House Bill 2301er

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    2000 Legislature                                       HB 2301



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  2         An act relating to telecommunications; amending

  3         s. 364.025, F.S.; extending certain time

  4         periods for provision of universal service

  5         obligations; providing an effective date.

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

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  9         Section 1.  Subsections (1), (2), (3), and (4) of

10  section 364.025, Florida Statutes, are amended to read:

11         364.025  Universal service.--

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

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

14  telecommunications services that, taking into account advances

15  in technologies, services, and market demand for essential

16  services, the commission determines should be provided at

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

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

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

20  service objectives be maintained after the local exchange

21  market is opened to competitively provided services.  It is

22  also the intent of the Legislature that during this transition

23  period the ubiquitous nature of the local exchange

24  telecommunications companies be used to satisfy these

25  objectives. For a period of 8 5 years after January 1, 1996,

26  each local exchange telecommunications company shall be

27  required to furnish basic local exchange telecommunications

28  service within a reasonable time period to any person

29  requesting such service within the company's service

30  territory.

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    2000 Legislature                                       HB 2301



  1         (2)  The Legislature finds that each telecommunications

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

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

  4  obligations.  For a transitional period not to exceed January

  5  1, 2004 2001, the an interim mechanism for maintaining

  6  universal service objectives and funding

  7  carrier-of-last-resort obligations shall be established by the

  8  commission, pending the implementation of a permanent

  9  mechanism.  The interim mechanism shall be applied in a manner

10  that ensures that each alternative local exchange

11  telecommunications company contributes its fair share to the

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

13  obligations.  The interim mechanism applied to each

14  alternative local exchange telecommunications company shall

15  reflect a fair share of the local exchange telecommunications

16  company's recovery of investments made in fulfilling its

17  carrier-of-last-resort obligations, and the maintenance of

18  universal service objectives. The commission shall ensure that

19  the interim mechanism does not impede the development of

20  residential consumer choice or create an unreasonable barrier

21  to competition.  In reaching its determination, the commission

22  shall not inquire into or consider any factor that is

23  inconsistent with s. 364.051(1)(c).  The costs and expenses of

24  any government program or project required in part II of this

25  chapter shall not be recovered under this section.

26         (3)  In the event any party, prior to January 1, 2004

27  2001, believes that circumstances have changed substantially

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

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

30  grant such petition only after an opportunity for a hearing

31  and a compelling showing of changed circumstances, including


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    2000 Legislature                                       HB 2301



  1  that the provider's customer population includes as many

  2  residential as business customers.  The commission shall act

  3  on any such petition within 120 days.

  4         (4)(a)  Prior to January 1, 2004 2001, the Legislature

  5  shall establish a permanent universal service mechanism upon

  6  the effective date of which any interim recovery mechanism for

  7  universal service objectives or carrier-of-last-resort

  8  obligations imposed on alternative local exchange

  9  telecommunications companies shall terminate.

10         (b)  To assist the Legislature in establishing a

11  permanent universal service mechanism, the commission, by

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

13  of the Senate and the Speaker of the House of Representatives

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

15  commercially available technology and equipment and generally

16  accepted design and placement principles, of providing basic

17  local telecommunications service on a basis no greater than a

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

19  the commission after notice and opportunity for hearing.

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

21  telecommunications service for small local exchange

22  telecommunications companies, which serve less than 100,000

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

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

25  mechanism is implemented by the Federal Government for small

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

27  shall calculate a small local exchange telecommunications

28  company's cost of providing basic local telecommunications

29  services based on one of the following options:

30         1.  A different proxy model; or

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    2000 Legislature                                       HB 2301



  1         2.  A fully distributed allocation of embedded costs,

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

  3  company serves and including all embedded investments and

  4  expenses incurred by the company in the provision of universal

  5  service. Such calculations may be made using fully distributed

  6  costs consistent with 47 C.F.R. parts 32, 36, and 64. The

  7  geographic basis for the calculations shall be no smaller than

  8  a census block group.

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

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

11  Speaker of the House of Representatives the amount of support

12  necessary to provide residential basic local

13  telecommunications service to low-income customers. For

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

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

16         Section 2.  This act shall take effect upon becoming a

17  law.

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