Senate Bill sb2052

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    Florida Senate - 2003                                  SB 2052

    By Senator Bennett





    21-1282-03

  1                      A bill to be entitled

  2         An act relating to universal telecommunications

  3         services; amending s. 364.025, F.S.; extending

  4         a transition period for the implementation of

  5         an interim mechanism for maintaining certain

  6         service objectives; providing an effective

  7         date.

  8  

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

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11         Section 1.  Section 364.025, Florida Statutes, is

12  amended to read:

13         364.025  Universal service.--

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

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

16  telecommunications services that, taking into account advances

17  in technologies, services, and market demand for essential

18  services, the commission determines should be provided at

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

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

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

22  service objectives be maintained after the local exchange

23  market is opened to competitively provided services.  It is

24  also the intent of the Legislature that during this transition

25  period the ubiquitous nature of the local exchange

26  telecommunications companies be used to satisfy these

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

28  each local exchange telecommunications company shall be

29  required to furnish basic local exchange telecommunications

30  service within a reasonable time period to any person

31  

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    Florida Senate - 2003                                  SB 2052
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 1  requesting such service within the company's service

 2  territory.

 3         (2)  The Legislature finds that each telecommunications

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

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

 6  obligations.  For a transitional period not to exceed January

 7  1, 2008 2004, the interim mechanism for maintaining universal

 8  service objectives and funding carrier-of-last-resort

 9  obligations shall be established by the commission, pending

10  the implementation of a permanent mechanism.  The interim

11  mechanism shall be applied in a manner that ensures that each

12  alternative local exchange telecommunications company

13  contributes its fair share to the support of universal service

14  and carrier-of-last-resort obligations.  The interim mechanism

15  applied to each alternative local exchange telecommunications

16  company shall reflect a fair share of the local exchange

17  telecommunications company's recovery of investments made in

18  fulfilling its carrier-of-last-resort obligations, and the

19  maintenance of universal service objectives. The commission

20  shall ensure that the interim mechanism does not impede the

21  development of residential consumer choice or create an

22  unreasonable barrier to competition.  In reaching its

23  determination, the commission shall not inquire into or

24  consider any factor that is inconsistent with s.

25  364.051(1)(c).  The costs and expenses of any government

26  program or project required in part II of this chapter shall

27  not be recovered under this section.

28         (3)  In the event any party, prior to January 1, 2008

29  2004, believes that circumstances have changed substantially

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

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

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    Florida Senate - 2003                                  SB 2052
    21-1282-03




 1  grant such petition only after an opportunity for a hearing

 2  and a compelling showing of changed circumstances, including

 3  that the provider's customer population includes as many

 4  residential as business customers.  The commission shall act

 5  on any such petition within 120 days.

 6         (4)(a)  Prior to January 1, 2008 2004, the Legislature

 7  shall establish a permanent universal service mechanism upon

 8  the effective date of which any interim recovery mechanism for

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

10  obligations imposed on alternative local exchange

11  telecommunications companies shall terminate.

12         (b)  To assist the Legislature in establishing a

13  permanent universal service mechanism, the commission, by

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

15  of the Senate and the Speaker of the House of Representatives

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

17  commercially available technology and equipment and generally

18  accepted design and placement principles, of providing basic

19  local telecommunications service on a basis no greater than a

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

21  the commission after notice and opportunity for hearing.

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

23  telecommunications service for small local exchange

24  telecommunications companies, which serve less than 100,000

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

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

27  mechanism is implemented by the Federal Government for small

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

29  shall calculate a small local exchange telecommunications

30  company's cost of providing basic local telecommunications

31  services based on one of the following options:

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    Florida Senate - 2003                                  SB 2052
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 1         1.  A different proxy model; or

 2         2.  A fully distributed allocation of embedded costs,

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

 4  company serves and including all embedded investments and

 5  expenses incurred by the company in the provision of universal

 6  service. Such calculations may be made using fully distributed

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

 8  geographic basis for the calculations shall be no smaller than

 9  a census block group.

10         (5)  After January 1, 2001, an alternative local

11  exchange telecommunications company may petition the

12  commission to become the universal service provider and

13  carrier of last resort in areas requested to be served by that

14  alternative local exchange telecommunications company.  Upon

15  petition of an alternative local exchange telecommunications

16  company, the commission shall have 120 days to vote on

17  granting in whole or in part or denying the petition of the

18  alternative local exchange company.  The commission may

19  establish the alternative local exchange telecommunications

20  company as the universal service provider and carrier of last

21  resort, provided that the commission first determines that the

22  alternative local exchange telecommunications company will

23  provide high-quality, reliable service.  In the order

24  establishing the alternative local exchange telecommunications

25  company as the universal service provider and carrier of last

26  resort, the commission shall set the period of time in which

27  such company must meet those objectives and obligations and

28  shall set up any mechanism needed to aid such company in

29  carrying out these duties.

30         Section 2.  This act shall take effect July 1, 2003.

31  

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    Florida Senate - 2003                                  SB 2052
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 1            *****************************************

 2                          SENATE SUMMARY

 3    Extends until 2008 the transition period for the
      implementation of an interim mechanism for maintaining
 4    certain objectives relating to universal
      telecommunications services.
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