Bill Text: TX HB3127 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the authority of certain telecommunications providers to commit to making infrastructure and network improvements in exchange for support from the universal service fund.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-04-15 - Left pending in committee [HB3127 Detail]
Download: Texas-2015-HB3127-Introduced.html
By: King of Hemphill | H.B. No. 3127 |
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relating to the authority of certain telecommunications providers | ||
to commit to making infrastructure and network improvements in | ||
exchange for support from the universal service fund. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 2, Utilities Code, is amended | ||
by adding Chapter 53A to read as follows: | ||
CHAPTER 53A. RURAL ADVANCED PLAN FOR INFRASTRUCTURE DEPLOYMENT | ||
Sec. 53A.001. POLICY. In accordance with the policy stated | ||
in Section 51.001(g), considering the differences in the geographic | ||
and economic challenges posed by providing basic local | ||
telecommunications services and competitive and advanced | ||
telecommunications services to rural areas as opposed to urban | ||
areas, the benefits incident to those services, the status of | ||
universal service in the rural areas of this state, state and | ||
national initiatives for widespread deployment of broadband | ||
services, and the telecommunications services network and | ||
infrastructure advancements needed to make possible the future | ||
deployment of an electric smart grid in rural areas, it is the | ||
policy of this state to: | ||
(1) upgrade and maintain the telecommunications | ||
services infrastructure in rural areas of this state in an effort | ||
to: | ||
(A) provide to each resident of this state a | ||
network capable of providing access to basic local | ||
telecommunications services and advanced telecommunications | ||
services so that a majority of residents in rural areas have the | ||
option to use those services; and | ||
(B) ensure that each resident has advanced | ||
telecommunications services to maintain the role of this state as a | ||
leader in commerce and education; | ||
(2) ensure that the residents of rural areas have | ||
access to a wide range of advanced telecommunications services and | ||
other competitive benefits in a manner and at prices similar to the | ||
access available to residents in urban areas; | ||
(3) provide the necessary infrastructure in rural | ||
areas to support access to an array of telecommunications, data, | ||
and video services, economic development and educational | ||
opportunities, and telemedicine applications; | ||
(4) provide the required underlying primary network | ||
infrastructure to support major state and national energy policy | ||
initiatives established to create an electric smart grid that | ||
requires the support of an advanced telecommunications services | ||
network; | ||
(5) provide incentives and flexibility similar to | ||
programs available in urban areas for small incumbent local | ||
exchange companies that serve rural areas to complete a basic local | ||
and advanced telecommunications services infrastructure that will | ||
support universal service; and | ||
(6) promote economic stabilization and growth in rural | ||
areas through basic local and advanced telecommunications services | ||
networks. | ||
Sec. 53A.002. DEFINITIONS. In this chapter: | ||
(1) "Advanced telecommunications services" includes | ||
high speed, switched, broadband telecommunications service that | ||
enables users to originate and receive high quality voice, data, | ||
graphics, and video telecommunications. | ||
(2) "Community center" means an organized public or | ||
private entity that provides a location for specialized groups or | ||
the general public to meet for group activities involving | ||
community, educational, patriotic, political, public information, | ||
recreational, religious, or social functions. The term includes | ||
recreational centers, senior centers, youth centers, and publicly | ||
owned meeting facilities. The commission may by rule designate | ||
additional types of facilities or entities as community centers. | ||
(3) "Educational institution" has the meaning | ||
assigned by Section 57.021. | ||
(4) "Electing provider" means a small provider that | ||
elects to be subject to the infrastructure commitment and | ||
corresponding regulation under this chapter. | ||
(5) "Emergency services facility" means a facility | ||
from which a person, including a firefighter, paramedic, emergency | ||
medical technician, police officer, sheriff, constable, or other | ||
state or federal law enforcement representative, responds to | ||
emergencies, including 9-1-1 calls. | ||
(6) "Library" means: | ||
(A) a public library or regional library system, | ||
as defined by Section 441.122, Government Code; | ||
(B) a library operated by an institution of | ||
higher education or a school district; or | ||
(C) a library operated by a nonprofit | ||
corporation, as defined by Section 441.221, Government Code. | ||
(7) "Private network services" means | ||
telecommunications services, including basic local | ||
telecommunications services, broadband services, customized | ||
services, and packaged network services. | ||
(8) "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 Subparagraph (A). | ||
(9) "Smart grid" means infrastructure required to | ||
produce an advanced electric energy grid system under the state and | ||
national policy initiatives under the Energy Independence and | ||
Security Act of 2007 (42 U.S.C. Section 17001 et seq.). | ||
(10) "Telemedicine center" means a facility that is | ||
equipped to transmit, by video, data, or voice service, medical | ||
information for the diagnosis or treatment of an illness or disease | ||
and that is: | ||
(A) owned or operated by a public or | ||
not-for-profit hospital; or | ||
(B) owned by a state-licensed health care | ||
practitioner and operated on a nonprofit basis. | ||
Sec. 53A.003. CHAPTER CONTROLS. To the extent this chapter | ||
conflicts with Chapter 53, this chapter controls. | ||
Sec. 53A.004. ELECTION. (a) A small provider that is not | ||
an electing company under Chapter 58 or 59 as of September 1, 2013, | ||
may elect to be subject to this chapter and make the corresponding | ||
infrastructure commitment under this chapter by notifying the | ||
commission in writing of the election. | ||
(b) The notice must include the information required by | ||
Section 56.034 and a statement that the provider agrees to fulfill | ||
the infrastructure commitment prescribed by this chapter. | ||
(c) A small provider may not revoke an election. | ||
Sec. 53A.005. INFRASTRUCTURE COMMITMENT. (a) After the | ||
date the commission receives notice of the small provider's | ||
election under Section 53A.004, the electing provider shall: | ||
(1) commit to make all reasonable efforts and | ||
investments in this state necessary to improve or upgrade network | ||
infrastructure in the manner described by this chapter; | ||
(2) work to ensure that the electing provider's | ||
network backbone interoffice facilities are capable of supporting | ||
services that include, at a minimum, broadband speeds that are not | ||
less than the minimum speeds required by the Federal Communications | ||
Commission, voice services, video signal at a quality level | ||
comparable to a television broadcast signal, and other reasonably | ||
anticipated basic local or advanced telecommunications services | ||
that may become available to the public in the future; and | ||
(3) work to ensure that all new or upgraded local loops | ||
that are the subject of an equitable request for service are capable | ||
of supporting basic local and advanced telecommunications | ||
services, including broadband service at a speed that is not less | ||
than the minimum broadband speed required by the Federal | ||
Communications Commission. | ||
(b) To meet the requirements of this chapter, an electing | ||
provider may use any technology capable of achieving the required | ||
level of service capabilities. This includes both new construction | ||
and upgrades to existing facilities. | ||
Sec. 53A.006. EQUITABLE REQUESTS FOR SERVICE. (a) For the | ||
purposes of this chapter, a request for service is considered an | ||
equitable request for service only if provision of the requested | ||
service by the electing provider receiving the request is | ||
technologically and economically feasible, including the provision | ||
of network extensions or upgrades necessary to support any services | ||
the requesting entity is receiving at the time the request is made | ||
and other reasonably anticipated basic local or advanced | ||
telecommunications services that may become available to the public | ||
in the future. | ||
(b) An electing provider shall determine whether a request | ||
for service is an equitable request. If the electing provider | ||
determines that the request is not an equitable request, the | ||
electing provider shall provide written notice of that | ||
determination to the requesting person. The requesting person may | ||
appeal to the commission a determination that a request for service | ||
is not an equitable request. | ||
(c) An electing provider may deny a request that is not an | ||
equitable request. An infrastructure commitment associated with a | ||
denied request is waived. | ||
(d) If the electing provider or the commission determines | ||
that a request for service is an equitable request, the electing | ||
provider shall, regardless of technology used, work to ensure that | ||
the provider meets the commitments prescribed by Section 53A.005. | ||
Sec. 53A.007. PRIVATE NETWORK SERVICES FOR CERTAIN | ||
ENTITIES. (a) An electing provider shall, after receiving an | ||
equitable request for service under Section 53A.006, provide | ||
private network services to: | ||
(1) a community center; | ||
(2) an educational institution; | ||
(3) a library; | ||
(4) a public or not-for-profit emergency services | ||
facility; | ||
(5) a telemedicine center; or | ||
(6) a legally constituted consortium of entities | ||
listed in this subsection. | ||
(b) The electing provider shall provide the private network | ||
services for the private and sole use of the receiving entity or | ||
entities. The provider may provide the services jointly with a | ||
facility that is used to provide another service to another | ||
customer. | ||
(c) The entities described by Subsection (a) are a special | ||
class of customers for the purposes of the private network for | ||
distance learning, telemedicine, and information-sharing uses. | ||
(d) An electing provider may provide a private network | ||
service under a customer-specific contract. | ||
(e) The entities described by Subsection (a) warrant | ||
preferred rate treatment. An electing provider shall provide | ||
private network services to those entities at a reduced rate equal | ||
to 65 percent of the amount owed under the customer-specific | ||
contract or under the otherwise applicable tariffed rate after | ||
applicable federal discounts are applied. | ||
(f) On request of an electing provider, the commission shall | ||
provide reimbursement through the universal service fund, in | ||
addition to monthly support received under Section 56.034(d)(1) or | ||
(2), for reduced rates for private network services for entities | ||
described by Subsection (a). The amount of reimbursement shall be | ||
equal to the difference between the electing provider's | ||
customer-specific contract or otherwise applicable tariffed rate | ||
for that service, and the reduced rate offered for that service | ||
under this chapter. | ||
Sec. 53A.008. WAIVER OF INFRASTRUCTURE COMMITMENT | ||
REQUIREMENTS. (a) On the request of an electing provider, the | ||
commission may waive an infrastructure commitment requirement | ||
under Section 53A.005 or 53A.009 or a requirement under an | ||
equitable request for service under Section 53A.006. | ||
(b) The commission may grant a waiver in relation to an | ||
equitable request for service under Section 53A.006 if the electing | ||
provider demonstrates that the requested investment or service | ||
places an undue burden on the universal service fund or the electing | ||
provider. | ||
(c) Before granting a waiver under Subsection (b), the | ||
commission must consider the public benefits that would result from | ||
the investment or service, the willingness and ability of the | ||
requestor to pay a reasonable aid to construction charge, and the | ||
allowance of additional universal service fund support to allow | ||
timely completion of the request. | ||
(d) The commission shall review a waiver granted under | ||
Subsection (a) or (b) at least once every three years if the | ||
corresponding requirement or the corresponding equitable request | ||
for service remains pending. The commission may not extend a waiver | ||
until the commission reviews the factors listed in Subsection (c), | ||
the technical ability of the provider to meet the waived | ||
requirement, and the effect of extending the waiver on the | ||
universal service fund. | ||
Sec. 53A.009. PLAN. (a) An electing provider shall develop | ||
and implement a five-year infrastructure investment plan to | ||
maintain and upgrade existing network facilities to ensure | ||
connectivity capable of meeting the standards prescribed by this | ||
chapter. | ||
(b) The plan must include a description of the proposed | ||
improvements or upgrades to the electing provider's network | ||
throughout its service area that will help the provider meet | ||
infrastructure commitments and customer needs. | ||
(c) An electing provider who is subject to a requirement | ||
under federal law to file a five-year plan is not required to create | ||
an additional plan under this section. | ||
Sec. 53A.010. PROGRESS AND ACCOUNTABILITY REPORT. (a) An | ||
electing provider shall file annually with the commission a report | ||
on the provider's progress toward fulfilling the provider's | ||
infrastructure commitment. | ||
(b) The report must include: | ||
(1) the plan described by Section 53A.009 or the | ||
provider's federally prescribed five-year plan; | ||
(2) a description of the provider's progress on | ||
implementing the plan, how the provider is using universal service | ||
support funds to improve service quality, coverage, or capacity, | ||
and an explanation detailing why improvements or targets for the | ||
previous calendar year have not been met, including adjustments for | ||
evolving standards; | ||
(3) a summary of financial data for the previous | ||
calendar year that includes total company data, including: | ||
(A) plant-specific operations expenses; | ||
(B) plant non-specific operations expenses; | ||
(C) customer operations expenses; | ||
(D) corporate operations expenses; | ||
(E) depreciation and amortization expenses; | ||
(F) other operating expenses; | ||
(G) total telecom plant in service; | ||
(H) total property held for future use; and | ||
(I) total telecom plant under construction; and | ||
(4) average network capacity and speed capabilities | ||
available to customers. | ||
(c) A report filed under this section is confidential and | ||
not subject to disclosure under Chapter 552, Government Code. | ||
(d) The commission shall monitor the progress of each | ||
electing provider through the reports submitted under this section. | ||
Sec. 53A.011. UNIVERSAL SERVICE FUND RECOVERY. (a) An | ||
electing provider is eligible to receive support from the universal | ||
service fund as provided by this chapter and Section 56.034. | ||
(b) This chapter does not affect the eligibility of an | ||
electing provider to receive support under Section 56.025. | ||
SECTION 2. Section 56.021, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The | ||
commission shall adopt and enforce rules requiring local exchange | ||
companies to establish a universal service fund to: | ||
(1) assist telecommunications providers in providing | ||
basic local telecommunications service at reasonable rates in high | ||
cost rural areas under two plans: | ||
(A) the Texas High Cost Universal Service Plan | ||
(16 T.A.C. Section 26.403); and | ||
(B) the Small and Rural Incumbent Local Exchange | ||
Company Universal Service Plan (16 T.A.C. Section 26.404); | ||
(2) reimburse the telecommunications carrier that | ||
provides the statewide telecommunications relay access service | ||
under Subchapter D; | ||
(3) finance the specialized telecommunications | ||
assistance program established under Subchapter E; | ||
(4) reimburse the department and the commission for | ||
costs incurred in implementing this chapter and Chapter 57; | ||
(5) reimburse a telecommunications carrier providing | ||
lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as | ||
amended; | ||
(6) finance the implementation and administration of | ||
an integrated eligibility process created under Section 17.007 for | ||
customer service discounts relating to telecommunications | ||
services, including outreach expenses the commission determines | ||
are reasonable and necessary; | ||
(7) reimburse a designated provider under Subchapter | ||
F; | ||
(8) reimburse a successor utility under Subchapter G; | ||
[ |
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(9) finance the program established under Subchapter | ||
H; and | ||
(10) assist telecommunications providers that are | ||
small and rural local exchange companies in providing basic local | ||
and advanced telecommunications services in high cost rural areas | ||
through fulfilling infrastructure commitments under Chapter 53A, | ||
as provided by Section 56.034. | ||
SECTION 3. Subchapter B, Chapter 56, Utilities Code, is | ||
amended by adding Section 56.034 to read as follows: | ||
Sec. 56.034. SUPPORT FOR RURAL ADVANCED PLAN FOR | ||
INFRASTRUCTURE DEPLOYMENT. (a) Support for the Rural Advanced Plan | ||
for Infrastructure Deployment is available to telecommunications | ||
providers who are electing providers under Chapter 53A. | ||
(b) Not later than January 1, 2017, the commission shall | ||
implement a mechanism for electing providers to transition support | ||
from the Small and Rural Incumbent Local Exchange Company Universal | ||
Service Plan to the Rural Advanced Plan for Infrastructure | ||
Deployment. Until the mechanism is in place, an electing | ||
provider's support level may not be decreased from the level the | ||
provider receives on the date the commission receives notice under | ||
Section 53A.004 of the provider's election. | ||
(c) When a provider notifies the commission that it elects | ||
to be subject to Chapter 53A, the provider shall request that the | ||
commission determine and disburse support to the provider under | ||
Subsection (d)(1) or (d)(2). | ||
(d) An electing provider may request that the commission | ||
disburse funds to the provider in fixed monthly amounts based on: | ||
(1) the company's annualized amount of recovery from | ||
the universal service fund for the fiscal year ending on August 31, | ||
2017, but only if the commission receives notice under Section | ||
53A.004 of the provider's election on or before September 1, 2017; | ||
or | ||
(2) an annualized support amount determined to be | ||
sufficient, based on the Federal Communications Commission cost | ||
study and independently audited financials of the provider for the | ||
most recently ended fiscal year and when considered with other | ||
revenues, to permit the company the opportunity to earn a | ||
reasonable return in accordance with Section 53.051. | ||
(e) The commission shall determine the initial support | ||
level not later than the 60th day after the date the commission | ||
receives the notice under Section 53A.004. | ||
(f) An electing provider who requests to have the provider's | ||
initial support level determined and disbursed under Subsection | ||
(d)(1) may, not earlier than the first anniversary of the date of | ||
the determination of initial support level, make a one-time request | ||
to have the provider's fixed monthly support determined and | ||
disbursed under Subsection (d)(2). Not later than the 60th day | ||
after the date the commission receives a request under this | ||
subsection, the commission shall recalculate the amount of the | ||
electing provider's support as provided by Subsection (d)(2) and | ||
the electing provider is considered to have made a request under | ||
Subsection (d)(2) for the purposes of all future adjustments. This | ||
subsection does not limit a provider's ability to make a request | ||
under Subsection (g). | ||
(g) Not earlier than the first anniversary of the date of | ||
the determination of an initial support level the electing provider | ||
will receive under Subsection (d), or after an election under | ||
Subsection (f), the commission may, only for good cause and on its | ||
own motion, or shall, on the written request of the provider, | ||
initiate a proceeding to recalculate the annual support amount to | ||
be used as the basis for the fixed monthly support amounts. The | ||
commission shall base the recalculation under this subsection on an | ||
annualized support amount determined to be sufficient, when | ||
considered with other revenues, to permit the company the | ||
opportunity to earn a reasonable return in accordance with Section | ||
53.051. Except for good cause, the commission may not initiate a | ||
proceeding to adjust a provider's support under this subsection | ||
more frequently than once every three years. | ||
(h) The commission shall adjust support disbursed under | ||
Subsection (d)(2) automatically every three years using the | ||
calculation prescribed by Subsection (d)(2). An adjustment | ||
proceeding under this subsection must be completed in not more than | ||
60 days. | ||
SECTION 4. This Act takes effect September 1, 2015. |