Senate Bill sb0654er

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    2003 Legislature                  CS for SB 654, 1st Engrossed



  1                                 

  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; amending

31         s. 365.0361, F.S.; providing exclusivity for


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    2003 Legislature                  CS for SB 654, 1st Engrossed



 1         certain regulations; amending s. 364.051, F.S.;

 2         conforming terminology; providing circumstances

 3         under which certain telecommunications

 4         companies may elect alternative regulations;

 5         providing an exception; prohibiting an increase

 6         in certain regulations on competitive local

 7         exchange telecommunications companies; amending

 8         s. 364.052, F.S.; conforming terminology;

 9         amending s. 364.058, F.S.; providing for an

10         expedited process to facilitate quick

11         resolution of disputes between

12         telecommunications companies; providing

13         rulemaking authority; creating s. 364.059,

14         F.S.; providing procedures for staying election

15         of local exchange telecommunications companies

16         to be subject to alternative regulations;

17         requiring the Public Service Commission to

18         provide benchmarks and criteria for granting

19         stays; providing rulemaking authority; amending

20         s. 364.10, F.S.; requiring certain local

21         exchange telecommunications companies to

22         provide Lifeline services to certain persons;

23         providing for eligibility determinations by the

24         Public Counsel for receipt of such services;

25         prohibiting rate increases for basic local

26         telecommunications services provided to such

27         eligible persons; requiring distribution of

28         certain materials; requiring annual reports;

29         amending ss. 364.16, 364.161, and 364.162,

30         F.S.; conforming terminology; amending s.

31         364.163, F.S.; deleting obsolete language;


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    2003 Legislature                  CS for SB 654, 1st Engrossed



 1         changing period in which intrastate access

 2         rates are capped; removing limitations on

 3         certain rate increases; eliminating certain

 4         fees; providing presumption of validity for

 5         certain tariff changes made by intrastate

 6         interexchange telecommunications companies;

 7         creating s. 364.164, F.S.; authorizing local

 8         exchange telecommunications companies to

 9         petition the Public Service Commission for

10         reduction of intrastate network access rates

11         under certain circumstances; requiring revenue

12         neutrality; providing criteria for the

13         commission to consider; amending s. 364.337,

14         F.S.; conforming terminology; amending s.

15         364.3376, F.S.; eliminating the requirement

16         that intrastate interexchange

17         telecommunications companies obtain a

18         certificate of public convenience prior to

19         providing operator services; amending ss.

20         364.502 and 365.172, F.S.; conforming

21         terminology; amending ss. 196.012, 199.183,

22         212.08, 290.007, 350.0605, 364.602, and

23         489.103, F.S.; correcting cross-references to

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

25  

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

27  

28         Section 1.  This act may be cited as the

29  "Tele-Competition Innovation and Infrastructure Enhancement

30  Act."

31  


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    2003 Legislature                  CS for SB 654, 1st Engrossed



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

 2  Statutes, is amended to read:

 3         364.01  Powers of commission, legislative intent.--

 4         (3)  The Legislature finds that the competitive

 5  provision of telecommunications services, including local

 6  exchange telecommunications service, is in the public interest

 7  and will provide customers with freedom of choice, encourage

 8  the introduction of new telecommunications service, encourage

 9  technological innovation, and encourage investment in

10  telecommunications infrastructure.  The Legislature further

11  finds that the transition from the monopoly provision of local

12  exchange service to the competitive provision thereof will

13  require appropriate regulatory oversight to protect consumers

14  and provide for the development of fair and effective

15  competition, but nothing in this chapter shall limit the

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

17  antitrust laws.  The Legislature further finds that changes in

18  regulations allowing increased competition in

19  telecommunications services could provide the occasion for

20  increases in the telecommunications workforce; therefore, it

21  is in the public interest that competition in

22  telecommunications services lead to a situation that enhances

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

24  telecommunications workforce. The Legislature further finds

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

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

27  the public interest.

28         Section 3.  Section 364.02, Florida Statutes, is

29  amended to read:

30         364.02  Definitions.--As used in this chapter:

31  


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    2003 Legislature                  CS for SB 654, 1st Engrossed



 1         (1)  "Alternative local exchange telecommunications

 2  company" means any company certificated by the commission to

 3  provide local exchange telecommunications services in this

 4  state on or after July 1, 1995.

 5         (1)(2)  "Basic local telecommunications service" means

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

 7  business local exchange services which provide dial tone,

 8  local usage necessary to place unlimited calls within a local

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

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

11  available interexchange companies, directory assistance,

12  operator services, relay services, and an alphabetical

13  directory listing. For a local exchange telecommunications

14  company, such term shall include any extended area service

15  routes, and extended calling service in existence or ordered

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

17         (2)(3)  "Commercial mobile radio service provider"

18  means a commercial mobile radio service provider as defined by

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

20         (3)(4)  "Commission" means the Florida Public Service

21  Commission.

22         (4)  "Competitive local exchange telecommunications

23  company" means any company certificated by the commission to

24  provide local exchange telecommunications services in this

25  state on or after July 1, 1995.

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

27  association, or joint stock association.

28         (6)  "Intrastate interexchange telecommunications

29  company" means any entity that provides intrastate

30  interexchange telecommunications services.

31  


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    2003 Legislature                  CS for SB 654, 1st Engrossed



 1         (7)(6)  "Local exchange telecommunications company"

 2  means any company certificated by the commission to provide

 3  local exchange telecommunications service in this state on or

 4  before June 30, 1995.

 5         (8)(7)  "Monopoly service" means a telecommunications

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

 7  fact or by operation of law.

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

 9  service provided by a local exchange telecommunications

10  company other than a basic local telecommunications service, a

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

12  network access service described in s. 364.163.

13         (10)(9)  "Operator service" includes, but is not

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

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

16  calls through the use of a live operator or automated

17  equipment.

18         (11)(10)  "Operator service provider" means a person

19  who furnishes operator service through a call aggregator.

20         (12)(11)  "Service" is to be construed in its broadest

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

22  voice-over-internet protocol service for purposes of

23  regulation by the commission. Nothing herein shall affect the

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

25  switched network access rates or other intercarrier

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

27  service.

28         (13)(12)  "Telecommunications company" includes every

29  corporation, partnership, and person and their lessees,

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

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


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    2003 Legislature                  CS for SB 654, 1st Engrossed



 1  telecommunications service to the public for hire within this

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

 3  "telecommunications company" does not include:

 4         (a)  An entity which provides a telecommunications

 5  facility exclusively to a certificated telecommunications

 6  company;

 7         (b)  An entity which provides a telecommunications

 8  facility exclusively to a company which is excluded from the

 9  definition of a telecommunications company under this

10  subsection;

11         (c)  A commercial mobile radio service provider;

12         (d)  A facsimile transmission service;

13         (e)  A private computer data network company not

14  offering service to the public for hire; or

15         (f)  A cable television company providing cable service

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

17         (g)  An intrastate interexchange telecommunications

18  company.

19  

20  However, each commercial mobile radio service provider and

21  each intrastate interexchange telecommunications company shall

22  continue to be liable for any taxes imposed pursuant to

23  chapters 202, 203 and 212 and any fees assessed pursuant to

24  ss. s. 364.025 and 364.336. Each intrastate interexchange

25  telecommunications company shall continue to be subject to ss.

26  364.04, 364.10(3)(a) and (d), 364.285, 364.163, 364.501,

27  364.603, and 364.604, shall provide the commission with such

28  current information as the commission deems necessary to

29  contact and communicate with the company, shall continue to

30  pay intrastate switched network access rates or other

31  intercarrier compensation to the local exchange


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 1  telecommunications company or the competitive local exchange

 2  telecommunications company for the origination and termination

 3  of interexchange telecommunications service, and shall reduce

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

 5  364.163(2).

 6         (14)(13)  "Telecommunications facility" includes real

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

 8  operated to provide two-way telecommunications service to the

 9  public for hire within this state.

10         Section 4.  Section 364.025, Florida Statutes, is

11  amended to read:

12         364.025  Universal service.--

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

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

15  telecommunications services that, taking into account advances

16  in technologies, services, and market demand for essential

17  services, the commission determines should be provided at

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

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

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

21  service objectives be maintained after the local exchange

22  market is opened to competitively provided services.  It is

23  also the intent of the Legislature that during this transition

24  period the ubiquitous nature of the local exchange

25  telecommunications companies be used to satisfy these

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

27  after January 1, 1996, each local exchange telecommunications

28  company shall be required to furnish basic local exchange

29  telecommunications service within a reasonable time period to

30  any person requesting such service within the company's

31  service territory.


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    2003 Legislature                  CS for SB 654, 1st Engrossed



 1         (2)  The Legislature finds that each telecommunications

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

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

 4  obligations.  For a transitional period not to exceed January

 5  1, 2009 2004, the interim mechanism for maintaining universal

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

 7  obligations shall be established by the commission, pending

 8  the implementation of a permanent mechanism.  The interim

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

10  competitive alternative local exchange telecommunications

11  company contributes its fair share to the support of universal

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

13  mechanism applied to each competitive alternative local

14  exchange telecommunications company shall reflect a fair share

15  of the local exchange telecommunications company's recovery of

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

17  obligations, and the maintenance of universal service

18  objectives. The commission shall ensure that the interim

19  mechanism does not impede the development of residential

20  consumer choice or create an unreasonable barrier to

21  competition.  In reaching its determination, the commission

22  shall not inquire into or consider any factor that is

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

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

25  chapter shall not be recovered under this section.

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

27  2009 2004, believes that circumstances have changed

28  substantially to warrant a change in the interim mechanism,

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

30  commission shall grant such petition only after an opportunity

31  for a hearing and a compelling showing of changed


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    2003 Legislature                  CS for SB 654, 1st Engrossed



 1  circumstances, including that the provider's customer

 2  population includes as many residential as business customers.

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

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

 5  shall establish a permanent universal service mechanism upon

 6  the effective date of which any interim recovery mechanism for

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

 8  obligations imposed on competitive alternative local exchange

 9  telecommunications companies shall terminate.

10         (b)  To assist the Legislature in establishing a

11  permanent universal service mechanism, the commission, by

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

13  of the Senate and the Speaker of the House of Representatives

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

15  commercially available technology and equipment and generally

16  accepted design and placement principles, of providing basic

17  local telecommunications service on a basis no greater than a

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

19  the commission after notice and opportunity for hearing.

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

21  telecommunications service for small local exchange

22  telecommunications companies, which serve less than 100,000

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

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

25  mechanism is implemented by the Federal Government for small

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

27  shall calculate a small local exchange telecommunications

28  company's cost of providing basic local telecommunications

29  services based on one of the following options:

30         1.  A different proxy model; or

31  


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 1         2.  A fully distributed allocation of embedded costs,

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

 3  company serves and including all embedded investments and

 4  expenses incurred by the company in the provision of universal

 5  service. Such calculations may be made using fully distributed

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

 7  geographic basis for the calculations shall be no smaller than

 8  a census block group.

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

10  alternative local exchange telecommunications company may

11  petition the commission to become the universal service

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

13  served by that competitive alternative local exchange

14  telecommunications company. Upon petition of a competitive an

15  alternative local exchange telecommunications company, the

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

17  in part or denying the petition of the competitive alternative

18  local exchange company. The commission may establish the

19  competitive 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  competitive alternative local exchange telecommunications

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

24  order establishing the competitive alternative local exchange

25  telecommunications company as the universal service provider

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

27  period of time in which such company must meet those

28  objectives and obligations and shall set up any mechanism

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

30         Section 5.  Section 364.0361, Florida Statutes, is

31  amended to read:


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 1         364.0361  Local government authority; nondiscriminatory

 2  exercise.--A local government shall treat each

 3  telecommunications company in a nondiscriminatory manner when

 4  exercising its authority to grant franchises to a

 5  telecommunications company or to otherwise establish

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

 7  other public property by a telecommunications company. A local

 8  government may not directly or indirectly regulate the terms

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

10  systems, qualifications, services, service quality, service

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

12  provision of any broadband or information service. This

13  section does not relieve a provider from any obligations under

14  s. 166.046 or s. 337.401.

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

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

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

18  section, to read:

19         364.051  Price regulation.--

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

21  this chapter, the following local exchange telecommunications

22  companies shall become subject to the price regulation

23  described in this section on the following dates:

24         (a)  For a local exchange telecommunications company

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

26  1995, such company may file with the commission a notice of

27  election to be under price regulation effective January 1,

28  1996, or when a competitive an alternative local exchange

29  telecommunications company is certificated to provide local

30  exchange telecommunications services in its service territory,

31  whichever is later.


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    2003 Legislature                  CS for SB 654, 1st Engrossed



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

 2  level of competition justifies the elimination of price caps

 3  in an exchange served by a local exchange telecommunications

 4  company with less than 3 million basic local

 5  telecommunications service access lines in service, or at the

 6  end of 5 years for any local exchange telecommunications

 7  company, the local exchange telecommunications company may

 8  thereafter on 30 days' notice adjust its basic service

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

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

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

12  Fixed 1987 Weights Price Index, or successor fixed weight

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

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

15  the event any local exchange telecommunications company, after

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

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

18  company may petition the Legislature.

19         (6)  After a local exchange telecommunications company

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

21  reduced its intrastate switched network access rates to

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

23  telecommunications company's basic local telecommunications

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

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

26  retail service quality requirements that are not already equal

27  to the service quality requirements imposed upon the

28  competitive local exchange telecommunications companies shall

29  thereafter be no greater than those imposed upon competitive

30  local exchange telecommunications companies unless the

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


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

 2  some reductions in service quality requirements in some or all

 3  of the company's local calling areas. The commission may not

 4  impose retail service quality requirements on competitive

 5  local exchange telecommunications companies greater than those

 6  existing on January 1, 2003.

 7         (7)  If a local exchange telecommunications company

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

 9  basic local telecommunications services to the same regulatory

10  treatment as its nonbasic services, the local exchange

11  telecommunications company may petition the commission for

12  regulatory treatment of its retail services at a level no

13  greater than that imposed by the commission upon competitive

14  local exchange telecommunications companies. The local

15  exchange telecommunications company shall:

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

17  interest;

18         (b)  Reduce its intrastate switched network access

19  rates to its local reciprocal interconnection rate upon the

20  grant of the petition.

21  

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

23  after its filing with the commission. In making its

24  determination to either grant or deny the petition, the

25  commission shall determine the extent to which the level of

26  competition faced by the local exchange telecommunications

27  company permits and will continue to permit the company to

28  have its retail services regulated no differently than the

29  competitive local exchange telecommunications companies are

30  then being regulated. The commission may not increase the

31  level of regulation for competitive local exchange


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 1  telecommunications companies to a level greater than that

 2  which exists on the date the local exchange telecommunications

 3  company files its petition.

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

 5  shall apply to any local exchange telecommunications company

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

 7  intrastate switched network access rates to a level equal to

 8  the company's interstate switched network access rates in

 9  effect on January 1, 2003.

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

11  364.052, Florida Statutes, are amended to read:

12         364.052  Regulatory methods for small local exchange

13  telecommunications companies.--

14         (2)  A small local exchange telecommunications company

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

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

17  1, 2001, whichever occurs first. A company subject to this

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

19  have any overearnings attributable to a period prior to the

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

21  or other disposition by the commission.  Small local exchange

22  telecommunications companies not electing the price regulation

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

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

25  other provisions necessary for rate base, rate of return

26  regulation.  If a small local exchange telecommunications

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

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

29  rate of return regulation until such time as a certificated

30  competitive alternative local exchange company provides basic

31  local telecommunications service in the company's territory.


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 1  At such time, the small local exchange telecommunications

 2  company shall be subject to s. 364.051.

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

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

 5  developing depreciation rates for companies subject to this

 6  section.  Companies shall have the option of using basic

 7  factors within the established ranges or of filing

 8  depreciation studies.

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

10  procedures for regulating companies subject to this section.

11  These procedures shall minimize the burdens of regulation with

12  regard to audits, investigations, service standards, cost

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

14  establish, by rule, only those procedures that are

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

16  universal service may be promoted.  Upon petition filed in

17  this rulemaking proceeding, the commission shall review and

18  may approve any regulations unique to the specific

19  circumstances of a company subject to this section.

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

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

22  364.051.  If such a company so elects or provides cable

23  television programming services directly or as video dial tone

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

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

26  certificated competitive alternative local exchange company

27  may provide local exchange telecommunications services within

28  the territory of the electing company.

29         (4)  Any competitive alternative local exchange

30  telecommunications company competing within the territory of

31  any small local exchange telecommunications company must do so


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    2003 Legislature                  CS for SB 654, 1st Engrossed



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

 2  switched residential and business local exchange

 3  telecommunications services in all exchanges in which they

 4  elect to serve, unless the commission determines otherwise.

 5  The competitive alternative local exchange telecommunications

 6  company may petition and the commission has the authority to

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

 8  an alternative local exchange telecommunications company to

 9  service a geographic territory that is less than an entire

10  exchange.

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

12  Florida Statutes, to read:

13         364.058  Limited proceedings.--

14         (3)  The commission shall implement an expedited

15  process to facilitate the quick resolution of disputes between

16  telecommunications companies. The process implemented by the

17  commission shall, to the greatest extent feasible, minimize

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

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

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

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

22  expedited process, the commission shall make its determination

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

24  The commission shall adopt rules to implement this subsection.

25         Section 9.  Section 364.059, Florida Statutes, is

26  created to read:

27         364.059  Procedures for seeking stay; benchmark;

28  criteria.--

29         (1)  If a local exchange telecommunications company has

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

31  


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    2003 Legislature                  CS for SB 654, 1st Engrossed



 1  telecommunications services treated the same as its nonbasic

 2  services, the following procedures shall be available:

 3         (a)  Any petition filed by a substantially interested

 4  party against a local exchange telecommunications company

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

 6  a basic local telecommunications service, alleging an

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

 8  364.08, s. 364.09, s. 364.10, or s. 364.3381, shall be

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

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

11  filed.

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

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

14  exchange telecommunications company shall have 7 days within

15  which to respond to the petition.

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

17  telecommunications company from raising any affirmative

18  defenses provided by law.

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

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

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

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

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

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

25  delay in the availability of relevant cost studies and

26  supporting documents.

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

28  not prevent the petitioner from filing allegations of

29  anticompetitive price reductions as otherwise provided by law.

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

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


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

 2  local exchange telecommunications company's relevant cost

 3  studies and supporting documents.

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

 5  days after filing if the local exchange telecommunications

 6  company challenges the petition and the commission determines

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

 8  the same facts that have previously been resolved against the

 9  petitioner.

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

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

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

13  the commission may determine whether a requested stay of a

14  basic local telecommunications service price reduction is

15  warranted. Such a benchmark must be based upon generally

16  accepted economic costing and pricing principles and judicial

17  or regulatory costing and pricing precedent. The commission

18  shall also establish the criteria for determining on the

19  merits whether the basic local telecommunications service

20  price reduction is in fact anticompetitive. Such criteria must

21  be based upon generally accepted economic competitive costing

22  and pricing principles and judicial or regulatory precedent

23  for detecting the presence of anticompetitive pricing.

24  However, the commission may not establish benchmarks or

25  criteria that are inconsistent with or interfere with the

26  competitive pricing conduct permitted by existing law. The

27  commission shall establish the benchmark and criteria by rule,

28  which rule adoption proceeding shall commence no earlier than

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

30  after commencement. Such benchmarks and criteria must be

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


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 1  364.164(8) becomes operative, the commission shall immediately

 2  commence establishment of the benchmark and criteria required

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

 4  subsection, but nothing herein shall prevent or delay a local

 5  exchange telecommunications company from making and

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

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

 8  Florida Statutes, to read:

 9         364.10  Undue advantage to person or locality

10  prohibited; exception.--

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

12  telecommunications company authorized by the commission to

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

14  shall have tariffed and shall provide Lifeline service to any

15  otherwise eligible customer or potential customer who meets an

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

17  poverty income guidelines for Lifeline customers. Such a test

18  for eligibility must augment, rather than replace, the

19  eligibility standards established by federal law and based on

20  participation in certain low-income assistance programs. Each

21  intrastate interexchange telecommunications company shall,

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

23  minimum the intrastate interexchange telecommunications

24  carrier's current Lifeline benefits and exemptions to Lifeline

25  customers who meet the income eligibility test set forth in

26  this subsection. The Office of Public Counsel shall certify

27  and maintain claims submitted by a customer for eligibility

28  under the income test authorized by this subsection.

29         (b)  Each local exchange telecommunications company

30  subject to this subsection shall provide to each state and

31  federal agency providing benefits to persons eligible for


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 1  Lifeline service applications, brochures, pamphlets, or other

 2  materials that inform such persons of their eligibility for

 3  Lifeline, and each state agency providing such benefits shall

 4  furnish the materials to affected persons at the time they

 5  apply for benefits.

 6         (c)  Any local exchange telecommunications company

 7  customer receiving Lifeline benefits shall not be subject to

 8  any residential basic local telecommunications service rate

 9  increases authorized by s. 364.164 until the local exchange

10  telecommunications company reaches parity as defined in s.

11  364.164(5) or until the customer no longer qualifies for the

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

13  or unless otherwise determined by the commission upon petition

14  by a local exchange telecommunications company.

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

16  provides benefits to persons eligible for Lifeline service

17  shall undertake, in cooperation with the Department of

18  Children and Family Services, the commission, and

19  telecommunications companies providing Lifeline services, the

20  development of procedures to promote Lifeline participation.

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

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

23  Representatives by December 31 each year on the number of

24  customers who are subscribing to Lifeline service and the

25  effectiveness of any procedures to promote participation.

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

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

28  Statutes, are amended to read:

29         364.16  Connection of lines and transfers; local

30  interconnection; telephone number portability.--

31  


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 1         (2)  Each competitive alternative local exchange

 2  telecommunications company shall provide access to, and

 3  interconnection with, its telecommunications services to any

 4  other provider of local exchange telecommunications services

 5  requesting such access and interconnection at

 6  nondiscriminatory prices, terms, and conditions. If the

 7  parties are unable to negotiate mutually acceptable prices,

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

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

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

11  pertaining to interconnection services.

12         (3)  Each local exchange telecommunications company

13  shall provide access to, and interconnection with, its

14  telecommunications facilities to any other provider of local

15  exchange telecommunications services requesting such access

16  and interconnection at nondiscriminatory prices, rates, terms,

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

18  364.162.

19         (a)  No local exchange telecommunications company or

20  competitive alternative local exchange telecommunications

21  company shall knowingly deliver traffic, for which terminating

22  access service charges would otherwise apply, through a local

23  interconnection arrangement without paying the appropriate

24  charges for such terminating access service.

25         (5)  When requested, each certificated

26  telecommunications company shall provide access to any poles,

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

28  controls to any local exchange telecommunications company or

29  competitive alternative local exchange telecommunications

30  company pursuant to reasonable rates and conditions mutually

31  


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 1  agreed to which do not discriminate between similarly situated

 2  companies.

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

 4  364.161, Florida Statutes, are amended to read:

 5         364.161  Unbundling and resale.--

 6         (3)  Only after a competitive an alternative local

 7  exchange telecommunications company has been determined to be

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

 9  another telecommunications provider, be required, for purposes

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

11  features, functions and capabilities, including its local

12  loop, to the extent such unbundling is technically and

13  economically feasible.  The parties shall negotiate the terms,

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

15  the parties cannot reach a satisfactory resolution within 60

16  days, either party may petition the commission to arbitrate

17  the dispute and the commission shall make a determination

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

19         (4)  A local exchange telecommunications company shall

20  provide unbundled network elements, services for resale,

21  requested repairs, and necessary support services in a timely

22  manner.  The Public Service Commission shall maintain a file

23  of all complaints by competitive alternative local exchange

24  telecommunications companies against local exchange

25  telecommunications companies regarding timeliness and adequacy

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

27  complaint was resolved, shall be included with the

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

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

30  Statutes, is amended to read:

31  


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 1         364.162  Negotiated prices for interconnection and for

 2  the resale of services and facilities; commission rate

 3  setting.--

 4         (1)  A competitive An alternative local exchange

 5  telecommunications company shall have 60 days from the date it

 6  is certificated to negotiate with a local exchange

 7  telecommunications company mutually acceptable prices, terms,

 8  and conditions of interconnection and for the resale of

 9  services and facilities. If a negotiated price is not

10  established after 60 days, either party may petition the

11  commission to establish nondiscriminatory rates, terms, and

12  conditions of interconnection and for the resale of services

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

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

15  Whether set by negotiation or by the commission,

16  interconnection and resale prices, rates, terms, and

17  conditions shall be filed with the commission before their

18  effective date.  The commission shall have the authority to

19  arbitrate any dispute regarding interpretation of

20  interconnection or resale prices and terms and conditions.

21         Section 14.  Section 364.163, Florida Statutes, is

22  amended to read:

23         364.163  Network access services.--For purposes of this

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

25  service provided by a local exchange telecommunications

26  company to a telecommunications company certificated under

27  this chapter or licensed by the Federal Communications

28  Commission to access the local exchange telecommunications

29  network, excluding the local interconnection arrangements in

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

31  local exchange telecommunications company subject to s.


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 1  364.051 shall maintain tariffs with the commission containing

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

 3  access services.

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

 5  network access services of each company subject to this

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

 7  1999, and shall remain capped until January 1, 2001. Upon the

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

 9  access service rates of a company that elects to become

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

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

12         (1)(2)  After the termination of the caps imposed on

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

14  telecommunications company's intrastate switched network

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

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

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

18  with its interstate switched access rates, a company subject

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

20  specific network access service rate in an amount not to

21  exceed the cumulative change in inflation experienced after

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

23  such adjustment shall ever exceed 3 percent annually of the

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

25  changes in Gross Domestic Product Fixed 1987 Weights Price

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

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

28  United States Department of Commerce.

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

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

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


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 1  rate change to recover the cost of governmentally mandated

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

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

 4  government program or project required in part II of this

 5  chapter shall not be recovered under this subsection unless

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

 7  and subject to carrier of last resort obligations as provided

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

 9  governmentally mandated projects and programs, such petition

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

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

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

13  recoverable either from the government mandating the project

14  or program or from the beneficiaries of the project or program

15  through user fees or other new revenue sources from the

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

17  resulting from the project or program are reflected as an

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

19  shall decrease its network access rates by amounts that

20  reflect any federal or state income tax reduction. Nothing

21  contained in this section shall allow any revisions in the

22  rates, terms, and conditions for commercial mobile radio

23  service access, which revisions are inconsistent with the

24  requirements or methodologies of the Federal Communications

25  Commission.

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

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

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

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

30  subject to this section may choose to decrease network service

31  


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

 2  upon 7 days' notice.

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

 4  conditions for existing network access services in accordance

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

 6  valid and become effective upon 15 days' notice.

 7  Company-proposed rate reductions shall become effective upon 7

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

 9  telecommunications company shall be presumed valid and become

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

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

12  commission shall have continuing regulatory oversight of local

13  exchange telecommunications company-provided network access

14  services for purposes of determining the correctness of any

15  price increase resulting from the application of the inflation

16  index and making any necessary adjustments, establishing

17  reasonable service quality criteria, and assuring resolution

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

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

20  determining the correctness of any price increase, vote,

21  without hearing, the local exchange telecommunications company

22  to hold subject to refund all revenues collected under the

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

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

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

26         (2)(6)  Any local exchange telecommunications company

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

28  telecommunications service access lines in service on July 1,

29  1995, shall reduce its intrastate switched access rates by 5

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

31  Any intrastate interexchange telecommunications company whose


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 1  intrastate switched network access rate is reduced as a result

 2  of the rate adjustments decreases made by a local exchange

 3  telecommunications company in accordance with s. 364.164 this

 4  subsection shall decrease its intrastate long distance

 5  revenues rates by the amount necessary to return the benefits

 6  of such reduction to both its residential and business

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

 8  rates by a percentage greater than the per minute intrastate

 9  switched access rate reductions required by this act. The

10  intrastate interexchange telecommunications company carrier

11  may determine the specific intrastate rates to be decreased,

12  provided that residential and business customers benefit from

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

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

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

16  intrastate switched network access rates in an amount that

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

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

19  interexchange telecommunications company to carry out the

20  requirements of this subsection shall be presumed valid and

21  shall become effective on 1 day's notice.

22         (7)  Telecommunications company intrastate switched

23  access and customer long distance rate reductions shall become

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

25  proposed in tariff revisions filed by the telecommunications

26  companies with the commission shall be presumed valid and

27  become effective on October 1 of each relevant year.

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

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

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

31  telecommunications company to hold subject to refund all


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 1  intrastate switched access or customer long distance rate

 2  revenues collected after the rate decrease.  Within 60 days

 3  after such order, the commission must make a determination

 4  either compelling a refund of the appropriate part of such

 5  revenues or releasing all such revenues from such requirement.

 6         (3)(9)  The commission shall have continuing regulatory

 7  oversight of intrastate switched network access and customer

 8  long distance rates for purposes of determining the

 9  correctness of any rate decrease by a telecommunications

10  company resulting from the application of s. 364.164 this

11  section and making any necessary adjustments to those rates,

12  establishing reasonable service quality criteria, and assuring

13  resolution of service complaints.

14         Section 15.  Section 364.164, Florida Statutes, is

15  created to read:

16         364.164  Competitive market enhancement.--

17         (1)  Each local exchange telecommunications company

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

19  intrastate switched network access rate in a revenue-neutral

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

21  denying any petition filed pursuant to this section within 90

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

23  whether granting the petition will:

24         (a)  Remove current support for basic local

25  telecommunications services that prevents the creation of a

26  more attractive competitive local exchange market for the

27  benefit of residential consumers.

28         (b)  Induce enhanced market entry.

29         (c)  Require intrastate switched network access rate

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

31  more than 4 years.


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

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

 3         (2)  If the commission grants the local exchange

 4  telecommunications company's petition, the local exchange

 5  telecommunications company is authorized, the requirements of

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

 7  revenue category mechanism consisting of basic local

 8  telecommunications service revenues and intrastate switched

 9  network access revenues to achieve revenue neutrality. The

10  local exchange telecommunications company shall thereafter, on

11  45 days' notice, adjust the various prices and rates of the

12  services within its revenue category authorized by this

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

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

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

16  adjustments within the revenue category established pursuant

17  to this section must be implemented simultaneously and must be

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

19  the rate adjustment filing, issue a final order confirming

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

21  for all purposes.

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

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

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

25  category established under this section. The commission shall

26  have the authority only to verify the pricing units for the

27  purpose of ensuring that the company's specific adjustments,

28  as authorized by this section, make the revenue category

29  revenue neutral for each filing. Any discovery or information

30  requests under this section must be limited to a verification

31  of historical pricing units necessary to fulfill the


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 1  commission's specific responsibilities under this section of

 2  ensuring that the company's rate adjustments make the revenue

 3  category revenue neutral for each annual filing.

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

 5  telecommunications company's exemptions pursuant to s.

 6  364.051(1)(c) or authorize any local exchange

 7  telecommunications company to increase the cost of local

 8  exchange services to any person providing services under s.

 9  364.3375.

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

11  that the local exchange telecommunications company's

12  intrastate switched network access rate is equal to its

13  interstate switched network access rate in effect on January

14  1, 2003, if the company has more than 1 million access lines

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

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

17  intrastate switched network access rate is equal to 8 cents

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

19  making further reductions in its intrastate switched network

20  access rate, within the revenue category established in this

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

22  making other revenue-neutral rate adjustments within this

23  category.

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

25  switched network access rate" means the composite of the

26  originating and terminating network access rate for carrier

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

28  transport, access tandem switching, interconnection charge,

29  signaling, information surcharge, and local switching.

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

31  neutral" means that the total revenue within the revenue


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 1  category established pursuant to this section remains the same

 2  before and after the local exchange telecommunications company

 3  implements any rate adjustments under this section.

 4  Calculation of revenue received from each service before the

 5  implementation of any rate adjustment must be made by

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

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

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

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

10  after implementation of rate adjustments must be made by

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

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

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

14  pricing units. Billing units associated with pay telephone

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

16  calculation under this subsection.

17         (8)  If either the Federal Communications Commission or

18  the commission issues a final order determining that

19  voice-over-internet protocol service or a functionally

20  equivalent service shall not be subject to the payment of

21  switched network access rates pursuant to a local exchange

22  telecommunications company tariff or interconnection agreement

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

24  immediately become operative as if the commission had granted

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

26  telecommunications company subject to this section shall be

27  authorized to reduce its switched network access rates to the

28  company's authorized local reciprocal compensation rates in a

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

30  the shortest remaining timeframe allowable under this section.

31  


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 1         Section 16.  Section 364.337, Florida Statutes, is

 2  amended to read:

 3         364.337  Competitive Alternate local exchange

 4  telecommunications companies; intrastate interexchange

 5  telecommunications services; certification.--

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

 7  application for a certificate as a competitive an alternative

 8  local exchange telecommunications company before January 1,

 9  1996, and the commission shall conduct its review of the

10  application and take all actions necessary to process the

11  application. However, an application shall become effective no

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

13  certificate of authority to provide competitive alternative

14  local exchange service upon a showing that the applicant has

15  sufficient technical, financial, and managerial capability to

16  provide such service in the geographic area proposed to be

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

18  exchange telecommunications company may not offer basic local

19  telecommunications services within the territory served by a

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

21  the small local exchange telecommunications company elects to

22  be regulated under s. 364.051 or provides cable television

23  programming services directly or as video dial tone

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

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

26  the Legislature that the commission act expeditiously to grant

27  certificates of authority under this section and that the

28  grant of certificates not be affected by the application of

29  any criteria other than that specifically enumerated in this

30  subsection.

31  


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 1         (2)  Rules adopted by the commission governing the

 2  provision of competitive alternative local exchange

 3  telecommunications service shall be consistent with s. 364.01.

 4  The basic local telecommunications service provided by a

 5  competitive an alternative local exchange telecommunications

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

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

 8  competitive An alternative local exchange telecommunications

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

10  equivalent to that provided by the local exchange

11  telecommunications company serving the same area. There shall

12  be a flat-rate pricing option for basic local

13  telecommunications services, and mandatory measured service

14  for basic local telecommunications services shall not be

15  imposed. A certificated competitive alternative local exchange

16  telecommunications company may petition the commission for a

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

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

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

20  public interest.  Competitive In no event shall alternative

21  local exchange telecommunications companies are not be subject

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

23  364.055, 364.14, 364.17, 364.18, 364.33, and 364.3381.

24         (3)  The commission shall grant a certificate of

25  authority to provide intrastate interexchange

26  telecommunications service upon a showing that the applicant

27  has sufficient technical, financial, and managerial capability

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

29  served.

30         (4)  Rules adopted by the commission governing the

31  provision of intrastate interexchange telecommunications


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

 2  certificated intrastate interexchange telecommunications

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

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

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

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

 7  event shall Intrastate interexchange telecommunications

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

 9  364.03, 364.035, 364.037, 364.05, 364.055, 364.14, 364.17,

10  364.18, and 364.3381.

11         (5)  The commission shall have continuing regulatory

12  oversight over the provision of basic local exchange

13  telecommunications service provided by a certificated

14  competitive alternative local exchange telecommunications

15  company or a certificated alternative access vendor for

16  purposes of establishing reasonable service quality criteria,

17  assuring resolution of service complaints, and ensuring the

18  fair treatment of all telecommunications providers in the

19  telecommunications marketplace.

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

21  alternative access vendor services to be in the public

22  interest, and the commission may authorize the provision of

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

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

25  means the provision of private line service between an entity

26  and facilities at another location, whether owned by the

27  entity or an unaffiliated entity or access service between an

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

29  exchange telecommunications company.  For purposes of this

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

31  


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

 2  transmission of any public telecommunications service.

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

 4  access vendor services without first obtaining a certificate

 5  from the commission. Any certificated alternative access

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

 7  provide alternative local exchange telecommunications service

 8  in addition to the services authorized in its certificate may

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

10  notice to the commission.

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

12  Florida Statutes, is amended to read:

13         364.3376  Operator services.--

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

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

16  the commission a certificate of public convenience and

17  necessity as either an operator services provider or an

18  interexchange telecommunications company.

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

20  apply to operator services provided by a local exchange

21  telecommunications company or by an intrastate interexchange

22  telecommunications company, except as required by the

23  commission in the public interest.

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

25  Statutes, is amended to read:

26         364.502  Video programming; capacity for public use.--

27         (1)  Each local exchange telecommunications company or

28  competitive alternative local exchange telecommunications

29  company which provides video programming shall, prior to

30  providing such programming, file with the commission a

31  designation of reserve capacity for public, educational, or


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 1  governmental use. The commission shall review the filed

 2  designation to determine whether such designation ensures that

 3  public education and public information programming are

 4  adequately available to the customers of such

 5  telecommunications company. The commission shall consider the

 6  following factors in determining whether the filed designation

 7  complies with the requirements of this chapter:

 8         (a)  Reservation and designation requirements provided

 9  by federal law, if any.

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

11  given service area.

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

13  service area.

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

15  the service area.

16         (e)  Other factors which the commission deems

17  appropriate.

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

19  365.172, Florida Statutes, is amended to read:

20         365.172  Wireless emergency telephone number "E911."--

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

22  365.173 and 365.174, the term:

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

24  alternative local exchange telecommunications company" or a

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

26  364.02.

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

28  Statutes, is amended to read:

29         196.012  Definitions.--For the purpose of this chapter,

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

31  context clearly indicates otherwise:


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

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

 3  lessee under any leasehold interest created in property of the

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

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

 6  other public body corporate of the state is demonstrated to

 7  perform a function or serve a governmental purpose which could

 8  properly be performed or served by an appropriate governmental

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

10  purpose which would otherwise be a valid subject for the

11  allocation of public funds. For purposes of the preceding

12  sentence, an activity undertaken by a lessee which is

13  permitted under the terms of its lease of real property

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

15  has been approved by the Federal Aviation Administration and

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

17  business offices and activities related specifically thereto

18  in connection with the conduct of an aircraft full service

19  fixed base operation which provides goods and services to the

20  general aviation public in the promotion of air commerce shall

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

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

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

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

25  332.004(14) by municipalities, agencies, special districts,

26  authorities, or other public bodies corporate and public

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

28  331.303(19), or which is located in a deepwater port

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

30  foregoing governmental units, subject to a leasehold or other

31  possessory interest of a nongovernmental lessee that is deemed


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

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

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

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

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

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

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

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

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

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

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

12  Government, through a schedule established by the Secretary of

13  the Interior, determine that the property is being maintained

14  for public historic preservation, park, or recreational

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

16  revert back to the Federal Government, then such property

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

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

19  property on federal lands in connection with the Federal

20  Government's Space Exploration Program or spaceport activities

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

22  personal property owned by the Federal Government or the

23  Florida Space Authority and used for defense and space

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

25  thereof shall be deemed to perform an essential national

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

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

28  property, buildings, or other real property improvements used

29  for the administration, operation, business offices and

30  activities related specifically thereto in connection with the

31  conduct of an aircraft full service fixed based operation


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 1  which provides goods and services to the general aviation

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

 3  property is designated as an aviation area on an airport

 4  layout plan approved by the Federal Aviation Administration.

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

 6  other real property improvements which will revert to the

 7  airport authority or other governmental unit upon expiration

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

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

10  telecommunications services to the public for hire by the use

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

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

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

14  s. 196.199, unless the telecommunications services are

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

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

17  telecommunications services for the airport or its tenants,

18  concessionaires, or licensees, or unless the

19  telecommunications services are provided by a public hospital.

20  However, property that is being used to provide such

21  telecommunications services on or before October 1, 1997,

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

23  2004.

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

25  199.183, Florida Statutes, is amended to read:

26         199.183  Taxpayers exempt from annual and nonrecurring

27  taxes.--

28         (1)  Intangible personal property owned by this state

29  or any of its political subdivisions or municipalities shall

30  be exempt from taxation under this chapter. This exemption

31  does not apply to:


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

 2  telecommunications services to the public for hire by the use

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

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

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

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

 7  immunity of any political subdivision of the state or other

 8  entity of local government from taxation of the property used

 9  to provide telecommunication services that is taxed as a

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

11  personal property related to the provision of such

12  telecommunications services provided by the operator of a

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

14  operator's provision of telecommunications services for the

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

16  intangible personal property related to the provision of such

17  telecommunications services provided by a public hospital, are

18  exempt from taxation under this chapter.

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

20  Statutes, is amended to read:

21         212.08  Sales, rental, use, consumption, distribution,

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

23  the rental, the use, the consumption, the distribution, and

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

25  following are hereby specifically exempt from the tax imposed

26  by this chapter.

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

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

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

30  municipality, or political subdivision of a state when payment

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


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 1  This exemption shall not inure to any transaction otherwise

 2  taxable under this chapter when payment is made by a

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

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

 5  subsequently reimbursed by the governmental entity. This

 6  exemption does not include sales of tangible personal property

 7  made to contractors employed either directly or as agents of

 8  any such government or political subdivision thereof when such

 9  tangible personal property goes into or becomes a part of

10  public works owned by such government or political

11  subdivision. A determination whether a particular transaction

12  is properly characterized as an exempt sale to a government

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

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

15  transaction is cast. The department shall adopt rules that

16  give special consideration to factors that govern the status

17  of the tangible personal property before its affixation to

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

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

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

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

22  subdivision or municipality in this state of machines and

23  equipment and parts and accessories therefor used in the

24  generation, transmission, or distribution of electrical energy

25  by systems owned and operated by a political subdivision in

26  this state for transmission or distribution expansion.

27  Likewise exempt are charges for services rendered by radio and

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

29  license fees and charges for films, videotapes, and

30  transcriptions used in producing radio or television

31  broadcasts. The exemption provided in this subsection does not


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

 2  any political subdivision or municipality in this state of

 3  machines and equipment and parts and accessories therefor used

 4  in providing two-way telecommunications services to the public

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

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

 7  certificate is required under chapter 364, which facility is

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

 9  political subdivision of the state.  Any immunity of any

10  political subdivision of the state or other entity of local

11  government from taxation of the property used to provide

12  telecommunication services that is taxed as a result of this

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

14  this subsection includes transactions taxable under this

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

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

17  telecommunications services for the airport or its tenants,

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

19  public hospital for the provision of such telecommunications

20  services.

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

22  Statutes, is amended to read:

23         290.007  State incentives available in enterprise

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

25  encourage the revitalization of enterprise zones:

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

27  Public Service Commission may allow public utilities and

28  telecommunications companies to grant discounts of up to 50

29  percent on tariffed rates for services to small businesses

30  located in an enterprise zone designated pursuant to s.

31  290.0065. Such discounts may be granted for a period not to


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

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

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

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

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

 6  Florida Statutes, is amended to read:

 7         350.0605  Former commissioners and employees;

 8  representation of clients before commission.--

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

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

11  employment by or compensation from a business entity which,

12  directly or indirectly, owns or controls a public utility

13  regulated by the commission, from a public utility regulated

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

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

16  regulated by the commission or is an actual business

17  competitor of a local exchange company or public utility

18  regulated by the commission and is otherwise exempt from

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

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

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

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

23  commission.  This subsection applies only to members of the

24  Florida Public Service Commission who are appointed or

25  reappointed after May 10, 1993.

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

27  Statutes, is amended to read:

28         364.602  Definitions.--For purposes of this part:

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

30  corporation, or other entity, including a telecommunications

31  company or a billing clearinghouse, that provides any


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 1  telecommunications service or information service to a

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

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

 4  specifically exempted from the definition of

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

 6  364.02(12).

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

 8  Statutes, is amended to read:

 9         489.103  Exemptions.--This part does not apply to:

10         (5)  Public utilities, including special gas districts

11  as defined in chapter 189, telecommunications companies as

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

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

14  construction, maintenance, and development work performed by

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

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

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

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

19  subsection.

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

21  law.

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  


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