|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the distribution of universal service funds to certain |
|
small and rural incumbent local exchange companies. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 56.032, Utilities Code, as effective |
|
September 1, 2017, is amended to read as follows: |
|
Sec. 56.032. ADJUSTMENTS: SMALL AND RURAL INCUMBENT LOCAL |
|
EXCHANGE COMPANY UNIVERSAL SERVICE PLAN. (a) In this section: |
|
(1) "Rate of return" means the Federal Communications |
|
Commission's prescribed rate of return as of the date of any |
|
determination, review, or adjustment under this section. |
|
(2) "Small provider" means: |
|
(A) an incumbent local exchange company or |
|
cooperative that, on September 1, 2013, together with all local |
|
exchange companies affiliated with the company or cooperative on |
|
that date, served 31,000 or fewer access lines in this state; or |
|
(B) a company or cooperative that is a successor |
|
to a company or cooperative described by Paragraph (A). |
|
(b) Except as provided by Subsections (d) through (i) [and
|
|
(e)], 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 any mechanism, including support |
|
reductions resulting from rate rebalancing approved by the |
|
commission, after notice and an opportunity for hearing. In |
|
determining appropriate monthly support amounts, the commission |
|
shall consider the adequacy of basic rates to support universal |
|
service. |
|
(c) On the written request of a small provider that is not an |
|
electing company under Chapter 58 or 59, the commission shall |
|
determine and disburse support to the small provider in fixed |
|
monthly amounts based on an annualized support amount the |
|
commission determines to be sufficient, when combined with |
|
regulated revenues, to permit the small provider the opportunity to |
|
earn a reasonable return in accordance with Section 53.051. A small |
|
provider that makes a request under this section shall continue to |
|
receive the same level of support it was receiving on the date of |
|
the written request until the commission makes a determination or |
|
adjustment through the mechanism described by Subsection (d). |
|
(d) Not later than January 1, 2018, the commission shall |
|
initiate rulemaking proceedings to develop and implement a |
|
mechanism to determine the annualized support amount to be |
|
disbursed under this section. The mechanism must: |
|
(1) require the annual filing of a report by each small |
|
provider that submits a request under Subsection (c) for the |
|
purpose of: |
|
(A) establishing a continued level of support for |
|
the provider or the eligibility of the provider for support |
|
adjustment filings for the purposes of Subsections (f), (g), and |
|
(h); and |
|
(B) determining whether support levels, when |
|
combined with regulated revenues, provide the provider an |
|
opportunity to earn a reasonable return as described in Subsection |
|
(f); |
|
(2) provide requirements for the annual filing, which |
|
may include annual earnings reports filed with the commission under |
|
16 T.A.C. Section 26.73 and any underlying data that, during the |
|
rulemaking process, the commission determines to be reasonably |
|
necessary for the purposes of Subdivision (1); and |
|
(3) provide requirements and procedures for |
|
adjustment proceedings that are consistent with Subsections (g) and |
|
(h). |
|
(e) In a proceeding to adjust support levels using the |
|
mechanism described by Subsection (d), the commission may consider |
|
the small provider's data for a period not to exceed three fiscal |
|
years before the date the proceeding is initiated. |
|
(f) For purposes of the mechanism described by Subsection |
|
(d), a return that is within three percentage points of the rate of |
|
return is deemed reasonable and a support adjustment may not be made |
|
for a small provider whose return falls in that range for the |
|
previous fiscal year. |
|
(g) A small provider whose return is more than three |
|
percentage points below the rate of return may file an application |
|
that is eligible for administrative review or informal disposition |
|
to adjust support to a level that would bring the small provider's |
|
return into the range that would be deemed reasonable under |
|
Subsection (f). Except for good cause, a small provider that files |
|
an application for adjustment under this subsection may not file a |
|
subsequent application for adjustment before the third anniversary |
|
of the date on which the small provider's most recent application |
|
for adjustment is initiated. |
|
(h) There is no presumption that the return is unreasonable |
|
for a small provider whose return is more than three percentage |
|
points above the rate of return. However, on its own motion, the |
|
commission may initiate a proceeding to review the small provider's |
|
support level and after notice and an opportunity for a hearing, |
|
reduce the provider's level of support, if appropriate. Except for |
|
good cause, the commission may not initiate a subsequent adjustment |
|
proceeding for a small provider under this subsection before the |
|
third anniversary of the date on which the small provider's most |
|
recent adjustment proceeding is initiated. |
|
(i) A small provider that is eligible to have support |
|
determined and distributed under this section shall continue to |
|
receive the same level of support it was receiving on August 31, |
|
2017, until the earlier of: |
|
(1) the date on which the commission makes a |
|
determination or adjustment through the mechanism described by |
|
Subsection (d); or |
|
(2) the 61st day after the date the commission adopts |
|
the mechanism described by Subsection (d). |
|
(j) A report or information the commission requires a small |
|
provider to provide under this section is confidential and is not |
|
subject to disclosure under Chapter 552, Government Code. In any |
|
proceeding related to Subsection (d), a third party's access to |
|
confidential information is subject to an appropriate protective |
|
order. |
|
(k) [(g)] This section does not affect the commission's |
|
authority under Chapter 53 or this chapter. |
|
[(h)
Subsections (a), (c), (d), (e), and (f) and any monthly
|
|
support amount approved under those subsections expire September 1,
|
|
2017.] |
|
SECTION 2. This Act takes effect September 1, 2017. |