No. 42265 (Amendment): Section R746-360-4. Application of Fund Surcharges to Customer Billings

(Amendment)

DAR File No.: 42265
Filed: 10/25/2017 04:18:15 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The reason for these changes is to respond to comments submitted after the Change in Proposed Rule (Filing No. 41644) was filed on 08/15/2017 and made effective on 10/11/2017.

Summary of the rule or change:

The changes include: 1) the definition of "access line" is amended to include consistency with federal law; 2) the ability of a provider to include the surcharge within an end-user�s rate plan is clarified; 3) the requirement to remit the surcharge explicitly includes providers of prepaid access lines that permit access to the public telephone network, for services purchased on or after 01/01/2018; 4) a provider may omit the surcharge with respect to: a) any access line that generates revenue that is subject to another state's Utah Universal Public Telecommunications Service Support Fund (UUSF) surcharge, or b) any access line that has not been used to access Utah instrastate telecommunications services during the month in question; and 5) in light of 4), above, the process for an end user to petition the Public Service Commission for a waiver of the surcharge is eliminated.

Statutory or constitutional authorization for this rule:

• Section 54-8b-15
• Section 54-3-1
• Section 54-4-1

Anticipated cost or savings to:

the state budget:

The Public Service Commission and the Division of Public Utilities have been administering the UUSF for many years and have the budget to continue doing so. The proposed rule amendment will not have a fiscal impact on the state budget.

local governments:

Local governments are not required to comply with or enforce the rules through which the UUSF is funded. No fiscal impact to local governments is anticipated.

small businesses:

The section that is being amended applies to providers of access lines and connections. This amendment merely clarifies, by making explicit, that providers of prepaid access lines, that permit access to the public telephone network, are subject to the rule.

persons other than small businesses, businesses, or local governmental entities:

The proposed amendment does not alter the access charge already imposed by the rule or the persons to whom it applies.

Compliance costs for affected persons:

This amendment will result in no new compliance costs because it only clarifies the existing rule.

Comments by the department head on the fiscal impact the rule may have on businesses:

The proposed amendment simply clarifies what the existing rule already implies, i.e., that providers of prepaid access lines, that permit access to the public telephone network, are subject to the rule's requirements because they are providers of access lines. Consequently, the amendment creates no new fiscal impact.

Thad LeVar, Chair

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Public Service Commission
Administration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Sheri Bintz at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at [e-mail]
• Michael Hammer at the above address, by phone at 801-530-6729, by FAX at , or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/15/2017

This rule may become effective on:

12/22/2017

Authorized by:

Michael Hammer, Administrative Law Judge

RULE TEXT

R746. Public Service Commission, Administration.

R746-360. Universal Public Telecommunications Service Support Fund.

R746-360-4. Application of Fund Surcharges to Customer Billings.

(1)(a) "Access line" is defined at Utah Code Subsection 54-8b-2(1) and is used in this rule, R746-360, to the extent consistent with federal law.

(b) For purposes of applying the statutory definition of "access line," the term "connection" is defined at Utah Code Subsection 54-8b-15(1)(c) and is used in this rule, R746-360, to the extent consistent with federal law.

(c)(i) Providers of access lines and providers of connections are hereafter referred to jointly as "providers."

(ii) Access lines and connections are hereafter referred to jointly as "access lines."

(2) Through December 31, 2017, providers shall remit to the Commission 1.65 percent of billed intrastate retail rates.

(3) As of January 1, 2018, the Utah Universal Public Telecommunications Service Support Fund (UUSF) shall be funded as follows.

(a) Unless Subsection R746-360-4(5) applies, providers shall [collect from their end-user customers]remit to the Commission $0.36 per month per access line that, as of the last calendar day of each month, has a [primary place of use within the State of Utah]place of primary use in Utah in accordance with the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.

(b)(i) "[Primary place]Place of primary use" means the street address representative of where the customer's use of the telecommunications service primarily occurs.

(ii) A provider of mobile telecommunications service shall consider the customer's [primary ]place of primary use to be the customer's residential street address or primary business street address.

(iii) A provider of non-mobile telecommunications service shall consider the customer's [primary ]place of primary use to be:

(A) the customer's residential street address or primary business street address; or

(B) the customer's registered location for 911 purposes.

(c)[(i)] [The]A provider may collect the surcharge [shall apply as]:

(i) as an explicit charge to each end-user[.]; or

(ii) [A provider may include the surcharge in an all-inclusive]through inclusion of the surcharge within the end-user's rate plan.

(d) A provider that offers a multi-line service shall apply the surcharge to each concurrent real-time voice communication call session that an end-user can place to or receive from the public switched telephone network.

(e) A provider that offers prepaid access lines or connections that permit access to the public telephone network shall remit to the Commission $0.36 per month per access line for such service (new access lines or connections, or recharges for existing lines or connections) purchased on or after January 1, 2018.

(4)(a) A provider shall remit to the Commission no less than 98.69 percent of its total monthly surcharge collections.

(b) A provider may retain a maximum of 1.31 percent of its total monthly surcharge collections to offset the costs of administering this rule.

(5)(a) [A]Subject to Subsection R746-360-4(5)(b), a provider may omit the UUSF surcharge [in billing]with respect to an access line that[:

(i) ] is described in Subsection R746-360-4(3)[;], and:

[(ii)](i) generates revenue that is subject to a universal service fund surcharge in a state other than Utah for the relevant month for which the provider omits the UUSF surcharge[.]; or

(ii) for the relevant month for which the provider omits the UUSF surcharge, was not used to access Utah intrastate telecommunications services.

[(b)(i) An end-user may petition the Commission for a waiver of the surcharge set forth in Subsection R746-360-4(3). Any such petition shall be adjudicated as an informal administrative proceeding.

(ii) An end-user that petitions for a waiver of the surcharge has the burden to provide:

(A) call records demonstrating that, at all times and continuously during the six calendar months preceding the date of petition, the access line being assessed was not used to access Utah intrastate telecommunications services; or

(B) billing records demonstrating that the access line is assessed a universal service fund surcharge in a state other than Utah.

(iii) A provider may not petition the Commission under Subsection R746-360-4(5)(b) for a waiver of the surcharge on behalf of:

(A) a customer; or

(B) a group of customers.

(iv)(A) An exemption granted under Subsection R746-360-4(5)(b) is valid for a period of one calendar year from the date of issuance.

(B) Following the expiration of an exemption, and upon notice from the Commission, the end-user's provider shall assess the UUSF surcharge each month, until such time as the provider is notified by the Commission that a renewed exemption has been granted.

(C) Any assessment remitted to the Commission between the expiration of an exemption and the approval of a petition for renewal of the exemption shall be non-refundable.

(D)(I) The end-user shall bear the sole responsibility to know the expiration date of an exemption granted to the end-user and to ensure that an application for renewal is filed at least 30 days prior to the date of expiration.

(II) At any proceeding to review a petition for renewal of an exemption, evidence that the end-user was unaware of the expiration date shall be inadmissible.

(III) A petition for renewal of an exemption is deemed granted unless the Commission issues an order of denial within 30 days of the date on which the petition is filed.]

(b) A provider that omits any UUSF surcharge pursuant to Subsection R746-360-5(a) shall:

(i) maintain documentation for at least 36 months that the omission complied with Subsection R746-360-5(a); and

(ii) consent to any audit of the documentation requested by the:

(A) Commission; or

(B) Division of Public Utilities.

 

KEY: affordable base rate, public utilities, telecommunications, universal service fund

Date of Enactment or Last Substantive Amendment: 2017

Notice of Continuation: November 13, 2013

Authorizing, and Implemented or Interpreted Law: 54-3-1; 54-4-1; 54-8b-15

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