SECONDREGULARSESSION
HOUSEBILLNO.2514
101STGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVERIGGS.
5307H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection392.248,RSMo,andtoenactinlieuthereofonenewsectionrelatingtothe
universalserviceboard.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section392.248,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection392.248,toreadasfollows:
392.248.1.Inordertoensurejust,reasonable,andaffordableratesforreasonably
2comparableessentiallocaltelecommunicationsservicesthroughoutthestate,thereishereby
3establishedthe"UniversalServiceBoard"whichshallconsistofthemembersofthepublic
4servicecommissionandthepubliccounsel,andwhichshallbeincorporatedasanot-for-
5profit,publicbenefitcorporationinthemannerprovidedpursuanttochapter355,exceptas
6otherwiseprovidedinthissection.Consistentwithrulesadoptedbythecommission,the
7universalserviceboardshallcreateauniversalservicefund.Theuniversalserviceboard
8shallsupervisethemanagementoftheuniversalservicefund.Fundsdepositedinthe
9universalservicefundarenotstatefunds.Thecommissionshalladoptrulesgoverningthe
10operationsofthestateuniversalservicefundwithinthreemonthsoftheadoptionoftherules
11adoptedbytheFederalCommunicationCommissionforthefederalUniversalServiceFund.
12Nothingintherulesadoptedbythecommissionshallbeinconsistentwiththesupport
13mechanismsestablishedforthefederalUniversalServiceFund,butthecommissionmay
14adoptanyadditionaldefinitionsandstandardsitbelievesarenecessarytopreserveand
15advanceuniversalserviceinthestateofMissouri.Thecommissionshalladoptrules
16governingtheoperationsoftheuniversalservicefundandtheoperationoftheuniversal
17serviceboard.Meetingsoftheuniversalserviceboardshallbeopenmeetingspursuantto
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18chapter610.Theuniversalserviceboardshallalsoretainanindependentneutralfund
19administratorwhowillberesponsiblefortheday-to-dayoperationsoftheuniversalservice
20fund.Thefundadministratorshallbeafiduciarywithtrustcompanypowers.Theuniversal
21serviceboardshallprovideforperiodicreviewofthefundadministratorandtheopportunity
22forselectionofanalternatefundadministratornolessfrequentlythaneveryfouryears.The
23agency,individual,firm,partnership,orcorporationthatisselectedbythecommissionasthe
24neutraladministratoroftheuniversalservicefundmayneithercontributetonorreceive
25disbursementsfromtheuniversalservicefund,exceptasprovidedinsubsection2ofthis
26section.Theadministratormaynothaveanyfinancialinterestinatelecommunications
27company,asdefinedinsection386.020.Thecommissionshallcausethebooksandrecords
28oftheuniversalservicefundadministratortobeindependentlyauditedonanannualbasis.
29Theindependentauditshallbepaidforfromfundsheldintheuniversalservicefund.
30 2.Thecommissionshalladoptandenforcerulestobeimplementedbytheuniversal
31serviceboard,governingthesystemoffundinganddisbursingfundsfromtheuniversal
32servicefundinamannerthatdoesnotgrantapreferenceorcompetitiveadvantagetoany
33telecommunicationscompanyorsubjectatelecommunicationscompanytoprejudiceor
34disadvantage.Fundsfromtheuniversalservicefundshallonlybeused:
35 (1)Toensuretheprovisionofreasonablycomparableessentiallocal
36telecommunicationsservice,asthatdefinitionmaybeupdatedbythecommissionbyrule,
37throughoutthestateincludinghigh-costareas,atjust,reasonableandaffordablerates;
38 (2)Toassistlow-incomecustomersanddisabledcustomersinobtainingaffordable
39essentialtelecommunicationsservicesorbroadbandinternetaccessservice.Forthe
40purposesofthissection,"broadbandinternetaccessservice"isdefinedasaretail
41servicethatenablesuserstoconnecttotheinternettoaccesscontent,information,or
42otherservicesatspeedsofatleasttwenty-fivemegabitsperseconddownloadandthree
43megabitspersecondupload; and
44 (3)Topaythereasonable,auditedcostsofadministeringtheuniversalservicefund.
45 3.Theuniversalservicefundshallbefundedthroughassessmentsonall
46telecommunicationscompaniesinthestatewhichshallbebasedonMissourijurisdictional
47telecommunicationsservicesrevenueandothernondiscriminatoryfactorsasdeterminedby
48thecommission.Suchassessmentsshallbepaidtotheuniversalserviceboard.A
49telecommunicationscompanyregulatedundersection392.245may,uponprovidingwritten
50noticetothecommission,increasethemaximumallowablepricesforanyorallofits
51telecommunicationsservicesexceptresidentialbasiclocaltelecommunicationsservices
52abovethosemaximumallowablepricesotherwiseestablishedinsection392.245byan
53amountnottoexceedtheamountrequiredtorecoverfiftypercentofitsassessmentunderthis
54section.Anyincreasesinthemaximumallowablepricesforexchangeaccessandbasiclocal
HB2514 2 55telecommunicationsservicesotherthanresidentialbasiclocaltelecommunicationsservices
56shallbecalculatedtorecoverrevenuesinthesamepercentageastherevenuesfromsuch
57servicesbeartosuchcompany'stotalrevenuesfornonbasic,exchangeaccessandbasiclocal
58otherthanresidentialtelecommunicationsservicesfortheprecedingtwelvemonths.A
59telecommunicationscompanyregulatedundersection392.245mayseektohavethe
60remainingfiftypercentofitsassessmentunderthissectionincludedinitsfunding
61requirementsunderthissection.Thecommissionshallestablishtheleveloftheuniversal
62servicefundfundingrequirementnecessarytofundthepurposessetforthinsubsection2of
63thissection.Theuniversalservicefundfundingrequirementsshallbepaidbytheuniversal
64serviceboardinaccordancewithproceduresapprovedbythecommission.A
65telecommunicationscompanythatfailstopayanassessmentthatisdueandpayable
66pursuanttothissectionmayhaveitscertificaterevokedorberequiredtopayappropriate
67penaltiesunderchapter386afternoticeandhearing.
68 4.Tofacilitateprovisionofessentiallocaltelecommunicationsservice,the
69commissionshalldeterminewhetherandtowhatextentanytelecommunicationscompany
70inthestateprovidingessentiallocaltelecommunicationsserviceinanypartofthestate,shall
71beeligibletoreceivefunding.Eligibilityshallbedeterminedasfollows:
72 (1)Atelecommunicationscompany'seligibilitytoreceivesupportforhigh-costareas
73fromtheuniversalservicefundshallbeconditionedupon:
74 (a)Thetelecommunicationscompanyofferingessentiallocaltelecommunications
75service,usingitsownfacilities,inwholeorinpart,throughoutanentirehigh-costareaand
76havingcarrieroflastresortobligationsinthathigh-costarea;and
77 (b)Thetelecommunicationscompanychargingaratenotinexcessofthatsetbythe
78commissionforessentialservicesinaparticulargeographicarea;and
79 (2)Atelecommunicationscompany'seligibilitytoreceivesupporttoassistlow-
80incomecustomersanddisabledcustomersshallbeconditionedonthecompany'sproviding
81essentiallocaltelecommunicationsservicesorbroadbandinternetaccessservice,orboth,
82tosuchcustomerspursuanttothediscountedrateestablishedbythecommissionforsuch
83customers.Distributionsfromtheuniversalservicefundshallbemadebytheuniversal
84serviceboardinaccordancewithrulesapprovedbythecommission.
85 5.Inlocalexchangeareassubjecttocompetitionforessentiallocal
86telecommunicationsservice,theincumbentlocalexchangetelecommunicationscompany
87shallbedesignatedasacarrieroflastresortforessentiallocaltelecommunicationsservice.
88Thecommissionmay,consistentwithsection214(e)(2)ofthefederalTelecommunications
89Actof1996,afternoticeandhearing,designateoneormoreadditionalcarriersoflastresort
90foranyexchangeorotherareadesignatedbythecommissionuponafindingthatsuch
91designationisinthepublicinterest.Inexchangeswherethecommissionhasdesignatedmore
HB2514 3 92thanonecarrieroflastresort,thecommissionmaypermitalocalexchange
93telecommunicationscompanytorelinquishsuchobligation,consistentwithsection214(e)
94(4)ofthefederalTelecommunicationsActof1996,uponafindingthatatleastonecarrierof
95lastresortwillcontinuetoservethatarea.Inlocalexchangeareasnotsubjecttocompetition
96foressentiallocaltelecommunicationsservice,theincumbentlocalexchange
97telecommunicationscompanyshallcontinuetoactasthecarrieroflastresort.
98 6.Indeterminingwhether,andtowhatextent,universalservicefundfundingis
99requiredtofacilitateprovisionofessentiallocaltelecommunicationsservice,thecommission
100shall:
101 (1)Determinethedefinitionofessentiallocaltelecommunicationsservicenolater
102thanthreemonthsaftertheadoptionoftheessentiallocalexchangetelecommunications
103servicedefinitionforthefederalUniversalServiceFund,andconsiderrevisionofthe
104definitiononaperiodicbasisnottoexceedeverythreeyearsthereafter,withthegoalthat
105everycitizenofthisstateshallhaveaccesstoawiderrangeofservices,thatarereasonably
106comparablebetweenurbanandruralareas,atratesthatarereasonablycomparablebetween
107urbanandruralareas;
108 (2)Uponrequestfromaneligibletelecommunicationscompanyforassistancefrom
109theuniversalservicefundforahigh-costarea,determineifthehigh-costareaqualifiesfor
110assistancefromtheuniversalservicefund.Thecommissionshallreviewitsdetermination
111thatahigh-costareaqualifiesforassistancefromtheuniversalservicefundnolessfrequently
112thanonceeveryfiveyears;
113 (3)Determineforeachrequesting,eligiblelocalexchangetelecommunications
114company,byhigh-costarea,thecostsofprovidingessentiallocaltelecommunications
115servicesinthosehigh-costareasandestablishsupportpaymentsnecessarytosuchcompanies
116toensurejust,reasonableandaffordableratesforessentialtelecommunicationsservice.The
117commissionshallreviewsuchsupportpaymentsnolessfrequentlythanonceeveryfive
118years;provided,however,thatifthecommissionadoptsadifferentdefinitionofessential
119localtelecommunicationsservice,pursuanttosubdivision(1)ofthissubsection,thenthe
120commissionshallreviewandadjustaccordinglythepreviouslyauthorizedsupportpayments
121inordertoensurejust,reasonableandaffordableratesforessentialtelecommunications
122service,asrevisedbycommissionrule.Indeterminingandreviewingsuchsupportpayments,
123thecommissionshallensurethatnotelecommunicationscompanyreceivesmoreorless
124supportthannecessarytofurtherthepurposesestablishedinsubsection2ofthissection;
125 (4)Establishastandardtodeterminewhetherandtowhatextentparticularend-user
126customers,withoutregardtolocationwithinthestate,maybeeligibleforassistanceinpaying
127foressentiallocaltelecommunicationsserviceorbroadbandinternetaccessservice.
HB2514 4 128 7.Thecommissionshallarrangeforthetimeandplacefortheinitialorganizational
129meetingoftheuniversalserviceboard.
130 8.Theuniversalserviceboardshallsubmittothecommissionaplanofoperation.
131Afternoticeandhearing,thecommissionshallapprovetheplanofoperation,providedthatit
132doesnotgrantapreferenceorcompetitiveadvantagetoanytelecommunicationscompanyor
133subjectatelecommunicationscompanytoprejudiceordisadvantage.Initsplan,theuniversal
134serviceboardshallestablishproceduresforthehandlingandaccountingofassetsand
135establishproceduresforthecollectionofassessmentsfromalltelecommunicationscompanies
136toprovideforuniversalservicepaymentsandforadministrativeexpenses.
137 9.Theuniversalserviceboardshallhaveauthorityto:
138 (1)Enterintocontractsasarenecessaryorpropertocarryouttheprovisionsofthis
139section;and
140 (2)Sueorbesued,includingtakinganylegalactionsnecessaryorproperfor
141recoveryofanyassessments.
142 10.Nomemberoftheuniversalserviceboardshallbecivillyliable,eitherjointlyor
143separately,asaresultofanyact,omissionordecisioninperformanceofthemember'sduties
144asspecificallyrequiredbythissection.Suchimmunityshallnotattachforanyintentionalor
145recklessactaffectingthepropertyorrightsofanyperson.
146 11.Nothinginthissectionshallrequirethecommission,theuniversalserviceboard,
147theuniversalservicefundadministrator,oranyotherpersonoragencytotakeanyactionsthat
148areinconsistentwithfederalstatutes,administrativerules,orcourtdecisionsconcerning
149provisionofessentiallocaltelecommunicationsservice.
150 12.Thecommissionandtheuniversalserviceboardmaydoallthingsnecessaryand
151convenienttoimplementandadministertheuniversalservicefund.
152 13.IntheeventofaFederalCommunicationsCommissionorder,ruleorpolicy
153announcednolaterthanDecember31,1997,pursuanttosection254(a)(2)ofthefederal
154TelecommunicationsActof1996,theeffectofwhichistochangethefederalUniversal
155ServiceFundrevenuesofanincumbentlocalexchangetelecommunicationscompany,the
156commissionshalleitherincreasethemaximumallowablepricesforbasiclocal
157telecommunicationsserviceorincreasethecompany'srecoveryfromthestateuniversal
158servicefundoracombinationthereoftoreplacethereasonablyprojectedchangeinrevenues.
159Thecommissionshallreviewthecontinuingneedforsuchrevenuesinitsperiodicreviews
160pursuanttosubdivision(3)ofsubsection6ofthissection.
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