Okla. Admin. Code § 165:59-3-70

Current through Vol. 41, No. 24, September 3, 2024

Section 165:59-3-70 - Procedures for requesting funding from the OUSF - Primary Universal Service

(a) An Eligible Local Exchange Telecommunications Service Provider may seek and obtain funds from the OUSF for Primary Universal Service by filing a "Request for OUSF Funding" with the Commission's Court Clerk. On the date of filing the Request for OUSF Funding, the Eligible Local Exchange Telecommunications Service Provider shall deliver a filed copy of the Request for OUSF Funding to the Administrator for processing.

(b) Unless a waiver is granted by the Administrator, the following minimum filing requirements are necessary for cases filed pursuant to 17 O.S. § 139.106(G), and must be made available at the time of filing:

(1) The name and address of the Eligible Local Exchange Telecommunications Service Provider;

(2) A description of the provisions of the Oklahoma Telecommunications Act relied on for the request;

(3) The amount requested for funding;

(4) A chart of corporate organization listing all employees, and detailing any affiliate relationships;

(5) A list of affiliates, a description of the service(s) or goods provided to or by the requesting Eligible Local Exchange Telecommunications Service Provider for each affiliate, and the total expense charged to the requesting Eligible Local Exchange Telecommunications Service Provider by each affiliate in sufficient detail to demonstrate that any affiliate company utilizing employees or assets of the company are allocated or reimbursed in accordance with 47 C.F.R, 32.27. This information shall be provided for the reimbursement year and the previous three (3) years (4 total), and shall include, but not be limited to, all contracts, memorandum, timesheets, calculations, and studies;

(6) A written description and documentation showing how costs are separated for each regulated and nonregulated service that the requesting Eligible Local Exchange Telecommunications Service Provider provides to, or receives from, any affiliate that is associated with the Request for OUSF Funding. This description must show compliance with the cost allocation standards and procedures as set forth in 47 C.F.R. 64.901. This information shall be provided for the reimbursement year and the previous three (3) years (4 total), and shall include, but not be limited to, all contracts, memorandum, timesheets, calculations, and studies;

(7) If applicable, copies of the Eligible Local Exchange Telecommunications Service Provider's Cost Allocation Manual (CAM), to include any changes to the CAM for the last three (3) years, including documentation supporting the cost allocation procedures and a current example of the application of the CAM's manual. If a CAM is unavailable, similar documentation must be provided;

(8) The most recent three (3) years preceding the request of audited financial statements, or if not subject to an audit, then reviewed financial statements, (including balance sheet, income statement, statement of cash flows accompanying notes, and any associated management letter);

(9) A description of network facilities, identifying all facilities included in the Request for OUSF Funding, with actual documentation available upon request by the Administrator;

(10) A description of the cost and accounting methodologies used to support the Request for OUSF Funding;

(11) A trial balance and general ledger in Excel format, or other format as agreed to by the Administrator;

(12) If applicable, a fully distributed cost study based on the FCC's Part 32, 36 and 64; provide plant reserve, rate base, income (revenue, expenses, and taxes), and other schedules included in the filing made with NECA or the FCC; a schedule of separations cost study for the reimbursement year. Underlying work-papers to be available onsite;

(13) Copies of the company's annual Federal Universal Service Fund (USF) High Cost Loop Data Collection forms for the reimbursement year and the previous three (3) years (4 total);

(14) The total number of full-time and part-time employees, officers, and/or contractors to include a listing of each of the above positions that includes title, duties, responsibilities, wages and/or salaries and benefits for the reimbursement year and the previous three (3) years (4 total), including:

(A) Written policies on the determination of salary levels, bonuses, benefits package and pension plans (if applicable);

(B) Total amount of salary paid to each employee during the reimbursement year;

(C) Total amount of bonuses paid to each employee during the reimbursement year; and

(D) NTCA wage salary survey or other documentation used to determine payroll levels during the reimbursement year.

(15) A list of expenses sought, including any prior period adjustments and/or contingent liabilities that were reported on the Eligible Local Exchange Telecommunications Service Provider's books and records and are part of this request, including but not limited to any:

(A) reimbursed employee business expense, including travel, mileage, car rental, lodging, meals, etc.;

(B) lobbying;

(C) listing of all legal services and fees by law firm;

(D) advertising expenses;

(E) external relation costs;

(F) community outreach;

(G) entertainment;

(H) food, and alcohol, including but not limited to meals and alcohol to celebrate personal events, such as weddings, births, or retirements, and company events;

(I) political contributions;

(J) charitable donations;

(K) penalties for fines or violations;

(L) membership fees and dues;

(M) gifts;

(N) uncollectible revenues;

(O) personal expenses, including travel expenses, of employees, board members, family members of employees and board members, contractors, or any other individuals affiliated with the Eligible Local Exchange Telecommunications Service Provider; and

(P) sponsorships of conferences or community events.

(16) The Federal tax classification (C-Corp, Sub-Chapter S, Partnership, etc.) of the Eligible Local Exchange Telecommunications Service Provider, and copies of the Eligible Local Exchange Telecommunications Service Provider's Federal and State tax returns for the reimbursement year and the previous three (3) years (4 total);

(17) A Description of the time tracking and reporting methods used by the Eligible Local Exchange Telecommunications Service Provider to distribute payroll dollars between regulated and non-regulated affiliates. Provide all supporting documentation for the reimbursement year and the previous three (3) years (4 total);

(18) A list of plant in-service retirements for the reimbursement year and the three (3) years prior to the reimbursement year (4 total);

(19) A plant in-service schedule by account that provides existing plant and additions, for the reimbursement year and the three (3) years prior to the reimbursement year (4 total);

(20) Materials and supplies account balances for the reimbursement year and three (3) years prior (4 total) and an overview of the operational and accounting treatment for materials and supplies, including;

(A) Describe how often new materials and supplies are purchased;

(B) Level of standard inventory on hand, including inventory for disaster recovery; and

(C) Inventory accounting method utilized.

(21) Listing by account of all revenues, including aggregate customer revenues by category (residential, business, wholesale, etc.), that were used to off-set the Eligible Local Exchange Telecommunications Service Provider's OUSF funding request. This should include any amount received from the Federal USF, OUSF, and any other federal or state funding sources;

(22) The total number of customers by category (residential, business, wholesale, etc.) for the reimbursement year and the three (3) years prior to the reimbursement year (4 total);

(23) A copy of the Eligible Local Exchange Telecommunications Service Provider's regulated Continuing Property Records (CPR). If the CPRs do not tie to the general ledger, provide a reconciliation of the differences;

(24) A list and copies of any audits or reviews to include letters, reports, memorandum, etc. conducted by the National Exchange Carriers Association (NECA), USAC, or FCC conducted during the reimbursement year and three (3) years prior to the reimbursement year (4 total); and

(25) Board of Directors information, including;

(A) Compensation;

(B) Board member names and titles; and

(C) Copies of meeting minutes for each board meeting for the reimbursement year.

(c) Unless a waiver is granted by the Administrator, the following minimum filing requirements are necessary for cases filed pursuant to 17 O.S. § 139.106(K), and must be made available at the time of filing:

(1) The name and address of the Eligible Local Exchange Telecommunications Service Provider;

(2) A description of the provisions of the Oklahoma Telecommunications Act relied on for the request;

(3) The amount requested for funding;

(4) Documentation necessary to substantiate the requested funding; and

(5) The most recently filed jurisdictional cost study, if applicable to the specific request;

(6) For highway relocation cases, the additional following minimum filing requirements are necessary:

(A) Copies of all bids or written explanation why bids were not requested;

(B) The request for proposal, if any;

(C) Copies of all invoices and work orders and proof of payment including check details;

(D) Documentation showing internal material accounting;

(E) Documentation showing internal labor accounting, including time sheets, and separate documentation showing accounting of overtime work;

(F) A certificate of completion of the relocation;

(G) Documentation from the governmental entity requesting the relocation;

(H) Map(s) showing the before and after location of the relocated facilities; and

(I) A description of betterments, if any, made during the relocation and the cost sought to be recovered.

(d) Amended requests for OUSF Funding may be accepted at the discretion of the Administrator. Grant of a request to amend a Request for OUSF Funding does not change the ninety (90) day statutory deadline for issuance of a determination based on the date of receipt of the original Request for OUSF Funding. Eligible Local Exchange Telecommunications Service Providers may withdraw the originally filed Request for OUSF Funding and file a new request at any time prior to the issuance of the Determination. Upon the filing of a Withdrawal of Request for OUSF Funding, the Commission's Court Clerk shall close the file, without Commission order. If a new request is filed, it shall be filed under a new case number.

(e) Requests for OUSF Funding found to be incomplete (missing information required by the form and instruction package contained on the Commission website) may be denied.

(f) It is the intention of the Administrator that each funding request will be independently evaluated and reviewed on a case-by-case basis.

(g) The Eligible Local Exchange Telecommunications Service Provider requesting OUSF funding for primary universal service shall make every reasonable and timely effort to obtain funding from alternative funding sources designated to support universal service, and shall submit all documentation of the effort to obtain funding from alternative funding sources designated to support universal service as a part of its Request for OUSF Funding, or an explanation for why alternative funding is not available. Upon the Eligible Local Exchange Telecommunications Service Provider producing the documentation that it has sought alternative funding sources or an explanation for why alternative funding is not available, the Eligible Local Exchange Telecommunications Service Provider shall not be precluded from having its Request for OUSF Funding processed.

(h) If an Eligible Local Exchange Telecommunications Service Provider receives funding from alternative funding sources for an investment or expense already reimbursed by the OUSF, the Eligible Local Exchange Telecommunications Service Provider shall refund the double collection to the OUSF by either reducing a prospective funding request from the OUSF by an equivalent amount or remitting cash payment to the OUSF. Under no circumstances will double recovery be allowed.

(i) Concurrent with the filing of the Request for OUSF Funding, the Eligible Local Exchange Telecommunications Service Provider shall:

Provide copies of its Request for OUSF Funding to the Administrator and the Oklahoma Attorney General.

(j) The Administrator and/or contracted agent shall independently evaluate, review, and determine the accuracy of the complete request and issue a determination of the eligibility for funds, which details the amount of funding recoverable from the OUSF, within ninety (90) calendar days. Simultaneously with the Administrator or contracted agent advising the Eligible Local Exchange Telecommunications Service Provider of the Determination, the Administrator or contracted agent shall file the written Determination with the Commission's Court Clerk.

(k) Any affected party, as defined in 17 O.S. § 139.106(D)(5), may file a Request for Reconsideration within fifteen (15) calendar days of the Determination being filed by the Administrator, by following the procedures in OAC 165:593-72.

(l) If no Request for Reconsideration is filed, the Determination shall be deemed final on the sixteenth (16) calendar day after the Determination is filed, as provided in the Oklahoma Telecommunications Act, and the case with the Commission's Court Clerk shall automatically be closed. The Administrator or contracted agent shall issue payment within forty-five (45) calendar days of the previously mentioned sixteenth (16) day, without an order of the Commission.

(m) any Request for OUSF Funding pursuant to this Section should be made within a reasonable time from the date the requesting local exchange telecommunications service provider can determine the impact of occurrence of the circumstance giving rise to the request.,

(n) A Request for OUSF Funding, pursuant to this Section, shall be signed by an attorney for the Eligible Local Exchange Telecommunications Service Provider.

(o) For cases filed pursuant to 17 O.S. § 139.106(G), consistent with OAC 165:59-3-64(d), and when the Administrator has previously issued an initial Determination or a Commission final order has been issued, an e Eligible Local Exchange Telecommunications Service Provider may file an OUSF request pursuant to 17 O.S. § 139.106(G) and request a variance and risk-based review, provided that:

(1) Requests for OUSF Funding made pursuant to the variance and risk-based review shall be filed with the Commission's Court Clerk and provided on the date of filing to the Administrator for processing.

(2) The above provisions in OAC 165:59-3-70(d) -(f) and (i)-(l) are applicable to cases processed using the variance and risk-based review.

(3) The Administrator shall develop an annual variance and risk-based review procedure and reporting format that specifies the information to be made available for purposes of such variance and risk-based review.

(4) The annual variance and risk-based review process shall include the submission of all information requested, in a format to be developed by the Administrator.

(5) Such annual variance and risk-based review shall be based on comparisons between and among the documentation provided with the initial Request for OUSF Funding, and the information subsequently provided in conjunction with an annual variance and risk-based review.

(6) In no case shall an increase in OUSF funding based on an annual variance and risk-based review exceed five (5) percent of the initial amount granted by the Administrator's Determination or a final order issued by the Commission.

(p) For cases filed pursuant to 17 O.S. § 139.106(G), determinations of funding shall be based on a Return on Equity and/or Return on Investment factor or methodology applicable to all RLECs as established by the Commission after notice and hearing. In the event of an absence of a Commission established Return on Equity and/or Return on Investment, the Administrator shall rely on the authorized rate of return prescribed by the FCC for the reimbursement year.

Okla. Admin. Code § 165:59-3-70

Adopted by Oklahoma Register, Volume 34, Issue 24, September 1, 2017, eff. 9/11/2017

Amended by Oklahoma Register, Volume 36, Issue 21, July 15, 2019, eff. 7/25/2019

Amended by Oklahoma Register, Volume 40, Issue 24, September 1, 2023, eff. 10/1/2023

Amended by Oklahoma Register, Volume 41, Issue 23, August 15, 2024, eff. 9/1/2024