DAR File No. 37449

Public Service Commission, Administration

Section R746-343-15

Surcharge

Notice of Proposed Rule

(Amendment)

DAR File No.: 37449
Filed: 03/28/2013 10:18:57 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 54-8b-10 requires the Commission to impose a Hearing and Speech Impaired Surcharge on local exchange and mobile telephone service. The surcharge is used to provide telecommunications devices to hearing or speech impaired customers. The statutory maximum surcharge is $0.20. The Hearing and Speech Impaired Fund, into which the surcharges are deposited, is increasing because surcharge revenues are exceeding expenses. In March 2013, the Division of Public Utilities completed an analysis of the fund and recommended a decrease in the surcharge.

Summary of the rule or change:

This rule change lowers the Hearing and Speech Impaired Surcharge by one-sixth, from $0.06 to $0.05. To accommodate billing cycles of telecommunications companies, the Public Service Commission anticipates making this rule change effective on 07/01/2013.

State statutory or constitutional authorization for this rule:

• Section 54-8b-10

Anticipated cost or savings to:

the state budget:

This rule change should decrease or eliminate the growth of the Hearing and Speech Impaired Fund. The change should not impact the ability of the Commission to use the fund to provide telecommunications devices to hearing or speech impaired customers. Additionally, this rule change should provide a small cost savings of $0.01 per month per account to state government entities who purchase local exchange or mobile telephone service.

local governments:

This rule change should provide a small cost savings of $0.01 per month per account to local governments who purchase local exchange or mobile telephone service.

small businesses:

This rule change should provide a small cost savings of $0.01 per month per account to local governments who purchase local exchange or mobile telephone service.

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

This rule change should provide a small cost savings of $0.01 per month per account to any person or business who purchases local exchange or mobile telephone service.

Compliance costs for affected persons:

None. The telephone service providers who are currently collecting a $0.06 surcharge will continue to collect the lower surcharge of $0.05. The change should not create any compliance cost.

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

This rule change reflects sound fiscal management of the Hearing and Speech Impaired Fund, with a goal of maintaining collections into the fund close to anticipated expenses. Utah customers of local exchange or mobile telephone service will experience a cost savings of $0.01 per month per account.

Ron Allen, Commission Chairman

The full text of this rule may be inspected, during regular business hours, at the Division 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 sbintz@utah.gov
• David Clark at the above address, by phone at 801-530-6708, by FAX at 801-530-6796, or by Internet E-mail at drexclark@utah.gov

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:

05/15/2013

This rule may become effective on:

05/22/2013

Authorized by:

David Clark, Legal Counsel

R746. Public Service Commission, Administration.

R746-343. Rule for Deaf, Severely Hearing or Speech Impaired Person.

R746-343-15. Surcharge.

A. The surcharge will be imposed on each telephone number of each residential and business customer in this state.

B. The surcharge established by the Commission in accordance with Subsection 54-8b-10(4) is [$.06]$.05 per month for each residential and business telephone number, subject to the limitation on surcharges related to mobile telecommunication service specified in Utah Code Ann. Subsection 54-8b-10(4)(b)(ii).

C. Subject to Subsection R746-343-15(D), the telephone number surcharge will be collected by each telecommunications corporation providing public telecommunications service to the customer and submitted, less administrative cost, to the Public Service Commission on a quarterly basis.

D. The provider will submit its budget for annual review by the Public Service Commission.

E. The telephone surcharge need not be collected by a telecommunications corporation if the amount collected would be less than the actual administrative costs of that collection. In that case, the telecommunications corporation shall submit to the Commission, in lieu of the revenue from the surcharge collection, a breakdown of the anticipated costs and the expected revenue from the collection showing that the costs exceed the revenue.

 

KEY: public assistance, physically handicapped, rates, telecommunications

Date of Enactment or Last Substantive Amendment: [June 20, 2012]2013

Notice of Continuation: December 10, 2012

Authorizing, and Implemented or Interpreted Law: 54-8b-10