Missouri HB 2514: Modifies provisions relating to the Universal Service Board and Fund

Bill Text

SECOND REGULAR SESSION
HOUSE BILL NO. 2514
101ST GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE RIGGS.
5307H.01I DANA RADEMAN MILLER, Chief Clerk
AN ACT
To repeal section 392.248, RSMo, and to enact in lieu thereof one new section relating to the
universal service board.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 392.248, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 392.248, to read as follows:
392.248. 1. In order to ensure just, reasonable, and affordable rates for reasonably
2 comparable essential local telecommunications services throughout the state, there is hereby
3 established the "Universal Service Board" which shall consist of the members of the public
4 service commission and the public counsel, and which shall be incorporated as a not-for-
5 profit, public benefit corporation in the manner provided pursuant to chapter 355, except as
6 otherwise provided in this section. Consistent with rules adopted by the commission, the
7 universal service board shall create a universal service fund. The universal service board
8 shall supervise the management of the universal service fund. Funds deposited in the
9 universal service fund are not state funds. The commission shall adopt rules governing the
10 operations of the state universal service fund within three months of the adoption of the rules
11 adopted by the Federal Communication Commission for the federal Universal Service Fund.
12 Nothing in the rules adopted by the commission shall be inconsistent with the support
13 mechanisms established for the federal Universal Service Fund, but the commission may
14 adopt any additional definitions and standards it believes are necessary to preserve and
15 advance universal service in the state of Missouri. The commission shall adopt rules
16 governing the operations of the universal service fund and the operation of the universal
17 service board. Meetings of the universal service board shall be open meetings pursuant to
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

18 chapter 610. The universal service board shall also retain an independent neutral fund
19 administrator who will be responsible for the day-to-day operations of the universal service
20 fund. The fund administrator shall be a fiduciary with trust company powers. The universal
21 service board shall provide for periodic review of the fund administrator and the opportunity
22 for selection of an alternate fund administrator no less frequently than every four years. The
23 agency, individual, firm, partnership, or corporation that is selected by the commission as the
24 neutral administrator of the universal service fund may neither contribute to nor receive
25 disbursements from the universal service fund, except as provided in subsection 2 of this
26 section. The administrator may not have any financial interest in a telecommunications
27 company, as defined in section 386.020. The commission shall cause the books and records
28 of the universal service fund administrator to be independently audited on an annual basis.
29 The independent audit shall be paid for from funds held in the universal service fund.
30 2. The commission shall adopt and enforce rules to be implemented by the universal
31 service board, governing the system of funding and disbursing funds from the universal
32 service fund in a manner that does not grant a preference or competitive advantage to any
33 telecommunications company or subject a telecommunications company to prejudice or
34 disadvantage. Funds from the universal service fund shall only be used:
35 (1) To ensure the provision of reasonably comparable essential local
36 telecommunications service, as that definition may be updated by the commission by rule,
37 throughout the state including high-cost areas, at just, reasonable and affordable rates;
38 (2) To assist low-income customers and disabled customers in obtaining affordable
39 essential telecommunications services or broadband internet access service. For the
40 purposes of this section, "broadband internet access service" is defined as a retail
41 service that enables users to connect to the internet to access content, information, or
42 other services at speeds of at least twenty-five megabits per second download and three
43 megabits per second upload; and
44 (3) To pay the reasonable, audited costs of administering the universal service fund.
45 3. The universal service fund shall be funded through assessments on all
46 telecommunications companies in the state which shall be based on Missouri jurisdictional
47 telecommunications services revenue and other nondiscriminatory factors as determined by
48 the commission. Such assessments shall be paid to the universal service board. A
49 telecommunications