### TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

JUDGMENT RENDERED JUNE 30, 2022

NO. 03-21-00294- CV

Texas Telephone Association and Texas Statewide Telephone Cooperative, Inc., and Their Participating Members; Windstream Services, LLC; Texas Windst ream, LLC (d/b/a Windstream Communications); Windstream Communications Kerrville, LLC (d/b/a

Windstream Communications); Valor Telecommunications of Texas, LLC (d/b/a Windstream Communications Southwest); Windstream Sugar Land LLC; Central Telephone Compan y of Texas, Inc. (d/b/a CenturyLink); CenturyTel of Lake Dallas, Inc. (d/b/a CenturyLink); CenturyTel of Port Aransas, Inc. (d/b/a CenturyLink); CenturyTel of San Marcos, Inc. (d/b/a CenturyLink); and United Telephone Company of Texas, Inc. (d/b/a CenturyL ink)

, Appellant s

v.

Public Utility Commission of Texas; Peter Lake, Chairman; Will McAdams, Commissioner; Lori Cobos, Commissioner; And Jimmy Glotfelty, Commissioner, Each in His or Her Official Capacity at the Public Utility Commission of Texas, Appelle es

APPEAL FROM THE 200TH DISTRICT COURT OF TRAVIS COUNTY

BEFORE CHIEF JUSTICE BYRNE, JUSTICES TRIANA AND KELLY AFFRIMED IN PART, REVERSED AND RENDERED IN PART,

REVERSED AND REMANDED IN PART

OPINION BY JUSTICE TRIANA

This is an appeal from the judgment signed by the tr ia l cou rt on Ju ne 7, 2021. Having reviewed

the record and the parties’ arguments, the Court holds that there was reversible error in the

court’s judgment

. The Co urt reverses the trial court’s judgment in part and renders judgment a s

the trial court should have as follows:(1) Pursuant to the Uniform Declaratory Judgment s Act (UDJA)

, 1 the Co urt declare s that the Commissioners are acting ultra vires by ( i ) not fully funding TUSF, ( ii ) implementing a hierarchy of funding among TUSF programs and enforcing the December 17, 2020 C ontract Amendment, and ( iii ) failing to fully pay all disbursements required by PURA and the Commission’s existing TUSF orders and

commitments

.

(2) Pur su ant to the Ad ministrative Procedures Act (AP A) 2

— particularly Tex. Gov ’ t
Code § 2001.038(a)

— the Court declare s :

(a) the Commission ’s June 202 0 decision t o not fully fund TUSF and to initiate

the creation of a hierarchy of funding among TUSF programs is v oid and

(b) the December 2020 Contract Amendment is void.

(3) The Court permanently enjoin s the following:

(a) the Commissioners from not fully fund ing TUSF as required by statute an d from failing to fully pay all disbursements req uired by PURA and the

Commission’ s existing TUSF o rd ers and commitments

, and

(b) the Commission and the Commissioners from enforcing the December 2020

Contract Amendment

.

Further

, th e Court rev erses the dismiss al of the Appellants ’ request for a writ of mandam us base d

on their ultra vires c laims. On remand

, the trial court shall issue a writ of mandamus order ing

the Commissioners to take immediate action to fulfill their duties i mpos ed by law to full y fund

all TUSF programs and to make all disbursements requi red by PURA and the Commission’s

existing TUSF orders and commitments

. 3 T h e Court also reverses the dismiss al of the

A p pellants ’ regulat ory

- takings claim and render s judgment granting their summary

- judgment as

to this claim. The Court remand s to the trial court th e Appellants ’ regulato ry

- takings claim for a

1 Tex. Civ. Prac. & Rem. Code §§ 37.001

- 37.011

. 2 Tex. Gov’t Code §§ 2001.001

- .90 3

. 3 Se e Tex. Gov’t Code § 22.221 ( establishing power of courts of appeals to issue writs of mandamus ag ai nst certain judges); id. § 24.0 11 (establishing district courts’ power to grant writs of mandamus)

.determination of the actual damages and the Appellants ’ claim for attorneys’ fees under

the UDJA

.

The Court affi rm s th e tr ia l court’s d ismissal of the Rural Providers’ request for

mandamus relief in connection with their APA

- rulema king claim.

The appell ee s shal l pay all costs r elating to this appeal, both in th is C ourt and in

the court below.