Public Service Commission, Administration

Section R746-343-15

Surcharge

Notice of Proposed Rule

(Amendment)

DAR File No.: 34760
Filed: 05/02/2011 10:09:05 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The statute that provides for a surcharge to fund the provision of telecommunications devices to hearing and speech impaired persons was amended by S.B. 209 (2011 General Session). The proposed rule change conforms the rule to the new law and establishes a surcharge rate that is consistent with recovering annual program costs. Prior to S.B. 209, the surcharge applied to "residential and business lines." The statute now applies the surcharge to "residential, business, and mobile telephone numbers," a much larger customer base. The Division of Public Utilities has determined the monthly surcharge rate should be reduced from $0.10 to $0.06. The new surcharge rate will provide sufficient funds to operate the program. (DAR NOTE: S.B. 209 is effective as of 05/10/2011.)

Summary of the rule or change:

A surcharge of $0.06 will be imposed on each telephone number of each residential and business customer in the state. The surcharge will be collected by each telecommunications corporation providing public telecommunications service to a customer. The pre-existing $0.10 surcharge placed on each access line will be discontinued.

State statutory or constitutional authorization for this rule:

• Section 54-8b-10

Anticipated cost or savings to:

the state budget:

There will be a $0.06 per month increase per telephone number of each residential and business customer of mobile telecommunications services. There will be a surcharge decrease from $0.10 to $0.06 for residential and business customer numbers associated with land lines.

local governments:

There will be a $.06 per month increase per telephone number of each residential and business customer of mobile telecommunications services. There will be a surcharge decrease from $.10 to $.06 for residential and business customer numbers associated with land lines.

small businesses:

There will be a $0.06 per month increase per telephone number of each residential and business customer of mobile telecommunications services. There will be a surcharge decrease from $0.10 to $0.06 for residential and business customer numbers associated with land lines.

persons other than small businesses, businesses, or local governmental entities:

There will be a $0.06 per month increase per telephone number of each residential and business customer of mobile telecommunications services. There will be a surcharge decrease from $0.10 to $0.06 for residential and business customer numbers associated with land lines.

Compliance costs for affected persons:

There will be $0.06 increase per telephone number of each residential and business customer of mobile telecommunications services. There will be a surcharge decrease from $0.10 to $0.06 for residential and business customer numbers associated with land lines.

Comments by the department head on the fiscal impact the rule may have on businesses:

The Hearing and Speech Impaired Fund balance has been gradually declining since 2006 because annual program costs have averaged about $1,700,000, while surcharge collections have averaged about $1,200,000. Prior to the new law, the surcharge applied to about 940,000 access lines. Applying the surcharge to "numbers" instead of "lines" makes the surcharge applicable to mobile telecommunications services, increasing the surcharge customer base to about 3,030,000. The new surcharge will recover program costs and, over time, will provide sufficient funds to generate a one-year budget surplus. The surcharge on business land lines will decrease and the reduced surcharge will now apply to business and residential wireless numbers.

Ted Boyer, Commission Chairman

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Public Service Commission
Administration
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Sheri Bintz at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at sbintz@utah.gov
• David Clark at the above address, by phone at 801-530-6709, by FAX at 801-530-6796, or by Internet E-mail at drexclark@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/14/2011

This rule may become effective on:

06/21/2011

Authorized by:

David Clark, Legal Counsel

R746. Public Service Commission, Administration.

R746-343. Rule for Deaf, Severely Hearing or Speech Impaired Person.

R746-343-15. Surcharge.

A. The surcharge will be [placed on access lines as determined by the count of main stations or its equivalent]imposed on each telephone number of each residential and business customer in this state.

B. The surcharge established by the Commission in accordance with Subsection 54-8b-10(4) is [$.10]$.06 per month for each residential and business telephone number, subject to the limitation on surcharges related to mobile telecommunication service specified in Utah Code Ann. Subsection 54-8b-10(4)(b)(ii).

C. Subject to Subsection R746-343-15(D), the telephone number surcharge will be collected by each [local exchange company]telecommunications corporation providing [basic] public telecommunications service [in Utah]to the customer and submitted, less administrative cost, to the Public Service Commission on a quarterly basis.

D. The provider will submit its budget for annual review by the Public Service Commission.

E. The telephone surcharge need not be collected by a [local exchange company]telecommunications corporation if the amount collected would be less than the actual administrative costs of that collection. In that case, the [local exchange company]telecommunications corporation shall submit to the Commission, in lieu of the revenue from the surcharge collection, a breakdown of the anticipated costs and the expected revenue from the collection showing that the costs exceed the revenue.

 

KEY: public assistance, physically handicapped, rates, telecommunications

Date of Enactment or Last Substantive Amendment: [March 3, 2009]2011

Notice of Continuation: December 13, 2007

Authorizing, and Implemented or Interpreted Law: 54-8b-10