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