HB 3713

relating of maintenance of rates and expansion of funds for certain
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter A, Chapter 56, Utilities Code, is
Sec. 56.025 MAINTENANCE OF RATES AND EXPANSION OF FUND FOR
CERTAIN COMPANIES.  (a)  In addition to the authority provided by
(1)  for each local exchange company that serves fewer
than 31,000 access lines and each cooperative, the commission may
adopt a mechanism necessary to maintain reasonable rates for local
exchange telephone service; and
(2)  for each local exchange and each cooperative that
serves 31,000 or fewer access lines and that on June 1, 2013, is not
an electing company under Chapter 58 or 59, the commission shall
adopt rules to expand the universal service fund in the
circumstances prescribed by this section.
(b)  The commission shall implement a mechanism through the
universal service fund to replace the reasonably projected
reduction in high cost assistance revenue caused by a commission
order, rule, or policy. This subsection does not apply to an order
entered in a proceeding related to an individual company’s revenue
[(c)  The commission shall implement a mechanism to replace
the reasonably projected change in revenue caused by a Federal
Communications Commission order, rule, or policy that changes:
(1)  the federal universal service fund revenue of a
(2)  costs or revenue assigned to the intrastate
(c) [(d)]  The commission shall implement a mechanism to
replace the reasonably projected reduction in contribution caused
by a change of commission policy regarding intraLATA “1-plus”
dialing access. In this subsection, “contribution” means the
average intraLATA long distance message telecommunications service
revenue per minute, including intraLATA toll pooling and associated
impacts, less the average message telecommunications service cost
per minute less the average contribution from switched access
multiplied by the projected change in intraLATA “1-plus”minutes.
(d) [(e)]  The commission shall implement a mechanism to
replace the reasonably projected increase in costs or decrease in
revenue of the intrastate jurisdiction caused by another
governmental agency’s order, rule, or policy.
(e) [(f)]  A mechanism implemented under Subsection (c),
(1)  an increase in rates, if the increase would not
adversely affect universal service; or
(2)  the universal service fund.
(f) [(g)]  Not withstanding any other provision of this
section, after December 31, 2013, the commission may not distribute
support granted under this section, including any support granted
before that date, to a local exchange company or cooperative that
serves greater than 31,000 access lines or that is an electing
company under Chapter 58 or 59 on June 1, 2013.
SECTION 2.  This Act takes effect September 1, 2025.