Bill Text: TX SB1710 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the universal service fund.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2023-06-18 - Effective immediately [SB1710 Detail]
Download: Texas-2023-SB1710-Enrolled.html
S.B. No. 1710 |
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relating to the universal service fund. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 56.023, Utilities Code, is amended by | ||
amending Subsections (f), (g), (h), (i), and (k) and adding | ||
Subsections (q), (t), and (u) to read as follows: | ||
(f) Except as provided by Subsection (g), for an incumbent | ||
local exchange company or cooperative that served greater than | ||
31,000 access lines in this state on September 1, 2022 [ |
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company or cooperative that is a successor to such a company or | ||
cooperative, the support that the company or cooperative is | ||
eligible to receive on December 31, 2023 [ |
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established under Section 56.021(1)(A) is reduced: | ||
(1) on January 1, 2024 [ |
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level of support the company or cooperative is eligible to receive | ||
on December 31, 2023 [ |
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(2) on January 1, 2025 [ |
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level of support the company or cooperative is eligible to receive | ||
on December 31, 2023 [ |
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(3) on January 1, 2026 [ |
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level of support the company or cooperative is eligible to receive | ||
on December 31, 2023; and | ||
(4) on January 1, 2027, to zero percent of the level of | ||
support the company or cooperative is eligible to receive on | ||
December 31, 2023 [ |
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(g) After the commission has adopted rules under Subsection | ||
(j), an incumbent local exchange company or cooperative that is | ||
subject to Subsection (f) may petition the commission to initiate a | ||
contested case proceeding as necessary to determine the eligibility | ||
of the company or cooperative to receive support under a plan | ||
established under Section 56.021(1)(A). A company or cooperative | ||
may not file more than one petition under this subsection. On | ||
receipt of a petition under this subsection, the commission shall | ||
initiate a contested case proceeding to determine the eligibility | ||
of the company or cooperative to receive continued support under a | ||
plan established under Section 56.021(1)(A) for service in the | ||
exchanges that are the subject of the petition. To be eligible to | ||
receive support for service in an exchange under this subsection, | ||
the company or cooperative must demonstrate that it has a financial | ||
need for continued support. The commission must issue a final order | ||
on the proceeding not later than the 330th day after the date the | ||
petition is filed with the commission. Until the commission issues | ||
a final order on the proceeding, the company or cooperative is | ||
entitled to receive the total amount of support the company or | ||
cooperative was eligible to receive on the date the company or | ||
cooperative filed the petition. A company or cooperative that | ||
files a petition under this subsection is not subject to Subsection | ||
(f) after the commission issues a final order on the proceeding. If | ||
the commission determines that a company or cooperative has | ||
demonstrated financial need for continued support under this | ||
subsection, it shall set the amount of support in the same | ||
proceeding. The amount of support set by the commission for an | ||
exchange under this subsection may not exceed: | ||
(1) 100 percent of the amount of support that the | ||
company or cooperative will be eligible to receive on December 31, | ||
2023 [ |
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(2) 75 percent of the amount of support that the | ||
company or cooperative will be eligible to receive on December 31, | ||
2023 [ |
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[ |
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(3) 50 percent of the amount of support the company or | ||
cooperative is eligible to receive on December 31, 2023 [ |
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the petition is filed on or after January 1, 2025 [ |
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January 1, 2026 [ |
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(4) 25 percent of the amount of support that the | ||
company or cooperative is eligible to receive on December 31, 2023 | ||
[ |
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and before January 1, 2027; or | ||
(5) zero percent of the amount of support that the | ||
company or cooperative is eligible to receive on December 31, 2023, | ||
if the petition is filed on or after January 1, 2027, and before | ||
January 1, 2028 [ |
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(h) Except as provided by Subsection (i), for an incumbent | ||
local exchange company that is an electing company under Chapter 58 | ||
or 59 or a cooperative that served greater than 31,000 access lines | ||
in this state on September 1, 2022 [ |
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cooperative that is a successor to such a company or cooperative, | ||
the support that the company or cooperative is eligible to receive | ||
on December 31, 2024 [ |
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56.021(1)(B) is reduced: | ||
(1) on January 1, 2025 [ |
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level of support the company or cooperative is eligible to receive | ||
on December 31, 2024 [ |
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(2) on January 1, 2026 [ |
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level of support the company or cooperative is eligible to receive | ||
on December 31, 2024 [ |
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(3) on January 1, 2027 [ |
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level of support the company or cooperative is eligible to receive | ||
on December 31, 2024; and | ||
(4) on January 1, 2028, to zero percent of the level of | ||
support the company or cooperative is eligible to receive on | ||
December 31, 2024 [ |
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(i) After the commission has adopted rules under Subsection | ||
(j), an incumbent local exchange company or cooperative that is | ||
subject to Subsection (h) may petition the commission to initiate a | ||
contested case proceeding as necessary to determine the eligibility | ||
of the company or cooperative to receive support under a plan | ||
established under Section 56.021(1)(B). A company or cooperative | ||
may not file more than one petition under this subsection. On | ||
receipt of a petition under this subsection, the commission shall | ||
initiate a contested case proceeding to determine the eligibility | ||
of the company or cooperative to receive continued support under a | ||
plan established under Section 56.021(1)(B) for service in the | ||
exchanges that are the subject of the petition. To be eligible to | ||
receive support for service in an exchange under this subsection, | ||
the company or cooperative must demonstrate that it has a financial | ||
need for continued support. The commission must issue a final order | ||
on the proceeding no later than the 330th day after the date the | ||
petition is filed with the commission. Until the commission issues | ||
a final order on the proceeding, the company or cooperative shall | ||
continue to receive the total amount of support it was eligible to | ||
receive on the date the company or cooperative filed a petition | ||
under this subsection. A company or cooperative that files a | ||
petition under this subsection is not subject to Subsection (h) | ||
after the commission issues a final order on the proceeding. If the | ||
commission determines that a company or cooperative has | ||
demonstrated financial need for continued support under this | ||
subsection, it shall set the amount of support in the same | ||
proceeding. The amount of support set by the commission for an | ||
exchange under this subsection may not exceed: | ||
(1) 100 percent of the amount of support that the | ||
company or cooperative will be eligible to receive on December 31, | ||
2024 [ |
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(2) 75 percent of the amount of support that the | ||
company or cooperative will be eligible to receive on December 31, | ||
2024 [ |
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[ |
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(3) 50 percent of the amount of support that the | ||
company or cooperative is eligible to receive on December 31, 2024 | ||
[ |
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and before January 1, 2027 [ |
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(4) 25 percent of the amount of support that the | ||
company or cooperative is eligible to receive on December 31, 2024 | ||
[ |
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and before January 1, 2028; or | ||
(5) zero percent of the amount of support that the | ||
company or cooperative is eligible to receive on December 31, 2024, | ||
if the petition is filed on or after January 1, 2028, and before | ||
January 1, 2029 [ |
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(k) Subsections (g) and (i) do not authorize the commission | ||
to initiate a contested case hearing concerning a local exchange | ||
company that has elected to participate in a total support | ||
reduction plan under 16 T.A.C. Section 26.403 that requires the | ||
company to forego funding under a plan established under Section | ||
56.021(1) after January 1, 2024 [ |
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affect any obligation of a local exchange company subject to such a | ||
total support reduction plan. | ||
(q) Notwithstanding the period for continued support | ||
specified by Subsection (p), if the eligible telecommunications | ||
provider receiving continued support under that subsection is a | ||
cooperative or an affiliate of a cooperative, the | ||
telecommunications provider is entitled to continued support | ||
through December 31, 2023, at the same monthly per line support | ||
amount as the provider is receiving as of the date the support | ||
ceases for that exchange for the incumbent local exchange company | ||
or cooperative. Support authorized under this subsection ceases | ||
December 31, 2023. | ||
(t) Not later than September 1 of every fourth year | ||
beginning September 1, 2023, the commission shall review and may | ||
adjust the standards and criteria to demonstrate financial need for | ||
continued support under Subsection (f). | ||
(u) Not later than September 1 of every fourth year | ||
beginning September 1, 2024, the commission shall review and may | ||
adjust the standards and criteria to demonstrate financial need for | ||
continued support under Subsection (h). | ||
SECTION 2. Subchapter B, Chapter 56, Utilities Code, is | ||
amended by adding Sections 56.0231 and 56.0232 to read as follows: | ||
Sec. 56.0231. SUPPORT EXPIRED. Support to an incumbent | ||
local exchange company or cooperative provided under Section 56.023 | ||
must be reduced on December 31, 2024, to zero percent of the amount | ||
of support that the company or cooperative is eligible to receive on | ||
that date if before December 31, 2022, support to the company or | ||
cooperative had been reduced to 25 percent of the support the | ||
company or cooperative was eligible to receive. | ||
Sec. 56.0232. SUPPORT RELINQUISHED. (a) An eligible | ||
telecommunications provider may notify the commission that the | ||
provider relinquishes the support it is entitled to receive under | ||
this chapter. After notice by the provider, the commission shall | ||
require the entity administering the universal service fund to | ||
terminate support to the provider. | ||
(b) If the commission does not notify the administrator | ||
under Subsection (a) of the provider's request before the 90th day | ||
after the date the commission receives the request, the provider is | ||
entitled to stop receiving the support on that date. | ||
SECTION 3. 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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1710 passed the Senate on | ||
April 19, 2023, by the following vote: Yeas 30, Nays 1. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1710 passed the House on | ||
May 19, 2023, by the following vote: Yeas 137, Nays 6, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |