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High Cost Support Mechanism Funds

Concerning an exception to the application of a statutory reduction in the amount of contributions that the public utilities commission requires telecommunications companies to pay to fund the high cost support mechanism if the amount of the contributions assessed by the public utilities commission would be reduced by an amount greater than that reflected in the statutory reduction when compared to the amount of contributions from the previous year.
2016 Regular Session
Telecommunications & Information Technology
Bill Summary

The public utilities commission provides financial assistance to telecommunications companies that provide basic telephone service or broadband service in areas that lack effective competition by assessing a surcharge on all telecommunications companies in the state and allocating those contributions to the high cost support mechanism (HCSM). A portion of the HCSM is transferred to the broadband fund, which fund is administered by the broadband deployment board (board). The board awards grants for projects aimed at deploying broadband service in unserved areas of the state. From 2016 to 2023, the HCSM surcharge is statutorily reduced by a percentage of the amount of contributions that were allocated to the broadband fund in the previous year.

The bill provides that if, in a given year, the amount of contributions to the HCSM from all telecommunications companies is reduced from the amount of contributions in the previous year by an amount equal to or greater than the statutory reduction percentage, the statutory reduction percentage need not be applied.

(Note: This summary applies to this bill as introduced.)




Bill Text


Sponsor Type Legislators
Prime Sponsor

Rep. B. Rankin
Sen. K. Grantham


Rep. M. Hamner, Rep. D. Young
Sen. K. Lambert, Sen. P. Steadman


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