Utah Bill Could Add Revenue to Shrinking State USF
A universal service bill moving through the Utah State Legislature could add revenue to the state USF, said a fiscal note issued Monday on SB-130. The Utah bill says telecom companies providing access lines, connections or wholesale broadband internet access…
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service qualify for state USF distributions. It requires each provider to contribute to the USF and requires the Utah Public Service Commission to develop a method for calculating the amount of each contribution. And it makes wireless companies eligible for state Lifeline support. Enactment could “increase revenues to the Universal Public Telecommunications Service Support Fund, assuming the Public Service Commission adjusts surcharge rates to match fund disbursements,” said the fiscal note. “One aspect of the legislation, expansion of the state Lifeline Program to wireless customers, could require increased surcharge revenue to the fund of at least $1.1 million.” The bill means broadband and internet providers will face additional regulation and contribution requirements, while customers could pay increased surcharges, it said. Expanding the state Lifeline program could give $42 annually to at least 26,200 individuals, it said. The Utah Senate passed SB-130 on Feb. 27 and the bill awaits a House vote. The Utah PSC, which is considering contribution changes amid projections its fund could run out early this year, tentatively decided last July to increase its revenue-based surcharge as an interim step while the state legislature considers broader changes (see 1607150017).