CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE AND UNIVERSAL SERVICE FUND - Texas Statutes

UTILITIES CODE

TITLE 2. PUBLIC UTILITY REGULATORY ACT

SUBTITLE C. TELECOMMUNICATIONS UTILITIES

CHAPTER 56. TELECOMMUNICATIONS ASSISTANCE AND UNIVERSAL SERVICE

FUND

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 56.001. DEFINITIONS. In this chapter:

(1) "Department" means the Texas Department of Human Services.

(2) "Designated provider" means a telecommunications provider

designated by the commission to provide services to an

uncertificated area under Subchapter F.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 651, Sec. 1, eff. Sept. 1,

2001.

Sec. 56.002. CONFLICT OF PROVISIONS. If this chapter conflicts

with another provision of this title, this chapter prevails.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER B. UNIVERSAL SERVICE FUND

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;

(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, the Texas Commission for the Deaf

and Hard of Hearing, 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; and

(9) finance the program established under Subchapter H.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.08(a), eff.

Sept. 1, 1999; Acts 1999, 76th Leg., ch. 835, Sec. 2, eff. Sept.

1, 1999; Acts 1999, 76th Leg., ch. 1212, Sec. 23, eff. Sept. 1,

1999; Acts 1999, 76th Leg., ch. 1553, Sec. 1, eff. Sept. 1, 1999;

Acts 2001, 77th Leg., ch. 651, Sec. 2, eff. Sept. 1, 2001; Acts

2001, 77th Leg., ch. 1451, Sec. 2, eff. Sept. 1, 2001; Acts 2003,

78th Leg., ch. 76, Sec. 5, eff. Sept. 1, 2003; Acts 2003, 78th

Leg., ch. 1276, Sec. 17.001, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 12, eff. September 7, 2005.

Sec. 56.022. UNIFORM CHARGE. (a) The universal service fund is

funded by a statewide uniform charge payable by each

telecommunications provider that has access to the customer base.

(b) A telecommunications provider 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;

(2) assess the charge on pay telephone service; or

(3) subject a telecommunications provider to unreasonable

prejudice or disadvantage.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 2001, 77th Leg., ch. 404, Sec. 1, eff. Sept. 1,

2001.

Sec. 56.023. COMMISSION POWERS AND DUTIES. (a) The commission

shall:

(1) in a manner that assures reasonable rates for basic local

telecommunications service, adopt eligibility criteria and review

procedures, including a method for administrative review, the

commission finds necessary to fund the universal service fund and

make distributions from that fund;

(2) determine which telecommunications providers meet the

eligibility criteria;

(3) determine the amount of and approve a procedure for

reimbursement to telecommunications providers of revenue lost in

providing tel-assistance service under Subchapter C;

(4) establish and collect fees from the universal service fund

necessary to recover the costs the department and the commission

incur in administering this chapter and Chapter 57; and

(5) approve procedures for the collection and disbursal of the

revenue of the universal service fund.

(b) The eligibility criteria must require that a

telecommunications provider, in compliance with the commission's

quality of service requirements:

(1) offer service to each consumer within the company's

certificated area and to any permanent residential or business

premises to which the company is designated to provide services

under Subchapter F; and

(2) render continuous and adequate service within the company's

certificated area and to any permanent residential or business

premises to which the company is designated to provide services

under Subchapter F.

(c) A company designated under Subchapter F to provide services

to permanent residential or business premises within an

uncertificated area and that complies with Subsection (b) shall

receive universal service fund distributions to assist the

provider in providing those services. In addition, the commission

shall designate the provider as an eligible telecommunications

carrier under 47 U.S.C. Section 214(e)(2), as amended, for those

permanent residential or business premises.

(d) The commission shall adopt rules for the administration of

the universal service fund and this chapter and may act as

necessary and convenient to administer the fund and this chapter.

(e) A successor utility, as that term is defined by Section

54.301, that is or becomes an eligible telecommunications carrier

under 47 U.S.C. Section 214(e)(2), as amended, is entitled to

receive universal service fund distributions for costs in

accordance with Subchapter G.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 24, eff. Sept. 1,

1999; Acts 2001, 77th Leg., ch. 651, Sec. 3, eff. Sept. 1, 2001;

Acts 2003, 78th Leg., ch. 76, Sec. 6, eff. Sept. 1, 2003.

Sec. 56.024. REPORTS; CONFIDENTIALITY. (a) The commission may

require a telecommunications provider to provide a report or

information necessary to assess contributions and disbursements

to the universal service fund.

(b) A report or information is confidential and not subject to

disclosure under Chapter 552, Government Code.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 24, eff. Sept. 1,

1999.

Sec. 56.025. MAINTENANCE OF RATES AND EXPANSION OF FUND FOR

CERTAIN COMPANIES. (a) In addition to the authority provided by

Section 56.021, for each local exchange company that serves fewer

than 31,000 access lines and each cooperative, the commission:

(1) may adopt a mechanism necessary to maintain reasonable rates

for local exchange telephone service; and

(2) 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 requirements.

(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 local

exchange company; or

(2) costs or revenue assigned to the intrastate jurisdiction.

(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

of use.

(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.

(f) A mechanism implemented under Subsection (c), (d), or (e)

must be through:

(1) an increase in rates, if the increase would not adversely

affect universal service; or

(2) the universal service fund.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 13, eff. September 7, 2005.

Sec. 56.026. UNIVERSAL SERVICE FUND DISBURSEMENTS. (a) A

revenue requirement showing is not required for a disbursement

from the universal service fund under this subchapter.

(b) The commission shall make each disbursement from the

universal service fund promptly and efficiently so that a

telecommunications provider does not experience an unnecessary

cash-flow change as a result of a change in governmental policy.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 25, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 14, eff. September 7, 2005.

Sec. 56.028. UNIVERSAL SERVICE FUND REIMBURSEMENT FOR CERTAIN

INTRALATA SERVICE. On request of an incumbent local exchange

company that is not an electing company under Chapters 58 and 59,

the commission shall provide reimbursement through the universal

service fund for reduced rates for intraLATA interexchange high

capacity (1.544 Mbps) service for entities described in Section

58.253(a). The amount of reimbursement shall be the difference

between the company's tariffed rate for that service as of

January 1, 1998, and the lowest rate offered for that service by

any local exchange company electing incentive regulation under

Chapter 58.

Added by Acts 1999, 76th Leg., ch. 1212, Sec. 26, eff. Sept. 1,

1999.

Sec. 56.030. AFFIDAVITS OF COMPLIANCE. On or before September 1

of each year, a telecommunications provider that receives

disbursements from the universal service fund shall file with the

commission an affidavit certifying that the telecommunications

provider is in compliance with the requirements for receiving

money from the universal service fund and requirements regarding

the use of money from each universal service fund program for

which the telecommunications provider receives disbursements.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 15, eff. September 7, 2005.

Sec. 56.031. ADJUSTMENTS. The commission may revise the monthly

per line support amounts to be made available from the Texas High

Cost Universal Service Plan and from the Small and Rural

Incumbent Local Exchange Company Universal Service Plan at any

time after September 1, 2007, after notice and an opportunity for

hearing. In determining appropriate monthly per line support

amounts, the commission shall consider the adequacy of basic

rates to support universal service.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 15, eff. September 7, 2005.

SUBCHAPTER D. STATEWIDE TELECOMMUNICATIONS RELAY ACCESS SERVICE

Sec. 56.101. PURPOSE. The purpose of this subchapter is to

provide for the uniform and coordinated provision by one

telecommunications carrier of a statewide telecommunications

relay access service for persons with an impairment of hearing or

speech.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 56.102. TELECOMMUNICATIONS RELAY ACCESS SERVICE. (a) The

commission shall adopt and enforce rules establishing a statewide

telecommunications relay access service for the use of a person

with an impairment of hearing or speech.

(b) The commission rules shall provide that the service must:

(1) use specialized communications equipment, such as a

telecommunications device for the deaf, and operator

translations; and

(2) meet the criteria provided by Sections 56.103, 56.104, and

56.105.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 56.103. TELECOMMUNICATIONS RELAY ACCESS SERVICE

REQUIREMENTS. (a) The telecommunications relay access service

shall provide a person with an impairment of hearing or speech

with access to the telecommunications network in this state

equivalent to the access provided other customers.

(b) The service consists of:

(1) switching and transmission of the call;

(2) live or automated verbal and print translations of

communications between a person with an impairment of hearing or

speech who uses a telecommunications device for the deaf or a

similar automated device and a person who does not have such

equipment; and

(3) other service enhancements proposed by the carrier and

approved by the commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 56.104. TELECOMMUNICATIONS RELAY ACCESS SERVICE CHARGES.

(a) For a call made using the telecommunications relay access

service, the person calling or called:

(1) may not be charged for a call that originates and terminates

in the same local calling area; and

(2) shall pay one-half of the total charges established by

contract with the commission for intrastate interexchange calls.

(b) Charges related to providing the service that, under

Subsection (a), are not charged to a person calling or called

shall be funded from the universal service fund, as specified by

the service provider's contract with the commission.

(c) A local exchange company may not impose an interexchange

carrier access charge on a call using the service that originates

and terminates in the same local calling area.

(d) A local exchange company shall provide billing and

collection services for the service at just and reasonable rates.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 56.105. TRIAL SERVICE COSTS AND DESIGN INFORMATION. If the

commission orders a local exchange company to provide for a trial

telecommunications relay access service for persons with an

impairment of hearing or speech, all pertinent costs and design

information from the trial must be made available to the public.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 56.106. TELECOMMUNICATIONS RELAY ACCESS SERVICE

ASSESSMENTS. (a) The commission shall set appropriate

assessments for all telecommunications utilities to fund the

telecommunications relay access service.

(b) In setting an assessment, the commission shall consider:

(1) the aggregate calling pattern of service users; and

(2) any other factor the commission finds appropriate and in the

public interest.

(c) The commission shall:

(1) review the assessments annually; and

(2) adjust the assessments as appropriate.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 56.107. UNIVERSAL SERVICE FUND SURCHARGE. (a) A

telecommunications utility may recover the utility's universal

service fund assessment for the telecommunications relay access

service through a surcharge added to the utility customers'

bills.

(b) The commission shall specify how each telecommunications

utility is to determine the amount of the surcharge.

(c) If a telecommunications utility imposes the surcharge, the

bill shall list the surcharge as the "universal service fund

surcharge."

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 56.108. SELECTION OF TELECOMMUNICATIONS RELAY ACCESS

SERVICE CARRIER. (a) The commission shall select one

telecommunications carrier to provide the statewide

telecommunications relay access service.

(b) The commission shall make a written award of the contract to

the telecommunications carrier whose proposal is the most

advantageous to this state, considering:

(1) price;

(2) the interests of the community of persons with an impairment

of hearing or speech in having access to a high quality and

technologically advanced telecommunications system; and

(3) any other factor listed in the commission's request for

proposals.

(c) The commission shall consider each proposal in a manner that

does not disclose the contents of the proposal to a

telecommunications carrier making a competing proposal.

(d) The commission's evaluation of a telecommunications

carrier's proposal shall include the:

(1) charges for the service;

(2) service enhancements proposed by the carrier;

(3) technological sophistication of the network proposed by the

carrier; and

(4) date proposed for beginning the service.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Sec. 56.1085. SPECIAL FEATURES FOR RELAY ACCESS SERVICE. (a)

The commission may contract for a special feature for the state's

telecommunications relay access service if the commission

determines:

(1) the feature will benefit the communication of persons with

an impairment of hearing or speech;

(2) installation of the feature will be of benefit to the state;

and

(3) the feature will make the relay access service available to

a greater number of users.

(b) If the carrier selected to provide the telecommunications

relay access service under Section 56.108 is unable to provide

the special feature at the best value to the state, the

commission may make a written award of a contract for a carrier

to provide the special feature to the telecommunications carrier

whose proposal is most advantageous to the state, considering:

(1) the factors provided by Section 56.108(b); and

(2) the past performance, demonstrated capability, and

experience of the carrier.

(c) The commission shall consider each proposal in a manner that

does not disclose the contents of the proposal to a

telecommunications carrier making a competing proposal.

(d) The commission's evaluation of a telecommunications

carrier's proposal shall include the considerations provided by

Section 56.108(d).

Added by Acts 1999, 76th Leg., ch. 1553, Sec. 2, eff. Sept. 1,

1999.

Sec. 56.109. COMPENSATION OF CARRIER. (a) The

telecommunications carrier selected to provide the

telecommunications relay access service under Section 56.108 or

the carrier selected to provide a special feature for the

telecommunications relay access service under Section 56.1085

shall be compensated at rates and on terms provided by the

carrier's contract with the commission.

(b) The compensation may include:

(1) a return on the investment required to provide the service;

and

(2) compensation for unbillable or uncollectible calls placed

through the service.

(c) Compensation for unbillable or uncollectible calls is

subject to a reasonable limitation determined by the commission.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 1553, Sec. 3, eff. Sept. 1,

1999.

Sec. 56.110. ADVISORY COMMITTEE. (a) An advisory committee to

assist the commission in administering this subchapter is

composed of the following persons appointed by the commission:

(1) two persons with disabilities that impair the ability to

effectively access the telephone network other than disabilities

described by Subdivisions (2)-(7);

(2) one deaf person recommended by the Texas Deaf Caucus;

(3) one deaf person recommended by the Texas Association of the

Deaf;

(4) one person with a hearing impairment recommended by

Self-Help for the Hard of Hearing;

(5) one person with a hearing impairment recommended by the

American Association of Retired Persons;

(6) one deaf and blind person recommended by the Texas

Deaf/Blind Association;

(7) one person with a speech impairment and one person with a

speech and hearing impairment recommended by the Coalition of

Texans with Disabilities;

(8) two representatives of telecommunications utilities, one

representing a nonlocal exchange utility and one representing a

local exchange company, chosen from a list of candidates provided

by the Texas Telephone Association;

(9) two persons, at least one of whom is deaf, with experience

in providing relay services recommended by the Texas Commission

for the Deaf and Hard of Hearing; and

(10) two public members recommended by organizations

representing consumers of telecommunications services.

(b) Members of the advisory committee serve two-year terms. A

member whose term has expired shall continue to serve until a

qualified replacement is appointed.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.08(b), eff.

Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1553, Sec. 4, eff. Sept.

1, 1999.

Sec. 56.111. ADVISORY COMMITTEE DUTIES. The advisory committee

shall:

(1) monitor the establishment, administration, and promotion of

the statewide telecommunications relay access service;

(2) advise the commission in pursuing a service that meets the

needs of persons with an impairment of hearing or speech in

communicating with other telecommunications services users; and

(3) advise the commission and the Texas Commission for the Deaf

and Hard of Hearing, at the request of either commission,

regarding any issue related to the specialized telecommunications

assistance program established under Subchapter E, including:

(A) devices or services suitable to meet the needs of persons

with disabilities in communicating with other users of

telecommunications services; and

(B) oversight and administration of the program.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.08(c), eff.

Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1553, Sec. 5, eff. Sept.

1, 1999.

Sec. 56.112. ADVISORY COMMITTEE SUPPORT AND COSTS. (a) The

commission shall provide to the advisory committee:

(1) clerical and staff support; and

(2) a secretary to record committee meetings.

(b) The costs associated with the advisory committee shall be

reimbursed from the universal service fund.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.08(d), eff.

Sept. 1, 1999.

Sec. 56.113. ADVISORY COMMITTEE COMPENSATION AND EXPENSES. A

member of the advisory committee serves without compensation but

is entitled to reimbursement at rates established for state

employees for travel and per diem incurred in the performance of

the member's official duties.

Added by Acts 2001, 77th Leg., ch. 1158, Sec. 93, eff. Sept. 1,

2001.

SUBCHAPTER E. SPECIALIZED TELECOMMUNICATIONS ASSISTANCE PROGRAM

Sec. 56.151. SPECIALIZED TELECOMMUNICATIONS ASSISTANCE PROGRAM.

The commission and the Texas Commission for the Deaf and Hard of

Hearing by rule shall establish a specialized telecommunications

assistance program to provide financial assistance to individuals

with disabilities that impair the individuals' ability to

effectively access the telephone network to assist the

individuals with the purchase of basic specialized equipment or

services to provide the individuals with telephone network access

that is functionally equivalent to that enjoyed by individuals

without disabilities. The agencies may adopt joint rules that

identify devices and services eligible for vouchers under the

program.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.08(e), eff. Sept.

1, 1999. Amended by Acts 1999, 76th Leg., ch. 1553, Sec. 7, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 424, Sec. 1, eff. Sept.

1, 2001.

Sec. 56.152. ELIGIBILITY. The Texas Commission for the Deaf and

Hard of Hearing by rule shall prescribe eligibility standards for

individuals, including deaf individuals and individuals who have

an impairment of hearing or speech, to receive an assistance

voucher under the program. To be eligible, an individual must be

a resident of this state with a disability that impairs the

individual's ability to effectively access the telephone network.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.08(e), eff. Sept.

1, 1999. Amended by Acts 1999, 76th Leg., ch. 1553, Sec. 7, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 424, Sec. 2, eff. Sept.

1, 2001.

Sec. 56.153. VOUCHERS. (a) The Texas Commission for the Deaf

and Hard of Hearing shall determine a reasonable price for a

basic specialized telecommunications device that permits, or

basic specialized services that permit, telephone network access

and distribute to each eligible applicant a voucher that

guarantees payment of that amount to a distributor of new

specialized telecommunications devices described by Section

56.151 or to a provider of services described by that section.

The Texas Commission for the Deaf and Hard of Hearing may issue a

voucher for a service only if the service is less expensive than

a device eligible for a voucher under the program to meet the

same need.

(b) A voucher must have the value printed on its face. The

individual exchanging a voucher for the purchase of a specialized

telecommunications device or service is responsible for payment

of the difference between the voucher's value and the price of

the device or service.

(c) The commission and the Texas Commission for the Deaf and

Hard of Hearing by rule shall provide that a distributor of

devices or a provider of services will receive not more than the

full price of the device or service if the recipient of a voucher

exchanges the voucher for a device or service that the

distributor or provider sells for less than the voucher's value.

(d) An individual who has exchanged a voucher for a specialized

telecommunications device is not eligible to receive another

voucher before the fifth anniversary of the date the individual

exchanged the previously issued voucher unless, before that date,

the recipient develops a need for a different type of

telecommunications device or service under the program because

the recipient's disability changes or the recipient acquires

another disability.

(e) Except as provided by rules adopted under this subsection,

an individual is not eligible for a voucher if the Texas

Commission for the Deaf and Hard of Hearing has issued a voucher

for a device or service to another individual with the same type

of disability in the individual's household. The Texas Commission

for the Deaf and Hard of Hearing by rule may provide for

financially independent individuals who reside in a congregate

setting to be eligible for a voucher regardless of whether

another individual living in that setting has received a voucher.

(f) The Texas Commission for the Deaf and Hard of Hearing shall

determine eligibility of each person who files an application for

a voucher and issue each eligible applicant an appropriate

voucher.

(g) The Texas Commission for the Deaf and Hard of Hearing shall

maintain a record regarding each individual who receives a

voucher under the program.

(h) The Texas Commission for the Deaf and Hard of Hearing shall

deposit money collected under the program to the credit of the

universal service fund.

Acts 1999, 76th Leg., ch. 62, Sec. 18.08(e), eff. Sept. 1, 1999.

Amended by Acts 1999, 76th Leg., ch. 1553, Sec. 7, eff. Sept. 1,

1999; Acts 2001, 77th Leg., ch. 424, Sec. 3, eff. Sept. 1, 2001.

Sec. 56.154. COMMISSION DUTIES. (a) Not later than the 45th

day after the date the commission receives a voucher a

telecommunications device distributor presents for payment or a

voucher a telecommunications service provider presents for

payment, the commission shall pay to the distributor or service

provider the lesser of the value of a voucher properly exchanged

for a specialized telecommunications device or service or the

full price of the device or service for which a voucher recipient

exchanges the voucher. The payments must be made from the

universal service fund.

(b) The commission may investigate whether the presentation of a

voucher for payment represents a valid transaction for a

telecommunications device or service under the program. The Texas

Commission for the Deaf and Hard of Hearing shall cooperate with

and assist the commission in an investigation under this

subsection.

(c) Notwithstanding Section 56.153(a), the commission may:

(1) delay payment of a voucher to a distributor of devices or a

service provider if there is a dispute regarding the amount or

propriety of the payment or whether the device or service is

appropriate or adequate to meet the needs of the person to whom

the Texas Commission for the Deaf and Hard of Hearing issued the

voucher until the dispute is resolved;

(2) provide that payment of the voucher is conditioned on the

return of the payment if the device is returned to the

distributor or if the service is not used by the person to whom

the voucher was issued; and

(3) provide an alternative dispute resolution process for

resolving a dispute regarding a subject described by Subdivision

(1) or (2).

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.08(e), eff. Sept.

1, 1999. Amended by Acts 1999, 76th Leg., ch. 1553, Sec. 7, eff.

Sept. 1, 1999.

Sec. 56.155. RECOVERY OF SPECIALIZED TELECOMMUNICATIONS DEVICE

ASSISTANCE PROGRAM SURCHARGE. (a) The commission shall allow a

telecommunications utility to recover the universal service fund

assessment related to the specialized telecommunications

assistance program through a surcharge added to the utility's

customers' bills.

(b) The commission shall specify how each utility must determine

the amount of the surcharge and by rule shall prohibit a utility

from recovering an aggregation of more than 12 months of

assessments in a single surcharge. The rules must require a

utility to apply for approval of a surcharge before the 91st day

after the date the period during which the aggregated surcharges

were assessed closes.

(c) If a utility chooses to impose the surcharge, the utility

shall include the surcharge in the "universal service fund

surcharge" listing as provided by Section 56.107.

Added by Acts 1999, 76th Leg., ch. 62, Sec. 18.08(e), eff. Sept.

1, 1999. Amended by Acts 1999, 76th Leg., ch. 1553, Sec. 8, eff.

Sept. 1, 1999.

Sec. 56.156. PROMOTION OF PROGRAM. The Texas Commission for the

Deaf and Hard of Hearing may promote the program established

under this subchapter by means of participation in events,

advertisements, pamphlets, brochures, forms, pins, or other

promotional items or efforts that provide contact information for

persons interested in applying for a voucher under the program.

Added by Acts 2001, 77th Leg., ch. 424, Sec. 4, eff. Sept. 1,

2001.

SUBCHAPTER F. SERVICE TO UNCERTIFICATED AREA

Sec. 56.201. DEFINITION. In this subchapter, "permanent

residential or business premises" means a premises that has

permanent facilities for water, wastewater, and electricity.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.202. DESIGNATION OF PROVIDER. (a) Notwithstanding

Section 54.001, the commission may designate a telecommunications

provider under this section to provide voice-grade services to

permanent residential or business premises that are not included

within the certificated area of a holder of a certificate of

convenience and necessity.

(b) The commission may designate a provider only if the provider

is otherwise eligible to receive universal service funds under

Section 56.023(b).

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.203. PETITION FOR SERVICE. Persons residing in

permanent residential premises or owners of permanent residential

or business premises that are not included within the

certificated area of a holder of a certificate of convenience and

necessity may petition the commission to designate a

telecommunications provider to provide to those premises

voice-grade services supported by state and federal universal

service support mechanisms.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.204. CONTENTS OF PETITION. (a) A petition for

designation of a service provider must:

(1) state with reasonable particularity the locations of the

permanent residential or business premises for which the

petitioners are requesting service;

(2) establish that those locations are within reasonable

proximity to one another so that the petitioners possess a

sufficient community of interest to warrant the designation of a

provider and the expenditure of universal service funds necessary

to establish service;

(3) except as provided by Subsection (b), be signed by at least

five persons who:

(A) are not members of the same household;

(B) reside in the permanent residential premises or are the

owners of the permanent residential or business premises for

which service is sought and that are not located within a

certificated area;

(C) want service to those premises; and

(D) commit to pay the aid to construction charges for service to

those premises as determined by the commission;

(4) nominate as potential providers of service not more than

five telecommunications providers serving territory that is

contiguous to the location of the permanent residential or

business premises using wireless or wireline facilities, resale,

or unbundled network elements; and

(5) include as an attachment or an appendix documentation

indicating the required residence or ownership, including a

state-issued license or identification, tax records, deeds, or

voter registration materials.

(b) The commission may accept a petition that is signed by fewer

than five persons if a petitioner provides an affidavit stating

that the petitioners have taken all reasonable steps to secure

the signatures of the residents of permanent residential premises

or the owners of permanent residential or business premises

within reasonably close proximity to the petitioning premises who

are not receiving telephone service when the petition is filed

and who want telephone service initiated.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.205. HEARING. If the commission finds that the petition

complies with Section 56.204, the commission shall hold an

evidentiary hearing to determine if a telecommunications provider

is willing to be designated to provide service to those premises

or, if a provider is not willing to be designated, to determine

the telecommunications provider that is best able to serve those

premises under the criteria prescribed by this subchapter.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.206. DENIAL OF PETITION. The commission shall deny a

petition if the commission determines that services cannot be

extended to the petitioning premises at a reasonable cost. In

making that determination, the commission shall consider all

relevant factors, including:

(1) the original cost to be incurred by a designated provider to

deploy service to the petitioning premises, and the effect of

reimbursement of those costs on the state universal service fund;

(2) the number of access lines requested by the petitioners for

the petitioning premises;

(3) the size of the geographic territory in which the

petitioning premises are included;

(4) the proximity of existing facilities and the existence of a

preferred designated provider under Section 56.213; and

(5) any technical barriers to the provision of service.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.207. ORDER. In any order granting a petition, the

commission shall:

(1) approve the facilities to be deployed based on the estimated

costs of deployment submitted in accordance with Section

56.208(a);

(2) approve the amount of original cost of deployment to be

recovered from the state universal service fund and the terms of

original cost recovery under Section 56.209; and

(3) approve the recurring cost recovery under Section 56.209,

including the monthly rate for services and the monthly per line

fee to be recovered from the state universal service fund under

that section.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.208. DESIGNATION OF PROVIDER. (a) In determining which

nominated telecommunications provider the commission will

designate to provide service to the petitioning premises, the

commission shall consider the relative estimated cost to be

incurred by contiguous providers to serve the petitioning

premises and give preference to the provider having the least

cost technology that meets the quality of service standards

prescribed by the commission applicable to that provider.

(b) The commission may not designate a telecommunications

provider to serve the petitioning premises unless the premises

are located in an area that is contiguous to an area in which the

telecommunications provider has previously been designated

eligible to receive universal service funding under Section

56.023(b). This subsection does not apply if the commission

designates the provider after the provider voluntarily agrees to

provide service to the petitioning premises.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.209. RECOVERY OF COSTS. (a) If, after a hearing, the

commission designates a telecommunications provider to serve the

petitioning premises, the commission shall permit the designated

provider to recover from the state universal service fund the

provider's actual costs of providing service to the premises,

including the provider's original cost of deployment and actual

recurring costs.

(b) The reimbursable original cost of deploying facilities to

the petitioning premises is the original cost of the

telecommunications provider's facilities installed in, or

upgraded to permit the provision of service to, the petitioning

premises as determined by the financial accounting standards

applicable to the provider, including an amount for the recovery

of all costs that are typically included as capital costs for

accounting purposes, that are not recovered through an aid to

construction charge assessed to the petitioners. The final order

permitting or requiring the designated provider to provide

service to the petitioning premises shall ensure that all the

original cost of the provider shall be amortized and recovered

from the state universal service fund, together with interest at

the prevailing commercial lending rate:

(1) not later than the third anniversary of the date of the

order, for a deployment with an original cost of $1 million or

less;

(2) not later than the fifth anniversary of the date of the

order, for a deployment with an original cost of more than $1

million, but not more than $2 million; and

(3) not later than the seventh anniversary of the date of the

order, for a deployment with an original cost of more than $2

million.

(c) The designated provider shall recover the provider's actual

recurring costs of service, including maintenance and the ongoing

operational costs of providing service after deployment of the

facilities to the petitioning premises and a reasonable operating

margin, from:

(1) the monthly rate charged the customer; and

(2) a monthly per line state universal service fund payment in

an amount equal to the unrecovered recurring costs incurred in

providing service divided by the access lines served in the

petitioning premises.

(d) The monthly per line fee established under Subsection (c) is

in addition to the universal service funds associated with the

recovery of the original cost of deployment and interest

authorized by Subsection (b) and in addition to the universal

service funds the designated provider receives to provide service

in other areas of this state.

(e) The commission may not authorize or require any services to

be provided to petitioning premises under this subchapter during

a fiscal year if the total amount of required reimbursements of

actual original cost of deployment to all approved petitioning

premises under this section, together with interest, including

obligations for reimbursements from preceding years, would equal

an amount that exceeds 0.02 percent of the annual gross revenues

reported to the state universal service fund during the preceding

fiscal year.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.210. AID TO CONSTRUCTION CHARGE; CONTRACT FOR SERVICES.

The commission shall establish a reasonable aid to construction

charge, not to exceed $3,000, to be assessed each petitioner. The

commission may not require a designated provider to begin

construction until:

(1) each petitioner has paid or executed an agreement acceptable

to the provider to pay the aid to construction charge; and

(2) each petitioner has executed an assignable agreement for

subscription to basic local service to the petitioning premises

from the designated provider for a period at least equal to the

period during which the provider will receive reimbursement for

the original cost of deployment under Section 56.209(b).

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.211. PERMANENT PREMISES REQUIRED. A telecommunications

provider may not under any circumstances be required to extend

service to a location that is not a permanent residential or

business premises or be required to provide service to the

petitioning premises before the 180th day after the date the

provider was designated to provide service to the petitioning

premises.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.212. SUBSEQUENT RELATED PETITIONS. (a) If the

commission approves a petition requesting service, residents of

permanent residential premises or owners of permanent residential

or business premises in reasonable proximity to the premises that

were the subject of an approved petition who did not sign the

prior petition requesting service are not entitled to receive

service under this subchapter until the fifth anniversary of the

date the prior petition was filed unless the residents or owners

file a new petition under this subchapter and agree to pay aid to

construction charges on the same terms as applicable to the prior

petitioners.

(b) The designated provider shall receive reimbursement for the

original cost of deployment and actual recurring costs of

providing service to those additional residents in the same

manner as the provider received reimbursement of those costs in

relation to the prior petitioners. The provider may not receive

reimbursement for the original cost of deployment under a

subsequent petition if the provider previously received complete

reimbursement for those costs from the state universal service

fund. If the state universal service fund has completely

reimbursed the original cost of deployment as provided by this

subchapter, each subsequent petitioner must pay into the state

universal service fund an amount equal to the aid to construction

charge paid by each prior petitioner.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.213. PREFERRED PROVIDER. (a) A provider who is

designated to serve petitioning premises located within an

uncertificated area under this subchapter is the preferred

provider for any permanent residential or business premises in

reasonable proximity to those petitioning premises for later

petitions filed under Section 56.212.

(b) A preferred designated provider is entitled to an

opportunity for a hearing under Section 56.205 on a petition

filed under Section 56.203.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

Sec. 56.214. CERTIFICATE NOT AMENDED. The designation of a

provider to serve permanent residential or business premises

within an uncertificated area under this subchapter does not have

the effect of:

(1) amending the boundaries of the provider's certificate to

provide local exchange service; or

(2) imposing carrier of last resort responsibilities on the

provider.

Added by Acts 2001, 77th Leg., ch. 651, Sec. 4, eff. Sept. 1,

2001.

SUBCHAPTER G. FUNDING FOR CERTAIN TELECOMMUNICATIONS UTILITIES

Sec. 56.251. DEFINITION. In this subchapter, "successor

utility" has the meaning assigned by Section 54.301.

Added by Acts 2003, 78th Leg., ch. 76, Sec. 7, eff. Sept. 1,

2003.

Sec. 56.252. TELECOMMUNICATIONS UTILITIES ELIGIBLE TO RECEIVE

FUNDING UNDER THIS SUBCHAPTER. A telecommunications utility may

receive funding under this subchapter only if:

(1) the telecommunications utility is eligible to receive

universal service funding under Section 56.023(b); and

(2) the telecommunications utility is designated as a successor

utility under Section 54.303.

Added by Acts 2003, 78th Leg., ch. 76, Sec. 7, eff. Sept. 1,

2003.

Sec. 56.253. DETERMINATION OF SUCCESSOR UTILITY'S COSTS TO BE

RECOVERED. (a) At the time the commission designates the

successor utility under Section 54.303, the commission shall

determine the extent to which the utility should recover the

costs the utility will incur in accepting and establishing

service to the affected service area.

(b) In making the determination under Subsection (a), the

commission shall consider relevant information, including the

costs of acquiring and restoring or upgrading the utility's

facilities in the geographic area as necessary to make those

facilities compatible with the facilities in the utility's other

certificated service areas and to comply with commission quality

of service standards.

Added by Acts 2003, 78th Leg., ch. 76, Sec. 7, eff. Sept. 1,

2003.

Sec. 56.254. RECOVERY OF COSTS. The commission order

designating the successor utility under Section 54.303 shall

authorize the utility to recover the costs determined under

Section 56.253. The costs may be amortized and recovered from the

state universal service fund, together with interest at the

prevailing commercial lending rate:

(1) not later than the first anniversary of the date of the

order if the costs are not more than $1 million;

(2) not later than the second anniversary of the date of the

order if the costs are more than $1 million but no more than $2

million; and

(3) not later than the third anniversary of the date of the

order if the costs are more than $2 million.

Added by Acts 2003, 78th Leg., ch. 76, Sec. 7, eff. Sept. 1,

2003.

SUBCHAPTER H. AUDIO NEWSPAPER PROGRAM

Sec. 56.301. AUDIO NEWSPAPER ASSISTANCE PROGRAM. The commission

by rule shall establish a program to provide from the universal

service fund financial assistance for a free telephone service

for blind and visually impaired persons that offers the text of

newspapers using synthetic speech. The commission may adopt

rules to implement the program.

Added by Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 17, eff. September 7, 2005.