392.248. Universal service board created, purpose, powers, duties, members--assessment, failure to pay, penalty--eligibility for funding--carriers of last resort--commission's duties--limited liab - Missouri Statutes

Universal service board created, purpose, powers, duties,members--assessment, failure to pay, penalty--eligibility forfunding--carriers of last resort--commission's duties--limitedliability.

392.248. 1. In order to ensure just, reasonable, and affordable ratesfor reasonably comparable essential local telecommunications servicesthroughout the state, there is hereby established the "Universal ServiceBoard" which shall consist of the members of the public service commission andthe public counsel, and which shall be incorporated as a not-for-profit,public benefit corporation in the manner provided pursuant to chapter 355,RSMo, except as otherwise provided in this section. Consistent with rulesadopted by the commission, the universal service board shall create auniversal service fund. The universal service board shall supervise themanagement of the universal service fund. Funds deposited in the universalservice fund are not state funds. The commission shall adopt rules governingthe operations of the state universal service fund within three months of theadoption of the rules adopted by the Federal Communication Commission for thefederal Universal Service Fund. Nothing in the rules adopted by thecommission shall be inconsistent with the support mechanisms established forthe federal Universal Service Fund, but the commission may adopt anyadditional definitions and standards it believes are necessary to preserve andadvance universal service in the state of Missouri. The commission shalladopt rules governing the operations of the universal service fund and theoperation of the universal service board. Meetings of the universal serviceboard shall be open meetings pursuant to chapter 610, RSMo. The universalservice board shall also retain an independent neutral fund administrator whowill be responsible for the day-to-day operations of the universal servicefund. The fund administrator shall be a fiduciary with trust company powers.The universal service board shall provide for periodic review of the fundadministrator and the opportunity for selection of an alternate fundadministrator no less frequently than every four years. The agency,individual, firm, partnership, or corporation that is selected by thecommission as the neutral administrator of the universal service fund mayneither contribute to nor receive disbursements from the universal servicefund, except as provided in subsection 2 of this section. The administratormay not have any financial interest in a telecommunications company, asdefined in section 386.020, RSMo. The commission shall cause the books andrecords of the universal service fund administrator to be independentlyaudited on an annual basis. The independent audit shall be paid for fromfunds held in the universal service fund.

2. The commission shall adopt and enforce rules to be implemented by theuniversal service board, governing the system of funding and disbursing fundsfrom the universal service fund in a manner that does not grant a preferenceor competitive advantage to any telecommunications company or subject atelecommunications company to prejudice or disadvantage. Funds from theuniversal service fund shall only be used:

(1) To ensure the provision of reasonably comparable essential localtelecommunications service, as that definition may be updated by thecommission by rule, throughout the state including high-cost areas, at just,reasonable and affordable rates;

(2) To assist low-income customers and disabled customers in obtainingaffordable essential telecommunications services; and

(3) To pay the reasonable, audited costs of administering the universalservice fund.

3. The universal service fund shall be funded through assessments on alltelecommunications companies in the state which shall be based on Missourijurisdictional telecommunications services revenue and other nondiscriminatoryfactors as determined by the commission. Such assessments shall be paid tothe universal service board. A telecommunications company regulated undersection 392.245 may, upon providing written notice to the commission, increasethe maximum allowable prices for any or all of its telecommunications servicesexcept residential basic local telecommunications services above those maximumallowable prices otherwise established in section 392.245 by an amount not toexceed the amount required to recover fifty percent of its assessment underthis section. Any increases in the maximum allowable prices for exchangeaccess and basic local telecommunications services other than residentialbasic local telecommunications services shall be calculated to recoverrevenues in the same percentage as the revenues from such services bear tosuch company's total revenues for nonbasic, exchange access and basic localother than residential telecommunications services for the preceding twelvemonths. A telecommunications company regulated under section 392.245 may seekto have the remaining fifty percent of its assessment under this sectionincluded in its funding requirements under this section. The commission shallestablish the level of the universal service fund funding requirementnecessary to fund the purposes set forth in subsection 2 of this section. Theuniversal service fund funding requirements shall be paid by the universalservice board in accordance with procedures approved by the commission. Atelecommunications company that fails to pay an assessment that is due andpayable pursuant to this section may have its certificate revoked or berequired to pay appropriate penalties under chapter 386, RSMo, after noticeand hearing.

4. To facilitate provision of essential local telecommunicationsservice, the commission shall determine whether and to what extent anytelecommunications company in the state providing essential localtelecommunications service in any part of the state, shall be eligible toreceive funding. Eligibility shall be determined as follows:

(1) A telecommunications company's eligibility to receive support forhigh-cost areas from the universal service fund shall be conditioned upon:

(a) The telecommunications company offering essential localtelecommunications service, using its own facilities, in whole or in part,throughout an entire high-cost area and having carrier of last resortobligations in that high-cost area; and

(b) The telecommunications company charging a rate not in excess of thatset by the commission for essential services in a particular geographic area;and

(2) A telecommunications company's eligibility to receive support toassist low-income customers and disabled customers shall be conditioned on thecompany's providing essential local telecommunications services to suchcustomers pursuant to the discounted rate established by the commission forsuch customers. Distributions from the universal service fund shall be madeby the universal service board in accordance with rules approved by thecommission.

5. In local exchange areas subject to competition for essential localtelecommunications service, the incumbent local exchange telecommunicationscompany shall be designated as a carrier of last resort for essential localtelecommunications service. The commission may, consistent with section214(e)(2) of the federal Telecommunications Act of 1996, after notice andhearing, designate one or more additional carriers of last resort for anyexchange or other area designated by the commission upon a finding that suchdesignation is in the public interest. In exchanges where the commission hasdesignated more than one carrier of last resort, the commission may permit alocal exchange telecommunications company to relinquish such obligation,consistent with section 214(e)(4) of the federal Telecommunications Act of1996, upon a finding that at least one carrier of last resort will continue toserve that area. In local exchange areas not subject to competition foressential local telecommunications service, the incumbent local exchangetelecommunications company shall continue to act as the carrier of lastresort.

6. In determining whether, and to what extent, universal service fundfunding is required to facilitate provision of essential localtelecommunications service, the commission shall:

(1) Determine the definition of essential local telecommunicationsservice no later than three months after the adoption of the essential localexchange telecommunications service definition for the federal UniversalService Fund, and consider revision of the definition on a periodic basis notto exceed every three years thereafter, with the goal that every citizen ofthis state shall have access to a wider range of services, that are reasonablycomparable between urban and rural areas, at rates that are reasonablycomparable between urban and rural areas;

(2) Upon request from an eligible telecommunications company forassistance from the universal service fund for a high-cost area, determine ifthe high-cost area qualifies for assistance from the universal service fund.The commission shall review its determination that a high-cost area qualifiesfor assistance from the universal service fund no less frequently than onceevery five years;

(3) Determine for each requesting, eligible local exchangetelecommunications company, by high-cost area, the costs of providingessential local telecommunications services in those high-cost areas andestablish support payments necessary to such companies to ensure just,reasonable and affordable rates for essential telecommunications service. Thecommission shall review such support payments no less frequently than onceevery five years; provided, however, that if the commission adopts a differentdefinition of essential local telecommunications service, pursuant tosubdivision (1) of this subsection, then the commission shall review andadjust accordingly the previously authorized support payments in order toensure just, reasonable and affordable rates for essential telecommunicationsservice, as revised by commission rule. In determining and reviewing suchsupport payments, the commission shall ensure that no telecommunicationscompany receives more or less support than necessary to further the purposesestablished in subsection 2 of this section;

(4) Establish a standard to determine whether and to what extentparticular end-user customers, without regard to location within the state,may be eligible for assistance in paying for essential localtelecommunications service.

7. The commission shall arrange for the time and place for the initialorganizational meeting of the universal service board.

8. The universal service board shall submit to the commission a plan ofoperation. After notice and hearing, the commission shall approve the plan ofoperation, provided that it does not grant a preference or competitiveadvantage to any telecommunications company or subject a telecommunicationscompany to prejudice or disadvantage. In its plan, the universal serviceboard shall establish procedures for the handling and accounting of assets andestablish procedures for the collection of assessments from alltelecommunications companies to provide for universal service payments and foradministrative expenses.

9. The universal service board shall have authority to:

(1) Enter into contracts as are necessary or proper to carry out theprovisions of this section; and

(2) Sue or be sued, including taking any legal actions necessary orproper for recovery of any assessments.

10. No member of the universal service board shall be civilly liable,either jointly or separately, as a result of any act, omission or decision inperformance of the member's duties as specifically required by this section.Such immunity shall not attach for any intentional or reckless act affectingthe property or rights of any person.

11. Nothing in this section shall require the commission, the universalservice board, the universal service fund administrator, or any other personor agency to take any actions that are inconsistent with federal statutes,administrative rules, or court decisions concerning provision of essentiallocal telecommunications service.

12. The commission and the universal service board may do all thingsnecessary and convenient to implement and administer the universal servicefund.

13. In the event of a Federal Communications Commission order, rule orpolicy announced no later than December 31, 1997, pursuant to section254(a)(2) of the federal Telecommunications Act of 1996, the effect of whichis to change the federal Universal Service Fund revenues of an incumbent localexchange telecommunications company, the commission shall either increase themaximum allowable prices for basic local telecommunications service orincrease the company's recovery from the state universal service fund or acombination thereof to replace the reasonably projected change in revenues.The commission shall review the continuing need for such revenues in itsperiodic reviews pursuant to subdivision (3)* of subsection 6 of this section.

(L. 1996 S.B. 507)

*Original rolls contain "subdivision 3 of subsection 6".