86R367 GRM-D
 
  By: King of Hemphill H.B. No. 669
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to eligibility of certain local exchange companies for
  support from the universal service fund for the provision of
  broadband service.
         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
  the identification process under Section 17.007 for
  telecommunications services;
               (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 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 BROADBAND SERVICE PROGRAM
         Sec. 56.351.  DEFINITION. For the purposes of this
  subchapter, "broadband service" means a mass-market retail service
  by wire or radio that provides the capability to transmit data to
  and receive data from all or substantially all Internet endpoints.
  The term includes any capabilities that are incidental to and
  enable the operation of the communications service but does not
  include dial-up Internet access service.
         Sec. 56.352.  SUPPORT FOR BROADBAND SERVICES IN RURAL AREAS.
  (a) The commission shall provide from the universal service fund
  financial assistance for an incumbent local exchange company to
  build and maintain facility-based networks capable of providing
  access to broadband service in rural areas of this state where
  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)  The commission by rule shall adopt criteria for areas of
  this state to qualify as rural areas for the purposes of this
  subchapter.
         Sec. 56.353.  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 broadband service and be consistent
  with standards established by the federal government.
         Sec. 56.354.  ACCOUNTING. 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.
         SECTION 3.  This Act takes effect September 1, 2019.