As Amended by Senate Committee
         
Session of 1999
         
SENATE BILL No. 86
         
By Committee on Commerce
         
1-21
         
10             AN  ACT concerning telecommunications; relating to the definition of
11             enhanced universal service; amending K.S.A. 1998 Supp. 66-1,187, 66-
12             2001, 66-2002 and, 66-2005 and 66-2009; also repealing K.S.A. 66-
13             2012, 66-2013 and 66-2016 and repealing the existing sections.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 1998 Supp. 66-1,187 is hereby amended to read as
17       follows: 66-1,187. As used in this act:
18             (a) "Broadband" means the transmission of digital signals at rates
19       equal to or greater than 1.5 megabits per second.
20             (b) "CLASS services" means custom local area signaling services,
21       which include automatic callback, automatic recall, calling number iden-
22       tification, selective call rejection, selective call acceptance, selective call
23       forwarding, distinctive ringing and customer originated trace.
24             (c) "Commission" means the state corporation commission.
25             (d) "Dialing parity" means that a person that is not an affiliate of a
26       local exchange carrier is able to provide telecommunications services in
27       such a manner that customers have the ability to route automatically,
28       without the use of any access code, their telecommunications to the tel-
29       ecommunications carrier of the customer's designation from among two
30       or more telecommunications carriers, including such local exchange
31       carrier.
32             (e) "Federal act" means the federal telecommunications act of 1996,
33       P.L. 104-104 (amending the communications act of 1934, 47 U.S.C. 151,
34       et seq.)
35             (f) "ISDN" means integrated services digital network which is a net-
36       work and associated technology that provides simultaneous voice and data
37       communications over a single communications channel.
38             (g) "LATA" has the meaning ascribed to it in the federal act.
39             (h) "Local exchange carrier" means any telecommunications public
40       utility or its successor providing switched telecommunications service
41       within any local exchange service area, as approved by the commission
42       on or before January 1, 1996. However, with respect to the Hill City
43       exchange area, in which multiple carriers were certified by the commis-

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  1       sion prior to January 1, 1996, the commission's determination, subject to
  2       any court appeals, of which authorized carrier shall serve as the carrier
  3       of last resort will determine which carrier shall be deemed the local
  4       exchange carrier for that exchange.
  5             (i) "Number portability" has the meaning ascribed to it in the federal
  6       act.
  7             (j) "1 + intraLATA dialing parity" means the ability of a local exchange
  8       service customer to specify the telecommunications or local exchange
  9       carrier that will carry the intraLATA long distance messages when that
10       customer dials either "1" or "0" plus a 10-digit number.
11             (k) "Operating area" means:
12             (1) In the case of a rural telephone company, operating area or service
13       area means such company's study area or areas as approved by the federal
14       communications commission;
15             (2) in the case of a local exchange carrier, other than a rural telephone
16       company, operating area or service area means such carrier's local
17       exchange service area or areas as approved by the commission.
18             (l) "Rural telephone company" has the meaning ascribed to it in the
19       federal act, excluding any local exchange carrier which together with all
20       of its affiliates has 20,000 or more access lines in the state.
21             (m) "Telecommunications carrier" means a corporation, company,
22       individual, association of persons, their trustees, lessees or receivers that
23       provides a telecommunications service, including, but not limited to, in-
24       terexchange carriers and competitive access providers, but not including
25       local exchange carriers certified before January 1, 1996.
26             (n) "Telecommunications public utility" means any public utility, as
27       defined in K.S.A. 66-104, and amendments thereto, which owns, controls,
28       operates or manages any equipment, plant or generating machinery, or
29       any part thereof, for the transmission of telephone messages, as defined
30       in K.S.A. 66-104, and amendments thereto, or the provision of telecom-
31       munications services in or throughout any part of Kansas.
32             (o) "Telecommunications service" means the provision of a service
33       for the transmission of telephone messages, or two-way video or data
34       messages.
35             (p) "Universal service" means telecommunications services and fa-
36       cilities which include: single party, two-way voice grade calling; stored
37       program controlled switching with vertical service capability; E911 ca-
38       pability; tone dialing; access to operator services; access to directory as-
39       sistance; and equal access to long distance services and toll blocking or
40       toll control.
41             (q) "Enhanced universal service" means telecommunications serv-
42       ices, in addition to other than those included in universal service, which
43       shall include: Signaling system seven capability, with CLASS service ca-

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  1       pability; basic and primary rate ISDN capability, or the technological
  2       equivalent; full-fiber interconnectivity, or the technological equivalent,
  3       between central offices; and broadband capable facilities to: All schools
  4       accredited pursuant to K.S.A. 72-1101 et seq., and amendments thereto;
  5       hospitals as defined in K.S.A. 65-425, and amendments thereto; public
  6       libraries; and state and local government facilities which request broad-
  7       band services such advanced telecommunication services as the commis-
  8       sion may determine, without regard to any transmission media or
  9       technology, high-speed, switched, broadband telecommunications
10       capability that enables users to originate and receive high-quality
11       voice, data, graphics and video telecommunications using any
12       technology.
13        Sec.  2. K.S.A. 1998 Supp. 66-2001 is hereby amended to read
14       as follows: 66-2001. It is hereby declared to be the public policy of
15       the state to:
16             (a) Ensure that every Kansan will have access to a first class
17       telecommunications infrastructure that provides excellent services
18       at an affordable price;
19             (b) ensure that conditions exist for consumers throughout the state
20       to realize the benefits of competition through increased services and
21       improved telecommunications facilities and infrastructure at re-
22       duced reasonable rates;
23             (c) promote consumer access to a full range of telecommunica-
24       tions services, including advanced telecommunications services that
25       are comparable in urban and rural areas throughout the state;
26             (d) advance the development of a statewide telecommunications
27       infrastructure that is capable of supporting applications, such as
28       public safety, telemedicine, services for persons with special needs,
29       distance learning, public library services, access to internet provid-
30       ers and others; and
31             (e) protect consumers of telecommunications services from
32       fraudulent business practices and practices that are inconsistent
33       with the public interest, convenience and necessity.; and
34             (f) foster conditions for continuous innovation of information net-
35       working and telecommunications.
36             Sec.  2. 3. K.S.A. 1998 Supp. 66-2002 is hereby amended to read as
37       follows: 66-2002. The commission shall:
38             (a) Adopt and periodically update a definition of "universal service"
39       and "enhanced universal service," pursuant to subsections (p) and (q) of
40       K.S.A. 1998 Supp. 66-1,187, and amendments thereto;
41             (b) (a) authorize Authorize any requesting telecommunications car-
42       rier to provide local exchange or exchange access service pursuant to
43       subsection (a) of K.S.A. 1998 Supp. 66-2003, and amendments thereto;

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  1             (c) (b) on or before July 1, 1996, the commission shall initiate a pro-
  2       ceeding to adopt guidelines to ensure that all telecommunications carriers
  3       and local exchange carriers preserve and enhance universal service, pro-
  4       tect the public safety and welfare, ensure the continued quality of tele-
  5       communications services and safeguard the rights of consumers;
  6             (d) review, approve and ensure compliance with network infrastruc-
  7       ture plans submitted by local exchange carriers pursuant to K.S.A. 1998
  8       Supp. 66-2005, and amendments thereto;
  9             (e) (c) review, approve and ensure compliance with regulatory plans
10       submitted by local exchange carriers pursuant to K.S.A. 1998 Supp. 66-
11       2005, and amendments thereto;
12             (f) (d) on or before January 1, 1997, establish, pursuant to K.S.A.
13       1998 Supp. 66-2006, and amendments thereto, the Kansas lifeline service
14       program, hereinafter referred to as the KLSP;
15             (g) (e) initiate and complete a proceeding by January 1, 1997, to
16       establish a competitively neutral mechanism or mechanisms to fund: dual
17       party relay services for Kansans who are speech or hearing impaired;
18       telecommunications equipment for persons with visual impediments; and
19       telecommunications equipment for persons with other special needs. This
20       funding mechanism or mechanisms shall be implemented by March 1,
21       1997;
22             (h) (f) on or before January 1, 1997, establish the Kansas universal
23       service fund pursuant to K.S.A. 1998 Supp. 66-2008, and amendments
24       thereto, hereinafter referred to as the KUSF, and make various deter-
25       minations relating to the implementation of such fund;
26             (i) (g) authorize all local exchange carriers to provide internet access
27       as outlined in K.S.A. 1998 Supp. 66-2011, and amendments thereto, and
28       report on the status of the implementation provisions to specified legis-
29       lative committees;
30             (j) review the federal act and adopt additional standards and guide-
31       lines as necessary for enforcing slamming restrictions;
32             (k) (h) commencing on June 1, 1997 and periodically thereafter, re-
33       view and, to the extent necessary, modify the definition of universal serv-
34       ice and enhanced universal service, and KUSF, establish and, to the
35       extent necessary, modify rules and guidelines to determine what
36       services qualify as enhanced universal services, pursuant to sub-
37       section (q) of K.S.A. 66-1,187 and amendments thereto, taking into
38       account advances in telecommunications and information technology and
39       services;
40             (l) (i) on or before January 1, 1997, initiate and complete a proceed-
41       ing to establish minimum quality of service standards which will be
42       equally applicable to all local exchange carriers and telecommunications
43       carriers in the state; any local exchange carrier or telecommunications

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  1       carrier violating such standards, for each occurrence, shall forfeit and pay
  2       a penalty of not less than $100, nor more than $5,000; violations of such
  3       standards shall be enforced in accordance with provisions of K.S.A. 66-
  4       138 and 66-177, and amendments thereto; and
  5             (m) (j) on January 1, 2000, prepare and submit a report to the leg-
  6       islature. The report shall include an analysis of the manner in which the
  7       regulatory framework has served to: Protect consumers; safeguard uni-
  8       versal service; ensure that consumers have reaped the benefits of com-
  9       petition; maximize the use of market forces; and promote development
10       of the telecommunications infrastructure throughout the state. The com-
11       mission also shall recommend if and how the KUSF should be modified.
12        The commission may submit the report by posting the report's
13       contents on the commission's internet homepage and notifying the
14       legislature of the report's availability.
15             Sec.  3. 4. K.S.A. 1998 Supp. 66-2005 is hereby amended to read as
16       follows: 66-2005. (a) Each local exchange carrier shall file a network in-
17       frastructure plan with the commission on or after January 1, 1997, and
18       prior to January 1, 1998. Each plan, as a part of universal service protec-
19       tion, shall include schedules, which shall be approved by the commission,
20       for deployment of universal service capabilities by July 1, 1998, and the
21       deployment of enhanced universal service capabilities by July 1, 2003, as
22       defined pursuant to subsections (p) and (q) of K.S.A. 1998 Supp. 66-1,187
23       and amendments thereto, respectively as the commission may deter-
24       mine by rules and guidelines. With respect to enhanced universal serv-
25       ice, such schedules shall provide for deployment of ISDN, or its tech-
26       nological equivalent, or broadband facilities, only upon a firm customer
27       order for such service, or for deployment of other enhanced universal
28       services by a local exchange carrier. After receipt of such an order and
29       upon completion of a deployment plan designed to meet the firm order
30       or otherwise provide for the deployment of enhanced universal service,
31       a local exchange carrier shall notify the commission. The commission shall
32       approve the plan unless the commission determines that the proposed
33       deployment plan is unnecessary, inappropriate, or not cost effective, or
34       would create an unreasonable or excessive demand on the KUSF. The
35       commission shall take action within 90 days. If the commission fails to
36       take action within 90 days, the deployment plan shall be deemed ap-
37       proved. This approval process shall continue until July 1, 2000. Each plan
38       shall demonstrate the capability of the local exchange carrier to comply
39       on an ongoing basis with quality of service standards to be adopted by
40       the commission no later than January 1, 1997. Those local exchange
41       carriers that have deployed enhanced universal service, prior to
42       July 1, 1999, will be eligible for reimbursement from the KUSF
43       pending verification of the expenditure, the timing of the expendi-

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  1       ture and the associated costs.
  2             (b) In order to protect universal service, facilitate the transition to
  3       competitive markets and stimulate the construction of an advanced tel-
  4       ecommunications infrastructure, each local exchange carrier shall file a
  5       regulatory reform plan at the same time as it files the network infrastruc-
  6       ture plan required in subsection (a). As part of its regulatory reform plan,
  7       a local exchange carrier may elect traditional rate of return regulation or
  8       price cap regulation. Carriers that elect price cap regulation shall be ex-
  9       empt from rate base, rate of return and earnings regulation. However,
10       the commission may resume such regulation upon finding, after a hearing,
11       that a carrier that is subject to price cap regulation has: violated minimum
12       quality of service standards pursuant to subsection (l) of K.S.A. 1998
13       Supp. 66-2002 and amendments thereto; been given reasonable notice
14       and an opportunity to correct the violation; and failed to do so. Regulatory
15       reform plans also shall include: (1) a commitment to provide existing
16       and newly ordered point-to-point broadband services to: Any hospital as
17       defined in K.S.A. 65-425, and amendments thereto; any school accredited
18       pursuant to K.S.A. 72-1101 et seq., and amendments thereto; any public
19       library; or other state and local government facilities at discounted prices
20       close to, but not below, long-run incremental cost; and
21             (2) a commitment to provide basic rate ISDN service, or the tech-
22       nological equivalent, at prices which are uniform throughout the carrier's
23       service area. Local exchange carriers shall not be required to allow retail
24       customers purchasing the foregoing discounted services to resell those
25       services to other categories of customers. Telecommunications carriers
26       may purchase basic rate ISDN services, or the technological equivalent,
27       for resale in accordance with K.S.A. 1998 Supp. 66-2003 and amendments
28       thereto. The commission may reduce prices charged for services outlined
29       in provisions (1) and (2) of this subsection, if the commitments of the
30       local exchange carrier set forth in those provisions are not being kept.
31             (c) Subject to the commission's approval, all local exchange carriers
32       shall reduce intrastate access charges to interstate levels as provided
33       herein. Rates for intrastate switched access, and the imputed access por-
34       tion of toll, shall be reduced over a three-year period with the objective
35       of equalizing interstate and intrastate rates in a revenue neutral, specific
36       and predictable manner. The commission is authorized to rebalance local
37       residential and business service rates to offset the intrastate access and
38       toll charge reductions. Any remaining portion of the reduction in access
39       and toll charges not recovered through local residential and business serv-
40       ice rates shall be paid out from the KUSF pursuant to K.S.A. 1998 Supp.
41       66-2008 and amendments thereto. Rural telephone companies shall re-
42       duce their intrastate switched access rates to interstate levels on March
43       1, 1997, and every two years thereafter, as long as amounts equal to such

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  1       reductions are recovered from the KUSF.
  2             (d) Beginning March 1, 1997, each rural telephone company shall
  3       have the authority to increase annually its monthly basic local residential
  4       and business service rates by an amount not to exceed $1 in each 12
  5       month period until such monthly rates reach an amount equal to the
  6       statewide rural telephone company average rates for such services. The
  7       statewide rural telephone company average rates shall be the arithmetic
  8       mean of the lowest flat rate as of March 1, 1996, for local residential
  9       service and for local business service offered by each rural telephone
10       company within the state. In the case of a rural telephone company which
11       increases its local residential service rate or its local business service rate,
12       or both, to reach the statewide rural telephone company average rate for
13       such services, the amount paid to the company from the KUSF shall be
14       reduced by an amount equal to the additional revenue received by such
15       company through such rate increase. In the case of a rural telephone
16       company which elects to maintain a local residential service rate or a local
17       business service rate, or both, below the statewide rural telephone com-
18       pany average, the amount paid to the company from the KUSF shall be
19       reduced by an amount equal to the difference between the revenue the
20       company could receive if it elected to increase such rate to the average
21       rate and the revenue received by the company.
22             (e) For regulatory reform plans in which price cap regulation has
23       been elected, price cap plans shall have three baskets: Residential and
24       single-line business, including touch-tone tone dialing; switched access
25       services; and miscellaneous services. The commission shall establish price
26       caps at the prices existing when the regulatory plan is filed subject to rate
27       rebalancing as provided in subsection (c) for residential services, includ-
28       ing touch-tone tone dialing services, and for single-line business services,
29       including touch-tone services, within the residential and single-line busi-
30       ness service basket. The commission shall establish a formula for adjust-
31       ments to the price caps. The commission also shall establish price caps
32       at the prices existing when the regulatory plan is filed for the miscella-
33       neous services basket. The commission shall approve any adjustments to
34       the price caps for the miscellaneous service basket, as provided in sub-
35       section (f).
36             (f) On or before January 1, 1997, the commission shall issue a final
37       order in a proceeding to determine the price cap adjustment formula that
38       shall apply to the price caps for the local residential and single-line busi-
39       ness and the miscellaneous services baskets and for sub-categories, if any,
40       within those baskets. In determining this formula, the commission shall
41       balance the public policy goals of encouraging efficiency and promoting
42       investment in a quality, advanced telecommunications network in the
43       state. The commission also shall establish any informational filing require-

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  1       ments necessary for the review of any price cap tariff filings, including
  2       price increases or decreases within the caps, to verify such caps would
  3       not be exceeded by any proposed price change. The adjustment formula
  4       shall apply to the price caps for the local residential and single-line busi-
  5       ness basket after December 31, 1999, and to the miscellaneous services
  6       basket after December 31, 1997. The price cap formula, but not actual
  7       prices, shall be reviewed every five years.
  8             (g) The price caps for the residential and single-line business service
  9       basket shall be capped at their initial level until January 1, 2000, except
10       for any increases authorized as a part of the revenue neutral rate rebal-
11       ancing under subsection (c). The price caps for this basket and for the
12       categories in this basket, if any, shall be adjusted annually after December
13       31, 1999, based on the formula determined by the commission under
14       subsection (f).
15             (h) The price cap for the switched access service basket shall be set
16       based upon the local exchange carrier's intrastate access tariffs as of Jan-
17       uary 1, 1997, except for any revenue neutral rate rebalancing authorized
18       in accordance with subsection (c). Thereafter, the cap for this basket shall
19       not change except in connection with any subsequent revenue neutral
20       rebalancing authorized by the commission under subsection (c).
21             (i) The price caps for the miscellaneous services basket shall be ad-
22       justed annually after December 31, 1997, based on the adjustment for-
23       mula determined by the commission under subsection (f).
24             (j) A price cap is a maximum price for all services taken as a whole
25       in a given basket. Prices for individual services may be changed within
26       the service categories, if any, established by the commission within a
27       basket. An entire service category, if any, within the residential and single-
28       line business basket or miscellaneous services basket may be priced below
29       the cap for such category. Unless otherwise approved by the commission,
30       no service shall be priced below the price floor which will be long-run
31       incremental cost and imputed access charges. Access charges equal to
32       those paid by telecommunications carriers to local exchange carriers shall
33       be imputed as part of the price floor for toll services offered by local
34       exchange carriers on a toll service basis.
35             (k) A local exchange carrier may offer promotions within an exchange
36       or group of exchanges. All promotions shall be approved by the commis-
37       sion and shall apply to all customers in a nondiscriminatory manner within
38       the exchange or group of exchanges.
39             (l) Unless the commission authorizes price deregulation at an earlier
40       date, intrastate toll services within the miscellaneous services basket shall
41       continue to be regulated until the affected local exchange carrier begins
42       to offer 1 intraLATA dialing parity throughout its service territory, at
43       which time intrastate toll will be price deregulated, except that prices

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  1       cannot be set below the price floor.
  2             (m) On or before July 1, 1997, the commission shall establish guide-
  3       lines for reducing regulation prior to price deregulation of price cap reg-
  4       ulated services in the miscellaneous services basket, the switched access
  5       services basket, and the residential and single-line business basket.
  6             (n) Subsequent to the adoption of guidelines pursuant to subsection
  7       (m), the commission shall initiate a petitioning procedure under which
  8       the local exchange carrier may request rate range pricing. The commis-
  9       sion shall act upon a petition within 21 days, subject to a 30-day suspen-
10       sion. The prices within a rate range shall be tariffed and shall apply to all
11       customers in a nondiscriminatory manner in an exchange or group of
12       exchanges.
13             (o) A local exchange carrier may petition the commission to designate
14       an individual service or service category, if any, within the miscellaneous
15       services basket, the switched access services basket or the residential and
16       single-line business basket for reduced regulation. The commission shall
17       act upon a petition for reduced regulation within 21 days, subject to a
18       suspension period of an additional 30 days, and upon a good cause show-
19       ing of the commission in the suspension order, or within such shorter
20       time as the commission shall approve. The commission shall issue a final
21       order within the 21-day period or within a 51-day period if a suspension
22       has been issued. Following an order granting reduced regulation of an
23       individual service or service category, the commission shall act on any
24       request for price reductions within seven days subject to a 30-day sus-
25       pension. The commission shall act on other requests for price cap ad-
26       justments, adjustments within price cap plans and on new service offer-
27       ings within 21 days subject to a 30-day suspension. Such a change will be
28       presumed lawful unless it is determined the prices are below the price
29       floor or that the price cap for a category, if any, within the entire basket
30       has been exceeded.
31             (p) The commission may price deregulate within an exchange area,
32       or at its discretion on a statewide basis, any individual service or service
33       category upon a finding by the commission that there is a telecommuni-
34       cations carrier or an alternative provider providing a comparable product
35       or service, considering both function and price, in that exchange area.
36       The commission shall act upon a petition for price deregulation within
37       21 days, subject to a suspension period of an additional 30 days, and upon
38       a good cause showing of the commission in the suspension order, or
39       within such shorter time as the commission shall approve; provided that
40       no such petition shall be filed prior to July 1997, unless the commission
41       otherwise authorizes. The commission shall issue a final order within the
42       21-day period or within a 51-day period if a suspension has been issued.
43             (q) Upon complaint or request, the commission may investigate a

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  1       price deregulated service. The commission shall resume price regulation
  2       of a service provided in any exchange area by placing it in the appropriate
  3       service basket, as approved by the commission, upon a determination by
  4       the commission that there is no longer a telecommunications carrier or
  5       alternative provider providing a comparable product or service, consid-
  6       ering both function and price, in that exchange area.
  7             (r) The commission shall require that for all local exchange carriers
  8       all such price deregulated basic intraLATA toll services be geographically
  9       averaged statewide and not be priced below the price floor established
10       in subsection (j).
11             (s) Cost studies to determine price floors shall be performed as re-
12       quired by the commission in response to complaints. In addition, not-
13       withstanding the exemption in subsection (b), the commission may re-
14       quest information necessary to execute any of its obligations under the
15       act.
16             (t) A local exchange carrier may petition for individual customer pric-
17       ing. The commission shall respond expeditiously to the petition within a
18       period of not more than 30 days subject to a 30-day suspension.
19             (u) No audit, earnings review or rate case shall be performed with
20       reference to the initial prices filed as required herein.
21             (v) Telecommunications carriers shall not be subject to price regu-
22       lation, except that: Access charge reductions shall be passed through to
23       consumers by reductions in basic intrastate toll prices; and basic toll prices
24       shall remain geographically averaged statewide. As required under K.S.A.
25       66-131, and amendments thereto, and except as provided for in subsec-
26       tion (c) of K.S.A. 1998 Supp. 66-2004 and amendments thereto, telecom-
27       munications carriers that were not authorized to provide switched local
28       exchange telecommunications services in this state as of July 1, 1996,
29       including cable television operators who have not previously offered tel-
30       ecommunications services, must receive a certificate of convenience
31       based upon a demonstration of technical, managerial and financial via-
32       bility and the ability to meet quality of service standards established by
33       the commission. Any telecommunications carrier or other entity seeking
34       such certificate shall file a statement, which shall be subject to the com-
35       mission's approval, specifying with particularity the areas in which it will
36       offer service, the manner in which it will provide the service in such areas
37       and whether it will serve both business customers and residential custom-
38       ers in such areas. Any structurally separate affiliate of a local exchange
39       carrier that provides telecommunications services shall be subject to the
40       same regulatory obligations and oversight as a telecommunications car-
41       rier, as long as the local exchange carrier's affiliate obtains access to any
42       services or facilities from its affiliated local exchange carrier on the same
43       terms and conditions as the local exchange carrier makes those services

SB 86--Am.

11

  1       and facilities available to other telecommunications carriers. The com-
  2       mission shall oversee telecommunications carriers to prevent fraud and
  3       other practices harmful to consumers and to ensure compliance with
  4       quality of service standards adopted for all local exchange carriers and
  5       telecommunications carriers in the state.
  6        Sec.  5. K.S.A. 1998 Supp. 66-2009 is hereby amended to read
  7       as follows: 66-2009. (a) Local exchange carriers that provided
  8       switched local exchange services in the state prior to January 1,
  9       1996, or their successors, shall serve as the carrier of last resort in
10       their exchanges and shall be eligible to receive KUSF funding. How-
11       ever, with respect to the Hill City exchange area in which multiple carriers
12       were certified prior to January 1, 1996, the commission's determination,
13       subject to court appeals, shall determine which authorized carrier shall
14       serve as carrier of last resort. The local exchange carrier serving as
15       the carrier of last resort shall remain the carrier of last resort and
16       shall be entitled to recover the costs of serving as carrier of last
17       resort.
18             (b) Beginning March 1, 1997, the amount of KUSF funds owed
19       to each qualifying telecommunications carrier, telecommunications
20       public utility or wireless telecommunications service provider in
21       the state, based upon the revenue requirements assigned to the
22       funds for such qualifying utility, carrier or provider, shall be allo-
23       cated by the fund administrator in equal monthly installments.
24             (c) Any carrier that collects amounts from its customers to offset its
25       KUSF contribution shall specifically identify the amount as a separate
26       item on each bill.
27        Sec.  4. 6. K.S.A. 1998 Supp. 66-1,187, 66-2001, 66-2002 and, 66-
28       2005, 66-2009, 66-2012, 66-2013 and 66-2016 are hereby repealed.
29        Sec.  5. 7. This act shall take effect and be in force from and after its
30       publication in the statute book Kansas register.