84R9639 JXC-D
 
  By: Guillen H.B. No. 3440
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to eligibility of certain rural companies for support from
  the universal service fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 56.021, Utilities Code, is amended to
  read as follows:
         Sec. 56.021.  UNIVERSAL SERVICE FUND ESTABLISHED.  The
  commission shall adopt and enforce rules requiring local exchange
  companies to establish a universal service fund to:
               (1)  assist telecommunications providers in providing
  basic local telecommunications service at reasonable rates in high
  cost rural areas under two plans:
                     (A)  the Texas High Cost Universal Service Plan
  (16 T.A.C. Section 26.403); and
                     (B)  the Small and Rural Incumbent Local Exchange
  Company Universal Service Plan (16 T.A.C. Section 26.404);
               (2)  reimburse the telecommunications carrier that
  provides the statewide telecommunications relay access service
  under Subchapter D;
               (3)  finance the specialized telecommunications
  assistance program established under Subchapter E;
               (4)  reimburse the department and the commission for
  costs incurred in implementing this chapter and Chapter 57;
               (5)  reimburse a telecommunications carrier providing
  lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
  amended;
               (6)  finance the implementation and administration of
  an integrated eligibility process created under Section 17.007 for
  customer service discounts relating to telecommunications
  services, including outreach expenses the commission determines
  are reasonable and necessary;
               (7)  reimburse a designated provider under Subchapter
  F;
               (8)  reimburse a successor utility under Subchapter G;
  [and]
               (9)  finance the program established under Subchapter
  H; and
               (10)  finance the rural basic and broadband service
  program established under Subchapter I.
         SECTION 2.  Chapter 56, Utilities Code, is amended by adding
  Subchapter I to read as follows:
  SUBCHAPTER I. RURAL BASIC AND BROADBAND SERVICE PROGRAM
         Sec. 56.351.  SUPPORT FOR BASIC AND BROADBAND SERVICES IN
  RURAL AREAS. (a) The commission shall provide from the universal
  service fund financial assistance for a telecommunications
  provider that holds a certificate of operating authority or a
  service provider certificate of operating authority to build and
  maintain facility-based networks capable of providing access to
  basic local telecommunications service and broadband service in
  rural areas of this state where:
               (1)  an incumbent local exchange company no longer
  seeks support for a particular exchange; and
               (2)  support is necessary to allow the provision of
  services at rates comparable to the benchmark rates established by
  the Federal Communications Commission.
         (b)  Support received under this subchapter may not be used
  for a purpose other than a purpose described by Subsection (a).
         (c)  In an area where an incumbent local exchange company
  provides service and seeks support from the universal service fund,
  telecommunications providers eligible to receive support under
  this subchapter will continue to receive per-line support identical
  to the support received by the incumbent local exchange company.
         Sec. 56.352.  NETWORK STANDARDS. The commission by rule
  shall establish standards for networks built or maintained using
  support disbursed under this subchapter. The standards must require
  a network to provide basic local telecommunications service and
  broadband service and be consistent with standards established by
  the federal government.
         Sec. 56.353.  SUPPORT LEVEL. (a) The commission shall adopt
  rules to ensure that support provided under this subchapter is
  calculated in a manner that is consistent with standard accounting
  principles.
         (b)  Until the commission determines the level of support
  necessary to allow a telecommunications provider eligible to
  receive support under this subchapter to fulfill the requirements
  of this subchapter:
               (1)  on or before September 1, 2017, the provider is
  entitled to receive at least the level of support the provider is
  entitled to receive on the date the provider requests support from
  the commission; and
               (2)  after September 1, 2017, the provider is entitled
  to receive at least the level of support the provider is entitled to
  receive under commission rules effective on September 1, 2017.
         SECTION 3.  This Act takes effect September 1, 2015.