TITLE: Relating to the universal service fund.

SUMMARY: Relating to the universal service fund.

FULL TEXT:
AN ACT relating to the universal service fund. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 51.002, Utilities Code, is amended to read as follows: Sec. 51.002. DEFINITIONS. In this subtitle: (1) "Basic local telecommunications service" means: (A) flat rate residential and business local exchange telephone service, including primary directory listings; (B) tone dialing service; (C) [access to operator services] access to facilities with data transmission capability;(D) access to directory assistance services and operator services;(E) access to 911 service provided by a local authority or dual party relay service; (F) the ability to report service problems seven days a week; (G) lifeline and tel-assistance services; and (H) any other service the commission determines after a hearing is a basic local telecommunications service. SECTION 2. Subchapter A, Chapter 56, Utilities Code, is amended by adding Sections 56.003 to read as follows: Sec. 56.003. PROHIBITION AGAINST CROSS-SUBSIDIZATION (a) A company that the commission determines willfully and knowingly uses support received under this chapter to subsidize an activity of the company that is not subject to rate regulation under this subtitle will be subject to a fine by the commission of up to $100,000. The commission may, by rule, determine a procedure for terminating the certification of a company that is found to have an ongoing pattern of such subsidization. SECTION 3. Section 56.022, Utilities Code, is amended to read as follows: Sec. 56.022. UNIFORM CHARGE. (a) The universal service fund is funded by a statewide uniform charge payable by each telecommunications provider and provider of Voice over Internet Protocol as a service that has access to the customer base. (b) A tTelecommunications provider sand providers of Voice over Internet Protocol as a service shall pay the charge in accordance with procedures approved by the commission. (c) The uniform charge is on services and at rates the commission determines. In establishing the charge and the services to which the charge will apply, the commission may not: (1) grant an unreasonable preference or advantage to a telecommunications provider or provider of Voice over Internet Protocol as a service;(2) assess the charge on pay telephone service; or (3) subject a telecommunications provider or provider of Voice over Internet Protocol as a service to unreasonable prejudice or disadvantage;or (4) assess the charge in a manner that is not technology neutral or grants an unreasonable preference based on technology.SECTION 4. Subchapter B, Chapter 56, Utilities Code, is amended by adding Sections 56.034 and 56.035 to read as follows: Sec. 56.034. SUPPORT ALLOCATION. Notwithstanding another provision of this chapter, the commission shall subdivide each exchange that serves both urban and rural areas and may require that support distributed under this chapter be used only for a rural portion of a subdivided exchange. SECTION 5. This Act takes immediate effect if it receives a vote of two-thirds of all members elected to each house, as Provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary to take effect on that date, this Act takes effect on September 1, 2021.