualized amount of recovery for the calendar year ending on
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December 31, 2010.
A company may submit only one request under this
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subsection and must submit the request on or before December 31,
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2011]. |
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(d) For each [On the written request of a] small or rural |
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incumbent local exchange company that is not receiving frozen |
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support amounts as described by Subsection (c) and is not an |
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electing company under Chapter 58 or 59, the commission annually |
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shall set the company's monthly support amounts for the following |
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12 months by dividing by 12 the annualized support amount |
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calculated under this subsection. The commission shall calculate |
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the annualized amount: |
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(1) for the initial 12-month period for which a |
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company makes an election under this subsection, by[:
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[(A)] determining the annualized support amount |
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received by the company as of January 1, 2013 [calculated for the
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requestor in the final order issued by the commission in Docket No.
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18516; and
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[(B)
adjusting the support amount determined
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under Paragraph (A) at the beginning of each calendar year by a
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factor equal to the most recent consumer price index published at
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that time, beginning with the 1999 calendar year and ending in the
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year the company makes an election under this subsection]; and |
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(2) for [the 12-month period following the initial
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period for which a company made an election under this subsection
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and for] subsequent 12-month periods, by adjusting the most recent |
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annualized support amount calculated by the commission by a factor |
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equal to the percentage change in the consumer price index for the |
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most recent 12-month period. |
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(e) The [If a company elects to receive monthly support
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amounts under Subsection (d), the] commission, on its own motion or |
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on the written request of the company, may initiate a proceeding to |
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recalculate the most recent annualized support amount to be used as |
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the basis for adjustment for a subsequent 12-month period under |
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Subsection (d)(2). If, based on the recalculation, the commission |
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by order adjusts a company's most recent annualized support amount, |
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the adjusted support amount supersedes the annualized support |
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amount calculated in accordance with Subsection (d). |
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(f) [The commission shall administratively review requests
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filed under Subsections (c) and (d).] Except for good cause, the |
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commission shall establish monthly support amounts under |
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Subsection (d) [approve the request] not later than the 60th day |
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after the date the commission determines the company is eligible |
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[and has met all the procedural requirements under this
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subchapter]. |
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(h) Subsections (a), (c), (d), (e), and (f) [This section] |
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and any monthly support amount approved under those subsections |
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[this section] expire [on] September 1, 2017 [2013]. |
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SECTION 6. Section 3, Chapter 535 (H.B. 2603), Acts of the |
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82nd Legislature, Regular Session, 2011, which amended Section |
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56.031, Utilities Code, is repealed. |
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SECTION 7. The Public Utility Commission of Texas shall |
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adopt rules under Subsection (j), Section 56.023, Utilities Code, |
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as added by this Act, not later than December 1, 2014. The |
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commission shall initiate the rulemaking proceeding not later than |
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January 1, 2014. |
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SECTION 8. This Act takes effect June 1, 2013, if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary to take effect on |
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that date, this Act takes effect on the 91st day after the last day |
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of the legislative session. |