Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 269 (2025GS)

Sponsor

Sen. Harper, Wayne A.

Final action

Governor Signed 3/19/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• modifies provisions related to pricing flexibility for incumbent telephone corporations;
• provides for the expiration of certain carrier of last resort obligations after July 1, 2025;
• modifies provisions regarding Universal Public Telecommunications Service Support Fund eligibility;
• requires continued basic residential service to existing locations under certain conditions; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

5
54-8b-2.3
54-8b-3
54-8b-15
54-8b-2.3
54-8b-3
54-8b-15
0
Telecommunications Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Ryan D. Wilcox
LONG TITLE
General Description:
This bill modifies provisions related to telecommunications corporations and carrier of last 
resort obligations.
Highlighted Provisions:
This bill:
 modifies provisions related to pricing flexibility for incumbent telephone corporations;
provides for the expiration of certain carrier of last resort obligations after July 1, 2025;
modifies provisions regarding Universal Public Telecommunications Service Support 
Fund eligibility;
requires continued basic residential service to existing locations under certain conditions; 
and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
54-8b-2.3
, as last amended by Laws of Utah 2009, Chapter 10
54-8b-3
, as last amended by Laws of Utah 2017, Chapter 130
54-8b-15
, as last amended by Laws of Utah 2020, Chapter 294
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
54-8b-2.3
 is amended to read:
54-8b-2.3
. Pricing flexibility.
(1)
(a)
A telecommunications corporation that obtains a certificate to compete with the 
incumbent telephone corporation in a defined geographic area pursuant to Section 
54-8b-2.1
 may price any public telecommunications services it is authorized to offer, 
or any new public telecommunications service, by means of a price list or 
competitive contract.
(b)
Before the telecommunications corporation begins providing any authorized public 
telecommunications service, it shall notify the commission of:
(i)
its intent to begin providing the service; and
(ii)
the defined geographic area in which it will provide the service.
(2)
(a)
Notwithstanding other requirements of this chapter relating to pricing flexibility, 
beginning on May 2, 2005, an incumbent telephone corporation may offer retail end 
user public telecommunications services by means of a price list or competitive 
contract in the same manner as a competing telecommunications corporation as 
provided in Subsection 
(1)
:
(i)
if the incumbent telephone corporation:
(A)
(i)
is in substantial compliance with rules and orders of the commission issued 
under Section 
54-8b-2.2
; and
(B)
(ii)
has more than 30,000 access lines
; and
.
(ii)
except as provided in Subsection 
(2)(b)
.
(b)
(i)
The incumbent telephone corporation's pricing flexibility shall be the same as 
a competing telecommunications corporation's pricing flexibility for all public 
telecommunications services.
(ii)
The incumbent telephone corporation shall offer basic residential service 
throughout the area in which the incumbent telephone corporation is authorized by 
certificate to provide basic residential service.
(3)
Each price list shall:
(a)
be filed with the commission:
(i)
electronically; or
(ii)
by paper copies only if permitted by commission rule;
(b)
describe the public telecommunications service;
(c)
set forth the basic terms and conditions upon which the public telecommunications 
service is offered; and
(d)
list the prices to be charged for the public telecommunications service or the basis on 
which the services will be priced.
(4)
Prices, terms, and conditions offered under price lists or competitive contracts that are 
different from tariff prices, terms, and conditions for the same services are not 
considered discriminatory under Section 
54-3-8
 and Subsection 
54-8b-3.3(2)
.
(5)
A price list filed with the commission under this section shall take effect five days after 
it is filed with the commission.
(6)
(a)
Except as provided in Subsection 
(6)(b)
, the prices, terms, and conditions of a 
public telecommunications service offered by a telecommunications corporation 
pursuant to a competitive contract with a retail customer need not be filed with the 
commission.
(b)
Notwithstanding Subsection 
(6)(a)
, a copy of a competitive contract shall be 
provided to the commission or division of public utilities if the commission or 
division of public utilities, pursuant to general investigatory powers, requests a copy 
of the competitive contract.
(7)
(a)
Subject to Subsection 
(7)(b)
, the commission may, as determined necessary to 
protect the public interest, set an upper limit on the price that may be charged by 
telecommunications corporations for public telecommunications services that may be 
priced by means of a price list or competitive contract in a defined geographic area.
(b)
The upper limit on price imposed under Subsection 
(7)(a)
 shall be applied to all 
telecommunications corporations holding a certificate to provide the public 
telecommunications services in the defined geographic area in a competitively 
neutral manner.
(8)
(a)
The commission may revoke the authority of a telecommunications corporation to 
offer a public telecommunications service pursuant to a price list or competitive 
contract or the commission may adopt conditions or restrictions on the 
telecommunications corporation's pricing flexibility if the commission finds:
(i)
(A)
the telecommunications corporation has materially violated statutes or rules 
applicable to the specific service;
(B)
there has been or there is an imminent threat of a material and substantial 
diminution in the level of competition; or
(C)
competition has not developed; and
(ii)
revocation or conditions or restrictions on the telecommunications corporation's 
pricing flexibility is in the public interest.
(b)
The party asserting that revocation or conditions or restrictions on the 
telecommunications corporation's pricing flexibility should be imposed shall bear the 
burden of proof.
(9)
The commission shall establish rules or procedures to protect confidential, proprietary, 
and competitively sensitive information provided to the commission or the division 
pursuant to this section.
(10)
(a)
An incumbent telephone corporation serving fewer than 30,000 access lines in 
the state may petition the commission to be regulated under price regulation rather 
than traditional rate of return regulation.
(b)
In implementing price regulation for an incumbent telephone corporation serving 
fewer than 30,000 access lines, the commission may modify the requirements of any 
provision of this section if necessary to the individual circumstances of the 
incumbent telephone corporation.
(11)
An incumbent telephone corporation that is regulated under price regulation under this 
section rather than traditional rate of return regulation:
(a)
is not a carrier of last resort within the incumbent telephone corporation's local 
exchanges after July 1, 2025; and
(b)
shall:
(i)
continue to provide basic residential service to each existing location where a 
customer subscribes to the service on or before July 1, 2025; and
(ii)
continue to provide and maintain the basic residential service to existing locations 
described in Subsection (11)(b)(i) until the commission recognizes and adopts 
discontinuance findings under Subsection 
54-8b-3(8)
.
(12)
(a)
The commission may exercise any statutory power pertaining to this section, 
including reinstating a carrier of last resort obligation for any wire center:
(i)
on the commission's own initiative; or
(ii)
in response to a request for agency action.
(b)
Before taking action under Subsection (12)(a), the commission shall:
(i)
provide notice and conduct a hearing; and
(ii)
determine that modifying or reinstating carrier of last resort obligations is in the 
public interest.
(13)
(a)
Beginning July 1, 2025, a local exchange area that was served by an incumbent 
telephone corporation regulated under price regulation under this section on June 30, 
2025:
(i)
is designated as a competitive area; and
(ii)
is ineligible for Universal Public Telecommunications Service Support Fund 
under Section 
54-8b-15
.
(b)
Notwithstanding Subsection (13)(a), funding from the Universal Public 
Telecommunications Service Support Fund for the lifeline program pursuant to 
Subsections 
54-8b-15(3)
 and (15) shall remain unchanged.
Section 2, Section 
54-8b-3
 is amended to read:
54-8b-3
. Exemptions from requirements.
(1)
(a)
The commission, on its own initiative or in response to an application by a 
telecommunications corporation, a public agency, or a user of a public 
telecommunications service, may, after public notice and a hearing, issue an order 
exempting any telecommunications corporation or public telecommunications service 
from any requirement of this title, including any requirement or limitation relating to 
a telecommunication corporation's earnings, rate base, or pricing of public 
telecommunications services.
(b)
The commission may issue an order described in Subsection 
(1)(a)
, after an informal 
adjudication, without a hearing if:
(i)
the matter is not a proceeding described in Subsection 
54-1-3(2)(a)
;
(ii)
a party to an application submitted under Subsection 
(1)(a)
 requests an informal 
adjudication; and
(iii)
no person opposes the request for informal adjudication before 10 business days 
after the day on which the party files the request.
(2)
The commission shall specify in the order any requirements, terms, or conditions which 
may apply to any exemption.
(3)
An exemption may be granted for the entire service territory of a telecommunications 
corporation or for a specific geographic area of the service territory.
(4)
The commission may issue an order for an exemption only if it finds that:
(a)
the telecommunications corporation or service is subject to effective competition; and
(b)
the exemption is in the public interest.
(5)
In determining if the telecommunications corporation or service is subject to effective 
competition, the commission shall consider all relevant factors, which may include:
(a)
the extent to which competing telecommunications services are available from 
alternative telecommunications providers;
(b)
the ability of alternative telecommunications providers to offer competing 
telecommunications services that are functionally equivalent or substitutable and 
reasonably available at comparable prices, terms, quality, and conditions;
(c)
the market share of the telecommunications corporation for which an exemption is 
proposed;
(d)
the extent of economic or regulatory barriers to entry;
(e)
the impact of potential competition; and
(f)
the type and degree of exemptions to this title that are proposed.
(6)
In determining if the proposed exemption is in the public interest, the commission shall 
consider, in addition to other relevant factors, the impact the proposed exemption would 
have on captive customers of the telecommunications corporation.
(7)
(a)
The commission shall approve or deny any application for exemption under this 
section within 240 days, except that the commission may by order defer action for an 
additional 30-day period.
(b)
If the commission has not acted on any application within the permitted time period, 
the application is considered granted.
(8)
If the Federal Communications Commission permits a telecommunications corporation 
to discontinue service under 47 U.S.C. Sec. 214(a), the commission shall recognize and 
adopt the Federal Communications Commission's discontinuance findings.
Section 3, Section 
54-8b-15
 is amended to read:
54-8b-15
. Universal Public Telecommunications Service Support Fund -- 
Commission duties -- Charges -- Lifeline program.
(1)
For purposes of this section:
(a)
"Broadband Internet access service" means the same as that term is defined in 47 
C.F.R. Sec. 8.2.
(b)
"Carrier of last resort" means
:
 a rate-of-return regulated:
(i)
an 
incumbent telephone corporation; or
(ii)
a 
telecommunications corporation that, under Section 
54-8b-2.1
:
(A)
has a certificate of public convenience and necessity to provide local 
exchange service; and
(B)
has an obligation to provide public telecommunications service to any 
customer or class of customers that requests service within the local exchange.
(c)
"Connection" means an authorized session that uses Internet protocol or a 
functionally equivalent technology standard to enable an end-user to initiate or 
receive a call from the public switched network.
(d)
"Fund" means the Universal Public Telecommunications Service Support Fund 
established in this section.
(e)
"Non-rate-of-return regulated" means having price flexibility under Section 
54-8b-2.3
.
(f)
(e)
"Rate-of-return regulated" means subject to regulation under Section 
54-4-4
.
(g)
(f)
"Wholesale broadband Internet access service" means the end-user loop 
component of Internet access provided by a 
rate-of-return regulated 
carrier of last 
resort that is used to provide, at retail:
(i)
combined consumer voice and broadband Internet access; or
(ii)
stand-alone, consumer, broadband-only Internet access.
(2)
(a)
There is established an expendable special revenue fund known as the "Universal 
Public Telecommunications Service Support Fund."
(b)
The fund shall provide a mechanism for a qualifying carrier of last resort to obtain 
specific, predictable, and sufficient funds to deploy and manage, for the purpose of 
providing service to end-users, networks capable of providing:
(i)
access lines;
(ii)
connections; or
(iii)
wholesale broadband Internet access service.
(c)
The commission shall develop, by rule made in accordance with 
Title 63G, Chapter 
3, Utah Administrative Rulemaking Act
, and consistent with this section, policies and 
procedures to govern the administration of the fund.
(3)
Subject to this section, the commission shall use funds in the Universal Public 
Telecommunications Service Support Fund to:
(a)
fund the hearing and speech impaired program described in Section 
54-8b-10
;
(b)
fund a lifeline program that covers the reasonable cost to an eligible 
telecommunications carrier, as determined by the commission, to offer lifeline 
service consistent with the Federal Communications Commission's lifeline program 
for low-income consumers;
 and
(c)
fund, for the purpose of providing service to end-users, a 
rate-of-return regulated or 
non-rate-of-return regulated 
carrier of last resort's deployment and management of 
networks capable of providing:
(i)
access lines;
(ii)
connections; or
(iii)
wholesale broadband Internet access service that is consistent with Federal 
Communications Commission rules
; and
.
(d)
fund one-time distributions from the Universal Public Telecommunications Service 
Support Fund for a non-rate-of-return regulated carrier of last resort's deployment and 
management of networks capable of providing:
(i)
access lines;
(ii)
connections; or
(iii)
broadband Internet access service.
(4)
(a)
A 
rate-of-return regulated 
carrier of last resort is eligible for payment from the 
Universal Public Telecommunications Service Support Fund if:
(i)
(a)
the 
rate-of-return regulated 
carrier of last resort provides the services described 
in Subsections 
(3)(c)(i)
 through 
(iii)
; and
(ii)
(b)
the 
rate-of-return regulated 
carrier of last resort's reasonable costs, as 
determined by the commission, to provide public telecommunications service and 
wholesale broadband Internet access service are greater than the sum of:
(A)
(i)
the 
rate-of-return regulated 
carrier of last resort's revenue from basic 
residential service considered affordable by the commission;
(B)
(ii)
the 
rate-of-return regulated 
carrier of last resort's regulated revenue derived 
from providing other public telecommunications service;
(C)
(iii)
the 
rate-of-return regulated 
carrier of last resort's revenue from rates 
approved by the Federal Communications Commission for wholesale broadband 
Internet access service; and
(D)
(iv)
the amount the 
rate-of-return regulated 
carrier of last resort receives from 
federal universal service funds.
(b)
A non-rate-of-return regulated carrier of last resort is eligible for payment from the 
Universal Public Telecommunications Service Support Fund for reimbursement of 
reasonable costs as determined by the commission if the non-rate-of-return regulated 
carrier meets criteria that are:
(i)
consistent with Subsections 
(2)
 and 
(3)
; and
(ii)
developed by the commission by rule made in accordance with 
Title 63G, 
Chapter 3, Utah Administrative Rulemaking Act
.
(5)
A 
rate-of-return regulated 
carrier of last resort that qualifies for funds under this 
section:
(a)
is entitled to a rate of return equal to the weighted average cost of capital rate of 
return prescribed by the Federal Communications Commission for rate-of-return 
regulated carriers; and
(b)
may use any depreciation method allowed by the Federal Communications 
Commission.
(6)
(a)
The commission shall determine if a 
rate-of-return regulated 
carrier of last resort 
is correctly applying a depreciation method described in Subsection 
(5)(b)
.
(b)
If the commission determines under Subsection 
(6)(a)
 that a 
rate-of-return regulated 
carrier of last resort is incorrectly applying a depreciation method or that the 
rate-of-return regulated 
carrier of last resort is not using a depreciation method 
allowed by the Federal Communications Commission, the commission shall issue an 
order that provides corrections to the 
rate-of-return regulated 
carrier of last resort's 
method of depreciation.
(7)
A carrier of last resort that receives funds from the Universal Public 
Telecommunications Service Support Fund may only use the funds in accordance with 
this section within the area for which the carrier of last resort has a carrier of last resort 
obligation.
(8)
(a)
Except as provided in Subsection 
(8)(b)
, each access line provider and each 
connection provider shall contribute to the Universal Public Telecommunications 
Service Support Fund through an explicit charge assessed by the commission on the 
access line provider or connection provider.
(b)
The charge described in Subsection 
(8)(a)
 does not apply to a prepaid wireless 
telecommunications service, as defined in Section 
69-2-405
, that is subject to the 
service charge described in Subsection 
69-2-405(2)(b)
.
(9)
The commission shall calculate the amount of each explicit charge described in 
Subsection 
(8)
 using a method developed by the commission by rule made in accordance 
with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, that:
(a)
does not discriminate against:
(i)
any access line or connection provider; or
(ii)
the technology used by any access line or connection provider;
(b)
is competitively neutral; and
(c)
is a function of an access line or connection provider's:
(i)
annual intrastate revenue;
(ii)
number of access lines or connections in the state; or
(iii)
a combination of an access line or connection provider's annual intrastate 
revenue and number of access lines or connections in the state.
(10)
The commission shall develop the method described in Subsection 
(9)
 before January 
1, 2018.
(11)
An access line or connection provider that provides mobile telecommunications 
service shall contribute to the Universal Public Telecommunications Service Support 
Fund only to the extent permitted by the Mobile Telecommunications Sourcing Act, 4 
U.S.C. Sec. 116 et seq.
(12)
Nothing in this section shall be construed to enlarge or reduce the commission's 
jurisdiction or authority, as provided in other provisions of this title.
(13)
A person that fails to make a required contribution to the fund created by this section, 
or that fails to comply with a commission directive concerning the person's books, 
records, or other information required by the commission to administer this section, is 
subject to applicable penalties.
(14)
Nothing in this section gives the commission the authority:
(a)
to regulate broadband Internet access service;
(b)
to require a carrier of last resort to provide broadband Internet access service; or
(c)
assess a contribution in violation of the Internet Tax Freedom Act, 47 U.S.C. Sec. 
151 note.
(15)
(a)
A facilities-based or nonfacilities-based wireless telecommunication provider is 
eligible for distributions from the Universal Telecommunications Service Support 
Fund under the lifeline program described in Subsection 
(3)(b)
 for providing lifeline 
service that is consistent with the Federal Communications Commission's lifeline 
program for low-income consumers.
(b)
Except as provided in Subsection 
(15)(c)
, the commission may impose reasonable 
conditions for providing a distribution to a wireless telecommunication provider 
under the lifeline program described in Subsection 
(3)(b)
.
(c)
The commission may not require a wireless telecommunication provider to offer 
unlimited local calling to a lifeline customer as a condition of receiving a distribution 
under the lifeline program described in Subsection 
(3)(b)
.
(16)
The commission shall report to the Public Utilities, Energy, and Technology Interim 
Committee each year before November 1 regarding:
(a)
the contribution method described in Subsection 
(9)
;
(b)
the amount of distributions from and contributions to the Universal Public 
Telecommunications Service Support Fund during the last fiscal year;
(c)
the availability of services for which Subsection 
(3)
 permits Universal Public 
Telecommunications Service Support Fund funds to be used; and
(d)
the effectiveness and efficiency of the Universal Public Telecommunications Service 
Support Fund.
Section 4. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-7-25 3:21 PM