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H.B. 71 Enrolled

    

TELECOMMUNICATIONS - UNIVERSAL

    
SERVICE AMENDMENTS

    
1997 GENERAL SESSION

    
STATE OF UTAH

    
Sponsor: Martin R. Stephens

    AN ACT RELATING TO PUBLIC UTILITIES; PROVIDING DEFINITIONS; DESIGNATING
    AN EXPIRATION AND TRANSFER OF REMAINING BALANCE; AUTHORIZING
    THE PUBLIC SERVICE COMMISSION TO ESTABLISH AND ADMINISTER A
    UNIVERSAL SERVICE FUND.
    This act affects sections of Utah Code Annotated 1953 as follows:
    AMENDS:
         54-8b-2, as last amended by Chapter 269, Laws of Utah 1995
         54-8b-12, as last amended by Chapter 37, Laws of Utah 1992
    ENACTS:
         54-8b-15, Utah Code Annotated 1953
    Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 54-8b-2 is amended to read:
         54-8b-2. Definitions.
        As used in this chapter:
        (1) (a) "Aggregator" means any person or entity that:
        (i) is not a telecommunications corporation;
        (ii) in the ordinary course of its business makes operator assisted services available to the
    public or to customers and transient users of its business or property through an operator service
    provider; and
        (iii) receives from an operator service provider by contract, tariff, or otherwise,
    commissions or compensation for calls delivered from the aggregator's location to the operator
    service provider.
        (b) "Aggregator" may include any hotel, motel, hospital, educational institution,
    government agency, or coin or coinless telephone service provider so long as that entity qualifies


    under Subsection (a).
        (2) "Certificate" means a certificate of public convenience and necessity issued by the
    commission authorizing a telecommunications corporation to provide specified public
    telecommunications services within a defined geographic service territory in the state.
        (3) "Essential facility or service" means any portion, component, or function of the network
    or service offered by a provider of local exchange services:
        (a) that is necessary for a competitor to provide a public telecommunications service;
        (b) that cannot be reasonably duplicated; and
        (c) for which there is no adequate economic alternative to the competitor in terms of quality,
    quantity, and price.
        (4) "Federal Telecommunications Act" means the Federal Telecommunications Act of 1996,
    Pub. L. No. 104-104, 110 Stat. 56.
        [(4)] (5) "Incumbent telephone corporation" means a telephone corporation, its successors
    or assigns, which, as of May 1, 1995, held a certificate to provide local exchange services in a
    defined geographic service territory in the state.
        [ (5)] (6) "Intrastate telecommunications service" means any public telecommunications
    service in which the information transmitted originates and terminates within the boundaries of this
    state.
        [(6)] (7) "Local exchange service" means the provision of telephone lines to customers with
    the associated transmission of two-way interactive, switched voice communication within the
    geographic area encompassing one or more local communities as described in maps, tariffs, or rate
    schedules filed with and approved by the commission.
        [(7)] (8) (a) "New public telecommunications service" means a service offered by a
    telecommunications corporation which that corporation has never offered before.
        (b) "New public telecommunications service" does not include:
        (i) a tariff, price list, or competitive contract that involves a new method of pricing any
    existing public telecommunications service;
        (ii) a package of public telecommunications services that includes an existing public

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    telecommunications service; or
        (iii) a public telecommunications service that is a direct replacement for:
        (A) a fully regulated service;
        (B) an existing service offered pursuant to a tariff, price list, or competitive contract; or
        (C) an essential facility or an essential service as defined in Subsection 54-8b-2(3).
        [(8)] (9) "Operator assisted services" means services which assist callers in the placement
    or charging of a telephone call, either through live intervention or automated intervention.
        [(9)] (10) "Operator service provider" means any person or entity that provides, for a fee to
    a caller, operator assisted services.
        [(10)] (11) "Price-regulated service" means any public telecommunications service governed
    by Section 54-8b-2.3.
        [(11)] (12) "Public telecommunications service" means the two-way transmission of signs,
    signals, writing, images, sounds, messages, data, or other information of any nature by wire, radio,
    lightwaves, or other electromagnetic means offered to the public generally.
        [(12)] (13) "Telecommunications corporation" means any corporation or person, and their
    lessees, trustees, receivers, or trustees appointed by any court, owning, controlling, operating,
    managing, or reselling a public telecommunications service.
        [(13)] (14) "Total service long-run incremental cost" means the forward-looking incremental
    cost to a telecommunications corporation caused by providing the entire quantity of a public
    telecommunications service, network function, or group of public telecommunications services or
    network functions, by using forward-looking technology, reasonably available, without assuming
    relocation of existing plant and equipment. The "long-run" means a period of time long enough so
    that cost estimates are based on the assumption that all inputs are variable.
        Section 2. Section 54-8b-12 is amended to read:
         54-8b-12. Trust fund established -- Requirements -- Expiration -- Transfer of balance.
        (1) The commission may establish an expendable trust fund for the purpose of maintaining
    the universal availability of intrastate telecommunications services at just and reasonable rates.
        (2) The fund established under this section shall meet the following requirements:

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        (a) Fund revenues shall be generated by statewide surcharges to the providers and users of
    intrastate telecommunications services. The surcharges shall be determined by the commission in
    accordance with Section 54-8b-11 and subject to the following restrictions:
        (i) No more than 50% of the fund revenues may be derived from surcharges to local
    exchange services.
        (ii) The surcharge for local exchange services may not exceed $.07 per month.
        (iii) The surcharge for all long distance-type services may not exceed $.005 per minute.
        (b) Only telecommunications corporations that provide local exchange service and hold a
    certificate of public convenience and necessity from the commission shall be eligible for receiving
    distributions from the fund.
        (3) Rules governing the administration of the fund shall be made by the commission.
        (4) All telecommunications corporations, persons, or entities, including corporations,
    persons, and entities which provide fixed or mobile radio services having direct or automated user
    access to the local exchange service networks, that provide and bill intrastate local or long
    distance-type public telecommunications services, shall bill, collect and submit surcharges, whether
    or not the corporation, person, or entity is otherwise regulated by the commission.
        (5) The commission may direct any telecommunications corporation, person, or entity to
    make available its books and records or other information for inspection by the commission or the
    Division of Public Utilities in a form required by the commission to ensure that surcharges as
    authorized under this section and determined by the commission have been billed, collected, and
    submitted.
        (6) Any telecommunications corporation, person, or entity which fails to bill, collect, and
    submit surcharges or which fails to obey the directive of the commission concerning its books and
    records or other information pursuant to this subsection is subject to a penalty of not less than $500
    nor more than $2,000 for each offense.
        (7) (a) Each violation of this section by a telecommunications corporation, person, or entity
    is a separate offense.
        (b) In the case of a continuing failure to comply, each day the violation continues is a

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    separate offense.
        (8) In construing and enforcing the provisions of this section relating to penalties, the act,
    commission, or failure of an officer, agent, or employee of the telecommunications corporation,
    person, or entity, acting within the scope of his official duties or employment, shall in each case be
    considered the act, commission, or failure of that telecommunications corporation, person, or entity.
        (9) On or before December 31, 1999, the commission shall dissolve this fund and any
    remaining balance shall be transferred to the Universal Public Telecommunications Service Support
    Fund established in Section 54-8b-15.
        Section 3. Section 54-8b-15 is enacted to read:
         54-8b-15. Universal Public Telecommunications Service Support Fund -- Established.
        (1) For purposes of this section:
        (a) "Basic telephone service" means local exchange service and may include such other
    functions and elements, if any, as the commission determines to be eligible for support by the fund.
        (b) "Fund" means the Universal Public Telecommunications Service Support Fund
    established in this section.
        (2) The commission shall establish an expendable trust fund known as the Universal Public
    Telecommunications Service Support Fund, which is to be implemented by January 1, 1998.
        (3) The commission shall:
        (a) institute a proceeding within 30 days of the effective date of this section to establish rules
    governing the administration of the fund; and
        (b) issue those rules by October 1, 1997.
        (4) The rules in Subsection (3) shall:
        (a) include rules governing the mechanics of phasing out the trust fund established under
    Section 54-8b-12;
        (b) specify the relationship between the payments made to the trust fund in Section 54-8b-12
    and the payments made to the fund established in this section; and
        (c) be consistent with the Federal Telecommunications Act.
        (5) Operation of the fund shall be nondiscriminatory and competitively and technologically

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    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.
        (6) The fund shall be designed to:
        (a) promote equitable cost recovery of basic telephone service through the imposition of just
    and reasonable rates for telecommunications access and usage; and
        (b) preserve and promote universal service within the state by ensuring that customers have
    access to affordable basic telephone service.
        (7) To the extent not funded by a federal universal service fund or other federal jurisdictional
    revenues or by the fund established pursuant to Section 54-8b-12, the fund shall be used to defray
    the costs, as determined by the commission, of any qualifying telecommunications corporation in
    providing public telecommunications services to:
        (a) customers that qualify for a commission-approved lifeline program; and
        (b) customers, where the basic telephone service rate considered affordable by the
    commission in a particular geographic area is less than the costs, as determined by the commission
    for that geographic area, of basic telephone service.
        (8) The fund shall be portable among qualifying telecommunications corporations.
    Requirements to qualify for funds under this section shall be defined by rules established by the
    commission.
        (9) As necessary to accomplish the purposes of this section, the fund shall provide a
    mechanism for specific, predictable, and sufficient funds in addition to those provided under the
    federal universal service fund.
        (10) (a) Each telecommunications corporation that provides intrastate public
    telecommunication service shall contribute to the fund on an equitable and nondiscriminatory basis.
        (b) For purposes of funding the fund, the commission shall have the authority to require all
    corporations that provide intrastate telecommunication services in this state to contribute monies to
    the fund through explicit charges determined by the commission.
        (c) Any charge in Subsection (b) shall not apply to wholesale services, including access and
    interconnection. Charges associated with being a provider of public telecommunications service

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    shall be in the form of end-user surcharges applied to intrastate retail rates.
        (d) In establishing any surcharge under this section, the commission is not limited by the
    restrictions in Subsection 54-8b-12(2).
        (11) Nothing in this section shall be construed to enlarge or reduce the commission's
    jurisdiction or authority, as provided in other provisions of this title.
        (12) Any telecommunications corporation failing to make contributions to this fund or
    failing to comply with the directives of the commission concerning its books, records, or other
    information required to administer this section shall be subject to applicable penalties.
        (13) The commission shall have a bill prepared for the 1998 General Session of the
    Legislature to place in statute as much of the regulation implemented by rule pursuant to the act the
    commission believes is practicable.

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