UT
Utah Senate Bill SB0269

Utah 2025 Regular Session

Utah Senate Bill SB0269 Compare Versions

OldNewDifferences
1-Enrolled Copy S.B. 269
1+02-24 15:29 S.B. 269
22 1
33 Telecommunications Amendments
44 2025 GENERAL SESSION
55 STATE OF UTAH
66 Chief Sponsor: Wayne A. Harper
77 House Sponsor: Ryan D. Wilcox
88 2
99
1010 3
1111 LONG TITLE
1212 4
1313 General Description:
1414 5
1515 This bill modifies provisions related to telecommunications corporations and carrier of last
1616 6
1717 resort obligations.
1818 7
1919 Highlighted Provisions:
2020 8
2121 This bill:
2222 9
2323 ▸ modifies provisions related to pricing flexibility for incumbent telephone corporations;
2424 10
2525 ▸ provides for the expiration of certain carrier of last resort obligations after July 1, 2025;
2626 11
2727 ▸ modifies provisions regarding Universal Public Telecommunications Service Support
2828 12
2929 Fund eligibility;
3030 13
3131 ▸ requires continued basic residential service to existing locations under certain conditions;
3232 14
3333 and
3434 15
3535 ▸ makes technical and conforming changes.
3636 16
3737 Money Appropriated in this Bill:
3838 17
3939 None
4040 18
4141 Other Special Clauses:
4242 19
4343 None
4444 20
4545 Utah Code Sections Affected:
4646 21
4747 AMENDS:
4848 22
4949 54-8b-2.3, as last amended by Laws of Utah 2009, Chapter 10
5050 23
5151 54-8b-3, as last amended by Laws of Utah 2017, Chapter 130
5252 24
5353 54-8b-15, as last amended by Laws of Utah 2020, Chapter 294
5454 25
5555
5656 26
5757 Be it enacted by the Legislature of the state of Utah:
5858 27
59-Section 1. Section 54-8b-2.3 is amended to read: S.B. 269 Enrolled Copy
59+Section 1. Section 54-8b-2.3 is amended to read:
6060 28
6161 54-8b-2.3 . Pricing flexibility.
6262 29
6363 (1)(a) A telecommunications corporation that obtains a certificate to compete with the
6464 30
6565 incumbent telephone corporation in a defined geographic area pursuant to Section
66+ S.B. 269 S.B. 269 02-24 15:29
6667 31
6768 54-8b-2.1 may price any public telecommunications services it is authorized to offer,
6869 32
6970 or any new public telecommunications service, by means of a price list or
7071 33
7172 competitive contract.
7273 34
7374 (b) Before the telecommunications corporation begins providing any authorized public
7475 35
7576 telecommunications service, it shall notify the commission of:
7677 36
7778 (i) its intent to begin providing the service; and
7879 37
7980 (ii) the defined geographic area in which it will provide the service.
8081 38
8182 (2)(a) Notwithstanding other requirements of this chapter relating to pricing flexibility,
8283 39
8384 beginning on May 2, 2005, an incumbent telephone corporation may offer retail end
8485 40
8586 user public telecommunications services by means of a price list or competitive
8687 41
8788 contract in the same manner as a competing telecommunications corporation as
8889 42
8990 provided in Subsection (1)[:]
9091 43
9192 [(i)] if the incumbent telephone corporation:
9293 44
9394 [(A)] (i) is in substantial compliance with rules and orders of the commission issued
9495 45
9596 under Section 54-8b-2.2; and
9697 46
9798 [(B)] (ii) has more than 30,000 access lines[; and] .
9899 47
99100 [(ii) except as provided in Subsection (2)(b).]
100101 48
101102 (b)[(i)] The incumbent telephone corporation's pricing flexibility shall be the same as
102103 49
103104 a competing telecommunications corporation's pricing flexibility for all public
104105 50
105106 telecommunications services.
106107 51
107108 [(ii) The incumbent telephone corporation shall offer basic residential service
108109 52
109110 throughout the area in which the incumbent telephone corporation is authorized by
110111 53
111112 certificate to provide basic residential service.]
112113 54
113114 (3) Each price list shall:
114115 55
115116 (a) be filed with the commission:
116117 56
117118 (i) electronically; or
118119 57
119120 (ii) by paper copies only if permitted by commission rule;
120121 58
121122 (b) describe the public telecommunications service;
122123 59
123124 (c) set forth the basic terms and conditions upon which the public telecommunications
124125 60
125126 service is offered; and
126127 61
127128 (d) list the prices to be charged for the public telecommunications service or the basis on
128-- 2 - Enrolled Copy S.B. 269
129129 62
130130 which the services will be priced.
131131 63
132132 (4) Prices, terms, and conditions offered under price lists or competitive contracts that are
133133 64
134134 different from tariff prices, terms, and conditions for the same services are not
135+- 2 - 02-24 15:29 S.B. 269
135136 65
136137 considered discriminatory under Section 54-3-8 and Subsection 54-8b-3.3(2).
137138 66
138139 (5) A price list filed with the commission under this section shall take effect five days after
139140 67
140141 it is filed with the commission.
141142 68
142143 (6)(a) Except as provided in Subsection (6)(b), the prices, terms, and conditions of a
143144 69
144145 public telecommunications service offered by a telecommunications corporation
145146 70
146147 pursuant to a competitive contract with a retail customer need not be filed with the
147148 71
148149 commission.
149150 72
150151 (b) Notwithstanding Subsection (6)(a), a copy of a competitive contract shall be
151152 73
152153 provided to the commission or division of public utilities if the commission or
153154 74
154155 division of public utilities, pursuant to general investigatory powers, requests a copy
155156 75
156157 of the competitive contract.
157158 76
158159 (7)(a) Subject to Subsection (7)(b), the commission may, as determined necessary to
159160 77
160161 protect the public interest, set an upper limit on the price that may be charged by
161162 78
162163 telecommunications corporations for public telecommunications services that may be
163164 79
164165 priced by means of a price list or competitive contract in a defined geographic area.
165166 80
166167 (b) The upper limit on price imposed under Subsection (7)(a) shall be applied to all
167168 81
168169 telecommunications corporations holding a certificate to provide the public
169170 82
170171 telecommunications services in the defined geographic area in a competitively
171172 83
172173 neutral manner.
173174 84
174175 (8)(a) The commission may revoke the authority of a telecommunications corporation to
175176 85
176177 offer a public telecommunications service pursuant to a price list or competitive
177178 86
178179 contract or the commission may adopt conditions or restrictions on the
179180 87
180181 telecommunications corporation's pricing flexibility if the commission finds:
181182 88
182183 (i)(A) the telecommunications corporation has materially violated statutes or rules
183184 89
184185 applicable to the specific service;
185186 90
186187 (B) there has been or there is an imminent threat of a material and substantial
187188 91
188189 diminution in the level of competition; or
189190 92
190191 (C) competition has not developed; and
191192 93
192193 (ii) revocation or conditions or restrictions on the telecommunications corporation's
193194 94
194195 pricing flexibility is in the public interest.
195196 95
196197 (b) The party asserting that revocation or conditions or restrictions on the
197-- 3 - S.B. 269 Enrolled Copy
198198 96
199199 telecommunications corporation's pricing flexibility should be imposed shall bear the
200200 97
201201 burden of proof.
202202 98
203203 (9) The commission shall establish rules or procedures to protect confidential, proprietary,
204+- 3 - S.B. 269 02-24 15:29
204205 99
205206 and competitively sensitive information provided to the commission or the division
206207 100
207208 pursuant to this section.
208209 101
209210 (10)(a) An incumbent telephone corporation serving fewer than 30,000 access lines in
210211 102
211212 the state may petition the commission to be regulated under price regulation rather
212213 103
213214 than traditional rate of return regulation.
214215 104
215216 (b) In implementing price regulation for an incumbent telephone corporation serving
216217 105
217218 fewer than 30,000 access lines, the commission may modify the requirements of any
218219 106
219220 provision of this section if necessary to the individual circumstances of the
220221 107
221222 incumbent telephone corporation.
222223 108
223224 (11) An incumbent telephone corporation that is regulated under price regulation under this
224225 109
225226 section rather than traditional rate of return regulation:
226227 110
227228 (a) is not a carrier of last resort within the incumbent telephone corporation's local
228229 111
229230 exchanges after July 1, 2025; and
230231 112
231232 (b) shall:
232233 113
233234 (i) continue to provide basic residential service to each existing location where a
234235 114
235236 customer subscribes to the service on or before July 1, 2025; and
236237 115
237238 (ii) continue to provide and maintain the basic residential service to existing locations
238239 116
239240 described in Subsection (11)(b)(i) until the commission recognizes and adopts
240241 117
241242 discontinuance findings under Subsection 54-8b-3(8).
242243 118
243244 (12)(a) The commission may exercise any statutory power pertaining to this section,
244245 119
245246 including reinstating a carrier of last resort obligation for any wire center:
246247 120
247248 (i) on the commission's own initiative; or
248249 121
249250 (ii) in response to a request for agency action.
250251 122
251252 (b) Before taking action under Subsection (12)(a), the commission shall:
252253 123
253254 (i) provide notice and conduct a hearing; and
254255 124
255256 (ii) determine that modifying or reinstating carrier of last resort obligations is in the
256257 125
257258 public interest.
258259 126
260+ Ŝ→ [(c) The party requesting modification or reinstatement shall bear the burden of
261+126a
262+proof in a ] ←Ŝ
263+127
264+ Ŝ→ [hearing described in Subsection (12)(b).] ←Ŝ
265+128
259266 (13)(a) Beginning July 1, 2025, a local exchange area that was served by an incumbent
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261268 telephone corporation regulated under price regulation under this section on June 30,
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263270 2025:
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265272 (i) is designated as a competitive area; and
266-- 4 - Enrolled Copy S.B. 269
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268275 (ii) is ineligible for Universal Public Telecommunications Service Support Fund
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270277 under Section 54-8b-15.
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272279 (b) Notwithstanding Subsection (13)(a), funding from the Universal Public
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274281 Telecommunications Service Support Fund for the lifeline program pursuant to
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276283 Subsections 54-8b-15(3) and (15) shall remain unchanged.
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278285 Section 2. Section 54-8b-3 is amended to read:
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280287 54-8b-3 . Exemptions from requirements.
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282289 (1)(a) The commission, on its own initiative or in response to an application by a
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284291 telecommunications corporation, a public agency, or a user of a public
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286293 telecommunications service, may, after public notice and a hearing, issue an order
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288295 exempting any telecommunications corporation or public telecommunications service
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290297 from any requirement of this title, including any requirement or limitation relating to
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292299 a telecommunication corporation's earnings, rate base, or pricing of public
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294301 telecommunications services.
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296303 (b) The commission may issue an order described in Subsection (1)(a), after an informal
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298305 adjudication, without a hearing if:
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300307 (i) the matter is not a proceeding described in Subsection 54-1-3(2)(a);
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302309 (ii) a party to an application submitted under Subsection (1)(a) requests an informal
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304311 adjudication; and
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306313 (iii) no person opposes the request for informal adjudication before 10 business days
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308315 after the day on which the party files the request.
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310317 (2) The commission shall specify in the order any requirements, terms, or conditions which
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312319 may apply to any exemption.
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314321 (3) An exemption may be granted for the entire service territory of a telecommunications
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316323 corporation or for a specific geographic area of the service territory.
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318325 (4) The commission may issue an order for an exemption only if it finds that:
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320327 (a) the telecommunications corporation or service is subject to effective competition; and
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322329 (b) the exemption is in the public interest.
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324331 (5) In determining if the telecommunications corporation or service is subject to effective
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326333 competition, the commission shall consider all relevant factors, which may include:
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328335 (a) the extent to which competing telecommunications services are available from
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330337 alternative telecommunications providers;
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332339 (b) the ability of alternative telecommunications providers to offer competing
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334341 telecommunications services that are functionally equivalent or substitutable and
335-- 5 - S.B. 269 Enrolled Copy
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337344 reasonably available at comparable prices, terms, quality, and conditions;
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339346 (c) the market share of the telecommunications corporation for which an exemption is
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341348 proposed;
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343350 (d) the extent of economic or regulatory barriers to entry;
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345352 (e) the impact of potential competition; and
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347354 (f) the type and degree of exemptions to this title that are proposed.
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349356 (6) In determining if the proposed exemption is in the public interest, the commission shall
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351358 consider, in addition to other relevant factors, the impact the proposed exemption would
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353360 have on captive customers of the telecommunications corporation.
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355362 (7)(a) The commission shall approve or deny any application for exemption under this
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357364 section within 240 days, except that the commission may by order defer action for an
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359366 additional 30-day period.
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361368 (b) If the commission has not acted on any application within the permitted time period,
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363370 the application is considered granted.
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365372 (8) If the Federal Communications Commission permits a telecommunications corporation
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367374 to discontinue service under 47 U.S.C. Sec. 214(a), the commission shall recognize and
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369376 adopt the Federal Communications Commission's discontinuance findings.
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371378 Section 3. Section 54-8b-15 is amended to read:
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373380 54-8b-15 . Universal Public Telecommunications Service Support Fund --
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375382 Commission duties -- Charges -- Lifeline program.
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377384 (1) For purposes of this section:
378-185
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379386 (a) "Broadband Internet access service" means the same as that term is defined in 47
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381388 C.F.R. Sec. 8.2.
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383390 (b) "Carrier of last resort" means[:] a rate-of-return regulated:
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385392 (i) [an ]incumbent telephone corporation; or
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387394 (ii) [a ]telecommunications corporation that, under Section 54-8b-2.1:
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389396 (A) has a certificate of public convenience and necessity to provide local
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391398 exchange service; and
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393400 (B) has an obligation to provide public telecommunications service to any
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395402 customer or class of customers that requests service within the local exchange.
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397404 (c) "Connection" means an authorized session that uses Internet protocol or a
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399406 functionally equivalent technology standard to enable an end-user to initiate or
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401408 receive a call from the public switched network.
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403410 (d) "Fund" means the Universal Public Telecommunications Service Support Fund
404-- 6 - Enrolled Copy S.B. 269
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406413 established in this section.
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408415 [(e) "Non-rate-of-return regulated" means having price flexibility under Section
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410417 54-8b-2.3.]
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412419 [(f)] (e) "Rate-of-return regulated" means subject to regulation under Section 54-4-4.
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414421 [(g)] (f) "Wholesale broadband Internet access service" means the end-user loop
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416423 component of Internet access provided by a [rate-of-return regulated ]carrier of last
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418425 resort that is used to provide, at retail:
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420427 (i) combined consumer voice and broadband Internet access; or
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422429 (ii) stand-alone, consumer, broadband-only Internet access.
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424431 (2)(a) There is established an expendable special revenue fund known as the "Universal
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426433 Public Telecommunications Service Support Fund."
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428435 (b) The fund shall provide a mechanism for a qualifying carrier of last resort to obtain
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430437 specific, predictable, and sufficient funds to deploy and manage, for the purpose of
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432439 providing service to end-users, networks capable of providing:
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434441 (i) access lines;
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436443 (ii) connections; or
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438445 (iii) wholesale broadband Internet access service.
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440447 (c) The commission shall develop, by rule made in accordance with Title 63G, Chapter
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442449 3, Utah Administrative Rulemaking Act, and consistent with this section, policies and
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444451 procedures to govern the administration of the fund.
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446453 (3) Subject to this section, the commission shall use funds in the Universal Public
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448455 Telecommunications Service Support Fund to:
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450457 (a) fund the hearing and speech impaired program described in Section 54-8b-10;
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452459 (b) fund a lifeline program that covers the reasonable cost to an eligible
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454461 telecommunications carrier, as determined by the commission, to offer lifeline
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456463 service consistent with the Federal Communications Commission's lifeline program
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458465 for low-income consumers; and
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460467 (c) fund, for the purpose of providing service to end-users, a [rate-of-return regulated or
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462469 non-rate-of-return regulated ]carrier of last resort's deployment and management of
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464471 networks capable of providing:
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466473 (i) access lines;
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468475 (ii) connections; or
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470477 (iii) wholesale broadband Internet access service that is consistent with Federal
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472479 Communications Commission rules[; and] .
473-- 7 - S.B. 269 Enrolled Copy
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475482 [(d) fund one-time distributions from the Universal Public Telecommunications Service
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477484 Support Fund for a non-rate-of-return regulated carrier of last resort's deployment and
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479486 management of networks capable of providing:]
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481488 [(i) access lines;]
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483490 [(ii) connections; or]
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485492 [(iii) broadband Internet access service.]
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487494 (4)[(a)] A [rate-of-return regulated ]carrier of last resort is eligible for payment from the
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489496 Universal Public Telecommunications Service Support Fund if:
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491498 [(i)] (a) the [rate-of-return regulated ]carrier of last resort provides the services described
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493500 in Subsections (3)(c)(i) through (iii); and
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495502 [(ii)] (b) the [rate-of-return regulated ]carrier of last resort's reasonable costs, as
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497504 determined by the commission, to provide public telecommunications service and
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499506 wholesale broadband Internet access service are greater than the sum of:
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501508 [(A)] (i) the [rate-of-return regulated ]carrier of last resort's revenue from basic
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503510 residential service considered affordable by the commission;
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505512 [(B)] (ii) the [rate-of-return regulated ]carrier of last resort's regulated revenue derived
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507514 from providing other public telecommunications service;
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509516 [(C)] (iii) the [rate-of-return regulated ]carrier of last resort's revenue from rates
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511518 approved by the Federal Communications Commission for wholesale broadband
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513520 Internet access service; and
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515522 [(D)] (iv) the amount the [rate-of-return regulated ]carrier of last resort receives from
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517524 federal universal service funds.
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519526 [(b) A non-rate-of-return regulated carrier of last resort is eligible for payment from the
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521528 Universal Public Telecommunications Service Support Fund for reimbursement of
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523530 reasonable costs as determined by the commission if the non-rate-of-return regulated
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525532 carrier meets criteria that are:]
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527534 [(i) consistent with Subsections (2) and (3); and]
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529536 [(ii) developed by the commission by rule made in accordance with Title 63G,
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531538 Chapter 3, Utah Administrative Rulemaking Act.]
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533540 (5) A [rate-of-return regulated ]carrier of last resort that qualifies for funds under this
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535542 section:
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537544 (a) is entitled to a rate of return equal to the weighted average cost of capital rate of
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539546 return prescribed by the Federal Communications Commission for rate-of-return
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541548 regulated carriers; and
542-- 8 - Enrolled Copy S.B. 269
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544551 (b) may use any depreciation method allowed by the Federal Communications
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546553 Commission.
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548555 (6)(a) The commission shall determine if a [rate-of-return regulated ]carrier of last resort
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550557 is correctly applying a depreciation method described in Subsection (5)(b).
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552559 (b) If the commission determines under Subsection (6)(a) that a [rate-of-return regulated ]
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554561 carrier of last resort is incorrectly applying a depreciation method or that the [
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556563 rate-of-return regulated ]carrier of last resort is not using a depreciation method
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558565 allowed by the Federal Communications Commission, the commission shall issue an
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560567 order that provides corrections to the [rate-of-return regulated ]carrier of last resort's
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562569 method of depreciation.
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564571 (7) A carrier of last resort that receives funds from the Universal Public
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566573 Telecommunications Service Support Fund may only use the funds in accordance with
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568575 this section within the area for which the carrier of last resort has a carrier of last resort
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570577 obligation.
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572579 (8)(a) Except as provided in Subsection (8)(b), each access line provider and each
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574581 connection provider shall contribute to the Universal Public Telecommunications
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576583 Service Support Fund through an explicit charge assessed by the commission on the
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578585 access line provider or connection provider.
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580587 (b) The charge described in Subsection (8)(a) does not apply to a prepaid wireless
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582589 telecommunications service, as defined in Section 69-2-405, that is subject to the
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584591 service charge described in Subsection 69-2-405(2)(b).
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586593 (9) The commission shall calculate the amount of each explicit charge described in
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588595 Subsection (8) using a method developed by the commission by rule made in accordance
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590597 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
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592599 (a) does not discriminate against:
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594601 (i) any access line or connection provider; or
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596603 (ii) the technology used by any access line or connection provider;
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598605 (b) is competitively neutral; and
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600607 (c) is a function of an access line or connection provider's:
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602609 (i) annual intrastate revenue;
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604611 (ii) number of access lines or connections in the state; or
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606613 (iii) a combination of an access line or connection provider's annual intrastate
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608615 revenue and number of access lines or connections in the state.
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610617 (10) The commission shall develop the method described in Subsection (9) before January
611-- 9 - S.B. 269 Enrolled Copy
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618+- 9 - S.B. 269 02-24 15:29
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613620 1, 2018.
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615622 (11) An access line or connection provider that provides mobile telecommunications
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617624 service shall contribute to the Universal Public Telecommunications Service Support
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619626 Fund only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4
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621628 U.S.C. Sec. 116 et seq.
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623630 (12) Nothing in this section shall be construed to enlarge or reduce the commission's
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625632 jurisdiction or authority, as provided in other provisions of this title.
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627634 (13) A person that fails to make a required contribution to the fund created by this section,
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629636 or that fails to comply with a commission directive concerning the person's books,
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631638 records, or other information required by the commission to administer this section, is
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633640 subject to applicable penalties.
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635642 (14) Nothing in this section gives the commission the authority:
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637644 (a) to regulate broadband Internet access service;
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639646 (b) to require a carrier of last resort to provide broadband Internet access service; or
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641648 (c) assess a contribution in violation of the Internet Tax Freedom Act, 47 U.S.C. Sec.
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643650 151 note.
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645652 (15)(a) A facilities-based or nonfacilities-based wireless telecommunication provider is
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647654 eligible for distributions from the Universal Telecommunications Service Support
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649656 Fund under the lifeline program described in Subsection (3)(b) for providing lifeline
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651658 service that is consistent with the Federal Communications Commission's lifeline
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653660 program for low-income consumers.
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655662 (b) Except as provided in Subsection (15)(c), the commission may impose reasonable
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657664 conditions for providing a distribution to a wireless telecommunication provider
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659666 under the lifeline program described in Subsection (3)(b).
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661668 (c) The commission may not require a wireless telecommunication provider to offer
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663670 unlimited local calling to a lifeline customer as a condition of receiving a distribution
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665672 under the lifeline program described in Subsection (3)(b).
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667674 (16) The commission shall report to the Public Utilities, Energy, and Technology Interim
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669676 Committee each year before November 1 regarding:
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671678 (a) the contribution method described in Subsection (9);
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673680 (b) the amount of distributions from and contributions to the Universal Public
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675682 Telecommunications Service Support Fund during the last fiscal year;
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677684 (c) the availability of services for which Subsection (3) permits Universal Public
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679686 Telecommunications Service Support Fund funds to be used; and
680-- 10 - Enrolled Copy S.B. 269
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687+- 10 - 02-24 15:29 S.B. 269
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682689 (d) the effectiveness and efficiency of the Universal Public Telecommunications Service
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684691 Support Fund.
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686693 Section 4. Effective Date.
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688695 This bill takes effect on May 7, 2025.
689696 - 11 -