Senate Bill 2296e1

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







    CS for SB 2296                                 First Engrossed



  1                      A bill to be entitled

  2         An act relating to telecommunications services;

  3         amending s. 364.0252, F.S.; directing the

  4         Florida Public Service Commission to inform

  5         consumers about specific matters in the

  6         telecommunications services market; amending s.

  7         364.24 F.S.; providing for telephonic customer

  8         account information; amending s. 364.508, F.S.;

  9         deleting certain definitions; amending s.

10         364.509, F.S.; specifying duties of the

11         Department of Education relating to distance

12         learning; amending s. 364.510, F.S.; creating

13         the Florida Distance Learning Network Advisory

14         Council in the Department of Education;

15         providing for membership; specifying

16         representation; providing for organization,

17         procedures, and compensation of the council;

18         providing responsibilities of the council;

19         requiring the department to provide

20         administrative and support services for the

21         council; amending s. 364.514, F.S., to conform;

22         repealing s. 364.506, F.S., relating to the

23         short title to part II, ch. 364, F.S.;

24         repealing s. 364.507, F.S., relating to

25         legislative intent; repealing 364.511, F.S.,

26         relating to the powers of the board of

27         directors of the Florida Distance Learning

28         Network; repealing s. 364.512, F.S., relating

29         to the executive director of the network;

30         repealing s. 364.513, F.S., relating to the

31         annual report and audits of the network;


                                  1

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






    CS for SB 2296                                 First Engrossed



  1         providing an appropriation; amending s.

  2         364.025, F.S.; extending the interim mechanism

  3         for maintaining universal service objectives

  4         and funding carrier-of-last-resort obligations

  5         until a specified date; amending s. 364.052,

  6         F.S.; extending carrier-of-last-resort

  7         obligations for small local exchange

  8         telecommunications companies until a specified

  9         date; amending s. 364.051, F.S.; extending

10         price caps on certain telecommunications

11         services; establishing a task force in the

12         Department of Management Services; providing

13         for representation; providing responsibilities;

14         providing for meetings of the task force;

15         providing for support staff for the task force;

16         requiring reports; providing for the

17         dissolution of the task force; providing an

18         appropriation; amending s. 337.401, F.S.;

19         specifying that specified provisions do not

20         apply to the provision of pay telephone service

21         on public or municipal roads or rights-of-way;

22         providing an effective date.

23

24  Be It Enacted by the Legislature of the State of Florida:

25

26         Section 1.  Section 364.0252, Florida Statutes, 1998

27  Supplement, is amended to read:

28         364.0252  Expansion of consumer information programs;

29  customer assistance; rulemaking authority.--By January 1,

30  1999, The Florida Public Service Commission shall expand its

31  current consumer information program to inform consumers of


                                  2

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






    CS for SB 2296                                 First Engrossed



  1  their rights as customers of competitive telecommunications

  2  services and shall assist customers in resolving any billing

  3  and service disputes that customers are unable to resolve

  4  directly with the company. The commission may, pursuant to

  5  this program, require all telecommunications companies

  6  providing local or long distance telecommunications services

  7  to develop and provide information to customers. The

  8  commission may specify by rule the types of information to be

  9  developed and the manner by which the information will be

10  provided to the customers. On July 1, 1999, the Florida Public

11  Service Commission shall undertake a comprehensive and ongoing

12  effort to inform consumers regarding how to protect themselves

13  in a competitive telecommunications market; of specific

14  concern are informing consumers concerning the availability of

15  the Lifeline and Link-Up Programs for low-income households

16  and alerting consumers to how they can avoid having their

17  service changed or unauthorized charges added to their

18  telephone bills.

19         Section 2.  Subsection (2) of section 364.24, Florida

20  Statutes, is amended to read:

21         364.24  Penalty for making telephone message or

22  customer account information known.--

23         (2)  Any officer or person in the employ of any

24  telecommunications company shall not intentionally disclose

25  customer account records except as authorized by the customer

26  or as necessary for billing purposes, or required by subpoena,

27  court order, other process of court, or as otherwise allowed

28  by law.  Any person who violates any provision of this section

29  commits a misdemeanor of the second degree, punishable as

30  provided in s. 775.082 or s. 775.083. Nothing herein precludes

31  disclosure of customers' names, addresses, or telephone


                                  3

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






    CS for SB 2296                                 First Engrossed



  1  numbers to the extent they are otherwise publicly available.

  2  Nothing in this subsection precludes a telecommunications

  3  company from making available to its customers a customer's

  4  own customer account record through telephonic means.

  5         Section 3.  Section 364.508, Florida Statutes, is

  6  transferred, renumbered as section 241.001, and amended to

  7  read:

  8         241.001 364.508  Definitions.--As used in this part:

  9         (1)  "Commission" means the Public Service Commission.

10         (2)  "Network" means the Florida Distance Learning

11  Network.

12         (2)(3)  "Telecommunications company" means any entity

13  certified under this chapter to provide telecommunications

14  service.

15         (3)(4)  "Cable company" means a cable television

16  company providing cable service as defined in 47 U.S.C. s.

17  522.

18         (4)(5)  "Advanced telecommunications services" are

19  defined as network-based or wireless services that provide

20  additional communications capabilities enabling the use of

21  applications such as distance learning, video conferencing,

22  data communications, and access to Internet.

23         (6)  "Plan" means the Education Facilities

24  Infrastructure Improvement Plan, a document that includes a

25  needs assessment report and identifies telecommunications

26  companies', cable companies', and other providers' present and

27  projected deployment of technologies necessary for delivery of

28  advanced telecommunications services to eligible facilities

29  who request such services.

30         (5)(7)  "Eligible facilities" means all approved

31  campuses and instructional centers of all public universities,


                                  4

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






    CS for SB 2296                                 First Engrossed



  1  public community colleges, area technical centers, public

  2  elementary schools, middle schools, and high schools,

  3  including school administrative offices, public libraries,

  4  teaching hospitals, the research institute described in s.

  5  240.512, and rural public hospitals as defined in s. 395.602.

  6  If no rural public hospital exists in a community, the public

  7  health clinic which is responsible for individuals before they

  8  can be transferred to a regional hospital shall be considered

  9  eligible.

10         Section 4.  Section 364.509, Florida Statutes, is

11  transferred, renumbered as section 241.002, and amended to

12  read:

13         (Substantial rewording of section.  See

14         s. 364.509, F.S., for present text.)

15         241.002  Duties of the Department of Education.--The

16  duties of the Department of Education concerning distance

17  learning include, but are not limited to:

18         (1)  Facilitate the implementation of a statewide

19  coordinated system and resource system for cost-efficient

20  advanced telecommunications services and distance education

21  which will increase overall student access to education.

22         (2)  Coordinate the use of existing resources,

23  including, but not limited to, the state's satellite

24  transponders on the education satellites, the SUNCOM Network,

25  the Florida Information Resource Network (FIRN), the

26  Department of Management Services, the Department of

27  Corrections, and the Department of Children and Family

28  Services' satellite communication facilities to support a

29  statewide advanced telecommunications services and distance

30  learning network.

31


                                  5

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






    CS for SB 2296                                 First Engrossed



  1         (3)  Assist in the coordination of the utilization of

  2  the production and uplink capabilities available through

  3  Florida's public television stations, eligible facilities,

  4  independent colleges and universities, private firms, and

  5  others as may be needed.

  6         (4)  Seek the assistance and cooperation of Florida's

  7  cable television providers in the implementation of the

  8  statewide advanced telecommunications services and distance

  9  learning network.

10         (5)  Seek the assistance and cooperation of Florida's

11  telecommunications carriers to provide affordable student

12  access to advanced telecommunications services and to distance

13  learning.

14         (6)  Coordinate partnerships for development,

15  acquisition, use, and distribution of distance learning.

16         (7)  Secure and administer funding for programs and

17  activities for distance learning from federal, state, local,

18  and private sources and from fees derived from services and

19  materials.

20         (8)  Manage the state's satellite transponder resources

21  and enter into lease agreements to maximize the use of

22  available transponder time.  All net revenue realized through

23  the leasing of available transponder time, after deducting the

24  costs of performing the management function, shall be recycled

25  to support the public education distance learning in this

26  state, based upon an allocation formula of one-third to the

27  Department of Education, one-third to the State Board of

28  Community Colleges, and one-third to the State University

29  System.

30         (9)  Hire appropriate staff which may include a

31  position that shall be exempt from part II of chapter 110 and


                                  6

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






    CS for SB 2296                                 First Engrossed



  1  is included in the Senior Management Service in accordance

  2  with s. 110.205.

  3         (10)  Nothing in ss. 241.001-241.004 shall be construed

  4  to abrogate, supersede, alter, or amend the powers and duties

  5  of any state agency, district school board, community college

  6  board of trustees, the State Board of Community Colleges, or

  7  the Board of Regents.

  8         Section 5.  Section 364.510, Florida Statutes, is

  9  transferred, renumbered as section 241.003, and amended to

10  read:

11         (Substantial rewording of section.  See

12         s. 364.510, F.S., for present text.)

13         241.003  The Florida Distance Learning Network Advisory

14  Council; creation; membership; organization; meetings.--

15         (1)  The Florida Distance Learning Network Advisory

16  Council is created in the Department of Education to advise

17  and assist the department in carrying out its duties relating

18  to distance learning.

19         (a)  Composition.--The advisory council, to be

20  appointed by and serve at the pleasure of the Commissioner of

21  Education, shall not exceed 13 members, selected from the

22  various entities who have interests in distance learning, and

23  who are, when possible, leading members of statewide or

24  regional organizations representing institutional consumers

25  and providers so as to establish a broadly based and

26  representative distance learning advisory council.

27         (b)  Representation.--The organizations represented on

28  the advisory council may include, but are not limited to,

29  public and private elementary and secondary schools; public

30  and private postsecondary institutions, including vocational

31  and technical centers; state agencies; libraries; the health


                                  7

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






    CS for SB 2296                                 First Engrossed



  1  care community, including urban, rural, and teaching

  2  hospitals; the cable telecommunications industry; the local

  3  exchange telecommunications industry; and the interexchange

  4  industry.  Two members shall be the Chancellor of the State

  5  University System or the chancellor's designee and the

  6  Executive Director of the Florida Community College System or

  7  the executive director's designee. One member may be a lay

  8  citizen.

  9         (c)  Organization, procedure, and compensation.--

10         1.  The advisory council shall meet at least annually.

11         2.  The advisory council shall elect a chair, a

12  vice-chair, and a secretary from its membership for 1-year

13  terms.  Officers may be re-elected.

14         3.  The advisory council shall meet at the call of its

15  chair, at the request of the majority of its membership, the

16  commissioner, or at such times as its membership may

17  prescribe.

18         (2)  The advisory council may study and recommend to

19  the department on:

20         (a)  A marketing program statewide, nationally, and

21  internationally, as deemed appropriate.

22         (b)  The recipients of the Educational Technology Grant

23  Program provided in s. 241.004.

24         (c)  Suggested legislation concerning distance

25  learning.

26         (d)  Any other issue regarding distance learning that

27  the council deems appropriate.

28         (3)  The department shall provide administrative and

29  support services to the advisory council.

30         Section 6.  Section 364.514, Florida Statutes, is

31  transferred, renumbered as 241.004, and amended to read:


                                  8

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






    CS for SB 2296                                 First Engrossed



  1         241.004 364.514  Educational Technology Grant

  2  Program.--

  3         (1)  The Educational Technology Grant Program is

  4  created to support the development of and provide incentives

  5  for technologically delivered educational courses and

  6  programs.

  7         (2)(a)  The Department of Education Florida Distance

  8  Learning Network shall annually award grants to school

  9  districts, area technical centers, community colleges, state

10  universities, and independent institutions eligible to

11  participate in state student assistance programs established

12  in part IV of chapter 240. The department board of directors

13  of the corporation shall give priority to cooperative

14  proposals submitted by two or more institutions or delivery

15  systems.  The proposals shall include:

16         1.  Information which describes the educational

17  significance of the program or service in addressing state

18  educational priorities.

19         2.  The target population for the program.

20         3.  The program content to be transmitted.

21         4.  The support services to be provided.

22         5.  Provisions to use at least 20 percent of any funds

23  awarded for training both faculty and student learners in the

24  use and application of the products developed.

25         (b)  Programs and courses developed through the grant

26  program shall be marketed statewide and nationwide with a

27  portion of any profits from the sale or use of such programs

28  retained by the developing institutions or systems and a

29  portion reinvested in the grant program for further program

30  development. The distribution of any revenues received shall

31


                                  9

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






    CS for SB 2296                                 First Engrossed



  1  be determined by formal agreement between the department board

  2  of directors and the developing system or institution.

  3         (c)  The department board of directors shall identify

  4  state educational priorities and issue a request for proposals

  5  by June 1 in every year in which funds are available for

  6  grants. The department board shall ensure the quality of the

  7  programs and courses produced through the grants and produce

  8  an annual status report by March 1 describing the projects

  9  funded and accounting for any proceeds.

10         Section 7.  Sections 364.506, 364.507, 364.511,

11  364.512, and 364.513, Florida Statutes, are repealed.

12         Section 8.  There is appropriated from the Florida

13  Public Service Regulatory Trust Fund to the Public Service

14  Commission the sum of $1 million, and two additional positions

15  are authorized, for the purpose of carrying out the provisions

16  of Section 1 of this act for Fiscal Year 1999-2000.

17         Section 9.  Section 364.025, Florida Statutes, 1998

18  Supplement, is amended to read:

19         364.025  Universal service.--

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

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

22  telecommunications services that, taking into account advances

23  in technologies, services, and market demand for essential

24  services, the commission determines should be provided at

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

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

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

28  service objectives be maintained after the local exchange

29  market is opened to competitively provided services.  It is

30  also the intent of the Legislature that during this transition

31  period the ubiquitous nature of the local exchange


                                  10

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






    CS for SB 2296                                 First Engrossed



  1  telecommunications companies be used to satisfy these

  2  objectives. For a period of 6 4 years after January 1, 1996,

  3  each local exchange telecommunications company shall be

  4  required to furnish basic local exchange telecommunications

  5  service within a reasonable time period to any person

  6  requesting such service within the company's service

  7  territory.

  8         (2)  The Legislature finds that each telecommunications

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

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

11  obligations.  For a transitional period not to exceed January

12  1, 2002 2000, an interim mechanism for maintaining universal

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

14  obligations shall be established by the commission, pending

15  the implementation of a permanent mechanism.  The interim

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

17  alternative local exchange telecommunications company

18  contributes its fair share to the support of universal service

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

20  applied to each alternative local exchange telecommunications

21  company shall reflect a fair share of the local exchange

22  telecommunications company's recovery of investments made in

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

24  maintenance of universal service objectives. The commission

25  shall ensure that the interim mechanism does not impede the

26  development of residential consumer choice or create an

27  unreasonable barrier to competition.  In reaching its

28  determination, the commission shall not inquire into or

29  consider any factor that is inconsistent with s.

30  364.051(1)(c).  The costs and expenses of any government

31


                                  11

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






    CS for SB 2296                                 First Engrossed



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

  2  not be recovered under this section.

  3         (3)  In the event any party, prior to January 1, 2002

  4  2000, believes that circumstances have changed substantially

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

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

  7  grant such petition only after an opportunity for a hearing

  8  and a compelling showing of changed circumstances, including

  9  that the provider's customer population includes as many

10  residential as business customers.  The commission shall act

11  on any such petition within 120 days.

12         (4)(a)  Prior to January 1, 2002 the expiration of this

13  4-year period, the Legislature shall establish a permanent

14  universal service mechanism upon the effective date of which

15  any interim recovery mechanism for universal service

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

17  alternative local exchange telecommunications companies shall

18  terminate.

19         (b)  To assist the Legislature in establishing a

20  permanent universal service mechanism, the commission, by

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

22  of the Senate and the Speaker of the House of Representatives

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

24  commercially available technology and equipment and generally

25  accepted design and placement principles, of providing basic

26  local telecommunications service on a basis no greater than a

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

28  the commission after notice and opportunity for hearing.

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

30  telecommunications service for small local exchange

31  telecommunications companies, which serve less than 100,000


                                  12

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






    CS for SB 2296                                 First Engrossed



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

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

  3  mechanism is implemented by the Federal Government for small

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

  5  shall calculate a small local exchange telecommunications

  6  company's cost of providing basic local telecommunications

  7  services based on one of the following options:

  8         1.  A different proxy model; or

  9         2.  A fully distributed allocation of embedded costs,

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

11  company serves and including all embedded investments and

12  expenses incurred by the company in the provision of universal

13  service. Such calculations may be made using fully distributed

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

15  geographic basis for the calculations shall be no smaller than

16  a census block group.

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

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

19  Speaker of the House of Representatives the amount of support

20  necessary to provide residential basic local

21  telecommunications service to low-income customers. For

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

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

24         (5)  After January 1, 2002 2000, an alternative local

25  exchange telecommunications company may petition the

26  commission to become the universal service provider and

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

28  alternative local exchange telecommunications company.  Upon

29  petition of an alternative local exchange telecommunications

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

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


                                  13

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






    CS for SB 2296                                 First Engrossed



  1  alternative local exchange company.  The commission may

  2  establish the alternative local exchange telecommunications

  3  company as the universal service provider and carrier of last

  4  resort, provided that the commission first determines that the

  5  alternative local exchange telecommunications company will

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

  7  establishing the alternative local exchange telecommunications

  8  company as the universal service provider and carrier of last

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

10  such company must meet those objectives and obligations and

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

12  carrying out these duties.

13         Section 10.  Subsection (5) of section 364.052, Florida

14  Statutes, is amended to read:

15         364.052  Regulatory methods for small local exchange

16  telecommunications companies.--

17         (5)  Any company subject to this section shall continue

18  to function as the universal service provider and carrier of

19  last resort in the territory in which such company was

20  certificated to provide service on July 1, 1995; provided,

21  however, that after January 1, 2002 2001, such company shall

22  only be required to act as the universal service provider and

23  carrier of last resort if the commission finds that it is

24  economically feasible for such company to remain the universal

25  service provider and carrier of last resort. If the commission

26  finds that it is not economically feasible for a small local

27  exchange telecommunications company to remain the carrier of

28  last resort, the commission shall establish a funding

29  mechanism to permit such company to fulfill its obligations as

30  the carrier of last resort.

31


                                  14

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






    CS for SB 2296                                 First Engrossed



  1         Section 11.  Subsections (2), (4), and (6) of section

  2  364.051, Florida Statutes, 1998 Supplement, are amended to

  3  read:

  4         364.051  Price regulation.--

  5         (2)  BASIC LOCAL TELECOMMUNICATIONS SERVICE.--Price

  6  regulation of basic local telecommunications service shall

  7  consist of the following:

  8         (a)  Effective January 1, 1996, the rates for basic

  9  local telecommunications service of each company subject to

10  this section shall be capped at the rates in effect on July 1,

11  1995, and such rates shall not be increased prior to the

12  effective date of a permanent universal service funding

13  mechanism established pursuant to s. 364.025 January 1, 2000.

14  However, the basic local telecommunications service rates of a

15  local exchange telecommunications company with more than 3

16  million basic local telecommunications service access lines in

17  service on July 1, 1995, shall not be increased prior to

18  January 1, 2001.

19         (b)  Upon the date of filing its election with the

20  commission, the rates for basic local telecommunications

21  service of a company that elects to become subject to this

22  section shall be capped at the rates in effect on that date

23  and shall remain capped as stated in paragraph (a).

24         (c)  There shall be a flat-rate pricing option for

25  basic local telecommunications services, and mandatory

26  measured service for basic local telecommunications services

27  shall not be imposed.

28         (4)  In the event that it is determined that the level

29  of competition justifies the elimination of price caps in an

30  exchange served by a local exchange telecommunications company

31  with less than 3 million basic local telecommunications


                                  15

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






    CS for SB 2296                                 First Engrossed



  1  service access lines in service, or after the effective date

  2  of a permanent universal service funding mechanism established

  3  pursuant to s. 364.025 at the end of 5 years for any local

  4  exchange telecommunications company, the local exchange

  5  telecommunications company may thereafter on 30 days' notice

  6  adjust its basic service prices once in any 12-month period in

  7  an amount not to exceed the change in inflation less 1

  8  percent.  Inflation shall be measured by the changes in the

  9  Gross Domestic Product Fixed 1987 Weights Price Index, or

10  successor fixed weight price index, published in the Survey of

11  Current Business or a publication, by the United States

12  Department of Commerce.  In the event any local exchange

13  telecommunications company, after January 1, 2001, believes

14  that the level of competition justifies the elimination of any

15  form of price regulation the company may petition the

16  Legislature.

17         (6)  NONBASIC SERVICES.--Price regulation of nonbasic

18  services shall consist of the following:

19         (a)  Each company subject to this section shall

20  maintain tariffs with the commission containing the terms,

21  conditions, and rates for each of its nonbasic services, and

22  may set or change, on 15 days' notice, the rate for each of

23  its nonbasic services, except that a price increase for any

24  nonbasic service category shall not exceed 6 percent within a

25  12-month period until there is another provider providing

26  local telecommunications service in an exchange area at which

27  time the price for any nonbasic service category may be

28  increased in an amount not to exceed 20 percent within a

29  12-month period, and the rate shall be presumptively valid.

30  However, for purposes of this subsection, the prices of:

31


                                  16

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






    CS for SB 2296                                 First Engrossed



  1         1.  A voice-grade, flat-rate, multi-line business local

  2  exchange service, including multiple individual lines, centrex

  3  lines, private branch exchange trunks, and any associated

  4  hunting services, that provides dial tone and local usage

  5  necessary to place a call within a local exchange calling

  6  area; and

  7         2.  Telecommunications services provided under contract

  8  service arrangements to the SUNCOM Network, as defined in

  9  chapter 282,

10

11  shall be capped at the rates in effect on July 1, 1995, and

12  such rates shall not be increased prior to the effective date

13  of a permanent universal service funding mechanism established

14  pursuant to s. 364.025 January 1, 2000; provided, however,

15  that a petition to increase such rates may be filed pursuant

16  to subsection (5) utilizing the standards set forth therein.

17  There shall be a flat-rate pricing option for multi-line

18  business local exchange service, and mandatory measured

19  service for multi-line business local exchange service shall

20  not be imposed. Nothing contained in this section shall

21  prevent the local exchange telecommunications company from

22  meeting offerings by any competitive provider of the same, or

23  functionally equivalent, nonbasic services in a specific

24  geographic market or to a specific customer by deaveraging the

25  price of any nonbasic service, packaging nonbasic services

26  together or with basic services, using volume discounts and

27  term discounts, and offering individual contracts. However,

28  the local exchange telecommunications company shall not engage

29  in any anticompetitive act or practice, nor unreasonably

30  discriminate among similarly situated customers.

31


                                  17

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






    CS for SB 2296                                 First Engrossed



  1         (b)  The commission shall have continuing regulatory

  2  oversight of nonbasic services for purposes of ensuring

  3  resolution of service complaints, preventing

  4  cross-subsidization of nonbasic services with revenues from

  5  basic services, and ensuring that all providers are treated

  6  fairly in the telecommunications market.  The cost standard

  7  for determining cross-subsidization is whether the total

  8  revenue from a nonbasic service is less than the total

  9  long-run incremental cost of the service.  Total long-run

10  incremental cost means service-specific volume and

11  nonvolume-sensitive costs.

12         (c)  The price charged to a consumer for a nonbasic

13  service shall cover the direct costs of providing the service

14  and shall, to the extent a cost is not included in the direct

15  cost, include as an imputed cost the price charged by the

16  company to competitors for any monopoly component used by a

17  competitor in the provision of its same or functionally

18  equivalent service.

19         Section 12.  (1)  There is created the Information

20  Service Technology Development Task Force which shall be

21  located within the Department of Management Services for the

22  purpose of developing policies that will benefit residents of

23  this state by fostering the free-market development and

24  beneficial use of advanced communications networks and

25  information technologies within this state.  The task force

26  shall be composed of 34 members as follows:

27         (a)  The Attorney General, the executive director of

28  the Florida Department of Law Enforcement, the Chancellor of

29  the State University System, the Commissioner of Education,

30  the executive director of the State Board of Community

31  Colleges, the director of the Office of Tourism, Trade, and


                                  18

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






    CS for SB 2296                                 First Engrossed



  1  Economic Development, the executive director of the Department

  2  of Revenue, a representative of the Florida Council of

  3  American Electronics Association, a representative of the

  4  Florida Internet Providers Association, a representative of

  5  the United States Internet Council, the chair of the State

  6  Technology Council, and the secretary of the Department of

  7  Management Services.

  8         (b)  The President of the Senate shall appoint one

  9  member from each of the following categories: a

10  facilities-based interexchange telecommunications company, a

11  wireless telecommunications company, an alternative local

12  exchange telecommunications company, an internet service

13  provider with more than one million customers, the

14  entertainment industry, a computer or telecommunications

15  manufacturing company, and one member of the Florida Senate.

16         (c)  The Speaker of the House of Representatives shall

17  appoint one member from each of the following categories: a

18  cable television provider, a computer software company, the

19  banking industry, an internet search engine company, a local

20  exchange telecommunications company, the tourist industry, and

21  one member of the House of Representatives.

22         (d)  The Governor shall name the chair, and appoint

23  members as follows: one college student who relies on the

24  Internet for personal or academic use, a representative of a

25  local government that is an alternative local exchange

26  telecommunications company or an Internet service provider,

27  and four members as determined by the Governor to

28  appropriately represent technology providers, manufacturers,

29  retailers, and users.

30

31


                                  19

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






    CS for SB 2296                                 First Engrossed



  1         (e)  The minority leader of the House of

  2  Representatives shall appoint one member of the House of

  3  Representatives.

  4         (f)  The minority leader of the Senate shall appoint

  5  one member of the Senate.

  6         (2)  The task force shall exist for 2 years and shall

  7  meet at least four times per year. Failure of a member to

  8  participate in three consecutive meetings shall result in the

  9  member's replacement by the Governor. The task force is

10  encouraged to implement electronic bulletin boards and other

11  means for the exchange of ideas throughout the year.

12         (3)  The task force shall develop overarching

13  principles to guide state policy decisions with respect to the

14  free-market development and beneficial use of advanced

15  communications networks and information technologies, identify

16  factors that will affect whether these technologies will

17  flourish in Florida, and develop policy recommendations for

18  each factor.

19         (4)  By February 14 of calendar years 2000 and 2001,

20  the task force shall submit a report to the Governor, the

21  President of the Senate, and the Speaker of the House of

22  Representatives outlining principles, policy recommendations,

23  and any suggested legislation. The task force may develop and

24  publish other documents throughout the year.

25         (5)  The State Technology Office within the Department

26  of Management Services shall provide support staff for the

27  task force and promote public awareness of the development of

28  principles and policy recommendations by the task force. The

29  State University System shall assist the task force as

30  necessary.

31


                                  20

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






    CS for SB 2296                                 First Engrossed



  1         (6)  The task force shall dissolve effective July 1,

  2  2001.

  3         Section 13.  Effective July 1, 1999, the sum of

  4  $375,100 is appropriated from the General Revenue Fund to the

  5  State Technology Office in the Department of Management

  6  Services and four positions are created in the department for

  7  the purpose of carrying out section 12 of this act.

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

  9  337.401, Florida Statutes, 1998 Supplement, to read:

10         337.401  Use of right-of-way for utilities subject to

11  regulation; permit; fees.--

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

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

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

15         Section 15.  This act shall take effect July 1, 1999.

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31


                                  21