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



                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

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10  ______________________________________________________________

11  Representative(s) Maygarden offered the following:

12

13         Amendment (with title amendment) 

14  Remove everything after the enacting clause

15

16  and insert:

17         Section 1.  Subsection (3) is added to section 364.10,

18  Florida Statutes, to read:

19         364.10  Undue advantage to person or locality

20  prohibited; exception.--

21         (3)(a)  Any local exchange telecommunications company

22  authorized by the commission to reduce its switched network

23  access rate pursuant to s. 364.164, shall, effective March 31,

24  2003, have tariffed and shall provide Lifeline Assistance Plan

25  service to any otherwise eligible customer or potential

26  customer who meets an income eligibility test at 125 percent

27  or less of the federal poverty income guidelines for Lifeline

28  Assistance Plan customers. Such test for eligibility shall

29  augment, rather than replace, the eligibility standards

30  established by federal law and based on participation in

31  certain low-income assistance programs. Each interexchange

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  telecommunications carrier shall, effective March 31, 2003,

  2  file a tariff providing, at a minimum, the interexchange

  3  telecommunications carrier's current Lifeline Assistance Plan

  4  benefits and exemptions to Lifeline Assistance Plan customers

  5  who meet the income eligibility test set forth in this

  6  subsection. The Office of Public Counsel shall serve as the

  7  state agency which certifies and maintains claims submitted by

  8  a customer for eligibility under the income test authorized by

  9  this subsection.

10         (b)  Each local exchange telecommunications company

11  subject to this subsection shall provide each state and

12  federal agency that provides benefits to persons that are

13  eligible for the Lifeline Assistance Plan service with

14  applications, brochures, pamphlets, or other materials which

15  inform such persons of their eligibility for the Lifeline

16  Assistance Plan service, and each state agency providing such

17  benefits shall furnish such materials to affected persons at

18  the time such persons apply for benefits.

19         (c)  Any local exchange telecommunications company

20  customer receiving Lifeline Assistance Plan benefits shall not

21  be subject to any residential basic local telecommunications

22  service rate increases authorized by s. 364.164 until such

23  time as the local exchange telecommunications company reaches

24  parity as defined in s. 364.164(6) or until the customer no

25  longer qualifies for the Lifeline Assistance Plan benefits

26  established by this section or s. 364.105, or unless otherwise

27  determined by the commission upon petition by a local exchange

28  telecommunications company.

29         (d)  Each agency that provides benefits to persons that

30  are eligible for the Lifeline Assistance Plan service shall,

31  by December 31, 2002, notify each such person by postcard of

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  his or her eligibility for the Lifeline Assistance Plan

  2  service, together with the name of the local exchange

  3  telecommunications company.  The direct cost of this postcard

  4  production and mailing shall be paid by the local exchange

  5  telecommunications companies with more than one million access

  6  lines in service.  The commission shall report to the

  7  Governor, the Speaker of the House of Representatives and the

  8  President of the Senate by December 31st of each year on the

  9  number of customers who are subscribing to Lifeline Assistance

10  Plan service.

11         Section 2.  Section 364.163, Florida Statutes, is

12  amended to read:

13         364.163  Network access services.--For purposes of this

14  section, "network access service" is defined as any service

15  provided by a local exchange telecommunications company to a

16  telecommunications company certificated under this chapter or

17  licensed by the Federal Communications Commission to access

18  the local exchange telecommunications network, excluding the

19  local interconnection arrangements in s. 364.16 and the resale

20  arrangements in s. 364.161. Each local exchange

21  telecommunications company subject to s. 364.051 shall

22  maintain tariffs with the commission containing the terms,

23  conditions, and rates for each of its network access services.

24         (1)  Effective January 1, 1999, the rates for switched

25  network access services of each company subject to this

26  section shall be capped at the rates in effect on January 1,

27  1999, and shall remain capped until January 1, 2001. Upon the

28  date of filing its election with the commission, the network

29  access service rates of a company that elects to become

30  subject to this section shall be capped at the rates in effect

31  on that date and shall remain capped for 5 years.

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1         (1)(2)  After the termination of the caps imposed on

  2  rates by subsection (1) and after a local exchange

  3  telecommunications company's intrastate switched network

  4  access rates are reduced to or below reach parity, as defined

  5  in s. 364.164(6), the company's intrastate switched network

  6  access rates shall be capped and shall remain capped for 3

  7  years thereafter. with its interstate switched access rates, a

  8  company subject to this section may, on 30 days' notice,

  9  annually adjust any specific network access service rate in an

10  amount not to exceed the cumulative change in inflation

11  experienced after the date of the last adjustment, provided,

12  however, that no such adjustment shall ever exceed 3 percent

13  annually of the then-current prices.  Inflation shall be

14  measured by the changes in Gross Domestic Product Fixed 1987

15  Weights Price Index, or successor fixed weight price index,

16  published in the Survey of Current Business, or successor

17  publication, by the United States Department of Commerce.

18         (3)  After the termination of the caps imposed on rates

19  by subsection (1), a company subject to this section may, at

20  any time, petition the commission for a network access service

21  rate change to recover the cost of governmentally mandated

22  projects or programs or an increase in federal or state income

23  tax incurred after that date.  The costs and expenses of the

24  government program or project required in part II of this

25  chapter shall not be recovered under this subsection unless

26  such costs and expenses are incurred in the absence of a bid

27  and subject to carrier of last resort obligations as provided

28  for in part II of this chapter.  With respect to

29  governmentally mandated projects and programs, such petition

30  shall be acted upon no later than 90 days after the date of

31  filing.  A company subject to this section shall show the

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  commission that the cost of a project or program is not

  2  recoverable either from the government mandating the project

  3  or program or from the beneficiaries of the project or program

  4  through user fees or other new revenue sources from the

  5  project or program, and to the extent that cost decreases

  6  resulting from the project or program are reflected as an

  7  offset to cost increases.  A company subject to this section

  8  shall decrease its network access rates by amounts that

  9  reflect any federal or state income tax reduction. Nothing

10  contained in this section shall allow any revisions in the

11  rates, terms, and conditions for commercial mobile radio

12  service access, which revisions are inconsistent with the

13  requirements or methodologies of the Federal Communications

14  Commission.

15         (4)  A company subject to this section may choose to

16  implement all or a portion of a rate increase allowed for

17  network access service by subsections (1), (2), and (3).

18  Notwithstanding subsections (1), (2), and (3), a company

19  subject to this section may choose to decrease network service

20  rates at any time, and decreased rates shall become effective

21  upon 7 days' notice.

22         (5)  company-proposed changes to the terms and

23  conditions for existing network access services in accordance

24  with subsections (1), (2), (3), and (4) shall be presumed

25  valid and become effective upon 15 days' notice.

26  company-proposed rate reductions shall become effective upon 7

27  days' notice. Rate increases made by the local exchange

28  telecommunications company shall be presumed valid and become

29  effective on the date specified in the tariff, but in no event

30  earlier than 30 days after the filing of such tariff.  The

31  commission shall have continuing regulatory oversight of local

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  exchange telecommunications company-provided network access

  2  services for purposes of determining the correctness of any

  3  price increase resulting from the application of the inflation

  4  index and making any necessary adjustments, establishing

  5  reasonable service quality criteria, and assuring resolution

  6  of service complaints. No later than 30 days after the filing

  7  of such tariff, the commission may, with respect to

  8  determining the correctness of any price increase, vote,

  9  without hearing, the local exchange telecommunications company

10  to hold subject to refund all revenues collected under the

11  rate increase. Within 60 days after such order, the commission

12  must make a determination either compelling a refund of all or

13  part of such revenues or releasing them from such requirement.

14         (2)(6)  Any local exchange telecommunications company

15  with more than 100,000, but fewer than 3 million, basic local

16  telecommunications service access lines in service on July 1,

17  1995, shall reduce its intrastate switched access rates by 5

18  percent on July 1, 1998, and by 10 percent on October 1, 1998.

19  Any interexchange telecommunications carrier company whose

20  intrastate switched network access rate is reduced as a result

21  of the rate adjustments decreases made by a local exchange

22  telecommunications company in accordance with s. 364.164 this

23  subsection shall decrease its intrastate long distance

24  revenues rates by the amount necessary to return the benefits

25  of such reduction to both its residential and business

26  customers but shall not reduce per minute intra-LATA toll

27  rates by a percentage greater than the per minute intrastate

28  switched access rate reductions required by this act. The

29  interexchange telecommunications carrier may determine the

30  specific intrastate rates to be decreased, provided that

31  residential and business customers benefit from the rate

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  decreases. However, any interexchange telecommunications

  2  carrier that charges an in-state connection fee shall use any

  3  decrease in the intrastate switched network access rate

  4  reductions required by s. 364.164 to first eliminate that fee

  5  before it reduces its long distance toll rates. In any event,

  6  any in-state connection fee shall be eliminated by March 1,

  7  2004, provided that the timetable approved pursuant to s.

  8  364.164(2) reduces intrastate switched network access rates in

  9  an amount that results in the elimination of the access

10  recovery charge in a revenue-neutral manner. The tariff

11  changes, if any, made by the interexchange telecommunications

12  carrier to carry out the requirements of this subsection shall

13  be presumed valid and become effective on 1 day's notice.

14         (7)  Telecommunications company intrastate switched

15  access and customer long distance rate reductions shall become

16  effective on October 1 of each relevant year.  Rate decreases

17  proposed in tariff revisions filed by the telecommunications

18  companies with the commission shall be presumed valid and

19  become effective on October 1 of each relevant year.

20         (8)  No later than 30 days after the filing of such

21  tariff, the commission may, with respect to determining the

22  correctness of any rate decrease, vote, without hearing, the

23  telecommunications company to hold subject to refund all

24  intrastate switched access or customer long distance rate

25  revenues collected after the rate decrease.  Within 60 days

26  after such order, the commission must make a determination

27  either compelling a refund of the appropriate part of such

28  revenues or releasing all such revenues from such requirement.

29         (3)(9)  The commission shall have continuing regulatory

30  oversight of intrastate switched network access and customer

31  long distance rates for purposes of determining the

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  correctness of any rate decrease by a telecommunications

  2  company resulting from the application of this section and s.

  3  364.164, and making any necessary adjustments to those rates,

  4  establishing reasonable service quality criteria, and assuring

  5  resolution of service complaints. Nothing in this subsection

  6  shall be construed to mean that the commission does not have

  7  continuing regulatory oversight of service quality criteria or

  8  the authority to resolve service complaints for all

  9  telecommunications companies subject to this section.

10         Section 3.  Section 364.164, Florida Statutes, is

11  created to read:

12         364.164  Switched network access rate reduction.--

13         (1)  The Legislature finds the following:

14         (a)  Residential local exchange competition is in the

15  best interest of Florida and its telecommunications consumers;

16         (b)  Residential basic local telecommunications service

17  prices are, on average, below cost, being subsidized with

18  revenues from other services including switched network access

19  charges;

20         (c)  The intrastate switched network access charges

21  paid by interexchange telecommunications companies in Florida

22  are above cost and are higher than the interstate switched

23  network access charges which such companies pay to the same

24  local exchange telecommunications companies in Florida;

25         (d)  The subsidization of residential basic local

26  telecommunications service prices with revenues from

27  intrastate switched network access charges is inhibiting the

28  development of residential basic local exchange service

29  competition;

30         (e)  Restructuring the prices for residential basic

31  local telecommunications service and intrastate switched

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  network access closer to the cost of providing these services

  2  should promote local and long distance competition; and

  3         (f)  The Florida Public Service Commission is the

  4  appropriate body to determine whether intrastate switched

  5  network access charges and basic local telecommunications

  6  service prices will be adjusted in a manner which is revenue

  7  neutral to the local exchange telecommunications company and

  8  beneficial to residential consumers.

  9         (2)  Each local exchange telecommunications company

10  with more than 1 million access lines in service may, after

11  December 1, 2002, petition the commission to reduce its

12  intrastate switched network access rates in a revenue neutral

13  manner.  Any local exchange telecommunications company with 1

14  million or less access lines in service may, after December 1,

15  2003, petition the commission to reduce its intrastate

16  switched network access rates in a revenue neutral manner.

17  The commission shall issue its final order granting or denying

18  any petition filed pursuant to this section within 90 days.

19  The commission shall grant the petition if it finds that

20  granting the petition:

21         (a)  Will result in switched network access rate

22  reductions that will be implemented during a period to be

23  determined by the commission, but such period shall not be

24  less than 2 years or more than 5 years;

25         (b)  Will benefit consumers by reducing or eliminating

26  the subsidy to residential basic local telecommunications

27  service rates provided by intrastate switched network access

28  rates;

29         (c)  Will move intrastate switched network access rates

30  to parity;

31         (d)  Will create a more favorable competitive

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  environment;

  2         (e)  Will be revenue neutral to the local exchange

  3  telecommunications company as set forth in subsection (3); and

  4         (f)  Will result in benefits to toll customers.

  5         (3)  In the event the commission grants the local

  6  exchange telecommunications company's petition, the local

  7  exchange telecommunications company is authorized, the

  8  requirements of s. 364.051(3) notwithstanding, to immediately

  9  implement a revenue category mechanism consisting of basic

10  local telecommunications service revenues and intrastate

11  switched network access revenues, to achieve revenue

12  neutrality.  The local exchange telecommunications company

13  shall thereafter, on 45 days' notice, adjust the various

14  prices and rates of the services within its revenue category

15  authorized by this section once in any 12-month period in a

16  revenue neutral manner.  In no event shall any adjustment in

17  rates be offset entirely by the monthly recurring rate for

18  basic local telecommunications service.  All annual rate

19  adjustments within the revenue category established pursuant

20  to this section shall be implemented simultaneously and shall

21  be revenue neutral.  The commission shall, within 45 days

22  after the rate adjustment filing, issue a final order

23  confirming compliance with this section, and such order shall

24  be final for all purposes.

25         (4)  Any filing under this section shall be based on

26  the company's most recent 12 months' pricing units in

27  accordance with subsection (8) for any service included in the

28  revenue category established under this section. The

29  commission shall have the authority only to verify the pricing

30  units for the purpose of ensuring that the company's specific

31  adjustments, as authorized by this section, make the revenue

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  category revenue neutral for each filing.  Any discovery or

  2  information requests under this section shall be limited to a

  3  verification of historical pricing units necessary to fulfill

  4  the commission's specific responsibilities under this section

  5  of ensuring that the company's rate adjustments make the

  6  revenue category revenue neutral for each annual filing.

  7         (5)  Nothing in this section shall affect the local

  8  exchange telecommunications company's exemptions pursuant to

  9  s. 364.051(1)(c) or authorize any local exchange

10  telecommunications company to increase the cost of local

11  exchange services to any person providing services under s.

12  364.3375.

13         (6)  For purposes of this section, "parity" means that

14  the local exchange telecommunications company's intrastate

15  switched network access rate is equal to its interstate

16  switched network access rate in effect on January 1, 2002, if

17  the company has more than 4 million access lines in service.

18  If the company has 4 million or less and more than 1 million

19  access lines in service, "parity" means that the company's

20  intrastate switched network access rate is equal to 2 cents

21  per minute.  If the company has 1 million or less access lines

22  in service, "parity" means that the company's intrastate

23  switched network access rate is equal to 8 cents per minute.

24  Nothing in this section shall prevent the company from making

25  further reductions in its intrastate switched network access

26  rate, within the revenue category established in this section,

27  below parity on a revenue-neutral basis, or from making other

28  revenue neutral rate adjustments within this category.

29         (7)  For purposes of this section, "intrastate switched

30  network access rate" means the composite of the originating

31  and terminating network access rate for carrier common line,

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1  local channel/entrance facility, switched common transport,

  2  access tandem switching, interconnection charge, information

  3  surcharge, and local switching.

  4         (8)  For purposes of this section, "revenue neutral"

  5  means that the total revenue within the revenue category

  6  established pursuant to this section remains the same before

  7  and after the local exchange telecommunications company

  8  implements any rate adjustments under this section.

  9  Calculation of revenue received from each service prior to

10  implementation of any rate adjustment shall be made by

11  multiplying the then-current rate for each service by the most

12  recent 12 months' actual pricing units for each service within

13  the category, without any adjustments to the number of pricing

14  units. Calculation of revenue for each service to be received

15  after implementation of rate adjustments shall be made by

16  multiplying the rate to be applicable for each service by the

17  most recent 12 months' actual pricing units for each service

18  within the category, without any adjustments to the number of

19  pricing units. Billing units associated with Lifeline

20  Assistance Plan service shall not be included in any

21  calculation under this subsection.

22         Section 4.  This act shall take effect upon becoming a

23  law.

24

25

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

27  And the title is amended as follows:

28         On page 1,

29  remove:  the entire title

30

31  and insert:

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





  1                      A bill to be entitled

  2         An act relating to switched network access

  3         rates; amending s. 364.10, F.S.; revising

  4         provisions for Lifeline Assistance Plan

  5         service; providing for certification and

  6         maintenance of claims by Office of Public

  7         Counsel; requiring certain local exchange

  8         telecommunications companies to provide

  9         specified materials relating to the plan;

10         requiring state agencies to provide such

11         material to affected applicants; exempting plan

12         beneficiaries from certain rate increases under

13         certain circumstances; providing for

14         notification; amending s. 364.163, F.S.;

15         revising provisions relating to caps on rates;

16         deleting provisions relating to recovery of

17         costs of government programs; revising

18         provisions relating to rate changes; providing

19         for adjustments in long distance revenues and

20         pass-through to customers; maintaining

21         continuing oversight by the commission;

22         creating s.364.164, F.S.; providing findings;

23         providing for petition to the commission for

24         reduction of access rates; providing for final

25         order; providing for criteria; providing for

26         establishment of revenue category mechanisms;

27         providing for notification; providing for

28         revenue neutrality; providing for notice;

29         providing limitations on adjustments; providing

30         for pricing units; maintaining exemptions;

31         providing definitions; providing an effective

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1683

    Amendment No. 01 (for drafter's use only)





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