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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of the universal service fund for the provision |
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of broadband service in underserved rural areas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 56.001, Utilities Code, is amended by |
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adding Subdivisions (3) and (4) to read as follows: |
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(3) "Broadband service" means a mass-market retail |
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service by wire or radio that provides the capability to transmit |
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data to and receive data from all or substantially all Internet |
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endpoints. The term includes any capabilities that are incidental |
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to and enable the operation of the communications service but does |
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not include dial-up Internet access service. |
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(4) "Broadband service provider" means a provider of |
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broadband service. |
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SECTION 2. Subchapter A, Chapter 56, Utilities Code, is |
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amended by adding Section 56.003 to read as follows: |
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Sec. 56.003. JURISDICTION OVER BROADBAND SERVICE |
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PROVIDERS. (a) The commission has jurisdiction relating to |
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broadband service providers only as necessary to enforce this |
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chapter and rules adopted under this chapter. |
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(b) This chapter does not otherwise grant the commission |
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authority to regulate broadband services or broadband service |
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providers. |
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SECTION 3. Section 56.021, Utilities Code, is amended to |
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read as follows: |
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Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The |
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commission shall adopt and enforce rules requiring local exchange |
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companies, and only those broadband service providers that elect to |
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participate in the program under Subchapter I, to establish a |
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universal service fund to: |
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(1) assist telecommunications providers in providing |
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basic local telecommunications service at reasonable rates in high |
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cost rural areas under two plans: |
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(A) the Texas High Cost Universal Service Plan |
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(16 T.A.C. Section 26.403); and |
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(B) the Small and Rural Incumbent Local Exchange |
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Company Universal Service Plan (16 T.A.C. Section 26.404); |
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(2) reimburse the telecommunications carrier that |
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provides the statewide telecommunications relay access service |
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under Subchapter D; |
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(3) finance the specialized telecommunications |
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assistance program established under Subchapter E; |
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(4) reimburse the department and the commission for |
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costs incurred in implementing this chapter and Chapter 57; |
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(5) reimburse a telecommunications carrier providing |
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lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as |
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amended; |
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(6) finance the implementation and administration of |
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the identification process under Section 17.007 for |
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telecommunications services; |
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(7) reimburse a designated provider under Subchapter |
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F; |
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(8) reimburse a successor utility under Subchapter G; |
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[and] |
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(9) finance the program established under Subchapter |
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H; and |
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(10) provide support for the rural broadband service |
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program established under Subchapter I. |
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SECTION 4. Section 56.022, Utilities Code, is amended to |
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read as follows: |
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Sec. 56.022. UNIFORM CHARGE. (a) The universal service |
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fund is funded by a statewide uniform charge payable by each: |
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(1) telecommunications provider that has access to the |
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customer base; and |
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(2) broadband service provider only to the extent the |
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provider elects to participate in the program under Subchapter I. |
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(b) Each [A] telecommunications provider and each broadband |
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service provider that elects to participate in the program under |
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Subchapter I shall pay the charge in accordance with procedures |
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approved by the commission. |
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(c) The uniform charge is on services and at rates the |
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commission determines. In establishing the charge and the services |
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to which the charge will apply, the commission may not: |
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(1) grant an unreasonable preference or advantage to a |
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telecommunications provider or a broadband service provider that |
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elects to participate in the program under Subchapter I; |
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(2) assess the charge on pay telephone service; or |
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(3) subject a telecommunications provider or electing |
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broadband service provider to unreasonable prejudice or |
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disadvantage. |
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(d) The commission may establish separate uniform charges |
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for telecommunications providers and broadband service providers. |
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(e) Funds from the uniform charge on telecommunications |
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providers may only be used to fund programs under Sections |
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56.021(1) through (9). Funds from the uniform charge on broadband |
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service providers that elect to participate in the program under |
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Subchapter I may only be used to fund the rural broadband service |
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program under Section 56.021(10). |
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(f) The commission may assess a uniform charge on a |
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broadband service provider only if the provider notifies the |
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commission of the provider's election to participate in the program |
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established under Subchapter I. |
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(g) A broadband service provider may notify the commission |
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at any time of the provider's intention to discontinue its |
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participation. The election is effective on the 60th day after the |
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date of the notification. |
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SECTION 5. Subchapter B, Chapter 56, Utilities Code, is |
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amended by adding Section 56.0235 to read as follows: |
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Sec. 56.0235. COMMISSION POWERS AND DUTIES RELATING TO |
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ELECTING BROADBAND SERVICE PROVIDERS. In addition to the powers |
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and duties provided by Section 56.023, the commission shall: |
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(1) adopt eligibility criteria for broadband service |
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providers that elect to participate in the program under Subchapter |
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I and review procedures, including a method for administrative |
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review, the commission finds necessary to manage crediting the |
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broadband charge receipts to the universal service fund in |
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accordance with Section 56.022(f) for the purposes of Subchapter I |
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and to make distributions of the broadband charge receipts from |
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that fund to electing broadband service providers; |
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(2) determine which electing broadband service |
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providers meet the eligibility criteria; and |
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(3) approve procedures for the collection and |
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disbursal to electing broadband service providers of the broadband |
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charge receipts the universal service fund received from electing |
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broadband service providers. |
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SECTION 6. Sections 56.024(a) and (b), Utilities Code, are |
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amended to read as follows: |
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(a) The commission may require a telecommunications |
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provider, or a broadband service provider that elects to |
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participate in the program under Subchapter I, to provide a report |
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or information necessary to assess contributions, broadband |
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charges, and disbursements to the universal service fund. |
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(b) A report or information the commission requires a |
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telecommunications provider, or a broadband service provider that |
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elects to participate in the program under Subchapter I, to provide |
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under Subsection (a) is confidential and not subject to disclosure |
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under Chapter 552, Government Code. |
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SECTION 7. Chapter 56, Utilities Code, is amended by adding |
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Subchapter I to read as follows: |
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SUBCHAPTER I. RURAL BROADBAND SERVICE PROGRAM |
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Sec. 56.351. SUPPORT FOR BROADBAND SERVICES IN UNDERSERVED |
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RURAL AREAS. (a) The commission shall provide from broadband |
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charge receipts from electing providers, support for broadband |
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service providers to offer retail broadband service in underserved |
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rural areas of this state at rates comparable to the benchmark rates |
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established by the Federal Communications Commission. |
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(b) Support received under this subchapter may not be used |
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for a purpose other than a purpose described by Subsection (a). |
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(c) The commission by rule shall adopt criteria for areas of |
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this state to qualify as underserved rural areas for the purposes of |
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this subchapter. |
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(d) A broadband service provider must notify the commission |
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of the provider's election to participate in the program |
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established under this subchapter and pay the uniform charge under |
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Section 56.022 before the provider may receive financial assistance |
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under this subchapter. |
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Sec. 56.352. NETWORK STANDARDS. The commission by rule |
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shall establish standards for networks built or maintained using |
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support disbursed under this subchapter. The standards must |
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require a network to provide broadband service and be consistent |
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with standards established by the federal government. |
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Sec. 56.353. ACCOUNTING. The commission shall adopt rules |
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to ensure that support provided under this subchapter is calculated |
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in a manner that is consistent with standard accounting principles. |
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SECTION 8. This Act takes effect September 1, 2019. |