DAR File No. 41644
This rule was published in the June 1, 2017, issue (Vol. 2017, No. 11) of the Utah State Bulletin.
Public Service Commission, Administration
Application of Fund Surcharges to Customer Billings
Notice of Proposed Rule
DAR File No.: 41644
Filed: 05/15/2017 12:54:12 PM
Purpose of the rule or reason for the change:
The reason for this amendment is to comply with S.B. 130, which was passed during the 2017 General Session, and which requires that all telecommunications access lines be assessed for purposes of funding the Utah Universal Public Telecommunications Service Support Fund (UUSF).
Summary of the rule or change:
Through 07/31/2017, providers of access lines, as defined at Subsection 54-8b-2(1), are required to remit to the Public Service Commission of Utah (PSC) 1.65% of their billed intrastate retail rates. As of 08/01/2017, providers of access lines are required to collect from their end-user customers a monthly surcharge of $0.36 per access line and remit to the PSC at least 98.69% of the total monthly surcharge collections. In order to comply with federal law, the rule includes a mechanism whereby an end-user may be exempted from the per-connection surcharge on a showing that the end-user does not use the access line at issue to facilitate Utah intrastate telecommunications services.
Statutory or constitutional authorization for this rule:
- Section 54-3-1
- Section 54-4-1
- Section 54-8b-15
Anticipated cost or savings to:
the state budget:
The PSC and the Division of Public Utilities have been administering the UUSF for many years and have the budget to continue doing so. The change in the surcharge mechanism will not have a fiscal impact on the state budget.
Local governments are not required to comply with or enforce the rules through which the UUSF is funded. No fiscal impact to local government is anticipated.
Small businesses that provide access lines will be required to adjust their billing in order to assess and remit a per-connection surcharge (as opposed to remitting a percentage of their revenues). To comply, these businesses might need to change or modify their billing software. All such costs were considered by the Legislature in determining to allow migration to a per-connection surcharge. Further, such costs will vary and cannot be estimated by the PSC. However, the PSC notes that most of the small businesses affected by this rule have historically assessed a per-connection surcharge in order to fund a program that provides telephony assistance to individuals who are deaf, hard of hearing, or severely speech challenged. Therefore, the PSC anticipates that, for the majority of affected businesses, the migration from a revenue-based remittance to a connection-based remittance will not pose a meaningful fiscal burden.
persons other than small businesses, businesses, or local governmental entities:
Customers of businesses that provide access lines will be charged $0.36 per month per access line.
Compliance costs for affected persons:
To comply, affected persons must collect from their customers and remit to the PSC a monthly per-connection surcharge. Providers of access lines will need to obtain or modify billing software accordingly. The associated costs will vary and cannot be anticipated. However, where most providers have historically collected a per-connection surcharge to comply with other statutory requirements, it is anticipated that the associated costs will be minimal.
Comments by the department head on the fiscal impact the rule may have on businesses:
As stated in the rule analysis, the fiscal impact to businesses will result from IT programming or software that might be necessary in order to comply with a per-connection surcharge requirement rather than a revenue-based remittance requirement. It is anticipated that the conversion costs will be minimal and well within the regulatory budget of Utah's access line providers.
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
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 firstname.lastname@example.org
- Jennie Jonsson at the above address, by phone at 801-530-6763, by FAX at , or by Internet E-mail at email@example.com
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:
This rule may become effective on:
Jennie Jonsson, Administrative Law Judge
R746. Public Service Commission, Administration.
R746-360. Universal Public Telecommunications Service Support Fund.
R746-360-4. Application of Fund Surcharges to Customer Billings.
A. Commencement of Surcharge Assessments -- Commencing June
1, 1998, end-user surcharges shall be the source of revenues to
support the fund. Surcharges will be applied to intrastate retail
rates, and shall not apply to wholesale services. B. Surcharge Based on a Uniform Percentage of Retail
Rates -- The retail surcharge shall be a uniform percentage rate,
determined and reviewed annually by the Commission and billed and
collected by all retail providers. C. Surcharge -- The surcharge to be assessed is as
follows: 1. through September 30, 2016, 1 percent of billed
intrastate retail rates; and 2. beginning October 1, 2016, 1.65 percent of billed
intrastate retail rates.]
KEY: affordable base rate, public utilities, telecommunications, universal service fund
Date of Enactment or Last Substantive Amendment: [
October 24, 2016]
Notice of Continuation: November 13, 2013
Authorizing, and Implemented or Interpreted Law: 54-3-1;
More information about a Notice of Proposed Rule is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2017/b20170601.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Sheri Bintz at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at firstname.lastname@example.org; Jennie Jonsson at the above address, by phone at 801-530-6763, by FAX at , or by Internet E-mail at email@example.com. For questions about the rulemaking process, please contact the Office of Administrative Rules.