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S.B. 188





Sponsor: Lyle W. Hillyard

             16      PROVIDING A REPEAL DATE.
             17      This act affects sections of Utah Code Annotated 1953 as follows:
             18      AMENDS:
             19          54-8b-15, as enacted by Chapter 122, Laws of Utah 1997
             20          63D-1-301.5, as enacted by Chapter 364, Laws of Utah 1998
             21      ENACTS:
             22          63-55b-167, Utah Code Annotated 1953
             23          63D-1-105, Utah Code Annotated 1953
             24          67-1-13, Utah Code Annotated 1953
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 54-8b-15 is amended to read:
             27           54-8b-15. Universal Public Telecommunications Service Support Fund --

             28      Established.
             29          (1) For purposes of this section:
             30          (a) "Basic telephone service" means local exchange service and may include such other
             31      functions and elements, if any, as the commission determines to be eligible for support by the fund.
             32          (b) "Fund" means the Universal Public Telecommunications Service Support Fund
             33      established in this section.
             34          (2) The commission shall establish an expendable trust fund known as the Universal
             35      Public Telecommunications Service Support Fund, which is to be implemented by January 1,
             36      1998.
             37          (3) The commission shall:
             38          (a) institute a proceeding within 30 days of the effective date of this section to establish
             39      rules governing the administration of the fund; and
             40          (b) issue those rules by October 1, 1997.
             41          (4) The rules in Subsection (3) shall:
             42          (a) include rules governing the mechanics of phasing out the trust fund established under
             43      Section 54-8b-12 ;
             44          (b) specify the relationship between the payments made to the trust fund in Section
             45      54-8b-12 and the payments made to the fund established in this section; and
             46          (c) be consistent with the Federal Telecommunications Act.
             47          (5) Operation of the fund shall be nondiscriminatory and competitively and technologically
             48      neutral in the collection and distribution of funds, neither providing a competitive advantage for,
             49      nor imposing a competitive disadvantage upon, any telecommunications provider operating in the
             50      state.
             51          (6) The fund shall be designed to:
             52          (a) promote equitable cost recovery of basic telephone service through the imposition of
             53      just and reasonable rates for telecommunications access and usage; and
             54          (b) preserve and promote universal service within the state by ensuring that customers
             55      have access to affordable basic telephone service.
             56          (7) To the extent not funded by a federal universal service fund or other federal
             57      jurisdictional revenues or by the fund established pursuant to Section 54-8b-12 , the fund shall be
             58      used to defray the costs, as determined by the commission, of any qualifying telecommunications

             59      corporation in providing public telecommunications services to:
             60          (a) customers that qualify for a commission-approved lifeline program; and
             61          (b) customers, where the basic telephone service rate considered affordable by the
             62      commission in a particular geographic area is less than the costs, as determined by the commission
             63      for that geographic area, of basic telephone service.
             64          (8) The fund shall be portable among qualifying telecommunications corporations.
             65      Requirements to qualify for funds under this section shall be defined by rules established by the
             66      commission.
             67          (9) As necessary to accomplish the purposes of this section, the fund shall provide a
             68      mechanism for specific, predictable, and sufficient funds in addition to those provided under the
             69      federal universal service fund.
             70          (10) (a) Each telecommunications corporation that provides intrastate public
             71      telecommunication service shall contribute to the fund on an equitable and nondiscriminatory
             72      basis.
             73          (b) For purposes of funding the fund, the commission shall have the authority to require
             74      all corporations that provide intrastate telecommunication services in this state to contribute
             75      monies to the fund through explicit charges determined by the commission.
             76          (c) Any charge in Subsection (10)(b) shall not apply to wholesale services, including
             77      access and interconnection. Charges associated with being a provider of public
             78      telecommunications service shall be in the form of end-user surcharges applied to intrastate retail
             79      rates.
             80          (d) In establishing any surcharge under this section, the commission is not limited by the
             81      restrictions in Subsection 54-8b-12 (2).
             82          (11) Nothing in this section shall be construed to enlarge or reduce the commission's
             83      jurisdiction or authority, as provided in other provisions of this title.
             84          (12) Any telecommunications corporation failing to make contributions to this fund or
             85      failing to comply with the directives of the commission concerning its books, records, or other
             86      information required to administer this section shall be subject to applicable penalties.
             87          (13) The commission shall have a bill prepared for the 1998 General Session of the
             88      Legislature to place in statute as much of the regulation implemented by rule pursuant to the act
             89      the commission believes is practicable.

             90          (14) Based upon recommendations made by the Rural Telecommunications Task Force
             91      established by Section 67-1-13 , the commission shall initiate a proceeding and issue rules by
             92      December 1, 1999, governing the use of this fund for advanced telecommunications services in
             93      rural areas of the state.
             94          Section 2. Section 63-55b-167 is enacted to read:
             95          63-55b-167. Repeal date -- Title 67.
             96          Section 67-1-13 is repealed November 30, 2000.
             97          Section 3. Section 63D-1-105 is enacted to read:
             98          63D-1-105. Government products and services on Internet.
             99          (1) The appropriate state entities shall allow the following services to be transacted
             100      through the Internet by July 1, 2002:
             101          (a) application for and renewal of professional and occupational licenses;
             102          (b) renewal of drivers licenses;
             103          (c) application for hunting and fishing licenses;
             104          (d) filings for income tax, sales tax, court documents, and Uniform Commercial Code;
             105          (e) registrations for products, brands, motor vehicles, corporations, and businesses;
             106          (f) submission of an application for unemployment, welfare, and health benefits; and
             107          (g) payment of fines and fees.
             108          (2) The state system of public education, in coordination with the Utah Education
             109      Network, shall develop and make the following services available through the Internet by July 1,
             110      2002;
             111          (a) secure access by parents and students to student grades and progress reports;
             112          (b) email communications with teachers, parent-teacher associations, and school
             113      administrators;
             114          (c) access to school calendars and schedules; and
             115          (d) teaching resources that may include teaching plans, curriculum guides, and media
             116      resources.
             117          (3) State entities shall:
             118          (a) in carrying out the requirements of this section, take reasonable steps to ensure the
             119      security and privacy of records that are private or controlled as defined by GRAMA;
             120          (b) in addition to those required services listed in Subsections (1) through (3), determine

             121      any additional services which may be made available to the public through electronic means,
             122      including the Internet, by July 1, 2002; and
             123          (c) as part of their budget reports to the Information Technology Commission prescribed
             124      by Section 63D-1-204 , report on the progress of compliance with Subsections (1) through (3).
             125          (4) A state entity is not required to provide a transaction through the Internet that is
             126      impractical, unreasonable, or not permitted by laws pertaining to privacy or security.
             127          Section 4. Section 63D-1-301.5 is amended to read:
             128           63D-1-301.5. Chief information officer -- Duties.
             129          (1) The chief information officer shall:
             130          (a) develop specific information technology objectives, policies, procedures, and standards
             131      to guide the development of information systems within state government to achieve maximum
             132      economy and quality while preserving optimum user flexibility, including:
             133          (i) policies, standards, and procedures for appropriate interchange of information, optimum
             134      service, and minimum costs;
             135          (ii) policies for costing all information technology services performed by any state
             136      information technology cost recovery center so that every cost recovery center charges its users a
             137      rate for services that is both equitable and sufficient to recover all the costs of its operation,
             138      including the cost of capital equipment and facilities;
             139          (iii) policies governing coordination, cooperation, joint efforts, working relationships, and
             140      cost accounting relative to the development and maintenance of information technology and
             141      information systems; and
             142          (iv) policies to ensure the protection of individual privacy and guarantee the exclusive
             143      control to a user of its own data;
             144          (b) coordinate the preparation of agency information technology plans within state
             145      government, encompassing both short-term and long-term needs that support the agency's and the
             146      state's strategic plans, including Utah Tomorrow;
             147          (c) require each state agency to submit semiannually an agency information technology
             148      plan containing the information required by Subsection (2) before the legislative session in which
             149      the budget request will be heard and no later than the June 15 after the legislative session in which
             150      the budget request was authorized to the chief information officer;
             151          (d) upon receipt of a state agency's information technology plan:

             152          (i) provide a complete copy of that plan to the director of the Division of Information
             153      Technology Services;
             154          (ii) review and approve or disapprove agency information technology plans to ensure that
             155      these plans are the most economically viable and are the best solution to the agency's needs and
             156      the state's needs; and
             157          (iii) approve or disapprove of and coordinate the acquisition of information technology
             158      equipment, telecommunications equipment, and related services for all agencies of state
             159      government;
             160          (e) facilitate the implementation of agency plans;
             161          (f) establish priorities in terms of both importance and time sequencing for the
             162      development and implementation of information systems;
             163          (g) monitor information systems development to promote maximum use of existing state
             164      information resources;
             165          (h) advise the governor on information technology policy and make recommendations to
             166      the governor regarding requests for appropriations for information technology equipment and
             167      personnel;
             168          (i) maintain liaison with the legislative and judicial branches, the Board of Regents, the
             169      State Board of Education, local government, federal government, business and industry, and
             170      consumers to promote cooperation and make recommendations regarding information resources;
             171          (j) conduct performance audits of state information technology management, planning, and
             172      the use of information technology resources and distribute copies of the audit reports as provided
             173      in Subsection (3); [and]
             174          (k) prepare an annual report to the governor and to the Legislature's Public Utilities and
             175      Technology Interim Committee and the Information Technology Commission that:
             176          (i) summarizes the state's current and projected use of information technology; and
             177          (ii) includes a description of major changes in state policy and a brief description of each
             178      state agency's plan;
             179          (l) inform each state entity of the requirements of Section 63D-1-105 ; and
             180          (m) as permitted by law, coordinate the efforts of state government to provide services and
             181      transactions through the Internet.
             182          (2) (a) Each state agency information technology plan shall include information about

             183      planned information technology objectives and expenditures for the next year in the level of detail
             184      and format specified by the chief information officer.
             185          (b) The plans in Subsection (2)(a) shall include the progress of each state agency toward
             186      making the agency's services available on the Internet as provided in Section 63D-1-105 .
             187          (3) (a) Upon completion of an audit report produced under authority of Subsection (1)(j),
             188      the chief information officer shall:
             189          (i) provide copies of all audit reports to:
             190          (A) the agency audited;
             191          (B) the governor;
             192          (C) the Office of Legislative Fiscal Analyst;
             193          (D) the Public Utilities and Technology Interim Committee; and
             194          (E) the Information Technology Commission; and
             195          (ii) present the performance audit findings to the Information Technology Policy and
             196      Strategy Committee at their next meeting.
             197          (b) Each state agency shall provide the chief information officer with complete access to
             198      all information technology records, documents, and reports, including electronic, analog, or digital,
             199      when requested for the purpose of a performance audit.
             200          (4) The rate for services established by an information technology cost recovery center,
             201      and reviewed by the chief information officer, may be lowered if the Legislature appropriates
             202      monies to the cost recovery center for the specific purpose of lowering rates.
             203          Section 5. Section 67-1-13 is enacted to read:
             204          67-1-13. Rural Telecommunications Task Force -- Creation -- Membership --
             205      Quorum -- Compensation -- Staff -- Duties -- Reports and recommendations.
             206          (1) There is created within the governor's office the Rural Telecommunications Task Force
             207      consisting of the following 11 members:
             208          (a) one representative from state government appointed by the governor who shall serve
             209      as chair;
             210          (b) one member of the Senate appointed by the president of the Senate;
             211          (c) one member of the House of Representatives appointed by the speaker of the House
             212      of Representatives;
             213          (d) the chair of the Public Service Commission or the chair's designee;

             214          (e) the administrative secretary of the Committee of Consumer Services or the
             215      administrative secretary's designee;
             216          (f) the director of the Division of Public Utilities or the director's designee;
             217          (g) two representatives from a local government organization in rural Utah, one
             218      representing cities and one representing counties, appointed by the governor; and
             219          (h) three representatives from telecommunications providers in rural Utah to be appointed
             220      by the governor.
             221          (2) A majority of the members of the task force constitute a quorum. The action of a
             222      majority of a quorum constitutes the action of the task force.
             223          (3) (a) Salaries and expenses of the members of the task force who are legislators shall be
             224      paid in accordance with Section 36-2-2 and Legislative Joint Rule 15.03.
             225          (b) Members of the task force who are not legislators may not receive compensation for
             226      their work associated with the task force, but may receive per diem and expenses incurred as a
             227      member of the task force at the rates established by the Division of Finance under Sections
             228      63A-3-106 and 63A-3-107 .
             229          (4) The governor's office shall provide staff support to the task force.
             230          (5) The task force shall review and make recommendations on the following issues:
             231          (a) identify appropriate eligibility criteria for Universal Service Fund Support for capital
             232      investment in broadband data services in rural areas of the state so that:
             233          (i) such support is limited to areas lacking those services;
             234          (ii) an appropriate fund balance is maintained;
             235          (iii) such support begins January 1, 2000; and
             236          (iv) increases in surcharges to support the fund are minimal;
             237          (b) identify areas of the state where state government should assume liability for the costs
             238      of relocating facilities in the case of right-of-way realignments in order to encourage deployment
             239      of digital infrastructure to those areas; and
             240          (c) other possible solutions to aid in the deployment of advanced telecommunications
             241      services in rural areas of the state.
             242          (6) The task force shall provide:
             243          (a) recommendations on rule changes to the Public Service Commission by October 1,
             244      1999; and

             245          (b) a report, including any proposed legislation, to the Public Utilities and Technology
             246      Interim Committee before November 30, 1999.

Legislative Review Note
    as of 2-15-99 3:32 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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