2021 Oregon Revised Statutes
Chapter 759 - Telecommunications Utility Regulation
Section 759.425 - Universal service fund; transfer of moneys to Broadband Fund; commission to establish price for basic telephone service; universal service surcharge; application to cellular services; rules.


(A) Use the universal service fund to ensure basic telephone service is available at a reasonable and affordable rate; and
(B) Transfer from the universal service fund to the Oregon Business Development Department for deposit in the Broadband Fund established under section 4, chapter 17, Oregon Laws 2020 (first special session), an amount per year that is equal to the lesser of:
(i) $5 million; or
(ii) The remainder of moneys deposited in the universal service fund that are unobligated after making the designation required in paragraph (b) of this subsection.
(b) The commission shall designate the amount of moneys deposited annually in the universal service fund to be used to ensure basic telephone service. The amount designated under this paragraph may not exceed $28 million per year.
(c) The commission may:
(A) Adopt rules to conform the universal service fund to section 254 of the federal Telecommunications Act of 1996 (P.L. 104-104), and to related regulations adopted by the Federal Communications Commission, to the extent that the Public Utility Commission determines conforming the rules is appropriate; and
(B) In addition to using the universal service fund to ensure basic telephone service, use the universal service fund to encourage broadband service availability and to provide support to telecommunications carriers that provide both basic telephone service and broadband service.
(2)(a) The commission shall establish the price a telecommunications utility may charge its customers for basic telephone service. The commission shall periodically review and evaluate the status of telecommunications services in the state and designate the services included in basic telephone service. The commission shall periodically review and adjust as necessary the price a telecommunications utility may charge for basic telephone service.
(b) The provisions of this subsection do not apply to the basic telephone service provided by a telecommunications utility described in ORS 759.040.
(3)(a) The commission shall establish a benchmark for basic telephone service as necessary for the administration and distribution of the universal service fund. The universal service fund shall provide explicit support to an eligible telecommunications carrier that is equal to the difference between the cost of providing basic telephone service and the benchmark, less any explicit compensation received by the telecommunications carrier from federal sources specifically used to recover local loop costs and less any explicit support received by the telecommunications carrier from a federal universal service program.
(b) The commission shall periodically review the benchmark established under paragraph (a) of this subsection and adjust the benchmark as necessary to reflect:
(A) Changes in competition in the telecommunications industry;
(B) Changes in federal universal service support; and
(C) Other relevant factors as determined by the commission.
(c) Except for a telecommunications utility described in ORS 759.040, the commission shall seek to limit the difference between the price a telecommunications utility may charge for basic telephone service and the benchmark.
(4)(a) There is imposed a universal service surcharge on the sale in this state of all:
(A) Retail telecommunications services;
(B) Retail commercial mobile radio services; and
(C) Retail interconnected voice over internet protocol services.
(b) A retail commercial mobile radio service provider shall identify the intrastate revenues subject to the universal service surcharge based on the inverse of the percentage of interstate revenues utilized for purposes of federal universal service contributions or based on any other method approved by the Public Utility Commission. A retail commercial mobile radio service provider may rely upon the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (P.L. 106-252) to identify revenues attributable to Oregon.
(c) A retail interconnected voice over internet protocol service provider may identify, in accordance with federal guidelines, the intrastate revenues subject to the universal service surcharge based on any one of the following:
(A) The inverse of the interstate safe harbor percentage established by the Federal Communications Commission for interconnected voice over internet protocol service for federal universal service contribution purposes, as the interstate safe harbor percentage may be revised from time to time;
(B) A traffic study specific to the interconnected voice over internet protocol service provider that allocates revenues between federal and state jurisdictions; or
(C) Another methodology for accurately apportioning interconnected voice over internet protocol service revenues between federal and state jurisdictions.
(d) For any service provider subject to the universal service surcharge that provides, to multiple locations, shared simultaneous voice channel capacity configured to provide local dial in different states, the revenue subject to the surcharge shall be only the portion of the shared capacity in this state as identified:
(A) By information itemizing, on the billing statements provided to customers, the charges subject to the surcharge, as may be identified by individual end-user location, the total number of end users and the number of end users at each end-user location; or
(B) If information described in subparagraph (A) of this paragraph does not exist, by the service provider’s billing system books and records.
(e) Unless otherwise provided by the Public Utility Commission by rule, the universal service surcharge must be a uniform percentage of the sale of services subject to the surcharge in an amount sufficient to support the purposes of the universal service fund established under subsection (1) of this section, provided that the percentage does not exceed six percent of the sale of services subject to the surcharge.
(f) The universal service surcharge may be listed by a telecommunications carrier as a separate line item in billing statements provided to customers, as prescribed by the commission by rule or order. The commission may not prescribe whether, or the manner by which, a commercial mobile radio services provider or an interconnected voice over internet protocol services provider may list the surcharge in billing statements provided to customers.
(g) A service provider required to collect the universal service surcharge shall:
(A) Transmit amounts collected pursuant to this section to the commission in accordance with a schedule adopted by the commission; and
(B) Provide the commission with information requested by the commission as necessary for the commission to implement this section.
(5) The commission shall deposit moneys transmitted to the commission pursuant to subsection (4) of this section in the universal service fund established under subsection (1) of this section.
(6) The universal service fund established under subsection (1) of this section is separate and distinct from the General Fund. The universal service fund shall consist of all universal service surcharge moneys collected by service providers required to collect the surcharge and transmitted to the commission for deposit in the universal service fund. The universal service fund may be used only for the purposes described in this section and for payment of expenses incurred by the commission or a third party appointed by the commission to administer this section. All moneys in the universal service fund are continuously appropriated to the commission to carry out the provisions of this section. Interest on moneys deposited in the universal service fund shall accrue to the universal service fund.
(7) A pay telephone provider may apply to the commission, on a form developed by the commission, for a refund of the universal service surcharge imposed on the pay telephone provider under subsection (4) of this section for the provision of pay telephone service.
(8) Nothing in this section is intended to grant the commission the authority to impose any requirement or condition, or to exercise any regulatory authority, with respect to commercial mobile radio services or interconnected voice over internet protocol services other than as expressly provided for in this section. [1999 c.1093 §28; 2001 c.966 §3; 2003 c.14 §§455,456; 2007 c.353 §1; 2009 c.885 §16; 2011 c.189 §1; 2017 c.32 §1; 2020 s.s.1 c.17 §2]
Note: The amendments to 759.425 by section 3, chapter 17, Oregon Laws 2020 (first special session), become operative January 2, 2030. See section 10, chapter 17, Oregon Laws 2020 (first special session). The text that is operative on and after January 2, 2030, is set forth for the user’s convenience. (1)(a) The Public Utility Commission shall establish and implement a competitively neutral and nondiscriminatory universal service fund. The commission shall use the universal service fund to ensure basic telephone service is available at a reasonable and affordable rate.
(b) The commission shall designate the amount of moneys deposited annually in the universal service fund to be used to ensure basic telephone service. The amount designated under this paragraph may not exceed $28 million per year.
(c) The commission may:
(A) Adopt rules to conform the universal service fund to section 254 of the federal Telecommunications Act of 1996 (P.L. 104-104), and to related regulations adopted by the Federal Communications Commission, to the extent that the Public Utility Commission determines conforming the rules is appropriate; and
(B) In addition to using the universal service fund to ensure basic telephone service, use the universal service fund to encourage broadband service availability and to provide support to telecommunications carriers that provide both basic telephone service and broadband service.
(2)(a) The commission shall establish the price a telecommunications utility may charge its customers for basic telephone service. The commission shall periodically review and evaluate the status of telecommunications services in the state and designate the services included in basic telephone service. The commission shall periodically review and adjust as necessary the price a telecommunications utility may charge for basic telephone service.
(b) The provisions of this subsection do not apply to the basic telephone service provided by a telecommunications utility described in ORS 759.040.
(3)(a) The commission shall establish a benchmark for basic telephone service as necessary for the administration and distribution of the universal service fund. The universal service fund shall provide explicit support to an eligible telecommunications carrier that is equal to the difference between the cost of providing basic telephone service and the benchmark, less any explicit compensation received by the telecommunications carrier from federal sources specifically used to recover local loop costs and less any explicit support received by the telecommunications carrier from a federal universal service program.
(b) The commission shall periodically review the benchmark established under paragraph (a) of this subsection and adjust the benchmark as necessary to reflect:
(A) Changes in competition in the telecommunications industry;
(B) Changes in federal universal service support; and
(C) Other relevant factors as determined by the commission.
(c) Except for a telecommunications utility described in ORS 759.040, the commission shall seek to limit the difference between the price a telecommunications utility may charge for basic telephone service and the benchmark.
(4)(a) There is imposed a universal service surcharge on the sale in this state of all:
(A) Retail telecommunications services;
(B) Retail commercial mobile radio services; and
(C) Retail interconnected voice over internet protocol services.
(b) A retail commercial mobile radio service provider shall identify the intrastate revenues subject to the universal service surcharge based on the inverse of the percentage of interstate revenues utilized for purposes of federal universal service contributions or based on any other method approved by the Public Utility Commission. A retail commercial mobile radio service provider may rely upon the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (P.L. 106-252) to identify revenues attributable to Oregon.
(c) A retail interconnected voice over internet protocol service provider may identify, in accordance with federal guidelines, the intrastate revenues subject to the universal service surcharge based on any one of the following:
(A) The inverse of the interstate safe harbor percentage established by the Federal Communications Commission for interconnected voice over internet protocol service for federal universal service contribution purposes, as the interstate safe harbor percentage may be revised from time to time;
(B) A traffic study specific to the interconnected voice over internet protocol service provider that allocates revenues between federal and state jurisdictions; or
(C) Another methodology for accurately apportioning interconnected voice over internet protocol service revenues between federal and state jurisdictions.
(d) For any service provider subject to the universal service surcharge that provides, to multiple locations, shared simultaneous voice channel capacity configured to provide local dial in different states, the revenue subject to the surcharge shall be only the portion of the shared capacity in this state as identified:
(A) By information itemizing, on the billing statements provided to customers, the charges subject to the surcharge, as may be identified by individual end-user location, the total number of end users and the number of end users at each end-user location; or
(B) If information described in subparagraph (A) of this paragraph does not exist, by the service provider’s billing system books and records.
(e) Unless otherwise provided by the Public Utility Commission by rule, the universal service surcharge must be a uniform percentage of the sale of services subject to the surcharge in an amount sufficient to support the purposes of the universal service fund established under subsection (1) of this section, provided that the percentage does not exceed six percent of the sale of services subject to the surcharge.
(f) The universal service surcharge may be listed by a telecommunications carrier as a separate line item in billing statements provided to customers, as prescribed by the commission by rule or order. The commission may not prescribe whether, or the manner by which, a commercial mobile radio services provider or an interconnected voice over internet protocol services provider may list the surcharge in billing statements provided to customers.
(g) A service provider required to collect the universal service surcharge shall:
(A) Transmit amounts collected pursuant to this section to the commission in accordance with a schedule adopted by the commission; and
(B) Provide the commission with information requested by the commission as necessary for the commission to implement this section.
(5) The commission shall deposit moneys transmitted to the commission pursuant to subsection (4) of this section in the universal service fund established under subsection (1) of this section.
(6) The universal service fund established under subsection (1) of this section is separate and distinct from the General Fund. The universal service fund shall consist of all universal service surcharge moneys collected by service providers required to collect the surcharge and transmitted to the commission for deposit in the universal service fund. The universal service fund may be used only for the purposes described in this section and for payment of expenses incurred by the commission or a third party appointed by the commission to administer this section. All moneys in the universal service fund are continuously appropriated to the commission to carry out the provisions of this section. Interest on moneys deposited in the universal service fund shall accrue to the universal service fund.
(7) A pay telephone provider may apply to the commission, on a form developed by the commission, for a refund of the universal service surcharge imposed on the pay telephone provider under subsection (4) of this section for the provision of pay telephone service.
(8) Nothing in this section is intended to grant the commission the authority to impose any requirement or condition, or to exercise any regulatory authority, with respect to commercial mobile radio services or interconnected voice over internet protocol services other than as expressly provided for in this section.

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 19 - Utilities, Vehicle Code, Watercraft, Aviation

Chapter 759 - Telecommunications Utility Regulation

Section 759.005 - Definitions.

Section 759.016 - Legislative findings on broadband services.

Section 759.020 - Certificate of authority; application; procedure; criteria; intrastate toll service level; rules.

Section 759.025 - Certificates of authority for persons, companies and corporations providing services on January 1, 1986.

Section 759.040 - Exemptions for certain unaffiliated utilities with fewer than 50,000 access lines.

Section 759.050 - Competitive zone service regulation.

Section 759.052 - Commission authority to exempt telecommunications services from regulation.

Section 759.054 - Price listing for product or service offered as part of local exchange telecommunications services.

Section 759.056 - Price listing for product or service offered as part of interexchange telecommunications services.

Section 759.060 - Information submitted by local exchange telecommunications utilities; rules exempting disclosure.

Section 759.070 - Charge to access public body radio tower; market rate; exception.

Section 759.075 - Authority to construct lines and facilities; condemnation power; procedure.

Section 759.120 - Form and manner of accounts prescribed by commission.

Section 759.125 - Records and accounts prescribed by commission; prohibition on other records or accounts; exception; blanks for reports.

Section 759.130 - Closing date of accounts; filing balance sheet; audit.

Section 759.135 - Depreciation accounts; undepreciated investment allowed in rates; conditions.

Section 759.175 - Filing rate schedules and data with commission.

Section 759.180 - Hearing on reasonableness of rates; procedures; exceptions.

Section 759.182 - Rate schedules for service promotions; rules.

Section 759.185 - Suspension of rates pending hearing; time limitation; refund of revenue collected; interim rates.

Section 759.195 - Price listing of services; conditions; maximum rates; essential services; justification by utility of rates for price-listed services; rules.

Section 759.200 - Inclusion of amortizations in rates; deferral of certain expenses or revenues; limitation on amounts; prohibited uses.

Section 759.210 - Classification of service and rates; considerations; rules.

Section 759.215 - Public access to schedules.

Section 759.218 - Revenues and expenses of unregulated activities.

Section 759.220 - Joint rates and classifications; procedure; considerations.

Section 759.225 - Application of ORS 759.220 to unincorporated associations and cooperative corporations.

Section 759.230 - Measured service rate for business customers; restriction.

Section 759.235 - Mandatory measured service rate; prohibition.

Section 759.240 - Measuring quality of service; standards; rules.

Section 759.245 - Examination and testing of measuring appliances; rules; fees.

Section 759.250 - Contracts for special services; procedure for filing and approval; subsequent review and investigation.

Section 759.255 - Setting prices without regard to return on utility investment; petition; findings; conditions; application of statutes to approved plan.

Section 759.257 - Extended area service: Portland to Scappoose.

Section 759.259 - Extended area service: Portland to Molalla.

Section 759.260 - Unjust discrimination in rates.

Section 759.265 - Practices not constituting unjust discrimination.

Section 759.270 - Reducing rates for persons furnishing part of facilities; rental of customer facilities; furnishing meters and appliances.

Section 759.275 - Undue preferences and prejudices.

Section 759.310 - When issuance of securities void.

Section 759.315 - Purposes for which securities may be issued; order required; exceptions; rules.

Section 759.320 - Application of ORS 759.315.

Section 759.330 - Hearings and supplemental orders for securities issuance; joint approval for issuance by utility operating in another state.

Section 759.345 - Use of proceeds from issuance; accounting; rules.

Section 759.360 - Prohibited acts regarding issuance of securities.

Section 759.375 - Approval prior to sale, mortgage or disposal of operative utility property.

Section 759.380 - Purchase of stock or property of another utility.

Section 759.385 - Contracts regarding use of utility property; filing with commission; investigation.

Section 759.390 - Contracts with affiliated interests; procedure; use in rate proceedings.

Section 759.393 - Applicability of ORS 759.385 and 759.390.

Section 759.400 - Definitions for ORS 759.400 to 759.455.

Section 759.405 - Election of regulation under ORS 759.405 and 759.410; conditions; Telecommunications Infrastructure Account; remedy for failure of utility to comply with conditions.

Section 759.410 - Intent of ORS 759.410; establishing maximum and minimum price for telecommunications services; packaging services; notice of price change, new service; enforcement.

Section 759.415 - Order in rate proceeding filed prior to January 1, 1999, to establish maximum rate for affected telecommunications services; dismissal of rate proceeding filed after January 1, 1999.

Section 759.425 - Universal service fund; transfer of moneys to Broadband Fund; commission to establish price for basic telephone service; universal service surcharge; application to cellular services; rules.

Section 759.430 - Approval of projects funded by carrier’s Telecommunications Infrastructure Account; Connecting Oregon Communities Advisory Board; rules.

Section 759.435 - Assessment of telecommunications infrastructure and community needs; contents; report.

Section 759.445 - Connecting Oregon Communities Fund; School Technology Account; Public Access Account.

Section 759.450 - Minimum service quality standards; rules; customer impact indices; factors; wholesale services; improvement plan; penalties; exceptions.

Section 759.455 - Prohibited acts; commission action on allegation of violation; penalties; judicial review.

Section 759.500 - Definitions for ORS 759.500 to 759.570.

Section 759.506 - Purpose of allocated territory laws; carrier of last resort obligations; exemptions from obligations; reinstatement of obligations.

Section 759.535 - Application to serve unserved territory; hearing; notice.

Section 759.560 - Assignment or transfer of allocated territory; rules.

Section 759.570 - Application of law to local government.

Section 759.585 - Definitions for ORS 759.585 to 759.595.

Section 759.590 - Application for service by unserved person; rules.

Section 759.595 - Criteria for granting application for service; effect on other territorial allocation.

Section 759.650 - Definitions for ORS 759.650 to 759.675.

Section 759.660 - Fixing charges or rates; criteria; costs of hearing.

Section 759.680 - Operator service provider duties to service users; rules.

Section 759.685 - Surcharge assessed on retail telecommunications subscribers; rules.

Section 759.687 - Residential Service Protection Fund.

Section 759.688 - Oregon Telephone Assistance Program Advisory Committee; duties; members; rules.

Section 759.689 - Use of surcharge for marketing and outreach to increase participation rate in plan of assistance.

Section 759.693 - Definitions.

Section 759.695 - Program for assistive telecommunication devices and communication facilitator services; program for adaptive equipment.

Section 759.696 - Telecommunication Devices Access Program Advisory Committee; duties; members.

Section 759.697 - Program coordinator; program administration.

Section 759.698 - Eligibility.

Section 759.700 - Definitions for ORS 759.700 to 759.720.

Section 759.705 - Program message preamble; information to be included.

Section 759.710 - Pay-per-call information; disclosure.

Section 759.715 - Information service blocking; suspension or termination of telephone service for nonpayment of information service charges; rules.

Section 759.720 - Action against information provider for failure to comply with law; remedies; customer liability for charges.

Section 759.730 - Unauthorized changes in telecommunications carriers ("slamming"); rules.

Section 759.900 - Liability of utility; effect on other remedies; liability for personal injury or property damage.

Section 759.990 - Penalties.