Okla. Admin. Code § 165:55-3-1

Current through Vol. 41, No. 19, June 17, 2024

Section 165:55-3-1 - Certificate of Convenience and Necessity

(a)Requirement for Certificate of Convenience and Necessity. No person, firm, association, corporation or cooperative shall furnish telecommunications service to any end-user or customer in the State of Oklahoma without first having secured a Certificate of Convenience and Necessity from the Commission.

(b)Requirement for Certificate of Convenience and Necessity prior to receiving funding from the Oklahoma Universal Service Fund. Any provider, excluding One Net, requesting funding from the Oklahoma Universal Service Fund for the provision of Special Universal Services shall first obtain a Certificate of Convenience and Necessity from the Commission.

(c)Application for Certificate of Convenience and Necessity. Every provider of telecommunications services making application to the Commission for a Certificate of Convenience and Necessity in accordance with 17 O.S. § 131 et seq. shall be required to demonstrate its financial, managerial and technical ability to provide the requested telecommunications services in the State of Oklahoma. An application for a certificate to provide telecommunications service in the State of Oklahoma shall be made pursuant to and in conformance with the requirements of Oklahoma law and any additional requirements set forth in this Chapter. An application for Certificate of Convenience and Necessity shall be filed with the Commission's Office of the Court Clerk. A filing fee pursuant to the Commission's Rules of Practice, OAC 165:5, shall be required.

(d)Application requirements for Certificate of Convenience and Necessity. An application for a Certificate of Convenience and Necessity shall include information and attachments which are certified as true and correct by an officer of any corporate applicant, or an authorized representative of an unincorporated applicant. The Commission reserves the right to deny or dismiss, without prejudice, any application found not to be in compliance with this subchapter. If an applicant is unable to produce any information required in this subsection, the applicant must provide a statement explaining why the information is not included.

(1) The application shall contain the following information:

(A) The complete name, including any and all trade name(s) under which business will be conducted pursuant to 18 O.S. § 1140, corporate or other headquarters street address and names/addresses of principal or corporate officers of the entity proposing to sell telecommunications service or provide Special Universal Services to the public in the State of Oklahoma. The telephone number and, if applicable, the toll-free number will also be included.

(B) If different from those provided pursuant to subparagraph (1)(A) of this Section, the names and address(es) of all officers and corporate or primary offices of the applicant for a Certificate of Convenience and Necessity located in the State of Oklahoma and the name(s) and address(es) of senior management personnel responsible for Oklahoma operations.

(C) A description of any facilities that will be used to provide services in Oklahoma, and whether applicant intends to add additional facilities that will be used to provide services in Oklahoma.

(D) A written affirmation, signed before a Notary Public by someone with authority to bind the corporation or entity, containing the following statements:

(i) That the information contained in the application is true and correct;

(ii) That the applicant is familiar with and will comply with all federal and state laws, and the rules and orders of this Commission;

(iii) That for each area or exchange(s) an applicant proposes to serve, the applicant agrees to offer the provisioning of service to all end-users within that area or exchange(s) on a nondiscriminatory basis;

(iv) That the applicant understands the Commission's contempt authority;

(v) That the applicant will contribute to the Oklahoma Universal Service Fund pursuant to OAC 165:59;

(vi) That the applicant will comply with the provisions of 165:55-13-10.1 and will include a statement to this effect in its tariffs;

(vii) That the applicant is a data-only provider or is seeking a CCN exclusively in order to seek reimbursement from the OUSF under 17 O.S. § 139.109.1(B)(4) for the provision of Special Universal Services, or, if not, that prior to commencing to provide local exchange service the applicant will notify each Public Safety Answering Point ("PSAP") within their service area that they will be providing service within the area served by the PSAP, and provide each PSAP with contact information in case there are issues with the completion of calls by the customers of the Applicant. The attachment shall also state that the Applicant will comply with the requirements of 17 O.S. § 131 and will collect and disburse the E911/911 fee as required by 63 O.S. § 2814. Such affirmation should also include a statement that applicant will provide proof to the Commission of such compliance within thirty (30) days following Applicant's initial provisioning of local service;

(viii) That the applicant understands that before it ceases, discontinues, or curtails operations and/or service, it must file with the Commission and provide each affected customer, in the manner required by the Commission, notice of the intended action, and, if the change impacts the availability or operation of E911 service, must also provide notice to any E911/911 Database Management Service Provider, pursuant to OAC 165:55-15-5;

(ix) A statement that the applicant, its owners (individuals and/or entities) or investors holding more than five (5) percent ownership, or companies, or officers and senior management, are not currently under investigation or involved in any pending or concluded investigations or litigation, either in this state or in another state or jurisdiction, for violation of any deceptive trade or consumer protection law or regulation related to the operation of a regulated industry, if that is the case;

(x) A statement that the applicant, or its owners (individuals and/or entities) or investors holding more than five (5) percent ownership, or companies, or officers and senior management, have not been fined, found guilty, sanctioned or otherwise penalized either in this state or in another state or jurisdiction for violation or any consumer protection law or regulation related to the operation of a regulated industry, if that is the case; and

(xi) If either of the statements required in (ix) and (x) above is untrue, a detailed explanation of the circumstances of the investigation or fine, sanction, or penalization including a detailed description of the case(s), the number of customers involved, and current status of the proceeding.

(xii) A statement as to whether applicant currently seeks state or federal universal service funding of any kind for services provided in the state(s) in which applicant is currently authorized to provide service, and whether applicant intends to seek Oklahoma Universal Service Fund funding in Oklahoma.

(2) The attachments to the application shall include the following:

(A) Copies of the applicable Articles of Incorporation, Articles of Organization, and/or partnership agreement, and/or Joint Venture agreement and, where they exist, by-laws or operating agreement of the applicant for a Certificate of Convenience and Necessity and any entity or individual owning a whole or controlling interest in the applicant for a Certificate of Convenience and Necessity.

(B) A copy of the applicable certificate, issued by Oklahoma's Secretary of State, to transact business in the State of Oklahoma, and evidence that applicant is in good standing with the Oklahoma Secretary of State.

(C) A copy of the Corporate Trade Name Report, issued by Oklahoma's Secretary of State, shall be provided for each and every trade name utilized by the telecommunications service provider, data-only provider, or IXC, i.e. a "d/b/a".

(D) Proof that the third-party surety bond, surety bond or letter of credit required in subsection (h) of this Section has been obtained, if applicable.

(E) Documentation indicating the applicant's organizational structure and ownership such as:

(i) For corporations, limited liability companies, partnerships and/or joint ventures, the applicant's stockholders annual reports and SEC 10Ks for the last three (3) years, if applicable, or, if the company is not publicly traded, its financial statements for the last three (3) years, if available, or other documentation as may be requested by the Commission.

(ii) A sole proprietor, as well as a limited liability company, shall provide financial statements for the last three (3) years, if available, or other documentation as may be requested by the Commission.

(F) A brief description of its history of providing the requested telecommunications service, Special Universal Services, or other telecommunications services, in order to demonstrate its managerial experience. The history shall include a list of the geographic areas in which it previously provided service and/or is currently providing service and such other documentation as may be requested by the Commission. Applicants for a Certificate of Convenience and Necessity without prior experience shall list the experience of each principal officer, partner, or the sole proprietor in order to demonstrate its managerial ability, and/or provide other documentation as may be requested by the Commission.

(G) A description of the applicant's experience in providing telecommunications services or Special Universal Services in order to demonstrate its technical abilities. In the case of applicants for a Certificate of Convenience and Necessity without prior experience, the applicant shall provide documentation which supports its technical abilities or other documentation as may be requested by the Commission.

(H) The name, address, and toll-free telephone number that an end-user may contact concerning repairs and maintenance, complaints, billing questions, refunds and any other customer service-related inquiries.

(I) The contact name, address, and telephone number of the individual with overall responsibility for repairs and maintenance, complaints, billing questions, refunds, and any other customer service-related inquiries. This will be the principal contact for CSD regarding complaints involving the telecommunications service provider, IXC or data-only provider.

(J) The contact name, address, and telephone number of the principal contact to be utilized by the Commission's Public Utility Division regarding any questions which are not related to customer service.

(K) A list of all other states, if any, where:

(i) The applicant is authorized to operate;

(ii) Authorization to operate is pending;

(iii) A request for authorization has been denied, including the reason stated for denial, with a certified copy of the denial document attached; and/or,

(iv) Authorization has been revoked, with a certified copy of the revocation document attached.

(L) A complete set of proposed initial tariffs which include the terms and conditions of service and all rates and charges for each service classification shall be in a format consistent with Subchapter 5 of this Chapter or a statement that the applicant will file tariffs pursuant to OAC 165:55-3-3. A company may elect to post Terms of Service on a publicly available website, subsequent to the approval of their initial tariffs.

(M) A description of the applicant's proposed service territory.

(N) A description of the deposit, if the applicant intends to collect deposits, and disconnection rules to be applied to end-users by the applicant, all of which shall conform to Subchapters 9 and 11 of this Chapter.

(O) A statement setting forth the accounting system to be utilized by the applicant (the FCC-approved Uniform System of Accounts or another accounting system) and a Chart of Accounts.

(P) A listing of the complete name(s), including any trade name(s), corporate or primary headquarters street address(es) and names/addresses of principal officers of any affiliates, individuals or investors holding more than five (5) percent ownership, and/or subsidiaries providing telecommunications and/or other services to the entity making the application proposing to sell the requested telecommunications service or Special Universal Services to the public in the State of Oklahoma, unless otherwise ordered by the Commission.

(Q) An affirmation that the Applicant will maintain a record of complaints in a manner consistent with OAC 165:55-3-23.

(R) A copy of the applicant's proposed letter of authorization to be used by the telecommunications service provider to obtain written authorization from an end-user to switch telecommunications service providers or a copy of the text of the proposed script of the verification, which must be approved by the PUD Director, consistent with OAC 165:55-19-1.

(S) A statement regarding whether the applicant intends to utilize the services of a billing agent to issue bills to end-users.

(T) A description of applicant's parameters for determining creditworthiness if applicant intends to perform credit checks prior to providing service to a potential end-user.

(3) The Public Utility Division Staff may issue data requests for additional information during its initial review of an application.

(4) Agreements in accordance with OAC 165:55-17-7, if any, between telecommunications service providers shall be provided to the Public Utility Division as soon as such agreement(s) become available. Protective relief may be sought pursuant to 51 O.S. § 24A.22.

(e)Requirements applicable to CCN requests exclusively for purposes related to 17 O.S. § 139.109.1(B)(4). An applicant for a CCN for the limited purpose of qualifying as an eligible provider, as that term is defined at 17 O.S. § 139.102(11), in order to be eligible to seek reimbursement from the OUSF for the provision of Special Universal Services as provided at 17 O.S. § 139.109.1(B)(4) shall submit an application consistent with the requirements of this subsection.

(1) All applications for a CCN pursuant to this subsection shall include the information specified at OAC 165:55-3-1(d)(1)(A), 165:55-3-1(d)(1)(B), 165:55-3-1(d)(1)(D)(i), 165:55-3-1(d)(1)(D)(ii), 165:55-3-1(d)(1)(D)(iv), 165:55-3-1(d)(1)(D)(v), 165:55-3-1(d)(1)(D)(vii), 165:55-3-1(d)(1)(D)(ix), 165:55-3-1(d)(1)(D)(x), 165:55-3-1(d)(1)(D)(xi), 165:55-3-1(d)(1)(D)(xii), 165:55-3-1(d)(2)(A), 165:55-3-1(d)(2)(B), 165:55-3-1(d)(2)(C), 165:55-3-1(d)(2)(E), 165:55-3-1(d)(2)(F), 165:55-3-1(d)(2)(G), 165:55-3-1(d)(2)(H), 165:55-3-1(d)(2)(I), 165:55-3-1(d)(2)(J), 165:55-3-1(d)(2)(K), and 165:55-3-1(d)(2)(P).

(2) The application shall also contain the following information:

(A) A full description of any investigations of the applicant, its owners (individuals and/or entities) or investors holding more than five (5) percent ownership, or companies, or officers or senior management in conjunction with participation in any local, state or federal universal service fund or subsidy program.

(B) A full description of any investigations of the applicant, its owners (individuals and/or entities) or investors holding more than five (5) percent ownership, or companies, or officers or senior management officers, owners, senior management, investors or affiliates for potential violations of laws, rules or regulations related to the operation of an entity within a regulated industry.

(C) For each investigation described in (A) and/or (B) provide an indication of the disposition of any ongoing investigations and, if concluded, the investigating agency's findings.

(D) A listing of all affiliates, subsidiaries, or partnerships that participate or collaborate in any manner with the applicant in providing and/or administering any services supported by a local, state or federal universal service fund or subsidy program.

(E) An affirmative statement that the applicant understands and agrees that any request for CCN authority beyond the limited purpose of qualifying for reimbursement from the OUSF for the provision of Special Universal Services under 17 O.S. § 139.109.1(B)(4) would require an application for authority under OAC 165:55-3-1(C).

(F) An informational tariff describing the services to be offered, any limitations on the availability of those services within Oklahoma, and general terms and conditions.

(f)Requirements for expanding authority under an existing CCN. An Applicant wishing to expand its service authority under an existing Certificate of Convenience and Necessity granted pursuant to Chapters 55, 56, 57 and/or 58, must make application to the OCC and provide all information and notice as required in Sections 165:55-3-1(c) and 165:55-3-2. However, information submitted in support of a previous Application for certification, if such Application was approved by the OCC, may be used in support of the current Application by providing a written affirmation, signed before a Notary Public, and by someone with authority to bind the Applicant, stating that the previously submitted information is still true and correct, and circumstances have not changed. If the previously submitted information is no longer true and correct, or if circumstances have changed, Applicant shall submit updated information along with a written affirmation fully explaining all changed circumstances. This section shall not apply to an Applicant wishing to expand its existing service territory granted under an existing CCN. Such an application shall be filed pursuant to OAC 165:55-17-3.

(g)Approval requirement. No Certificate of Convenience and Necessity shall be granted except by order of the Commission, after notice and hearing, if any, as directed by the Commission or unless otherwise provided in this Chapter, or by the laws of the State of Oklahoma.

(h)Surety requirements for an applicant for Certificate of Convenience and Necessity. To ensure the protection of the applicant's end-users, the applicant that intends to collect deposits from end-users, for a Certificate of Convenience and Necessity shall maintain a third-party surety bond, surety bond or irrevocable letter of credit, as may be determined by the Commission during the certification process, as set forth in this subsection.

(1) An applicant that does not have at least one million dollars ($1,000,000) net book value invested in telephone plant and/or telephone facilities located in Oklahoma shall be required to post and maintain a third-party surety bond, surety bond or irrevocable letter of credit in, at a minimum, an amount sufficient for the indemnification of one hundred ten percent (110%) of its projected customer deposits.

(2) The third-party surety bond, surety bond or irrevocable letter of credit shall be maintained as long as the telecommunications service provider is furnishing telecommunications services in the State of Oklahoma pursuant to this Chapter, unless modified or released pursuant to Commission order.

(3) The Commission may modify the requirements of this subsection for good cause shown, after such notice and hearing, if any, as the Commission may require.

(i)Transferability of certificates. Any certificate granted under this section shall not be transferable without prior approval of the Commission and shall continue in effect until further order of the Commission.

(j)Interoperability test. Prior to providing service in Oklahoma, the Applicant shall jointly test interoperability with the 911/E911 PSAPs in their service area and provide verification of interoperability to the PUD and the PSAP. If testing is not applicable to the services for which CCN authority has been requested, a statement to that effect will be included in the CCN application.

Okla. Admin. Code § 165:55-3-1

Amended at 10 Ok Reg 2651, eff 6-25-93 ; Amended at 13 Ok Reg 2437, eff 7-1-96 ; Amended at 15 Ok Reg 3054, eff 7-15-98 ; Amended at 16 Ok Reg 2261, eff 7-1-99 ; Amended at 18 Ok Reg 2415, eff 7-1-01 ; Amended at 19 Ok Reg 1985, eff 7-1-02 ; Amended at 20 Ok Reg 2301, eff 7-15-03 ; Amended at 21 Ok Reg 2101, eff 7-1-04 ; Amended at 22 Ok Reg 712, eff 7-1-05 ; Amended at 29 Ok Reg 1549, eff 7-12-12 ; Amended at 30 Ok Reg 1565, eff 7-11-13

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015

Amended by Oklahome Register, Volume 33, Issue 23, August 15, 2016, eff. 8/25/2016

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

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

AGENCY NOTE: ¹ Please be advised that the official website for the Oklahoma Corporation Commission has changed. As of the closing date for the 2011 Edition of the OAC, the correct website address is: www.occeweb.com.