SECTION 68. PSC 160.11(7) is created to read:
(7) A school, library or library system receiving discounts under the federal schools and libraries universal service program in a given month may not receive state discounts under this section for the same service for that month.
SECTION 69. PSC 160.125(title) is created to read:
PSC 160.125 Funding to promote access to telecommunications services.
SECTION 70. PSC 160.125(1)(c) is created to read:
(c) A qualifying agency or authority administering or providing voice-mail service to homeless clients may request reimbursement for its costs directly attributable to administering and providing the voice-mail boxes for the benefit of its homeless clients.
SECTION 71. PSC 160.125(2) is created to read:
(2) ACCESS PROGRAMS OR PROJECTS BY NONPROFIT GROUPS. (a) Partial funding may be available to nonprofit groups for the facilitation of affordable access to telecommunications and information services through programs or projects, or both, not supported elsewhere in this chapter, but that are consistent with the purposes identified in s. 196.218(5)(a)1. to 3., Stats.
Note: As of February 1999, s. 196.218(5)(a)1. to 3., Stats., reads:
(5) Uses of the fund. (a) The commission shall require that moneys in the universal service fund be used only for any of the following purposes:
1. To assist customers located in areas of this state that have relatively high costs of telecommunications services, low-income customers and disabled customers in obtaining affordable access to a basic set of essential telecommunications services.
2. To assist in the deployment of advanced service capabilities of a modern telecommunications infrastructure throughout this state.
3. To promote affordable access throughout this state to high-quality education, library and health care information services.
(b) Any non-profit organization may apply for universal service funding to fund any portion of a program or project or both. Funding will be provided on a state fiscal year basis. Applications for funding in the following fiscal year must be submitted by November 15th. The commission will issue a list of approved programs or projects, or both, by April 15th, with funding for those projects to begin that July 1st. All applications will become public documents upon filing.
(c) Applications must include:
  1. A description of a public need which is not being met at present;
  2. A description of how the program or project is consistent with the purposes identified in s. 196.218(5)(a)1. to 3., Stats.
  3. A description of the program or project proposed, including a description of how the public need described in subd. 1. may be met using telecommunications or information services;
  4. A showing that the proposed project meets the described public need in a least cost manner. This requirement can be met by showing that the applicant carried out an appropriate request for proposals.
  5. Identification of the providers of each portion of the telecommunications services or equipment and a specific description of the following components of the program or project:
a. The costs of telecommunications services and telecommunications equipment used by the project;
b. The cost of training for those who are served by the program or project so that they can utilize the services;
c. The administrative costs directly attributable to the program or project;
d. The cost of technical expertise required to complete the program or project; and
e. Revenue from services or training described in subd. 5.b.
(d) The commission will evaluate all applications submitted. In evaluating the applications the commission shall consider information including, but not limited to, the following:
1. The basis of the public need to be met;
2. The extent to which other programs or projects, either funded under this section or otherwise under this chapter, meet that need; and
3. The overall cost of the proposed program or project.
(e) The universal service fund will reimburse applicants for up to 50% of the cost of reimbursable portions of the program or project, or both. The reimbursable costs include those listed in par. (c)5.a. to d.
(f) The programs or projects, or both, to be funded and the amount of reimbursement for each program or project will be determined by the commission. The commission will seek comments on the programs or projects to be funded, but will not hold a hearing. A maximum of $500,000 in funding will be dispersed under this subsection per calendar year.
SECTION 72. PSC 160.13 is repealed and recreated to read:
PSC 160.13 Designation of eligible telecommunication carriers. (1) A company shall be deemed eligible to receive intrastate and interstate universal service funding under the federal high cost program and applicable state programs for an area if it meets the following requirements:
(a) Holds itself ready to offer service to all customers in the area, except that those customers with a demonstrated inability to pay for service may be denied service in accordance with ss. PSC 165.051 and 165.052; and
(b) Advertises its service in the area on a regular basis, with such advertisements:
  1. Disseminated in the mass media expected to reach the majority of customers in the area, at least 3 times per year;
  2. Describing the services offered; and
  3. Describing the affordability of the services, including the availability of discounts for low income customers.
(c) Maintains prices for service in the area that do not unreasonably discriminate between customers, and that comply with s. PSC 160.155. An eligible telecommunications carrier may not charge nonrecurring or construction charges for rural customers that are not reasonably comparable to what urban customers would pay.
(d) Offers, at a minimum, all portions of essential telecommunications service, as defined in s. PSC 160.03; and
(e) Offers lifeline and link-up service, as defined in ss. PSC 160.061 and 160.062.
(2) The area in which a provider shall be designated as an eligible telecommunications carrier shall be:
(a) For a non-rural local exchange carrier, the wire center, unless the commission designates a smaller area.
(b) For a rural local exchange carrier, the service territory, unless the commission designates, and the federal communications commission approves, a smaller area.
Note: Ameritech Wisconsin and GTE North, Incorporated are non-rural local exchange carriers. All other incumbent local exchange carriers are rural.
(3) For areas served by non-rural local exchange carriers, the commission may designate a number of eligible telecommunications carriers, without further proceeding.
(4) For areas served by rural local exchange carriers, the commission may only designate more than one eligible telecommunications carrier after finding that the public interest requires multiple eligible telecommunications carriers, pursuant to federal law and s. 196.50(2), Stats.
(5) The commission will maintain a list of the eligible telecommunications carriers for all areas of the state.
(6) An eligible telecommunications carrier may relinquish its designation as such for an area by notifying the commission and the administrators of both the state and federal universal service funds, in writing, of its intention.
(a) If at least one other eligible telecommunications carrier is designated for that area, the relinquishing carrier will be relieved of eligible telecommunications carrier status for that area 2 weeks after receipt by the commission of the letter, and without commission action.
(b) If no other eligible telecommunication carrier is designated for that area, the relinquishing carrier must remain as eligible telecommunications carrier for that area until the commission designates an alternative eligible telecommunications carrier. In such a case, the commission will notify the relinquishing carrier, and the administrators of the state and federal funds, that eligible telecommunications carrier status is still in effect. The commission may conduct a proceeding or auction similar to that described in s. PSC 160.14 to designate a new eligible telecommunications carrier for an area for which the only existing eligible telecommunications carrier is seeking to relinquish that status.
(c) A provider may continue to provide services in an area for which it has relinquished eligible telecommunications carrier status, but may not continue to receive high cost assistance funding. If a provider seeks to abandon facilities or discontinue any service, it must notify affected customers and follow the established abandonment procedures under ss. PSC 165.11 and 165.12.
SECTION 73. PSC 160.14(2)(b) is amended to read:
  (b) The petition shall be filed in writing with the commission , and the Except as provided in par. (d), petitioner retains intralata toll service provider of last resort responsibilities until a new provider of last resort is designated, or for a period of 12 months, whichever is shorter.
SECTION 74. PSC 160.14(2)(d) is created to read:
(d) If intralata presubscription has been in effect in an exchange for at least one year, and if the designated intralata toll provider has less than 50% of all presubscribed residential access lines in that exchange, then the commission may lift the intralata toll provider of last resort requirement for that exchange. If future circumstances should so require, the commission may designate a new intralata toll provider of last resort pursuant to sub. (3).
SECTION 75. PSC 160.14(8) is created to read:
(8) An intralata toll provider of last resort may not sell or dispose of any intralata toll customer to another provider, except at the express request of the customer.
SECTION 76. PSC 160.15 is amended to read:
PSC 160.15 Identification of charges caused by universal service funding liability. Telecommunications providers may not establish a surcharge or separately identify on customer bills, any amounts for recovering, or contributing to, or recovering any portion of the providers' payment of universal service fund obligations.
SECTION 77. PSC 160.155 is created to read:
PSC 160.155 Reasonably comparable urban and rural rates (1) All telecommunications providers must maintain rates in rural area that are reasonably comparable to those charged by that provider in urban areas. The services offered for those rates must also be reasonably comparable.
(2) To be reasonably comparable, rates must not vary significantly, except to the extent that higher rates are for additional or higher quality service than is generally offered. Having a longer length circuit between the switch and customer premises is not considered additional or higher quality service.
(3) Non-recurring charges for rural customers must also be reasonably comparable to those charged to urban customers.
(4) Rates for incumbent local exchange carriers which vary between exchanges, and which have been set by commission order, are exempted until such time as the rates are revised or changed. A rate decrease which is applied uniformly across an entire rate classification does not constitute a change for the purposes of this paragraph.
(5) In order to maintain rural and urban toll rate parity, where a local exchange service provider's switched access rates exceed 150% of the benchmark access rates established by the commission, the provider will issue credits to the access customer reducing those access rates to 150 percent of the benchmark rates. The commission may revise the benchmark access rates by order, following comment and opportunity for hearing. Local exchange service providers will be reimbursed by the universal service fund for the value of the credits issued.
Note: The initial benchmarks were established by the commission in docket 05-TI-130.
SECTION 78. PSC 160.181 is created to read:
PSC 160.181 Use audit. Recipients of universal service fund monies may be audited by the commission to ensure that the funding was applied for and used appropriately.
SECTION 79. PSC 160.19(4)(a) and (5) are amended to read:
(a) Terms of universal service fund council members initially appointed by the commission are effective through December 31, 1995. After December 31, 1995, universal Universal service fund council members shall be appointed to staggered three-year terms.
  Note: For terms beginning on January 1, 1996, the commission will appoint some universal service fund council members to a one year term, others to a 2 year term and the remaining members to a 3 year term.
(5) The commission shall appoint a chairperson for the universal service fund council who shall serve in that capacity through December 31, 1995. There after, the The universal service fund council shall elect a chairperson and a vice-chairperson from its membership, not including the commission staff liaison. The term of office for these positions shall be one year. Elections may be held at the first meeting of each calendar year commencing after December 31, 1995, or may be conducted by mail prior to the first meeting of each calendar year.
Initial Regulatory Flexibility Analysis
Existing universal service fund rules may have an effect on small telecommunications utilities, which are small businesses under s. 196.216, Stats., for the purposes of s. 227.114, Stats. These small telecommunications utilities, of which there are 78 in Wisconsin, like other telecommunications providers (both large and small), have obligations under the universal service fund, including an obligation for payments to the universal service fund. The rule changes proposed in this proceeding could have the effect of changing the amount of the assessments. Some of these changes may increase the amount of funding needed, while others may decrease the amount paid by any given provider. The net effect of these changes is uncertain.
Other provisions of these proposed rules should have no direct impact on small businesses. The Commission already has established, in s. PSC 160.18(1), an exemption from fund assessments to protect entry by and continued operation of small telecommunications providers as directed by statutory objectives. There are no new reporting or bookkeeping requirements created under these proposed rules for any business except for wireless carriers who choose to become eligible telecommunications carriers.
The agency has considered the methods in s. 227.114(2), Stats., for reducing the impact of the rules on small businesses. Other than the provisions for exemption from assessments for small providers noted above, these methods are not necessary, appropriate nor consistent with statutory objectives.
Fiscal Estimate
The annual appropriation for the Universal Services fund Programs covered under rules in ch. PSC 160 is $8,000,000. There is no anticipation that spending for the specified programs identified in this rule making proceeding will exceed this spending level.
Environmental Analysis
This is a Type III action under s. PSC 4.10(3). No unusual circumstances suggesting the likelihood of significant environmental consequences have come to the Commission's attention. Neither an environmental impact statement under s. 1.11, Stats., nor an environmental assessment is required.
Notice of Submission of Proposed Rules to the Presiding Officer of each House of the Legislature, Under S. 227.19, Stats.
Please check the Bulletin of Proceedings for further information on a particular rule.
Agriculture, Trade and Consumer Protection (CR 98-123):
Chs. ATCP 10 and 11 - Relating to fish farms, fish diseases and imports of live fish and fish eggs.
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