20191227Decision Memo.pdf

DECISION MEMORANDUM
COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAI,
F'ROM:MATT HUNTER
DI'PUTY ATTORNEY GENERAL
DATE: DECEMBER 24,2019
SUBJECT: IN THE MATTER OF THE 2017 REVIEW OF THE, IDAHO UNMRSAL
SERVICE FUND; CASE NO. GNR-T-I7-05
BACKGROUND
In Order No. 33951, the Commission opened a generic docket to allow interested
stakeholders to provide insight and commentary on the continued viability of the ldaho Universal
Service Fund. See Order Nos. 33851 and 33951. The Commission ordered a schedule to be
adopted, including two public workshops, and a deadline for interested stakeholders to submit
position papers. Jee Order No. 33951 at 2. The first public workshop occurred on Wednesday,
January 17, 2018, and interested stakeholders submitted position papers by January 31,2O18. See
id.
In lieu of conducting the second workshop, Staff proposed to report on the
stakeholders' position papers, including Staff's own analysis, and that the stakeholders be allowed
to respond to that report. See Staff Summary and Report, Case No. GNR-T-17-05. Based on the
parties' positions and its own analysis related to Fund sustainability, Stafls report suggested three
options:
Staff Orrtion l: Leave the Fund as is, cap it based on the projected surcharge revenue
collected each year, and adjust the distribution to the recipients. This option would
be hard to execute and could conflict with Fund assessment and distribution
methodologies as codified in the Telecommunications Act of 1988;
Staff O tion 2: Seek statutory revisions. Specifically, approach the legislature about
updating and revising the statute. These changes would most likely include adding
assessments on, and expanding disbursements to include, all qualifying providers,
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so long as they are serving unserved and underserved areas according to the
amended statute; and
Staff Option 3: lrave Fund disbursement at its current leve], and supp.ly the Fund
with money from the general fund like the State of Washington does. This would
also require involving the ldaho legislature to update and revise the statute.
Id. at 11.
Four stakeholders replied to Staffs initial report..See Staffs Second Summary and
Repo(, filed on September 7, 2018 (summarizing the replies). Staff reviewed these replies and
determined that the stakeholders prefered Staff Option 2. Staff thus filed a second report
recommending that interested stakeholders create and disperse proposed legislation to the other
stakeholders by October 4,2018. The stakeholders would then meet to discuss the proposed
legislation and suggest additional process, after which Staff would file a hnal report with the
Commission.
No stakeholders proposed legislation as suggested by Staff. But three stakeholders-
CTIA, Idaho Cable Broadband Association, and Idaho Telecom Alliance-otherwise responded
to Staffls second repo(. These three stakeholders viewed legislative proposals as premature,
favoring further research into possible solutions. As no legislative solutions were proposed, Staff
did not pursue further process in this docket during 2019.
STAFF RECOMMENDATION
Staff believes the involved stakeholders are committed to seeking universal service
reform. But stakeholders should discuss possible solutions outside a formal Commission-
sanctioned docket. That solution is likely legislative, and its long-term success probably would
depend on a clear consensus among stakeholders. While Staff hopes to contribute to these
discussions, Staff does not believe they should occur as part of a Commission docket. Staff thus
recommends the Commission close this docket and encourage the parties and other stakeholders
to informally meet with a goal of agreeing on a solution to the Universal Service Fund's viability
problem.
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COMMISSION DECISION
Does the Commission wish to close this generic docket and encourage the parties and
other stakeholders to informally meet with a goal ofagreeing on a solution to the Universal Service
Fund's viability problem?
Matt Hunter
Deputy Attomey General
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3DECISION MEMORANDUM