73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 1192
Senate Bill 14
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Joint Legislative Committee
on Information Management and Technology for Oregon
Telecommunications Coordinating Council)
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.
Allows moneys generated by universal service surcharge to be
used to ensure that broadband services are available at
reasonable and affordable rate.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to broadband services; creating new provisions; amending
ORS 759.425; and declaring an emergency.
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
universal service fund shall be used by the commission + } 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)
{ + and (8) + } 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 { - , - } { + is + } separate and
distinct from the General Fund. The fund { - shall consist - }
{ + consists + } of all universal service surcharge moneys
collected by telecommunications carriers and paid into the fund.
The fund { - shall - } { + may + } be used only for the
{ - purpose - } { + purposes + } 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 commission to ensure that broadband services are
available at a reasonable and affordable rate. + }
{ - (6) - } { + (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.
{ - (7)(a) - } { + (8)(a) + } Notwithstanding subsection
{ - (6) - } { + (7) + } of this section, a person who
primarily provides radio communications service, radio paging
service, commercial mobile radio service, personal communications
service { + , broadband services + } 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 { + , broadband
services + } 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 { + , broadband services + } 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) - } { + (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 2005 Act apply to all moneys in the universal service fund,
whether deposited before, on or after the effective date of this
2005 Act. + }
SECTION 3. { + This 2005 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2005 Act takes effect on its
passage. + }
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