84R9639 JXC-D
	By: Guillen	H.B. No. 3440

	A BILL TO BE ENTITLED
	AN ACT
	relating to eligibility of certain rural companies for support from
	the universal service fund.
	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
	an integrated eligibility process created under Section 17.007 for
	customer service discounts relating to telecommunications
	services, including outreach expenses the commission determines
	are reasonable and necessary;
	(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 basic and 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 BASIC AND BROADBAND SERVICE PROGRAM
	Sec. 56.351.  SUPPORT FOR BASIC AND BROADBAND SERVICES IN
	RURAL AREAS. (a) The commission shall provide from the universal
	service fund financial assistance for a telecommunications
	provider that holds a certificate of operating authority or a
	service provider certificate of operating authority to build and
	maintain facility-based networks capable of providing access to
	basic local telecommunications service and broadband service in
	rural areas of this state where:
	(1)  an incumbent local exchange company no longer
	seeks support for a particular exchange; and
	(2)  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)  In an area where an incumbent local exchange company
	provides service and seeks support from the universal service fund,
	telecommunications providers eligible to receive support under
	this subchapter will continue to receive per-line support identical
	to the support received by the incumbent local exchange company.
	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 basic local telecommunications service and
	broadband service and be consistent with standards established by
	the federal government.
	Sec. 56.353.  SUPPORT LEVEL. (a) 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.
	(b)  Until the commission determines the level of support
	necessary to allow a telecommunications provider eligible to
	receive support under this subchapter to fulfill the requirements
	of this subchapter:
	(1)  on or before September 1, 2017, the provider is
	entitled to receive at least the level of support the provider is
	entitled to receive on the date the provider requests support from
	the commission; and
	(2)  after September 1, 2017, the provider is entitled
	to receive at least the level of support the provider is entitled to
	receive under commission rules effective on September 1, 2017.
	SECTION 3.  This Act takes effect September 1, 2015.