87R1238 BRG-D
 
  By: King of Hemphill H.B. No. 425
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of the universal service fund for the provision
  of broadband service in underserved rural areas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 56.001, Utilities Code, is amended to
  read as follows:
         Sec. 56.001.  DEFINITIONS. In this chapter:
               (1)  "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.
               (2)  "Broadband service provider" means a provider of
  broadband service.
               (3) [(1)]  "Department" means the Department of
  Assistive and Rehabilitative Services.
               (4) [(2)]  "Designated provider" means a
  telecommunications provider designated by the commission to
  provide services to an uncertificated area under Subchapter F.
               (5) [(2-a)]  "Executive commissioner" means the
  executive commissioner of the Health and Human Services Commission.
         SECTION 2.  Subchapter A, Chapter 56, Utilities Code, is
  amended by adding Section 56.003 to read as follows:
         Sec. 56.003.  JURISDICTION OVER BROADBAND SERVICE
  PROVIDERS. (a) The commission has jurisdiction relating to
  broadband service providers only as necessary to enforce this
  chapter and rules adopted under this chapter.
         (b)  This chapter does not otherwise grant the commission
  authority to regulate broadband services or broadband service
  providers.
         SECTION 3.  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, and only those broadband service providers that elect to
  participate in the program under Subchapter I, 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)  provide support for the rural broadband service
  program established under Subchapter I.
         SECTION 4.  Section 56.022, Utilities Code, is amended to
  read as follows:
         Sec. 56.022.  UNIFORM CHARGE. (a) The universal service
  fund is funded by a statewide uniform charge payable by each:
               (1)  telecommunications provider that has access to the
  customer base; and
               (2)  broadband service provider only to the extent the
  provider elects to participate in the program under Subchapter I.
         (b)  Each [A] telecommunications provider and each broadband
  service provider that elects to participate in the program under
  Subchapter I shall pay the charge in accordance with procedures
  approved by the commission.
         (c)  The uniform charge is on services and at rates the
  commission determines. In establishing the charge and the services
  to which the charge will apply, the commission may not:
               (1)  grant an unreasonable preference or advantage to a
  telecommunications provider or a broadband service provider that
  elects to participate in the program under Subchapter I;
               (2)  assess the charge on pay telephone service; or
               (3)  subject a telecommunications provider or electing
  broadband service provider to unreasonable prejudice or
  disadvantage.
         (d)  The commission may establish separate uniform charges
  for telecommunications providers and broadband service providers.
         (e)  Money from the uniform charge on telecommunications
  providers may only be used to fund programs under Sections
  56.021(1) through (9). Money from the uniform charge on broadband
  service providers that elect to participate in the program under
  Subchapter I may only be used to fund the rural broadband service
  program under Section 56.021(10).
         (f)  The commission may assess a uniform charge on a
  broadband service provider only if the provider notifies the
  commission of the provider's election to participate in the program
  established under Subchapter I.
         (g)  A broadband service provider may notify the commission
  at any time of the provider's intention to discontinue its
  participation in the program established under Subchapter I. The
  provider's election to discontinue participation is effective on
  the 60th day after the date that the commission receives the
  notification.
         SECTION 5.  Subchapter B, Chapter 56, Utilities Code, is
  amended by adding Section 56.0235 to read as follows:
         Sec. 56.0235.  COMMISSION POWERS AND DUTIES RELATING TO
  ELECTING BROADBAND SERVICE PROVIDERS. In addition to the powers
  and duties provided by Section 56.023, the commission shall:
               (1)  adopt eligibility criteria for broadband service
  providers that elect to participate in the program under Subchapter
  I and review procedures, including a method for administrative
  review, the commission finds necessary to fund the universal
  service fund in accordance with Section 56.022(f) for the purposes
  of Subchapter I and to make distributions from that fund to electing
  broadband service providers;
               (2)  determine which electing broadband service
  providers meet the eligibility criteria; and
               (3)  approve procedures for the collection and
  disbursal to electing broadband service providers of the revenue of
  the universal service fund received from electing broadband service
  providers.
         SECTION 6.  Sections 56.024(a) and (b), Utilities Code, are
  amended to read as follows:
         (a)  The commission may require a telecommunications
  provider, or a broadband service provider that elects to
  participate in the program under Subchapter I, to provide a report
  or information necessary to assess contributions, broadband
  charges, and disbursements to the universal service fund.
         (b)  A report or information the commission requires a
  telecommunications provider, or a broadband service provider that
  elects to participate in the program under Subchapter I, to provide
  under Subsection (a) is confidential and not subject to disclosure
  under Chapter 552, Government Code.
         SECTION 7.  Chapter 56, Utilities Code, is amended by adding
  Subchapter I to read as follows:
  SUBCHAPTER I. RURAL BROADBAND SERVICE PROGRAM
         Sec. 56.351.  SUPPORT FOR BROADBAND SERVICES IN UNDERSERVED
  RURAL AREAS. (a) The commission shall provide from the universal
  service fund support for broadband service providers to offer
  retail broadband service in underserved rural areas of this state
  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 underserved rural areas for the purposes of
  this subchapter.
         (d)  A broadband service provider must notify the commission
  of the provider's election to participate in the program
  established under this subchapter and pay the uniform charge under
  Section 56.022 before the provider may receive support under this
  subchapter.
         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 broadband service and be consistent
  with standards established by the federal government.
         Sec. 56.353.  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 8.  This Act takes effect September 1, 2021.