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PRINTER'S NO. 1955
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1417
Session of
2015
INTRODUCED BY MAJOR, HANNA, HARHART, CONKLIN, MURT, MILLARD,
BOBACK, CAUSER, PICKETT, CUTLER, McNEILL, EVANKOVICH,
ZIMMERMAN, GODSHALL, JAMES, OBERLANDER, A. HARRIS, KAUFFMAN,
EVERETT, METZGAR, COHEN, MENTZER, KAMPF, RAPP, GIBBONS,
RADER, DAVIS, D. COSTA, HICKERNELL, BAKER, BURNS, HARHAI,
REESE, SNYDER, SANKEY, TOBASH, NEUMAN, SCHREIBER, TOPPER,
KAVULICH, FLYNN, MULLERY, P. DALEY, ORTITAY, MARSHALL,
PETRARCA, NESBIT, ELLIS AND MILNE, JUNE 26, 2015
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 26, 2015
AN ACT
Providing for rural telephone access and availability and for
functions of the Pennsylvania Public Utility Commission; and
making a gross receipts tax determination.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Rural
Telephone Access and Availability Act.
Section 2. Declaration of policy.
The General Assembly finds and declares it is the policy of
the Commonwealth to maintain the provision of landline telephone
service to residents of this Commonwealth by supporting Federal
and State universal service objectives which provide that
telecommunications services should be available to all consumers
at reasonable rates.
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Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Basic calling service." Service which provides a
residential customer with a stand-alone single line or a
business customer with fewer than four stand-alone lines having
the ability to transmit and receive voice communications,
including access to E-911 service. The term excludes wireless
service.
"Commission." The Pennsylvania Public Utility Commission.
"Fund." The Universal Service Fund under 52 Pa. Code
63.163(c) (relating to universal service fund administration)
and 47 CFR Pt. 54 (relating to universal service).
"Local exchange telecommunications company." As defined in
66 Pa.C.S. § 3012 (relating to definitions).
"Rural telecommunications carrier." As defined in 66 Pa.C.S.
§ 3012.
Section 4. Investigation.
(a) Requirement.--The commission shall initiate an
investigation of the fund and 52 Pa. Code Ch. 63 Subch. L
(relating to universal service).
(b) Procedure.--The investigation shall be undertaken as an
on-the-record proceeding.
(c) Order and rulemaking.--
(1) By January 1, 2021, the commission shall enter a
final order containing the findings of the investigation. The
following apply:
(i) The order shall contain a determination of
whether continuation of the fund is necessary to maintain
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reasonable rates by rural telecommunications carriers or
to support the provisioning of basic calling service in
exchanges served by rural telecommunications carriers. In
making the determination required by this subparagraph,
the commission shall consider the following:
(A) The impact on the customers of a rural
telecommunications carrier regardless of carrier size
or affiliates.
(B) Any viable alternative revenue source
derived from services regulated by the commission or
funding which may be available to rural
telecommunications carriers to support the provision
of basic calling service if the commission reduces
the funding level of the fund.
(ii) If the commission determines that the fund is
necessary to maintain reasonable rates by rural
telecommunications carriers or to support the
provisioning of basic calling service in exchanges served
by rural telecommunications carriers, its final order
shall contain examination of and determinations regarding
each of the following:
(A) The appropriate base of fund contributors
and recipients.
(B) The appropriate total funding level of the
fund.
(C) Expansion of the fund to include support for
the networks of local exchange telecommunications
companies for the provision of broadband at levels
established by the Federal Communications Commission.
(D) Expansion of the fund to establish a State
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program to reduce the cost of basic calling service
to low-income customers.
(2) Within 30 days of entry of the order under paragraph
(1), the commission shall initiate a rulemaking proceeding to
implement findings supporting changes to the fund.
(3) The order and the rulemaking shall consider all
relevant requirements of the Federal Communications
Commission.
Section 5. Fund.
(a) Continuing administration.--Except as set forth in
subsection (b), the commission shall continue to administer the
fund until January 1, 2022, on the same terms and conditions as
set forth in 52 Pa. Code Ch. 63 Subch. L (relating to universal
service) and orders in effect on the effective date of this
section.
(b) Exceptions.--The following shall apply to administration
under subsection (a):
(1) Distribution of money from the fund shall be limited
to a rural telecommunications carrier that:
(i) received money from the fund before January 2,
2015; and
(ii) offers a basic calling service in its
certificated service territory pursuant to a tariff.
(2) Prior to January 1, 2022, amounts received by a
rural telecommunications carrier from the fund may not be
reduced below the annual amount received in 2014.
(3) A rural telecommunications carrier that receives
money from the fund after December 31, 2014, and before
January 1, 2022:
(i) is obligated to provide basic calling service
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under 66 Pa.C.S. § 1501 (relating to character of service
and facilities) throughout its certificated service
territory; and
(ii) is prohibited from declaring as competitive a
particular geographic area, exchange, or group of
exchanges under 66 Pa.C.S. § 3016(a) (relating to
competitive services) pending a final order entered by
the commission in the investigation under section 4.
(4) Except as set forth in paragraphs (1) and (2), the
commission shall not implement any other revision or change
to the fund or to 52 Pa. Code Ch. 63 Subch. L until January
1, 2022.
(5) All of the following shall be considered public
records under the act of February 14, 2008 (P.L.6, No.3),
known as the Right-to-Know Law, and shall be made available
on the commission's publicly accessible Internet website:
(i) Names of contributors and their contributions to
the fund.
(ii) Names of recipients of money from the fund and
the amount of money they receive.
Section 6. Gross receipts tax.
(a) Scope.--This section applies to money received:
(1) through Federal funding under 47 CFR Pt. 54 Subpt. D
(relating to universal service support for high cost areas);
or
(2) from the fund.
(b) Status.--Money referred to in subsection (a):
(1) does not constitute receipts from the transmission
of telegraph or telephone messages; and
(2) is not subject to the tax imposed under section 1101
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of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971.
Section 7. Expiration.
This act shall expire on the later of:
(1) the effective date of regulations promulgated under
section 4(c)(2); or
(2) January 1, 2022.
Section 8. Effective date.
This act shall take effect in 60 days.
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