85R13215 JXC-F
 
  By: Cook H.B. No. 4177
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to adjustments to universal service plan support for small
  and rural incumbent local exchange companies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 56, Utilities Code, is
  amended by adding Section 56.0321 to read as follows:
         Sec. 56.0321.  ADJUSTMENTS: SMALL AND RURAL INCUMBENT LOCAL
  EXCHANGE COMPANY UNIVERSAL SERVICE PLAN. (a)  For each incumbent
  local exchange company that serves fewer than 31,000 access lines
  and is not an electing company under Chapter 58 or 59, the monthly
  support amounts under a plan established under Section 56.021(1)(B)
  that the company is eligible to receive on August 31, 2017, may not
  be adjusted before December 1, 2018. 
         (b)  Beginning December 1, 2018, an incumbent local exchange
  company that serves fewer than 31,000 access lines and is not an
  electing company under Chapter 58 or 59 is entitled to receive the
  monthly per line support amount that the company was eligible to
  receive pursuant to the final order issued by the commission in
  Docket No. 18516, unless the commission adjusts the company's level
  of support under Section 56.031 or this section.
         (c)  The commission by rule shall establish procedures,
  standards, and criteria to determine the appropriate level of
  support for an incumbent local exchange company that is subject to
  this section. In adopting rules required by this subsection, the
  commission:
               (1)  shall establish an application process, including
  an opportunity for a contested case hearing, to adjust the support
  provided to a company subject to this section; 
               (2)  shall prescribe standards and criteria to evaluate
  whether a rate increase is an appropriate source of revenue for a
  company subject to this section as an alternative to maintaining or
  increasing the level of support provided to the company;
               (3)  may prescribe standards and criteria to determine
  the appropriate mechanism to adjust the support available to a
  company subject to this section, including rate rebalancing;
               (4)  may prescribe standards and criteria to determine
  the appropriate mechanism necessary to maintain reasonable rates
  for local exchange telephone service for a company subject to this
  section; and
               (5)  may prescribe the information a company subject to
  this chapter may be required to provide to the commission for the
  commission to determine the appropriate level of support and
  whether rate increases are an appropriate source of revenue.
         (d)  This section does not restrict the commission's
  authority under Chapter 53 or this chapter.
         SECTION 2.  Section 56.032, Utilities Code, is repealed.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.