1998 Legislation
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HOUSE BILL NO. 516, As Amended – Telecommunications service, asst

HOUSE BILL NO. 516, As Amended

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H0516aa....................................................by STATE AFFAIRS
TELECOMMUNICATIONS SERVICE - Adds to and amends existing law to establish a
Universal Service Fund to provide financial assistance to eligible
telecommunications carriers, to alter the eligibility criteria and increase
the monthly discount of the telecommunications service assistance program
and to provide for remittance and distribution of revenues from the monthly
surcharges on each end-user's business, residential and wireless access
service.

01/27    House intro - 1st rdg - to printing
01/28    Rpt prt - to St Aff
02/02    Rpt out - to Gen Ord
02/04    Rpt out amen - to engros
02/05    Rpt engros - 1st rdg - to 2nd rdg as amen
02/05    1st rdg - to 2nd rdg as amen
02/06    2nd rdg - to 3rd rdg as amen
02/09    3rd rdg as amen - PASSED - 64-5-1
      AYES -- Alltus, Barraclough, Barrett, Bivens, Black(15), Black(23),
      Boe, Bruneel, Campbell, Clark, Crane, Crow, Cuddy, Deal, Denney,
      Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
      Hansen, Henbest, Hornbeck, Jaquet, Jones(9), Jones(22), Jones(20),
      Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Linford,
      Loertscher, Mader, McKague, Meyer, Miller, Mortensen, Newcomb,
      Pischner, Pomeroy, Reynolds, Richman, Ridinger, Sali, Schaefer,
      Stevenson, Stoicheff, Stone, Stubbs, Taylor, Tilman, Tippets, Trail,
      Watson, Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- Bieter, Callister, Chase, Marley, Robison
      Absent and excused -- Bell
    Floor Sponsor - Kjellander
    Title apvd - to Senate
02/10    Senate intro - 1st rdg as amen - to St Aff
02/19    Rpt out - rec d/p - to 2nd rdg as amen
02/20    2nd rdg - to 3rd rdg as amen
03/10    3rd rdg as amen - PASSED - 34-0-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Stennett, Sweeney,
      Thorne, Twiggs, Wheeler, Whitworth
      NAYS--None
      Absent and excused--Sorensen
    Floor Sponsors - Hansen, Sweeney
    Title apvd - to House
03/11    To enrol
03/12    Rpt enrol - Sp signed
03/13    Pres signed
03/16    To Governor
03/17    Governor signed
         Session Law Chapter 37
         Effective: 03/17/98

Bill Text


H0516


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                              HOUSE BILL NO. 516, As Amended

                                BY STATE AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO TELECOMMUNICATION SERVICES; AMENDING SECTION 62-610,  IDAHO  CODE,
 3        TO PROVIDE FOR APPLICATION OF THE UNIVERSAL SERVICE FUND TO ELIGIBLE TELE-
 4        COMMUNICATIONS  CARRIERS; AMENDING CHAPTER 6, TITLE 62, IDAHO CODE, BY THE
 5        ADDITION OF A NEW SECTION 62-610A, IDAHO CODE, TO PROVIDE THE  PURPOSE  OF
 6        THE  ACT;  AMENDING  CHAPTER 6, TITLE 62, IDAHO CODE, BY THE ADDITION OF A
 7        NEW SECTION 62-610B, IDAHO CODE, TO PROVIDE DEFINITIONS; AMENDING  CHAPTER
 8        6,  TITLE  62, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 62-610C, IDAHO
 9        CODE, TO PROVIDE FOR UNIVERSAL SERVICE;  AMENDING  CHAPTER  6,  TITLE  62,
10        IDAHO  CODE, BY THE ADDITION OF A NEW SECTION 62-610D, IDAHO CODE, TO PRO-
11        VIDE FOR DESIGNATION OF  ELIGIBLE  TELECOMMUNICATIONS  CARRIERS;  AMENDING
12        CHAPTER 6, TITLE 62, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 62-610E,
13        IDAHO  CODE,  TO  PROVIDE  FOR  DESIGNATION  OF SERVICE AND SUPPORT AREAS;
14        AMENDING CHAPTER 6, TITLE 62, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
15        62-610F, IDAHO CODE, TO PROVIDE FOR HIGH COST SUPPORT, ADMINISTRATION  AND
16        TRANSITION; AMENDING SECTION 56-901, IDAHO CODE, TO PROVIDE THAT THE TELE-
17        COMMUNICATIONS SERVICE ASSISTANCE PROGRAM SHALL MAXIMIZE SPECIFIED FEDERAL
18        CONTRIBUTIONS TO IDAHO'S LOW-INCOME CUSTOMERS AND TO PROVIDE A DEFINITION;
19        AMENDING  SECTION  56-902, IDAHO CODE, TO PROVIDE CORRECT NOMENCLATURE, TO
20        INCREASE THE ASSISTANCE RATE DISCOUNT AND TO PROVIDE FOR WAIVERS TO CARRI-
21        ERS OF RESIDENTIAL BASIC LOCAL EXCHANGE  SERVICE  FROM  PROVIDING  CERTAIN
22        SERVICES;  AMENDING SECTION 56-903, IDAHO CODE, TO PROVIDE THAT ASSISTANCE
23        ELIGIBILITY SHALL BE BASED ON INCOME CRITERIA AND TO PROVIDE THAT LISTS OF
24        ELIGIBLE RECIPIENTS SHALL BE PROVIDED TO ELIGIBLE TELECOMMUNICATIONS  CAR-
25        RIERS;  AMENDING  SECTION  56-904,  IDAHO CODE, TO PROVIDE FOR A STATEWIDE
26        MONTHLY SURCHARGE ON EACH END USER'S BUSINESS,  RESIDENTIAL  AND  WIRELESS
27        ACCESS  SERVICE, TO PROVIDE FOR ISSUANCE OF ORDERS BY THE PUBLIC UTILITIES
28        COMMISSION, TO PROVIDE FOR A THIRD PARTY ADMINISTRATOR, AND TO PROVIDE FOR
29        REMITTANCE AND DISTRIBUTION OF ASSISTANCE SURCHARGE REVENUES; AND  DECLAR-
30        ING AN EMERGENCY.

31    Be It Enacted by the Legislature of the State of Idaho:

32        SECTION  1.  That  Section  62-610, Idaho Code, be, and the same is hereby
33    amended to read as follows:

34        62-610.  UNIVERSAL SERVICE FUND. (1) The commission shall establish a uni-
35    versal service fund (USF) for the purpose of maintaining the universal  avail-
36    ability  of  local  exchange  service  at  reasonable rates and to promote the
37    availability of message telecommunications service (MTS) at reasonably  compa-
38    rable prices throughout the state of Idaho.
39        (2)  The USF shall be funded by imposing a statewide end user surcharge on
40    local exchange service and MTS and WATS type services.
41        (a)  The  local exchange surcharge shall be a cents per line charge with a
42        business-residential differential equal to the statewide average business-
43        residential price ratio. Providers of local exchange service  shall  remit


                                          2

 1        the  local  exchange  surcharge  revenues  to  the fund administrator on a
 2        monthly basis, unless less frequent remittances are authorized by order or
 3        rule of the commission.
 4        (b)  The MTS and WATS surcharge shall be recovered on a  percentage  basis
 5        through  a  surcharge applied to the monthly bill of each end user or by a
 6        cents per minute charge applied to the bills of all end  users.  Providers
 7        of  MTS  or  WATS services shall remit the revenues derived from such sur-
 8        charge to the fund administrator on a monthly basis, unless less  frequent
 9        remittances are authorized by order or rule of the commission.
10        (c)  The surcharges set forth in paragraphs (a) and (b) of this subsection
11        shall be collected by all telephone corporations, including telephone cor-
12        porations  subject  to the provisions of this chapter and mutual nonprofit
13        and cooperative telephone corporations, providing the services upon  which
14        the surcharge is levied.
15        (3)   Telephone corporations   Eligible telecommunications
16    carriers    that  provide  local exchange service and access service for
17    MTS/WATS providers and that have rates for these respective services that meet
18    both of the following criteria shall be eligible for  distributions  from  the
19    USF:
20        (a)  The   telephone corporation's   eligible telecommuni-
21        cations carrier's  average residence  and  business  local  exchange
22        service  rates for one-party single line service are in excess of one hun-
23        dred and twenty-five percent (125%)  of  the  weighted  statewide  average
24        rates  for  residence  and  business local exchange service rates for one-
25        party single line service respectively, and
26        (b)  The  telephone corporation's   eligible  telecommuni-
27        cations  carrier's    average  per minute charge for MTS/WATS access
28        services it provides is in excess of one hundred  percent  (100%)  of  the
29        weighted  statewide  average  for the same or similar MTS/WATS access ser-
30        vices.
31        (4)  Distributions from the fund shall  be  available  to  the  individual
32      telephone corporations   eligible telecommunications carrier
33     in Idaho providing basic local exchange service to meet residual  reve-
34    nue requirements remaining after deducting the revenue generated by all intra-
35    state  telecommunication  services,  from  the    telephone corporation's
36      eligible telecommunications  carrier's    total  intrastate
37    telecommunication service revenue requirement as determined by the commission,
38    including  local  exchange priced at one hundred twenty-five percent (125%) or
39    more of the weighted statewide average and MTS/WATS access services priced  at
40    one  hundred percent (100%) or more of the statewide average and contributions
41    from the federal universal service fund.  The  commission  shall  provide,  by
42    order,  for not less than seventy-five percent (75%) nor more than one hundred
43    percent (100%) of the residual revenue requirement  of  the  individual  
44    telephone  corporation   eligible telecommunications carrier 
45    to be funded by the universal service fund. The commission  shall  retain  its
46    authority to approve rate design consistent with this subsection, but notwith-
47    standing such authority, the commission shall supply full funding for any com-
48    mission  determined  revenue requirement. Distributions from the fund shall be
49    made monthly.
50        (5)  The commission shall:
51        (a)  Adopt rules for the implementation and administration of the  univer-
52        sal service fund established in this section;
53        (b)  Determine  which  telephone  corporations  meet the eligibility stan-
54        dards;
55        (c)  Provide for the receipt and collection of the surcharge for the  uni-


                                          3

 1        versal service fund; and
 2        (d)  Provide  for the administration and distribution of the fund to 
 3        telephone corporations   eligible  telecommunications  carriers
 4         in a manner determined by the commission.
 5        (6)  "Local  Exchange  Service,"  as  used  in section 62-610, Idaho Code,
 6    means the provision of access lines to customers with the associated transmis-
 7    sion of two-way  interactive  switched  voice  communication  within  a  local
 8    exchange area.

 9        SECTION  2.  That  Chapter  6,  Title  62, Idaho Code, be, and the same is
10    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
11    known and designated as Section 62-610A, Idaho Code, and to read as follows:

12        62-610A.  PURPOSE.  The purpose of this act is to authorize the Idaho pub-
13    lic utilities commission to establish a competitively and technologically neu-
14    tral funding mechanism which will operate in coordination with federal univer-
15    sal service support mechanisms. All consumers in this state, without regard to
16    their location, should have comparable accessibility to  basic  telecommunica-
17    tion services at just and reasonable rates.

18        SECTION  3.  That  Chapter  6,  Title  62, Idaho Code, be, and the same is
19    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
20    known and designated as Section 62-610B, Idaho Code, and to read as follows:

21        62-610B.  DEFINITIONS.  For  purposes  of  section 62-610, Idaho Code, and
22    sections 62-610A through 62-610F, Idaho Code, the following words and  phrases
23    shall have the following meanings:
24        (1)  "Eligible telecommunications carrier" means a telecommunications car-
25    rier designated by the commission who has the obligation to provide  universal
26    service throughout the service area for which the designation is received.
27        (2)  "Fund"  means  the  Idaho  telecommunications  universal service fund
28    established by the commission pursuant to sections 62-610A and 62-610F,  Idaho
29    Code.
30        (3)  The  "service  area"  served  by  a rural telephone company means the
31    company's "study area(s)" as established by the federal communications commis-
32    sion and the public utilities commission. In the case of a nonrural telecommu-
33    nications company the service area shall be  the  eligible  telecommunications
34    carrier's current or commission approved service territory.
35        (4)  "Support  area"  means a geographic area designated by the commission
36    as a high-cost area for which eligible telecommunications  carrier(s)  serving
37    such  area  may  receive financial assistance from the universal service fund.
38    The commission shall consider  population  distribution,  geographic  factors,
39    cost  model  capabilities  and  other relevant considerations in making such a
40    determination.
41        (5)  "Telecommunications carrier" means a telephone corporation  providing
42    telecommunication  services for compensation within this state, and shall, for
43    the purposes of sections 62-610A through 62-610F, Idaho Code, include  munici-
44    pal,  cooperative  or mutual telephone companies and telecommunications compa-
45    nies providing wireless, cellular, personal communications services and mobile
46    radio services for compensation.
47        (6)  "Universal service" means basic  local  exchange  service  and  other
48    telecommunication  services  designated  by  the  commission as services which
49    should be widely available to consumers in all regions of the  state  at  just
50    and reasonable rates.
51        (7)  All other terms, words or phrases shall have the meaning set forth in


                                          4

 1    section 62-603, Idaho Code.

 2        SECTION  4.  That  Chapter  6,  Title  62, Idaho Code, be, and the same is
 3    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
 4    known and designated as Section 62-610C, Idaho Code, and to read as follows:

 5        62-610C.  UNIVERSAL SERVICE. (1) Universal service is an evolving level of
 6    telecommunication  services  to  which  consumers  in all regions of the state
 7    should have access.
 8        (2)  The commission shall review the level of  telecommunication  services
 9    within  the  state  on  a  periodic basis and designate those service(s) which
10    should be made available to consumers by eligible telecommunications  carriers
11    to  meet  their obligation to provide universal service. The commission shall,
12    if services in addition to basic local exchange service are to be  designated,
13    consider the extent to which such other telecommunication services:
14        (a)  Have, through the operation of market choices by customers, been sub-
15        scribed to by a substantial majority of residential customers;
16        (b)  Are  being deployed in public telecommunications networks by telecom-
17        munications carriers; and
18        (c)  Are consistent with the public interest, convenience and necessity.
19        (d)  The commission shall also consider definitions of  universal  service
20        adopted  by the federal communications commission pursuant to the telecom-
21        munications act of 1996.

22        SECTION 5.  That Chapter 6, Title 62, Idaho Code,  be,  and  the  same  is
23    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
24    known and designated as Section 62-610D, Idaho Code, and to read as follows:

25        62-610D.  ELIGIBLE TELECOMMUNICATIONS CARRIERS. (1) Only a  telecommunica-
26    tions carrier designated as an eligible telecommunications carrier by the com-
27    mission shall be eligible to receive universal service fund support.
28        (2)  The  commission shall upon its own motion or upon request designate a
29    telecommunications carrier that meets the requirements of  subsection  (3)  of
30    this section as an eligible telecommunications carrier for a service area des-
31    ignated  by the commission. Upon request and consistent with the public inter-
32    est, convenience and necessity, the commission may, in the  case  of  an  area
33    served  by  a  rural  telephone  company,  and shall, in the case of all other
34    areas, designate more than one (1) telecommunications carrier as  an  eligible
35    telecommunications carrier for a service area designated by the commission, so
36    long  as  the requesting telecommunications carrier meets the requirements set
37    forth in this section. Before designating an additional eligible  telecommuni-
38    cations  carrier  for an area served by a rural telephone company, the commis-
39    sion shall find that the designation is in the public interest.
40        (3)  A telecommunications carrier requesting designation  as  an  eligible
41    telecommunications  carrier  shall,  throughout the service area for which the
42    designation is made:
43        (a)  Offer the services which are within the definition of universal  ser-
44        vice  adopted by the commission, using its own facilities or a combination
45        of its own facilities and resale of another  telecommunications  carrier's
46        services  (including the services offered by another eligible telecommuni-
47        cations carrier); and
48        (b)  Advertise the availability of such services and the charges  therefor
49        using media of general distribution.
50        (c)  For  the  purpose of being eligible to receive support from the fund,
51        the eligible telecommunications carrier shall also offer low-income  tele-


                                          5

 1        communication services pursuant to chapter 9, title 56, Idaho Code.
 2        (4)  The commission shall permit an eligible telecommunications carrier to
 3    relinquish  its  designation as such a carrier in any area served by more than
 4    one (1) eligible telecommunications carrier.  An  eligible  telecommunications
 5    carrier  that seeks to relinquish its eligible telecommunications carrier des-
 6    ignation for an area served by more than one (1)  eligible  telecommunications
 7    carrier  shall  give no less than thirty (30) days notice to the commission of
 8    its intent to relinquish such designation. Prior to permitting a  telecommuni-
 9    cations  carrier designated as an eligible telecommunications carrier to cease
10    providing universal service in an area served by more than  one  (1)  eligible
11    telecommunications  carrier, the commission shall require the remaining eligi-
12    ble telecommunications carrier or carriers to ensure that all customers served
13    by the relinquishing carrier will continue to be served.

14        SECTION 6.  That Chapter 6, Title 62, Idaho Code,  be,  and  the  same  is
15    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
16    known and designated as Section 62-610E, Idaho Code, and to read as follows:

17        62-610E.  DESIGNATING SERVICE AND SUPPORT AREAS. The commission shall des-
18    ignate geographic service areas for the purpose of determining universal  ser-
19    vice obligations of eligible telecommunications carriers. The commission shall
20    also  designate  geographic support areas for the purpose of determining areas
21    for which financial assistance shall be made available from the fund to assist
22    eligible telecommunications carriers to meet universal service obligations.

23        SECTION 7.  That Chapter 6, Title 62, Idaho Code,  be,  and  the  same  is
24    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
25    known and designated as Section 62-610F, Idaho Code, and to read as follows:

26        62-610F.  HIGH-COST SUPPORT -- ADMINISTRATION --  TRANSITION.  (1)  On  or
27    before  March 1, 1999, the commission shall establish a universal service fund
28    to enable eligible  telecommunications  carriers  to  make  universal  service
29    widely available to all persons within the state of Idaho at reasonable rates.
30    Eligible telecommunication carriers receiving financial support shall use that
31    support  only  for  the  provision,  maintenance and upgrading of services and
32    facilities for which the support is intended.
33        (2)  The commission shall initiate a proceeding to determine and adopt the
34    appropriate methodology and mechanisms to  collect  and  distribute  financial
35    assistance  which are specific, predictable and sufficient in conjunction with
36    federal universal service support mechanisms to preserve and advance universal
37    service within the state of Idaho. Revenue for the  fund  shall  be  collected
38    through  a  uniform universal service fund surcharge as calculated by the com-
39    mission. The surcharge shall be imposed on end users of all retail  telecommu-
40    nication  services  originating  and terminating within the state of Idaho and
41    collected by the telecommunications carrier providing  telecommunication  ser-
42    vices  to  such  end user. Disbursements from the fund shall be used to defray
43    the costs, as determined by the commission, of providing universal service  to
44    customers  within  a  geographic support area. Those costs shall be calculated
45    using a forward-looking cost methodology. When  providing  disbursements  from
46    the  fund,  the commission shall take such actions as may be necessary to pre-
47    vent redundant cost recovery by recipients of such funds including the  reduc-
48    tion of access charges subject to title 61 or 62, Idaho Code.
49        (3)  The commission shall establish procedures to administer the universal
50    service  fund and shall contract with a neutral third party for administration
51    of the fund. The administrator shall perform the duties required by  the  com-


                                          6

 1    mission  including data gathering, collecting the surcharge revenues, disburs-
 2    ing funds, and notifying the commission of any fund violations.
 3        (4)  The commission shall develop procedures and provide for a  transition
 4    period to begin no earlier than January 1, 2001, for rural telephone companies
 5    to  replace funding available pursuant to section 62-610, Idaho Code, with the
 6    funding mechanism established pursuant to this section for the support of uni-
 7    versal service.

 8        SECTION 8.  That Section 56-901, Idaho Code, be, and the  same  is  hereby
 9    amended to read as follows:

10        56-901.  TELECOMMUNICATIONS  SERVICE  ASSISTANCE  PROGRAM  -- DEFINI-
11    TIONS .  (1)  A telecommunications service assistance program
12    is hereby established within the department of health and welfare  to  provide
13    eligible  recipients  with a reduction in costs of telecommunications services
14     to promote universal service .  The program shall be  administered
15    by  the  department of health and welfare in accordance with the provisions of
16    this chapter and rules and regulations promulgated in compliance with  chapter
17    52,  title 67, Idaho Code, to administer the program.  The telecommunica-
18    tions service assistance program adopted shall maximize federal "lifeline" and
19    "link-up" contributions to Idaho's low-income customers.
20        (2)  For the purposes of  this  chapter,  a  "telecommunications  carrier"
21    means a telephone corporation providing telecommunication services for compen-
22    sation  within this state, and shall include municipal, cooperative, or mutual
23    nonprofit telephone companies, and  telecommunication  corporations  providing
24    wireless, cellular, personal communications services and mobile radio services
25    for compensation. 

26        SECTION  9.  That  Section  56-902, Idaho Code, be, and the same is hereby
27    amended to read as follows:

28        56-902.  ASSISTANCE RATE DISCOUNT -- FORM -- APPLICABLE SERVICES -- AMOUNT
29    -- APPLICATION. (1)  On the effective date of this chapter and after  the
30    federal  communications  commission  has  certified the program, the telephone
31    corporations   Telecommunication carriers  providing residen-
32    tial basic local exchange service shall provide assistance in the  form  of  a
33    monthly  discount  to eligible subscribers of residential basic local exchange
34    service of  either two   three  dollars  and  fifty
35    cents    ($  2.0   3.5 0) or  the same 
36     an  amount  as   authorized by  the  federal
37    communication  commission  's subscriber line charge,  whichever is
38    greater.  In no case will the discount exceed the rate charged for  the  grade
39    of  residential  basic  local  exchange service subscribed to by each eligible
40    individual.  The Idaho  telephone   telecommunications service
41     assistance plan shall only be used to provide for  a  single  residence
42    line at the principal residence of the eligible subscriber.
43        (2)  The  providers  of  residential  basic local exchange service and the
44    Idaho department of health and welfare  shall  comply  with  all  requirements
45    expressly  provided by federal order, regulation and statute for eligible sub-
46    scribers  to qualify for the federal "lifeline"    and  "link-up"  
47    telephone  assistance  program.    The Idaho telephone assistance program
48    shall be submitted to the federal communications commission for  certification
49    and  waiver  of  the  federal  subscriber  line charge.   Upon approval of the
50    waiver and certification, the assistance provided by the local exchange  tele-
51    phone  company  shall  be increased to include a waiver of the subscriber line


                                          7

 1    charge   In accordance with federal law, the Idaho public utilities
 2    commission may grant waivers to carriers of residential basic  local  exchange
 3    service from providing certain services to eligible subscribers .

 4        SECTION  10.  That  Section 56-903, Idaho Code, be, and the same is hereby
 5    amended to read as follows:

 6        56-903.  ASSISTANCE ELIGIBILITY. (1)  In  order  to  be    considered
 7        eligible    for the telecommunications service assistance
 8    program,  an  applicant s    shall  be  the  head  of  a
 9    household  ,  shall  be sixty (60) years of age or older  and 
10    participate in the low income home energy assistance program  (LIHEAP)  
11     shall meet narrowly targeted eligibility criteria based solely on income
12    or  factors directly related to income established by the department of health
13    and welfare .  The department of health and welfare shall develop proce-
14    dures for taking applications for assistance and for determining and  certify-
15    ing  program  eligibility.   Such applications shall contain the disclosure of
16    information authorization  necessary  to  process  the  assistance  discounts.
17    Individuals who qualify for assistance under this chapter must be periodically
18    recertified by the department of health and welfare.
19        (2)  At  least  once each year the department shall provide a n elec-
20    tronic  list of names, addresses and, if applicable,  telephone  numbers
21    of  all  eligible  recipients  to  each  local exchange telephone company
22      telecommunications carrier designated as an eligible telecommuni-
23    cations carrier by the public utilities commission  .  The    local
24    exchange  telephone  company    eligible telecommunications carrier
25     shall determine from the list those recipients to whom the company pro-
26    vides service.

27        SECTION 11.  That Section 56-904, Idaho Code, be, and the same  is  hereby
28    amended to read as follows:

29        56-904.  RECOVERY  OF  TELECOMMUNICATIONS SERVICE REVENUE REDUCTIONS 
30    -- ADMINISTRATION . (1) The  Idaho  public  utilities  commission  shall
31    determine  and  impose a  company specific  uniform  statewide
32     monthly surcharge on each    end  user's    business  ,
33        and    residential  and wireless  access 
34    line in   service. The surcharge shall be  an  amount  suffi-
35    cient to reimburse each  provider   carrier  of residen-
36    tial basic local exchange service for the total amount of telephone assistance
37    discounts  provided    as  well  as  the  carrier's   and the 
38    administrator's  expense s  of administering the  plan.  Such
39    surcharge shall be effective concurrent with the discounts given eligible sub-
40    scribers.  The surcharge  shall be explicitly stated on end user billings
41    but  shall not be imposed on eligible subscribers.
42        (2)  The Idaho public utilities commission may adopt rules  or  issue
43    orders    necessary  to  receive  matching  federal low income telephone
44    assistance and to implement the Idaho telephone assistance program,  including
45    procedures  for  adjustment and true-up of the subscriber surcharge.  The
46    commission may contract with a neutral third party to collect  the  surcharge,
47    distribute assistance revenues, and perform other tasks as assigned. 
48        (3)   The public utilities commission shall monitor the effectiveness
49    of  the  telephone assistance program and issue annual reports to the legisla-
50    ture   All carriers of telecommunications services shall remit  the
51    assistance surcharge revenues to the fund administrator designated by the com-


                                          8

 1    mission on a monthly basis, unless less frequent remittances are authorized by
 2    order  of  the public utilities commission. The administrator shall distribute
 3    telecommunication service assistance  program  revenues  monthly  to  eligible
 4    telecommunication carriers in an amount that equals their costs of administer-
 5    ing  the  program  and  the  monthly discount provided to eligible subscribers
 6    .

 7        SECTION 12.  An emergency existing therefor,  which  emergency  is  hereby
 8    declared to exist, this act shall be in full force and effect on and after its
 9    passage and approval.

Statement of Purpose / Fiscal Impact


    





                          STATEMENT OF PURPOSE
                                 RS07733
                                    
    
    This bill authorizes the Public Utilities Commission to establish, after opportunity for hearing 
    and comment, a new universal service fund which will operate in coordination with federal 
    universal service support mechanisms. This will allow for all consumers in this state, without 
    regard to their location, to have comparable accessibility to basic telecommunication 
    services at just and reasonable rates.
    
    It also amends the Idaho Telecommunications Service Assistance Program for low income 
    customers to maximize the federal contributions available for the "lifeline" and "link-up" 
    programs and conforms the state eligibility criteria with the federal regulations.
    
                              FISCAL IMPACT
    
    There is no impact on the Public Utilities Fund. The requirements of this act will be 
    incorporated into the ongoing duties of the Public Utilities Commission.
    
    The fiscal impact to the general fund for FY99 is $55,969.
    
    The general fund impact analysis was prepared by the Department of Health and Welfare for 
    its cost of administering the Idaho Telecommunications Service Assistance Program (ITAP).
    
    CONTACT
    Name: Tonya Clark
    Agency: Idaho Public Utilities Commission
    Phone: 334-0316
    Statement of Purpose/Fiscal Impact
    
    
    H 516