Brief⁽¹⁾

S.B. 86 would amend certain provisions in the Kansas Telecommunications Act of 1996 (Kansas Act) to:

• Change the public policy statement governing the Kansas Act to reflect recommendations, with one exception, made by the Kansas Universal Service Fund (KUSF) Working Committee.

• Amend the definition of "enhanced universal service" in the Kansas Act to conform to the definition of "advanced telecommunications capability" in the Federal Telecommunications Act of 1996 (Federal Act). Moneys from the KUSF may be used to reimburse eligible local telephone companies and other eligible telecommunications carriers for their investments in high-speed, switched, broadband capable services ("enhanced universal service") in high-cost, generally rural, areas of the state. The definition included in the bill is not technology specific.



• Amend the definition of "universal service" to more closely conform that definition to the definition adopted by the Federal Communications Commission.



• Delete the requirement in the Kansas Act that the Kansas Corporation Commission (KCC) adopt, periodically review, and, to the extent necessary, modify the definition of "universal service" and "enhanced universal service." However, the KCC would be required to establish and, to the extent necessary, modify rules and guidelines to determine what services qualify as enhanced, in accordance with the definition proposed in the bill.



• Authorize the KCC to submit its report on the regulatory framework in Kansas, already required in the Kansas Act, by posting its contents on the agency's Internet home page.



• Delete the existing approval procedures for deployment of enhanced universal service. These procedures would be replaced by authorization to the KCC to establish rules and guidelines governing deployment of those services. Local telephone companies that have deployed enhanced universal service prior to July 1, 1999, would be reimbursed from the KUSF if they provide verification, and information concerning timing, of deployment-related expenditures. The deadline of July 1, 2003 in the Kansas Act governing deployment of enhanced universal services would be eliminated.

• Delete three other requirements in the Kansas Act that are no longer relevant:



• the Hill City exchange is now owned by Rural Telephone Company;



• network infrastructure plans had to be filed with the KCC on or before January 1, 1997; and



• the KCC no longer enforces slamming restrictions.

The Commission's authority with respect to enforcement of slamming was shifted to the Attorney General's office pursuant to passage of 1998 House Sub. for S.B. 212.

• Require any company to specifically identify on its customers' bills the amount assessed those customers for KUSF support.



• The bill would take effect upon publication in the Kansas Register.

Background

The introduced version of S.B. 86 would have amended the definition of "enhanced universal service" in the Kansas Act to delete reference to specific telecommunications services. Instead, the KCC would be authorized to determine such services. Conforming amendments are included in other sections of the bill. The bill originated from a recommendation by the KUSF Working Committee to introduce legislation to delete integrated services digital network (ISDN) from the definition of "enhanced universal service" in K.S.A. 66-1,187 (q) in the Kansas Act and from other statutes, as appropriate.

The Senate Committee amended the bill to: amend the definition of "enhanced universal service" to conform to the federal definition of "advanced telecommunications capability"; include, with one modification, amendments to the public policy statement governing the Kansas Act to reflect recommendations by the KUSF Working Committee; authorize the KCC to submit its report on the regulatory framework in Kansas, already required in the Kansas Act, by posting its contents on the agency's Internet home page; authorize local telephone companies to receive reimbursements for enhanced universal service deployed prior to July 1, 1999, (addressing a concern raised by the Kansas Telecommunications Industry Association in testimony on the bill); delete certain statutory requirements from the Kansas Act which are no longer relevant; require any company to specifically identify on its customers' bills the amount assessed those customers for KUSF support (so that customers are aware of their explicit contributions to the Fund); and amend the definition of "universal service" to conform more closely to the Federal Communication Commission's definition of "universal service."

With respect to one of the amendments to the definition of "universal service," conferees representing Sprint and Western Wireless submitted written testimony on S.B. 86 in support of deleting the requirement in the Kansas Act that a telecommunications carrier provide equal access to long distance services as part of its universal service obligations. (The Federal Communications Commission only requires access, but not equal access, to long distance services.) The conferees noted the proposed deletion would correspond to federal law. In their view, retention of the equal access requirement in the Kansas Act would be anti-competitive and may preclude wireless carriers from receiving KUSF support for providing telecommunications services in rural, high-cost areas of Kansas.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html