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AN ACT concerning telecommunications; relating to the Kansas universal
  service fund; amending K.S.A. 1996 Supp. 66-2008 and repealing the
  existing section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 66-2008 is hereby amended to read as
follows: 66-2008. On or before January 1, 1997, the commission shall
establish the Kansas universal service fund, hereinafter referred to as the
KUSF.
  (a)  The initial amount of the KUSF shall be comprised of local
exchange carrier revenues lost as a result of rate rebalancing pursuant to
subsection (c) of K.S.A. 1996 Supp. 66-2005 and subsection (a) of K.S.A.
1996 Supp. 66-2007, and amendments thereto. Such revenues shall be
recovered on a revenue neutral basis. The revenue neutral calculation
shall be based on the volumes and revenues for the 12 months prior to
September 30, 1996, adjusted for any rate changes.
  (b)  The commission shall require every telecommunications carrier,
telecommunications public utility and wireless telecommunications serv-
ice provider that provides intrastate telecommunications services to con-
tribute to the KUSF on an equitable and nondiscriminatory basis. Any
telecommunications carrier, telecommunications public utility or wireless
telecommunications service provider which contributes to the KUSF may
collect from customers an amount equal to such carrier's, utility's or prov-
ider's contribution.
  (c)  Pursuant to the federal act, distributions from the KUSF shall be
made in a competitively neutral manner to qualified telecommunications
public utilities, telecommunications carriers and wireless telecommuni-
cations providers, that are deemed eligible both under subsection (e)(1)
of section 214 of the federal act and by the commission.
  (d)  The commission shall periodically review the KUSF to determine
if the costs of qualified telecommunications public utilities, telecommu-
nications carriers and wireless telecommunications service providers to
provide local service justify modification of the KUSF. If the commission
determines that any changes are needed, the commission shall modify
SB 301
                                     

 1  the KUSF accordingly.
 2    (e)  Any qualified telecommunications carrier, telecommunications
 3  public utility or wireless telecommunications service provider may re-
 4  quest supplemental funding from the KUSF based upon a percentage
 5  increase in access lines over the 12 month period prior to its request. The
 6  supplemental funding shall be incurred for the purpose of providing serv-
 7  ices to and within the service area of the qualified telecommunications
 8  carrier, telecommunications public utility or wireless telecommunications
 9  service provider. Supplemental funding from the KUSF shall be used for
10  infrastructure expenditures necessary to serve additional customers
11  within the service area of such qualifying utility, provider or carrier. All
12  affected parties shall be allowed to review and verify a request of such a
13  qualified utility, carrier or provider for supplemental funding from the
14  KUSF, and to intervene in any commission proceeding regarding such
15  request. The commission shall issue an order on the request within 120
16  days of filing. Additional funding also may be requested for: the recovery
17  of shortfalls due to additional rebalancing of rates to continue mainte-
18  nance of parity with interstate access rates; shortfalls due to changes to
19  access revenue requirements resulting from changes in federal rules; ad-
20  ditional investment required to provide universal service and enhanced
21  universal service; and for infrastructure expenditures in response to fa-
22  cility or service requirements established by any legislative, regulatory or
23  judicial authority. Such requests shall be subject to simplified filing pro-
24  cedures and the expedited review procedures, as outlined in the stipu-
25  lation attached to the order of November 19, 1990 in docket no. 127,140-
26  U (Phase IV). Supplemental and additional KUSF funding for the
27  purposes set forth in this subsection is intended to support and shall be
28  available for single and multiple line business service and for single and
29  multiple line residential service.
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. 1996 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 statute book.