Session of 1998
By Representative Vickrey
            9             AN ACT concerning telecommunications; enacting the supplementary
10             metropolitan telephone act; amending K.S.A. 1997 Supp. 66-2008 and
11             repealing the existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14           New Section 1. The commission shall issue an order permitting all
15       telecommunications public utilities to provide toll free service within and
16       between the following groups of counties:
17           (a) Wyandotte, Johnson, Leavenworth, Miami and Douglas;
18           (b) Shawnee, Douglas, Jefferson, Jackson, Wabaunsee, Franklin and
19       Osage;
20           (c) Sedgwick, Butler, Harvey, Reno, Kingman, Cowley and Sumner;
21           (d) Crawford, Neosho, Labette, Cherokee and Bourbon; and
22           (e) Riley, Geary, Pottawatomie and Wabaunsee; and
23           (f) Scott, Lane, Ness, Hodgeman, Gray, Haskell, Grant and Kearny.
24           Sec. 2. K.S.A. 1997 Supp. 66-2008 is hereby amended to read as
25       follows: 66-2008. On or before January 1, 1997, the commission shall
26       establish the Kansas universal service fund, hereinafter referred to as the
27       KUSF.
28           (a) The initial amount of the KUSF shall be comprised of local
29       exchange carrier revenues lost as a result of rate rebalancing pursuant to
30       subsection (c) of K.S.A. 1997 Supp. 66-2005 and subsection (a) of K.S.A.
31       1997 Supp. 66-2007. Such revenues shall be recovered on a revenue neu-
32       tral basis. The revenue neutral calculation shall be based on the volumes
33       and revenues for the 12 months prior to September 30, 1996, adjusted
34       for any rate changes.
35           (b) The commission shall require every telecommunications carrier,
36       telecommunications public utility and wireless telecommunications serv-
37       ice provider that provides intrastate telecommunications services to con-
38       tribute to the KUSF on an equitable and nondiscriminatory basis. Any
39       telecommunications carrier, telecommunications public utility or wireless
40       telecommunications service provider which contributes to the KUSF may
41       collect from customers an amount equal to such carrier's, utility's or pro-
42       vider's contribution.
43           (c) Pursuant to the federal act, distributions from the KUSF shall be

HB 2934


  1       made in a competitively neutral manner to qualified telecommunications
  2       public utilities, telecommunications carriers and wireless telecommuni-
  3       cations providers, that are deemed eligible both under subsection (e)(1)
  4       of section 214 of the federal act and by the commission.
  5           (d) The commission shall periodically review the KUSF to determine
  6       if the costs of qualified telecommunications public utilities, telecommu-
  7       nications carriers and wireless telecommunications service providers to
  8       provide local service justify modification of the KUSF. If the commission
  9       determines that any changes are needed, the commission shall modify
10       the KUSF accordingly.
11           (e) Any qualified telecommunications carrier, telecommunications
12       public utility or wireless telecommunications service provider may re-
13       quest supplemental funding from the KUSF based upon a percentage
14       increase in access lines over the 12 month period prior to its request. The
15       supplemental funding shall be incurred for the purpose of providing serv-
16       ices to and within the service area of the qualified telecommunications
17       carrier, telecommunications public utility or wireless telecommunications
18       service provider. Supplemental funding from the KUSF shall be used for
19       infrastructure expenditures necessary to serve additional customers
20       within the service area of such qualifying utility, provider or carrier. Tel-
21       ecommunications public utilities may also request supplemental funding
22       to recover revenue lost due to the provision of service pursuant to section
23       1. All affected parties shall be allowed to review and verify a request of
24       such a qualified utility, carrier or provider for supplemental funding from
25       the KUSF, and to intervene in any commission proceeding regarding such
26       request. The commission shall issue an order on the request within 120
27       days of filing. Additional funding also may be requested for: the recovery
28       of shortfalls due to additional rebalancing of rates to continue mainte-
29       nance of parity with interstate access rates; shortfalls due to changes to
30       access revenue requirements resulting from changes in federal rules; ad-
31       ditional investment required to provide universal service and enhanced
32       universal service; and for infrastructure expenditures in response to fa-
33       cility or service requirements established by any legislative, regulatory or
34       judicial authority. Such requests shall be subject to simplified filing pro-
35       cedures and the expedited review procedures, as outlined in the stipu-
36       lation attached to the order of November 19, 1990 in docket no. 127,140-
37       U (Phase IV).
38           (f) Additional supplemental funding from the KUSF, other than as
39       provided in subsection (e) of this section, may be authorized at the dis-
40       cretion of the commission. However, the commission may require ap-
41       proval of such funding to be based upon a general rate case filing. With
42       respect to any request for additional supplemental funding from the
43       KUSF, the commission shall act expeditiously, but shall not be subject to

HB 2934


  1       the 120 day deadline set forth in subsection (e).
  2           Sec. 3. K.S.A. 1997 Supp. 66-2008 is hereby repealed.
  3           Sec. 4. This act shall take effect and be in force from and after its
  4       publication in the statute book.