CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
CHAMBER ACTION
Senate House
.
.
1 .
.
2 .
.
3 .
.
4 ______________________________________________________________
5
6
7
8
9
10 ______________________________________________________________
11 Senator Campbell moved the following amendment:
12
13 Senate Amendment (with title amendment)
14 Delete 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
1
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
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
2
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
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.
3
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
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
4
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
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
5
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
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 proportionally from
6
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
1 the rate decreases. Subject to the foregoing, any
2 interexchange telecommunications carrier that charges an
3 in-state connection fee shall use any decrease in the
4 intrastate switched network access rate reductions required by
5 s. 364.164 to first eliminate that fee before it reduces its
6 long distance toll rates. In any event, any in-state
7 connection fee shall be eliminated by March 1, 2004, provided
8 that the timetable approved pursuant to s. 364.164(2) reduces
9 intrastate switched network access rates in an amount that
10 results in the elimination of the access recovery charge in a
11 revenue-neutral manner. The tariff changes, if any, made by
12 the interexchange telecommunications carrier to carry out the
13 requirements of this subsection shall be presumed valid and
14 become effective on 1 day's notice.
15 (7) Telecommunications company intrastate switched
16 access and customer long distance rate reductions shall become
17 effective on October 1 of each relevant year. Rate decreases
18 proposed in tariff revisions filed by the telecommunications
19 companies with the commission shall be presumed valid and
20 become effective on October 1 of each relevant year.
21 (8) No later than 30 days after the filing of such
22 tariff, the commission may, with respect to determining the
23 correctness of any rate decrease, vote, without hearing, the
24 telecommunications company to hold subject to refund all
25 intrastate switched access or customer long distance rate
26 revenues collected after the rate decrease. Within 60 days
27 after such order, the commission must make a determination
28 either compelling a refund of the appropriate part of such
29 revenues or releasing all such revenues from such requirement.
30 (3)(9) The commission shall have continuing regulatory
31 oversight of intrastate switched network access and customer
7
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
1 long distance rates for purposes of determining the
2 correctness of any rate decrease by a telecommunications
3 company resulting from the application of this section and s.
4 364.164, and making any necessary adjustments to those rates,
5 establishing reasonable service quality criteria, and assuring
6 resolution of service complaints. Nothing in this subsection
7 shall be construed to mean that the commission does not have
8 continuing regulatory oversight of service quality criteria or
9 the authority to resolve service complaints for all
10 telecommunications companies subject to this section.
11 Section 3. Section 364.164, Florida Statutes, is
12 created to read:
13 364.164 Switched network access rate reduction.--
14 (1) The Legislature finds the following:
15 (a) Residential local exchange competition is in the
16 best interest of Florida and its telecommunications consumers;
17 (b) Residential basic local telecommunications service
18 prices are, on average, below cost, being subsidized with
19 revenues from other services including switched network access
20 charges;
21 (c) The intrastate switched network access charges
22 paid by interexchange telecommunications companies in Florida
23 are above cost and are higher than the interstate switched
24 network access charges which such companies pay to the same
25 local exchange telecommunications companies in Florida;
26 (d) The subsidization of residential basic local
27 telecommunications service prices with revenues from
28 intrastate switched network access charges is inhibiting the
29 development of residential basic local exchange service
30 competition;
31 (e) Restructuring the prices for residential basic
8
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
1 local telecommunications service and intrastate switched
2 network access closer to the cost of providing these services
3 should promote local and long distance competition; and
4 (f) The Florida Public Service Commission is the
5 appropriate body to determine whether intrastate switched
6 network access charges and basic local telecommunications
7 service prices will be adjusted in a manner which is revenue
8 neutral to the local exchange telecommunications company and
9 beneficial to residential consumers.
10 (2) Each local exchange telecommunications company
11 with more than 1 million access lines in service may, after
12 December 1, 2002, petition the commission to reduce its
13 intrastate switched network access rates in a revenue neutral
14 manner. Any local exchange telecommunications company with 1
15 million or less access lines in service may, after December 1,
16 2003, petition the commission to reduce its intrastate
17 switched network access rates in a revenue neutral manner.
18 The commission shall issue its final order granting or denying
19 any petition filed pursuant to this section within 90 days.
20 The commission shall grant the petition if it finds that
21 granting the petition:
22 (a) Will result in switched network access rate
23 reductions that will be implemented during a period to be
24 determined by the commission, but such period shall not be
25 less than 2 years or more than 5 years;
26 (b) Will benefit residential consumers by reducing or
27 eliminating the subsidy to residential basic local
28 telecommunications service rates provided by intrastate
29 switched network access rates;
30 (c) Will move intrastate switched network access rates
31 to parity;
9
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
1 (d) Will create a more favorable competitive
2 environment;
3 (e) Will be revenue neutral to the local exchange
4 telecommunications company as set forth in subsection (3); and
5 (f) Will result in benefits to toll customers.
6 (3) In the event the commission grants the local
7 exchange telecommunications company's petition, the local
8 exchange telecommunications company is authorized, the
9 requirements of s. 364.051(3) notwithstanding, to immediately
10 implement a revenue category mechanism consisting of basic
11 local telecommunications service revenues and intrastate
12 switched network access revenues, to achieve revenue
13 neutrality. The local exchange telecommunications company
14 shall thereafter, on 45 days' notice, adjust the various
15 prices and rates of the services within its revenue category
16 authorized by this section once in any 12-month period in a
17 revenue neutral manner. In no event shall any adjustment in
18 rates be offset entirely by the monthly recurring rate for
19 basic local telecommunications service. All annual rate
20 adjustments within the revenue category established pursuant
21 to this section shall be implemented simultaneously and shall
22 be revenue neutral. The commission shall, within 45 days
23 after the rate adjustment filing, issue a final order
24 confirming compliance with this section, and such order shall
25 be final for all purposes.
26 (4) Any filing under this section shall be based on
27 the company's most recent 12 months' pricing units in
28 accordance with subsection (8) for any service included in the
29 revenue category established under this section. The
30 commission shall have the authority only to verify the pricing
31 units for the purpose of ensuring that the company's specific
10
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
1 adjustments, as authorized by this section, make the revenue
2 category revenue neutral for each filing. Any discovery or
3 information requests under this section shall be limited to a
4 verification of historical pricing units necessary to fulfill
5 the commission's specific responsibilities under this section
6 of ensuring that the company's rate adjustments make the
7 revenue category revenue neutral for each annual filing.
8 (5) Nothing in this section shall affect the local
9 exchange telecommunications company's exemptions pursuant to
10 s. 364.051(1)(c) or authorize any local exchange
11 telecommunications company to increase the cost of local
12 exchange services to any person providing services under s.
13 364.3375.
14 (6) For purposes of this section, "parity" means that
15 the local exchange telecommunications company's intrastate
16 switched network access rate is equal to its interstate
17 switched network access rate in effect on January 1, 2002, if
18 the company has more than 4 million access lines in service.
19 If the company has 4 million or less and more than 1 million
20 access lines in service, "parity" means that the company's
21 intrastate switched network access rate is equal to 2 cents
22 per minute. If the company has 1 million or less access lines
23 in service, "parity" means that the company's intrastate
24 switched network access rate is equal to 8 cents per minute.
25 Nothing in this section shall prevent the company from making
26 further reductions in its intrastate switched network access
27 rate, within the revenue category established in this section,
28 below parity on a revenue-neutral basis, or from making other
29 revenue neutral rate adjustments within this category.
30 (7) For purposes of this section, "intrastate switched
31 network access rate" means the composite of the originating
11
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
1 and terminating network access rate for carrier common line,
2 local channel/entrance facility, switched common transport,
3 access tandem switching, interconnection charge, information
4 surcharge, and local switching.
5 (8) For purposes of this section, "revenue neutral"
6 means that the total revenue within the revenue category
7 established pursuant to this section remains the same before
8 and after the local exchange telecommunications company
9 implements any rate adjustments under this section.
10 Calculation of revenue received from each service prior to
11 implementation of any rate adjustment shall be made by
12 multiplying the then-current rate for each service by the most
13 recent 12 months' actual pricing units for each service within
14 the category, without any adjustments to the number of pricing
15 units. Calculation of revenue for each service to be received
16 after implementation of rate adjustments shall be made by
17 multiplying the rate to be applicable for each service by the
18 most recent 12 months' actual pricing units for each service
19 within the category, without any adjustments to the number of
20 pricing units. Billing units associated with Lifeline
21 Assistance Plan service shall not be included in any
22 calculation under this subsection.
23 Section 4. This act shall take effect upon becoming a
24 law.
25
26
27 ================ T I T L E A M E N D M E N T ===============
28 And the title is amended as follows:
29 Delete everything before the enacting clause
30
31 and insert:
12
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
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
13
12:25 PM 03/19/02 s0988c1c-33c2j
SENATE AMENDMENT
Bill No. CS for SB 988
Amendment No. ___ Barcode 254502
1 date.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
14
12:25 PM 03/19/02 s0988c1c-33c2j