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  H.B. No. 2603
 
 
 
 
AN ACT
  relating to the distribution of universal service funds to certain
  small and rural local exchange companies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 56.031, Utilities Code, is amended to
  read as follows:
         Sec. 56.031.  ADJUSTMENTS:  TEXAS HIGH COST UNIVERSAL
  SERVICE PLAN. The commission may revise the monthly per line
  support amounts to be made available from the Texas High Cost
  Universal Service Plan [and from the Small and Rural Incumbent
  Local Exchange Company Universal Service Plan at any time after
  September 1, 2007,] after notice and an opportunity for
  hearing.  In determining appropriate monthly per line support
  amounts, the commission shall consider the adequacy of basic rates
  to support universal service.
         SECTION 2.  Subchapter B, Chapter 56, Utilities Code, is
  amended by adding Section 56.032 to read as follows:
         Sec. 56.032. ADJUSTMENTS: SMALL AND RURAL INCUMBENT LOCAL
  EXCHANGE COMPANY UNIVERSAL SERVICE PLAN. (a)  For purposes of this
  section, "consumer price index" means the Consumer Price Index for
  All Urban Consumers, as published by the federal Bureau of Labor
  Statistics of the United States Department of Labor.
         (b)  Except as provided by Subsections (c), (d), (e), and
  (f), the commission may revise the monthly support amounts to be
  made available from the Small and Rural Incumbent Local Exchange
  Company Universal Service Plan by revising the monthly per line
  support amounts, after notice and an opportunity for hearing.  In
  determining appropriate monthly per line support amounts, the
  commission shall consider the adequacy of basic rates to support
  universal service.
         (c)  On the written request of a small or rural incumbent
  local exchange company that receives monthly per line support
  amounts, the commission shall disburse funds to the company in
  fixed monthly amounts based on the company's annualized amount of
  recovery for the calendar year ending on December 31, 2010. A
  company may submit only one request under this subsection and must
  submit the request on or before December 31, 2011.
         (d)  On the written request of a small or rural incumbent
  local exchange company that is not an electing company under
  Chapter 58 or 59, the commission annually shall set the company's
  monthly support amounts for the following 12 months by dividing by
  12 the annualized support amount calculated under this subsection.
  The commission shall calculate the annualized amount:
               (1)  for the initial 12-month period for which a
  company makes an election under this subsection, by:
                     (A)  determining the annualized support amount
  calculated for the requestor in the final order issued by the
  commission in Docket No. 18516; and
                     (B)  adjusting the support amount determined
  under Paragraph (A) at the beginning of each calendar year by a
  factor equal to the most recent consumer price index published at
  that time, beginning with the 1999 calendar year and ending in the
  year the company makes an election under this subsection; and
               (2)  for the 12-month period following the initial
  period for which a company made an election under this subsection
  and for subsequent 12-month periods, by adjusting the most recent
  annualized support amount calculated by the commission by a factor
  equal to the percentage change in the consumer price index for the
  most recent 12-month period.
         (e)  If a company elects to receive monthly support amounts
  under Subsection (d), the commission, on its own motion or on the
  written request of the company, may initiate a proceeding to
  recalculate the most recent annualized support amount to be used as
  the basis for adjustment for a subsequent 12-month period under
  Subsection (d)(2). If, based on the recalculation, the commission
  by order adjusts a company's most recent annualized support amount,
  the adjusted support amount supersedes the annualized support
  amount calculated in accordance with Subsection (d).
         (f)  The commission shall administratively review requests
  filed under Subsections (c) and (d). Except for good cause, the
  commission shall approve the request not later than the 60th day
  after the date the commission determines the company is eligible
  and has met all the procedural requirements under this subchapter.
         (g)  This section does not affect the commission's authority
  under Chapter 53 or this chapter.
         (h)  This section and any monthly support amount approved
  under this section expire on September 1, 2013.
         SECTION 3.  Effective September 1, 2013, Section 56.031,
  Utilities Code, is amended to read as follows:
         Sec. 56.031.  ADJUSTMENTS. The commission may revise the
  monthly per line support amounts to be made available from the Texas
  High Cost Universal Service Plan and from the Small and Rural
  Incumbent Local Exchange Company Universal Service Plan at any time
  after September 1, 2007, after notice and an opportunity for
  hearing.  In determining appropriate monthly per line support
  amounts, the commission shall consider the adequacy of basic rates
  to support universal service.
         SECTION 4.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2603 was passed by the House on May
  13, 2011, by the following vote:  Yeas 138, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2603 on May 23, 2011, by the following vote:  Yeas 137, Nays 2,
  3 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2603 was passed by the Senate, with
  amendments, on May 21, 2011, by the following vote:  Yeas 30, Nays
  1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor