Bill > HB998

This bill allows certain smaller local phone companies, specifically "Tier 2 local exchange companies" that are not part of larger national providers, to choose to be regulated under a "rate of return" system, which means their profits are limited based on their investment. This option is available until August 1, 2026, and these companies cannot switch back to a different regulatory system until August 1, 2031. The bill also makes changes to the "Universal Access Fund," which helps provide phone service in underserved areas, by extending the time certain distributions can be made until December 31, 2040, requiring more financial information from companies seeking reimbursement, and capping total annual distributions from the fund at $50 million for costs incurred after July 1, 2026. Additionally, the bill mandates annual reports on the Universal Access Fund's financial status and operations, to be provided to state leaders starting December 31, 2026.