An Act To Clarify Telecommunications Regulation Reform . Amend the bill by striking out everything after the enacting clause and before the summary and inserting the following: Sec. 1. 35-A MRSA §116, sub-§l, ~, as amended by PL 2011, c. 623, Pt. B, § 1, is repealed and the following enacted in its place: B. For the purposes of this section, "intrastate gross operating revenues" means: (1) In the case of all utilities except telephone utilities, revenues derived from filed rates except revenues derived from sales for resale; (2) In the case of a telephone utility, all intrastate revenues, except revenues derived from sales for resale, whether or not the rates from which those revenues are derived are required to be filed pursuant to this Title; and (3) In the case of a qualified telecommunications provider, all intrastate revenues except revenues derived from sales for resale. Sec. 2. 35-A MRSA §7104, sub-§3, as amended by PL 2011, c. 623, Pt. B, §14, is further amended to read: 3. Authority. The commission shall adopt rules to implement this section and may require voice network service providers a-nd providers of radio paging service to contribute to a state universal service fund to support programs consistent with the goals of applicable provisions of this Title and the federal Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56. Prior to requiring that voice network service providers a-nd providers of radio paging service contribute to a state universal service fund, the commission shall assess the telecommunications needs of the State's consumers and establish the level of support required to meet those needs. If the commission establishes a state universal service fund pursuant to this section, the commission shall contract with an appropriate independent fiscal agent that is not a state entity to serve as administrator of the state universal service fund. Funds contributed to a state universal service fund are Page 1 - 126LR2107(04)-1 COMMITTEE AMENDMENT
Maine Legislature, Session 126, LD 1479
Committee Amendment CA_A_H740 (House)
Amends: 35-A MRSA §116, 35-A MRSA §7104

COMMITTEE AMENDMENT" A" to H.P. 1060, L.D. 1479, Bill, "An Act To 
Clarify Telecommunications Regulation Reform" 
. Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 35-A MRSA §116, sub-§l, ~, as amended by PL 2011, c. 623, Pt. B, 
§ 1, is repealed and the following enacted in its place: 
B. For the purposes of this section, "intrastate gross operating revenues" means: 
(1) In the case of all utilities except telephone utilities, revenues derived from 
filed rates except revenues derived from sales for resale; 
(2) In the case of a telephone utility, all intrastate revenues, except revenues 
derived from sales for resale, whether or not the rates from which those revenues 
are derived are required to be filed pursuant to this Title; and 
(3) In the case of a qualified telecommunications provider, all intrastate revenues 
except revenues derived from sales for resale. 
Sec. 2. 35-A MRSA §7104, sub-§3, as amended by PL 2011, c. 623, Pt. B, §14, 
is further amended to read: 
3. Authority. The commission shall adopt rules to implement this section and may 
require voice network service providers a-nd providers of radio paging service to 
contribute to a state universal service fund to support programs consistent with the goals 
of applicable provisions of this Title and the federal Telecommunications Act of 1996, 
Public Law 104-104, 110 Stat. 56. Prior to requiring that voice network service providers 
a-nd providers of radio paging service contribute to a state universal service fund, the 
commission shall assess the telecommunications needs of the State's consumers and 
establish the level of support required to meet those needs. If the commission establishes 
a state universal service fund pursuant to this section, the commission shall contract with 
an appropriate independent fiscal agent that is not a state entity to serve as administrator 
of the state universal service fund. Funds contributed to a state universal service fund are 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "/+" to H.P. 1060, L.D. 1479 
not state funds. Rules and any state universal service fund requirements established by 
the commission pursuant to this section must: 
A. Be reasonably designed to maximize federal assistance available to the State for 
universal service purposes; 
B. Meet the State's obligations under the federal Telecommunications Act of 1996, 
Public Law 104-104, 110 Stat. 56; 
C. Be consistent with the goals of the federal Telecommunications Act of 1996, 
Public Law 104-104, 110 Stat. 56; 
D. Ensure that any requirements regarding contributions to a state universal service 
fund be nondiscriminatory and competitively neutral; and 
G. Require, if a voice network service provider recovers its contributions under this 
section by means of a charge placed on a bill issued to a customer, explicit 
identification on that bill of any charge imposed under this section. 
For purposes of this section, "voice network service provider" means a voice service 
provider that offers its subscribers the means to initiate or receive voice communications 
using the public switched telephone network. Rules adopted under this subsection are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 3. Universal service fund limitation. Unless expressly authorized by law 
after the effective date of this Act, the Public Utilities Commission may not, sooner than 
days following the adjournment of the First Regular Session of the 127th Legislature, 
collect funds for the purpose of disbursing funds from a state universal service fund under 
the Maine Revised Statutes, Title 35-A, section 7104, subsection 3 to any company that 
operates more than 50,000 access lines in the State. The joint standing committee of the 
Legislature having jurisdiction over energy and utilities matters may report out a bill to 
the First Regular Session of the 127th Legislature to provide that authorization. 
Sec. 4. Report. The Public Utilities Commission shall submit a report to the joint 
standing committee of the Legislature having jurisdiction over energy and utilities 
matters by January 7, 2015. In the report, the commission shall address options for 
decreasing the cost of ensuring that there are adequate and affordable basic telephone 
service options throughout the State. As used in this section, "provider of last resort 
service" has the same meaning as set out in the Maine Revised Statutes, Title 35-A, 
section 7201, subsection 7, and "state universal service fund" means the fund under Title 
35-A, section 7104, subsection 3. The commission shall consider at least the following 
questions. 
1. What financial assistance is needed, if any, from the state universal service fund 
for the largest incumbent local exchange carrier in the State to continue to provide basic 
telephone service in its current service area? 
2. What type of basic telephone service could the largest incumbent local exchange 
carrier in the State provide with limited or no financial assistance from the state universal 
service fund? 
3. In what geographic areas is it not economical for the largest incumbent local 
exchange carrier to provide basic telephone service? Of those areas, which ones have no 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "R" to H.P. 1060, L.D. 1479 
alternatives for basic service at comparable rates? In those areas that havc no alternatives, 
what amount of financial assistance would the local incumbent exchange carrier need to 
provide basic telephone service? 
4. How might the characteristics of provider of last resort service be amended to 
allow for more competition in the types of service providers that are able to provide 
provider of last resort service? What are the implications of changing these characteristics 
with regard to reliability, safety, cost and ease of use of provider of last resort service and 
the availability and quality of broadband service throughout the State? What are the 
implications of limiting provider of last resort service to reliable access to emergency 
services? 
5. If the obligation of providing provider oflast resort service was not assigned to the 
incumbent local exchange carrier, how might the commission assign the obligation? What 
are the obstacles, if any, to the commission's reassigning the provider of last resort 
obligation to a service provider other than a local incumbent exchange carrier? Is there 
any action needed by the Legislature? 
6. What are the implications of limiting financial assistance for provider of last resort 
service to areas of the State that have limited competition or availability of basic service 
providers? 
7. What is the broadband penetration of each incumbent local exchange carrier that 
does and each incumbent local exchange carrier that does not receive state universal 
service funds? At what tiers, as detennined by the Federal Communications Commission, 
do incumbent local exchange carriers provide service throughout the State? Should 
providers of provider of last resort service that receive state universal service funds be 
required to increase the availability, quality or affordability of broadband in this State? 
8. In what ways can the commission and the Legislature coordinate any changes to 
provider of last resort service or to state universal service fund support with ongoing 
policy developments at the federal level resulting from cases before the Federal 
Communications Commission, including the call for rural broadband experiments, the 
Federal Communications Commission's Connect America Fund and changes to 
intercarrier compensation? 
9. Can the State ensure the provision of universal access to telecommunications 
service at just, reasonable and affordable rates 
consistent with the federal 
Telecommunications Act of 1996 without maintaining a regulated provider oflast resort 
service? If so, what is a reasonable time frame for eliminating a regulated provider of last 
resort service? 
The report may include any other infonnation the commission considers relevant to 
the Legislature's establishing the appropriate scope and nature of provider of last resort 
service in this State. The joint standing committee of the Legislature having jurisdiction 
over energy and utilities matters may report out a bill related to the subj ect matter of the 
report to the First Regular Session of the 127th Legislature.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT·fi" to H.P. 1060, L.D. 1479 
SUMMARY 
This amendment is the majority report of the Joint Standing Committee on Energy, 
Utilities and Technology. This amendment replaces the bill. This amendment amends the 
section of law related to the assessment to fund the Public Utilities Commission and the 
Office of the Public Advocate to include all utilities that were included prior to the 
enactment of Public Law 2011, chapter 623. 
This amendment prohibits the commission from collecting funds until 90 days 
following the adjournment of the First Regular Session of the 127th Legislature for the 
purpose of disbursing funds from a state universal service fund to any company that 
operates more than 50,000 access lines in the State unless expressly authorized to do so 
by law after the effective date of this legislation. 
This amendment requires the Public Utilities Commission to submit a report to the 
joint standing committee of the Legislature having jurisdiction over energy and utilities 
matters by January 7, 2015. In the report, the commission shall address various options 
for decreasing the cost of ensuring that there are adequate and affordable basic telephone 
service options throughout the State. The committee has authority to report out a bill 
related to the report. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Revised: 03/13/14 
~ac:.. 
LD 1479 
LR 2107(04) 
An Act To Clarify Telecommunications Regulation Reform 
.\ 
Fiscal Note for Bill as Amended by Committee Amendment ,A, [H ,1LfCv 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
The bill requires more utilities to be subject to assessments based on their intrastate gross operating revenues, 
resulting in the same total assessments coming to the Public Utilities Commission (PUC), but more utilities will 
contribute. This bill forbids the PUC, until 90 days following adjournment of the First Regular Session of the 127th 
Legislature, from collecting for the purpose of disbursing funds from a state universal service fund to companies 
operating more than 50,000 access lines in the State. The bill requires the PUC, by January 7, 2015, to submit a report 
to the Legislature on options for lowering the cost of ensuring adequate and affordable basic telephone service 
throughout the State. Any additional costs to the PUC to comply with these provisions are expected to be minor and 
can be absorbed within existing budgeted resources. 
LR21 07(04) - Fiscal Note - Page 1 of 1