CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

                                        Bill No. HB 2123, 2nd Eng.

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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10                                                                

11  Representative(s) Rojas offered the following:

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13         Amendment to Senate Amendment (935754) (with title

14  amendment) 

15         On page 1, line 17, through page 8, line 15

16  remove from the amendment:  all of said lines

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18  and insert in lieu thereof:

19         Section 1.  Section 364.025, Florida Statutes, 1998

20  Supplement, is amended to read:

21         364.025  Universal service.--

22         (1)  For the purposes of this section, the term

23  "universal service" means an evolving level of access to

24  telecommunications services that, taking into account advances

25  in technologies, services, and market demand for essential

26  services, the commission determines should be provided at

27  just, reasonable, and affordable rates to customers, including

28  those in rural, economically disadvantaged, and high-cost

29  areas.  It is the intent of the Legislature that universal

30  service objectives be maintained after the local exchange

31  market is opened to competitively provided services.  It is

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2123, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  also the intent of the Legislature that during this transition

 2  period the ubiquitous nature of the local exchange

 3  telecommunications companies be used to satisfy these

 4  objectives. For a period of 5 4 years after January 1, 1996,

 5  each local exchange telecommunications company shall be

 6  required to furnish basic local exchange telecommunications

 7  service within a reasonable time period to any person

 8  requesting such service within the company's service

 9  territory.

10         (2)  The Legislature finds that each telecommunications

11  company should contribute its fair share to the support of the

12  universal service objectives and carrier-of-last-resort

13  obligations.  For a transitional period not to exceed January

14  1, 2001 2000, an interim mechanism for maintaining universal

15  service objectives and funding carrier-of-last-resort

16  obligations shall be established by the commission, pending

17  the implementation of a permanent mechanism.  The interim

18  mechanism shall be applied in a manner that ensures that each

19  alternative local exchange telecommunications company

20  contributes its fair share to the support of universal service

21  and carrier-of-last-resort obligations.  The interim mechanism

22  applied to each alternative local exchange telecommunications

23  company shall reflect a fair share of the local exchange

24  telecommunications company's recovery of investments made in

25  fulfilling its carrier-of-last-resort obligations, and the

26  maintenance of universal service objectives. The commission

27  shall ensure that the interim mechanism does not impede the

28  development of residential consumer choice or create an

29  unreasonable barrier to competition.  In reaching its

30  determination, the commission shall not inquire into or

31  consider any factor that is inconsistent with s.

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2123, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  364.051(1)(c).  The costs and expenses of any government

 2  program or project required in part II of this chapter shall

 3  not be recovered under this section.

 4         (3)  In the event any party, prior to January 1, 2001

 5  2000, believes that circumstances have changed substantially

 6  to warrant a change in the interim mechanism, that party may

 7  petition the commission for a change, but the commission shall

 8  grant such petition only after an opportunity for a hearing

 9  and a compelling showing of changed circumstances, including

10  that the provider's customer population includes as many

11  residential as business customers.  The commission shall act

12  on any such petition within 120 days.

13         (4)(a)  Prior to January 1, 2001 the expiration of this

14  4-year period, the Legislature shall establish a permanent

15  universal service mechanism upon the effective date of which

16  any interim recovery mechanism for universal service

17  objectives or carrier-of-last-resort obligations imposed on

18  alternative local exchange telecommunications companies shall

19  terminate.

20         (b)  To assist the Legislature in establishing a

21  permanent universal service mechanism, the commission, by

22  February 15, 1999, shall determine and report to the President

23  of the Senate and the Speaker of the House of Representatives

24  the total forward-looking cost, based upon the most recent

25  commercially available technology and equipment and generally

26  accepted design and placement principles, of providing basic

27  local telecommunications service on a basis no greater than a

28  wire center basis using a cost proxy model to be selected by

29  the commission after notice and opportunity for hearing.

30         (c)  In determining the cost of providing basic local

31  telecommunications service for small local exchange

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2123, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  telecommunications companies, which serve less than 100,000

 2  access lines, the commission shall not be required to use the

 3  cost proxy model selected pursuant to paragraph (b) until a

 4  mechanism is implemented by the Federal Government for small

 5  companies, but no sooner than January 1, 2001. The commission

 6  shall calculate a small local exchange telecommunications

 7  company's cost of providing basic local telecommunications

 8  services based on one of the following options:

 9         1.  A different proxy model; or

10         2.  A fully distributed allocation of embedded costs,

11  identifying high-cost areas within the local exchange area the

12  company serves and including all embedded investments and

13  expenses incurred by the company in the provision of universal

14  service. Such calculations may be made using fully distributed

15  costs consistent with 47 C.F.R. ss. 32, 36, and 64. The

16  geographic basis for the calculations shall be no smaller than

17  a census block group.

18         (d)  The commission, by February 15, 1999, shall

19  determine and report to the President of the Senate and the

20  Speaker of the House of Representatives the amount of support

21  necessary to provide residential basic local

22  telecommunications service to low-income customers. For

23  purposes of this section, low-income customers are customers

24  who qualify for Lifeline service as defined in s. 364.10(2).

25         (5)  After January 1, 2001 2000, an alternative local

26  exchange telecommunications company may petition the

27  commission to become the universal service provider and

28  carrier of last resort in areas requested to be served by that

29  alternative local exchange telecommunications company.  Upon

30  petition of an alternative local exchange telecommunications

31  company, the commission shall have 120 days to vote on

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2123, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  granting in whole or in part or denying the petition of the

 2  alternative local exchange company.  The commission may

 3  establish the alternative local exchange telecommunications

 4  company as the universal service provider and carrier of last

 5  resort, provided that the commission first determines that the

 6  alternative local exchange telecommunications company will

 7  provide high-quality, reliable service.  In the order

 8  establishing the alternative local exchange telecommunications

 9  company as the universal service provider and carrier of last

10  resort, the commission shall set the period of time in which

11  such company must meet those objectives and obligations and

12  shall set up any mechanism needed to aid such company in

13  carrying out these duties.

14         Section 2.  Subsection (10) is added to section

15  337.401, Florida Statutes, 1998 Supplement, to read:

16         337.401  Use of right-of-way for utilities subject to

17  regulation; permit; fees.--

18         (10)  This section, except subsections (1), (2), and

19  (6), does not apply to the provision of pay telephone service

20  on public or municipal roads or rights-of-way.

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23  ================ T I T L E   A M E N D M E N T ===============

24  And the title is amended as follows:

25         On page 20,  lines 12-20 of the amendment

26  remove:  all said lines

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28  and insert in lieu thereof:

29         s. 364.025, F.S.; extending the interim

30         mechanism for maintaining universal service

31         objectives and carrier-of-last-resort

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2123, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1         obligations until a specified date; amending s.

 2         337.401; F.S.; specifying that specified

 3         provisions do not apply to the provision of pay

 4         telephone service on public or municipal roads

 5         or rights-of-way;

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