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



(b)  The commission may allow distribution of
funds directly to customers based upon a need criteria established by the
commission.



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



(d)  Telecommunications carriers may compete to
provide services to underserved areas using funds from the universal service
program.  For the purposes of this section, "underserved areas" means
those areas in the State that lack or have very limited access to high
capacity, advanced telecommunications networks and information services,
including access to cable television.



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



(f)  The commission shall designate the method
by which the contributions under subsection (e) shall be calculated and
collected.  The commission shall consider basing contributions solely on the
gross operating revenues from the retail provision of intrastate
telecommunications services offered by the telecommunications carriers subject
to the contribution. [L 1995, c 225, pt of §2; am L 1999, c 135, §3]