Okla. Stat. tit. 17, § 17-139.109.1

Competitive bidding - Funding.

A. The following services are hereby declared to be Special

Universal Services:

1. Each eligible healthcare entity in this state as defined in

Section 139.102 of Title 17 of the Oklahoma Statutes shall be

eligible to receive Special Universal Services for telemedicine

providers. Special Universal Services for telemedicine providers

shall include the provision of bandwidth per standards as

recommended by the Federal Communications Commission sufficient for

providing telemedicine services including the telemedicine line,

reasonable installation and network termination equipment owned and

Oklahoma Statutes - Title 17. Corporation Commission Page 72

operated by the eligible provider that is necessary to provide the

eligible telemedicine service;

2. Each public school as defined in Section 139.102 of Title 17

of the Oklahoma Statutes shall be eligible to receive Special

Universal Services for schools. Special Universal Services for

schools shall include the E-rate Eligible Services List (ESL) for

Category One services as determined by the FCC for the applicable

funding year or, in the absence of such a list, as published by the

Universal Services Administrative Company. In the event no ESL is

available from the FCC or USAC for the applicable funding year,

eligible services will be those on the ESL for the last funding year

for which an ESL was available. Special Universal Services shall

include the provision of bandwidth sufficient for providing

educational services not to exceed, without good cause shown, the

standards established for the relevant funding year by the State

Educational Technology Directors Association (SETDA) or successor

educational broadband standard including Internet access lines, WAN

connections, reasonable installation, and network termination

equipment owned and operated by the eligible provider as defined by

the ESL that is necessary to provide the eligible service. Student

counts as reported to the State Department of Education in October

of the year prior to the relevant funding year shall be utilized for

the purpose of determining bandwidth recommendations established by

SETDA for purposes of this paragraph. In the absence of standards

prescribed for the applicable funding year, the standards for the

next prescribed funding year shall be used. Special Universal

Services shall not include voice services that use separate lines or

have allocated bandwidth. The Commission may modify the service

considered to be Special Universal Services pursuant to rule, after

notice and hearing; and

3. Each public library as defined in Section 139.102 of Title

17 of the Oklahoma Statutes shall be eligible to receive Special

Universal Services for libraries. Special Universal Services for

libraries shall include the E-rate Eligible Services List ("ESL")

for Category One services as determined by the Federal

Communications Commission for the applicable funding year or, in the

absence of such a list, as published by the Universal Services

Administrative Company. In the event no ESL is available from the

FCC or USAC for the applicable funding year, eligible services will

be those on the ESL for the last funding year for which an ESL was

available. Special Universal Services shall include the provision

of bandwidth sufficient for providing library services per standards

as recommended by the Federal Communications Commission including

Internet access lines, reasonable installation and network

termination equipment owned and operated by the eligible provider

that is necessary to provide the eligible service. Special

Universal Services shall not include voice services that use

Oklahoma Statutes - Title 17. Corporation Commission Page 73

separate lines or have allocated bandwidth. The Commission may

modify the services considered to be Special Universal Services

pursuant to rule, after notice and hearing.
wned and operated by the eligible provider

that is necessary to provide the eligible service. Special

Universal Services shall not include voice services that use

Oklahoma Statutes - Title 17. Corporation Commission Page 73

separate lines or have allocated bandwidth. The Commission may

modify the services considered to be Special Universal Services

pursuant to rule, after notice and hearing.

B. 1. Eligible services that are exempt from competitive

bidding pursuant to state law or the rules of the Federal Universal

Service Support Mechanisms or successor program or programs shall be

exempt from the Special Universal Services competitive bidding

requirements set forth in this subsection, and the Oklahoma

Universal Service Fund Beneficiary must provide evidence of such

exemption as part of the funding request.

2. An OUSF Beneficiary may be eligible to receive funding from

both the OUSF and other state or federal funds; however, in no

instance shall there be a double recovery. The OUSF Beneficiary

shall make every reasonable effort to obtain funding from another

state and/or federal fund designed to support Special Universal

Services. The OUSF Beneficiary shall provide the OUSF Administrator

with information regarding the recipient's request for funding from

government sources designed to support the provisioning of Special

Universal Services, or an explanation of why such funding is not

available or why the recipient of the Special Universal Services did

not request such funding. Failure to provide such documentation may

result in the OUSF Administrator denying in whole or in part, a

request for Special Universal Services funding from the OUSF. If an

OUSF Beneficiary is not eligible to receive funding from other state

or federal funds per the program rules of the other state or federal

funds, the OUSF Beneficiary shall be exempt from the requirement to

obtain funding from another state and/or federal fund designed to

support Special Universal Services set forth in this subsection.

The OUSF Beneficiary must provide evidence of such exemption as part

of the funding request.

3. The credit amount for the provision of Special Universal

Services as provided for in subsection A of this section shall be

determined as provided for in this subsection.

4. An eligible provider shall be entitled to reimbursement from

the Oklahoma Universal Service Fund (OUSF) for providing Special

Universal Services as described in subsection A of this section. In

no case shall the reimbursement from the OUSF be made for an

Internet subscriber fee or charges incurred as a result of services

accessed via the Internet.

5. Oklahoma Universal Service Fund Beneficiaries shall conduct

a fair and open competitive bidding process to select the services

and carrier eligible for support. The competitive bidding process

shall meet the following standards:

a. the solicitation of bids shall clearly identify the

bandwidth range requested by the Oklahoma Universal

Service Fund Beneficiary or consortium,

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b. the Oklahoma Universal Service Fund Beneficiary shall

not limit bidders based upon technology,

c. the bidding shall be open to all carriers authorized

to receive OUSF funding in the telephone exchange

where the Oklahoma Universal Service Fund Beneficiary

is located or where the members of the consortium are

located, and

d. the bidding shall not be structured in a manner to

exclude carriers eligible to receive OUSF funding in

the telephone exchange where the Oklahoma Universal

Services Fund Beneficiary is located.

6. For Special Universal Services that are competitively bid in

compliance with this act, the credit amount shall be not more than

twenty-five percent (25%) greater than the lowest cost reasonable

qualifying bid of the total prediscount amount of eligible services

plus installation charges, less federal funding support for the same
the Oklahoma Universal

Services Fund Beneficiary is located.

6. For Special Universal Services that are competitively bid in

compliance with this act, the credit amount shall be not more than

twenty-five percent (25%) greater than the lowest cost reasonable

qualifying bid of the total prediscount amount of eligible services

plus installation charges, less federal funding support for the same

services including installation charges issued in a funding

commitment letter or similar approval document for the Federal

Universal Service Support Mechanism or successor program or programs

for the applicable funding year.

7. For purposes of this act, "lowest cost reasonable qualifying

bid" means a bid that:

a. represents the lowest total cost proposal including

monthly recurring and nonrecurring charges for

eligible services,

b. is reasonable to meet the needs of the Oklahoma

Universal Service Fund Beneficiary as listed in the

request for bids,

c. is submitted during the same competitive bidding

period as the awarded bid,

d. is for a bandwidth within the range requested for bid

and selected by the Oklahoma Universal Service Fund

Beneficiary,

e. is for the same contract term as the bid that was

selected by the Oklahoma Universal Service Fund

Beneficiary,

f. meets the requirements specified in the request for

bid by the Oklahoma Universal Service Fund

Beneficiary, and

g. was the result of a fair and open competitive bidding

process as defined in this act.

8. If a long-term contract includes change clauses for changes

in sites or services, the Oklahoma Universal Service Fund

Beneficiary shall not be required to conduct a new competitive bid

during the life of the original contract, which may not exceed five

(5) years.

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9. For eligible services associated with an Oklahoma Universal

Service Fund Beneficiary that does not competitively bid in

compliance with this act, the credit amount shall be determined at

the discretion of the Administrator.

C. 1. Special Universal Services shall not be sold, resold or

transferred in consideration for money or any other thing of value.

2. The OUSF shall not fund more than one eligible provider for

the same service at the same location for the same time period,

except during a transition period from one eligible provider to

another. Funding during a transition period shall not exceed thirty

(30) days.

D. The Administrator shall have the authority to investigate

each request for OUSF funding for Special Universal Services in

order to ensure that the OUSF pays only for the Special Universal

Services authorized in this section. The Administrator shall deny

requests for OUSF funding in excess of the credit amounts authorized

in subsection B of this section unless good cause is shown.

E. The Corporation Commission shall have authority to

investigate and modify or reject in whole or part a Special

Universal Service request under subsection A of this section if the

request does not meet the specified criteria, if the Corporation

Commission's investigation determines that the entity has not

provided sufficient documentation for the requested services, or if

the Corporation Commission determines that granting the request is

not in the public interest due to fraud.

F. 1. The Special Universal Services preapproval and

reimbursement procedures as set forth in this subsection shall be

effective and shall apply for each applicable funding year beginning

July 1, 2017.

2. The Oklahoma Universal Service Fund Beneficiary

administrative preapproval submission process shall be as follows:

a. the Administrator shall establish an administrative

approval process to be initiated by the Oklahoma

Universal Service Fund Beneficiary in a timely fashion

for the purpose of determining eligible services and

credit amounts for the upcoming funding year. The
July 1, 2017.

2. The Oklahoma Universal Service Fund Beneficiary

administrative preapproval submission process shall be as follows:

a. the Administrator shall establish an administrative

approval process to be initiated by the Oklahoma

Universal Service Fund Beneficiary in a timely fashion

for the purpose of determining eligible services and

credit amounts for the upcoming funding year. The

administrative preapproval submission process shall

include all necessary forms and instructions,

hereinafter referred to as the "OUSF administrative

preapproval request". The Administrator shall

determine the form for the OUSF administrative

preapproval requests. The form shall be posted on the

Commission website no later than June 30 of each year

to become effective for any OUSF administrative

preapproval requests submitted after August 31 of that

year. Any party may file an objection to the form

with the Commission within fifteen (15) days of

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posting. The Commission shall issue a final order on

the objection to the form within thirty (30) days,

b. the Administrator shall issue an approval funding

letter to the Oklahoma Universal Service Fund

Beneficiary and the eligible provider within ninety

(90) days of receipt of a properly completed OUSF

administrative preapproval request. Failure by the

Administrator to issue an approval funding letter

within the ninety-day period means the OUSF

administrative preapproval request submitted by the

Oklahoma Universal Service Fund Beneficiary is

approved as submitted and the subsequent request for

reimbursement submitted by the eligible provider which

is consistent with the information submitted in the

OUSF administrative preapproval request shall be

approved as submitted,

c. the approval funding letter shall inform the Oklahoma

Universal Service Fund Beneficiary of the preapproved

services and associated credit amount for the

applicable funding year. The amount of OUSF funding

preapproved under this subsection may be subject to

adjustments based on the amount of support received

from other sources, if any, and adjustments to pricing

that may occur between the time of preapproval and

installation of service,

d. any OUSF administrative preapproval request shall be

submitted to the Administrator in the format outlined

in instructions posted on the Commission website. The

OUSF administrative preapproval request shall include

but not be limited to the following:

(1) a Special Universal Services request form as

posted on the Commission website no later than

June 30 of each year for requests made after

August 31 of that year,

(2) a Federal Universal Service Support Mechanism or

successor program or programs form used to

request federal funding support for the

applicable funding year,

(3) a federal funding commitment letter for the

applicable funding year, if issued, and
l Services request form as

posted on the Commission website no later than

June 30 of each year for requests made after

August 31 of that year,

(2) a Federal Universal Service Support Mechanism or

successor program or programs form used to

request federal funding support for the

applicable funding year,

(3) a federal funding commitment letter for the

applicable funding year, if issued, and

(4) competitive bidding documentation for the

relevant funding year,

e. issuance of an OUSF approval funding letter by the

Administrator shall occur without a Commission order,

f. OUSF administrative preapproval requests not submitted

by June 30 prior to the applicable funding year shall

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be processed by the Administrator on a first-in-first-

out basis, and

g. after a preapproval funding letter has been issued, an

OUSF Beneficiary may submit a new administrative

preapproval request to provide corrections or

additional information per program rules issued by the

Commission.

3. The eligible provider reimbursement process shall be as

follows:

a. requests for reimbursement shall be submitted per

procedures as set forth in subsection D of Section

139.106 of Title 17 of the Oklahoma Statutes,

b. the Administrator shall post the monthly payout report

to the Commission website,

c. funding for eligible services, including federal

funding, shall not exceed actual eligible expenses,

d. any change in cost of eligible services during the

funding year shall be reported by the eligible

provider to the OUSF and:

(1) all decreases in cost shall be deemed approved

until the next eligible bidding period and all

cost savings shall be properly allocated to the

OUSF and the Oklahoma Universal Service Fund

Beneficiary, and

(2) increases in cost shall be reviewed for approval

as provided for in Commission rules, and

e. issuance of a determination by the Administrator shall

not require a Commission order.