By: King of Hemphill H.B. No. 3823

A BILL TO BE ENTITLED

AN ACT

relating to the administration of the universal service fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 56.022, Utilities Code, is amended by amending Subsections (a) and (c) and adding Subsection (d) to read as follows:

(a) The universal service fund is funded by a statewide uniform charge payable by each telecommunications provider that has access to the customer base. The commission may establish the statewide uniform charge as a fixed amount applicable to each communication connection on a competitively and technologically neutral basis. In this subsection, "communication connection" means a voice-enabled telephone access line, wireless voice connection, unique voice over Internet protocol service connection, or other equivalent connection as determined by commission rule.

(c) The uniform is [on services and] at rates the commission determines. In establishing the uniform 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;

(2) assess the charge on pay telephone service; or

(3) subject a telecommunications provider to unreasonable prejudice or disadvantage.

SECTION 2. Sections 56.023, Utilities Code, is amended by amending Subsection (a) and adding Subsection (t) to read as follows:

(a) The commission shall:

(1) in a manner that assures reasonable rates for basic local telecommunications service, adopt eligibility criteria and review procedures, including a method for administrative review, the commission finds necessary to ensure that [fund] the universal service fund and the programs established under this chapter are fully funded and to make distributions from that fund;

(2) determine which telecommunications providers meet the eligibility criteria;

(3) determine the amount of and approve a procedure for reimbursement to telecommunications providers of revenue lost in providing tel-assistance service [under Subchapter 6];

(4) establish and collect fees from the universal service fund necessary to recover the costs the department and the commission incur in administering this chapter and Chapter 57;

(5) approve procedures for the collection and disbursal of the revenue of the universal service fund; and

(6) audit voucher payments and other expenditures made under the specialized telecommunications assistance program established under Subchapter E.

(t) In administering the universal service fund, the commission may not prioritize providing support from the fund for a program described by this chapter over providing support for another program described by this chapter.

SECTION 3. The Public Utility Commission of Texas shall conduct a rulemaking to review the basis of the assessment for funding of the universal service fund and to evaluate the merits of adopting a connections-based assessment model. The Public Utility Commission of Texas shall conclude the rulemaking no later than March 31, 2024.

SECTION 4. 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, 2023.