Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012 Page: 6,874
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TITLE 16. ECONOMIC REGULATION
PART 2. PUBLIC UTILITY
COMMISSION OF TEXAS
CHAPTER 26. SUBSTANTIVE RULES
APPLICABLE TO TELECOMMUNICATIONS
SUBCHAPTER P. TEXAS UNIVERSAL
16 TAC 26.418
The Public Utility Commission of Texas (commission) proposes
an amendment to 26.418, relating to Designation of Common
Carriers as Eligible Telecommunications Carriers to Receive
Federal Universal Service Funds. The proposed amendment
will exclude commercial mobile radio service (CMRS) resellers
from eligibility for designation by the commission as an eligible
telecommunications carrier (ETC). Instead, a CMRS reseller
will be able to seek designation as an ETC by the Federal
Communications Commission (FCC). Project Number 40561 is
assigned to this proceeding.
Liz Kayser, Market Economist, Competitive Markets Division,
has determined that for each year of the first five-year period
the proposed amendment is in effect, there will be no fiscal im-
plications for state or local government as a result of enforcing
or administering the amendment.
Ms. Kayser has determined that for each year of the first five
years the proposed amendment is in effect, the public benefit
anticipated as a result of enforcing the amendment will be more
efficient ETC designation and oversight of CMRS resellers. The
FCC requires a CMRS reseller to submit compliance plans to the
FCC for approval before filing an application for ETC designa-
tion with a state commission. In addition, apart from interactions
related to ETC designation, CMRS resellers have little interac-
tion with the commission. As a result, it will be more efficient
for a CMRS reseller to be designated by the FCC as an ETC
rather than by the commission. There will be no adverse eco-
nomic effect on small businesses or micro-businesses as a result
of enforcing this amendment. Therefore, no regulatory flexibil-
ity analysis is required. There is no anticipated economic cost
to persons who are required to comply with the amendment as
Ms. Kayser has also determined that for each year of the first
five years the proposed amendment is in effect, there should be
no effect on local economy, and therefore no local employment
impact statement is required under Administrative Procedure Act
(APA), Texas Government Code 2001.022.
The commission staff will conduct a public hearing on Monday,
September 24, 2012, if requested pursuant to the Administrative
Procedure Act (APA), Texas Government Code 2001.029, at
the commission's offices located in the William B. Travis Build-
ing, 1701 North Congress Avenue, Austin, Texas 78701. The re-
quest for public hearing must be received by Thursday, Septem-
ber 20, 2012.
Comments on the proposed amendment may be submitted to
the Filing Clerk, Public Utility Commission of Texas, 1701 North
Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326.
Sixteen copies of comments to the proposed amendment are re-
quired to be filed pursuant to 22.71(c) of this title. Comments
should be organized in a manner consistent with the organiza-
tion of the amended rule. All comments should refer to Project
Number 40561. Initial comments are due by Thursday, Septem-
ber 20, 2012 and reply comments are due by Monday, October
The amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated 14.002 (West 2007 and
Supp. 2011) (PURA), which provides the Public Utility Com-
mission with the authority to make and enforce rules reason-
ably required in the exercise of its powers and jurisdiction; and
specifically, PURA 51.001, which provides that it is the policy of
this state to promote diversity of telecommunications providers
and interconnectivity; encourage a fully competitive telecommu-
nications marketplace; and maintain a wide availability of high
quality, interoperable, standards-based telecommunications ser-
vices at affordable rates.
Cross Reference to Statutes: PURA 14.002 and 51.001.
26.418. Designation of Common Carriers as Eligible Telecommu-
nications Carriers to Receive Federal Universal Service Funds.
(a) Purpose. This section provides the requirements for the
commission to designate common carriers as eligible telecommunica-
tions carriers (ETCs) to receive support from the federal universal ser-
vice fund (FUSF) pursuant to 47 United States Code (U.S.C.) 214(e)
(relating to Provision of Universal Service). [Only common earri-
er- designated by the commission pursuant to 47 United States Code
(US GC) 21A4(e )(reXating to Prosion of ivrsal Serv-ice) as eligi-
ble for federal universal service suppo1f may qualify to reci V univer-
sal service suppo under the FUSF] In addition, this section provides
guidelines for rural and non-rural carriers to meet the federal require-
ments of annual certification for FUSF support criteria and, if requested
or ordered, for the disaggregation of rural carriers' FUSF support.
(b) Applicability. This section applies to a common carrier
seeking designation as an ETC, except for commercial mobile radio
service (CMRS) resellers. A CMRS reseller may not seek designation
from the commission, but instead may seek designation as an ETC by
the Federal Communications Commission (FCC). This section also ap-
plies to a common carrier that has been designated by the commission
as an ETC, including a CMRS reseller.
(c) [(b)] Service areas. The commission may designate ETC
service areas according to the following criteria.
(1) Non-rural service area. To be eligible to receive federal
universal service support in non-rural areas, a carrier must provide fed-
erally supported services pursuant to 47 Code of Federal Regulations
(C.F.R.) 54.101 (relating to Supported Services for Rural, Insular, and
High Cost Areas) throughout the area for which the carrier seeks to be
designated an ETC.
(2) Rural service area. In the case of areas served by a ru-
ral telephone company, as defined in 26.404 of this title (relating to
Small and Rural Incumbent Local Exchange Company (ILEC) Univer-
sal Service Plan), a carrier must provide federally supported services
pursuant to 47 C.F.R. 54.101 throughout the study area of the rural
telephone company in order to be eligible to receive federal universal
(d) [(-)] Criteria for determination of ETCs. A common car-
rier shall be designated as eligible to receive federal universal service
support if it:
(1) offers the services that are supported by the federal uni-
versal service support mechanisms under 47 C.F.R. 54.101 either us-
37 TexReg 6874 August 31, 2012 Texas Register
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Texas. Secretary of State. Texas Register, Volume 37, Number 35, Pages 6819-7008, August 31, 2012, periodical, August 31, 2012; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth253227/m1/56/: accessed June 27, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.