Chapter 353
AN ACT
SB 894
Relating to the universal service fund; 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 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 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) 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. Unless otherwise provided by the Public Utility Commission by
rule, 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 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) 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.
Approved by the Governor June 11, 2007
Filed in the office of Secretary of State June 13, 2007
Effective date January 1, 2008
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