BY SENATORS Lacy, Rizzuto, Blickensderfer, Feeley, and Rupert;
also REPRESENTATIVES Grampsas, Owen, Romero, Dyer,
George, Salaz, and Young.
CONCERNING THE ADMINISTRATION BY THE PUBLIC UTILITIES
COMMISSION OF MECHANISMS FOR THE SUPPORT OF UNIVERSAL TELEPHONE
SERVICE IN HIGH COST AREAS, AND MAKING AN APPROPRIATION IN CONNECTION
THEREWITH.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 4015208,
Colorado Revised Statutes, is amended to read:
4015208. High cost support
mechanism Colorado high cost administration fund
creation purpose operation repeal.
(1) There is hereby created,
in the state treasury, the Colorado high cost fund, referred to
in this section as the "fund", which shall be distributed
as determined by rules promulgated by the commission. Any fund
created prior to April 16, 1992, for a similar purpose by the
commission pursuant to rule is hereby validated.
ALL MONEYS REMAINING IN THE COLORADO HIGH COST FUND AS OF JULY
1, 1998, AND NOT PREVIOUSLY ENCUMBERED BY THE COMMISSION FOR PAYMENT
TO PROVIDERS OF TELECOMMUNICATIONS SERVICE SHALL BE TRANSFERRED
TO THE COLORADO HIGH COST ADMINISTRATION FUND, CREATED IN SUBSECTION
(3) OF THIS SECTION.
(2) (a) THE COMMISSION IS HEREBY
AUTHORIZED TO ESTABLISH A MECHANISM FOR THE SUPPORT OF UNIVERSAL
SERVICE, ALSO REFERRED TO IN THIS SECTION AS THE "HIGH COST
SUPPORT MECHANISM", WHICH SHALL OPERATE IN ACCORDANCE WITH
RULES ADOPTED BY THE COMMISSION. The purpose of the fund
created in this section HIGH COST
SUPPORT MECHANISM is to provide financial assistance to local
exchange carriers
PROVIDERS to help make basic local exchange service affordable
and allow such providers to be fully reimbursed for the difference
between the reasonable costs incurred in making basic service
available to their customers within a rural, highcost geographic
support area and the price charged for such service, after taking
into account any amounts received by such providers under price
support mechanisms established by the federal government and by
this state. The commission shall ensure that no local exchange
provider is receiving funds from this or any other source that,
together with local exchange service revenues, exceeds the cost
of providing local exchange service to customers of such provider.
THE HIGH COST SUPPORT MECHANISM SHALL BE SUPPORTED AND DISTRIBUTED
EQUITABLY AND ON A NONDISCRIMINATORY, COMPETITIVELY NEUTRAL BASIS
THROUGH A RATE ELEMENT ASSESSED ON ALL TELECOMMUNICATIONS SERVICE
PROVIDERS IN COLORADO.
(b) ON OR BEFORE DECEMBER 1 OF EACH YEAR,
THE COMMISSION SHALL SUBMIT A WRITTEN REPORT TO THE GENERAL ASSEMBLY,
IN ACCORDANCE WITH SECTION 241136, C.R.S., ACCOUNTING
FOR THE OPERATION OF THE HIGHCOST SUPPORT MECHANISM DURING
THE PRECEDING CALENDAR YEAR AND CONTAINING THE FOLLOWING INFORMATION,
AT A MINIMUM:
(I) THE TOTAL AMOUNT OF MONEY THAT THE
COMMISSION DETERMINED SHOULD CONSTITUTE THE HIGHCOST SUPPORT
MECHANISM FROM WHICH DISTRIBUTIONS WOULD BE MADE;
(II) THE TOTAL AMOUNT OF MONEY ORDERED
TO BE CONTRIBUTED THROUGH A RATE ELEMENT ASSESSMENT COLLECTED
BY EACH TELECOMMUNICATIONS SERVICE PROVIDER;
(III) THE BASIS ON WHICH THE CONTRIBUTION
OF EACH TELECOMMUNICATIONS SERVICE PROVIDER WAS CALCULATED;
(IV) THE BENCHMARKS USED AND THE BASIS
ON WHICH THE BENCHMARKS WERE DETERMINED;
(V) THE TOTAL AMOUNT OF MONEY THAT THE
COMMISSION DETERMINED SHOULD BE DISTRIBUTED FROM THE HIGHCOST
SUPPORT MECHANISM;
(VI) THE TOTAL AMOUNT OF MONEY DISTRIBUTED
TO EACH TELECOMMUNICATIONS SERVICE PROVIDER FROM THE HIGHCOST
SUPPORT MECHANISM;
(VII) THE BASIS ON WHICH THE DISTRIBUTION
TO TELECOMMUNICATIONS SERVICE PROVIDERS WAS CALCULATED;
(VIII) AS TO EACH TELECOMMUNICATIONS SERVICE
PROVIDER RECEIVING A DISTRIBUTION, THE AMOUNT RECEIVED BY GEOGRAPHIC
SUPPORT AREA AND TYPE OF CUSTOMER, THE WAY IN WHICH THE BENEFIT
OF THE DISTRIBUTION WAS APPLIED OR ACCOUNTED FOR;
(IX) THE PROPOSED BENCHMARKS, THE PROPOSED
CONTRIBUTIONS TO BE COLLECTED THROUGH A RATE ELEMENT ASSESSMENT
BY EACH TELECOMMUNICATIONS PROVIDER, AND THE PROPOSED TOTAL AMOUNT
OF THE HIGHCOST SUPPORT MECHANISM FROM WHICH DISTRIBUTIONS
ARE TO BE MADE FOR THE FOLLOWING CALENDAR YEAR; AND
(X) THE TOTAL AMOUNT OF DISTRIBUTIONS
MADE FROM THE HIGH COST FUND, DIRECTLY OR INDIRECTLY, AND HOW
THEY ARE BALANCED BY RATE REDUCTIONS BY ALL PROVIDERS FOR THE
SAME PERIOD AND A FULL ACCOUNTING OF AND JUSTIFICATION FOR ANY
DIFFERENCE.
(c) IF THE REPORT SUBMITTED PURSUANT TO
PARAGRAPH (b) OF THIS SUBSECTION (2) CONTAINS A PROPOSAL FOR AN
INCREASE IN ANY OF THE AMOUNTS LISTED IN SUBPARAGRAPH (IX) OF
SAID PARAGRAPH (b), SUCH INCREASE SHALL BE SUSPENDED UNTIL MARCH
31 OF THE FOLLOWING YEAR.
(d) (I) THE HIGHCOST SUPPORT
MECHANISM FROM WHICH DISTRIBUTIONS ARE TO BE MADE SHALL NOT EXCEED
SIXTY MILLION DOLLARS DURING EACH OF THE CALENDAR YEARS 1998 AND
1999; EXCEPT THAT, IF ADDITIONAL SERVICES OR CAPABILITIES ARE
INCLUDED IN THE DEFINITION OF BASIC SERVICE PURSUANT TO THE COMMISSION'S
REVIEW AS PROVIDED IN SECTION 4015502 (2), CONTRIBUTIONS
TO AND DISTRIBUTIONS FROM THE HIGHCOST SUPPORT MECHANISM
MAY INCREASE AS MAY BE REASONABLY NECESSARY, AFTER ANY CHANGES
IN BASIC LOCAL EXCHANGE SERVICE OR OTHER RATES ARE MADE, TO COVER
THE COST AND ACCOUNT FOR THE INCLUSION OF SUCH ADDITIONAL SERVICES
AND CAPABILITIES IN THE HIGHCOST SUPPORT MECHANISM. THE
REVIEW PROVIDED FOR IN SECTION 4015502 (2) AND ANY
RELATED CHANGE IN COSTS TO BE RECOVERED THROUGH RATES OF THE HIGHCOST
SUPPORT MECHANISM SHALL BE SUBJECT TO NOTICE AND HEARING PURSUANT
TO COMMISSION RULES. IN ADDITION, IF THE COMMISSION MAKES ANY
CHANGE IN THE DEFINITION OF BASIC LOCAL EXCHANGE SERVICE WHICH,
EITHER ALONE OR IN COMBINATION WITH A RECOMMENDED CHANGE IN THE
CONTRIBUTIONS TO OR DISTRIBUTIONS FROM THE HIGHCOST SUPPORT
MECHANISM, WILL RESULT IN AN INCREASE IN RATES FOR RESIDENTIAL
BASIC LOCAL EXCHANGE SERVICE, THE COMMISSION SHALL REPORT SUCH
FACT IN WRITING TO THE HOUSE AND SENATE BUSINESS AFFAIRS AND LABOR
COMMITTEES TOGETHER WITH A STATEMENT OF THE COMMISSION'S FINDINGS
SUPPORTING SUCH CHANGE AND A JUSTIFICATION FOR SUCH RATE INCREASE.
(II) THIS PARAGRAPH (d) IS REPEALED, EFFECTIVE
DECEMBER 31, 1999.
(3) THERE IS HEREBY CREATED, IN THE STATE
TREASURY, THE COLORADO HIGH COST ADMINISTRATION FUND, REFERRED
TO IN THIS SECTION AS THE "FUND", WHICH SHALL BE USED
TO REIMBURSE THE COMMISSION AND ITS CONTRACTORS FOR REASONABLE
EXPENSES INCURRED IN THE ADMINISTRATION OF THE HIGH COST SUPPORT
MECHANISM AS DETERMINED BY RULES OF THE COMMISSION. The moneys
in the fund that are to be used for THE DIRECT AND INDIRECT administrative
costs incurred by the fund
COMMISSION AND ITS CONTRACTORS shall be appropriated annually
by the general assembly. and the moneys
in the fund that are to be used for the payment of benefits are
hereby continuously appropriated to the commission for the purposes
of this section. At the end of any
fiscal year, all unexpended and unencumbered moneys in the fund
shall remain therein and shall not be credited or transferred
to the general fund or any other fund. BASED UPON THE BALANCE
REMAINING IN THE FUND AND THE AMOUNT APPROPRIATED ANNUALLY BY
THE GENERAL ASSEMBLY FOR USE BY THE COMMISSION, each year the
commission shall determine the costs
incurred in administering the fund and shall determine, together
with any surplus revenues from any prior year, the charge to subscribers
THE NONDISCRIMINATORY, COMPETITIVELY NEUTRAL ASSESSMENT ON ALL
TELECOMMUNICATIONS SERVICE PROVIDERS IN COLORADO that will be
necessary to cover the cost of implementing this
section THE HIGH COST SUPPORT MECHANISM.
ONLY the moneys from such charge
ASSESSMENT shall be transmitted to the state treasurer, who shall
credit the same to the Colorado high
cost fund. The
commission shall be reimbursed from the fund for reasonable expenses
incurred in its administration.
All interest derived from the deposit and investment of this fund
shall remain in the fund and shall not revert to the general fund.
SECTION 2. 4015502
(5) (a), Colorado Revised Statutes, is amended to read:
4015502. Expressions of
state policy. (5) Universal
service support mechanisms. (a) In order to accomplish
the goals of universal basic service, universal access to advanced
service, and any revision of the definition of basic service under
subsection (2) of this section, the commission shall create a
system of support mechanisms to assist in the provision of such
services in highcost areas. These support mechanisms shall
be funded equitably and on a nondiscriminatory, competitively
neutral basis through assessments, WHICH MAY INCLUDE A RATE ELEMENT,
on all telecommunications service providers in Colorado and shall
be distributed equitably and on a nondiscriminatory, competitively
neutral basis. For purposes of administering such support mechanisms,
the commission shall divide the state into reasonably compact,
competitively neutral geographic support areas. A provider's
eligibility to receive support under the support mechanisms shall
be conditioned upon the provider's offering basic service throughout
an entire support area. The commission shall review the costs
of basic service and shall administer such support mechanisms.
SECTION 3. Appropriation
adjustment in 1998 long bill. (1) For
the implementation of this act, appropriations made in the annual
general appropriation act for the fiscal year beginning July 1,
1998, shall be adjusted as follows:
(a) The appropriation made to the department
of regulatory agencies, public utilities commission, high cost
fund payments, is decreased by seventeen million seven hundred
fortysix thousand one hundred seventy dollars ($17,746,170).
Said sum shall be cash funds from the high cost fund.
(b) The appropriation made to the department
of regulatory agencies, public utilities commission, high cost
administration, is increased by eleven thousand five hundred fortyone
dollars ($11,541) and 0.2 FTE. Said sum shall be cash funds exempt
from reserves in the high cost administration fund.
(2) As the result of the passage of this
act, appropriations made in the annual general appropriation act
for the fiscal year beginning July 1, 1998, shall be adjusted
as follows:
(a) The high cost fund payments budget
line shall be called the high cost administration budget line.
(b) The $158,663 cash funds and 1.6 FTE
associated with the high cost fund payment line shall be cash
funds exempt from reserves in the high cost administration fund.
SECTION 4. Effective
date. This act shall take effect July 1, 1998.
SECTION 5. Safety clause.
The general assembly hereby finds, determines, and declares that
this act is necessary for the immediate preservation of the public
peace, health, and safety.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Patricia K. Dicks Judith M. Rodrigue
ASSISTANT SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO