Public utilities; authorize certain Tier 2 local exchange companies to elect to become subject to rate of return regulation

The limitation on the distribution period was changed from a simple repeal to an explicit extension of the time allowed for distributions from the Universal Access Fund.

New requirements mandate that local exchange companies seeking reimbursement must provide specific information and that the total annual distributions cannot exceed $50 million.

The bill now requires the creation of annual reports detailing the contents and status of the Universal Access Fund.

A new definition of 'eligible Tier 2 local exchange company' was added, restricting eligibility to companies not affiliated with providers serving more than 50,000 access lines nationwide.

Eligibility for rate-of-return regulation was updated to apply only to the newly defined 'eligible' Tier 2 companies, adding a prohibition on affiliation with large national carriers.

The deadline for Tier 2 companies to elect rate-of-return regulation was updated from December 31, 2010, to August 1, 2026, with a subsequent ban on returning to alternative regulation until August 1, 2031.