HB 1903 2003
1	A bill to be entitled
2	An act relating to regulation of telecommunications
3	companies; providing a popular name; amending s. 364.01,
4	F.S.; providing legislative finding that provision of
5	unregulated voice-over-internet protocol is in the public
6	interest; amending s. 364.02, F.S.; changing the term
7	“alternative local exchange telecommunications company” to
8	“competitive local exchange telecommunications company”;
9	defining the term “intrastate interexchange
10	telecommunications company”; limiting the definition of
11	“service”; amending s. 364.025, F.S.; conforming
12	terminology; extending the time period for mandatory
13	provision of basic local exchange telecommunications
14	services within the territory of a local exchange
15	telecommunications company; extending the transitional
16	time period for the Public Service Commission’s providing
17	an interim mechanism for maintaining universal service
18	objectives; providing authority for the Public Service
19	Commission to change the mechanism upon petition during
20	such period; delaying requirement that the Legislature
21	establish a permanent mechanism; delaying date on which
22	competitive local exchange telecommunications company may
23	petition the Public Service Commission to become a
24	universal service provider and carrier of last resort;
25	amending s. 364.0361, F.S.; providing exclusivity for
26	certain regulations; amending s. 364.051, F.S.; conforming
27	terminology; providing circumstances under which certain
28	telecommunication companies may elect alternative
29	regulations; providing an exception; prohibiting an
30	increase in certain regulations on competitive local
31	exchange telecommunications companies; amending s.
32	364.052, F.S.; conforming terminology; amending s.
33	364.058, F.S.; providing for an expedited process to
34	facilitate quick resolution of disputes between
35	telecommunications companies; providing rulemaking
36	authority; creating s. 364.059, F.S.; providing procedures
37	for staying election of local exchange telecommunications
38	companies to be subject to alternative regulations;
39	requiring the Public Service Commission to provide
40	benchmarks and criteria for granting stays; providing
41	rulemaking authority; amending s. 364.10, F.S.; requiring
42	certain local exchange telecommunications companies to
43	provide Lifeline services to certain persons; providing
44	for eligibility determinations by the Public Counsel for
45	receipt of such services; prohibiting rate increases for
46	basic local telecommunications services provided to such
47	eligible persons; requiring distribution of certain
48	materials; requiring annual reports; amending ss. 364.16,
49	364.161, and 364.162, F.S.; conforming terminology;
50	amending s. 364.163, F.S.; deleting obsolete language;
51	changing period in which intrastate access rates are
52	capped; removing limitations on certain rate increases;
53	eliminating certain fees; providing presumption of
54	validity for certain tariff changes made by intrastate
55	interexchange telecommunications companies; creating s.
56	364.164, F.S.; authorizing local exchange
57	telecommunications companies to petition the Public
58	Service Commission for reduction of intrastate network
59	access rates under certain circumstances; requiring
60	revenue neutrality; providing criteria for the commission
61	to consider; amending s. 364.337, F.S.; conforming
62	terminology; amending s. 364.3376, F.S.; eliminating the
63	requirement that intrastate interexchange
64	telecommunications companies obtain a certificate of
65	public convenience prior to providing operator services;
66	amending ss. 364.502 and 365.172, F.S.; conforming
67	terminology; amending ss. 196.012, 199.183, 212.08,
68	290.007, 350.0605, 364.602, and 489.103, F.S.; correcting
69	cross references to s. 364.02, F.S.; providing an
70	effective date.
71
72	Be It Enacted by the Legislature of the State of Florida:
73
74	Section 1. This act may be known by the popular name the
75	“Tele-Competition Innovation and Infrastructure Enhancement Act
76	of 2003.”
77	Section 2. Subsection (3) of section 364.01, Florida
78	Statutes, is amended to read:
79	364.01 Powers of commission, legislative intent.--
80	(3) The Legislature finds that the competitive provision
81	of telecommunications services, including local exchange
82	telecommunications service, is in the public interest and will
83	provide customers with freedom of choice, encourage the
84	introduction of new telecommunications service, encourage
85	technological innovation, and encourage investment in
86	telecommunications infrastructure. The Legislature further finds
87	that the transition from the monopoly provision of local
88	exchange service to the competitive provision thereof will
89	require appropriate regulatory oversight to protect consumers
90	and provide for the development of fair and effective
91	competition, but nothing in this chapter shall limit the
92	availability to any party of any remedy under state or federal
93	antitrust laws. The Legislature further finds that changes in
94	regulations allowing increased competition in telecommunications
95	services could provide the occasion for increases in the
96	telecommunications workforce; therefore, it is in the public
97	interest that competition in telecommunications services lead to
98	a situation that enhances the high-technological skills and the
99	economic status of the telecommunications workforce. The
100	Legislature further finds that the provision of voice-over-
101	internet protocol (VOIP) free of unnecessary regulation,
102	regardless of the provider, is in the public interest.
103	Section 3. Section 364.02, Florida Statutes, is amended to
104	read:
105	364.02 Definitions.--As used in this chapter:
106	(1)(2)“Basic local telecommunications service” means
107	voice-grade, flat-rate residential, and flat-rate single-line
108	business local exchange services which provide dial tone, local
109	usage necessary to place unlimited calls within a local exchange
110	area, dual tone multifrequency dialing, and access to the
111	following: emergency services such as “911,” all locally
112	available interexchange companies, directory assistance,
113	operator services, relay services, and an alphabetical directory
114	listing. For a local exchange telecommunications company, such
115	term shall include any extended area service routes, and
116	extended calling service in existence or ordered by the
117	commission on or before July 1, 1995.
118	(2)(3)“Commercial mobile radio service provider” means a
119	commercial mobile radio service provider as defined by and
120	pursuant to 47 U.S.C. ss. 153(n) and 332(d).
121	(3)(4)“Commission” means the Florida Public Service
122	Commission.
123	(4)(1) “CompetitiveAlternativelocal exchange
124	telecommunications company” means any company certificated by
125	the commission to provide local exchange telecommunications
126	services in this state on or after July 1, 1995.
127	(5) “Corporation” includes a corporation, company,
128	association, or joint stock association.
129	(6) “Intrastate interexchange telecommunications company”
130	means any entity that provides intrastate interexchange
131	telecommunications services.
132	(7)(6)“Local exchange telecommunications company” means
133	any company certificated by the commission to provide local
134	exchange telecommunications service in this state on or before
135	June 30, 1995.
136	(8)(7)“Monopoly service” means a telecommunications
137	service for which there is no effective competition, either in
138	fact or by operation of law.
139	(9)(8)“Nonbasic service” means any telecommunications
140	service provided by a local exchange telecommunications company
141	other than a basic local telecommunications service, a local
142	interconnection arrangement described in s. 364.16, or a network
143	access service described in s. 364.163.
144	(10)(9)“Operator service” includes, but is not limited
145	to, billing or completion of third-party, person-to-person,
146	collect, or calling card or credit card calls through the use of
147	a live operator or automated equipment.
148	(11)(10)“Operator service provider” means a person who
149	furnishes operator service through a call aggregator.
150	(12)(11)“Service” is to be construed in its broadest and
151	most inclusive sense. The term “service” does not include voice-
152	over-internet protocol service for purposes of regulation by the
153	commission. Nothing herein shall affect the rights and
154	obligations of any entity related to the payment of switched
155	network access rates or other intercarrier compensation, if any,
156	related to voice-over-internet protocol service.
157	(13)(12)“Telecommunications company” includes every
158	corporation, partnership, and person and their lessees,
159	trustees, or receivers appointed by any court whatsoever, and
160	every political subdivision in the state, offering two-way
161	telecommunications service to the public for hire within this
162	state by the use of a telecommunications facility. The term
163	“telecommunications company” does not include:
164	(a) An entity which provides a telecommunications facility
165	exclusively to a certificated telecommunications company;
166	(b) An entity which provides a telecommunications facility
167	exclusively to a company which is excluded from the definition
168	of a telecommunications company under this subsection;
169	(c) A commercial mobile radio service provider;
170	(d) A facsimile transmission service;
171	(e) A private computer data network company not offering
172	service to the public for hire; or
173	(f) A cable television company providing cable service as
174	defined in 47 U.S.C. s. 522; or.
175	(g) An intrastate interexchange telecommunications
176	company.
177
178	However, each commercial mobile radio service provider and each
179	intrastate interexchange telecommunications companyshall
180	continue to be liable for any taxes imposed pursuant to chapters
181	202, 203, and 212 and any fees assessed pursuant to ss.s.
182	364.025 and 364.336. Each intrastate interexchange
183	telecommunications company shall continue to be subject to ss.
184	364.04, 364.10(3)(a) and (d), 364.163, 364.285, 364.501,
185	364.603, and 364.604, shall provide the commission with such
186	current information as the commission deems necessary to contact
187	and communicate with the company, shall continue to pay
188	intrastate switched network access rates or other intercarrier
189	compensation to the local exchange telecommunications company or
190	the competitive local exchange telecommunications company for
191	the origination and termination of interexchange
192	telecommunications service, and shall reduce its intrastate long
193	distance toll rates in accordance with s. 364.163(2).
194	(14)(13)“Telecommunications facility” includes real
195	estate, easements, apparatus, property, and routes used and
196	operated to provide two-way telecommunications service to the
197	public for hire within this state.
198	Section 4. Section 364.025, Florida Statutes, is amended
199	to read:
200	364.025 Universal service.--
201	(1) For the purposes of this section, the term "universal
202	service" means an evolving level of access to telecommunications
203	services that, taking into account advances in technologies,
204	services, and market demand for essential services, the
205	commission determines should be provided at just, reasonable,
206	and affordable rates to customers, including those in rural,
207	economically disadvantaged, and high-cost areas. It is the
208	intent of the Legislature that universal service objectives be
209	maintained after the local exchange market is opened to
210	competitively provided services. It is also the intent of the
211	Legislature that during this transition period the ubiquitous
212	nature of the local exchange telecommunications companies be
213	used to satisfy these objectives. UntilFor a period of 8 years
214	after January 1, 20091996, each local exchange
215	telecommunications company shall be required to furnish basic
216	local exchange telecommunications service within a reasonable
217	time period to any person requesting such service within the
218	company's service territory.
219	(2) The Legislature finds that each telecommunications
220	company should contribute its fair share to the support of the
221	universal service objectives and carrier-of-last-resort
222	obligations. For a transitional period not to exceed January 1,
223	20092004, the interim mechanism for maintaining universal
224	service objectives and funding carrier-of-last-resort
225	obligations shall be established by the commission, pending the
226	implementation of a permanent mechanism. The interim mechanism
227	shall be applied in a manner that ensures that each competitive
228	alternativelocal exchange telecommunications company
229	contributes its fair share to the support of universal service
230	and carrier-of-last-resort obligations. The interim mechanism
231	applied to each competitivealternativelocal exchange
232	telecommunications company shall reflect a fair share of the
233	local exchange telecommunications company's recovery of
234	investments made in fulfilling its carrier-of-last-resort
235	obligations, and the maintenance of universal service
236	objectives. The commission shall ensure that the interim
237	mechanism does not impede the development of residential
238	consumer choice or create an unreasonable barrier to
239	competition. In reaching its determination, the commission shall
240	not inquire into or consider any factor that is inconsistent
241	with s. 364.051(1)(c). The costs and expenses of any government
242	program or project required in part II of this chapter shall not
243	be recovered under this section.
244	(3) In the event any party, prior to January 1, 20092004,
245	believes that circumstances have changed substantially to
246	warrant a change in the interim mechanism, that party may
247	petition the commission for a change, but the commission shall
248	grant such petition only after an opportunity for a hearing and
249	a compelling showing of changed circumstances, including that
250	the provider's customer population includes as many residential
251	as business customers. The commission shall act on any such
252	petition within 120 days.
253	(4)(a) Prior to January 1, 20092004, the Legislature
254	shall establish a permanent universal service mechanism upon the
255	effective date of which any interim recovery mechanism for
256	universal service objectives or carrier-of-last-resort
257	obligations imposed on competitivealternativelocal exchange
258	telecommunications companies shall terminate.
259	(b) To assist the Legislature in establishing a permanent
260	universal service mechanism, the commission, by February 15,
261	1999, shall determine and report to the President of the Senate
262	and the Speaker of the House of Representatives the total
263	forward-looking cost, based upon the most recent commercially
264	available technology and equipment and generally accepted design
265	and placement principles, of providing basic local
266	telecommunications service on a basis no greater than a wire
267	center basis using a cost proxy model to be selected by the
268	commission after notice and opportunity for hearing.
269	(c) In determining the cost of providing basic local
270	telecommunications service for small local exchange
271	telecommunications companies, which serve less than 100,000
272	access lines, the commission shall not be required to use the
273	cost proxy model selected pursuant to paragraph (b) until a
274	mechanism is implemented by the Federal Government for small
275	companies, but no sooner than January 1, 2001. The commission
276	shall calculate a small local exchange telecommunications
277	company's cost of providing basic local telecommunications
278	services based on one of the following options:
279	1. A different proxy model; or
280	2. A fully distributed allocation of embedded costs,
281	identifying high-cost areas within the local exchange area the
282	company serves and including all embedded investments and
283	expenses incurred by the company in the provision of universal
284	service. Such calculations may be made using fully distributed
285	costs consistent with 47 C.F.R. parts 32, 36, and 64. The
286	geographic basis for the calculations shall be no smaller than a
287	census block group.
288	(5) After January 1, 2001, a competitivean alternative
289	local exchange telecommunications company may petition the
290	commission to become the universal service provider and carrier
291	of last resort in areas requested to be served by that
292	competitivealternativelocal exchange telecommunications
293	company. Upon petition of a competitivean alternativelocal
294	exchange telecommunications company, the commission shall have
295	120 days to vote on granting in whole or in part or denying the
296	petition of the competitivealternativelocal exchange company.
297	The commission may establish the competitivealternativelocal
298	exchange telecommunications company as the universal service
299	provider and carrier of last resort, provided that the
300	commission first determines that the competitivealternative
301	local exchange telecommunications company will provide high-
302	quality, reliable service. In the order establishing the
303	competitivealternativelocal exchange telecommunications
304	company as the universal service provider and carrier of last
305	resort, the commission shall set the period of time in which
306	such company must meet those objectives and obligations and
307	shall set up any mechanism needed to aid such company in
308	carrying out these duties.
309	Section 5. Section 364.0361, Florida Statutes, is amended
310	to read:
311	364.0361 Local government authority; nondiscriminatory
312	exercise.--A local government shall treat each
313	telecommunications company in a nondiscriminatory manner when
314	exercising its authority to grant franchises to a
315	telecommunications company or to otherwise establish conditions
316	or compensation for the use of rights-of-way or other public
317	property by a telecommunications company. No local government
318	shall have the authority to directly or indirectly regulate the
319	terms and conditions, including, but not limited to, the
320	operating systems, qualifications, services, service quality,
321	service territory, and prices, applicable to or in connection
322	with the provision of any broadband or information service.
323	Nothing herein relieves any provider from any obligations under
324	s. 166.046 or s. 337.401.
325	Section 6. Paragraph (a) of subsection (1) and subsection
326	(3) of section 364.051, Florida Statutes, are amended, and new
327	subsections (6), (7), and (8) are added to said section, to
328	read:
329	364.051 Price regulation.--
330	(1) SCHEDULE.--Notwithstanding any other provisions of
331	this chapter, the following local exchange telecommunications
332	companies shall become subject to the price regulation described
333	in this section on the following dates:
334	(a) For a local exchange telecommunications company with
335	100,000 or more access lines in service as of July 1, 1995, such
336	company may file with the commission a notice of election to be
337	under price regulation effective January 1, 1996, or when a
338	competitivean alternativelocal exchange telecommunications
339	company is certificated to provide local exchange
340	telecommunications services in its service territory, whichever
341	is later.
342	(3) In the event that it is determined that the level of
343	competition justifies the elimination of price caps in an
344	exchange served by a local exchange telecommunications company
345	with less than 3 million basic local telecommunications service
346	access lines in service, or at the end of 5 years for any local
347	exchange telecommunications company, the local exchange
348	telecommunications company may thereafter on 30 days' notice
349	adjust its basic service revenuespricesonce in any 12-month
350	period in an amount not to exceed the change in inflation less 1
351	percent. Inflation shall be measured by the changes in the Gross
352	Domestic Product Fixed 1987 Weights Price Index, or successor
353	fixed weight price index, published in the Survey of Current
354	Business or a publication, by the United States Department of
355	Commerce. In the event any local exchange telecommunications
356	company, after January 1, 2001, believes that the level of
357	competition justifies the elimination of any form of price
358	regulation, the company may petition the Legislature.
359	(6) At such time that a local exchange telecommunications
360	company with more than 1 million access lines in service has
361	reduced its intrastate switched network access rates to parity,
362	as defined in s. 364.164(5), such local exchange
363	telecommunications company’s basic local telecommunications
364	service may, at the company’s election, thereafter be subject to
365	the same regulatory treatment as its nonbasic services. The
366	company’s retail service quality requirements that are not
367	already equal to the service quality requirements imposed upon
368	the competitive local exchange telecommunications companies
369	shall thereafter be no greater than those imposed upon
370	competitive local exchange telecommunications companies, unless
371	the commission, within 120 days after the company’s election,
372	determines otherwise. In such event, the commission may grant
373	some reductions in service quality requirements and in some or
374	all of the company’s local calling areas. In no event shall the
375	commission impose retail service quality requirements on
376	competitive local exchange telecommunications companies greater
377	than existed on January 1, 2003.
378	(7) In the event that a local exchange telecommunications
379	company elects, pursuant to subsection (6), to subject its
380	retail basic local telecommunications services to the same
381	regulatory treatment as its nonbasic services, such local
382	exchange telecommunications company may thereafter petition the
383	commission for regulatory treatment of its retail services at a
384	level no greater than that imposed by the commission upon
385	competitive local exchange telecommunications companies. The
386	local exchange telecommunications company shall:
387	(a) Show that granting the petition is in the public
388	interest.
389	(b) Reduce its intrastate switched network access rates to
390	its local reciprocal interconnection rate upon the grant of the
391	petition.
392
393	The commission shall act upon such petition within 9 months
394	after its filing with the commission. In making its
395	determination to either grant or deny the petition, the
396	commission shall determine the extent to which the level of
397	competition faced by the local exchange telecommunications
398	company permits, and will continue to permit, the company to
399	have its retail services regulated no differently than the
400	competitive local exchange telecommunications companies are then
401	being regulated. In no event shall the commission increase the
402	level of regulation for competitive local exchange
403	telecommunications companies greater than that which exists on
404	the date the local exchange telecommunications company files its
405	petition.
406	(8) The provisions described in subsections (6) and (7)
407	shall apply to any local exchange telecommunications company
408	with 1 million or less access lines in service that has reduced
409	its intrastate switched network access rates to a level equal to
410	the company’s interstate switched network access rates in effect
411	on January 1, 2003.
412	Section 7. Subsections (2), (3), and (4) of section
413	364.052, Florida Statutes, are amended to read:
414	364.052 Regulatory methods for small local exchange
415	telecommunications companies.--
416	(2) A small local exchange telecommunications company
417	shall remain under rate base, rate of return regulation until
418	the company elects to become subject to s. 364.051, or January
419	1, 2001, whichever occurs first. A company subject to this
420	section, electing to be regulated pursuant to s. 364.051, will
421	have any overearnings attributable to a period prior to the date
422	on which the company makes the election subject to refund or
423	other disposition by the commission. Small local exchange
424	telecommunications companies not electing the price regulation
425	provided for under s. 364.051 shall also be regulated pursuant
426	to ss. 364.03, 364.035(1) and (2), 364.05, and 364.055 and other
427	provisions necessary for rate base, rate of return regulation.
428	If a small local exchange telecommunications company has not
429	elected to be regulated under s. 364.051, by January 1, 2001,
430	the company shall remain under rate base, rate of return
431	regulation until such time as a certificated competitive
432	alternativelocal exchange company provides basic local
433	telecommunications service in the company's territory. At such
434	time, the small local exchange telecommunications company shall
435	be subject to s. 364.051.
436	(a) The commission shall establish, by rule, ranges of
437	basic factors for lives and salvage values to be used in
438	developing depreciation rates for companies subject to this
439	section. Companies shall have the option of using basic factors
440	within the established ranges or of filing depreciation studies.
441	(b) The commission shall adopt, by rule, streamlined
442	procedures for regulating companies subject to this section.
443	These procedures shall minimize the burdens of regulation with
444	regard to audits, investigations, service standards, cost
445	studies, reports, and other matters, and the commission shall
446	establish, by rule, only those procedures that are cost-
447	justified and are in the public interest so that universal
448	service may be promoted. Upon petition filed in this rulemaking
449	proceeding, the commission shall review and may approve any
450	regulations unique to the specific circumstances of a company
451	subject to this section.
452	(3) A company subject to this section may at any time
453	after January 1, 1996, elect to be regulated pursuant to s.
454	364.051. If such a company so elects or provides cable
455	television programming services directly or as video dial tone
456	applications authorized under 47 U.S.C. s. 214, except as
457	provided for in compliance with part II of this chapter, a
458	certificated competitivealternativelocal exchange company may
459	provide local exchange telecommunications services within the
460	territory of the electing company.
461	(4) Any competitivealternativelocal exchange
462	telecommunications company competing within the territory of any
463	small local exchange telecommunications company must do so on an
464	exchange-wide basis for the provision of flat-rated, switched
465	residential and business local exchange telecommunications
466	services in all exchanges in which they elect to serve, unless
467	the commission determines otherwise. The competitivealternative
468	local exchange telecommunications company may petition and the
469	commission has the authority to determine that it is in the
470	public interest for a competitivean alternativelocal exchange
471	telecommunications company to service a geographic territory
472	that is less than an entire exchange.
473	Section 8. Subsection (3) is added to section 364.058,
474	Florida Statutes, to read:
475	364.058 Limited proceedings.--
476	(3) The commission shall implement an expedited process to
477	facilitate the quick resolution of disputes between
478	telecommunications companies. The process implemented by the
479	commission shall, to the extent feasible, minimize the time
480	necessary to reach a decision on a dispute. The commission may
481	limit the use of the expedited process based on the number of
482	parties, the number of issues, or the complexity of issues. For
483	any proceeding conducted pursuant to the expedited process, the
484	commission shall make its determination within 120 days after a
485	petition is filed or a motion is made. The commission shall
486	adopt rules to implement this subsection.
487	Section 9. Section 364.059, Florida Statutes, is created
488	to read:
489	364.059 Procedures for seeking stay; benchmark;
490	criteria.--
491	(1) At such time that a local exchange telecommunications
492	company has elected, pursuant to s. 364.051(6), to have its
493	basic local telecommunications services treated the same as its
494	nonbasic services, the following procedures shall be available:
495	(a) Any petition filed by a substantially interested party
496	against a local exchange telecommunications company seeking a
497	stay of the effective date of a price reduction for a basic
498	local telecommunications service, alleging an anticompetitive
499	price reduction pursuant to s. 364.051(5), s. 364.08, s. 364.09,
500	s. 364.10, or s. 364.3381, shall be resolved by the commission
501	pursuant to this section and by an order issued within 45 days
502	after the date the petition is filed.
503	(b) The petitioner shall provide such showing as is
504	required by law for a temporary injunction, and the local
505	exchange telecommunications company shall have 7 days within
506	which to respond to the petition.
507	(c) Nothing contained herein shall prevent the local
508	exchange telecommunications company from raising any affirmative
509	defenses provided by law.
510	(d) No stay shall be granted until the commission has
511	voted on the petition after an opportunity for oral argument.
512	(e) If the commission grants a stay, the stay shall not
513	exceed 45 days and the commission shall make a determination on
514	the merits within the 45-day period, unless the commission
515	extends this time period, not to exceed 15 days, based on a
516	delay in the availability of relevant cost studies and
517	supporting documents.
518	(f) In the event the commission denies a stay, nothing
519	herein prevents the petitioner from filing allegations of
520	anticompetitive price reductions as otherwise provided by law.
521	(g) The petitioner shall have the burden of proof that a
522	statutory violation has occurred, but the commission and the
523	petitioner shall have access, pursuant to s. 364.183, to the
524	local exchange telecommunications company’s relevant cost
525	studies and supporting documents.
526	(h) The commission shall reject any petition within 15
527	days after filing if the local exchange telecommunications
528	company challenges, and the commission determines, that the
529	petition on its face alleges the same violations and the same
530	facts that have previously been resolved against the petitioner.
531	(2) For purposes of carrying out the procedures set forth
532	in subsection (1), the commission shall establish an objective
533	benchmark, such as a price or cost floor, by which the
534	commission may determine whether a requested stay of a basic
535	local telecommunications service price reduction is warranted.
536	Such benchmark shall be based upon generally accepted economic
537	costing and pricing principles and judicial or regulatory
538	costing and pricing precedent. The commission shall also
539	establish the criteria for determining on the merits whether the
540	basic local telecommunications service price reduction is in
541	fact anticompetitive. Such criteria shall be based upon
542	generally accepted economic competitive costing and pricing
543	principles and judicial or regulatory precedent for detecting
544	the presence of anticompetitive pricing. In no event, however,
545	shall the commission establish benchmarks or criteria that are
546	inconsistent with or interfere with the competitive pricing
547	conduct permitted by existing law. The commission shall
548	establish the benchmark and criteria by rule, which rule
549	adoption proceeding shall commence no earlier than January 1,
550	2005, and a final order shall issue within 120 days after
551	commencement. Such benchmarks and criteria shall in any event be
552	available when subsection (1) becomes effective. In the event
553	that the provisions of s. 364.164(8) become operative, the
554	commission shall immediately commence establishment of the
555	benchmark and criteria required for the procedures set forth in
556	subsection (1) and this subsection, but nothing herein shall
557	prevent or delay a local exchange telecommunications company
558	from making and implementing the election provided for in s.
559	364.051(6).
560	Section 10. Subsection (3) is added to section 364.10,
561	Florida Statutes, to read:
562	364.10 Undue advantage to person or locality prohibited;
563	exception.--
564	(3)(a) Effective September 1, 2003, any local exchange
565	telecommunications company authorized by the commission to
566	reduce its switched network access rate pursuant to s. 364.164
567	shall have tariffed and shall provide Lifeline service to any
568	otherwise eligible customer or potential customer who meets an
569	income eligibility test at 125 percent or less of the federal
570	poverty income guidelines for Lifeline customers. Such test for
571	eligibility shall augment, rather than replace, the eligibility
572	standards established by federal law and based on participation
573	in certain low-income assistance programs. Each intrastate
574	interexchange telecommunications company shall, effective
575	September 1, 2003, file a tariff providing at a minimum the
576	intrastate interexchange telecommunications carrier’s current
577	Lifeline benefits and exemptions to Lifeline customers who meet
578	the income eligibility test set forth in this subsection. The
579	Office of Public Counsel shall serve as the state agency that
580	certifies and maintains claims submitted by a customer for
581	eligibility under the income test authorized by this subsection.
582	(b) Each local exchange telecommunications company subject
583	to this subsection shall provide to each state and federal
584	agency providing benefits to persons eligible for Lifeline
585	service applications, brochures, pamphlets, or other materials
586	that inform such persons of their eligibility for Lifeline, and
587	each state agency providing such benefits shall furnish the
588	materials to affected persons at the time they apply for
589	benefits.
590	(c) Any local exchange telecommunications company customer
591	receiving Lifeline benefits shall not be subject to any
592	residential basic local telecommunications service rate
593	increases authorized by s. 364.164 until such time as the local
594	exchange telecommunications company reaches parity as defined in
595	s. 364.164(5) or until the customer no longer qualifies for the
596	Lifeline benefits established by this section or s. 364.105, or
597	unless otherwise determined by the commission upon petition by a
598	local exchange telecommunications company.
599	(d) By December 31, 2003, each state agency that provides
600	benefits to persons eligible for Lifeline service shall
601	undertake, in cooperation with the Department of Children and
602	Family Services, the commission, and telecommunications
603	companies providing Lifeline services, the development of
604	procedures to promote Lifeline participation.
605	(e) The commission shall report to the Governor, the
606	Speaker of the House of Representatives, and the President of
607	the Senate by December 31 each year on the number of customers
608	who are subscribing to Lifeline service and the effectiveness of
609	any processes to promote participation.
610	Section 11. Subsection (2), paragraph (a) of subsection
611	(3), and subsection (5) of section 364.16, Florida Statutes, are
612	amended to read:
613	364.16 Connection of lines and transfers; local
614	interconnection; telephone number portability.--
615	(2) Each competitivealternativelocal exchange
616	telecommunications company shall provide access to, and
617	interconnection with, its telecommunications services to any
618	other provider of local exchange telecommunications services
619	requesting such access and interconnection at nondiscriminatory
620	prices, terms, and conditions. If the parties are unable to
621	negotiate mutually acceptable prices, terms, and conditions
622	after 60 days, either party may petition the commission and the
623	commission shall have 120 days to make a determination after
624	proceeding as required by s. 364.162(2) pertaining to
625	interconnection services.
626	(3) Each local exchange telecommunications company shall
627	provide access to, and interconnection with, its
628	telecommunications facilities to any other provider of local
629	exchange telecommunications services requesting such access and
630	interconnection at nondiscriminatory prices, rates, terms, and
631	conditions established by the procedures set forth in s.
632	364.162.
633	(a) No local exchange telecommunications company or
634	competitivealternativelocal exchange telecommunications
635	company shall knowingly deliver traffic, for which terminating
636	access service charges would otherwise apply, through a local
637	interconnection arrangement without paying the appropriate
638	charges for such terminating access service.
639	(5) When requested, each certificated telecommunications
640	company shall provide access to any poles, conduits, rights-of-
641	way, and like facilities that it owns or controls to any local
642	exchange telecommunications company or competitivealternative
643	local exchange telecommunications company pursuant to reasonable
644	rates and conditions mutually agreed to which do not
645	discriminate between similarly situated companies.
646	Section 12. Subsections (3) and (4) of section 364.161,
647	Florida Statutes, are amended to read:
648	364.161 Unbundling and resale.--
649	(3) Only after a competitivean alternativelocal exchange
650	telecommunications company has been determined to be a carrier
651	of last resort shall such company, upon request by another
652	telecommunications provider, be required, for purposes of
653	resale, to unbundle its local exchange services, network
654	features, functions and capabilities, including its local loop,
655	to the extent such unbundling is technically and economically
656	feasible. The parties shall negotiate the terms, conditions, and
657	prices of any feasible unbundling request. If the parties cannot
658	reach a satisfactory resolution within 60 days, either party may
659	petition the commission to arbitrate the dispute and the
660	commission shall make a determination within 120 days. The
661	prices shall not be below cost.
662	(4) A local exchange telecommunications company shall
663	provide unbundled network elements, services for resale,
664	requested repairs, and necessary support services in a timely
665	manner. The Public Service Commission shall maintain a file of
666	all complaints by competitivealternativelocal exchange
667	telecommunications companies against local exchange
668	telecommunications companies regarding timeliness and adequacy
669	of service. This information, including how and when each
670	complaint was resolved, shall be included with the commission's
671	annual report to the Legislature on competition.
672	Section 13. Subsection (1) of section 364.162, Florida
673	Statutes, is amended to read:
674	364.162 Negotiated prices for interconnection and for the
675	resale of services and facilities; commission rate setting.--
676	(1) A competitiveAn alternativelocal exchange
677	telecommunications company shall have 60 days from the date it
678	is certificated to negotiate with a local exchange
679	telecommunications company mutually acceptable prices, terms,
680	and conditions of interconnection and for the resale of services
681	and facilities. If a negotiated price is not established after
682	60 days, either party may petition the commission to establish
683	nondiscriminatory rates, terms, and conditions of
684	interconnection and for the resale of services and facilities.
685	The commission shall have 120 days to make a determination after
686	proceeding as required by subsection (2). Whether set by
687	negotiation or by the commission, interconnection and resale
688	prices, rates, terms, and conditions shall be filed with the
689	commission before their effective date. The commission shall
690	have the authority to arbitrate any dispute regarding
691	interpretation of interconnection or resale prices and terms and
692	conditions.
693	Section 14. Section 364.163, Florida Statutes, is amended
694	to read:
695	364.163 Network access services.--For purposes of this
696	section, "network access service" is defined as any service
697	provided by a local exchange telecommunications company to a
698	telecommunications company certificated under this chapter or
699	licensed by the Federal Communications Commission to access the
700	local exchange telecommunications network, excluding the local
701	interconnection arrangements in s. 364.16 and the resale
702	arrangements in s. 364.161. Each local exchange
703	telecommunications company subject to s. 364.051 shall maintain
704	tariffs with the commission containing the terms, conditions,
705	and rates for each of its network access services.
706	(1) Effective January 1, 1999, the rates for switched
707	network access services of each company subject to this section
708	shall be capped at the rates in effect on January 1, 1999, and
709	shall remain capped until January 1, 2001. Upon the date of
710	filing its election with the commission, the network access
711	service rates of a company that elects to become subject to this
712	section shall be capped at the rates in effect on that date and
713	shall remain capped for 5 years.
714	(1)(2) After the termination of the caps imposed on rates
715	by subsection (1) and aftera local exchange telecommunications
716	company's intrastate switched network access rates are reduced
717	to or belowreach parity, as defined in s. 364.164(5), the
718	company’s intrastate switched network access rates shall be and
719	shall remain capped for 3 years thereafterwith its interstate
720	switched access rates, a company subject to this section may, on
721	30 days' notice, annually adjust any specific network access
722	service rate in an amount not to exceed the cumulative change in
723	inflation experienced after the date of the last adjustment,
724	provided, however, that no such adjustment shall ever exceed 3
725	percent annually of the then-current prices. Inflation shall be
726	measured by the changes in Gross Domestic Product Fixed 1987
727	Weights Price Index, or successor fixed weight price index,
728	published in the Survey of Current Business, or successor
729	publication, by the United States Department of Commerce.
730	(3) After the termination of the caps imposed on rates by
731	subsection (1), a company subject to this section may, at any
732	time, petition the commission for a network access service rate
733	change to recover the cost of governmentally mandated projects
734	or programs or an increase in federal or state income tax
735	incurred after that date. The costs and expenses of the
736	government program or project required in part II of this
737	chapter shall not be recovered under this subsection unless such
738	costs and expenses are incurred in the absence of a bid and
739	subject to carrier of last resort obligations as provided for in
740	part II of this chapter. With respect to governmentally mandated
741	projects and programs, such petition shall be acted upon no
742	later than 90 days after the date of filing. A company subject
743	to this section shall show the commission that the cost of a
744	project or program is not recoverable either from the government
745	mandating the project or program or from the beneficiaries of
746	the project or program through user fees or other new revenue
747	sources from the project or program, and to the extent that cost
748	decreases resulting from the project or program are reflected as
749	an offset to cost increases. A company subject to this section
750	shall decrease its network access rates by amounts that reflect
751	any federal or state income tax reduction. Nothing contained in
752	this section shall allow any revisions in the rates, terms, and
753	conditions for commercial mobile radio service access, which
754	revisions are inconsistent with the requirements or
755	methodologies of the Federal Communications Commission.
756	(4) A company subject to this section may choose to
757	implement all or a portion of a rate increase allowed for
758	network access service by subsections (1), (2), and (3).
759	Notwithstanding subsections (1), (2), and (3), a company subject
760	to this section may choose to decrease network service rates at
761	any time, and decreased rates shall become effective upon 7
762	days' notice.
763	(5) Company-proposed changes to the terms and conditions
764	for existing network access services in accordance with
765	subsections (1), (2), (3), and (4) shall be presumed valid and
766	become effective upon 15 days' notice. Company-proposed rate
767	reductions shall become effective upon 7 days' notice. Rate
768	increases made by the local exchange telecommunications company
769	shall be presumed valid and become effective on the date
770	specified in the tariff, but in no event earlier than 30 days
771	after the filing of such tariff. The commission shall have
772	continuing regulatory oversight of local exchange
773	telecommunications company-provided network access services for
774	purposes of determining the correctness of any price increase
775	resulting from the application of the inflation index and making
776	any necessary adjustments, establishing reasonable service
777	quality criteria, and assuring resolution of service complaints.
778	No later than 30 days after the filing of such tariff, the
779	commission may, with respect to determining the correctness of
780	any price increase, vote, without hearing, the local exchange
781	telecommunications company to hold subject to refund all
782	revenues collected under the rate increase. Within 60 days after
783	such order, the commission must make a determination either
784	compelling a refund of all or part of such revenues or releasing
785	them from such requirement.
786	(2)(6) Any local exchange telecommunications company with
787	more than 100,000, but fewer than 3 million, basic local
788	telecommunications service access lines in service on July 1,
789	1995, shall reduce its intrastate switched access rates by 5
790	percent on July 1, 1998, and by 10 percent on October 1, 1998.
791	Any intrastateinterexchange telecommunications company whose
792	intrastate switched networkaccess rate is reduced as a result
793	of the rate adjustmentsdecreasesmade by a local exchange
794	telecommunications company in accordance with s. 364.164this
795	subsection shall decrease its intrastate long distance revenues
796	ratesby the amount necessary to return the benefits of such
797	reduction to both its residential and business customers but
798	shall not reduce per minute intra-LATA toll rates by a
799	percentage greater than the per minute intrastate switched
800	access rate reductions required by this act. The intrastate
801	interexchange telecommunications companycarriermay determine
802	the specific intrastate rates to be decreased, provided that
803	residential and business customers benefit from the rate
804	decreases. Any in-state connection fee or similarly named fee
805	shall be eliminated by July 1, 2006, provided that the timetable
806	determined pursuant to s. 364.164(1) reduces intrastate switched
807	network access rates in an amount that results in the
808	elimination of such fee in a revenue-neutral manner. The tariff
809	changes, if any, made by the intrastate interexchange
810	telecommunications company to carry out the requirements of this
811	subsection shall be presumed valid and become effective on 1
812	day’s notice.
813	(7) Telecommunications company intrastate switched access
814	and customer long distance rate reductions shall become
815	effective on October 1 of each relevant year. Rate decreases
816	proposed in tariff revisions filed by the telecommunications
817	companies with the commission shall be presumed valid and become
818	effective on October 1 of each relevant year.
819	(8) No later than 30 days after the filing of such tariff,
820	the commission may, with respect to determining the correctness
821	of any rate decrease, vote, without hearing, the
822	telecommunications company to hold subject to refund all
823	intrastate switched access or customer long distance rate
824	revenues collected after the rate decrease. Within 60 days after
825	such order, the commission must make a determination either
826	compelling a refund of the appropriate part of such revenues or
827	releasing all such revenues from such requirement.
828	(3)(9)The commission shall have continuing regulatory
829	oversight of intrastate switched networkaccess and customer
830	long distance rates for purposes of determining the correctness
831	of any rate decrease by a telecommunications company resulting
832	from the application of s. 364.164this sectionand making any
833	necessary adjustments to those rates, establishing reasonable
834	service quality criteria, and assuring resolution of service
835	complaints.
836	Section 15. Section 364.164, Florida Statutes, is created
837	to read:
838	364.164 Competitive market enhancement.--
839	(1) Each local exchange telecommunications company may,
840	after July 1, 2003, petition the commission to reduce its
841	intrastate switched network access rate in a revenue-neutral
842	manner. The commission shall issue its final order granting or
843	denying any petition filed pursuant to this section within 90
844	days. In reaching its decision, the commission shall consider
845	whether granting the petition:
846	(a) Will remove current support for basic local
847	telecommunications services that prevents the creation of a more
848	attractive competitive local exchange market for the benefit of
849	residential consumers.
850	(b) Will induce enhanced market entry.
851	(c) Will require intrastate switched network access rate
852	reductions to parity over a period of not less than 2 years or
853	more than 4 years.
854	(d) Will be revenue neutral as defined in subsection (7)
855	within the revenue category defined in subsection (2).
856	(2) In the event the commission grants the local exchange
857	telecommunications company’s petition, the local exchange
858	telecommunications company is authorized, the requirements of s.
859	364.051(3) notwithstanding, to immediately implement a revenue
860	category mechanism consisting of basic local telecommunications
861	service revenues and intrastate switched network access revenues
862	to achieve revenue neutrality. The local exchange
863	telecommunications company shall thereafter, on 45 days’ notice,
864	adjust the various prices and rates of the services within its
865	revenue category authorized by this section once in any 12-month
866	period in a revenue-neutral manner. In no event shall any
867	adjustment in rates be offset entirely by the company’s basic
868	monthly recurring rate. All annual rate adjustments within the
869	revenue category established pursuant to this section shall be
870	implemented simultaneously and shall be revenue neutral. The
871	commission shall, within 45 days after the rate adjustment
872	filing, issue a final order confirming compliance with this
873	section, and such order shall be final for all purposes.
874	(3) Any filing under this section shall be based on the
875	company’s most recent 12 months’ pricing units in accordance
876	with subsection (7) for any service included in the revenue
877	category established under this section. The commission shall
878	have the authority only to verify the pricing units for the
879	purpose of ensuring that the company’s specific adjustments, as
880	authorized by this section, make the revenue category revenue
881	neutral for each filing. Any discovery or information requests
882	under this section shall be limited to a verification of
883	historical pricing units necessary to fulfill the commission’s
884	specific responsibilities under this section of ensuring that
885	the company’s rate adjustments make the revenue category revenue
886	neutral for each annual filing.
887	(4) Nothing in this section shall affect the local
888	exchange telecommunications company’s exemptions pursuant to s.
889	364.051(1)(c) or authorize any local exchange telecommunications
890	company to increase the cost of local exchange services to any
891	person providing services under s. 364.3375.
892	(5) For purposes of this section, “parity” means that the
893	local exchange telecommunications company’s intrastate switched
894	network access rate is equal to its interstate switched network
895	access rate in effect on January 1, 2003, if the company has
896	more than 1 million access lines in service. If the company has
897	1 million or less access lines in service, “parity” means that
898	the company’s intrastate switched network access rate is equal
899	to 8 cents per minute. Nothing in this section shall prevent the
900	company from making further reductions in its intrastate
901	switched network access rate, within the revenue category
902	established in this section, below parity on a revenue-neutral
903	basis, or from making other revenue-neutral rate adjustments
904	within this category.
905	(6) For purposes of this section, “intrastate switched
906	network access rate” means the composite of the originating and
907	terminating network access rate for carrier common line, local
908	channel/entrance facility, switched common transport, access
909	tandem switching, interconnection charge, signaling, information
910	surcharge, and local switching.
911	(7) For purposes of this section, “revenue neutral” means
912	that the total revenue within the revenue category established
913	pursuant to this section remains the same before and after the
914	local exchange telecommunications company implements any rate
915	adjustments under this section. Calculation of revenue received
916	from each service prior to implementation of any rate adjustment
917	shall be made by multiplying the then-current rate for each
918	service by the most recent 12 months’ actual pricing units for
919	each service within the category, without any adjustments to the
920	number of pricing units. Calculation of revenue for each service
921	to be received after implementation of rate adjustments shall be
922	made by multiplying the rate to be applicable for each service
923	by the most recent 12 months’ actual pricing units for each
924	service within the category, without any adjustments to the
925	number of pricing units. Billing units associated with pay
926	telephone access lines and Lifeline service shall not be
927	included in any calculation under this subsection.
928	(8) In the event that either the Federal Communications
929	Commission or the commission issues a final order determining
930	that voice-over-internet protocol service or a functionally
931	equivalent service shall not be subject to the payment of
932	switched network access rates pursuant to a local exchange
933	telecommunications company tariff or interconnection agreement
934	or other law, the provisions of subsection (2) shall immediately
935	become operative as if the commission had granted a petition
936	pursuant to subsection (1). Any local exchange
937	telecommunications company subject to this section shall be
938	authorized to reduce its switched network access rates to the
939	company’s authorized local reciprocal compensation rates in a
940	revenue-neutral manner, pursuant to subsections (2)-(7), in the
941	shortest remaining timeframe allowable under this section.
942	Section 16. Section 364.337, Florida Statutes, is amended
943	to read:
944	364.337 CompetitiveAlternatelocal exchange
945	telecommunications companies; intrastate interexchange
946	telecommunications services; certification.--
947	(1) Upon this act becoming a law, a party may file an
948	application for a certificate as a competitivean alternative
949	local exchange telecommunications company before January 1,
950	1996, and the commission shall conduct its review of the
951	application and take all actions necessary to process the
952	application. However, an application shall become effective no
953	sooner than January 1, 1996. The commission shall grant a
954	certificate of authority to provide competitivealternative
955	local exchange service upon a showing that the applicant has
956	sufficient technical, financial, and managerial capability to
957	provide such service in the geographic area proposed to be
958	served. In no event may a competitivean alternativelocal
959	exchange telecommunications company offer basic local
960	telecommunications services within the territory served by a
961	company subject to s. 364.052 prior to January 1, 2001, unless
962	the small local exchange telecommunications company elects to be
963	regulated under s. 364.051 or provides cable television
964	programming services directly or as video dial tone applications
965	authorized under 47 U.S.C. s. 214, except as provided for in
966	compliance with part II. It is the intent of the Legislature
967	that the commission act expeditiously to grant certificates of
968	authority under this section and that the grant of certificates
969	not be affected by the application of any criteria other than
970	that specifically enumerated in this subsection.
971	(2) Rules adopted by the commission governing the
972	provision of competitivealternativelocal exchange
973	telecommunications service shall be consistent with s. 364.01.
974	The basic local telecommunications service provided by a
975	competitivean alternativelocal exchange telecommunications
976	company must include access to operator services, "911"
977	services, and relay services for the hearing impaired. A
978	competitiveAn alternativelocal exchange telecommunications
979	company's "911" service shall be provided at a level equivalent
980	to that provided by the local exchange telecommunications
981	company serving the same area. There shall be a flat-rate
982	pricing option for basic local telecommunications services, and
983	mandatory measured service for basic local telecommunications
984	services shall not be imposed. A certificated competitive
985	alternativelocal exchange telecommunications company may
986	petition the commission for a waiver of some or all of the
987	requirements of this chapter, except ss. 364.16, 364.336, and
988	subsections (1) and (5). The commission may grant such petition
989	if determined to be in the public interest. In no event shall
990	competitivealternativelocal exchange telecommunications
991	companies be subject to the requirements of ss. 364.03, 364.035,
992	364.037, 364.05, 364.055, 364.14, 364.17, 364.18, 364.33,and
993	364.3381.
994	(3) The commission shall grant a certificate of authority
995	to provide intrastate interexchange telecommunications service
996	upon a showing that the applicant has sufficient technical,
997	financial, and managerial capability to provide such service in
998	the geographic area proposed to be served.
999	(4) Rules adopted by the commission governing the
1000	provision of intrastate interexchange telecommunications service
1001	shall be consistent with s. 364.01. A certificated intrastate
1002	interexchange telecommunications company may petition the
1003	commission for a waiver for some or all of the requirements of
1004	this chapter, except s. 364.16, s. 364.335(3), or subsection
1005	(5). The commission may grant such petition if determined to be
1006	in the public interest. In no event shall intrastate
1007	interexchange telecommunications companies be subject to the
1008	requirements of ss. 364.03, 364.035, 364.037, 364.05, 364.055,
1009	364.14, 364.17, 364.18, and 364.3381.
1010	(5) The commission shall have continuing regulatory
1011	oversight over the provision of basic local exchange
1012	telecommunications service provided by a certificated
1013	competitivealternativelocal exchange telecommunications
1014	company or a certificated alternative access vendor for purposes
1015	of establishing reasonable service quality criteria, assuring
1016	resolution of service complaints, and ensuring the fair
1017	treatment of all telecommunications providers in the
1018	telecommunications marketplace.
1019	(6)(a) The Legislature finds the provision of alternative
1020	access vendor services to be in the public interest, and the
1021	commission may authorize the provision of such service. For the
1022	purposes of this section, effective January 1, 1996,
1023	"alternative access vendor services" means the provision of
1024	private line service between an entity and facilities at another
1025	location, whether owned by the entity or an unaffiliated entity
1026	or access service between an end user and an interexchange
1027	carrier by other than a local exchange telecommunications
1028	company. For purposes of this chapter, "private line service"
1029	means any dedicated point-to-point or point-to-multipoint
1030	service for the transmission of any public telecommunications
1031	service.
1032	(b) No person shall provide alternative access vendor
1033	services without first obtaining a certificate from the
1034	commission. Any certificated alternative access vendor as of the
1035	date this act becomes a law wishing to provide alternative local
1036	exchange telecommunications service in addition to the services
1037	authorized in its certificate may do so, effective January 1,
1038	1996, upon furnishing written notice to the commission.
1039	Section 17. Subsection (1) of section 364.3376, Florida
1040	Statutes, is amended to read:
1041	364.3376 Operator services.--
1042	(1)(a) No person shall provide operator services as
1043	defined in s. 364.02 without first obtaining from the commission
1044	a certificate of public convenience and necessity as eitheran
1045	operator services provider or an interexchange
1046	telecommunications company.
1047	(b) The provisions of this section shall not apply to
1048	operator services provided by a local exchange
1049	telecommunications company or by an intrastate interexchange
1050	telecommunications company, except as required by the commission
1051	in the public interest.
1052	Section 18. Subsection (1) of section 364.502, Florida
1053	Statutes, is amended to read:
1054	364.502 Video programming; capacity for public use.--
1055	(1) Each local exchange telecommunications company or
1056	competitivealternativelocal exchange telecommunications
1057	company which provides video programming shall, prior to
1058	providing such programming, file with the commission a
1059	designation of reserve capacity for public, educational, or
1060	governmental use. The commission shall review the filed
1061	designation to determine whether such designation ensures that
1062	public education and public information programming are
1063	adequately available to the customers of such telecommunications
1064	company. The commission shall consider the following factors in
1065	determining whether the filed designation complies with the
1066	requirements of this chapter:
1067	(a) Reservation and designation requirements provided by
1068	federal law, if any.
1069	(b) The level of demand for such programming in a given
1070	service area.
1071	(c) The barriers to providing such programming in the
1072	service area.
1073	(d) The cost and availability of such programming in the
1074	service area.
1075	(e) Other factors which the commission deems appropriate.
1076	Section 19. Paragraph (i) of subsection (3) of section
1077	365.172, Florida Statutes, is amended to read:
1078	365.172 Wireless emergency telephone number "E911."--
1079	(3) DEFINITIONS.--As used in this section and ss. 365.173
1080	and 365.174, the term:
1081	(i) "Local exchange carrier" means aan "competitive
1082	alternativelocal exchange telecommunications company" or a
1083	"local exchange telecommunications company" as defined in s.
1084	364.02.
1085	Section 20. Subsection (6) of section 196.012, Florida
1086	Statutes, is amended to read:
1087	196.012 Definitions.--For the purpose of this chapter, the
1088	following terms are defined as follows, except where the context
1089	clearly indicates otherwise:
1090	(6) Governmental, municipal, or public purpose or function
1091	shall be deemed to be served or performed when the lessee under
1092	any leasehold interest created in property of the United States,
1093	the state or any of its political subdivisions, or any
1094	municipality, agency, special district, authority, or other
1095	public body corporate of the state is demonstrated to perform a
1096	function or serve a governmental purpose which could properly be
1097	performed or served by an appropriate governmental unit or which
1098	is demonstrated to perform a function or serve a purpose which
1099	would otherwise be a valid subject for the allocation of public
1100	funds. For purposes of the preceding sentence, an activity
1101	undertaken by a lessee which is permitted under the terms of its
1102	lease of real property designated as an aviation area on an
1103	airport layout plan which has been approved by the Federal
1104	Aviation Administration and which real property is used for the
1105	administration, operation, business offices and activities
1106	related specifically thereto in connection with the conduct of
1107	an aircraft full service fixed base operation which provides
1108	goods and services to the general aviation public in the
1109	promotion of air commerce shall be deemed an activity which
1110	serves a governmental, municipal, or public purpose or function.
1111	Any activity undertaken by a lessee which is permitted under the
1112	terms of its lease of real property designated as a public
1113	airport as defined in s. 332.004(14) by municipalities,
1114	agencies, special districts, authorities, or other public bodies
1115	corporate and public bodies politic of the state, a spaceport as
1116	defined in s. 331.303(19), or which is located in a deepwater
1117	port identified in s. 403.021(9)(b) and owned by one of the
1118	foregoing governmental units, subject to a leasehold or other
1119	possessory interest of a nongovernmental lessee that is deemed
1120	to perform an aviation, airport, aerospace, maritime, or port
1121	purpose or operation shall be deemed an activity that serves a
1122	governmental, municipal, or public purpose. The use by a lessee,
1123	licensee, or management company of real property or a portion
1124	thereof as a convention center, visitor center, sports facility
1125	with permanent seating, concert hall, arena, stadium, park, or
1126	beach is deemed a use that serves a governmental, municipal, or
1127	public purpose or function when access to the property is open
1128	to the general public with or without a charge for admission. If
1129	property deeded to a municipality by the United States is
1130	subject to a requirement that the Federal Government, through a
1131	schedule established by the Secretary of the Interior, determine
1132	that the property is being maintained for public historic
1133	preservation, park, or recreational purposes and if those
1134	conditions are not met the property will revert back to the
1135	Federal Government, then such property shall be deemed to serve
1136	a municipal or public purpose. The term "governmental purpose"
1137	also includes a direct use of property on federal lands in
1138	connection with the Federal Government's Space Exploration
1139	Program or spaceport activities as defined in s. 212.02(22).
1140	Real property and tangible personal property owned by the
1141	Federal Government or the Florida Space Authority and used for
1142	defense and space exploration purposes or which is put to a use
1143	in support thereof shall be deemed to perform an essential
1144	national governmental purpose and shall be exempt. "Owned by the
1145	lessee" as used in this chapter does not include personal
1146	property, buildings, or other real property improvements used
1147	for the administration, operation, business offices and
1148	activities related specifically thereto in connection with the
1149	conduct of an aircraft full service fixed based operation which
1150	provides goods and services to the general aviation public in
1151	the promotion of air commerce provided that the real property is
1152	designated as an aviation area on an airport layout plan
1153	approved by the Federal Aviation Administration. For purposes of
1154	determination of "ownership," buildings and other real property
1155	improvements which will revert to the airport authority or other
1156	governmental unit upon expiration of the term of the lease shall
1157	be deemed "owned" by the governmental unit and not the lessee.
1158	Providing two-way telecommunications services to the public for
1159	hire by the use of a telecommunications facility, as defined in
1160	s. 364.02(14)(13), and for which a certificate is required under
1161	chapter 364 does not constitute an exempt use for purposes of s.
1162	196.199, unless the telecommunications services are provided by
1163	the operator of a public-use airport, as defined in s. 332.004,
1164	for the operator's provision of telecommunications services for
1165	the airport or its tenants, concessionaires, or licensees, or
1166	unless the telecommunications services are provided by a public
1167	hospital. However, property that is being used to provide such
1168	telecommunications services on or before October 1, 1997, shall
1169	remain exempt, but such exemption expires October 1, 2004.
1170	Section 21. Paragraph (b) of subsection (1) of section
1171	199.183, Florida Statutes, is amended to read:
1172	199.183 Taxpayers exempt from annual and nonrecurring
1173	taxes.--
1174	(1) Intangible personal property owned by this state or
1175	any of its political subdivisions or municipalities shall be
1176	exempt from taxation under this chapter. This exemption does not
1177	apply to:
1178	(b) Property related to the provision of two-way
1179	telecommunications services to the public for hire by the use of
1180	a telecommunications facility, as defined in s. 364.02(14)(13),
1181	and for which a certificate is required under chapter 364, when
1182	such service is provided by any county, municipality, or other
1183	political subdivision of the state. Any immunity of any
1184	political subdivision of the state or other entity of local
1185	government from taxation of the property used to provide
1186	telecommunication services that is taxed as a result of this
1187	paragraph is hereby waived. However, intangible personal
1188	property related to the provision of such telecommunications
1189	services provided by the operator of a public-use airport, as
1190	defined in s. 332.004, for the operator's provision of
1191	telecommunications services for the airport or its tenants,
1192	concessionaires, or licensees, and intangible personal property
1193	related to the provision of such telecommunications services
1194	provided by a public hospital, are exempt from taxation under
1195	this chapter.
1196	Section 22. Subsection (6) of section 212.08, Florida
1197	Statutes, is amended to read:
1198	212.08 Sales, rental, use, consumption, distribution, and
1199	storage tax; specified exemptions.--The sale at retail, the
1200	rental, the use, the consumption, the distribution, and the
1201	storage to be used or consumed in this state of the following
1202	are hereby specifically exempt from the tax imposed by this
1203	chapter.
1204	(6) EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are also
1205	exempt from the tax imposed by this chapter sales made to the
1206	United States Government, a state, or any county, municipality,
1207	or political subdivision of a state when payment is made
1208	directly to the dealer by the governmental entity. This
1209	exemption shall not inure to any transaction otherwise taxable
1210	under this chapter when payment is made by a government employee
1211	by any means, including, but not limited to, cash, check, or
1212	credit card when that employee is subsequently reimbursed by the
1213	governmental entity. This exemption does not include sales of
1214	tangible personal property made to contractors employed either
1215	directly or as agents of any such government or political
1216	subdivision thereof when such tangible personal property goes
1217	into or becomes a part of public works owned by such government
1218	or political subdivision. A determination whether a particular
1219	transaction is properly characterized as an exempt sale to a
1220	government entity or a taxable sale to a contractor shall be
1221	based on the substance of the transaction rather than the form
1222	in which the transaction is cast. The department shall adopt
1223	rules that give special consideration to factors that govern the
1224	status of the tangible personal property before its affixation
1225	to real property. In developing these rules, assumption of the
1226	risk of damage or loss is of paramount consideration in the
1227	determination. This exemption does not include sales, rental,
1228	use, consumption, or storage for use in any political
1229	subdivision or municipality in this state of machines and
1230	equipment and parts and accessories therefor used in the
1231	generation, transmission, or distribution of electrical energy
1232	by systems owned and operated by a political subdivision in this
1233	state for transmission or distribution expansion. Likewise
1234	exempt are charges for services rendered by radio and television
1235	stations, including line charges, talent fees, or license fees
1236	and charges for films, videotapes, and transcriptions used in
1237	producing radio or television broadcasts. The exemption provided
1238	in this subsection does not include sales, rental, use,
1239	consumption, or storage for use in any political subdivision or
1240	municipality in this state of machines and equipment and parts
1241	and accessories therefor used in providing two-way
1242	telecommunications services to the public for hire by the use of
1243	a telecommunications facility, as defined in s. 364.02(14)(13),
1244	and for which a certificate is required under chapter 364, which
1245	facility is owned and operated by any county, municipality, or
1246	other political subdivision of the state. Any immunity of any
1247	political subdivision of the state or other entity of local
1248	government from taxation of the property used to provide
1249	telecommunication services that is taxed as a result of this
1250	section is hereby waived. However, the exemption provided in
1251	this subsection includes transactions taxable under this chapter
1252	which are for use by the operator of a public-use airport, as
1253	defined in s. 332.004, in providing such telecommunications
1254	services for the airport or its tenants, concessionaires, or
1255	licensees, or which are for use by a public hospital for the
1256	provision of such telecommunications services.
1257	Section 23. Subsection (8) of section 290.007, Florida
1258	Statutes, is amended to read:
1259	290.007 State incentives available in enterprise
1260	zones.--The following incentives are provided by the state to
1261	encourage the revitalization of enterprise zones:
1262	(8) Notwithstanding any law to the contrary, the Public
1263	Service Commission may allow public utilities and
1264	telecommunications companies to grant discounts of up to 50
1265	percent on tariffed rates for services to small businesses
1266	located in an enterprise zone designated pursuant to s.
1267	290.0065. Such discounts may be granted for a period not to
1268	exceed 5 years. For purposes of this subsection, "public
1269	utility" has the same meaning as in s. 366.02(1) and
1270	"telecommunications company" has the same meaning as in s.
1271	364.02(13)(12).
1272	Section 24. Subsection (3) of section 350.0605, Florida
1273	Statutes, is amended to read:
1274	350.0605 Former commissioners and employees;
1275	representation of clients before commission.--
1276	(3) For a period of 2 years following termination of
1277	service on the commission, a former member may not accept
1278	employment by or compensation from a business entity which,
1279	directly or indirectly, owns or controls a public utility
1280	regulated by the commission, from a public utility regulated by
1281	the commission, from a business entity which, directly or
1282	indirectly, is an affiliate or subsidiary of a public utility
1283	regulated by the commission or is an actual business competitor
1284	of a local exchange company or public utility regulated by the
1285	commission and is otherwise exempt from regulation by the
1286	commission under ss. 364.02(13)(12)and 366.02(1), or from a
1287	business entity or trade association that has been a party to a
1288	commission proceeding within the 2 years preceding the member's
1289	termination of service on the commission. This subsection
1290	applies only to members of the Florida Public Service Commission
1291	who are appointed or reappointed after May 10, 1993.
1292	Section 25. Subsection (4) of section 364.602, Florida
1293	Statutes, is amended to read:
1294	364.602 Definitions.--For purposes of this part:
1295	(4) "Originating party" means any person, firm,
1296	corporation, or other entity, including a telecommunications
1297	company or a billing clearinghouse, that provides any
1298	telecommunications service or information service to a customer
1299	or bills a customer through a billing party, except the term
1300	"originating party" does not include any entity specifically
1301	exempted from the definition of "telecommunications company" as
1302	provided in s. 364.02(13)(12).
1303	Section 26. Subsection (5) of section 489.103, Florida
1304	Statutes, is amended to read:
1305	489.103 Exemptions.--This part does not apply to:
1306	(5) Public utilities, including special gas districts as
1307	defined in chapter 189, telecommunications companies as defined
1308	in s. 364.02(13)(12), and natural gas transmission companies as
1309	defined in s. 368.103(4), on construction, maintenance, and
1310	development work performed by their employees, which work,
1311	including, but not limited to, work on bridges, roads, streets,
1312	highways, or railroads, is incidental to their business. The
1313	board shall define, by rule, the term "incidental to their
1314	business" for purposes of this subsection.
1315	Section 27. This act shall take effect upon becoming a
1316	law.
1317