House Bill 4013e1

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                                          HB 4013, First Engrossed



  1                      A bill to be entitled

  2         An act relating to the Florida Statutes;

  3         repealing or deleting various statutory

  4         provisions that have become obsolete, have had

  5         their effect, have served their purpose, or

  6         have been impliedly repealed or superseded;

  7         repealing s. 363.01, F.S., relating to rates

  8         charged by telegraph and cable companies;

  9         repealing s. 364.025(4)(d), F.S., relating to a

10         report on the amount of support necessary to

11         provide residential basic local

12         telecommunications service to low-income

13         customers; amending s. 364.051, F.S.; deleting

14         provisions relating to a report on the need to

15         extend price caps for basic local

16         telecommunications service; correcting a cross

17         reference; amending s. 364.052, F.S.; deleting

18         obsolete deadlines relating to regulation of

19         small local exchange telecommunications

20         companies; repealing s. 364.057(3), F.S.,

21         relating to a limited period of authorization

22         for two-way, intrastate, residential

23         communications services for testing marketing

24         strategies or technical feasibility; amending

25         s. 364.162, F.S.; deleting obsolete provisions

26         relating to negotiations for interconnection

27         and resale agreements; amending s. 364.16,

28         F.S.; correcting a cross reference, to conform;

29         repealing s. 364.245(1), F.S., relating to

30         findings with respect to the use of

31         telecommunications services for unlawful


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                                          HB 4013, First Engrossed



  1         purposes; repealing s. 365.15, F.S., relating

  2         to emergency calls over party lines; amending

  3         s. 365.171, F.S.; deleting findings relating to

  4         the statewide emergency telephone number "911"

  5         plan; amending s. 427.704, F.S.; deleting an

  6         obsolete deadline for designation of the

  7         administrator of the telecommunications access

  8         system; amending s. 427.705, F.S.; deleting an

  9         obsolete deadline for such administrator to

10         assume responsibility for distribution of

11         specialized telecommunications devices;

12         providing an effective date.

13

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

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16         Section 1.  Section 363.01, Florida Statutes, is

17  repealed.

18         Section 2.  Paragraph (d) of subsection (4) of section

19  364.025, Florida Statutes, is repealed.

20         Section 3.  Subsections (3), (4), (5), and (6) of

21  section 364.051, Florida Statutes, are amended to read:

22         364.051  Price regulation.--

23         (3)(a)  By December 1, 1997, the commission shall

24  report and recommend on an exchange by exchange basis to the

25  Legislature as to whether there is a need to extend the caps

26  provided for in paragraphs (2)(a) and (b) for basic local

27  telecommunications service prices, or whether there is some

28  other means, excluding rate of return regulation, to ensure

29  reasonable and affordable rates for basic local

30  telecommunications service.

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                                          HB 4013, First Engrossed



  1         (b)  In making the determination as to whether price

  2  caps are needed to ensure reasonable and affordable rates for

  3  basic local telecommunications service provided by a local

  4  exchange telecommunications company with less than 3 million

  5  basic local telecommunications service access lines in service

  6  on July 1, 1995, the commission shall consider whether the

  7  level of competition in the area justifies the elimination of

  8  price caps.

  9         (c)  The Legislature shall review the commission's

10  report submitted pursuant to paragraph (a) and determine

11  whether there is a continuing need for basic local

12  telecommunications service prices to remain capped.  Unless

13  the Legislature acts to the contrary, the caps shall remain in

14  place in any exchange in which the Legislature determines that

15  the level of competition does not justify the elimination of

16  price caps for an additional 2 years or until the commission

17  during that 2-year period determines that the level of

18  competition in the exchange justifies the elimination of price

19  caps.

20         (3)(4)  In the event that it is determined that the

21  level of competition justifies the elimination of price caps

22  in an exchange served by a local exchange telecommunications

23  company with less than 3 million basic local

24  telecommunications service access lines in service, or at the

25  end of 5 years for any local exchange telecommunications

26  company, the local exchange telecommunications company may

27  thereafter on 30 days' notice adjust its basic service prices

28  once in any 12-month period in an amount not to exceed the

29  change in inflation less 1 percent.  Inflation shall be

30  measured by the changes in the Gross Domestic Product Fixed

31  1987 Weights Price Index, or successor fixed weight price


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                                          HB 4013, First Engrossed



  1  index, published in the Survey of Current Business or a

  2  publication, by the United States Department of Commerce.  In

  3  the event any local exchange telecommunications company, after

  4  January 1, 2001, believes that the level of competition

  5  justifies the elimination of any form of price regulation the

  6  company may petition the Legislature.

  7         (4)(5)  Notwithstanding the provisions of subsection

  8  (2), any local exchange telecommunications company that

  9  believes circumstances have changed substantially to justify

10  any increase in the rates for basic local telecommunications

11  services may petition the commission for a rate increase, but

12  the commission shall grant such petition only after an

13  opportunity for a hearing and a compelling showing of changed

14  circumstances.  The costs and expenses of any government

15  program or project required in part II shall not be recovered

16  under this subsection unless such costs and expenses are

17  incurred in the absence of a bid and subject to

18  carrier-of-last-resort obligations as provided for in part II.

19  The commission shall act upon any such petition within 120

20  days of its filing.

21         (5)(6)  NONBASIC SERVICES.--Price regulation of

22  nonbasic services shall consist of the following:

23         (a)  Each company subject to this section shall

24  maintain tariffs with the commission containing the terms,

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

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

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

28  nonbasic service category shall not exceed 6 percent within a

29  12-month period until there is another provider providing

30  local telecommunications service in an exchange area at which

31  time the price for any nonbasic service category may be


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                                          HB 4013, First Engrossed



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

  2  12-month period, and the rate shall be presumptively valid.

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

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

  5  exchange service, including multiple individual lines, centrex

  6  lines, private branch exchange trunks, and any associated

  7  hunting services, that provides dial tone and local usage

  8  necessary to place a call within a local exchange calling

  9  area; and

10         2.  Telecommunications services provided under contract

11  service arrangements to the SUNCOM Network, as defined in

12  chapter 282,

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

15  such rates shall not be increased prior to January 1, 2000;

16  provided, however, that a petition to increase such rates may

17  be filed pursuant to subsection (4) (5) utilizing the

18  standards set forth therein.  There shall be a flat-rate

19  pricing option for multi-line business local exchange service,

20  and mandatory measured service for multi-line business local

21  exchange service shall not be imposed. Nothing contained in

22  this section shall prevent the local exchange

23  telecommunications company from meeting offerings by any

24  competitive provider of the same, or functionally equivalent,

25  nonbasic services in a specific geographic market or to a

26  specific customer by deaveraging the price of any nonbasic

27  service, packaging nonbasic services together or with basic

28  services, using volume discounts and term discounts, and

29  offering individual contracts. However, the local exchange

30  telecommunications company shall not engage in any

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                                          HB 4013, First Engrossed



  1  anticompetitive act or practice, nor unreasonably discriminate

  2  among similarly situated customers.

  3         (b)  The commission shall have continuing regulatory

  4  oversight of nonbasic services for purposes of ensuring

  5  resolution of service complaints, preventing

  6  cross-subsidization of nonbasic services with revenues from

  7  basic services, and ensuring that all providers are treated

  8  fairly in the telecommunications market.  The cost standard

  9  for determining cross-subsidization is whether the total

10  revenue from a nonbasic service is less than the total

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

12  incremental cost means service-specific volume and

13  nonvolume-sensitive costs.

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

15  service shall cover the direct costs of providing the service

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

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

18  company to competitors for any monopoly component used by a

19  competitor in the provision of its same or functionally

20  equivalent service.

21         Section 4.  Subsection (2) of section 364.052, Florida

22  Statutes, is amended to read:

23         364.052  Regulatory methods for small local exchange

24  telecommunications companies.--

25         (2)  A small local exchange telecommunications company

26  shall remain under rate base, rate of return regulation until

27  the company elects to become subject to s. 364.051, or January

28  1, 2001, whichever occurs first. After July 1, 1996, A company

29  subject to this section, electing to be regulated pursuant to

30  s. 364.051, will have any overearnings attributable to a

31  period prior to the date on which the company makes the


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                                          HB 4013, First Engrossed



  1  election subject to refund or other disposition by the

  2  commission.  Small local exchange telecommunications companies

  3  not electing the price regulation provided for under s.

  4  364.051 shall also be regulated pursuant to ss. 364.03,

  5  364.035(1) and (2), 364.05, and 364.055 and other provisions

  6  necessary for rate base, rate of return regulation.  If a

  7  small local exchange telecommunications company has not

  8  elected to be regulated under s. 364.051, by January 1, 2001,

  9  the company shall remain under rate base, rate of return

10  regulation until such time as a certificated alternative local

11  exchange company provides basic local telecommunications

12  service in the company's territory. At such time, the small

13  local exchange telecommunications company shall be subject to

14  s. 364.051.

15         (a)  By July 1, 1996, The commission shall establish,

16  by rule, ranges of basic factors for lives and salvage values

17  to be used in developing depreciation rates for companies

18  subject to this section.  Companies shall have the option of

19  using basic factors within the established ranges or of filing

20  depreciation studies.

21         (b)  By January 1, 1996, The commission shall adopt, by

22  rule, streamlined procedures for regulating companies subject

23  to this section. These procedures shall minimize the burdens

24  of regulation with regard to audits, investigations, service

25  standards, cost studies, reports, and other matters, and the

26  commission shall establish, by rule, only those procedures

27  that are cost-justified and are in the public interest so that

28  universal service may be promoted.  Upon petition filed in

29  this rulemaking proceeding, the commission shall review and

30  may approve any regulations unique to the specific

31  circumstances of a company subject to this section.


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                                          HB 4013, First Engrossed



  1         Section 5.  Subsection (3) of section 364.057, Florida

  2  Statutes, is repealed.

  3         Section 6.  Section 364.162, Florida Statutes, is

  4  amended to read:

  5         364.162  Negotiated prices for interconnection and for

  6  the resale of services and facilities; commission rate

  7  setting.--

  8         (1)  Any party who, on July 1, 1995, has an application

  9  on file with the commission to become An alternative local

10  exchange telecommunications company shall have 60 days from

11  the date it is certificated until August 31, 1995, to

12  negotiate with a local exchange telecommunications company

13  mutually acceptable prices, terms, and conditions of

14  interconnection and for the resale of services and facilities.

15         (2)  If a negotiated price is not established after 60

16  days by August 31, 1995, either party may petition the

17  commission to establish nondiscriminatory rates, terms, and

18  conditions of interconnection and for the resale of services

19  and facilities.  The commission shall have 120 days to make a

20  determination after proceeding as required by subsection (2).

21  Whether set by negotiation or by the commission,

22  interconnection and resale prices, rates, terms, and

23  conditions shall be filed with the commission before their

24  effective date.  The commission shall have the authority to

25  arbitrate any dispute regarding interpretation of

26  interconnection or resale prices and terms and conditions.

27         (2)(3)  In the event that the commission receives a

28  single petition relating to either interconnection or resale

29  of services and facilities, it shall vote, within 120 days

30  following such filing, to set nondiscriminatory rates, terms,

31  and conditions, except that the rates shall not be below cost.


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                                          HB 4013, First Engrossed



  1  If the commission receives one or more petitions relating to

  2  both interconnection and resale of services and facilities,

  3  the commission shall conduct separate proceedings for each

  4  and, within 120 days following such filing, make two separate

  5  determinations setting such nondiscriminatory rates, terms,

  6  and conditions, except that the rates shall not be below cost.

  7         (3)(4)  In setting the local interconnection charge,

  8  the commission shall determine that the charge is sufficient

  9  to cover the cost of furnishing interconnection.

10         (4)(5)  The commission shall ensure that, if the rate

11  it sets for a service or facility to be resold provides a

12  discount below the tariff rate for such service or facility

13  which appropriately reflects the local exchange

14  telecommunications company's avoidance of the expense and cost

15  of marketing such service or facility to retail customers,

16  such rate must not be below cost.  The commission shall also

17  ensure assure that this rate is not set so high that it would

18  serve as a barrier to competition.

19         (6)  An alternative local exchange telecommunications

20  company that did not have an application for certification on

21  file with the commission on July 1, 1995, shall have 60 days

22  from the date it is certificated to negotiate with a local

23  exchange telecommunications company mutually acceptable

24  prices, terms, and conditions of interconnection and for the

25  resale of services and facilities.  If a negotiated price is

26  not established after 60 days, either party may petition the

27  commission to establish nondiscriminatory rates, terms, and

28  conditions of interconnection and for the resale of services

29  and facilities.  The commission shall have 120 days to make a

30  determination after proceeding as required by subsection (3).

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                                          HB 4013, First Engrossed



  1         (7)  Prior to July 1, 1999, the parties may negotiate a

  2  new local interconnection charge to be effective not earlier

  3  than July 1, 1999.  If the parties cannot satisfactorily

  4  negotiate a new local interconnection charge, either party may

  5  petition the commission to resolve the matter.  In the event

  6  any party, prior to July 1, 1999, believes that circumstances

  7  have changed substantially to warrant a different price for

  8  local interconnection, that party may petition the commission

  9  for a price change, but the commission shall grant such

10  petition only after an opportunity for a hearing and a

11  compelling showing of changed circumstances, including that

12  the provider's customer population includes as many

13  residential as business customers.  The commission shall act

14  on any such petition within 120 days.

15         Section 7.  Subsection (2) of section 364.16, Florida

16  Statutes, is amended to read:

17         364.16  Connection of lines and transfers; local

18  interconnection; telephone number portability.--

19         (2)  Each alternative local exchange telecommunications

20  company shall provide access to, and interconnection with, its

21  telecommunications services to any other provider of local

22  exchange telecommunications services requesting such access

23  and interconnection at nondiscriminatory prices, terms, and

24  conditions. If the parties are unable to negotiate mutually

25  acceptable prices, terms, and conditions after 60 days, either

26  party may petition the commission and the commission shall

27  have 120 days to make a determination after proceeding as

28  required by s. 364.162(2)(6) pertaining to interconnection

29  services.

30         Section 8.  Subsection (1) of section 364.245, Florida

31  Statutes, is repealed.


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                                          HB 4013, First Engrossed



  1         Section 9.  Section 365.15, Florida Statutes, is

  2  repealed.

  3         Section 10.  Subsection (2) of section 365.171, Florida

  4  Statutes, is amended to read:

  5         365.171  Emergency telephone number "911."--

  6         (2)  LEGISLATIVE INTENT.--The Legislature hereby finds

  7  and declares that it is in the public interest to shorten the

  8  time required for a citizen to request and receive emergency

  9  aid. There currently exist thousands of different emergency

10  phone numbers throughout the state.  Provision for a single,

11  primary three-digit emergency number through which emergency

12  services can be quickly and efficiently obtained would provide

13  a significant contribution to law enforcement and other public

14  service efforts by making it easier to notify public safety

15  personnel.  Such a simplified means of procuring emergency

16  services will result in the saving of life, a reduction in the

17  destruction of property, and quicker apprehension of

18  criminals. It is the intent of the Legislature to establish

19  and implement a cohesive statewide emergency telephone number

20  "911" plan which will provide citizens with rapid direct

21  access to public safety agencies by dialing the telephone

22  number "911" with the objective of reducing the response time

23  to situations requiring law enforcement, fire, medical,

24  rescue, and other emergency services.

25         Section 11.  Subsection (2) of section 427.704, Florida

26  Statutes, is amended to read:

27         427.704  Powers and duties of the commission.--

28         (2)  By July 1, 1991, The commission shall designate as

29  the administrator of the telecommunications access system a

30  corporation not for profit organized for such purposes and

31  incorporated pursuant to chapter 617. For the purposes of this


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                                          HB 4013, First Engrossed



  1  part, the commission may order telecommunications companies to

  2  form such a corporation not for profit.

  3         Section 12.  Subsection (7) of section 427.705, Florida

  4  Statutes, is amended to read:

  5         427.705  Administration of the telecommunications

  6  access system.--

  7         (7)  By September 1, 1991, The administrator shall

  8  assume responsibility for distribution of specialized

  9  telecommunications devices.

10         Section 13.  This act shall take effect upon becoming a

11  law.

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