Florida Senate - 2010                                    SB 2646
       
       
       
       By Senator Ring
       
       
       
       
       32-01644-10                                           20102646__
    1                        A bill to be entitled                      
    2         An act relating to telecommunications companies;
    3         repealing ss. 364.03, 364.035, 364.037, 364.05,
    4         364.055, 364.14, 364.17, and 364.18, F.S., relating to
    5         rates, tolls, contracts, charges, rules, regulations,
    6         performance of service, and maintenance of
    7         telecommunications facilities; fixing rates by the
    8         Public Service Commission; consideration of directory
    9         advertising revenues when establishing rates; changing
   10         rates, tolls, rentals, contracts, or charges;
   11         procedures for interim rates; commission to compel by
   12         order or rule the adjustment of rates, charges, tolls,
   13         rules, or regulations or changes to practices or
   14         service or the installation of equipment or
   15         facilities; forms prescribed by the commission; and
   16         inspection by the commission of accounts and records;
   17         amending s. 364.051, F.S.; deleting a schedule for
   18         implementation of price regulation; amending ss.
   19         364.025, 364.052, 364.063, 364.337, 364.385, and
   20         364.507, F.S.; conforming provisions to changes made
   21         by the act; providing an effective date.
   22  
   23  Be It Enacted by the Legislature of the State of Florida:
   24  
   25         Section 1. Sections 364.03, 364.035, 364.037, 364.05,
   26  364.055, 364.14, 364.17, and 364.18, Florida Statutes, are
   27  repealed.
   28         Section 2. Subsection (2) of section 364.025, Florida
   29  Statutes, is amended to read:
   30         364.025 Universal service.—
   31         (2) The Legislature finds that each telecommunications
   32  company should contribute its fair share to the support of the
   33  universal service objectives and carrier-of-last-resort
   34  obligations. For a transitional period not to exceed January 1,
   35  2009, the interim mechanism for maintaining universal service
   36  objectives and funding carrier-of-last-resort obligations shall
   37  be established by the commission, pending the implementation of
   38  a permanent mechanism. The interim mechanism shall be applied in
   39  a manner that ensures that each competitive local exchange
   40  telecommunications company contributes its fair share to the
   41  support of universal service and carrier-of-last-resort
   42  obligations. The interim mechanism applied to each competitive
   43  local exchange telecommunications company shall reflect a fair
   44  share of the local exchange telecommunications company’s
   45  recovery of investments made in fulfilling its carrier-of-last
   46  resort obligations, and the maintenance of universal service
   47  objectives. The commission shall ensure that the interim
   48  mechanism does not impede the development of residential
   49  consumer choice or create an unreasonable barrier to
   50  competition. In reaching its determination, the commission shall
   51  not inquire into or consider any factor that is inconsistent
   52  with s. 364.051(1)(c). The costs and expenses of any government
   53  program or project required in part II of this chapter shall not
   54  be recovered under this section.
   55         Section 3. Subsection (1) of section 364.051, Florida
   56  Statutes, is amended to read:
   57         364.051 Price regulation.—
   58         (1) APPLICATION TO LOCAL EXCHANGE TELECOMMUNICATIONS
   59  COMPANIES SCHEDULE.—Notwithstanding any other provisions of this
   60  chapter, all the following local exchange telecommunications
   61  companies are shall become subject to the price regulation
   62  described in this section. on the following dates:
   63         (a) For a local exchange telecommunications company with
   64  100,000 or more access lines in service as of July 1, 1995, such
   65  company may file with the commission a notice of election to be
   66  under price regulation effective January 1, 1996, or when a
   67  competitive local exchange telecommunications company is
   68  certificated to provide local exchange telecommunications
   69  services in its service territory, whichever is later.
   70         (b) Effective on the date of filing its election with the
   71  commission, but no sooner than January 1, 1996, any local
   72  exchange telecommunications company with fewer than 100,000
   73  access lines in service on July 1, 1995, that elects pursuant to
   74  s. 364.052 to become subject to this section.
   75         (c) Each company subject to this section is exempt from
   76  rate base, rate of return regulation, and the requirements of s.
   77  ss. 364.03, 364.035, 364.037, 364.05, 364.055, 364.14, 364.17,
   78  364.18, and 364.19.
   79         Section 4. Subsection (2) of section 364.052, Florida
   80  Statutes, is amended to read:
   81         364.052 Regulatory methods for small local exchange
   82  telecommunications companies.—
   83         (2) A small local exchange telecommunications company shall
   84  remain under rate base, rate of return regulation until the
   85  company elects to become subject to s. 364.051, or January 1,
   86  2001, whichever occurs first. A company subject to this section,
   87  electing to be regulated pursuant to s. 364.051, will have any
   88  overearnings attributable to a period prior to the date on which
   89  the company makes the election subject to refund or other
   90  disposition by the commission. Small local exchange
   91  telecommunications companies not electing the price regulation
   92  provided for under s. 364.051 shall also be regulated pursuant
   93  to ss. 364.03, 364.035(1) and (2), 364.05, and 364.055 and other
   94  provisions necessary for rate base, rate of return regulation.
   95  If a small local exchange telecommunications company has not
   96  elected to be regulated under s. 364.051, by January 1, 2001,
   97  the company shall remain under rate base, rate of return
   98  regulation until such time as a certificated competitive local
   99  exchange company provides basic local telecommunications service
  100  in the company’s territory. At such time, the small local
  101  exchange telecommunications company shall be subject to s.
  102  364.051.
  103         (a) The commission shall establish, by rule, ranges of
  104  basic factors for lives and salvage values to be used in
  105  developing depreciation rates for companies subject to this
  106  section. Companies shall have the option of using basic factors
  107  within the established ranges or of filing depreciation studies.
  108         (b) The commission shall adopt, by rule, streamlined
  109  procedures for regulating companies subject to this section.
  110  These procedures shall minimize the burdens of regulation with
  111  regard to audits, investigations, service standards, cost
  112  studies, reports, and other matters, and the commission shall
  113  establish, by rule, only those procedures that are cost
  114  justified and are in the public interest so that universal
  115  service may be promoted. Upon petition filed in this rulemaking
  116  proceeding, the commission shall review and may approve any
  117  regulations unique to the specific circumstances of a company
  118  subject to this section.
  119         Section 5. Section 364.063, Florida Statutes, is amended to
  120  read:
  121         364.063 Rate adjustment orders.—Any order issued by the
  122  Florida Public Service Commission adjusting general increases or
  123  reductions of the rates of a telecommunications company shall be
  124  reduced to writing, including any dissenting or concurring
  125  opinions, within 20 days after the official vote of the
  126  commission. Within such 20-day period, the commission shall also
  127  mail a copy of the order to the clerk of the circuit court of
  128  each county in which customers are served who are affected by
  129  the rate adjustment, which copy shall be kept on file and made
  130  available to the public. The commission shall notify all parties
  131  of record in the proceeding of the date of such mailing. Such an
  132  order shall not be considered rendered for purposes of appeal,
  133  rehearing, or judicial review until the order is signed and
  134  dated by the commission’s designee. This provision shall not
  135  delay the effective date of the order. Such an order shall be
  136  considered rendered on the date of the official vote for the
  137  purposes of s. 364.05(5).
  138         Section 6. Subsections (1), (2), and (4) of section
  139  364.337, Florida Statutes, are amended to read:
  140         364.337 Competitive local exchange telecommunications
  141  companies; intrastate interexchange telecommunications services;
  142  certification.—
  143         (1) Upon this act becoming a law, a party may file an
  144  application for a certificate as a competitive local exchange
  145  telecommunications company before January 1, 1996, and the
  146  commission shall conduct its review of the application and take
  147  all actions necessary to process the application. However, an
  148  application shall become effective no sooner than January 1,
  149  1996. The commission shall grant a certificate of authority to
  150  provide competitive local exchange service upon a showing that
  151  the applicant has sufficient technical, financial, and
  152  managerial capability to provide such service in the geographic
  153  area proposed to be served. A competitive local exchange
  154  telecommunications company may not offer basic local
  155  telecommunications services within the territory served by a
  156  company subject to s. 364.052 prior to January 1, 2001, unless
  157  the small local exchange telecommunications company is elects to
  158  be regulated under s. 364.051 or provides cable television
  159  programming services directly or as video dial tone applications
  160  authorized under 47 U.S.C. s. 214, except as provided for in
  161  compliance with part II. It is the intent of the Legislature
  162  that the commission act expeditiously to grant certificates of
  163  authority under this section and that the grant of certificates
  164  not be affected by the application of any criteria other than
  165  that specifically enumerated in this subsection.
  166         (2) Rules adopted by the commission governing the provision
  167  of competitive local exchange telecommunications service shall
  168  be consistent with s. 364.01. The basic local telecommunications
  169  service provided by a competitive local exchange
  170  telecommunications company must include access to operator
  171  services, “911” services, and relay services for the hearing
  172  impaired. A competitive local exchange telecommunications
  173  company’s “911” service shall be provided at a level equivalent
  174  to that provided by the local exchange telecommunications
  175  company serving the same area. There shall be a flat-rate
  176  pricing option for basic local telecommunications services, and
  177  mandatory measured service for basic local telecommunications
  178  services shall not be imposed. A certificated competitive local
  179  exchange telecommunications company may petition the commission
  180  for a waiver of some or all of the requirements of this chapter,
  181  except ss. 364.16, 364.336, and subsections (1) and (5). The
  182  commission may grant such petition if determined to be in the
  183  public interest. Competitive local exchange telecommunications
  184  companies are not subject to the requirements of ss. 364.03,
  185  364.035, 364.037, 364.05, 364.055, 364.14, 364.17, 364.18,
  186  364.33, and 364.3381.
  187         (4) Rules adopted by the commission governing the provision
  188  of intrastate interexchange telecommunications service must be
  189  consistent with s. 364.01. A certificated intrastate
  190  interexchange telecommunications company may petition the
  191  commission for a waiver for some or all of the requirements of
  192  this chapter, except s. 364.16, s. 364.335(3), or subsection
  193  (5). The commission may grant such petition if determined to be
  194  in the public interest. Intrastate interexchange
  195  telecommunications companies are not subject to the requirements
  196  of s. ss. 364.03, 364.035, 364.037, 364.05, 364.055, 364.14,
  197  364.17, 364.18, and 364.3381.
  198         Section 7. Subsection (2) of section 364.385, Florida
  199  Statutes, is amended to read:
  200         364.385 Saving clauses.—
  201         (2) All applications for extended area service, routes, or
  202  extended calling service pending before the commission on March
  203  1, 1995, shall be governed by the law as it existed prior to
  204  July 1, 1995. Upon the approval of the application, the extended
  205  area service, routes, or extended calling service shall be
  206  considered basic services and shall be regulated as provided in
  207  s. 364.051 for a company that has elected price regulation.
  208  Proceedings including judicial review pending on July 1, 1995,
  209  shall be governed by the law as it existed prior to the date on
  210  which this section becomes a law. No new proceedings governed by
  211  the law as it existed prior to July 1, 1995, shall be initiated
  212  after July 1, 1995. Any administrative adjudicatory proceeding
  213  which has not progressed to the stage of a hearing by July 1,
  214  1995, may, with the consent of all parties and the commission,
  215  be conducted in accordance with the law as it existed prior to
  216  January 1, 1996.
  217         Section 8. Subsection (2) of section 364.507, Florida
  218  Statutes, is amended to read:
  219         364.507 Legislative intent.—
  220         (2) It is the intent of the Legislature that all local
  221  exchange telecommunications companies, including those with less
  222  than 100,000 access lines in service which do not elect to be
  223  regulated under price regulation pursuant to s. 364.051, should
  224  be required to provide advanced telecommunications services to
  225  eligible facilities in the absence of a competitive bid to
  226  provide such services pursuant to s. 364.510(3). This obligation
  227  arises from the privileges granted such local exchange
  228  telecommunications companies under part I of this chapter.
  229         Section 9. This act shall take effect July 1, 2010.