SECTION 56. PSC 160.09(3)(i) is renumbered 160.09(4)(g).
SECTION 57. PSC 160.09(3) is created to read:
(3) The price of local service shall include the following:
(a) The fixed monthly charge for essential telecommunications service, as defined in s. PSC 160.03;
(b) The federal communications commission end user common line charge; and
(c) Usage charges, if any, based on the size of the local calling area, excluding extended community calling territory, as follows: [See Figure 160.09(3) following]
SECTION 58. Figure PSC 160.09(3)(c) is created to read:
Figure 160.09(3)(c):
Exchange's local calling area size, excluding extended community calling territory, as measured by number of customers
Exchange's combined local calling and extended community calling area size as measured by number of customers
Usage charges includable in the 160.09(3)(c) calculation of the cost of local service
At least 50,000
(Not applicable)
Per minute or calculated charges for 480 minutes of local calling by that type of customer.
Less than 50,000 but at least 5,000
At least 50,000
Per minute or calculated charges for 360 minutes of local calling by that type of customer,
plus
Price of 1 minute of extended community calling times 120 minutes.
Less than 50,000 but at least 5,000
Less than 50,000
Per minute or calculated charges for 360 minutes of local calling by that type of customer,
plus
Price of 1 minute of extended community calling times 90 minutes,
plus
The average price of 1 minute of toll service, as periodically calculated by the commission, times 30 minutes.
Less than 5,000
At least 50,000
Per minute or calculated charges for 240 minutes of local calling by that type of customer,
plus
Price of 1 minute of extended community calling times 240 minutes.
Less than 5,000
Less than 50,000
Per minute or calculated charges for 240 minutes of local calling by that type of customer,
plus
Price of 1 minute of extended community calling times 120 minutes,
plus
The average price of 1 minute of toll service, as periodically calculated by the commission, times 120 minutes.
  Note: As of October 1998, the average price of toll service is $.12 per minute.
SECTION 59. PSC 160.09(4) is renumbered 160.09(5) and amended to read:
(5) Each Except as provided in sub. (9), each local exchange service provider shall be reimbursed by the universal service fund for the value of the credits it issues, provided that it qualifies under s. PSC 160.091.
SECTION 60. PSC 160.09(5) is renumbered 160.09(6).
SECTION 61. PSC 160.09(6) is repealed.
SECTION 62. PSC 160.09(8) and (9) are amended to read:
(8) Telecommunications utilities with rate ceiling programs in place on May 1, 1996 may continue those programs until rates subject to those programs are changed, unless the Commission commission authorizes an extension of the rate ceiling program. The universal service fund shall reimburse telecommunications utilities for these programs for services provided beginning on January 1, 1996.
(9) Customers receiving high rate assistance credits may not be provided essential telecommunications service under contract Local exchange service providers shall not be reimbursed by the universal service fund for the value of credits issued to customers receiving essential telecommunications service under a contract if the contract has a duration of greater than one year. The commission may grant waivers of this subsection by order. This subsection does not apply to rural line extension contracts entered into before January 1, 1996.
SECTION 63. PSC 160.091 is repealed and recreated to read:
PSC 160.091 Qualifications for providers receiving universal service funding for high rate assistance credits. A local exchange service provider receiving reimbursement for high rate assistance credits under s. PSC 160.09 shall:
(1) Provide service that meets the minimum requirements of s. PSC 160.03 and other quality of service rules established by the commission;
(2) Be designated by the commission as an eligible telecommunications carrier for the area in which it seeks reimbursement;
(3) Be a contributory provider unless exempted from payment under s. PSC 160.18(1)(a); and
(4) Show that it has applied the money it receives from the federal high cost support fund, to the extent permitted under federal communications commission regulations, to the rates for which it is issuing credits, and not to other services or to ineligible customers.
SECTION 64. PSC 160.10(5) is repealed.
SECTION 65. PSC 160.11(1)(a) and (3) are amended to read:
(1) Partial support funding through rate discounts is available for institutions ordering telecommunications services to be used to provide any of the following services:
(a) Two-way interactive video or audiographic services.
(3) Support funding is available only as partial payment for new services. The amount of funding shall decrease year by year, as follows: Funding is available for up to 3 years at a monthly discount of 20% of the monthly charge or $200 per month, whichever is less.
SECTION 66. PSC 160.11(3m) is created to read:
(3m) Notwithstanding sub. (3), if an institution received support funding under this section for a new service at a 30% or $300 discount level in the first year, and at a 20% or $200 discount level in the second year, it shall only receive support funding for that new service for the third year at a 10% or $100 discount level.
SECTION 67. PSC 160.11(3)(a) to (d) are repealed.
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.
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