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