7 LONG TITLE
8 General Description:
9 This bill amends provisions related to the Universal Public Telecommunications
10 Service Support Fund.
11 Highlighted Provisions:
12 This bill:
13 ▸ provides that a telecommunications provider that establishes and maintains a
14 network capable of providing access lines, connections, or wholesale broadband
15 Internet access service may qualify for payments from the Universal Public
16 Telecommunications Service Support Fund for use in carrier of last resort areas;
17 ▸ requires each access line or connection provider in the state to contribute to the
18 Universal Public Telecommunications Service Support Fund;
19 ▸ requires the Public Service Commission to develop a method for calculating the
20 amount of each contribution charge assessed to an access line or connection
22 ▸ combines a surcharge and funding for administering the hearing and speech
23 impaired program with the Universal Public Telecommunications Service Support
24 Fund and surcharge;
25 ▸ provides for a depreciation method and rate-of-return for a carrier of last resort that
26 receives support from the Universal Public Telecommunications Service Support Fund;
27 ▸ provides that a wireless telecommunications provider is eligible for a distribution
28 from the Universal Public Telecommunications Service Support Fund for providing
29 lifeline service under certain circumstances; and
30 ▸ defines terms.
31 Money Appropriated in this Bill:
33 Other Special Clauses:
34 This bill provides a special effective date.
35 Utah Code Sections Affected:
37 54-8b-2, as last amended by Laws of Utah 2005, Chapter 5
38 54-8b-10, as last amended by Laws of Utah 2016, Chapter 271
39 54-8b-15, as last amended by Laws of Utah 2013, Chapter 400
40 63J-1-602.3, as last amended by Laws of Utah 2016, Chapters 52 and 271
42 Be it enacted by the Legislature of the state of Utah:
43 Section 1. Section 54-8b-2 is amended to read:
44 54-8b-2. Definitions.
45 As used in this chapter:
46 (1) "Access line" means a circuit-switched connection, or the functional equivalent of a
47 circuit-switched connection, from an end-user to the public switched network.
49 (i) is not a telecommunications corporation;
50 (ii) in the ordinary course of its business makes operator assisted services available to
51 the public or to customers and transient users of its business or property through an operator
52 service provider; and
53 (iii) receives from an operator service provider by contract, tariff, or otherwise,
54 commissions or compensation for calls delivered from the aggregator's location to the operator
55 service provider.
56 (b) "Aggregator" may include any hotel, motel, hospital, educational institution,
57 government agency, or coin or coinless telephone service provider so long as that entity
58 qualifies under Subsection [
60 customer consisting of:
61 (a) a single line with access to the public switched network;
62 (b) touch-tone or the functional equivalent;
63 (c) local flat-rate unlimited usage, exclusive of extended area service;
64 (d) single-party service;
65 (e) a free phone number listing in directories received for free;
66 (f) access to operator services;
67 (g) access to directory assistance;
68 (h) access to lifeline and telephone relay assistance;
69 (i) access to 911 and E911 emergency services;
70 (j) access to long-distance carriers;
71 (k) access to toll limitations services;
72 (l) other services as may be determined by the commission; and
73 (m) no feature.
75 the commission authorizing a telecommunications corporation to provide specified public
76 telecommunications services within a defined geographic service territory in the state.
80 the network or service offered by a provider of local exchange services:
81 (a) that is necessary for a competitor to provide a public telecommunications service;
82 (b) that cannot be reasonably duplicated; and
83 (c) for which there is no adequate economic alternative to the competitor in terms of
84 quality, quantity, and price.
86 switch, including call waiting, call forwarding, three-way calling, and similar services.
87 (b) "Feature" does not include long distance calling.
89 as amended, and the Federal Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat.
92 successors or assigns, which, as of May 1, 1995, held a certificate to provide local exchange
93 services in a defined geographic service territory in the state.
95 telecommunications service in which the information transmitted originates and terminates
96 within the boundaries of this state.
98 customers with the associated transmission of two-way interactive, switched voice
99 communication within the geographic area encompassing one or more local communities as
100 described in maps, tariffs, or rate schedules filed with and approved by the commission.
103 (a) that is defined as a mobile telecommunications service in the Mobile
104 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124; and
105 (b) in which the information transmitted originates and terminates in one state.
107 telecommunications corporation which that corporation has never offered before.
108 (b) "New public telecommunications service" does not include:
109 (i) a tariff, price list, or competitive contract that involves a new method of pricing any
110 existing public telecommunications service;
111 (ii) a package of public telecommunications services that includes an existing public
112 telecommunications service; or
113 (iii) a public telecommunications service that is a direct replacement for:
114 (A) a fully regulated service;
115 (B) an existing service offered pursuant to a tariff, price list, or competitive contract; or
116 (C) an essential facility or an essential service.
118 placement or charging of a telephone call, either through live intervention or automated
121 fee to a caller, operator assisted services.
123 governed by Section 54-8b-2.3.
124 (17) "Public switched network" means the same as that term is defined in 47 C.F.R.
125 Sec. 20.3.
127 signs, signals, writing, images, sounds, messages, data, or other information of any nature by
128 wire, radio, lightwaves, or other electromagnetic means offered to the public generally.
130 commission means satisfaction of all material obligations in a manner consistent with the rule
131 or order.
133 their lessees, trustees, receivers, or trustees appointed by any court, owning, controlling,
134 operating, managing, or reselling a public telecommunications service.
136 incremental cost to a telecommunications corporation caused by providing the entire quantity
137 of a public telecommunications service, network function, or group of public
138 telecommunications services or network functions, by using forward-looking technology,
139 reasonably available, without assuming relocation of existing plant and equipment.
140 (b) The "long-run" means a period of time long enough so that cost estimates are based
141 on the assumption that all inputs are variable.
142 Section 2. Section 54-8b-10 is amended to read:
143 54-8b-10. Imposing a surcharge to provide hearing and speech impaired persons
144 with telecommunication devices -- Definitions -- Procedures for establishing program --
145 Surcharge -- Administration and disposition of surcharge money.
146 (1) As used in this section:
147 (a) "Certified deaf or severely hearing or speech impaired person" means any state
148 resident who:
149 (i) is so certified by:
150 (A) a licensed physician;
151 (B) an otolaryngologist;
152 (C) a speech language pathologist;
153 (D) an audiologist; or
154 (E) a qualified state agency; and
155 (ii) qualifies for assistance under any low income public assistance program
156 administered by a state agency.
157 (b) "Certified interpreter" means a person who is a certified interpreter under Title
158 35A, Chapter 13, Part 6, Interpreter Services for the Deaf and Hard of Hearing Act.
159 (c) (i) "Telecommunication device" means any mechanical adaptation device that
160 enables a deaf or severely hearing or speech impaired person to use the telephone.
161 (ii) "Telecommunication device" includes:
162 (A) telecommunication devices for the deaf (TDD);
163 (B) telephone amplifiers;
164 (C) telephone signal devices;
165 (D) artificial larynxes; and
166 (E) adaptive equipment for TDD keyboard access.
167 (2) The commission shall [
168 deaf or severely hearing or speech impaired customer of a telecommunications corporation that
169 provides service through a local exchange or of a wireless telecommunications provider may
170 obtain a telecommunication device capable of serving the customer at no charge to the
171 customer beyond the rate for basic service.
172 (3) (a) The program described in Subsection (2) shall provide a dual party relay system
173 using third party intervention to connect a certified deaf or severely hearing or speech impaired
174 person with a normal hearing person by way of telecommunication devices designed for that
176 (b) The commission may, by rule, establish the type of telecommunications device to
177 be provided to ensure functional equivalence.
202 (4) The commission shall cover the costs of the program described in this section from
203 the Universal Public Telecommunications Service Support Fund created in Section 54-8b-15.
204 (5) In administering the program described in this section, the commission may use
205 funds from the Universal Public Telecommunications Support Fund:
215 Utah Procurement Code, with:
217 53B-1-102 for a program approved by the Board of Regents that trains persons to qualify as
218 certified interpreters; or
220 program that trains persons to qualify as certified interpreters.
222 procedures by rule made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
224 Subsection (5).
235 (7) The commission shall solicit [
237 hard of hearing, or severely speech impaired individuals and the organizations serving deaf,
238 hard of hearing, or severely speech impaired individuals in the design and implementation of
239 the program.
240 Section 3. Section 54-8b-15 is amended to read:
241 54-8b-15. Universal Public Telecommunications Service Support Fund --
243 (1) For purposes of this section:
247 (a) "Broadband Internet access service" means the same as that term is defined in 47
248 C.F.R. Sec. 8.2.
249 (b) "Carrier of last resort" means:
250 (i) an incumbent telephone corporation; or
251 (ii) a telecommunications corporation that, under Section 54-8b-2.1:
252 (A) has a certificate of public convenience and necessity to provide local exchange
253 service; and
254 (B) has an obligation to provide public telecommunications service to any customer or
255 class of customers that requests service within the local exchange.
256 (c) "Connection" means an authorized session that uses Internet protocol or a
257 functionally equivalent technology standard to enable an end-user to initiate or receive a call
258 from the public switched network.
260 Fund established in this section.
261 (e) "Non-rate-of-return regulated" means having price flexibility under Section
263 (f) "Rate-of-return regulated" means subject to regulation under Section 54-4-4.
264 (g) "Wholesale broadband Internet access service" means the end-user loop component
265 of Internet access provided by a rate-of-return regulated carrier of last resort that is used to
266 provide, at retail:
267 (i) combined consumer voice and broadband Internet access; or
268 (ii) stand-alone, consumer, broadband-only Internet access.
270 (2) (a) There is established an expendable special revenue fund known as the
271 "Universal Public Telecommunications Service Support Fund[
273 (b) The fund shall provide a mechanism for a qualifying carrier of last resort to obtain
274 specific, predictable, and sufficient funds to deploy and manage, for the purpose of providing
275 service to end-users, networks capable of providing:
276 (i) access lines;
277 (ii) connections; or
278 (iii) wholesale broadband Internet access service.
279 (c) The commission shall develop, by rule made in accordance with Title 63G, Chapter
280 3, Utah Administrative Rulemaking Act and consistent with this section, policies and
281 procedures to govern the administration of the fund.
309 (3) Subject to this section, the commission shall use funds in the Universal Public
310 Telecommunications Service Support Fund to:
311 (a) fund the hearing and speech impaired program described in Section 54-8b-10;
312 (b) fund a lifeline program that covers the reasonable cost to an eligible
313 telecommunications carrier, as determined by the commission, to offer lifeline service
314 consistent with the Federal Communications Commission's lifeline program for low-income
316 (c) fund, for the purpose of providing service to end-users, a rate-of-return regulated or
317 non-rate-of-return regulated carrier of last resort's deployment and management of networks
318 capable of providing:
319 (i) access lines;
320 (ii) connections; or
321 (iii) wholesale broadband Internet access service that is consistent with Federal
322 Communications Commission rules; and
323 (d) fund one-time distributions from the Universal Public Telecommunications Service
324 Support Fund for a non-rate-of-return regulated carrier of last resort's deployment and
325 management of networks capable of providing:
326 (i) access lines;
327 (ii) connections; or
328 (iii) broadband Internet access service.
329 (4) (a) A rate-of-return regulated carrier of last resort is eligible for payment from the
330 Universal Public Telecommunications Service Support Fund if:
331 (i) the rate-of-return regulated carrier of last resort provides the services described in
332 Subsections (3)(c)(i) through (iii); and
333 (ii) the rate-of-return regulated carrier of last resort's reasonable costs, as determined by
334 the commission, to provide public telecommunications service and wholesale broadband
335 Internet access service are greater than the sum of:
336 (A) the rate-of-return regulated carrier of last resort's revenue from basic residential
337 service considered affordable by the commission;
338 (B) the rate-of-return regulated carrier of last resort's regulated revenue derived from
339 providing other public telecommunications service;
340 (C) the rate-of-return regulated carrier of last resort's revenue from rates approved by
341 the Federal Communications Commission for wholesale broadband Internet access service; and
342 (D) the amount the rate-of-return regulated carrier of last resort receives from federal
343 universal service funds.
344 (b) A non-rate-of-return regulated carrier of last resort is eligible for payment from the
345 Universal Public Telecommunications Service Support Fund for reimbursement of reasonable
346 costs as determined by the commission if the non-rate-of-return regulated carrier meets criteria
347 that are:
348 (i) consistent with Subsections (2) and (3); and
349 (ii) developed by the commission by rule made in accordance with Title 63G, Chapter
350 3, Utah Administrative Rulemaking Act.
351 (5) A rate-of-return regulated carrier of last resort that qualifies for funds under this
353 (a) is entitled to a rate of return equal to the weighted average cost of capital rate of
354 return prescribed by the Federal Communications Commission for rate-of-return regulated
355 carriers; and
356 (b) may use any depreciation method allowed by the Federal Communications
358 (6) (a) The commission shall determine if a rate-of-return regulated carrier of last resort
359 is correctly applying a depreciation method described in Subsection (5)(b).
360 (b) If the commission determines under Subsection (6)(a) that a rate-of-return regulated
361 carrier of last resort is incorrectly applying a depreciation method or that the rate-of-return
362 regulated carrier of last resort is not using a depreciation method allowed by the Federal
363 Communications Commission, the commission shall issue an order that provides corrections to
364 the rate-of-return regulated carrier of last resort's method of depreciation.
368 (7) A carrier of last resort that receives funds from the Universal Public
369 Telecommunications Service Support Fund may only use the funds in accordance with this
370 section within the area for which the carrier of last resort has a carrier of last resort obligation.
371 (8) Each access line provider and each connection provider shall contribute to the
372 Universal Public Telecommunications Service Support Fund through an explicit charge
373 assessed by the commission on the access line provider or connection provider.
374 (9) The commission shall calculate the amount of each explicit charge described in
375 Subsection (8) using a method developed by the commission by rule made in accordance with
376 Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
377 (a) does not discriminate against:
378 (i) any access line or connection provider; or
379 (ii) the technology used by any access line or connection provider;
380 (b) is competitively neutral; and
381 (c) is a function of an access line or connection provider's:
382 (i) annual intrastate revenue;
383 (ii) number of access lines or connections in the state; or
384 (iii) a combination of an access line or connection provider's annual intrastate revenue
385 and number of access lines or connections in the state.
386 (10) The commission shall develop the method described in Subsection (9) before
387 January 1, 2018.
400 that provides mobile telecommunications service shall contribute to the [
401 Public Telecommunications Service Support Fund only to the extent permitted by the Mobile
402 Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.
404 commission's jurisdiction or authority, as provided in other provisions of this title.
407 (13) A person that fails to make a required contribution to the fund created by this
408 section, or that fails to comply with [
410 this section [
414 (14) Nothing in this section gives the commission the authority:
415 (a) to regulate broadband Internet access service;
416 (b) to require a carrier of last resort to provide broadband Internet access service; or
417 (c) assess a contribution in violation of the Internet Tax Freedom Act, 47 U.S.C. Sec.
418 151 note.
419 (15) (a) A facilities-based or nonfacilities-based wireless telecommunication provider
420 is eligible for distributions from the Universal Telecommunications Service Support Fund
421 under the lifeline program described in Subsection (3)(b) for providing lifeline service that is
422 consistent with the Federal Communications Commission's lifeline program for low-income
424 (b) Except as provided in Subsection (15)(c), the commission may impose reasonable
425 conditions for providing a distribution to a wireless telecommunication provider under the
426 lifeline program described in Subsection (3)(b).
427 (c) The commission may not require a wireless telecommunication provider to offer
428 unlimited local calling to a lifeline customer as a condition of receiving a distribution under the
429 lifeline program described in Subsection (3)(b).
430 (16) The commission shall report to the Public Utilities, Energy, and Technology
431 Interim Committee each year before November 1 regarding:
432 (a) the contribution method described in Subsection (9);
433 (b) the amount of distributions from and contributions to the Universal Public
434 Telecommunications Service Support Fund during the last fiscal year;
435 (c) the availability of services for which Subsection (3) permits Universal Public
436 Telecommunications Service Support Fund funds to be used; and
437 (d) the effectiveness and efficiency of the Universal Public Telecommunications
438 Service Support Fund.
439 Section 4. Section 63J-1-602.3 is amended to read:
440 63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
441 (1) The Utah Law Enforcement Memorial Support Restricted Account created in
442 Section 53-1-120.
443 (2) Funding for the Search and Rescue Financial Assistance Program, as provided in
444 Section 53-2a-1102.
445 (3) Appropriations made to the Division of Emergency Management from the State
446 Disaster Recovery Restricted Account, as provided in Section 53-2a-603.
447 (4) Appropriations made to the Department of Public Safety from the Department of
448 Public Safety Restricted Account, as provided in Section 53-3-106.
449 (5) Appropriations to the Motorcycle Rider Education Program, as provided in Section
451 (6) Appropriations from the Utah Highway Patrol Aero Bureau Restricted Account
452 created in Section 53-8-303.
453 (7) Appropriations from the DNA Specimen Restricted Account created in Section
455 (8) The Canine Body Armor Restricted Account created in Section 53-16-201.
456 (9) The School Readiness Restricted Account created in Section 53A-1b-104.
457 (10) Appropriations to the State Board of Education, as provided in Section
459 (11) Money received by the Utah State Office of Rehabilitation for the sale of certain
460 products or services, as provided in Section 35A-13-202.
461 (12) Certain funds appropriated from the General Fund to the State Board of Regents
462 for teacher preparation programs, as provided in Section 53B-6-104.
463 (13) Funding for the Medical Education Program administered by the Medical
464 Education Council, as provided in Section 53B-24-202.
465 (14) A certain portion of money collected for administrative costs under the School
466 Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
470 Licensing for violation of unlawful or unprofessional conduct that are used for education and
471 enforcement purposes, as provided in Section 58-17b-505.
473 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
474 provided in Section 58-63-103.
476 in Section 59-9-105.
478 Section 5. Effective date.
479 This bill takes effect on July 1, 2017.