Relating of maintenance of rates and expansion of funds for certain companies.

89(R) HB 3713 - House Committee Report version - Bill Text

By: Capriglione, Anchía

H.B. No. 3713

A BILL TO BE ENTITLED

AN ACT

relating of maintenance of rates and expansion of funds for certain

companies.

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

SECTION 1. Subchapter A, Chapter 56, Utilities Code, is

amended to read as follows:

Sec. 56.025 MAINTENANCE OF RATES AND EXPANSION OF FUND FOR

CERTAIN COMPANIES. (a) In addition to the authority provided by

Section 56.021:

(1) for each local exchange company that serves fewer

than 31,000 access lines and each cooperative, the commission may

adopt a mechanism necessary to maintain reasonable rates for local

exchange telephone service; and

(2) for each local exchange and each cooperative that

serves 31,000 or fewer access lines and that on June 1, 2013, is not

an electing company under Chapter 58 or 59, the commission shall

adopt rules to expand the universal service fund in the

circumstances prescribed by this section.

(b) The commission shall implement a mechanism through the

universal service fund to replace the reasonably projected

reduction in high cost assistance revenue caused by a commission

order, rule, or policy. This subsection does not apply to an order

entered in a proceeding related to an individual company’s revenue

requirements.

[
(c)

The commission shall implement a mechanism to replace

the reasonably projected change in revenue caused by a Federal

Communications Commission order, rule, or policy that changes:

(1)

the federal universal service fund revenue of a

local exchange company; or

(2)

costs or revenue assigned to the intrastate

jurisdiction.
]

(c)
[
(d)
] The commission shall implement a mechanism to

replace the reasonably projected reduction in contribution caused

by a change of commission policy regarding intraLATA “1-plus”

dialing access. In this subsection, “contribution” means the

average intraLATA long distance message telecommunications service

revenue per minute, including intraLATA toll pooling and associated

impacts, less the average message telecommunications service cost

per minute less the average contribution from switched access

multiplied by the projected change in intraLATA “1-plus”minutes.

(d)
[
(e)
] The commission shall implement a mechanism to

replace the reasonably projected increase in costs or decrease in

revenue of the intrastate jurisdiction caused by another

governmental agency’s order, rule, or policy.

(e)
[
(f)
] A mechanism implemented under Subsection (c),

(d)[
, or (e)
] must be through:

(1) an increase in rates, if the increase would not

adversely affect universal service; or

(2) the universal service fund.

(f)
[
(g)
] Not withstanding any other provision of this

section, after December 31, 2013, the commission may not distribute

support granted under this section, including any support granted

before that date, to a local exchange company or cooperative that

serves greater than 31,000 access lines or that is an electing

company under Chapter 58 or 59 on June 1, 2013.

SECTION 2. This Act takes effect September 1, 2025.