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 were not electing companies as of June 1, 2013. The bill also introduces provisions for replacing projected reductions in high-cost assistance revenue and contributions due to changes in commission policy regarding intraLATA dialing access.

The legislation includes several deletions and insertions to clarify the commission's responsibilities. Notably, it removes previous language regarding the replacement of revenue changes caused by Federal Communications Commission orders and refines the mechanisms for addressing revenue impacts from other governmental policies. The bill stipulates that any mechanisms implemented must either involve rate increases that do not adversely affect universal service or utilize the universal service fund. Furthermore, it establishes that after December 31, 2013, support cannot be distributed to companies serving more than 31,000 access lines or those classified as electing companies as of June 1, 2013. The act is set to take effect on September 1, 2025.

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