SB 586

85(R) - 2017
Senate Business & Commerce
House State Affairs
Senate Business & Commerce
House State Affairs

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


Charles Perry


Dawn Buckingham
Craig Estes
Bryan Hughes
Lois Kolkhorst
Eddie Lucio Jr.
Robert Nichols
Charles Schwertner
Carlos Uresti


Charlie Geren

Bill Caption

Relating to the distribution of universal service funds to certain small and rural incumbent local exchange companies.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

Under current law, the Small and Rural Incumbent Local Exchange Company Universal Service Plan exists to assist utilities in providing basic telecommunications services at a reasonable rate. This service plan is set to expire in September, 2017. SB 586 would make this service plan extend until 2023 and put in place new rules and procedures for disbursing the assistance funds specifically to small providers. This bill would also require the Public Utility Commission to review these provisions in 2022 and make recommendations to the legislature in order to ensure these provisions accomplish their intent.

Vote Recommendation Notes

This bill would infringe on the principles of limited government and the free market by perpetuating the state intervention and market distortions in the telecommunications utilities sector caused by this assistance fund. For this reason, we oppose SB 586.

Organizations Supporting

Texas Farm Bureau
Texas Statewide Telephone Cooperative Inc.

Organizations Opposed

Texas Cable Association
Texas Public Policy Foundation