Okla. Stat. tit. 17, § 17-139.106

A. There is hereby created within the Corporation Commission

the "Oklahoma Universal Service Fund" (OUSF). Not later than

January 31, 1998, the Corporation Commission shall promulgate rules

implementing the OUSF so that, consistent with the provisions of

this section, funds can be made available to eligible local exchange

Oklahoma Statutes - Title 17. Corporation Commission Page 63

telecommunications service providers and, consistent with Section 6

of this act, funds can be made available to eligible providers.

B. The OUSF shall be funded and administered to promote and

ensure the availability of primary universal services, at rates that

are reasonable and affordable and Special Universal Services, and to

provide for reasonably comparable services at affordable rates in

rural areas as in urban areas. The OUSF shall provide funding to

local exchange telecommunications service providers that meet the

eligibility criteria established in this section and to eligible

providers that meet the eligibility criteria established in Section

6 of this act for the provision of Special Universal Services.

C. The OUSF shall be funded by a charge paid by all

contributing providers as provided for in Section 139.107 of this

title, at a level sufficient to maintain universal service.

D. 1. The procedure for eligible local exchange

telecommunications service providers and eligible providers to seek

and obtain OUSF and Oklahoma Lifeline Fund (OLF) funding shall be as

set forth in this subsection.

2. Within ninety (90) days after receipt of a request for funds

from an eligible local exchange telecommunications service provider

or an eligible provider, the Administrator as defined pursuant to

Section 139.102 of this title shall independently review and

determine the accuracy of the request and advise the eligible local

exchange telecommunications service provider or eligible provider

requesting the funds of the determination of eligibility made by the

Administrator. The determination shall detail the amount of funding

recoverable from the OUSF and OLF. Failure by the Administrator to

issue a determination within the ninety-day period means the request

for OUSF or OLF reimbursement is deemed approved on a permanent

basis, and funding shall be paid within forty-five (45) days without

an order of the Commission. If a request for reconsideration of the

determination of the Administrator is not filed as provided for in

paragraph 5 of this subsection, the determination shall be deemed

final on the sixteenth day following the date of the determination.

The OUSF funding as provided in the determination of the

Administrator shall be paid to the eligible local exchange

telecommunications service provider or eligible provider within

forty-five (45) days without an order of the Commission.

3. For requests seeking OUSF funds pursuant to Section 6 of

this act, provided that an OUSF approval funding letter has been

issued as otherwise provided for in the Oklahoma Telecommunications

Act of 1997, the eligible provider shall, within sixty (60) days of

the start of service, submit to the Administrator a request for

reimbursement from the OUSF. The Administrator shall have sixty
sion.

3. For requests seeking OUSF funds pursuant to Section 6 of

this act, provided that an OUSF approval funding letter has been

issued as otherwise provided for in the Oklahoma Telecommunications

Act of 1997, the eligible provider shall, within sixty (60) days of

the start of service, submit to the Administrator a request for

reimbursement from the OUSF. The Administrator shall have sixty

(60) days to issue a determination to the Oklahoma Universal Service

Fund Beneficiary and eligible provider detailing the amount of

funding recoverable from the OUSF. Failure by the Administrator to

Oklahoma Statutes - Title 17. Corporation Commission Page 64

issue a determination within the sixty-day period means the request

for OUSF reimbursement is approved as submitted. The determination

shall detail the amount of funding recoverable from the OUSF.

Failure by the Administrator to issue a determination shall mean the

request for OUSF reimbursement is deemed approved on a permanent

basis, and funding shall be paid within forty-five (45) days without

an order of the Commission. If a request for reconsideration of the

determination of the Administrator is not filed as provided for in

paragraph 5 of this subsection, the determination shall be deemed

final on the sixteenth day following the date of the determination.

The OUSF funding as provided in the determination of the

Administrator shall be paid to the eligible provider within forty-

five (45) days without an order of the Commission.

4. A request for reimbursement as provided for in paragraph 3

of this subsection shall be in the form as determined by the

Administrator. The form shall be posted by the Administrator no

later than one hundred twenty (120) days prior to the start of the

funding year to become effective July 1 for reimbursement requests

submitted for eligible services provided during the funding year.

Any party may file an objection to a posted form with the Commission

within fifteen (15) days of the posting. The Commission shall have

thirty (30) days to issue a final order on the objection to the

form. If the Commission does not issue a final order on the

objection within thirty (30) days, the objection shall be deemed

approved.

5. Any affected party, meaning the eligible local exchange

telecommunications service provider, the eligible provider, any

service provider that pays into the OUSF, the Oklahoma Universal

Service Fund Beneficiary or the Attorney General, shall have fifteen

(15) days to file a request for reconsideration by the Commission of

the determination made by the Administrator. If the Commission does

not issue a final order within thirty (30) days from the date the

request for reconsideration is filed, the request shall be deemed

approved on an interim basis subject to refund with interest. The

interest rate on a refund shall be at a rate of not more than the

interest rate established by the Commission on customer deposits and

shall accrue for a period not to exceed ninety (90) days from the

date the funds were received by the requesting eligible local

exchange telecommunications service provider or eligible provider.

If the Commission does not issue a final order within one hundred

twenty (120) days of the filing of the request for reconsideration,

then the request for OUSF or OLF funding as filed shall be deemed

approved on a permanent basis without order of the Commission, and

the OUSF and OLF funding shall be paid without an order of the

Commission within forty-five (45) days.

Oklahoma Statutes - Title 17. Corporation Commission Page 65

6. The term "final order" as used in this subsection shall mean

an order which resolves all issues associated with the request for

OUSF or OLF funding.

E. Contributing providers may, at their option, recover from

their retail customers the OUSF charges paid by the contributing

provider. The OUSF charges shall not be subject to state or local
tatutes - Title 17. Corporation Commission Page 65

6. The term "final order" as used in this subsection shall mean

an order which resolves all issues associated with the request for

OUSF or OLF funding.

E. Contributing providers may, at their option, recover from

their retail customers the OUSF charges paid by the contributing

provider. The OUSF charges shall not be subject to state or local

taxes or franchise fees.

F. The Commission shall not, prior to implementation and the

availability of funds from the OUSF, require local exchange

telecommunications service providers to reduce rates for intrastate

access services.

G. Any eligible local exchange telecommunications service

provider may request funding from the OUSF as necessary to maintain

rates for primary universal services that are reasonable and

affordable. OUSF funding shall be provided to eligible local

exchange telecommunications service providers for the following:

1. To reimburse eligible local exchange telecommunications

service providers for the reasonable investments and expenses not

recovered from the federal universal service fund or any other state

or federal government fund incurred in providing universal services;

2. Infrastructure expenditures or costs incurred in response to

facility or service requirements established by a legislative,

regulatory, or judicial authority or other governmental entity

mandate;

3. For reimbursement of the Lifeline Service Program credits as

set forth in Section 139.105 of this title;

4. To reimburse eligible local exchange telecommunications

service providers for providing the Special Universal Services as

set forth in Section 6 of this act;

5. To defray the costs of administering the OUSF, including the

costs of administration, processing, and an annual independent

audit. The annual audit shall not be performed by the Commission

staff; and

6. For other purposes deemed necessary by the Commission to

preserve and advance universal service.

H. In identifying and measuring the costs of providing primary

universal services, exclusively for the purpose of determining OUSF

funding levels under this section, the eligible local exchange

telecommunications service provider serving less than seventy-five

thousand access lines shall, at its option:

1. Calculate such costs by including all embedded investments

and expenses incurred by the eligible local exchange

telecommunications service provider in the provision of primary

universal service, and may identify high-cost areas within the local

exchange area it serves and perform a fully distributed allocation

of embedded costs and identification of associated primary universal

service revenue. Such calculation may be made using fully

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distributed Federal Communications Commission parts 32, 36 and 64

costs, if such parts are applicable. The high-cost area shall be no

smaller than a single exchange, wire center, or census block group,

chosen at the option of the eligible local exchange

telecommunications service provider;

2. Adopt the cost studies approved by the Commission for a

local exchange telecommunications service provider that serves

seventy-five thousand or more access lines; or

3. Adopt such other costing or measurement methodology as may

be established for such purpose by the Federal Communications

Commission pursuant to Section 254 of the federal Telecommunications

Act of 1996.

I. In identifying and measuring the cost of providing primary

universal services, and exclusively for the purpose of determining

OUSF funding levels pursuant to this section, each ILEC which serves

seventy-five thousand or more access lines and each CLEC shall

identify high-cost areas within the local exchange and perform a

cost study using a Commission-approved methodology from those

identified in subsection H of this section. The high-cost area
imary

universal services, and exclusively for the purpose of determining

OUSF funding levels pursuant to this section, each ILEC which serves

seventy-five thousand or more access lines and each CLEC shall

identify high-cost areas within the local exchange and perform a

cost study using a Commission-approved methodology from those

identified in subsection H of this section. The high-cost area

shall be no smaller than a single exchange, wire center or census

block group chosen at the option of the eligible ILEC or CLEC. If

the Commission fails to approve the selected methodology within one

hundred twenty (120) days of the filing of the selection, the

selected methodology shall be deemed approved.

J. The Commission may by rule expand primary universal services

to be supported by the OUSF, after notice and hearing. The

Administrator, upon approval of the Commission, shall determine the

level of additional OUSF funding to be made available to an eligible

local exchange telecommunications service provider which is required

to recover the cost of any expansion of universal services.

K. 1. Each request for OUSF funding by an eligible ILEC

serving less than seventy-five thousand access lines shall be

premised upon the occurrence of one or more of the following:

a. in the event of a Federal Communications Commission

order, rule or policy, the effect of which is to

decrease the federal universal service fund revenues

of an eligible local exchange telecommunications

service provider, the eligible local exchange

telecommunications service provider shall recover the

decreases in revenues from the OUSF,

b. if, as a result of changes required by existing or

future federal or state regulatory rules, orders, or

policies or by federal or state law, an eligible local

exchange telecommunications service provider

experiences a reduction in revenues or an increase in

costs, it shall recover the revenue reductions or cost

increases from the OUSF, the recovered amounts being

Oklahoma Statutes - Title 17. Corporation Commission Page 67

limited to the net reduction in revenues or cost

increases, or

c. if, as a result of changes made as required by

existing or future federal or state regulatory rules,

orders, or policies or by federal or state law, an

eligible local exchange telecommunications service

provider experiences a reduction in costs, upon

approval by the Commission, the provider shall reduce

the level of OUSF funding it receives to a level

sufficient to account for the reduction in costs.

2. The receipt of OUSF funds for any of the changes referred to

in this subsection shall not be conditioned upon any rate case or

earnings investigation by the Commission. The Commission shall,

pursuant to subsection D of this section, approve the request for

payment or adjustment of payment from the OUSF based on a comparison

of the total annual revenues received from the sources affected by

the changes described in paragraph 1 of this subsection by the

requesting eligible local exchange telecommunications service

provider during the most recent twelve (12) months preceding the

request, and the reasonable calculation of total annual revenues or

cost increases which will be experienced after the changes are

implemented by the requesting eligible local exchange

telecommunications service provider.

L. Upon request for OUSF funding by an ILEC serving seventy-

five thousand or more access lines or a CLEC, the Commission shall

after notice and hearing make a determination of the level of OUSF

funds, if any, that the provider is eligible to receive for the

purposes contained in subsection K of this section. If the

Commission fails to make a determination within one hundred twenty
provider.

L. Upon request for OUSF funding by an ILEC serving seventy-

five thousand or more access lines or a CLEC, the Commission shall

after notice and hearing make a determination of the level of OUSF

funds, if any, that the provider is eligible to receive for the

purposes contained in subsection K of this section. If the

Commission fails to make a determination within one hundred twenty

(120) days of the filing of the request, the request for funding

shall be deemed approved.

M. The incumbent local exchange telecommunications service

provider, its successors and assigns, which owned, maintained and

provided facilities for universal service within a local exchange

area on January 1, 1996, shall be the local exchange

telecommunications service provider eligible for OUSF funding within

the local exchange area, except as otherwise provided for in this

act.

N. 1. Where the incumbent local exchange telecommunications

service provider receives or is eligible to receive monies from the

OUSF, except as otherwise provided in this section, the Commission,

after notice and hearing, may designate other local exchange

telecommunications service providers to be eligible for the funding,

provided:

a. the other local exchange telecommunications service

provider is certificated by the Commission to provide

and offers the primary universal services supported by

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the OUSF to all customers in the universal service

area designated by the Commission, using its own

facilities, or a combination of its own facilities and

the resale of the services or facilities of another.

Universal service support under this subsection shall

not begin until the other local exchange

telecommunications service provider has facilities in

place,

b. the other local exchange telecommunications service

provider may only receive funding for the portion of

the facilities that it owns, maintains, and uses for

regulated services,

c. the other local exchange telecommunications service

provider shall not receive OUSF funding at a level

higher than the level of funding the incumbent local

exchange telecommunications service provider is

eligible to receive for the same area if the incumbent

local exchange telecommunications service provider is

also providing service in the same area; provided, the

cost of any cost studies required to be performed

shall be borne by the party requesting such studies,

unless the party performing the study utilizes the

study for its own benefit,

d. the other local exchange telecommunications service

provider advertises the availability and charges for

services it provides through a medium of general

distribution, and

e. it is determined by the Commission that the

designation is in the public interest and the other

local exchange telecommunications service provider is

in compliance with all Commission rules for which a

waiver has not been granted.

2. Notwithstanding the criteria set forth in this section for

designation as an eligible local exchange telecommunications service

provider, a commercial mobile radio service provider may, after

notice and hearing, seek reimbursement from the OUSF for the

provision of services supported by the OUSF, and any

telecommunications carrier may seek reimbursement from the OUSF for

the provision of Lifeline Service consistent with Section 139.105 of

this title and for the provision of Special Universal Services

consistent with Section 6 of this act.

O. In exchanges or wire centers where the Commission has

designated more than one local exchange telecommunications service

provider as eligible for OUSF funding, the Commission shall permit

one or more of the local exchange telecommunications service

providers in the area to relinquish the designation as a local

exchange telecommunications service provider eligible for OUSF

Oklahoma Statutes - Title 17. Corporation Commission Page 69
mmission has

designated more than one local exchange telecommunications service

provider as eligible for OUSF funding, the Commission shall permit

one or more of the local exchange telecommunications service

providers in the area to relinquish the designation as a local

exchange telecommunications service provider eligible for OUSF

Oklahoma Statutes - Title 17. Corporation Commission Page 69

funding in a manner consistent with Section 214(e)(4) of the federal

Telecommunications Act of 1996, upon a finding that at least one

eligible local exchange telecommunications service provider shall

continue to assume the carrier-of-last-resort obligations throughout

the area.

P. For any area served by an incumbent local exchange

telecommunications service provider which serves less than seventy-

five thousand access lines within the state, only the incumbent

local exchange telecommunications service provider shall be eligible

for OUSF funding except:

1. Other eligible telecommunications carriers which provide

Special Universal Services or Lifeline Service shall be eligible to

request and receive OUSF funds in the same manner as the incumbent

local exchange telecommunications service provider in the same area

pursuant to the Oklahoma Telecommunications Act of 1997;

2. The incumbent local exchange telecommunications service

provider may elect to waive the right to be the only eligible local

exchange telecommunications service provider within the local

exchange area by filing notice with the Commission; or

3. When the Commission, after notice and hearing, makes a

determination that it is in the public interest that another local

exchange telecommunications service provider should also be deemed a

carrier of last resort and be eligible to receive OUSF funding in

addition to the incumbent local exchange telecommunications service

provider. It shall not be in the public interest to designate

another local exchange telecommunications service provider as being

a carrier of last resort and eligible to receive OUSF funding if

such designation would cause a significant adverse economic impact

on users of telecommunications services generally or if the other

carrier refuses to seek and accept carrier-of-last-resort

obligations throughout the universal service area as designated by

the Commission. The other local exchange telecommunications service

provider shall not receive OUSF funding at a level higher than the

level of funding the incumbent local exchange telecommunications

service provider is eligible to receive for the same area if the

incumbent local exchange telecommunications service provider is also

providing service in the same area and the other local exchange

telecommunications service provider meets the requirements of

subparagraphs a, b, d and e of paragraph 1 of subsection N of this

section.