BILL ANALYSIS

S.B. 804

By: Seliger

State Affairs

Committee Report (Unamended)

 

BACKGROUND AND PURPOSE

 

 S.B. 583, passed by the 83rd Legislature, Regular Session, 2013, created a phase out of the support telecommunication providers receive from the Texas Universal Service Fund (TUSF) in certain exchanges. The first provision allowed competitive providers to continue receiving TUSF support for 24 months after deregulation by the incumbent provider. The second provision applied only to cooperatives and set a date certain of December 31, 2017.

 

S.B. 804 will change the first provision to allow those providers to receive USF support until the later of the 24-month anniversary as currently provided, or December 31, 2017.

 

As proposed, S.B. 804 amends current law relating to the period of eligibility for support from the universal service plan for certain providers.

 

CRIMINAL JUSTICE IMPACT

 

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

 SECTION 1. Amends Section 56.023(p), Utilities Code, as follows:

(p) Requires that, if an incumbent local exchange company or cooperative is ineligible for support under a plan established under Section 56.021(1) (relating to state assistance for telecommunications providers in rural areas) for services in an exchange, a plan established under Section 56.021(1) is prohibited from providing support to any other telecommunications providers for services in that exchange, except that an eligible telecommunications provider that is receiving support under Section 56.021(1)(A) (relating to the Texas High Cost Universal Service Plan) in that exchange shall continue to receive such support until the later of December 31, 2017, or the second anniversary of the date the incumbent local exchange provider or cooperative ceases receiving support in that exchange, rather than shall continue to receive such support for a 24-month period following the date the incumbent local exchange provider or cooperative ceases receiving support in that exchange. Requires that the support received by the eligible telecommunications provider during that period, rather than the 24-month period, be at the same monthly per line support level in effect for that exchange as of the date the incumbent local exchange provider or cooperative ceases receiving funding in that exchange.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2015.