Bill Text: NY A01946 | 2015-2016 | General Assembly | Introduced


Bill Title: Relates to universal telecommunications services.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2016-01-06 - referred to corporations, authorities and commissions [A01946 Detail]

Download: New_York-2015-A01946-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1946
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 13, 2015
                                      ___________
       Introduced  by M. of A. BRENNAN -- read once and referred to the Commit-
         tee on Corporations, Authorities and Commissions
       AN ACT to amend the public service law, in relation to  universal  tele-
         communications services
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  The public service law is amended by adding a new  section
    2  90-a to read as follows:
    3    S  90-A. STATEMENT OF POLICY. 1. THE STATE OF NEW YORK'S LONG-STANDING
    4  POLICY, CODIFIED IN THIS SECTION, IS THAT CERTAIN COMMUNICATIONS  TOOLS,
    5  AND  PARTICULARLY  TELEPHONE  SERVICES,  I.E. ESSENTIAL SERVICES, ARE SO
    6  FUNDAMENTAL THAT IT IS  NOT  IN  THE  PUBLIC  INTEREST  TO  LEAVE  THEIR
    7  PROVISION  TO  THE  VAGARIES  OF THE MARKETPLACE ALONE. FURTHERMORE, THE
    8  LEGISLATURE DECLARES THAT IT IS IN THE PUBLIC INTEREST THAT SUCH  ESSEN-
    9  TIAL  SERVICES  BE MADE AND MAINTAINED UNIVERSALLY ACROSS NEW YORK. SUCH
   10  TOOLS AND SERVICES HAVE, OVER TIME, AND INCREASINGLY NOW,  SHAPED  CITI-
   11  ZENS'  ABILITY  TO  PARTICIPATE  IN  CIVIC  AFFAIRS, TO ACQUIRE LEARNING
   12  SKILLS NEEDED FOR THEIR ECONOMIC SUCCESS AND THAT OF THE STATE,  AND  TO
   13  ENJOY THE RICH AND UNPARALLELED SOCIAL AND CULTURAL LIFE THAT IS A VITAL
   14  PART  OF  NEW  YORK  STATE'S  ECONOMY.  THE  STATE'S GOALS FOR UNIVERSAL
   15  SERVICE ARE TO FURTHER AND PROTECT THE PUBLIC INTEREST BY PROMOTING  THE
   16  AVAILABILITY  OF  QUALITY  SERVICES  AT JUST, REASONABLE, AND AFFORDABLE
   17  RATES; TO ADVANCE THE AVAILABILITY OF SUCH SERVICES  TO  ALL  CONSUMERS,
   18  INCLUDING  THOSE  IN  LOW INCOME, RURAL, INSULAR, AND HIGH COST AREAS AT
   19  RATES THAT ARE REASONABLY COMPARABLE TO THOSE  CHARGED  IN  HIGH-DENSITY
   20  URBAN  AREAS;  AND  TO INCREASE ACCESS TO, AND THE UBIQUITY OF, ADVANCED
   21  TELECOMMUNICATIONS SERVICES AVAILABLE TO THE PUBLIC IN AN EQUITABLE  AND
   22  NONDISCRIMINATORY  MANNER.  ALL  TELECOMMUNICATIONS  PROVIDERS UTILIZING
   23  TELEPHONE NUMBERS, AND  ALL  RESELLERS  OF  TELECOMMUNICATIONS  SERVICES
   24  UTILIZING  TELEPHONE NUMBERS SHOULD CONTRIBUTE TO CORE PUBLIC SAFETY AND
   25  PUBLIC INTEREST GOALS TO THE EXTENT ALLOWABLE  BY  LAW.  AT  A  MINIMUM,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01264-01-5
       A. 1946                             2
    1  THESE  INCLUDE  EQUIVALENT  UNIVERSAL  SERVICE  SUPPORT,  PROVISION  AND
    2  SUPPORT FOR E911, DISABILITY ACCESS, CONSUMER PROTECTIONS, AND EQUITABLE
    3  TAXATION. EFFECTIVE PUBLIC PROGRAMS MUST BE MADE AVAILABLE WHERE COMPET-
    4  ITIVE  FORCES  DO  NOT  RESULT IN THE DEPLOYMENT, MAINTENANCE, OR RECON-
    5  STRUCTION OF AFFORDABLE, HIGH-QUALITY, AND RELIABLE ADVANCE TELECOMMUNI-
    6  CATIONS  CAPABILITY  ACROSS  ALL  GEOGRAPHIC  REGIONS  AND   DEMOGRAPHIC
    7  SEGMENTS  OF THE STATE. TELECOMMUNICATIONS NETWORKS MUST BE INTER-OPERA-
    8  BLE, BASED ON OPEN STANDARDS, RELIABLE, SURVIVABLE, DIVERSELY PATHED, AS
    9  WIDELY INTERCONNECTED AS IS REASONABLE,  ACCESSIBLE  FOR  ALL  USERS  AS
   10  PROVIDED  FOR  BY  LAW,  INCLUDING BUT NOT LIMITED TO THE AMERICANS WITH
   11  DISABILITIES ACT, AND ALL APPLICABLE FEDERAL,  STATE,  AND  LOCAL  REGU-
   12  LATIONS,  AND  MUST  MEET  BASIC  REQUIREMENTS CONCERNING PUBLIC SAFETY,
   13  CONSUMER PROTECTION, AND RELEVANT SOCIAL AND MORAL OBLIGATIONS.
   14    2. FOR THE PURPOSES OF THIS SECTION:
   15    (A) THE TERM "UNIVERSAL SERVICE" MEANS THAT  CERTAIN  BASIC  TELEPHONE
   16  FACILITIES,   SERVICES,   AND  INSTRUMENTALITIES,  KNOWN  AS  "ESSENTIAL
   17  SERVICES", SHALL BE ACCESSIBLE TO ANY PERSON, CORPORATION,  OR  LOCALITY
   18  IN  NEW  YORK  STATE  AT COSTS REASONABLY COMPARABLE TO RATES CHARGED IN
   19  URBAN AREAS AND LOW-COST AREAS, SO THAT THERE SHALL NOT BE ANY UNDUE  OR
   20  UNREASONABLE  PREFERENCE  OR  ADVANTAGE  TO  ANY PERSON, CORPORATION, OR
   21  LOCALITY.
   22    (B) THE TERM "ESSENTIAL SERVICES" MEANS THE PROVISION BY  TELECOMMUNI-
   23  CATIONS  PROVIDERS  UTILIZING TELEPHONE NUMBERS OF VOICE GRADE ACCESS TO
   24  AND ACROSS ANALOG, DIGITAL, OR WIRELESS NETWORKS,  AS  PERTAINS  TO  THE
   25  CARRIER,  WITH  THE  ABILITY  TO  PLACE  AND  RECEIVE  CALLS; TOUCH-TONE
   26  SERVICE; SINGLE-PARTY SERVICE; ACCESS TO EMERGENCY  SERVICES,  INCLUDING
   27  911  AND E911 (WHICH IDENTIFIES A CALLER'S LOCATION); ACCESS TO OPERATOR
   28  SERVICES; ACCESS TO INTER-EXCHANGE SERVICES; ACCESS TO DIRECTORY ASSIST-
   29  ANCE; ACCESS TO "LIFELINE" SERVICES, OR  OTHER  SERVICES  EQUIVALENT  IN
   30  PRICE AND QUALITY FOR QUALIFYING LOW-INCOME CONSUMERS; AND ACCESS TO ALL
   31  OF  SUCH  OTHER SERVICES AS MAY BE MANDATED BY FEDERAL, STATE, AND LOCAL
   32  LAW.
   33    3. WITHIN THIRTY DAYS OF THE DATE ON WHICH THE COMMISSION  HAD  ACTUAL
   34  KNOWLEDGE,  OR  SHOULD  REASONABLY  HAVE  KNOWN OR BEEN INFORMED, OF THE
   35  OCCURRENCE, OR APPEARANCE OF THE PROXIMATE OCCURRENCE,  OF  A  PURCHASE,
   36  ACQUISITION,  TAKING,  OR  OTHER TRANSFER OF CONTROL OR OWNERSHIP OF THE
   37  CAPITAL STOCK  OF  A  TELECOMMUNICATIONS  PROVIDER  UTILIZING  TELEPHONE
   38  NUMBERS  ORGANIZED  OR  EXISTING UNDER THE LAWS OF THIS STATE WITHIN THE
   39  CONTEMPLATION OF SECTION ONE HUNDRED OF THIS ARTICLE OR PARAGRAPH (B) OF
   40  THIS SUBDIVISION, THE COMMISSION SHALL COMPILE AND PUBLISH A  REPORT  ON
   41  THE  EFFECT,  IF ANY, OF SUCH TRANSFER OF CONTROL UPON UNIVERSAL SERVICE
   42  IN THE STATE. SUCH REPORT SHALL  BE  KNOWN  AS  THE  "UNIVERSAL  SERVICE
   43  IMPACT  ANALYSIS",  AND  SHALL  BE ISSUED BEFORE THE COMMISSION MAY VOTE
   44  UPON THE APPROVAL OF SUCH OCCURRENCE. IF, ON THE EFFECTIVE DATE OF  THIS
   45  SUBDIVISION,  THERE  IS  A  PROCEEDING  BEFORE THE COMMISSION WITHIN THE
   46  CONTEMPLATION OF SUBDIVISION ONE OF THIS SECTION,  THEN  THE  COMMISSION
   47  SHALL  HAVE  THIRTY DAYS FROM SUCH EFFECTIVE DATE TO ISSUE ITS UNIVERSAL
   48  SERVICE IMPACT ANALYSIS REPORT. SUCH UNIVERSAL SERVICE  IMPACT  ANALYSIS
   49  REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO:
   50    (A)  AN  ANALYSIS  OF  THE  EFFECTS UPON PRICING OF TELECOMMUNICATIONS
   51  SERVICES IN HIGH-COST AND RURAL AND LOW-INCOME AREAS  AFFECTED  BY  SUCH
   52  TRANSFER OF CONTROL;
   53    (B) AN ANALYSIS OF THE ACTUAL OR POTENTIAL EFFECTS OF SUCH TRANSFER OF
   54  CONTROL  UPON  NETWORK  RELIABILITY  AND  SERVICE  QUALITY  IN  THE AREA
   55  AFFECTED BY SUCH TRANSFER OF CONTROL;
       A. 1946                             3
    1    (C) AN ANALYSIS OF THE ACTUAL OR POTENTIAL EFFECTS  UPON  NEW  SERVICE
    2  PROVISION  IN  RURAL  AND HIGH-COST AND LOW-INCOME AREAS WITHIN THE AREA
    3  AFFECTED BY SUCH TRANSFER OF CONTROL.
    4    FOR  THE  PURPOSES  OF  TRIGGERING  SUCH  REPORTING REQUIREMENT BY THE
    5  COMMISSION, THERE SHALL BE A REBUTTABLE PRESUMPTION  OF  A  TRANSFER  OF
    6  CONTROL  OR OWNERSHIP UPON THE ACQUISITION OR ACCUMULATION BY ANY PERSON
    7  OR GROUP OF PERSONS OF TEN PERCENT OR MORE  OF  THE  SHARES  OF,  OR  OF
    8  COMPARABLE OWNERSHIP INTEREST IN, A TELECOMMUNICATIONS CORPORATION. SUCH
    9  TRANSFER  OF  CONTROL OR ACQUISITION OR ACCUMULATION OF OWNERSHIP INTER-
   10  ESTS SHALL ALSO BE DEEMED TO OCCUR UPON THE SALE, ASSIGNMENT,  TRANSFER,
   11  DIVESTITURE  OF A PORTION OF A BUSINESS ENTITY, LEASE OR OTHER DISPOSAL,
   12  EITHER IN WHOLE OR PART, EITHER BY  INVOLUNTARY  SALE  OR  BY  VOLUNTARY
   13  SALE,  MERGER,  OR  CONSOLIDATION,  OR  BANKRUPTCY, OF ANY TITLE TO SUCH
   14  TELECOMMUNICATIONS CORPORATION, EITHER LEGAL OR  EQUITABLE,  OR  OF  THE
   15  LINES  OR  OTHER NETWORK ELEMENTS OF SUCH TELECOMMUNICATIONS CORPORATION
   16  WITHIN THREE OR MORE LOCAL ACCESS AND TRANSPORT AREAS (LATAS)  OR  COUN-
   17  TIES.
   18    4.  UPON  THE COMPLETION OF THE REPORT UNDER SUBDIVISION THREE OF THIS
   19  SECTION THE COMMISSION SHALL HAVE POWER AND THE  DUTY  TO  ESTABLISH  BY
   20  RULE  OR  REGULATION,  WITHIN  NINETY DAYS OF THE EFFECTIVE DATE OF THIS
   21  SECTION, SUCH CHARGES, EXCHANGES  OF  FUNDS,  FEES,  METHODOLOGIES,  AND
   22  MODALITIES  AS  ARE  NECESSARY  AND CONVENIENT TO PROMOTE AND ENSURE THE
   23  STATEWIDE UNIVERSAL AVAILABILITY OF HIGH-QUALITY ESSENTIAL  SERVICES  AT
   24  JUST,  REASONABLE,  AND AFFORDABLE RATES; TO ADVANCE THE AVAILABILITY OF
   25  SUCH SERVICES TO ALL CONSUMERS, INCLUDING THOSE IN  LOW  INCOME,  RURAL,
   26  INSULAR,  AND HIGH COST AREAS AT RATES THAT ARE REASONABLY COMPARABLE TO
   27  THOSE CHARGED IN LOW COST AND URBAN AREAS; AND TO  INCREASE  ACCESS  TO,
   28  AND  THE  UBIQUITY OF, ADVANCED TELECOMMUNICATIONS SERVICES AVAILABLE TO
   29  THE PUBLIC IN AN EQUITABLE AND NONDISCRIMINATORY MANNER. THE  COMMISSION
   30  SHALL HAVE POWER AND THE DUTY TO PROMULGATE SUCH RULES OR REGULATIONS AS
   31  ARE  NECESSARY AND CONVENIENT TO EFFECTUATE THE STATE POLICIES SET FORTH
   32  IN THIS SECTION.
   33    S 2.  The public service law is amended by adding a new  section  92-h
   34  to read as follows:
   35    S  92-H.  UNIVERSAL, AFFORDABLE AND SECURE TELECOMMUNICATIONS SERVICES
   36  FUND.  1. THE COMMISSION SHALL ESTABLISH A MECHANISM FOR THE SUPPORT  OF
   37  UNIVERSAL  SERVICE,  ALSO  REFERRED TO IN THIS SECTION AS THE "HIGH COST
   38  SUPPORT MECHANISM", WHICH SHALL OPERATE IN ACCORDANCE WITH RULES ADOPTED
   39  BY THE COMMISSION. THE PURPOSE OF THE HIGH COST SUPPORT MECHANISM IS  TO
   40  PROVIDE  FINANCIAL  ASSISTANCE  TO TELECOMMUNICATIONS SERVICES PROVIDERS
   41  UTILIZING TELEPHONE NUMBERS TO HELP MAKE BASIC  LOCAL  ANALOG,  DIGITAL,
   42  AND  WIRELESS  SERVICES  UNIVERSALLY  AVAILABLE,  AT JUST AND REASONABLE
   43  RATES AND ALLOW SUCH PROVIDERS TO BE FULLY REIMBURSED FOR THE DIFFERENCE
   44  BETWEEN THE REASONABLE COSTS INCURRED IN MAKING BASIC SERVICE  AVAILABLE
   45  TO THEIR CUSTOMERS WITHIN A RURAL, HIGH COST GEOGRAPHIC SUPPORT AREA AND
   46  THE  PRICE  CHARGED  FOR  SUCH  SERVICE,  AFTER  TAKING INTO ACCOUNT ANY
   47  AMOUNTS RECEIVED BY SUCH PROVIDERS UNDER PRICE SUPPORT MECHANISMS ESTAB-
   48  LISHED BY THE FEDERAL GOVERNMENT AND BY THIS STATE. THE COMMISSION SHALL
   49  ENSURE THAT NO TELECOMMUNICATIONS SERVICES PROVIDER IS  RECEIVING  FUNDS
   50  FROM  THIS  OR ANY OTHER SOURCE THAT, TOGETHER WITH LOCAL SERVICE REVEN-
   51  UES, EXCEEDS THE COST OF PROVIDING LOCAL SERVICE TO  CUSTOMERS  OF  SUCH
   52  PROVIDER.  THE  HIGH  COST  SUPPORT  MECHANISM  SHALL  BE  SUPPORTED AND
   53  DISTRIBUTED EQUITABLY AND ON A NONDISCRIMINATORY, COMPETITIVELY  NEUTRAL
   54  BASIS  THROUGH A RATE ELEMENT ASSESSED ON ALL TELECOMMUNICATIONS SERVICE
   55  PROVIDERS IN NEW YORK.  A  PROVIDER  THAT  OFFERS  BASIC  LOCAL  ANALOG,
   56  DIGITAL,  AND WIRELESS SERVICE THROUGHOUT AN ENTIRE SUPPORT AREA THROUGH
       A. 1946                             4
    1  USE OF ITS OWN FACILITIES OR ON A RESALE BASIS MAY  BE  QUALIFIED  AS  A
    2  PROVIDER  OF LAST RESORT OR MAY BE ELIGIBLE TO RECEIVE UNIVERSAL SERVICE
    3  SUPPORT, AS DETERMINED BY THE COMMISSION. A PROVIDER THAT FAILS  TO  PAY
    4  AN ASSESSMENT DUE AND PAYABLE UNDER THIS SECTION SHALL BE SUBJECT TO THE
    5  REVOCATION OF CERTIFICATE AFTER NOTICE AND THE OPPORTUNITY FOR A HEARING
    6  AS  PROVIDED  IN  THIS  CHAPTER. IN ALL RELEVANT GEOGRAPHIC AREAS OF THE
    7  STATE, AS DEFINED BY THE COMMISSION, THE COMMISSION SHALL  DESIGNATE  AT
    8  LEAST  ONE  PROVIDER AS THE PROVIDER OF LAST RESORT AND ADOPT PROCEDURES
    9  FOR CHANGING OR TERMINATING SUCH DESIGNATIONS. A PROVIDER OF LAST RESORT
   10  DESIGNATION CARRIES THE RESPONSIBILITY  TO  OFFER  BASIC  LOCAL  ANALOG,
   11  DIGITAL,  OR  WIRELESS SERVICE TO ALL CONSUMERS WHO REQUEST IT. A PERSON
   12  HOLDING A CERTIFICATE OF PUBLIC CONVENIENCE  AND  NECESSITY  TO  PROVIDE
   13  BASIC  SERVICE  SHALL  BE  SUBJECT  TO  THE EVOLVING DEFINITION OF BASIC
   14  SERVICE DEVELOPED BY THE COMMISSION UNDER THIS CHAPTER AND THE SYSTEM OF
   15  FINANCIAL SUPPORT FOR UNIVERSAL SERVICE ESTABLISHED  BY  THE  COMMISSION
   16  UNDER  THIS SECTION. IF AND WHEN ADDITIONAL ELEMENTS ARE INCLUDED IN THE
   17  DEFINITION OF BASIC SERVICE AS A RESULT OF  REVIEW  BY  THE  COMMISSION,
   18  PRICES  MAY INCREASE AS IS DETERMINED BY THE COMMISSION TO BE REASONABLY
   19  NECESSARY TO COVER THE COST AND ACCOUNT FOR THE INCLUSION OF SUCH  ADDI-
   20  TIONAL ELEMENTS.
   21    2.  ON  OR  BEFORE  DECEMBER  FIRST OF EACH YEAR, THE COMMISSION SHALL
   22  SUBMIT A WRITTEN REPORT TO THE  GOVERNOR,  TEMPORARY  PRESIDENT  OF  THE
   23  SENATE,  SPEAKER  OF  THE  ASSEMBLY,  MINORITY LEADERS OF THE SENATE AND
   24  ASSEMBLY, CHAIRPERSON AND RANKING MINORITY MEMBER OF THE  SENATE  ENERGY
   25  AND TELECOMMUNICATIONS COMMITTEE, AND THE CHAIRPERSON AND RANKING MINOR-
   26  ITY  MEMBER  OF  THE  ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMISSIONS
   27  COMMITTEE, ACCOUNTING FOR THE OPERATION OF THE HIGH COST  SUPPORT  MECH-
   28  ANISM  DURING  THE  PRECEDING CALENDAR YEAR AND CONTAINING THE FOLLOWING
   29  INFORMATION, AT A MINIMUM:
   30    (A) THE TOTAL AMOUNT OF MONEY THAT THE  COMMISSION  DETERMINED  SHOULD
   31  CONSTITUTE  THE  HIGH  COST  SUPPORT  MECHANISM FROM WHICH DISTRIBUTIONS
   32  WOULD BE MADE;
   33    (B) THE TOTAL AMOUNT OF MONEY ORDERED TO BE CONTRIBUTED THROUGH A RATE
   34  ELEMENT ASSESSMENT COLLECTED BY EACH TELECOMMUNICATIONS SERVICE  PROVID-
   35  ER;
   36    (C)  THE  BASIS  ON  WHICH THE CONTRIBUTION OF EACH TELECOMMUNICATIONS
   37  SERVICE PROVIDER WAS CALCULATED;
   38    (D) THE BENCHMARKS USED AND THE BASIS ON  WHICH  THE  BENCHMARKS  WERE
   39  DETERMINED;
   40    (E) THE TOTAL AMOUNT OF MONEY THAT THE COMMISSION DETERMINED SHOULD BE
   41  DISTRIBUTED FROM THE HIGH COST SUPPORT MECHANISM;
   42    (F)  THE  TOTAL AMOUNT OF MONEY DISTRIBUTED TO EACH TELECOMMUNICATIONS
   43  SERVICE PROVIDER FROM THE HIGH COST SUPPORT MECHANISM;
   44    (G) THE BASIS ON WHICH THE DISTRIBUTION TO TELECOMMUNICATIONS  SERVICE
   45  PROVIDERS WAS CALCULATED;
   46    (H)  AS  TO  EACH  TELECOMMUNICATIONS  SERVICE  PROVIDER  RECEIVING  A
   47  DISTRIBUTION, THE AMOUNT RECEIVED BY GEOGRAPHIC SUPPORT AREA AND TYPE OF
   48  CUSTOMER, THE WAY IN WHICH THE BENEFIT OF THE DISTRIBUTION  WAS  APPLIED
   49  OR ACCOUNTED FOR;
   50    (I)   THE  PROPOSED  BENCHMARKS,  THE  PROPOSED  CONTRIBUTIONS  TO  BE
   51  COLLECTED THROUGH A RATE ELEMENT ASSESSMENT BY  EACH  TELECOMMUNICATIONS
   52  SERVICE PROVIDER, AND THE PROPOSED TOTAL AMOUNT OF THE HIGH COST SUPPORT
   53  MECHANISM  FROM  WHICH  DISTRIBUTIONS  ARE  TO BE MADE FOR THE FOLLOWING
   54  CALENDAR YEAR; AND
   55    (J) THE TOTAL AMOUNT OF DISTRIBUTIONS MADE FROM THE  HIGH  COST  FUND,
   56  DIRECTLY  OR INDIRECTLY, AND HOW THEY ARE BALANCED BY RATE REDUCTIONS BY
       A. 1946                             5
    1  ALL PROVIDERS FOR THE SAME PERIOD AND A FULL ACCOUNTING  OF  AND  JUSTI-
    2  FICATION  FOR  ANY  DIFFERENCE. IF THE REPORT SUBMITTED PURSUANT TO THIS
    3  SUBDIVISION CONTAINS A PROPOSAL FOR AN INCREASE IN ANY  OF  THE  AMOUNTS
    4  LISTED  IN  PARAGRAPH  (B)  OF  THIS SUBDIVISION, SUCH INCREASE SHALL BE
    5  SUSPENDED UNTIL MARCH THIRTY-FIRST OF THE FOLLOWING YEAR.
    6    SUCH REPORT MUST ALSO DETERMINE WHAT AMOUNT OF  UNEXPENDED  FUNDS,  IF
    7  ANY, AT THE END OF EACH FISCAL YEAR, COULD BE REFUNDED TO THE CONTRIBUT-
    8  ING  TELECOMMUNICATIONS  SERVICES  PROVIDERS  ON A BASIS THAT IS PROPOR-
    9  TIONAL TO THE AMOUNTS CONTRIBUTED BY  SUCH  TELECOMMUNICATIONS  SERVICES
   10  PROVIDERS.
   11    3.  THERE  IS HEREBY CREATED, IN THE STATE TREASURY, THE NEW YORK HIGH
   12  COST ADMINISTRATION FUND, REFERRED TO IN THIS  SECTION  AS  THE  "FUND",
   13  WHICH  SHALL BE USED TO REIMBURSE THE COMMISSION AND, IF APPLICABLE, ITS
   14  CONTRACTORS, FOR REASONABLE EXPENSES INCURRED IN THE  ADMINISTRATION  OF
   15  THE  HIGH  COST  SUPPORT MECHANISM AS DETERMINED BY RULES OF THE COMMIS-
   16  SION, AND SHALL BE AUDITED IN A MANNER AND FREQUENCY TO BE DETERMINED BY
   17  THE COMPTROLLER. THE MONEYS IN THE FUND THAT ARE  TO  BE  USED  FOR  THE
   18  DIRECT  AND INDIRECT ADMINISTRATIVE COSTS INCURRED BY THE COMMISSION AND
   19  ITS CONTRACTORS SHALL BE APPROPRIATED ANNUALLY BY  THE  LEGISLATURE.  AT
   20  THE  END  OF  ANY FISCAL YEAR, ALL UNEXPENDED AND UNENCUMBERED MONEYS IN
   21  THE FUND SHALL REMAIN THEREIN AND SHALL NOT BE CREDITED  OR  TRANSFERRED
   22  TO  THE GENERAL FUND OR ANY OTHER FUND. BASED UPON THE BALANCE REMAINING
   23  IN THE FUND AND THE AMOUNT APPROPRIATED ANNUALLY BY THE LEGISLATURE  FOR
   24  USE  BY  THE  COMMISSION,  EACH  YEAR THE COMMISSION SHALL DETERMINE THE
   25  NONDISCRIMINATORY, COMPETITIVELY NEUTRAL ASSESSMENT ON ALL  TELECOMMUNI-
   26  CATIONS  SERVICE  PROVIDERS  IN NEW YORK THAT WILL BE NECESSARY TO COVER
   27  THE COST OF IMPLEMENTING THE HIGH COST  SUPPORT  MECHANISM.    ONLY  THE
   28  MONEYS FROM SUCH ASSESSMENT SHALL BE TRANSMITTED TO THE STATE TREASURER,
   29  WHO  SHALL  CREDIT  THE  SAME TO THE FUND. ALL INTEREST DERIVED FROM THE
   30  DEPOSIT AND INVESTMENT OF THIS FUND SHALL REMAIN IN THE FUND  AND  SHALL
   31  NOT REVERT TO THE GENERAL FUND.
   32    S 3. This act shall take effect immediately.
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