Bill Text: OR SB343 | 2013 | Regular Session | Introduced
Bill Title: Relating to the universal service fund established by the Public Utility Commission.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB343 Detail]
Download: Oregon-2013-SB343-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1898
Senate Bill 343
Sponsored by Senator BEYER (at the request of Oregon Cable
Telecommunications Association) (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Caps annual distributions made by Public Utility Commission for
purpose of subsidizing basic telephone service.
Becomes operative July 1, 2014.
A BILL FOR AN ACT
Relating to the universal service fund established by the Public
Utility Commission; creating new provisions; and amending ORS
759.425.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 759.425 is amended to read:
759.425. (1) The Public Utility Commission shall establish and
implement a competitively neutral and nondiscriminatory universal
service fund. Subject to subsection (6) of this section, the
commission shall use the universal service fund to ensure basic
telephone service is available at a reasonable and affordable
rate. The Public Utility Commission may adopt rules to conform
the universal service fund to section 254 of the federal
Telecommunications Act of 1996 (Public Law 104-104), and to
related rules adopted by the Federal Communications Commission,
to the extent that the Public Utility Commission determines is
appropriate. The commission may delay implementation for rural
telecommunications carriers, as defined in the federal Act, for
up to six months after the date the Federal Communications
Commission adopts a cost methodology for rural carriers.
(2)(a) The Public Utility Commission shall establish the price
a telecommunications utility may charge its customers for basic
telephone service. The commission in its discretion shall
periodically review and evaluate the status of telecommunications
services in the state and designate the services included in
basic telephone service. The commission in its discretion shall
periodically review and adjust as necessary the price a
telecommunications utility may charge for basic telephone
service.
(b) The provisions of this subsection do not apply to the basic
telephone service provided by a telecommunications utility
described in ORS 759.040.
(3)(a) { + Subject to paragraph (e) of this subsection, + }
the Public Utility Commission shall establish a benchmark for
basic telephone service as necessary for the administration and
distribution of { + moneys in + } the universal service fund.
{ + (b) + }The universal service fund shall provide explicit
support to an eligible telecommunications carrier that is equal
to the difference between the cost of providing basic telephone
service and the benchmark { + established under paragraph (a) of
this subsection + }, less any explicit compensation received by
the carrier from federal sources specifically targeted to
recovery of local loop costs and less any explicit support
received by the carrier from a federal universal service program.
{ - (b) - } { + (c) + } The commission in its discretion
shall periodically review the benchmark and adjust it as
necessary to reflect:
(A) Changes in competition in the telecommunications industry;
(B) Changes in federal universal service support; and
(C) Other relevant factors as determined by the commission.
{ - (c) - } { + (d) + } Except for a telecommunications
utility described in ORS 759.040, the commission shall seek to
limit the difference between the price a telecommunications
utility may charge for basic telephone service and the benchmark.
{ + (e) The amount of moneys distributed annually under this
subsection for the purpose specified in subsection (1) of this
section may not exceed $8 million. + }
(4) Except as provided in subsections (7) and (8) of this
section, there is imposed on the sale of all retail
telecommunications services sold in this state a universal
service surcharge. Unless otherwise provided by the Public
Utility Commission by rule, the surcharge shall be a uniform
percentage of the sale of retail telecommunications services in
an amount sufficient to support the purpose of the universal
service fund. The surcharge may be shown as a separate line item
by all telecommunications carriers using language prescribed by
the commission. A telecommunications carrier shall deposit
amounts collected into the universal service fund according to a
schedule adopted by the commission.
(5) The Public Utility Commission is authorized to establish a
universal service fund, separate and distinct from the General
Fund. The fund shall consist of all universal service surcharge
moneys collected by telecommunications carriers and paid into the
fund. The fund shall be used only for the purpose described in
this section, and for payment of expenses incurred by the
commission or a third party appointed by the commission to
administer this section. All moneys in the fund are continuously
appropriated to the commission to carry out the provisions of
this section. Interest on moneys deposited in the fund shall
accrue to the fund.
(6) In addition to the purpose specified in subsection (1) of
this section, moneys in the universal service fund may be used by
the Public Utility Commission to survey or map the state to
determine where adequate broadband services are available. The
amount of moneys in the universal service fund used for this
purpose may not exceed the amount the state is required to expend
to receive the maximum amount of funds available from federal
sources for broadband services. If in-kind services are allowed
for a state's share of a mapping project, the state shall use
in-kind services before expending universal service funds. The
commission may use an independent contractor to perform mapping
services.
(7) For purposes of this section, 'retail telecommunications
service' does not include radio communications service, radio
paging service, commercial mobile radio service, personal
communications service or cellular communications service.
(8)(a) Notwithstanding subsection (7) of this section, a person
who primarily provides radio communications service, radio paging
service, commercial mobile radio service, personal communications
service or cellular communications service may request
designation as an eligible telecommunications carrier by the
Public Utility Commission for purposes of participation in the
universal service fund.
(b) In the event a person who primarily provides radio
communications service, radio paging service, commercial mobile
radio service, personal communications service or cellular
communications service seeks designation as an eligible
telecommunications carrier for purposes of participation in the
universal service fund, the person shall provide written notice
to the Public Utility Commission requesting designation as an
eligible telecommunications carrier within 60 days of the date
the commission establishes the fund. Upon receiving notice, the
commission may designate the person as an eligible
telecommunications carrier for purposes of participation in the
fund.
(c) A person who primarily provides radio communications
service, radio paging service, commercial mobile radio service,
personal communications service or cellular communications
service who fails to request designation as an eligible
telecommunications carrier within 60 days of the date the
universal service fund is established by the Public Utility
Commission may not be designated as an eligible
telecommunications carrier unless the person has contributed to
the fund for at least one year immediately prior to requesting
designation.
(9) A pay telephone provider may apply to the Public Utility
Commission, on a form developed by the commission, for a refund
of the universal service surcharge imposed on the provider under
subsection (4) of this section for the provision of pay telephone
service.
SECTION 2. { + The amendments to ORS 759.425 by section 1 of
this 2013 Act become operative on July 1, 2014. + }
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