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AN ACT
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relating to the universal service fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 56.023, Utilities Code, is amended by |
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amending Subsections (f), (g), (h), (i), and (k) and adding |
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Subsections (q), (t), and (u) to read as follows: |
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(f) Except as provided by Subsection (g), for an incumbent |
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local exchange company or cooperative that served greater than |
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31,000 access lines in this state on September 1, 2022 [2013], or a |
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company or cooperative that is a successor to such a company or |
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cooperative, the support that the company or cooperative is |
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eligible to receive on December 31, 2023 [2016], under a plan |
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established under Section 56.021(1)(A) is reduced: |
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(1) on January 1, 2024 [2017], to 75 percent of the |
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level of support the company or cooperative is eligible to receive |
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on December 31, 2023 [2016]; |
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(2) on January 1, 2025 [2018], to 50 percent of the |
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level of support the company or cooperative is eligible to receive |
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on December 31, 2023 [2016]; [and] |
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(3) on January 1, 2026 [2019], to 25 percent of the |
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level of support the company or cooperative is eligible to receive |
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on December 31, 2023; and |
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(4) on January 1, 2027, to zero percent of the level of |
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support the company or cooperative is eligible to receive on |
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December 31, 2023 [2016]. |
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(g) After the commission has adopted rules under Subsection |
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(j), an incumbent local exchange company or cooperative that is |
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subject to Subsection (f) may petition the commission to initiate a |
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contested case proceeding as necessary to determine the eligibility |
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of the company or cooperative to receive support under a plan |
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established under Section 56.021(1)(A). A company or cooperative |
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may not file more than one petition under this subsection. On |
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receipt of a petition under this subsection, the commission shall |
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initiate a contested case proceeding to determine the eligibility |
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of the company or cooperative to receive continued support under a |
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plan established under Section 56.021(1)(A) for service in the |
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exchanges that are the subject of the petition. To be eligible to |
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receive support for service in an exchange under this subsection, |
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the company or cooperative must demonstrate that it has a financial |
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need for continued support. The commission must issue a final order |
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on the proceeding not later than the 330th day after the date the |
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petition is filed with the commission. Until the commission issues |
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a final order on the proceeding, the company or cooperative is |
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entitled to receive the total amount of support the company or |
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cooperative was eligible to receive on the date the company or |
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cooperative filed the petition. A company or cooperative that |
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files a petition under this subsection is not subject to Subsection |
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(f) after the commission issues a final order on the proceeding. If |
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the commission determines that a company or cooperative has |
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demonstrated financial need for continued support under this |
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subsection, it shall set the amount of support in the same |
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proceeding. The amount of support set by the commission for an |
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exchange under this subsection may not exceed: |
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(1) 100 percent of the amount of support that the |
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company or cooperative will be eligible to receive on December 31, |
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2023 [2016], if the petition is filed before January 1, 2024 [2016]; |
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(2) 75 percent of the amount of support that the |
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company or cooperative will be eligible to receive on December 31, |
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2023 [2016], if the petition is filed on or after January 1, 2024 |
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[2016], and before January 1, 2025 [2017]; |
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(3) 50 percent of the amount of support the company or |
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cooperative is eligible to receive on December 31, 2023 [2016], if |
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the petition is filed on or after January 1, 2025 [2017], and before |
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January 1, 2026 [2018]; [or] |
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(4) 25 percent of the amount of support that the |
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company or cooperative is eligible to receive on December 31, 2023 |
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[2016], if the petition is filed on or after January 1, 2026 [2018], |
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and before January 1, 2027; or |
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(5) zero percent of the amount of support that the |
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company or cooperative is eligible to receive on December 31, 2023, |
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if the petition is filed on or after January 1, 2027, and before |
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January 1, 2028 [2019]. |
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(h) Except as provided by Subsection (i), for an incumbent |
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local exchange company that is an electing company under Chapter 58 |
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or 59 or a cooperative that served greater than 31,000 access lines |
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in this state on September 1, 2022 [2013], or a company or |
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cooperative that is a successor to such a company or cooperative, |
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the support that the company or cooperative is eligible to receive |
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on December 31, 2024 [2017], under a plan established under Section |
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56.021(1)(B) is reduced: |
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(1) on January 1, 2025 [2018], to 75 percent of the |
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level of support the company or cooperative is eligible to receive |
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on December 31, 2024 [2017]; |
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(2) on January 1, 2026 [2019], to 50 percent of the |
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level of support the company or cooperative is eligible to receive |
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on December 31, 2024 [2017]; [and] |
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(3) on January 1, 2027 [2020], to 25 percent of the |
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level of support the company or cooperative is eligible to receive |
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on December 31, 2024; and |
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(4) on January 1, 2028, to zero percent of the level of |
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support the company or cooperative is eligible to receive on |
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December 31, 2024 [2017]. |
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(i) After the commission has adopted rules under Subsection |
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(j), an incumbent local exchange company or cooperative that is |
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subject to Subsection (h) may petition the commission to initiate a |
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contested case proceeding as necessary to determine the eligibility |
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of the company or cooperative to receive support under a plan |
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established under Section 56.021(1)(B). A company or cooperative |
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may not file more than one petition under this subsection. On |
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receipt of a petition under this subsection, the commission shall |
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initiate a contested case proceeding to determine the eligibility |
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of the company or cooperative to receive continued support under a |
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plan established under Section 56.021(1)(B) for service in the |
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exchanges that are the subject of the petition. To be eligible to |
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receive support for service in an exchange under this subsection, |
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the company or cooperative must demonstrate that it has a financial |
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need for continued support. The commission must issue a final order |
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on the proceeding no later than the 330th day after the date the |
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petition is filed with the commission. Until the commission issues |
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a final order on the proceeding, the company or cooperative shall |
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continue to receive the total amount of support it was eligible to |
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receive on the date the company or cooperative filed a petition |
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under this subsection. A company or cooperative that files a |
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petition under this subsection is not subject to Subsection (h) |
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after the commission issues a final order on the proceeding. If the |
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commission determines that a company or cooperative has |
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demonstrated financial need for continued support under this |
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subsection, it shall set the amount of support in the same |
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proceeding. The amount of support set by the commission for an |
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exchange under this subsection may not exceed: |
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(1) 100 percent of the amount of support that the |
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company or cooperative will be eligible to receive on December 31, |
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2024 [2017], if the petition is filed before January 1, 2025 [2017]; |
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(2) 75 percent of the amount of support that the |
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company or cooperative will be eligible to receive on December 31, |
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2024 [2017], if the petition is filed on or after January 1, 2025 |
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[2017], and before January 1, 2026 [2018]; |
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(3) 50 percent of the amount of support that the |
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company or cooperative is eligible to receive on December 31, 2024 |
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[2017], if the petition is filed on or after January 1, 2026 [2018], |
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and before January 1, 2027 [2019]; [or] |
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(4) 25 percent of the amount of support that the |
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company or cooperative is eligible to receive on December 31, 2024 |
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[2017], if the petition is filed on or after January 1, 2027 [2019], |
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and before January 1, 2028; or |
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(5) zero percent of the amount of support that the |
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company or cooperative is eligible to receive on December 31, 2024, |
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if the petition is filed on or after January 1, 2028, and before |
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January 1, 2029 [2020]. |
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(k) Subsections (g) and (i) do not authorize the commission |
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to initiate a contested case hearing concerning a local exchange |
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company that has elected to participate in a total support |
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reduction plan under 16 T.A.C. Section 26.403 that requires the |
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company to forego funding under a plan established under Section |
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56.021(1) after January 1, 2024 [2017]. This section does not |
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affect any obligation of a local exchange company subject to such a |
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total support reduction plan. |
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(q) Notwithstanding the period for continued support |
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specified by Subsection (p), if the eligible telecommunications |
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provider receiving continued support under that subsection is a |
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cooperative or an affiliate of a cooperative, the |
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telecommunications provider is entitled to continued support |
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through December 31, 2023, at the same monthly per line support |
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amount as the provider is receiving as of the date the support |
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ceases for that exchange for the incumbent local exchange company |
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or cooperative. Support authorized under this subsection ceases |
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December 31, 2023. |
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(t) Not later than September 1 of every fourth year |
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beginning September 1, 2023, the commission shall review and may |
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adjust the standards and criteria to demonstrate financial need for |
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continued support under Subsection (f). |
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(u) Not later than September 1 of every fourth year |
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beginning September 1, 2024, the commission shall review and may |
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adjust the standards and criteria to demonstrate financial need for |
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continued support under Subsection (h). |
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SECTION 2. Subchapter B, Chapter 56, Utilities Code, is |
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amended by adding Sections 56.0231 and 56.0232 to read as follows: |
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Sec. 56.0231. SUPPORT EXPIRED. Support to an incumbent |
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local exchange company or cooperative provided under Section 56.023 |
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must be reduced on December 31, 2024, to zero percent of the amount |
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of support that the company or cooperative is eligible to receive on |
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that date if before December 31, 2022, support to the company or |
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cooperative had been reduced to 25 percent of the support the |
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company or cooperative was eligible to receive. |
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Sec. 56.0232. SUPPORT RELINQUISHED. (a) An eligible |
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telecommunications provider may notify the commission that the |
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provider relinquishes the support it is entitled to receive under |
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this chapter. After notice by the provider, the commission shall |
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require the entity administering the universal service fund to |
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terminate support to the provider. |
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(b) If the commission does not notify the administrator |
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under Subsection (a) of the provider's request before the 90th day |
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after the date the commission receives the request, the provider is |
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entitled to stop receiving the support on that date. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1710 passed the Senate on |
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April 19, 2023, by the following vote: Yeas 30, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1710 passed the House on |
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May 19, 2023, by the following vote: Yeas 137, Nays 6, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |