§269-42  Universal service program;contributions.  (a)  There is established outside of the state treasury aspecial fund to be known as the universal service fund to be administered bythe commission to implement the policies and goals of universal service.  Thefund shall consist of contributions from the sources identified in subsections(e) and (f).  Interest earned from the balance of the fund shall become a partof the fund.  The commission shall adopt rules regarding the distribution ofmoneys from the fund including reimbursements to carriers for providing reducedrates to low-income, elderly, residents of underserved or rural areas, or othersubscribers, as authorized by the commission.

(b)  The commission may allow distribution offunds directly to customers based upon a need criteria established by thecommission.

(c)  A telecommunications carrier or otherperson contributing to the universal service program may establish a surchargewhich is clearly identified and explained on customers' bills to collect fromcustomers contributions required under this section.

(d)  Telecommunications carriers may compete toprovide services to underserved areas using funds from the universal serviceprogram.  For the purposes of this section, "underserved areas" meansthose areas in the State that lack or have very limited access to highcapacity, advanced telecommunications networks and information services,including access to cable television.

(e)  The commission shall require alltelecommunications carriers to contribute to the universal service program. The commission may require a person other than a telecommunications carrier tocontribute to the universal service program if, after notice and opportunityfor hearing, the commission determines that the person is offering a commercialservice in the State that directly benefits from the telecommunicationsinfrastructure, and that directly competes with a telecommunications serviceprovided in the State for which a contribution is required under this subsection.

(f)  The commission shall designate the methodby which the contributions under subsection (e) shall be calculated andcollected.  The commission shall consider basing contributions solely on thegross operating revenues from the retail provision of intrastatetelecommunications services offered by the telecommunications carriers subjectto the contribution. [L 1995, c 225, pt of §2; am L 1999, c 135, §3]