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SENATE FLOOR VERSION
April 8, 2021
ENGROSSED HOUSE
BILL NO. 2090 By: McCall of the House
and
Leewright of the Senate
An Act relating to telecommunications; amending 17
O.S. 2011, Section 139.102, as last amended by
Section 3, Chapter 270, O.S.L. 2016 (17 O.S. Supp.
2020, Section 139.102), which relates to the Oklahoma
Telecommunications Act of 1997; modifying
definitions; defining terms; amending Section 3,
Chapter 165, O.S.L. 2020, as amended by Section 1,
Chapter 167, O.S.L. 2020 (17 O.S. Supp. 2020, Section
139.202), which rela tes to the Rural Broadband
Expansion Council; expanding number of Council
members; modifying qualification of certain
appointment; adding appointees with certain
expertise; allowing legislators to have chair or co-
chair position; requiring Council to devel op
guidelines for broadband incentive awards by certain
date; requiring submission of guidelines to certain
members of the Oklahoma Legislature; stating content
guidelines shall encompass; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE S TATE OF OKLAHOMA:
SECTION 1. AMENDATORY 17 O.S. 2011, Section 139.102, as
last amended by Section 3, Chapter 270, O.S.L. 2016 (17 O.S. Supp.
2020, Section 139.102), is amende d to read as follows:
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Section 139.102. As used in the Oklahoma Telecommunications Act
of 1997:
1. "Access line" means the facilities provided and maintained
by a telecommunications service provider which permit access to or
from the public switched netwo rk or its functional equivalent
regardless of the technol ogy or medium used;
2. "Administrative process" means an administrative application
process which allows eligible local exchange telecommunications
providers and eligible providers to request fundin g and an
administrative submission process that allows Ok lahoma Universal
Service Fund Beneficiaries to submit a preapproval request directly
with the Administrator. Both of the administrative processes shall
not require an order from the Commission to de termine eligibility
for, allocate or disburse funds unles s a request for reconsideration
is filed;
3. "Administrator" means the Director of the Public Utility
Division of the Corporation Commission;
4. "Broadband", as used in Section 139.202 of this titl e, means
those services and underlying facilities that pr ovide access to and
from the Internet of continuous speeds of at least twenty -five (25)
megabits per second (Mbps) downstream, from the provider to the
customer, and continuous speeds of at least thr ee (3) megabits per
second (Mbps) upstream, from the cust omer to the provider, using
fixed, terrestrial facilities, including, but not limited to,
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wireless, copper wire, fiber optic cable, or coaxial cable, to
provide such service. The minimum Internet sp eeds listed in this
paragraph shall be subject to change or update when, or if, the
Federal Communications Commission makes new rulings related to its
definition of broadband;
5. "Commission" means the Corporation Commission of this state;
5. 6. "Competitive local exchange carrier" or "CLEC" means,
with respect to an area or exchange, a telecommunications service
provider that is certificated by the Commission to provide local
exchange services in that area or exchange within the state after
July 1, 1995;
6. 7. "Competitively neutral" means not advantaging or favoring
one person or technology over another;
7. 8. "Consortium" means, as used in Section 6 139.109.1 of
this act title, two or more Oklahoma Universal Service Fund
Beneficiaries that choose to r equest support under the Federal
Universal Service Suppor t Mechanism or successor program or programs
as a single entity;
8. 9. "Contributing providers" means providers, including but
not limited to providers of intrastate telecommunications, providers
of intrastate telecommunications for a fee on a non -common-carrier
basis, providers of wireless telephone service and providers of
interconnected Voice over Internet Protocol (VoIP). Contributing
providers shall contribute to the Oklahoma Universal Service Fund
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and Oklahoma Lifeline Fund. VoIP providers shall be assessed only
as provided for in the decision of the Federal Communications
Commission, FCC 10-185, released November 5, 2010, or such other
assessment methodology that is not inconsistent with fede ral law.
Entities exempt from contributing to the Federa l Universal Service
Support Mechanisms are also exempt from contributing to the Oklahoma
Universal Service Fund and Oklahoma Lifeline Fund consistent with 47
C.F.R., Section 54.706(d). The term "con tributing providers" may be
modified to conform to the de finition of contributors as defined by
the FCC if adopted by the Commission, after notice and hearing;
9. 10. "Eligible entity" means any terrestrial Internet service
provider willing to go into uns erved or underserved areas, as
determined by the Broadban d Expansion Council mapping. The eligible
entity shall provide at least the minimum broadband speeds pursuant
to paragraph 4 of this section ;
11. "Eligible healthcare health care entity" means a not-for-
profit hospital, county health department, city -county health
department, not-for-profit mental health and substance abuse
facility or Federally Qualified Health Center in Oklahoma. Eligible
healthcare health care entity shall also include telemedic ine
services provided by the Oklahoma Department of Corre ctions at
facilities identified in Section 509 of Title 57 of the Oklahoma
Statutes;
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10. 12. "Eligible local exchange telecommunications service
provider" means ILEC, CLEC and commercial radio mobil e service
provider as those terms are used in the Oklahom a Telecommunications
Act of 1997;
11. 13. "Eligible provider" means, for purposes of Special
Universal Services, providers of telecommunications services which
hold a certificate of convenience and necessity and OneNet;
12. 14. "End User Common Line Char ge" means the flat-rate
monthly interstate access charge required by the Federal
Communications Commission that contributes to the cost of local
service;
13. 15. "Enhanced service" means a service t hat is delivered
over communications transmission facilit ies and that uses computer
processing applications to:
a. change the content, format, code, or protocol of
transmitted information,
b. provide the customer new or restructured information,
or
c. involve end-user interaction with information stored
in a computer;
14. 16. "Exchange" means a geographic area established by an
incumbent local exchange telecommunications provider as filed with
or approved by the Commission for the administration of local
telecommunications service in a specified area which usual ly
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embraces a city, town, or village and its environs and which may
consist of one or more central offices together with associated
plant used in furnishing telecommunications service in that area;
15. 17. "Facilities" means all the plant and equipment of a
telecommunications service provider, including all tangible and
intangible real and personal property without limitation, and any
and all means and instrumentalities in any manner owned, operated,
leased, licensed, used, controlled, furnished, or suppli ed for, by,
or in connection with the business of any telecommunications service
provider;
16. 18. "Federally Qualified Health Center" or "(FQHC)" means
an entity which:
a. is receiving a grant unde r Section 330 of the Public
Health Service (PHS) Act, 42 U.S.C., Section 254b, or
is receiving funding from a grant under a contract
with the recipient of such a grant and meets the
requirements to receive a grant under Section 330 of
the PHS Act,
b. based on the recommendation of the Health Resources
and Services Administration within the Public Health
Service, is determined by the Secretary of the
Department of Health and Human Services to meet the
requirements for receiving a grant as described in
subparagraph a of this paragraph,
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c. was treated by the Secreta ry of the Department of
Health and Human Services, for purposes of part B of
Section 330 of the PHS Act, as a comprehensive
federally funded health center as of January 1, 1990,
or
d. is an outpatient health program or facility operated
by a tribe or tribal organization under the Indian
Self-Determination Act, 25 U.S.C., Section 450f et
seq., or by an urban Indian organization receiving
funds under Title V of the Indian Health Care
Improvement Act, 25 U.S.C., Section 1651 et seq.;
17. 19. "Federal Universal Service Support Mechanism" is the
support program established by the Telecommunications Act of 1996,
47 U.S.C., Section 254(h). The program includes support for
schools, libraries and healthcare health care providers;
18. 20. "Funding year" means, for purposes of administering the
Oklahoma Universal Service Fund, the period of July 1 through June
30;
19. 21. "High speed Internet access service" or "broadband
service" means, as used in Section 139.110 139.202 of this title,
those services and underlying facilities that provide upstream, from
customer to provider, or downstream, from provider to customer,
transmission to or from the Internet in excess of one hundred fifty
(150) kilobits per second or at a constant download speed of twenty -
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five (25) megabits per second (Mbps) and in excess of or at a
constant upload speed of three (3) megabits per second (Mbps) ,
regardless of the technology or medium used , including, but not
limited to, wireless, copp er wire, fiber optic cable, or coaxial
cable, to provide such service;
20. 22. "Hospital" means a healthcare health care entity that
has been granted a license as a hospital by the Oklahoma State
Department of Health for that particular location;
21. 23. "Incumbent local exchange telecommunications service
provider" or "ILEC" means, with respect to an area or exchanges, any
telecommunications service provider furnishing local exchange
service in such area or exchanges within this state on July 1, 1995,
pursuant to a certificate of convenience and necessity or
grandfathered authority;
22. 24. "Installation charge" means any charge for a
nonrecurring service charged by an eligible provider necessary to
initiate Special Universal Services. Installation char ges may not
exceed the cost which would be charged for in stallation, if the cost
were not being paid for by the OUSF;
23. 25. "Interexchange telecommunications carrier" or "IXC"
means any person, firm, partnership, corporation or other entity,
except an incumbent local exchange telecommunications service
provider, engaged in furnishing regulated interexchange
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telecommunications services under the jurisdiction of the
Commission;
24. 26. "Internet" means the international research -oriented
network comprised of business, government, academic and other
networks;
25. 27. "Local exchange telecommunications service" means a
regulated switched or dedicated telecommunications service which
originates and terminates within an exchange or an exchange service
territory. Local exchange telecommunications service may be
terminated by a telecommunications service provider other than the
telecommunications service provider on whose network the call
originated. The local exchange service territory defined in the
originating provider's tariff shall determine whether the call is
local exchange service;
26. 28. "Local exchange telecommunications service provider"
means a company holding a certificate of convenience and necessity
from the Commission to provide local exchange telecommunications
service;
27. 29. "Not-for-profit hospital" means:
a. a hospital located in this state which has been
licensed as a hospital at that location pursuant to
Section 1-701 et seq. of Title 63 of the Oklahoma
Statutes for the diagnosis, trea tment, or care of
patients in order to obtain medical car e, surgical
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care or obstetrical care and which is established as
exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
or
b. a hospital located i n this state which is licensed as
a hospital at that loca tion pursuant to Section 1 -701
et seq. of Title 63 of the Oklahoma Statutes and is
owned by a municipality, county, the state or a public
trust for the diagnosis, treatment, or care of
patients in order to obtain medical care, surgical
care, or obstetrical care;
28. 30. "Not-for-profit mental health and substance abuse
facility" means a facility, not for the sole purpose of
administration, which is operated by the Department of Mental Health
and Substance Abuse Services or a facility certified by the
Department of Mental Health and Substance Abuse Services as a
Community Mental Health Care Center, a Community -Based Structured
Crisis Center or a Community Comprehensive Addiction Recovery
Center;
29. 31. "Oklahoma High Cost Fund" means the fund established b y
the Commission in Cause Nos. PUD 950000117 and 950000119;
30. 32. "Oklahoma Lifeline Fund" or "(OLF)" means the fund
established and required to be implemented by the Commission
pursuant to Section 139.105 of this title;
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31. 33. "Oklahoma Universal Ser vice Fund" or "(OUSF)" means the
fund established and required to be implemented by the Commission
pursuant to Section 139.106 of this title;
32. 34. "Oklahoma Universal Service Fund Beneficiary" me ans an
entity eligible to receive Special Universal Servi ces support as
provided for in subsection A of Section 6 139.109.1 of this act
title;
33. 35. "Prediscount amount" means the total cost of Special
Universal Services, selected pursuant to the proced ures set out in
subparagraph paragraph 5 of subsection B of Section 6 139.109.1 of
this act title, before charges are reduced by federal or state
funding support. The prediscount amount shall not include fees or
taxes;
34. 36. "Person" means any individu al, partnership,
association, corporation, governmental e ntity, public or private
organization of any character, or any other entity;
35. 37. "Primary universal service" means an access line and
dial tone provided to the premises of residential or busines s
customers which provides access to other lines for the transmission
of two-way switched or dedicated communication in the local calling
area without additional, usage -sensitive charges, including:
a. a primary directory listing,
b. dual-tone multifrequency signaling,
c. access to operator services,
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d. access to directory assistance services,
e. access to telecommunications relay services for the
deaf or hard-of-hearing,
f. access to nine-one-one service where provided by a
local governmental authority or multijurisdictional
authority, and
g. access to interexchange long distance services;
36. 38. "Public library" means a library or library system that
is freely open to all persons under identical conditions and which
is supported in whole or in part by pu blic funds. Public library
shall not include libraries o perated as part of any university,
college, school museum, the Oklahoma Historical Society or county
law libraries;
37. 39. "Public school" means all free schools supported by
public taxation, and s hall include grades prekindergarten through
twelve and technology center schools that provide vocational and
technical instruction for high school students who attend the
technology center school on a tuition -free basis. Public school
shall not include pr ivate schools, home schools or virtual schools;
38. 40. "Regulated telecommunications service" means the
offering of telecommunications for a fee directly to the public
where the rates for such service are regulated by the Commission.
Regulated telecommunications service does not include the provision
of nontelecommunications services, including, but not limited to,
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the printing, distribution, or sale of advertising in telephone
directories, maintenance of inside wire, customer premises
equipment, and billing and collection service, nor does it include
the provision of wireless telephone service, enhanced service, and
other unregulated services, including services not under the
jurisdiction of the Commission, and services determined by the
Commission to be competitive;
41. "Served area" means an area or region with access to
broadband at or above a defined transmission speed threshold as
described in paragraph 4 of this section;
39. 42. "Special Universal Services" means the
telecommunications services su pported by the OUSF which are
furnished to public schools , public libraries and eligible health
care entities as provided for in Section 6 139.109.1 of this act
title;
40. 43. "Tariff" means all or any part of the body of rates,
tolls, charges, classifica tions, and terms and conditions of service
relating to regulated services offered, the conditions under which
offered, and the charges therefor, which have been filed with the
Commission and have become effective;
41. 44. "Telecommunications" means the tr ansmission, between or
among points specified by the user , of information of the user's
choosing, without change in the form or content of the information
as sent and received;
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42. 45. "Telecommunications carrier" means a person that
provides telecommunic ations service in this state;
43. 46. "Telecommunications service" means the offering of
telecommunications for a fee;
44. 47. "Telemedicine service" means the practice of health
care delivery, diagnosis, consultation and treatment, including but
not limited to the transfer of medical data or exchange of medic al
education information by means of audio, video or data
communications. Telemedicine service shall not mean a consultation
provided by telephone or facsimile machine;
45. 48. "Underserved area" m eans an area or region that has
Internet service at speed s higher than those that meet the
definition of an unserved area, but lower than those service speeds
of high-speed Internet;
49. "Universal service area" has the same meaning as the term
"service area" as defined in 47 U.S.C., Section 214(e)(5);
46. 50. "Unserved area" means an area or region in which there
is not at least one provider of terrestrial broadband service that
is either:
a. offering a connection to the Internet, or
b. required, under the terms of the Federal Universal
Service Fund or other federal or state grant, to
provide a connection to the Internet;
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51. "WAN" means a wide-area network that exists over a large -
scale geographical area. A WAN connects different smaller networks,
including local area networks and metro area networks, which ensures
that computers and users in one location can communicate with
computers and users in other locations;
47. 52. "Wire center" means a geographic area normally served
by a central office; and
48. 53. "Wireless Internet service provider" or "WISP", as used
in Section 2 of this act, means a fixed wireless access provider
that uses point-to-point microwave or millimeter -wave links between
its towers for coverage extension and backhaul and point-to-
multipoint links from the towers to the customer premis es; and
54. "Wireless telephone service" means radio communication
service carried on between mobile stations or receivers and land
stations and by mobile stations communicating among themselves and
which permits a user generally to receive a call that or iginates or
terminates on the public switched network or its functional
equivalent regardless of the radio frequencies used.
SECTION 2. AMENDATORY Section 3, Chapter 165, O. S.L.
2020, as amended by Section 1, Chapter 167, O.S.L. 2 020 (17 O.S.
Supp. 2020, Section 139.202), is amended to read as follows:
Section 139.202. A. There is hereby created the Rural
Broadband Expansion Council.
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B. The Council shall consist of fourteen (14) sixteen (16)
persons to be selected as follows:
1. Three members shall be appointed by the Governor, one of
whom shall be a government official who has knowledge of and
experience with the technology assets and operations of the Oklahoma
Department of Transportation, OneNet and the Oklahoma Office of
Management and Enterprise Services and who is not and has not been
previously employed by OneNet, one of whom shall be a past or
present mayor of a municipality having a population of less than
twenty-five thousand (25,000) persons according to the latest
Federal Decennial Census or most recent population estimate and
which is not part of either the Oklahoma City or Tulsa Metropolitan
Statistical Area Areas, and one of whom shall be a representative of
a wireless telecommunications provider with operations in O klahoma
and at least twenty-four other states;
2. Four Five members shall be appointed by the Speaker of the
Oklahoma House of Representatives, one of whom shall represent the
interests of rural In ternet service providers, one of whom shall be
a private sector technology professional with expertise in broadband
connectivity, access, price and related economic factors, one of
whom shall represent the interests of rural health care, and one of
whom shall be a representative of a wireless telecommunications
provider not affiliated with an incumbent local exchange carrier in
Oklahoma and one of whom shall be a representative of a wireless
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Internet service provider (WISP) as defined by Section 1 of this
act;
3. Four Five members shall be appointed by the Presid ent Pro
Tempore of the Oklahoma State Senate, one of whom shall be a
professional having academic expertise in large -scale information
technology infrastructure with emphasis on rural broadband acce ss,
one of whom shall represent the interests of rural bus iness
enterprises, one of whom shall be a citizen from a community of less
than fifty thousand (50,000) persons which is not part of either the
Oklahoma City or Tulsa Metropolitan Statistical Areas, and one of
whom shall be a rural electric cooperative rep resentative, and one
of whom shall be a representative of a Native American tribe ;
4. One nonvoting member of the Oklahoma House of
Representatives to be appointed by the Speaker;
5. One nonvoting member of the Oklahoma State Senate to be
appointed by the President Pro Tempore; and
6. One nonvoting member to be selected by the Oklahoma
Corporation Commission who has expertise in administration of the
Universal Service Fund, but who is not an elect ed member of the
Commission.
C. The Council shall hold a n organizational meeting not later
than sixty (60) days from the effective date of this act and shall
select from its membership a chair and vice -chair or co-chairs. The
chair or co-chair of the Council shall be a person who is not a
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government employee o r public official, unless the person or persons
are legislators.
D. A quorum of the membership of the Council shall be necessary
in order to take any final action pursuant to the provisions of this
act.
E. The Council shall be subject to the Oklahoma Ope n Meeting
Act and the Oklahoma Open Records Act.
F. The Rural Broadband Expansion Council shall conduct a study
of rural broadband access in the state and shall divide the state
into separate geographic areas based on the information it obtains
regarding existing capability for persons and businesses to access
broadband telecommunication services, the cost for obtaining the
services from existing service providers, the estimated costs for
improving rural broadband access, the likelihood of changes in rural
broadband access in the near and intermediate future based on
available information regarding private or public sector plans or
programs to create or enhance broadband access in rural areas, the
need for change in state or local law or policy that impacts the
ability for persons or business entities in rural areas to access
broadband services at a reasonable price and such other information
as the Council may determine to be relevant in order to est ablish
the geographic areas.
G. The Council shall incorpo rate the information as described
in subsection F of this section into a mapping system that depicts
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resources, broadband coverage, connectivity speeds and such other
features as the Council deems r elevant.
H. The Council shall undertake a study of incent ives or
programs that would have the effect of improving existing rural
broadband access and establishing broadband access to areas which
currently do not have such access. The incentives or progra ms may
include federal funds, tribal funds or resources, d onated funds or
funding available from foundations, endowments or similar sources,
state or local tax incentives, state or local financing incentives
or options or federal, tribal, state or local re gulatory policies
that would be conducive to improving exi sting broadband access or
establishing such access where it does not currently exist.
I. The Council shall have the right to obtain information from
the Oklahoma Corporation Commission or other sta te agencies, to the
extent information requested is not re quired to be kept confidential
pursuant to some other requirement, regarding any of the matters as
specified in this section relevant to the Council's duties.
J. The Council shall have the right to obtain information from
counties, cities, towns, school d istricts, career technology
districts, public trusts, or other entities or instrumentalities of
local government, to the extent information requested is not
required to be kept confidential pursuant to some other requirement,
regarding any of the matters a s specified in this section relevant
to the Council's duties.
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K. The Council shall utilize the geographic areas it
establishes pursuant to this act in order to develop its
recommendations regarding the implementation of policies that are
conducive to establishing or improving rural broadband access in the
state.
L. The Council shall focus on the financial viability of
broadband service providers so that a broadband network is
adequately supported i n its operations, that needed repairs and
upgrades can be undertaken on a timely basis and that the goal of
having a quality long -term broadband service delivery system for
rural areas is achieved and maintained.
M. The Council shall give emphasis to main taining the viability
of the Oklahoma Universal Service Fu nd and give consideration to
whether similar universal funds should be implemented in order to
facilitate broadband expansion and operational costs for underserved
areas.
N. The Council shall give emphasis to the prevention of
duplication of facilities an d investment when it makes policy
recommendations. The Council shall establish objective standards in
order to determine whether the construction of rural broadband
access constitutes duplication o f facilities and investment and also
the role of any recom mended incentives that would benefit entities
in the private sector so that public resources are effectively
utilized and that duplication of efforts is avoided.
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O. The Oklahoma Department of Comme rce shall create a dedicated
webpage or website in order t o allow public access to the actions
and recommendations of the Council. The webpage or website shall
contain the mapping system required by subsection G of this section
and its related information .
P. The Oklahoma Department of Commerce shall provide
administrative support to the Council and shall utilize the Digital
Transformation Program Revolving Fund for expenses related to such
administrative support as provided by Section 36 of Title 62 of t he
Oklahoma Statutes.
Q. The Rural Broadband Expansion Co uncil shall submit an annual
report, not later than January 31, summarizing discussions,
testimony, analysis, information or other actions and significant
events during the preceding calendar year a nd containing the
recommendations, if any, by the Council for legislation, action by
executive branch agencies or other actions in furtherance of the
mission and duties of the Council. The report shall be submitted to
the Governor, the Speaker of the Okla homa House of Representatives
and the President Pro Tempor e of the Oklahoma State Senate.
R. On or before October 31, 2021, the Council shall develop a
set of broadband incentive award guidelines for recommendation to
the State Legislature. The Council s hall submit a copy of the
guidelines to the Speaker of the House of Representatives, the
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President Pro Tempore of the Senate, and to the chairs of the
appropriate legislative committees. The guidelines shall:
1. Consider a weighted approach for awarding incentives based
upon the following:
a. the area's need for services, including, but not
limited to, whether the area is underserved, unserved,
rural or urban,
b. whether there are existing broadband assets in the
area, based on the statewide map,
c. whether existing federal, state, local, tribal or
private resources have been allocated to broadband
services in the area,
d. a preference for federal, state, local, tribal or
private partnerships, and
e. the capacity of the provider to maintain assets for an
extended period of time; and
2. Recommend any necessary controls including, but not limited
to, capping the dollar amount of awards, allowing for an auditing
process, and a process that allows for award clawbacks. These
controls shall be in place to ens ure the maximum efficiency of the
incentive award and to protect against waste, fraud or abuse.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
April 8, 2021 - DO PASS