Chapter 966 Oregon Laws 2001
AN ACT
HB 2659
Relating to
telecommunications service; creating new provisions; and amending ORS 759.410,
759.425 and 759.445 and sections 34 and 37, chapter 1093, Oregon Laws 1999.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 759.410 is amended to read:
759.410. (1) It is the intent of the Legislative Assembly
that:
(a) The State of Oregon cease regulation of
telecommunications carriers on a rate of return basis;
(b) Telecommunications carriers subject to rate of return
regulation have the ability to opt out of rate of return regulation;
(c) A telecommunications carrier that opts out of rate of
return regulation under this section and ORS 759.405 shall be subject to price
cap regulation and the carrier under price cap regulation shall continue to
meet service quality requirements; and
(d) Telecommunications carriers that opt out of rate of
return regulation under this section and ORS 759.405 shall make payments to the
state to support the use of advanced telecommunications services and to support
deployment of advanced telecommunications services.
(2) A telecommunications carrier that elects to be subject
to this section and ORS 759.405 shall be subject to price regulation as
provided in this section and shall not be subject to any other retail rate
regulation, including but not limited to any form of earnings-based, rate-based
or rate of return regulation.
(3) The price a telecommunications utility that elects to
be subject to this section and ORS 759.405 may charge for basic telephone
service shall be established by the Public Utility Commission under ORS
759.425. Subject to ORS 759.415, the regular tariff rate of intrastate switched
access and retail telecommunications services regulated by the commission,
other than basic telephone service, in effect on the date the carrier elects to
be subject to this section and ORS 759.405 shall be the maximum price the
telecommunications carrier may charge for that service.
(4) A telecommunications carrier that elects to be subject
to this section and ORS 759.405 may adjust the price for intrastate switched access or a regulated retail telecommunications
service between the maximum price established under this section and a price
floor equal to the sum of the total service long run incremental cost of
providing the service for the nonessential functions of the service and the
price that is charged to other telecommunications carriers for the essential
functions. Basic telephone service shall not be subject to a price floor.
(5) The price for a new regulated retail telecommunications
service introduced by a telecommunications carrier within four years after the
date the carrier elects to be subject to this section and ORS 759.405 shall be
subject to a price floor test by the commission to ensure that the service is
not priced below the sum of the total service long run incremental cost of
providing the service for the nonessential functions of the service and the
price that is charged to other telecommunications carriers for the essential
functions. Beginning on the date four years after September 1, 1999, the price
of a new telecommunications service shall be subject to a price floor test by
the commission to ensure that the service is not priced below the total service
long run incremental cost of providing the service, without regard to whether
the service is considered essential or nonessential.
(6) A telecommunications carrier that elects to be subject
to this section and ORS 759.405 may package and offer any of its retail
telecommunications services with any other service at any price, provided the
following conditions apply:
(a) Any regulated telecommunications service may be
purchased separately at or below the maximum price.
(b) The price of the package is not less than the sum of
the price floors of each regulated retail telecommunications service included
in the package.
(c) The price of a package that is comprised entirely of
regulated retail telecommunications services does not exceed the sum of the
maximum prices for each of the services.
(d) The price of a package comprised of regulated and
unregulated retail telecommunications services does not exceed the sum of the
maximum prices established under this section for regulated services and the
retail price charged by the carrier for the individual unregulated services in
the package. A telecommunications carrier subject to regulation under this
section shall provide notice to the commission within 30 days of a change in
the price of an unregulated telecommunications service contained in the
package.
(7) Nothing in this section or ORS 759.405 is intended to
limit the ability of a telecommunications carrier to seek deregulation of
telecommunications services under ORS 759.030.
(8)(a) Notice of a price change authorized under subsection
(4) of this section, of the introduction of a new regulated telecommunications
service or of the packaging of services, must be given to the commission within
30 days following the effective date of the price change, new service or
packaged service. Notice of a new regulated telecommunications service shall
indicate the retail price charged by the carrier for the service.
(b) The commission may investigate any price change
authorized under subsection (4) of this section, the price of a new regulated
telecommunications service or the price of a package of services to determine
that the price complies with the provisions of this section and any other
applicable law. If the commission determines that the price of the service or
package of services does not comply with the provisions of this section or
other applicable law, the commission may order the telecommunications carrier
to take such action as the commission determines necessary to bring the price
into compliance with this section or other applicable law.
(9) Nothing in this section affects the authority of a city
or municipality to manage the public rights of way or to require fair and
reasonable compensation from a telecommunications carrier, on a competitively
neutral and nondiscriminatory basis, under ORS 221.420, 221.450, 221.510 and
221.515.
(10) Notwithstanding
any other provision of this section, the commission shall establish prices for
extended area service in a manner that allows a telecommunications carrier that
elects to be subject to this section and ORS 759.405 to recover all costs and
lost net revenues attributable to implementing new extended area service
routes. The provisions of this subsection apply to telecommunications service
provided on a flat or measured basis between exchanges defined by exchange maps
filed with and approved by the commission.
SECTION 2.
The amendments to ORS 759.410 by section
1 of this 2001 Act apply to all telecommunications carriers that elect to be
subject to ORS 759.405 and 759.410, whether they make that election before, on
or after the effective date of this 2001 Act.
SECTION 3.
ORS 759.425 is amended to read:
759.425. (1) Within 12 months following September 1, 1999,
the Public Utility Commission shall establish and implement a competitively
neutral and nondiscriminatory universal service fund to ensure basic telephone
service is available at a reasonable and affordable rate. The universal service
fund shall conform to section 254 of the federal Telecommunications Act of 1996
(Public Law 104-104). 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) The Public Utility Commission shall establish a
benchmark for basic telephone service as necessary for the administration and
distribution of the universal service fund. 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, 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) 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) 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.
(4) Except as provided in subsections (6) and (7) of this
section, there is imposed on the sale of all retail telecommunications services
sold in this state a universal service surcharge. The surcharge shall be
established by the commission as 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 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) 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.
(7)(a) Notwithstanding subsection (6) 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.
(8) 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 4.
The amendments to ORS 759.425 by section
3 of this 2001 Act apply to universal service surcharges imposed on pay
telephone service provided on or after July 1, 2003.
SECTION 5.
The Public Utility Commission may take
action before the operative date of the amendments to ORS 759.425 by section 3
of this 2001 Act to adopt rules for the administration of the refund program
required by the amendments to ORS 759.425 by section 3 of this 2001 Act.
SECTION 6.
The amendments to ORS 759.425 by section
3 of this 2001 Act become operative on July 1, 2003.
SECTION 7.
ORS 759.445 is amended to read:
759.445. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Connecting Oregon Communities
Fund. Moneys in the fund shall consist of amounts deposited in the fund under
ORS 759.405 and any other moneys
deposited by a telecommunications carrier that elects to be subject to ORS
759.405 and 759.410, including amounts deposited pursuant to a performance
assurance plan implemented by a telecommunications carrier in connection with
an application under 47 U.S.C. 271, as in effect on the effective date of this
2001 Act. Interest earned on moneys in the fund shall accrue to the fund.
Moneys in the fund may be invested as provided in ORS 293.701 to 293.820.
Moneys in the fund shall be used to provide access to advanced
telecommunications technology in elementary schools and high schools, colleges
and universities, community colleges, public television corporations, rural
health care providers, public libraries and other eligible persons.
(2) Two dedicated accounts shall be established within the
Connecting Oregon Communities Fund for purposes of supporting education and
public access to advanced telecommunications services. The first $25 million of
the moneys deposited in the Connecting Oregon Communities Fund in both 2000 and
2001 shall be appropriated to the School Technology Account established under
subsection (3) of this section. Except
as provided in subsection (8) of this section, any additional moneys
available in the fund shall be appropriated to the Public Access Account
established under subsection (4) of this section.
(3) There is established the School Technology Account
within the Connecting Oregon Communities Fund. The purpose of the School
Technology Account is to improve access to advanced telecommunications services
for students attending public school in kindergarten through grade 12. Moneys
in the account shall be expended as provided in section 34, chapter 1093,
Oregon Laws 1999.
(4)(a) There is established the Public Access Account
within the Connecting Oregon Communities Fund. The purpose of the Public Access
Account is to improve access to advanced telecommunications services for
community colleges, universities, public libraries and rural health care
providers.
(b) If funding has not been provided from other sources,
the first $3 million available in the Public Access Account shall be
transferred to the Department of Higher Education for the purpose of funding
the Oregon Wide Area Network project to provide and expand Internet access for
the State System of Higher Education. The Department of Higher Education shall
complete an audit of bandwidth utilization and report to the Joint Legislative
Committee on Information Management and Technology during the Seventy-first
Legislative Assembly in the manner provided in ORS 192.245.
(c) Following the transfer of funds described in paragraph
(b) of this subsection, the next $1 million available in the Public Access
Account shall be transferred to the Department of Higher Education for Oregon
State University for the purpose of providing virtual access to persons with
disabilities.
(d) Following the transfer of funds as described in
paragraphs (b) and (c) of this subsection, the next $2 million available in the
Public Access Account shall be transferred to the Department of Community
Colleges and Workforce Development for distribution to community colleges for
the purpose of developing connectivity and distance education programs.
(e) Following the transfer of funds described in paragraphs
(b) to (d) of this subsection, the next $4 million available in the Public
Access Account shall be transferred to the Department of Higher Education for
video transport and network management services for the Oregon university
system.
(f) Following the transfer of funds described in paragraphs
(b) to (e) of this subsection, the next $5.5 million available in the Public
Access Account shall be transferred to the Oregon Public Broadcasting
Corporation for the purpose of digitizing the state television network, using
the Oregon Enterprise Network when possible.
(g) Following the transfer of funds described in paragraphs
(b) to (f) of this subsection, the next $500,000 available in the Public Access
Account shall be transferred to the Southern Oregon Public Television
Corporation for the purpose of digitizing the state television network, using
the Oregon Enterprise Network when possible.
(h) Following the transfer of funds described in paragraphs
(b) to (g) of this subsection, a state institution of higher education,
including the Oregon Health Sciences University, may apply for one-time matching
funds up to $1 million from the Public Access Account to endow a
telecommunications chair for the purpose of increasing research and development
of advanced telecommunications services applications. Only one chair may be
endowed under this paragraph.
(5)(a) The Oregon Economic and Community Development
Commission shall approve expenditure of any remaining moneys in the Public
Access Account consistent with this section and ORS 759.430.
(b) Community colleges, state institutions of higher
education, public libraries, public television corporations and rural health
care providers may apply to the Oregon Economic and Community Development
Commission for funding from the Public Access Account under this subsection.
(c) Funds received from the account shall be used for the
purchase of advanced telecommunications services, equipment or recurring costs
of telecommunications connectivity. Priority shall be given to collaborative
projects that improve access to advanced telecommunications services.
(d) Funds available in the Public Access Account under this
subsection are continuously appropriated to the Economic and Community
Development Department for the purposes described in this subsection.
(6) Public libraries and rural health care providers must
apply for federal universal service support in order to be eligible for a grant
from the Public Access Account.
(7) The video transport and network management services
purchased with funds made available under this section shall be purchased
through the Oregon Department of Administrative Services.
(8) Any moneys
deposited in the Connecting Oregon Communities Fund under subsection (1) of
this section pursuant to a performance assurance plan implemented by a
telecommunications carrier in connection with an application under 47 U.S.C.
271, as in effect on the effective date of this 2001 Act, shall be placed in
the School Technology Account to be expended as provided in section 34, chapter
1093, Oregon Laws 1999.
SECTION 8.
Section 34, chapter 1093, Oregon Laws 1999, is amended to read:
Sec. 34. (1) In
addition to and not in lieu of any other transfer or appropriation, for the
calendar year beginning January 1, 2000, there is transferred to the Department
of Education from the School Technology Account the sum of $9,600 for each
eligible school facility as defined in section 35 (1), [of this 1999 Act] chapter 1093, Oregon Laws 1999, which
shall be expended for the purpose of providing a local area network and
associated equipment to public school facilities pursuant to section 35, [of
this 1999 Act] chapter 1093, Oregon
Laws 1999.
(2) In addition to and not in lieu of any other transfer or
appropriation, there is transferred to the Department of Education from the
School Technology Account, to be distributed to the Oregon Association of
Education Service Districts for the Oregon Public Education Network, for:
(a) The recurring costs of Internet bandwidth:
(A) $500,000 for the calendar year beginning January 1,
2000; and
(B) $1 million for the calendar year beginning January 1,
2001.
(b) The purchase of telecommunications equipment:
(A) $250,000 for the calendar year beginning January 1,
2000; and
(B) $250,000 for the calendar year beginning January 1,
2001.
(c) The purpose of an on-line film and video server pilot
project to digitize and electronically distribute video content, $250,000 for
the calendar year beginning January 1, 2000.
(3) In addition to and not in lieu of any other transfer or
appropriation, for the calendar years beginning January 1, 2000, and January 1,
2001, there is transferred to the Department of Education from the School
Technology Account the sum of $5,400 for each eligible school facility as
defined in section 36 (1), [of this 1999 Act] chapter 1093, Oregon Laws 1999, for the purpose of distribution to
school districts and education service districts pursuant to section 36, [of
this 1999 Act] chapter 1093, Oregon
Laws 1999, for the recurring costs of telecommunications connectivity.
(4)(a) In addition to and not in lieu of any other transfer
or appropriation, there is transferred to the Department of Education from the
School Technology Account for the purpose of purchasing a two-way interactive
distance education system for each public high school and education service
district:
(A) $3,050,000 for the calendar year beginning January 1,
2000; and
(B) $3,050,000 for the calendar year beginning January 1,
2001.
(b) The Department of Education, in consultation with the
Oregon Department of Administrative Services, shall develop an implementation
plan for this subsection. The implementation plan shall include an
implementation timeline and requirements for each public high school and
education service district that receives a two-way interactive distance
education system under this subsection. The Department of Education shall
ensure that a distance education system purchased by the Department of
Education meets State of Oregon information technology standards, is consistent
with any related interactive video strategy of the Oregon Department of
Administrative Services and is procured through a competitively bid or
negotiated state contract. The Department of Education shall reimburse the
Oregon Department of Administrative Services from funds made available under
this subsection for costs incurred by the Oregon Department of Administrative
Services in developing the implementation plan.
(5)(a) In addition to and not in lieu of any other transfer
or appropriation, there is transferred to the Department of Education from the
School Technology Account for the purpose of paying the recurring costs of
telecommunications connectivity and video services associated with the two-way
interactive distance education systems purchased with funds transferred under
this section:
(A) $550,000 for the calendar year beginning January 1,
2000; and
(B) $550,000 for the calendar year beginning January 1,
2001.
(b) Any telecommunications or video services purchased by
the Department of Education with funds transferred under this subsection shall
be purchased from the Oregon Department of Administrative Services as long as
such services are available through the Oregon Department of Administrative
Services at a comparable level and comparable cost as can be obtained
elsewhere. Purchase of services and technology from the Oregon Department of
Administrative Services shall be through the Oregon Enterprise Network provided
the Oregon Enterprise Network can provide the services and technology at a cost
equal to or less than the price for the same or similar services and technology
from other contracts or programs of the Oregon Department of Administrative
Services. The Department of Education shall ensure that telecommunications and
video services purchased by the Department of Education meet State of Oregon
information technology standards, are consistent with any related interactive
video strategy of the Oregon Department of Administrative Services and are
purchased through a competitively bid or negotiated state contract.
(c) Upon request of the North Central, Malheur, Jackson or
Northwest Region education service district, the Department of Education may
waive the requirements of paragraph (b) of this subsection until such time as
the district changes its systems to use the services available through the
Oregon Department of Administrative Services, as determined by the
implementation plan established under subsection (4)(b) of this section.
(d) Upon request of a school district or education service
district, the Oregon Department of Administrative Services may waive the
requirements of paragraph (b) of this subsection if a state contract is not
available for use by the district.
(6)(a) In addition to and not in lieu of any other transfer
or appropriation, there is transferred to the Oregon Department of
Administrative Services from the School Technology Account for the purchase of
hub equipment necessary to support public school needs for two-way interactive
video system bridging and other services:
(A) $700,000 for the calendar year beginning January 1,
2000; and
(B) $700,000 for the calendar year beginning January 1,
2001.
(b) The Oregon Department of Administrative Services shall
reduce rates paid by school districts and education service districts to the
department for video services by the amount transferred under this subsection.
(7) In addition to and not in lieu of any other transfer or
appropriation, there is transferred to the Department of Education [for the calendar year beginning January 1,
2000, and the calendar year beginning January 1, 2001, from the School
Technology Account,] any amounts remaining in the account after the
transfers described in subsections (1) to (6) of this section are made, which
shall be distributed to school districts pursuant to section 37, [of
this 1999 Act] chapter 1093, Oregon
Laws 1999.
(8) Amounts described in this section shall be transferred
each year only when sufficient funds are available in the School Technology
Account.
SECTION 9.
Section 37, chapter 1093, Oregon Laws 1999, is amended to read:
Sec. 37. (1) As
used in this section:
(a) “ADMw” means the weighted average daily membership of
the school district for the prior fiscal year as calculated under ORS 327.013.
(b) “Statewide ADMw” means the total ADMw of all school
districts for the prior fiscal year as calculated under ORS 327.013.
(2) [During the
calendar years beginning January 1, 2000, and January 1, 2001,] The
Department of Education shall distribute grants from amounts transferred under
section 34 (7), [of this 1999 Act] chapter 1093, Oregon Laws 1999, to school districts.
(3) Except as provided in subsection (4) of this section, a
school district's grant under this section = the school district's ADMw ´ (the total amount transferred to the
department for the grants under section 34 (7), [of this 1999 Act] chapter 1093, Oregon Laws 1999 ¸ the total statewide ADMw).
(4) A school district's grant under this section shall not
be less than $25,000.
(5) A school district that receives grant funds under this
section shall use those funds to support telecommunications connectivity
including:
(a) Building wiring and electrical power requirements;
(b) Servers, hubs and routers;
(c) Network design and installation;
(d) Video distance education equipment;
(e) Technology support staff salaries; and
(f) Other costs necessary to support telecommunications
connectivity.
(6) A school district may not use grant funds received
under this section for payment of debt service on bonds.
(7) The State Board of Education may adopt any rules
necessary for the administration of this section.
Approved by the Governor
August 15, 2001
Filed in the office of
Secretary of State August 16, 2001
Effective date January 1,
2002
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