Session of 1998
By Committee on Utilities
            9             AN ACT concerning the telecommunications act; relating to contribu-
10             tions to the Kansas universal service fund; amending K.S.A. 1997 Supp.
11             66-2008 and repealing the existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 1997 Supp. 66-2008 is hereby amended to read as
15       follows: 66-2008. On or before January 1, 1997, the commission shall
16       establish the Kansas universal service fund, hereinafter referred to as the
17       KUSF.
18           (a) The initial amount of the KUSF shall be comprised of local
19       exchange carrier revenues lost as a result of rate rebalancing pursuant to
20       subsection (c) of K.S.A. 1997 Supp. 66-2005 and subsection (a) of K.S.A.
21       1997 Supp. 66-2007. Such revenues shall be recovered on a revenue neu-
22       tral basis. The revenue neutral calculation shall be based on the volumes
23       and revenues for the 12 months prior to September 30, 1996, adjusted
24       for any rate changes.
25           (b) The commission shall require every telecommunications carrier,
26       telecommunications public utility and wireless telecommunications serv-
27       ice provider that provides intrastate telecommunications services to con-
28       tribute to the KUSF on an equitable and nondiscriminatory basis. Any
29       telecommunications carrier, telecommunications public utility or wireless
30       telecommunications service provider which contributes to the KUSF may
31       collect from customers an amount equal to such carrier's, utility's or pro-
32       vider's contribution.
33           (c) Pursuant to the federal act, distributions from the KUSF shall be
34       made in a competitively neutral manner to qualified telecommunications
35       public utilities, telecommunications carriers and wireless telecommuni-
36       cations providers, that are deemed eligible both under subsection (e)(1)
37       of section 214 of the federal act and by the commission.
38           (d) The commission shall periodically review the KUSF to determine
39       if the costs of qualified telecommunications public utilities, telecommu-
40       nications carriers and wireless telecommunications service providers to
41       provide local service justify modification of the KUSF. If the commission
42       determines that any changes are needed, the commission shall modify
43       the KUSF accordingly, except that the commission may not approve any

HB 2802


  1       increase in the level of required contributions from the level existing on
  2       January 1, 1998, until after January 1, 2000. Nothing in this subsection
  3       shall prevent the commission from reducing the level of required contri-
  4       butions.
  5           (e) Any qualified telecommunications carrier, telecommunications
  6       public utility or wireless telecommunications service provider may re-
  7       quest supplemental funding from the KUSF based upon a percentage
  8       increase in access lines over the 12 month period prior to its request. The
  9       supplemental funding shall be incurred for the purpose of providing serv-
10       ices to and within the service area of the qualified telecommunications
11       carrier, telecommunications public utility or wireless telecommunications
12       service provider. Supplemental funding from the KUSF shall be used for
13       infrastructure expenditures necessary to serve additional customers
14       within the service area of such qualifying utility, provider or carrier. All
15       affected parties shall be allowed to review and verify a request of such a
16       qualified utility, carrier or provider for supplemental funding from the
17       KUSF, and to intervene in any commission proceeding regarding such
18       request. The commission shall issue an order on the request within 120
19       days of filing. Additional funding also may be requested for: the recovery
20       of shortfalls due to additional rebalancing of rates to continue mainte-
21       nance of parity with interstate access rates; shortfalls due to changes to
22       access revenue requirements resulting from changes in federal rules; ad-
23       ditional investment required to provide universal service and enhanced
24       universal service; and for infrastructure expenditures in response to fa-
25       cility or service requirements established by any legislative, regulatory or
26       judicial authority. Such requests shall be subject to simplified filing pro-
27       cedures and the expedited review procedures, as outlined in the stipu-
28       lation attached to the order of November 19, 1990 in docket no. 127,140-
29       U (Phase IV).
30           (f) Additional supplemental funding from the KUSF, other than as
31       provided in subsection (e) of this section, may be authorized at the dis-
32       cretion of the commission. However, the commission may require ap-
33       proval of such funding to be based upon a general rate case filing. With
34       respect to any request for additional supplemental funding from the
35       KUSF, the commission shall act expeditiously, but shall not be subject to
36       the 120 day deadline set forth in subsection (e).
37           Sec. 2. K.S.A. 1997 Supp. 66-2008 is hereby repealed.
38           Sec. 3. This act shall take effect and be in force from and after its
39       publication in the Kansas register.