DAR File No. 41644

Public Service Commission, Administration

Section R746-360-4

Application of Fund Surcharges to Customer Billings

Change in Proposed Rule

DAR File No.: 41644
Filed: 08/15/2017 09:29:49 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The reason for the change is to respond to comments submitted during, and following, the comment period for the original amendment.

Summary of the rule or change:

The term "connection" is defined by reference to Subsection 54-8b-15(1)(c). Terminology is introduced to foster concision within the rule. Language regarding an end-user surcharge as the funding mechanism for the Utah Universal Service Fund (UUSF) is modified to clarify that the surcharge may be included in an all-inclusive billing plan. Where a provider administers a multi-line service, the provider is required to apply the surcharge, on a monthly basis, to the total number of concurrent real-time voice communication call sessions that end-users can place to or receive from the public switched telephone network. The surcharge may be waived for any end-user who is paying a similar surcharge to a different state. (EDITOR'S NOTE: The original proposed amendment upon which this change in proposed rule (CPR) was based was published in the June 1, 2017, issue of the Utah State Bulletin, on page 180. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the CPR and the proposed amendment together to understand all of the changes that will be enforceable should the agency make this rule effective.)

Statutory or constitutional authorization for this rule:

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

Anticipated cost or savings to:

the state budget:

The Public Service Commission (PSC) and the Division of Public Utilities have been administering the UUSF for many years and have the budget to continue doing so. The changes proposed to the surcharge mechanism through the original filing and this change to proposed rule 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 government is anticipated.

small businesses:

The analysis set forth in the original filing is unaffected by this change to proposed rule. That analysis is as follows: "Small businesses that provide access lines will be required to adjust their billing in order to assess and remit a per-access line 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-access line 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:

The analysis set forth in the original filing is unaffected by this change to proposed rule. That analysis is as follows: "Customers of businesses that provide access lines will be charged $0.36 per month per access line."

Compliance costs for affected persons:

The analysis set forth in the original filing is unaffected by this change to proposed rule. That analysis is as follows: "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:

The comments provided in the original filing are unaffected by this change to proposed rule. Those comments are as follows: "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
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 [email protected]
• Jennie Jonsson at the above address, by phone at 801-530-6763, by FAX at , or by Internet E-mail at [email protected]

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:

10/02/2017

This rule may become effective on:

10/09/2017

Authorized by:

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.

(1)(a) "Access line" is defined at Utah Code Subsection 54-8b-2(1).

(b) For purposes of applying the statutory definition of "access line," the ["functional equivalent of a circuit-switched connection from an end-user to the public switched network" means equipment or technology that allows an end-user to place or receive a real-time voice communication]term "connection" is defined at Utah Code Subsection 54-8b-15(1)(c).

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

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

(2) Through [July]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) [As of August 1, 2017, and u]Unless Subsection R746-360-4(5) applies, providers shall collect from their end-user customers $0.36 per month per access line that, as of the last calendar day of each month, has a primary place of use[:

(i) that has a physical endpoint within the State of Utah; or

(ii) as to which the provider has record of an associated address] within the State of Utah.

(b)(i) "Primary place of 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 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 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.

[(b)](c)(i) The surcharge shall apply [directly]as an explicit charge to each end-user[as a separate charge and shall not be included in, nor paid from, the provider's rates or telecommunications revenues].

(ii) A provider may include the surcharge in an all-inclusive 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.

(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 provider may omit the UUSF surcharge in billing an access line that:

(i) is described in Subsection R746-360-4(3); and

(ii) generates revenue that is subject to a universal service fund surcharge in a state other than Utah.

(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.

[(b)](ii) An end-user that petitions for a waiver of the surcharge has the burden to provide[billing records or other substantial documentary evidence]:

(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.

[(6)(a)] (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)](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)](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)](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)](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)](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.

 

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