H.B. No. 3713 amends the Utilities Code to enhance the maintenance of rates and the expansion of funds for certain local exchange companies and cooperatives. The bill allows the commission to adopt mechanisms to maintain reasonable rates for local exchange telephone services for companies serving fewer than 31,000 access lines. Additionally, it mandates the commission to expand the universal service fund for those companies that are not electing companies under Chapters 58 or 59 as of June 1, 2013. The bill also introduces provisions to replace projected reductions in high-cost assistance revenue and contributions due to changes in commission policy regarding intraLATA dialing access.

The bill deletes previous language that addressed the replacement of revenue changes caused by federal orders and policies, while inserting new provisions that focus on the impact of commission policy changes on intraLATA long-distance service revenue. Furthermore, it stipulates that any mechanisms implemented must either involve an increase in rates, provided it does not adversely affect universal service, or utilize the universal service fund. Importantly, after December 31, 2013, the commission is prohibited from distributing support to any local exchange company or cooperative serving more than 31,000 access lines or classified as an electing company as of June 1, 2013. The act is set to take effect on September 1, 2025.

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House Committee Report: ()