FY 2016 Appropriation

The fund is intended to subsidize eligible rural telephone exchange customers whose costs are much higher to operate than the state-wide average for providing local exchange and switched access service. The Fund also supports Lifeline Telecommunication Support funding to subsidize low income customers.

According to serving companies' data and statistics obtained by the Federal Communications Commission, the telephone subscription rate in rural Utah remains nearly equal to the Wasatch Front.

Funding History
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $13,000,000 from all sources for Universal Telecommunications Support Fund. This is an 18.2 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

Operations, customer service, and funding are the three main performance measures identified by the Commission for this program.

Operations

The operation of the fund shall be nondiscriminatory and competitively and technologically neutral in the collection and distribution of funds, neither providing a competitive advantage for, nor imposing a competitive disadvantage upon, any telecommunications provider operating in the state.

Universal Service Fund disbursements are available to certificated carriers that meet the programs guidelines. These can be found in the Commission's Administrative Rules: R746-360. The Commission follows all applicable federal laws, state statutes and administrative rules as it administers this fund.

Customer Service

This goal is to respond to questions and concerns in a timely fashion. The state universal service fund is used for on-going high cost support and one-time grants to help provide service to unserved or under-served areas of the state. When the Commission receives a request from a customer (usually in concert with the customer's carrier) for a one-time distribution from the fund, the Commission opens a docket and sets a schedule to resolve the request.

Funding

This goal is to ensure the program provides specific, predictable, and sufficient funds in addition to those provided under the federal universal service fund. In accordance with UCA 54-8B-15 (10) (a) (ii) the Commission levies a surcharge on all intrastate telecommunications services provided by carriers in the state. The Commission receives monthly reports that track revenues and expenses of the fund and provide the current balance of the fund. The Commission can increase or decrease the fund depending on current and future needs.

Statute

Public Service Commission under UCA 54-8b-10 administers the Universal Public Telecommunications Service Support Fund to promote equitable cost recovery of basic telephone service and ensuring that customers have access to affordable basic telephone service.

Intent Language

HB0003: Item 139

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided to the Public Service Commission in Item 35, Chapter 10, Laws of Utah 2014 not lapse at the close of Fiscal Year 2015. The Universal Telecommunications Support Fund is set in statute under section 54-8b-15.


The funding mechanism for the Universal Public Telecommunications Service Support Fund account is a one percent surcharge on intra-state telecommunications retail revenue that has been effective since September 1, 2011.

Display By:
Appropriation Type:
Appropriation History by
Show Table   |   Show Additional Information

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.