Senate Bill sb0654c1

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    Florida Senate - 2003                            CS for SB 654

    By the Committee on Communication and Public Utilities; and
    Senator Haridopolos




    319-2242-03

  1                      A bill to be entitled

  2         An act relating to regulation of

  3         telecommunications companies; providing a

  4         popular name; amending s. 364.01, F.S.;

  5         providing legislative finding that provision of

  6         unregulated voice-over-internet protocol is in

  7         the public interest; amending s. 364.02, F.S.;

  8         changing the term "alternative local exchange

  9         telecommunications company" to "competitive

10         local exchange telecommunications company";

11         defining the term "intrastate interexchange

12         telecommunications company"; limiting the

13         definition of "service"; amending s. 364.025,

14         F.S.; conforming terminology; extending the

15         time period for mandatory provision of basic

16         local exchange telecommunications services

17         within the territory of a local exchange

18         telecommunications company; extending the

19         transitional time period for the Public Service

20         Commission's providing an interim mechanism for

21         maintaining universal service objectives;

22         providing authority for the Public Service

23         Commission to change the mechanism upon

24         petition during such period; delaying

25         requirement that the Legislature establish a

26         permanent mechanism; delaying date on which

27         competitive local exchange telecommunications

28         company may petition the Public Service

29         Commission to become a universal service

30         provider and carrier of last resort; providing

31         for commission determination as to its

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    Florida Senate - 2003                            CS for SB 654
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 1         authority to address universal service support

 2         mechanism for small local exchange

 3         telecommunications companies different from the

 4         interim mechanism; amending s. 364.0361, F.S.;

 5         providing exclusivity for certain regulations;

 6         amending s. 364.051, F.S.; conforming

 7         terminology; providing circumstances under

 8         which certain telecommunications companies may

 9         elect alternative regulations; providing an

10         exception; prohibiting an increase in certain

11         regulations on competitive local exchange

12         telecommunications companies; amending s.

13         364.052, F.S.; conforming terminology; amending

14         s. 364.058, F.S.; providing for an expedited

15         process to facilitate quick resolution of

16         disputes between telecommunications companies;

17         providing rulemaking authority; creating s.

18         364.059, F.S.; providing procedures for staying

19         election of local exchange telecommunications

20         companies to be subject to alternative

21         regulations; requiring the Public Service

22         Commission to provide benchmarks and criteria

23         for granting stays; providing rulemaking

24         authority; amending s. 364.10, F.S.; requiring

25         certain local exchange telecommunications

26         companies to provide Lifeline services to

27         certain persons; providing for eligibility

28         determinations by the Public Counsel for

29         receipt of such services; prohibiting rate

30         increases for basic local telecommunications

31         services provided to such eligible persons;

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    Florida Senate - 2003                            CS for SB 654
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 1         requiring distribution of certain materials;

 2         requiring annual reports; amending ss. 364.16,

 3         364.161, and 364.162, F.S.; conforming

 4         terminology; amending s. 364.163, F.S.;

 5         deleting obsolete language; changing period in

 6         which intrastate access rates are capped;

 7         removing limitations on certain rate increases;

 8         eliminating certain fees; providing presumption

 9         of validity for certain tariff changes made by

10         intrastate interexchange telecommunications

11         companies; creating s. 364.164, F.S.;

12         authorizing local exchange telecommunications

13         companies to petition the Public Service

14         Commission for reduction of intrastate network

15         access rates under certain circumstances;

16         requiring revenue neutrality; providing

17         criteria for the commission to consider;

18         amending s. 364.337, F.S.; conforming

19         terminology; amending s. 364.3376, F.S.;

20         eliminating the requirement that intrastate

21         interexchange telecommunications companies

22         obtain a certificate of public convenience

23         prior to providing operator services; amending

24         ss. 364.502 and 365.172, F.S.; conforming

25         terminology; amending ss. 196.012, 199.183,

26         212.08, 290.007, 350.0605, 364.602, and

27         489.103, F.S.; correcting cross-references to

28         s. 364.02, F.S.; providing an effective date.

29  

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

31  

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    Florida Senate - 2003                            CS for SB 654
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 1         Section 1.  This act may be cited as the

 2  "Tele-Competition Innovation and Infrastructure Enhancement

 3  Act."

 4         Section 2.  Subsection (3) of section 364.01, Florida

 5  Statutes, is amended to read:

 6         364.01  Powers of commission, legislative intent.--

 7         (3)  The Legislature finds that the competitive

 8  provision of telecommunications services, including local

 9  exchange telecommunications service, is in the public interest

10  and will provide customers with freedom of choice, encourage

11  the introduction of new telecommunications service, encourage

12  technological innovation, and encourage investment in

13  telecommunications infrastructure.  The Legislature further

14  finds that the transition from the monopoly provision of local

15  exchange service to the competitive provision thereof will

16  require appropriate regulatory oversight to protect consumers

17  and provide for the development of fair and effective

18  competition, but nothing in this chapter shall limit the

19  availability to any party of any remedy under state or federal

20  antitrust laws.  The Legislature further finds that changes in

21  regulations allowing increased competition in

22  telecommunications services could provide the occasion for

23  increases in the telecommunications workforce; therefore, it

24  is in the public interest that competition in

25  telecommunications services lead to a situation that enhances

26  the high-technological skills and the economic status of the

27  telecommunications workforce. The Legislature further finds

28  that the provision of voice-over-internet protocol (VOIP) free

29  of unnecessary regulation, regardless of the provider, is in

30  the public interest.

31  

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 1         Section 3.  Section 364.02, Florida Statutes, is

 2  amended to read:

 3         364.02  Definitions.--As used in this chapter:

 4         (1)  "Alternative local exchange telecommunications

 5  company" means any company certificated by the commission to

 6  provide local exchange telecommunications services in this

 7  state on or after July 1, 1995.

 8         (1)(2)  "Basic local telecommunications service" means

 9  voice-grade, flat-rate residential, and flat-rate single-line

10  business local exchange services which provide dial tone,

11  local usage necessary to place unlimited calls within a local

12  exchange area, dual tone multifrequency dialing, and access to

13  the following:  emergency services such as "911," all locally

14  available interexchange companies, directory assistance,

15  operator services, relay services, and an alphabetical

16  directory listing. For a local exchange telecommunications

17  company, such term shall include any extended area service

18  routes, and extended calling service in existence or ordered

19  by the commission on or before July 1, 1995.

20         (2)(3)  "Commercial mobile radio service provider"

21  means a commercial mobile radio service provider as defined by

22  and pursuant to 47 U.S.C. ss. 153(n) and 332(d).

23         (3)(4)  "Commission" means the Florida Public Service

24  Commission.

25         (4)  "Competitive local exchange telecommunications

26  company" means any company certificated by the commission to

27  provide local exchange telecommunications services in this

28  state on or after July 1, 1995.

29         (5)  "Corporation" includes a corporation, company,

30  association, or joint stock association.

31  

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 1         (6)  "Intrastate interexchange telecommunications

 2  company" means any entity that provides intrastate

 3  interexchange telecommunications services.

 4         (7)(6)  "Local exchange telecommunications company"

 5  means any company certificated by the commission to provide

 6  local exchange telecommunications service in this state on or

 7  before June 30, 1995.

 8         (8)(7)  "Monopoly service" means a telecommunications

 9  service for which there is no effective competition, either in

10  fact or by operation of law.

11         (9)(8)  "Nonbasic service" means any telecommunications

12  service provided by a local exchange telecommunications

13  company other than a basic local telecommunications service, a

14  local interconnection arrangement described in s. 364.16, or a

15  network access service described in s. 364.163.

16         (10)(9)  "Operator service" includes, but is not

17  limited to, billing or completion of third-party,

18  person-to-person, collect, or calling card or credit card

19  calls through the use of a live operator or automated

20  equipment.

21         (11)(10)  "Operator service provider" means a person

22  who furnishes operator service through a call aggregator.

23         (12)(11)  "Service" is to be construed in its broadest

24  and most inclusive sense. The term "service" does not include

25  voice-over-internet protocol service for purposes of

26  regulation by the commission. Nothing herein shall affect the

27  rights and obligations of any entity related to the payment of

28  switched network access rates or other intercarrier

29  compensation, if any, related to voice-over-internet protocol

30  service.

31  

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 1         (13)(12)  "Telecommunications company" includes every

 2  corporation, partnership, and person and their lessees,

 3  trustees, or receivers appointed by any court whatsoever, and

 4  every political subdivision in the state, offering two-way

 5  telecommunications service to the public for hire within this

 6  state by the use of a telecommunications facility.  The term

 7  "telecommunications company" does not include:

 8         (a)  An entity which provides a telecommunications

 9  facility exclusively to a certificated telecommunications

10  company;

11         (b)  An entity which provides a telecommunications

12  facility exclusively to a company which is excluded from the

13  definition of a telecommunications company under this

14  subsection;

15         (c)  A commercial mobile radio service provider;

16         (d)  A facsimile transmission service;

17         (e)  A private computer data network company not

18  offering service to the public for hire; or

19         (f)  A cable television company providing cable service

20  as defined in 47 U.S.C. s. 522; or.

21         (g)  An intrastate interexchange telecommunications

22  company.

23  

24  However, each commercial mobile radio service provider and

25  each intrastate interexchange telecommunications company shall

26  continue to be liable for any taxes imposed pursuant to

27  chapters 203 and 212 and any fees assessed pursuant to ss. s.

28  364.025 and 364.336. Each intrastate interexchange

29  telecommunications company shall continue to be subject to ss.

30  364.04, 364.10(3)(a) and (d), 364.015, 364.285, 364.163,

31  364.501, 364.603, and 364.604, shall provide the commission

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 1  with such current information as the commission deems

 2  necessary to contact and communicate with the company, shall

 3  continue to pay intrastate switched network access rates or

 4  other intercarrier compensation to the local exchange

 5  telecommunications company or the competitive local exchange

 6  telecommunications company for the origination and termination

 7  of interexchange telecommunications service, and shall reduce

 8  its intrastate long distance toll rates in accordance with s.

 9  364.163(2).

10         (14)(13)  "Telecommunications facility" includes real

11  estate, easements, apparatus, property, and routes used and

12  operated to provide two-way telecommunications service to the

13  public for hire within this state.

14         Section 4.  Section 364.025, Florida Statutes, is

15  amended to read:

16         364.025  Universal service.--

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

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

19  telecommunications services that, taking into account advances

20  in technologies, services, and market demand for essential

21  services, the commission determines should be provided at

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

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

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

25  service objectives be maintained after the local exchange

26  market is opened to competitively provided services.  It is

27  also the intent of the Legislature that during this transition

28  period the ubiquitous nature of the local exchange

29  telecommunications companies be used to satisfy these

30  objectives. Until January 1, 2009 For a period of 8 years

31  after January 1, 1996, each local exchange telecommunications

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    Florida Senate - 2003                            CS for SB 654
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 1  company shall be required to furnish basic local exchange

 2  telecommunications service within a reasonable time period to

 3  any person requesting such service within the company's

 4  service territory.

 5         (2)  The Legislature finds that each telecommunications

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

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

 8  obligations.  For a transitional period not to exceed January

 9  1, 2009 2004, the interim mechanism for maintaining universal

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

11  obligations shall be established by the commission, pending

12  the implementation of a permanent mechanism.  The interim

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

14  competitive alternative local exchange telecommunications

15  company contributes its fair share to the support of universal

16  service and carrier-of-last-resort obligations.  The interim

17  mechanism applied to each competitive alternative local

18  exchange telecommunications company shall reflect a fair share

19  of the local exchange telecommunications company's recovery of

20  investments made in fulfilling its carrier-of-last-resort

21  obligations, and the maintenance of universal service

22  objectives. The commission shall ensure that the interim

23  mechanism does not impede the development of residential

24  consumer choice or create an unreasonable barrier to

25  competition.  In reaching its determination, the commission

26  shall not inquire into or consider any factor that is

27  inconsistent with s. 364.051(1)(c).  The costs and expenses of

28  any government program or project required in part II of this

29  chapter shall not be recovered under this section.

30         (3)  If In the event any party, prior to January 1,

31  2009 2004, believes that circumstances have changed

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 1  substantially to warrant a change in the interim mechanism,

 2  that party may petition the commission for a change, but the

 3  commission shall grant such petition only after an opportunity

 4  for a hearing and a compelling showing of changed

 5  circumstances, including that the provider's customer

 6  population includes as many residential as business customers.

 7  The commission shall act on any such petition within 120 days.

 8         (4)(a)  Prior to January 1, 2009 2004, the Legislature

 9  shall establish a permanent universal service mechanism upon

10  the effective date of which any interim recovery mechanism for

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

12  obligations imposed on competitive alternative local exchange

13  telecommunications companies shall terminate.

14         (b)  To assist the Legislature in establishing a

15  permanent universal service mechanism, the commission, by

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

17  of the Senate and the Speaker of the House of Representatives

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

19  commercially available technology and equipment and generally

20  accepted design and placement principles, of providing basic

21  local telecommunications service on a basis no greater than a

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

23  the commission after notice and opportunity for hearing.

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

25  telecommunications service for small local exchange

26  telecommunications companies, which serve less than 100,000

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

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

29  mechanism is implemented by the Federal Government for small

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

31  shall calculate a small local exchange telecommunications

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 1  company's cost of providing basic local telecommunications

 2  services based on one of the following options:

 3         1.  A different proxy model; or

 4         2.  A fully distributed allocation of embedded costs,

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

 6  company serves and including all embedded investments and

 7  expenses incurred by the company in the provision of universal

 8  service. Such calculations may be made using fully distributed

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

10  geographic basis for the calculations shall be no smaller than

11  a census block group.

12         (5)  After January 1, 2001, a competitive an

13  alternative local exchange telecommunications company may

14  petition the commission to become the universal service

15  provider and carrier of last resort in areas requested to be

16  served by that competitive alternative local exchange

17  telecommunications company. Upon petition of a competitive an

18  alternative local exchange telecommunications company, the

19  commission shall have 120 days to vote on granting in whole or

20  in part or denying the petition of the competitive alternative

21  local exchange company. The commission may establish the

22  competitive alternative local exchange telecommunications

23  company as the universal service provider and carrier of last

24  resort, provided that the commission first determines that the

25  competitive alternative local exchange telecommunications

26  company will provide high-quality, reliable service. In the

27  order establishing the competitive alternative local exchange

28  telecommunications company as the universal service provider

29  and carrier of last resort, the commission shall set the

30  period of time in which such company must meet those

31  

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 1  objectives and obligations and shall set up any mechanism

 2  needed to aid such company in carrying out these duties.

 3         (6)  The Commission, by February 1, 2004, shall

 4  determine and report to the President of the Senate and the

 5  Speaker of the House of Representatives whether the commission

 6  has the necessary authority, pursuant to s.364.025 (3), to

 7  address whether a local exchange telecommunications company

 8  with less than 100,000 access lines in service is entitled to

 9  a universal service support mechanism different from the

10  interim mechanism in place, on the grounds that circumstance

11  have changed, or are changing, substantially to warrant a

12  change in the interim mechanism.  If the commission finds that

13  it does not have such authority, the commission shall

14  recommend such statutory changes to s.364.025 (3) to provide

15  it with such authority.

16         Section 5.  Section 364.0361, Florida Statutes, is

17  amended to read:

18         364.0361  Local government authority; nondiscriminatory

19  exercise.--A local government shall treat each

20  telecommunications company in a nondiscriminatory manner when

21  exercising its authority to grant franchises to a

22  telecommunications company or to otherwise establish

23  conditions or compensation for the use of rights-of-way or

24  other public property by a telecommunications company. A local

25  government may not directly or indirectly regulate the terms

26  and conditions, including, but not limited to, the operating

27  systems, qualifications, services, service quality, service

28  territory, and prices, applicable to or in connection with the

29  provision of any broadband or information service. This

30  section does not relieve a provider from any obligations under

31  s. 166.046 or s. 337.401.

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 1         Section 6.  Paragraph (a) of subsection (1) and

 2  subsection (3) of section 364.051, Florida Statutes, are

 3  amended, and subsections (6), (7), and (8) are added to that

 4  section, to read:

 5         364.051  Price regulation.--

 6         (1)  SCHEDULE.--Notwithstanding any other provisions of

 7  this chapter, the following local exchange telecommunications

 8  companies shall become subject to the price regulation

 9  described in this section on the following dates:

10         (a)  For a local exchange telecommunications company

11  with 100,000 or more access lines in service as of July 1,

12  1995, such company may file with the commission a notice of

13  election to be under price regulation effective January 1,

14  1996, or when a competitive an alternative local exchange

15  telecommunications company is certificated to provide local

16  exchange telecommunications services in its service territory,

17  whichever is later.

18         (3)  If In the event that it is determined that the

19  level of competition justifies the elimination of price caps

20  in an exchange served by a local exchange telecommunications

21  company with less than 3 million basic local

22  telecommunications service access lines in service, or at the

23  end of 5 years for any local exchange telecommunications

24  company, the local exchange telecommunications company may

25  thereafter on 30 days' notice adjust its basic service

26  revenues prices once in any 12-month period in an amount not

27  to exceed the change in inflation less 1 percent.  Inflation

28  shall be measured by the changes in the Gross Domestic Product

29  Fixed 1987 Weights Price Index, or successor fixed weight

30  price index, published in the Survey of Current Business or a

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

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 1  the event any local exchange telecommunications company, after

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

 3  justifies the elimination of any form of price regulation, the

 4  company may petition the Legislature.

 5         (6)  After a local exchange telecommunications company

 6  that has more than 1 million access lines in service has

 7  reduced its intrastate switched network access rates to

 8  parity, as defined in s. 364.164(5), the local exchange

 9  telecommunications company's basic local telecommunications

10  service may, at the company's election, be subject to the same

11  regulatory treatment as its nonbasic services. The company's

12  retail service quality requirements that are not already equal

13  to the service quality requirements imposed upon the

14  competitive local exchange telecommunications companies shall

15  thereafter be no greater than those imposed upon competitive

16  local exchange telecommunications companies unless the

17  commission, within 120 days after the company's election,

18  determines otherwise. In such event, the commission may grant

19  some reductions in service quality requirements and in some or

20  all of the company's local calling areas. The commission may

21  not impose retail service quality requirements on competitive

22  local exchange telecommunications companies greater than those

23  existing on January 1, 2003.

24         (7)  If a local exchange telecommunications company

25  elects, pursuant to subsection (6), to subject its retail

26  basic local telecommunications services to the same regulatory

27  treatment as its nonbasic services, the local exchange

28  telecommunications company may petition the commission for

29  regulatory treatment of its retail services at a level no

30  greater than that imposed by the commission upon competitive

31  

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 1  local exchange telecommunications companies. The local

 2  exchange telecommunications company shall:

 3         (a)  Show that granting the petition is in the public

 4  interest;

 5         (b)  Reduce its intrastate switched network access

 6  rates to its local reciprocal interconnection rate upon the

 7  grant of the petition.

 8  

 9   The commission shall act upon such a petition within 9 months

10  after its filing with the commission. In making its

11  determination to either grant or deny the petition, the

12  commission shall determine the extent to which the level of

13  competition faced by the local exchange telecommunications

14  company permits and will continue to permit the company to

15  have its retail services regulated no differently than the

16  competitive local exchange telecommunications companies are

17  then being regulated. The commission may not increase the

18  level of regulation for competitive local exchange

19  telecommunications companies to a level greater than that

20  which exists on the date the local exchange telecommunications

21  company files its petition.

22         (8)  The provisions described in s. 364.051(6) and (7)

23  shall apply to any local exchange telecommunications company

24  with 1 million or less lines in service that has reduced its

25  intrastate switched network access rates to a level equal to

26  the company's interstate switched network access rates in

27  effect on January 1, 2003.

28         Section 7.  Subsections (2), (3), and (4) of section

29  364.052, Florida Statutes, are amended to read:

30         364.052  Regulatory methods for small local exchange

31  telecommunications companies.--

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 1         (2)  A small local exchange telecommunications company

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

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

 4  1, 2001, whichever occurs first. A company subject to this

 5  section, electing to be regulated pursuant to s. 364.051, will

 6  have any overearnings attributable to a period prior to the

 7  date on which the company makes the election subject to refund

 8  or other disposition by the commission.  Small local exchange

 9  telecommunications companies not electing the price regulation

10  provided for under s. 364.051 shall also be regulated pursuant

11  to ss. 364.03, 364.035(1) and (2), 364.05, and 364.055 and

12  other provisions necessary for rate base, rate of return

13  regulation.  If a small local exchange telecommunications

14  company has not elected to be regulated under s. 364.051, by

15  January 1, 2001, the company shall remain under rate base,

16  rate of return regulation until such time as a certificated

17  competitive alternative local exchange company provides basic

18  local telecommunications service in the company's territory.

19  At such time, the small local exchange telecommunications

20  company shall be subject to s. 364.051.

21         (a)  The commission shall establish, by rule, ranges of

22  basic factors for lives and salvage values to be used in

23  developing depreciation rates for companies subject to this

24  section.  Companies shall have the option of using basic

25  factors within the established ranges or of filing

26  depreciation studies.

27         (b)  The commission shall adopt, by rule, streamlined

28  procedures for regulating companies subject to this section.

29  These procedures shall minimize the burdens of regulation with

30  regard to audits, investigations, service standards, cost

31  studies, reports, and other matters, and the commission shall

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 1  establish, by rule, only those procedures that are

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

 3  universal service may be promoted.  Upon petition filed in

 4  this rulemaking proceeding, the commission shall review and

 5  may approve any regulations unique to the specific

 6  circumstances of a company subject to this section.

 7         (3)  A company subject to this section may at any time

 8  after January 1, 1996, elect to be regulated pursuant to s.

 9  364.051.  If such a company so elects or provides cable

10  television programming services directly or as video dial tone

11  applications authorized under 47 U.S.C. s. 214, except as

12  provided for in compliance with part II of this chapter, a

13  certificated competitive alternative local exchange company

14  may provide local exchange telecommunications services within

15  the territory of the electing company.

16         (4)  Any competitive alternative local exchange

17  telecommunications company competing within the territory of

18  any small local exchange telecommunications company must do so

19  on an exchange-wide basis for the provision of flat-rated,

20  switched residential and business local exchange

21  telecommunications services in all exchanges in which they

22  elect to serve, unless the commission determines otherwise.

23  The competitive alternative local exchange telecommunications

24  company may petition and the commission has the authority to

25  determine that it is in the public interest for a competitive

26  an alternative local exchange telecommunications company to

27  service a geographic territory that is less than an entire

28  exchange.

29         Section 8.  Subsection (3) is added to section 364.058,

30  Florida Statutes, to read:

31         364.058  Limited proceedings.--

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 1         (3)  The commission shall implement an expedited

 2  process to facilitate the quick resolution of disputes between

 3  telecommunications companies. The process implemented by the

 4  commission shall, to the greatest extent feasible, minimize

 5  the time necessary to reach a decision on a dispute. The

 6  commission may limit the use of the expedited process based on

 7  the number of parties, the number of issues, or the complexity

 8  of the issues. For any proceeding conducted pursuant to the

 9  expedited process, the commission shall make its determination

10  within 120 days after a petition is filed or a motion is made.

11  The commission shall adopt rules to implement this subsection.

12         Section 9.  Section 364.059, Florida Statutes, is

13  created to read:

14         364.059  Procedures for seeking stay; benchmark;

15  criteria.--

16         (1)  If a local exchange telecommunications company has

17  elected, pursuant to s. 364.051(6), to have its basic local

18  telecommunications services treated the same as its nonbasic

19  services, the following procedures shall be available:

20         (a)  Any petition filed by a substantially interested

21  party against a local exchange telecommunications company

22  seeking a stay of the effective date of a price reduction for

23  a basic local telecommunications service, alleging an

24  anticompetitive price reduction pursuant to s. 364.051(5), s.

25  364.08, s. 364.09, s. 364.10, or s. 364.3381, shall be

26  resolved by the commission pursuant to this section and by an

27  order issued within 45 days after the date the petition is

28  filed.

29         (b)  The petitioner shall provide such showing as is

30  required by law for a temporary injunction, and the local

31  

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 1  exchange telecommunications company shall have 7 days within

 2  which to respond to the petition.

 3         (c)  This section does not prevent the local exchange

 4  telecommunications company from raising any affirmative

 5  defenses provided by law.

 6         (d)  A stay may not be granted until the commission has

 7  voted on the petition after an opportunity for oral argument.

 8         (e)  If the commission grants a stay, the stay may not

 9  exceed 45 days, and the commission shall make a determination

10  on the merits within the 45-day period, unless the commission

11  extends this time period, not to exceed 15 days, based on a

12  delay in the availability of relevant cost studies and

13  supporting documents.

14         (f)  If the commission denies a stay, this section does

15  not prevent the petitioner from filing allegations of

16  anticompetitive price reductions as otherwise provided by law.

17         (g)  The petitioner shall have the burden of proof that

18  a statutory violation has occurred, but the commission and the

19  petitioner shall have access, pursuant to s. 364.183, to the

20  local exchange telecommunications company's relevant cost

21  studies and supporting documents.

22         (h)  The commission shall reject any petition within 15

23  days after filing if the local exchange telecommunications

24  company challenges the petition and the commission determines

25  that the petition on its face alleges the same violations and

26  the same facts that have previously been resolved against the

27  petitioner.

28         (2)  For purposes of carrying out the procedures set

29  forth in subsection (1), the commission shall establish an

30  objective benchmark, such as a price or cost floor, by which

31  the commission may determine whether a requested stay of a

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 1  basic local telecommunications service price reduction is

 2  warranted. Such a benchmark must be based upon generally

 3  accepted economic costing and pricing principles and judicial

 4  or regulatory costing and pricing precedent. The commission

 5  shall also establish the criteria for determining on the

 6  merits whether the basic local telecommunications service

 7  price reduction is in fact anticompetitive. Such criteria must

 8  be based upon generally accepted economic competitive costing

 9  and pricing principles and judicial or regulatory precedent

10  for detecting the presence of anticompetitive pricing.

11  However, the commission may not establish benchmarks or

12  criteria that are inconsistent with or interfere with the

13  competitive pricing conduct permitted by existing law. The

14  commission shall establish the benchmark and criteria by rule,

15  which rule adoption proceeding shall commence no earlier than

16  January 1, 2005, and a final order shall issue within 120 days

17  after commencement. Such benchmarks and criteria must be

18  available when subsection (1) becomes effective. If s.

19  364.164(8) becomes operative, the commission shall immediately

20  commence establishment of the benchmark and criteria required

21  for the procedures set forth in subsection (1) and this

22  subsection, but this section does not prevent or delay a local

23  exchange telecommunications company from making and

24  implementing the election provided for in s. 364.051(6).

25         Section 10.  Subsection (3) is added to section 364.10,

26  Florida Statutes, to read:

27         364.10  Undue advantage to person or locality

28  prohibited; exception.--

29         (3)(a)  Effective September 1, 2003, any local exchange

30  telecommunications company authorized by the commission to

31  reduce its switched network access rate pursuant to s. 364.164

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 1  shall have tariffed and shall provide Lifeline service to any

 2  otherwise eligible customer or potential customer who meets an

 3  income eligibility test at 125 percent or less of the federal

 4  poverty income guidelines for Lifeline customers. Such a test

 5  for eligibility must augment, rather than replace, the

 6  eligibility standards established by federal law and based on

 7  participation in certain low-income assistance programs. Each

 8  intrastate interexchange telecommunications company shall,

 9  effective September 1, 2003, file a tariff providing at a

10  minimum the intrastate interexchange telecommunications

11  carrier's current Lifeline benefits and exemptions to Lifeline

12  customers who meet the income eligibility test set forth in

13  this subsection. The Office of Public Counsel shall certify

14  and maintain claims submitted by a customer for eligibility

15  under the income test authorized by this subsection.

16         (b)  Each local exchange telecommunications company

17  subject to this subsection shall provide to each state and

18  federal agency providing benefits to persons eligible for

19  Lifeline service applications, brochures, pamphlets, or other

20  materials that inform such persons of their eligibility for

21  Lifeline, and each state agency providing such benefits shall

22  furnish the materials to affected persons at the time they

23  apply for benefits.

24         (c)  Any local exchange telecommunications company

25  customer receiving Lifeline benefits shall not be subject to

26  any residential basic local telecommunications service rate

27  increases authorized by s. 364.164 until the local exchange

28  telecommunications company reaches parity as defined in s.

29  364.164(5) or until the customer no longer qualifies for the

30  Lifeline benefits established by this section or s. 364.105,

31  

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 1  or unless otherwise determined by the commission upon petition

 2  by a local exchange telecommunications company.

 3         (d)  By December 31, 2003, each state agency that

 4  provides benefits to persons eligible for Lifeline service

 5  shall undertake, in cooperation with the Department of

 6  Children and Family Services, the commission, and

 7  telecommunications companies providing Lifeline services, the

 8  development of procedures to promote Lifeline participation.

 9         (e)  The commission shall report to the Governor, the

10  President of the Senate, and the Speaker of the House of

11  Representatives by December 31 each year on the number of

12  customers who are subscribing to Lifeline service and the

13  effectiveness of any procedures to promote participation.

14         Section 11.  Subsection (2), paragraph (a) of

15  subsection (3), and subsection (5) of section 364.16, Florida

16  Statutes, are amended to read:

17         364.16  Connection of lines and transfers; local

18  interconnection; telephone number portability.--

19         (2)  Each competitive alternative local exchange

20  telecommunications company shall provide access to, and

21  interconnection with, its telecommunications services to any

22  other provider of local exchange telecommunications services

23  requesting such access and interconnection at

24  nondiscriminatory prices, terms, and conditions. If the

25  parties are unable to negotiate mutually acceptable prices,

26  terms, and conditions after 60 days, either party may petition

27  the commission and the commission shall have 120 days to make

28  a determination after proceeding as required by s. 364.162(2)

29  pertaining to interconnection services.

30         (3)  Each local exchange telecommunications company

31  shall provide access to, and interconnection with, its

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 1  telecommunications facilities to any other provider of local

 2  exchange telecommunications services requesting such access

 3  and interconnection at nondiscriminatory prices, rates, terms,

 4  and conditions established by the procedures set forth in s.

 5  364.162.

 6         (a)  A No local exchange telecommunications company or

 7  competitive alternative local exchange telecommunications

 8  company may not shall knowingly deliver traffic, for which

 9  terminating access service charges would otherwise apply,

10  through a local interconnection arrangement without paying the

11  appropriate charges for such terminating access service.

12         (5)  When requested, each certificated

13  telecommunications company shall provide access to any poles,

14  conduits, rights-of-way, and like facilities that it owns or

15  controls to any local exchange telecommunications company or

16  competitive alternative local exchange telecommunications

17  company pursuant to reasonable rates and conditions mutually

18  agreed to which do not discriminate between similarly situated

19  companies.

20         Section 12.  Subsections (3) and (4) of section

21  364.161, Florida Statutes, are amended to read:

22         364.161  Unbundling and resale.--

23         (3)  Only after a competitive an alternative local

24  exchange telecommunications company has been determined to be

25  a carrier of last resort shall such company, upon request by

26  another telecommunications provider, be required, for purposes

27  of resale, to unbundle its local exchange services, network

28  features, functions and capabilities, including its local

29  loop, to the extent such unbundling is technically and

30  economically feasible.  The parties shall negotiate the terms,

31  conditions, and prices of any feasible unbundling request.  If

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 1  the parties cannot reach a satisfactory resolution within 60

 2  days, either party may petition the commission to arbitrate

 3  the dispute and the commission shall make a determination

 4  within 120 days.  The prices shall not be below cost.

 5         (4)  A local exchange telecommunications company shall

 6  provide unbundled network elements, services for resale,

 7  requested repairs, and necessary support services in a timely

 8  manner.  The Public Service Commission shall maintain a file

 9  of all complaints by competitive alternative local exchange

10  telecommunications companies against local exchange

11  telecommunications companies regarding timeliness and adequacy

12  of service. This information, including how and when each

13  complaint was resolved, shall be included with the

14  commission's annual report to the Legislature on competition.

15         Section 13.  Subsection (1) of section 364.162, Florida

16  Statutes, is amended to read:

17         364.162  Negotiated prices for interconnection and for

18  the resale of services and facilities; commission rate

19  setting.--

20         (1)  A competitive An alternative local exchange

21  telecommunications company shall have 60 days from the date it

22  is certificated to negotiate with a local exchange

23  telecommunications company mutually acceptable prices, terms,

24  and conditions of interconnection and for the resale of

25  services and facilities. If a negotiated price is not

26  established after 60 days, either party may petition the

27  commission to establish nondiscriminatory rates, terms, and

28  conditions of interconnection and for the resale of services

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

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

31  Whether set by negotiation or by the commission,

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 1  interconnection and resale prices, rates, terms, and

 2  conditions shall be filed with the commission before their

 3  effective date.  The commission shall have the authority to

 4  arbitrate any dispute regarding interpretation of

 5  interconnection or resale prices and terms and conditions.

 6         Section 14.  Section 364.163, Florida Statutes, is

 7  amended to read:

 8         364.163  Network access services.--For purposes of this

 9  section, the term "network access service" is defined as any

10  service provided by a local exchange telecommunications

11  company to a telecommunications company certificated under

12  this chapter or licensed by the Federal Communications

13  Commission to access the local exchange telecommunications

14  network, excluding the local interconnection arrangements in

15  s. 364.16 and the resale arrangements in s. 364.161. Each

16  local exchange telecommunications company subject to s.

17  364.051 shall maintain tariffs with the commission containing

18  the terms, conditions, and rates for each of its network

19  access services.

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

21  network access services of each company subject to this

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

23  1999, and shall remain capped until January 1, 2001. Upon the

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

25  access service rates of a company that elects to become

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

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

28         (1)(2)  After the termination of the caps imposed on

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

30  telecommunications company's intrastate switched network

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

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

 2  access rates shall be, and shall remain, capped for 3 years

 3  with its interstate switched access rates, a company subject

 4  to this section may, on 30 days' notice, annually adjust any

 5  specific network access service rate in an amount not to

 6  exceed the cumulative change in inflation experienced after

 7  the date of the last adjustment, provided, however, that no

 8  such adjustment shall ever exceed 3 percent annually of the

 9  then-current prices.  Inflation shall be measured by the

10  changes in Gross Domestic Product Fixed 1987 Weights Price

11  Index, or successor fixed weight price index, published in the

12  Survey of Current Business, or successor publication, by the

13  United States Department of Commerce.

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

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

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

17  rate change to recover the cost of governmentally mandated

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

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

20  government program or project required in part II of this

21  chapter shall not be recovered under this subsection unless

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

23  and subject to carrier of last resort obligations as provided

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

25  governmentally mandated projects and programs, such petition

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

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

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

29  recoverable either from the government mandating the project

30  or program or from the beneficiaries of the project or program

31  through user fees or other new revenue sources from the

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

 2  resulting from the project or program are reflected as an

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

 4  shall decrease its network access rates by amounts that

 5  reflect any federal or state income tax reduction. Nothing

 6  contained in this section shall allow any revisions in the

 7  rates, terms, and conditions for commercial mobile radio

 8  service access, which revisions are inconsistent with the

 9  requirements or methodologies of the Federal Communications

10  Commission.

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

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

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

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

15  subject to this section may choose to decrease network service

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

17  upon 7 days' notice.

18         (5)  Company-proposed changes to the terms and

19  conditions for existing network access services in accordance

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

21  valid and become effective upon 15 days' notice.

22  Company-proposed rate reductions shall become effective upon 7

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

24  telecommunications company shall be presumed valid and become

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

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

27  commission shall have continuing regulatory oversight of local

28  exchange telecommunications company-provided network access

29  services for purposes of determining the correctness of any

30  price increase resulting from the application of the inflation

31  index and making any necessary adjustments, establishing

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 1  reasonable service quality criteria, and assuring resolution

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

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

 4  determining the correctness of any price increase, vote,

 5  without hearing, the local exchange telecommunications company

 6  to hold subject to refund all revenues collected under the

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

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

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

10         (2)(6)  Any local exchange telecommunications company

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

12  telecommunications service access lines in service on July 1,

13  1995, shall reduce its intrastate switched access rates by 5

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

15  Any intrastate interexchange telecommunications company whose

16  intrastate switched network access rate is reduced as a result

17  of the rate adjustments decreases made by a local exchange

18  telecommunications company in accordance with s. 364.164 this

19  subsection shall decrease its intrastate long distance

20  revenues rates by the amount necessary to return the benefits

21  of such reduction to both its residential and business

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

23  rates by a percentage greater than the per minute intrastate

24  switched access rate reductions required by this act. The

25  intrastate interexchange telecommunications company carrier

26  may determine the specific intrastate rates to be decreased,

27  provided that residential and business customers benefit from

28  the rate decreases. Any in-state connection fee or similarly

29  named fee shall be eliminated by July 1, 2006, provided that

30  the timetable determined pursuant to s. 364.164(1) reduces

31  intrastate switched network access rates in an amount that

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 1  results in the elimination of such fee in a revenue-neutral

 2  manner. The tariff changes, if any, made by the intrastate

 3  interexchange telecommunications company to carry out the

 4  requirements of this subsection shall be presumed valid and

 5  shall become effective on 1 day's notice.

 6         (7)  Telecommunications company intrastate switched

 7  access and customer long distance rate reductions shall become

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

 9  proposed in tariff revisions filed by the telecommunications

10  companies with the commission shall be presumed valid and

11  become effective on October 1 of each relevant year.

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

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

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

15  telecommunications company to hold subject to refund all

16  intrastate switched access or customer long distance rate

17  revenues collected after the rate decrease.  Within 60 days

18  after such order, the commission must make a determination

19  either compelling a refund of the appropriate part of such

20  revenues or releasing all such revenues from such requirement.

21         (3)(9)  The commission shall have continuing regulatory

22  oversight of intrastate switched network access and customer

23  long distance rates for purposes of determining the

24  correctness of any rate decrease by a telecommunications

25  company resulting from the application of s. 364.164 this

26  section and making any necessary adjustments to those rates,

27  establishing reasonable service quality criteria, and assuring

28  resolution of service complaints.

29         Section 15.  Section 364.164, Florida Statutes, is

30  created to read:

31         364.164  Competitive market enhancement.--

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 1         (1)  Each local exchange telecommunications company

 2  may, after July 1, 2003, petition the commission to reduce its

 3  intrastate switched network access rate in a revenue-neutral

 4  manner. The commission shall issue its final order granting or

 5  denying any petition filed pursuant to this section within 90

 6  days. In reaching its decision, the commission shall consider

 7  whether granting the petition will:

 8         (a)  Remove current support for basic local

 9  telecommunications services that prevents the creation of a

10  more attractive competitive local exchange market for the

11  benefit of residential consumers.

12         (b)  Induce enhanced market entry.

13         (c)  Require intrastate switched network access rate

14  reductions to parity over a period of not less than 2 years or

15  more than 4 years.

16         (d)  Be revenue neutral as defined in subsection (7)

17  within the revenue category defined in subsection (2).

18         (2)  If the commission grants the local exchange

19  telecommunications company's petition, the local exchange

20  telecommunications company is authorized, the requirements of

21  s. 364.051(3) notwithstanding, to immediately implement a

22  revenue category mechanism consisting of basic local

23  telecommunications service revenues and intrastate switched

24  network access revenues to achieve revenue neutrality. The

25  local exchange telecommunications company shall thereafter, on

26  45 days' notice, adjust the various prices and rates of the

27  services within its revenue category authorized by this

28  section once in any 12-month period in a revenue-neutral

29  manner. An adjustment in rates may not be offset entirely by

30  the company's basic monthly recurring rate. All annual rate

31  adjustments within the revenue category established pursuant

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 1  to this section must be implemented simultaneously and must be

 2  revenue neutral. The commission shall, within 45 days after

 3  the rate adjustment filing, issue a final order confirming

 4  compliance with this section, and such an order shall be final

 5  for all purposes.

 6         (3)  Any filing under this section must be based on the

 7  company's most recent 12 months' pricing units in accordance

 8  with subsection (7) for any service included in the revenue

 9  category established under this section. The commission may

10  only verify the pricing units for the purpose of ensuring that

11  the company's specific adjustments, as authorized by this

12  section, make the revenue category revenue neutral for each

13  filing. Any discovery or information requests under this

14  section must be limited to a verification of historical

15  pricing units necessary to fulfill the commission's specific

16  responsibilities under this section of ensuring that the

17  company's rate adjustments make the revenue category revenue

18  neutral for each annual filing.

19         (4)  This section does not affect the local exchange

20  telecommunications company's exemptions pursuant to s.

21  364.051(1)(c) or authorize any local exchange

22  telecommunications company to increase the cost of local

23  exchange services to any person providing services under s.

24  364.3375.

25         (5)  As used in this section, the term "parity" means

26  that the local exchange telecommunications company's

27  intrastate switched network access rate is equal to its

28  interstate switched network access rate in effect on January

29  1, 2003, if the company has more than 1 million access lines

30  in service. If the company has 1 million or less access lines

31  in service, the term "parity" means that the company's

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 1  intrastate switched network access rate is equal to 8 cents

 2  per minute. This section does not prevent the company from

 3  making further reductions in its intrastate switched network

 4  access rate, within the revenue category established in this

 5  section, below parity on a revenue-neutral basis, or from

 6  making other revenue-neutral rate adjustments within this

 7  category.

 8         (6)  As used in this section, the term "intrastate

 9  switched network access rate" means the composite of the

10  originating and terminating network access rate for carrier

11  common line, local channel/entrance facility, switched common

12  transport, access tandem switching, interconnection charge,

13  signaling, information surcharge, and local switching.

14         (7)  As used in this section, the term "revenue

15  neutral" means that the total revenue within the revenue

16  category established pursuant to this section remains the same

17  before and after the local exchange telecommunications company

18  implements any rate adjustments under this section.

19  Calculation of revenue received from each service before the

20  implementation of any rate adjustment must be made by

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

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

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

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

25  after implementation of rate adjustments must be made by

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

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

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

29  pricing units. Billing units associated with pay telephone

30  access lines and Lifeline service may not be included in any

31  calculation under this subsection.

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 1         (8)  If either the Federal Communications Commission or

 2  the commission issues a final order determining that

 3  voice-over-internet protocol service or a functionally

 4  equivalent service shall not be subject to the payment of

 5  switched network access rates pursuant to a local exchange

 6  telecommunications company tariff or interconnection agreement

 7  or other law, the provisions of subsection (2) shall

 8  immediately become operative as if the commission had granted

 9  a petition pursuant to subsection (1). Any local exchange

10  telecommunications company subject to this section shall be

11  authorized to reduce its switched network access rates to the

12  company's authorized local reciprocal compensation rates in a

13  revenue-neutral manner, pursuant to subsections (2)-(7), in

14  the shortest remaining timeframe allowable under this section.

15         Section 16.  Section 364.337, Florida Statutes, is

16  amended to read:

17         364.337  Competitive Alternate local exchange

18  telecommunications companies; intrastate interexchange

19  telecommunications services; certification.--

20         (1)  Upon this act becoming a law, a party may file an

21  application for a certificate as a competitive an alternative

22  local exchange telecommunications company before January 1,

23  1996, and the commission shall conduct its review of the

24  application and take all actions necessary to process the

25  application. However, an application shall become effective no

26  sooner than January 1, 1996. The commission shall grant a

27  certificate of authority to provide competitive alternative

28  local exchange service upon a showing that the applicant has

29  sufficient technical, financial, and managerial capability to

30  provide such service in the geographic area proposed to be

31  served. A competitive In no event may an alternative local

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 1  exchange telecommunications company may not offer basic local

 2  telecommunications services within the territory served by a

 3  company subject to s. 364.052 prior to January 1, 2001, unless

 4  the small local exchange telecommunications company elects to

 5  be regulated under s. 364.051 or provides cable television

 6  programming services directly or as video dial tone

 7  applications authorized under 47 U.S.C. s. 214, except as

 8  provided for in compliance with part II.  It is the intent of

 9  the Legislature that the commission act expeditiously to grant

10  certificates of authority under this section and that the

11  grant of certificates not be affected by the application of

12  any criteria other than that specifically enumerated in this

13  subsection.

14         (2)  Rules adopted by the commission governing the

15  provision of competitive alternative local exchange

16  telecommunications service shall be consistent with s. 364.01.

17  The basic local telecommunications service provided by a

18  competitive an alternative local exchange telecommunications

19  company must include access to operator services, "911"

20  services, and relay services for the hearing impaired. A

21  competitive An alternative local exchange telecommunications

22  company's "911" service shall be provided at a level

23  equivalent to that provided by the local exchange

24  telecommunications company serving the same area. There shall

25  be a flat-rate pricing option for basic local

26  telecommunications services, and mandatory measured service

27  for basic local telecommunications services shall not be

28  imposed. A certificated competitive alternative local exchange

29  telecommunications company may petition the commission for a

30  waiver of some or all of the requirements of this chapter,

31  except ss. 364.16, 364.336, and subsections (1) and (5).  The

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 1  commission may grant such petition if determined to be in the

 2  public interest.  Competitive In no event shall alternative

 3  local exchange telecommunications companies are not be subject

 4  to the requirements of ss. 364.03, 364.035, 364.037, 364.05,

 5  364.055, 364.14, 364.17, 364.18, 364.33, and 364.3381.

 6         (3)  The commission shall grant a certificate of

 7  authority to provide intrastate interexchange

 8  telecommunications service upon a showing that the applicant

 9  has sufficient technical, financial, and managerial capability

10  to provide such service in the geographic area proposed to be

11  served.

12         (4)  Rules adopted by the commission governing the

13  provision of intrastate interexchange telecommunications

14  service must shall be consistent with s. 364.01.  A

15  certificated intrastate interexchange telecommunications

16  company may petition the commission for a waiver for some or

17  all of the requirements of this chapter, except s. 364.16, s.

18  364.335(3), or subsection (5).  The commission may grant such

19  petition if determined to be in the public interest. In no

20  event shall Intrastate interexchange telecommunications

21  companies are not be subject to the requirements of ss.

22  364.03, 364.035, 364.037, 364.05, 364.055, 364.14, 364.17,

23  364.18, and 364.3381.

24         (5)  The commission shall have continuing regulatory

25  oversight over the provision of basic local exchange

26  telecommunications service provided by a certificated

27  competitive alternative local exchange telecommunications

28  company or a certificated alternative access vendor for

29  purposes of establishing reasonable service quality criteria,

30  assuring resolution of service complaints, and ensuring the

31  

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 1  fair treatment of all telecommunications providers in the

 2  telecommunications marketplace.

 3         (6)(a)  The Legislature finds the provision of

 4  alternative access vendor services to be in the public

 5  interest, and the commission may authorize the provision of

 6  such service.  For the purposes of this section, effective

 7  January 1, 1996, the term "alternative access vendor services"

 8  means the provision of private line service between an entity

 9  and facilities at another location, whether owned by the

10  entity or an unaffiliated entity or access service between an

11  end user and an interexchange carrier by other than a local

12  exchange telecommunications company.  For purposes of this

13  chapter, the term "private line service" means any dedicated

14  point-to-point or point-to-multipoint service for the

15  transmission of any public telecommunications service.

16         (b)  A No person may not shall provide alternative

17  access vendor services without first obtaining a certificate

18  from the commission. Any certificated alternative access

19  vendor as of the date this act becomes a law wishing to

20  provide alternative local exchange telecommunications service

21  in addition to the services authorized in its certificate may

22  do so, effective January 1, 1996, upon furnishing written

23  notice to the commission.

24         Section 17.  Subsection (1) of section 364.3376,

25  Florida Statutes, is amended to read:

26         364.3376  Operator services.--

27         (1)(a)  A No person may not shall provide operator

28  services as defined in s. 364.02 without first obtaining from

29  the commission a certificate of public convenience and

30  necessity as either an operator services provider or an

31  interexchange telecommunications company.

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 1         (b)  The provisions of This section does shall not

 2  apply to operator services provided by a local exchange

 3  telecommunications company or by an intrastate interexchange

 4  telecommunications company, except as required by the

 5  commission in the public interest.

 6         Section 18.  Subsection (1) of section 364.502, Florida

 7  Statutes, is amended to read:

 8         364.502  Video programming; capacity for public use.--

 9         (1)  Each local exchange telecommunications company or

10  competitive alternative local exchange telecommunications

11  company which provides video programming shall, prior to

12  providing such programming, file with the commission a

13  designation of reserve capacity for public, educational, or

14  governmental use. The commission shall review the filed

15  designation to determine whether such designation ensures that

16  public education and public information programming are

17  adequately available to the customers of such

18  telecommunications company. The commission shall consider the

19  following factors in determining whether the filed designation

20  complies with the requirements of this chapter:

21         (a)  Reservation and designation requirements provided

22  by federal law, if any.

23         (b)  The level of demand for such programming in a

24  given service area.

25         (c)  The barriers to providing such programming in the

26  service area.

27         (d)  The cost and availability of such programming in

28  the service area.

29         (e)  Other factors which the commission deems

30  appropriate.

31  

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 1         Section 19.  Paragraph (i) of subsection (3) of section

 2  365.172, Florida Statutes, is amended to read:

 3         365.172  Wireless emergency telephone number "E911."--

 4         (3)  DEFINITIONS.--As used in this section and ss.

 5  365.173 and 365.174, the term:

 6         (i)  "Local exchange carrier" means a an "competitive

 7  alternative local exchange telecommunications company" or a

 8  "local exchange telecommunications company" as defined in s.

 9  364.02.

10         Section 20.  Subsection (6) of section 196.012, Florida

11  Statutes, is amended to read:

12         196.012  Definitions.--For the purpose of this chapter,

13  the following terms are defined as follows, except where the

14  context clearly indicates otherwise:

15         (6)  Governmental, municipal, or public purpose or

16  function shall be deemed to be served or performed when the

17  lessee under any leasehold interest created in property of the

18  United States, the state or any of its political subdivisions,

19  or any municipality, agency, special district, authority, or

20  other public body corporate of the state is demonstrated to

21  perform a function or serve a governmental purpose which could

22  properly be performed or served by an appropriate governmental

23  unit or which is demonstrated to perform a function or serve a

24  purpose which would otherwise be a valid subject for the

25  allocation of public funds. For purposes of the preceding

26  sentence, an activity undertaken by a lessee which is

27  permitted under the terms of its lease of real property

28  designated as an aviation area on an airport layout plan which

29  has been approved by the Federal Aviation Administration and

30  which real property is used for the administration, operation,

31  business offices and activities related specifically thereto

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 1  in connection with the conduct of an aircraft full service

 2  fixed base operation which provides goods and services to the

 3  general aviation public in the promotion of air commerce shall

 4  be deemed an activity which serves a governmental, municipal,

 5  or public purpose or function. Any activity undertaken by a

 6  lessee which is permitted under the terms of its lease of real

 7  property designated as a public airport as defined in s.

 8  332.004(14) by municipalities, agencies, special districts,

 9  authorities, or other public bodies corporate and public

10  bodies politic of the state, a spaceport as defined in s.

11  331.303(19), or which is located in a deepwater port

12  identified in s. 403.021(9)(b) and owned by one of the

13  foregoing governmental units, subject to a leasehold or other

14  possessory interest of a nongovernmental lessee that is deemed

15  to perform an aviation, airport, aerospace, maritime, or port

16  purpose or operation shall be deemed an activity that serves a

17  governmental, municipal, or public purpose. The use by a

18  lessee, licensee, or management company of real property or a

19  portion thereof as a convention center, visitor center, sports

20  facility with permanent seating, concert hall, arena, stadium,

21  park, or beach is deemed a use that serves a governmental,

22  municipal, or public purpose or function when access to the

23  property is open to the general public with or without a

24  charge for admission. If property deeded to a municipality by

25  the United States is subject to a requirement that the Federal

26  Government, through a schedule established by the Secretary of

27  the Interior, determine that the property is being maintained

28  for public historic preservation, park, or recreational

29  purposes and if those conditions are not met the property will

30  revert back to the Federal Government, then such property

31  shall be deemed to serve a municipal or public purpose. The

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 1  term "governmental purpose" also includes a direct use of

 2  property on federal lands in connection with the Federal

 3  Government's Space Exploration Program or spaceport activities

 4  as defined in s. 212.02(22). Real property and tangible

 5  personal property owned by the Federal Government or the

 6  Florida Space Authority and used for defense and space

 7  exploration purposes or which is put to a use in support

 8  thereof shall be deemed to perform an essential national

 9  governmental purpose and shall be exempt. "Owned by the

10  lessee" as used in this chapter does not include personal

11  property, buildings, or other real property improvements used

12  for the administration, operation, business offices and

13  activities related specifically thereto in connection with the

14  conduct of an aircraft full service fixed based operation

15  which provides goods and services to the general aviation

16  public in the promotion of air commerce provided that the real

17  property is designated as an aviation area on an airport

18  layout plan approved by the Federal Aviation Administration.

19  For purposes of determination of "ownership," buildings and

20  other real property improvements which will revert to the

21  airport authority or other governmental unit upon expiration

22  of the term of the lease shall be deemed "owned" by the

23  governmental unit and not the lessee. Providing two-way

24  telecommunications services to the public for hire by the use

25  of a telecommunications facility, as defined in s. 364.02(14)

26  s. 364.02(13), and for which a certificate is required under

27  chapter 364 does not constitute an exempt use for purposes of

28  s. 196.199, unless the telecommunications services are

29  provided by the operator of a public-use airport, as defined

30  in s. 332.004, for the operator's provision of

31  telecommunications services for the airport or its tenants,

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 1  concessionaires, or licensees, or unless the

 2  telecommunications services are provided by a public hospital.

 3  However, property that is being used to provide such

 4  telecommunications services on or before October 1, 1997,

 5  shall remain exempt, but such exemption expires October 1,

 6  2004.

 7         Section 21.  Paragraph (b) of subsection (1) of section

 8  199.183, Florida Statutes, is amended to read:

 9         199.183  Taxpayers exempt from annual and nonrecurring

10  taxes.--

11         (1)  Intangible personal property owned by this state

12  or any of its political subdivisions or municipalities shall

13  be exempt from taxation under this chapter. This exemption

14  does not apply to:

15         (b)  Property related to the provision of two-way

16  telecommunications services to the public for hire by the use

17  of a telecommunications facility, as defined in s. 364.02(14)

18  s. 364.02(13), and for which a certificate is required under

19  chapter 364, when such service is provided by any county,

20  municipality, or other political subdivision of the state. Any

21  immunity of any political subdivision of the state or other

22  entity of local government from taxation of the property used

23  to provide telecommunication services that is taxed as a

24  result of this paragraph is hereby waived. However, intangible

25  personal property related to the provision of such

26  telecommunications services provided by the operator of a

27  public-use airport, as defined in s. 332.004, for the

28  operator's provision of telecommunications services for the

29  airport or its tenants, concessionaires, or licensees, and

30  intangible personal property related to the provision of such

31  

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 1  telecommunications services provided by a public hospital, are

 2  exempt from taxation under this chapter.

 3         Section 22.  Subsection (6) of section 212.08, Florida

 4  Statutes, is amended to read:

 5         212.08  Sales, rental, use, consumption, distribution,

 6  and storage tax; specified exemptions.--The sale at retail,

 7  the rental, the use, the consumption, the distribution, and

 8  the storage to be used or consumed in this state of the

 9  following are hereby specifically exempt from the tax imposed

10  by this chapter.

11         (6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are

12  also exempt from the tax imposed by this chapter sales made to

13  the United States Government, a state, or any county,

14  municipality, or political subdivision of a state when payment

15  is made directly to the dealer by the governmental entity.

16  This exemption shall not inure to any transaction otherwise

17  taxable under this chapter when payment is made by a

18  government employee by any means, including, but not limited

19  to, cash, check, or credit card when that employee is

20  subsequently reimbursed by the governmental entity. This

21  exemption does not include sales of tangible personal property

22  made to contractors employed either directly or as agents of

23  any such government or political subdivision thereof when such

24  tangible personal property goes into or becomes a part of

25  public works owned by such government or political

26  subdivision. A determination whether a particular transaction

27  is properly characterized as an exempt sale to a government

28  entity or a taxable sale to a contractor shall be based on the

29  substance of the transaction rather than the form in which the

30  transaction is cast. The department shall adopt rules that

31  give special consideration to factors that govern the status

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 1  of the tangible personal property before its affixation to

 2  real property. In developing these rules, assumption of the

 3  risk of damage or loss is of paramount consideration in the

 4  determination. This exemption does not include sales, rental,

 5  use, consumption, or storage for use in any political

 6  subdivision or municipality in this state of machines and

 7  equipment and parts and accessories therefor used in the

 8  generation, transmission, or distribution of electrical energy

 9  by systems owned and operated by a political subdivision in

10  this state for transmission or distribution expansion.

11  Likewise exempt are charges for services rendered by radio and

12  television stations, including line charges, talent fees, or

13  license fees and charges for films, videotapes, and

14  transcriptions used in producing radio or television

15  broadcasts. The exemption provided in this subsection does not

16  include sales, rental, use, consumption, or storage for use in

17  any political subdivision or municipality in this state of

18  machines and equipment and parts and accessories therefor used

19  in providing two-way telecommunications services to the public

20  for hire by the use of a telecommunications facility, as

21  defined in s. 364.02(14) s. 364.02(13), and for which a

22  certificate is required under chapter 364, which facility is

23  owned and operated by any county, municipality, or other

24  political subdivision of the state.  Any immunity of any

25  political subdivision of the state or other entity of local

26  government from taxation of the property used to provide

27  telecommunication services that is taxed as a result of this

28  section is hereby waived.  However, the exemption provided in

29  this subsection includes transactions taxable under this

30  chapter which are for use by the operator of a public-use

31  airport, as defined in s. 332.004, in providing such

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 1  telecommunications services for the airport or its tenants,

 2  concessionaires, or licensees, or which are for use by a

 3  public hospital for the provision of such telecommunications

 4  services.

 5         Section 23.  Subsection (8) of section 290.007, Florida

 6  Statutes, is amended to read:

 7         290.007  State incentives available in enterprise

 8  zones.--The following incentives are provided by the state to

 9  encourage the revitalization of enterprise zones:

10         (8)  Notwithstanding any law to the contrary, the

11  Public Service Commission may allow public utilities and

12  telecommunications companies to grant discounts of up to 50

13  percent on tariffed rates for services to small businesses

14  located in an enterprise zone designated pursuant to s.

15  290.0065. Such discounts may be granted for a period not to

16  exceed 5 years. For purposes of this subsection, the term

17  "public utility" has the same meaning as in s. 366.02(1) and

18  the term "telecommunications company" has the same meaning as

19  in s. 364.02(13) s. 364.02(12).

20         Section 24.  Subsection (3) of section 350.0605,

21  Florida Statutes, is amended to read:

22         350.0605  Former commissioners and employees;

23  representation of clients before commission.--

24         (3)  For a period of 2 years following termination of

25  service on the commission, a former member may not accept

26  employment by or compensation from a business entity which,

27  directly or indirectly, owns or controls a public utility

28  regulated by the commission, from a public utility regulated

29  by the commission, from a business entity which, directly or

30  indirectly, is an affiliate or subsidiary of a public utility

31  regulated by the commission or is an actual business

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 1  competitor of a local exchange company or public utility

 2  regulated by the commission and is otherwise exempt from

 3  regulation by the commission under ss. 364.02(13) 364.02(12)

 4  and 366.02(1), or from a business entity or trade association

 5  that has been a party to a commission proceeding within the 2

 6  years preceding the member's termination of service on the

 7  commission.  This subsection applies only to members of the

 8  Florida Public Service Commission who are appointed or

 9  reappointed after May 10, 1993.

10         Section 25.  Subsection (4) of section 364.602, Florida

11  Statutes, is amended to read:

12         364.602  Definitions.--For purposes of this part:

13         (4)  "Originating party" means any person, firm,

14  corporation, or other entity, including a telecommunications

15  company or a billing clearinghouse, that provides any

16  telecommunications service or information service to a

17  customer or bills a customer through a billing party, except

18  the term "originating party" does not include any entity

19  specifically exempted from the definition of

20  "telecommunications company" as provided in s. 364.02(13) s.

21  364.02(12).

22         Section 26.  Subsection (5) of section 489.103, Florida

23  Statutes, is amended to read:

24         489.103  Exemptions.--This part does not apply to:

25         (5)  Public utilities, including special gas districts

26  as defined in chapter 189, telecommunications companies as

27  defined in s. 364.02(13) s. 364.02(12), and natural gas

28  transmission companies as defined in s. 368.103(4), on

29  construction, maintenance, and development work performed by

30  their employees, which work, including, but not limited to,

31  work on bridges, roads, streets, highways, or railroads, is

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 1  incidental to their business. The board shall define, by rule,

 2  the term "incidental to their business" for purposes of this

 3  subsection.

 4         Section 27.  This act shall take effect upon becoming a

 5  law.

 6  

 7  

 8  

 9  

10  

11  

12  

13  

14  

15  

16  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                              SB 654

 3                                 

 4  The Committee Substitute for SB 654 does the following:

 5  -This committee substitute creates the Tele-Competition
    Innovation and Infrastructure Enhancement Act of 2003.
 6  
    -Voice over internet protocol (VOIP) service is exempt from
 7  commission regulation and broadband or information services is
    exempt from local government regulation. In addition,
 8  intrastate interexchange telecommunications companies (IXCs)
    are not considered telecommunications companies except in
 9  certain circumstances and eliminates the requirement that IXCs
    providing operator service obtain a certificate or be subject
10  to greater regulation than the incumbent local exchange
    telecommunications companies (ILECs).
11  
    -The ILECs' universal service and carrier-of-last-resort
12  obligations are extended until January 1, 2009. The Public
    Service Commission is required to determine whether it has the
13  necessary authority to address a different universal service
    support mechanism for small local exchange telecommunications
14  companies under certain circumstances. The commission is to
    report its finding to the Legislature or recommend statutory
15  changes, if necessary.

16  -Lifeline participation is increased to 125 percent of federal
    poverty income level and requires certain actions by
17  companies, state agencies, and the commission to increase
    subscribership. The commission is to report to the Legislature
18  Lifeline status.

19  -References to alternative local exchange telecommunications
    companies(ALECs) are changed to competitive local exchange
20  telecommunications companies (CLECs).

21  -Allows ILECs to petition the commission to reduce its access
    charges to parity in a revenue neutral manner and provides the
22  criteria the commission must consider when rendering its
    decision. "Parity" is defined as the interstate switched
23  network access rates in effect on January 1, 2003. Caps
    network access charges at parity levels for three years after
24  parity is reached and requires IXCs to pass through access
    reductions and eliminate any "instate connection fees."
25  
    -If an ILEC with more than one million access lines in service
26  reduces its access charges to parity, then it may have its
    basic local services (residential and single line business)
27  treated in the same manner as its non-basic services and its
    retail service quality requirements no greater than the
28  service requirements then being imposed on the CLEC, unless
    the PSC determines otherwise under certain conditions. Allows
29  an ILEC to petition for retail regulatory treatment no greater
    than CLECs when the ILEC has elected to treat its basic local
30  services the same as its non-basic service when certain
    conditions are met. Applies these conditions to small local
31  exchange telecommunications companies that have reduced their
    intrastate switched network access rates to a level equal to
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 1  their rates in effect on January 1, 2003.

 2  -Creates a procedure for staying and resolving reductions of
    basic service prices in an anti-competitive manner when
 3  certain conditions are met.  Creates a limited proceeding to
    quickly resolve disputes between telecommunications companies.
 4  
    -Makes cross reference corrections and conforming terminology.
 5  

 6  

 7  

 8  

 9  

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