HB 1649

CS

CHAMBER ACTION

1	The Utilities & Telecommunications Committee recommends the
2	following:
3
4	Council/Committee Substitute
5	Remove the entire bill and insert:
6	A bill to be entitled
7	An act relating to telecommunications; amending s. 364.01,
8	F.S.; specifying the exclusive jurisdiction of the Florida
9	Public Service Commission to regulate telecommunications
10	companies; providing that activities regulated by the
11	commission are exempt from ch. 501, F.S., relating to
12	consumer protection; providing that state laws governing
13	business and consumer protection be applied to
14	communications activities that are not regulated by the
15	commission; deleting certain legislative findings with
16	respect to the provision of local telecommunications
17	services; revising provisions governing the exclusive
18	jurisdiction of the commission; creating s. 364.011, F.S.;
19	specifying certain services that are exempt from oversight
20	by the commission; creating s. 364.012, F.S.; directing
21	the commission to maintain liaison with federal agencies;
22	providing that ch. 364, F.S., does not limit or modify
23	certain duties of a local exchange carrier; creating s.
24	364.013, F.S.; requiring that broadband service remain
25	free of state and local regulation; requiring that voice-
26	over-Internet protocol remain free of regulation, except
27	as specifically provided in ch. 364, F.S.; amending s.
28	364.02, F.S.; defining the terms "broadband service" and
29	"VoIP"; revising the definition of "service"; amending s.
30	364.0361, F.S.; prohibiting a local government from
31	regulating the provision of voice-over-Internet protocol,
32	regardless of the provider, platform, or protocol;
33	amending s. 364.051, F.S.; providing that evidence of
34	damage caused by a tropical storm system constitutes a
35	compelling showing of changed circumstances to justify a
36	change in rates; directing the commission to order a line
37	item charge for a certain period to recover costs of such
38	damage; limiting amount of such charge; amending s.
39	364.10, F.S.; revising the income threshold for
40	eligibility for Lifeline service; amending s. 364.335,
41	F.S.; increasing the maximum allowable filing fee for
42	certification of telecommunications carriers; amending s.
43	364.336, F.S.; providing minimum regulatory assessment
44	fees to be assessed by rule of the commission; repealing
45	s. 364.502, F.S., relating to video programming services;
46	amending ss. 196.012, 199.183, 212.08, 290.007, 350.0605,
47	364.602, and 489.103, F.S.; conforming cross references;
48	providing effective dates.
49
50	Be It Enacted by the Legislature of the State of Florida:
51
52	Section 1.  Section 364.01, Florida Statutes, is amended to
53	read:
54	364.01  Powers of commission, legislative intent.--
55	(1)  The Florida Public Service Commission shall exercise
56	over and in relation to telecommunications companies the powers
57	conferred by this chapter.
58	(2)  The Florida Public Service Commission has It is the
59	legislative intent to give exclusive jurisdiction in all matters
60	set forth in this chapter to regulate the Florida Public Service
61	Commission in regulating telecommunications companies, and such
62	preemption shall supersede any local or special act or municipal
63	charter where any conflict of authority may exist. However, the
64	provisions of this chapter shall not affect the authority and
65	powers granted in s. 166.231(9) or s. 337.401.
66	(3)  Activities regulated under laws administered by the
67	Florida Public Service Commission are exempt from chapter 501.
68	Communications activities that are not regulated by the Florida
69	Public Service Commission, including, but not limited to, VoIP,
70	wireless, and broadband, are subject to this state's generally
71	applicable business regulation and deceptive trade practices and
72	consumer protection laws, as enforced by the appropriate state
73	authority or through actions in the judicial system. This
74	chapter does not limit the availability to any party of any
75	remedy or defense under state or federal antitrust laws. The
76	Legislature finds that the competitive provision of
77	telecommunications services, including local exchange
78	telecommunications service, is in the public interest and will
79	provide customers with freedom of choice, encourage the
80	introduction of new telecommunications service, encourage
81	technological innovation, and encourage investment in
82	telecommunications infrastructure. The Legislature further finds
83	that the transition from the monopoly provision of local
84	exchange service to the competitive provision thereof will
85	require appropriate regulatory oversight to protect consumers
86	and provide for the development of fair and effective
87	competition, but nothing in this chapter shall limit the
88	availability to any party of any remedy under state or federal
89	antitrust laws. The Legislature further finds that changes in
90	regulations allowing increased competition in telecommunications
91	services could provide the occasion for increases in the
92	telecommunications workforce; therefore, it is in the public
93	interest that competition in telecommunications services lead to
94	a situation that enhances the high-technological skills and the
95	economic status of the telecommunications workforce. The
96	Legislature further finds that the provision of voice-over-
97	Internet protocol (VOIP) free of unnecessary regulation,
98	regardless of the provider, is in the public interest.
99	(4)  The commission shall exercise its exclusive
100	jurisdiction in order to:
101	(a)  Protect the public health, safety, and welfare by
102	ensuring that basic local telecommunications services are
103	available to all consumers in the state at reasonable and
104	affordable prices.
105	(b)  Encourage competition through flexible regulatory
106	treatment among providers of telecommunications services in
107	order to ensure the availability of the widest possible range of
108	consumer choice in the provision of all telecommunications
109	services.
110	(c)  Protect the public health, safety, and welfare by
111	ensuring that monopoly services provided by telecommunications
112	companies continue to be subject to effective price, rate, and
113	service regulation.
114	(d)  Promote competition by encouraging innovation and
115	investment in new entrants into telecommunications markets and
116	by allowing a transitional period in which new and emerging
117	technologies entrants are subject to a reduced lesser level of
118	regulatory oversight than local exchange telecommunications
119	companies.
120	(e)  Encourage all providers of telecommunications services
121	to introduce new or experimental telecommunications services
122	free of unnecessary regulatory restraints.
123	(f)  Eliminate any rules or and/or regulations which will
124	delay or impair the transition to competition.
125	(g)  Ensure that all providers of telecommunications
126	services are treated fairly, by preventing anticompetitive
127	behavior and eliminating unnecessary regulatory restraint.
128	(h)  Recognize the continuing emergence of a competitive
129	telecommunications environment through the flexible regulatory
130	treatment of competitive telecommunications services, where
131	appropriate, if doing so does not reduce the availability of
132	adequate basic local telecommunications service to all citizens
133	of the state at reasonable and affordable prices, if competitive
134	telecommunications services are not subsidized by monopoly
135	telecommunications services, and if all monopoly services are
136	available to all competitors on a nondiscriminatory basis.
137	(i)  Continue its historical role as a surrogate for
138	competition for monopoly services provided by local exchange
139	telecommunications companies.
140	Section 2.  Section 364.011, Florida Statutes, is created
141	to read:
142	364.011  Exemptions from commission jurisdiction.--The
143	following services are exempt from oversight by the commission,
144	except to the extent delineated in this chapter or specifically
145	authorized by federal law:
146	(1)  Intrastate interexchange telecommunications services.
147	(2)  Broadband services, regardless of the provider,
148	platform, or protocol.
149	(3)  VoIP.
150	(4)  Wireless telecommunications, including commercial
151	mobile radio services.
152	Section 3.  Section 364.012, Florida Statutes, is created
153	to read:
154	364.012  Consistency with federal law.--
155	(1)  In order to promote commission coordination with
156	federal policymakers and regulatory agencies, the commission
157	shall maintain continuous liaisons with appropriate federal
158	agencies whose policy decisions and rulemaking authority affect
159	those telecommunications companies over which the commission has
160	jurisdiction. The commission is encouraged to participate in the
161	proceedings of federal agencies in cases in which the state's
162	consumers may be affected and to convey the commission's policy
163	positions and information requirements in order to achieve
164	greater efficiency in regulation.
165	(2)  This chapter does not limit or modify the duties of a
166	local exchange carrier to provide unbundled access to network
167	elements or the commission's authority to arbitrate and enforce
168	interconnection agreements to the extent that those elements are
169	required under 47 U.S.C. ss. 251 and 252, and under any
170	regulations issued by the Federal Communications Commission at
171	rates determined in accordance with the standards established by
172	the Federal Communications Commission pursuant to 47 C.F.R. ss.
173	51.503-51.513, inclusive of any successor regulation or
174	successor forbearance of regulation.
175	Section 4.  Section 364.013, Florida Statutes, is created
176	to read:
177	364.013  Emerging and advanced services.--Broadband service
178	shall remain free of state and local regulation, regardless of
179	the provider, platform, or protocol. In addition, the provision
180	of voice-over-Internet protocol (VoIP) shall be free of
181	regulation, except as delineated in this chapter or as
182	specifically authorized by federal law, regardless of the
183	provider, platform, or protocol.
184	Section 5.  Section 364.02, Florida Statutes, is amended to
185	read:
186	364.02  Definitions.--As used in this chapter:
187	(1)  "Basic local telecommunications service" means
188	voice-grade, flat-rate residential, and flat-rate single-line
189	business local exchange services which provide dial tone, local
190	usage necessary to place unlimited calls within a local exchange
191	area, dual tone multifrequency dialing, and access to the
192	following:  emergency services such as "911," all locally
193	available interexchange companies, directory assistance,
194	operator services, relay services, and an alphabetical directory
195	listing. For a local exchange telecommunications company, such
196	term shall include any extended area service routes, and
197	extended calling service in existence or ordered by the
198	commission on or before July 1, 1995.
199	(2)  "Broadband service" means any service that consists of
200	or includes the offering of the capability to transmit or
201	receive information at a rate that is not less than 200 kilobits
202	per second and either:
203	(a)  Is used to provide access to the Internet; or
204	(b)  Provides computer processing, information, storage,
205	information content, or protocol conversion in combination with
206	such service.
207
208	Nothing contained in this subsection shall apply to any
209	intrastate telecommunications services tariffed with the
210	commission as of January 1, 2005.
211	(3)(2)  "Commercial mobile radio service provider" means a
212	commercial mobile radio service provider as defined by and
213	pursuant to 47 U.S.C. ss. 153(n) and 332(d).
214	(4)(3)  "Commission" means the Florida Public Service
215	Commission.
216	(5)(4)  "Competitive local exchange telecommunications
217	company" means any company certificated by the commission to
218	provide local exchange telecommunications services in this state
219	on or after July 1, 1995.
220	(6)(5)  "Corporation" includes a corporation, company,
221	association, or joint stock association.
222	(7)(6)  "Intrastate interexchange telecommunications
223	company" means any entity that provides intrastate interexchange
224	telecommunications services.
225	(8)(7)  "Local exchange telecommunications company" means
226	any company certificated by the commission to provide local
227	exchange telecommunications service in this state on or before
228	June 30, 1995.
229	(9)(8)  "Monopoly service" means a telecommunications
230	service for which there is no effective competition, either in
231	fact or by operation of law.
232	(10)(9)  "Nonbasic service" means any telecommunications
233	service provided by a local exchange telecommunications company
234	other than a basic local telecommunications service, a local
235	interconnection arrangement described in s. 364.16, or a network
236	access service described in s. 364.163.
237	(11)(10)  "Operator service" includes, but is not limited
238	to, billing or completion of third-party, person-to-person,
239	collect, or calling card or credit card calls through the use of
240	a live operator or automated equipment.
241	(12)(11)  "Operator service provider" means a person who
242	furnishes operator service through a call aggregator.
243	(13)(12)  "Service" is to be construed in its broadest and
244	most inclusive sense. The term "service" does not include
245	broadband service or voice-over-Internet protocol service for
246	purposes of regulation by the commission. Nothing herein shall
247	affect the rights and obligations of any entity related to the
248	payment of switched network access rates or other intercarrier
249	compensation, if any, related to voice-over-Internet protocol
250	service. Notwithstanding the provisions of this subsection, the
251	commission shall have the authority to arbitrate, enforce, or
252	approve interconnection agreements and resolve disputes as
253	provided by 47 U.S.C. ss. 251 and 252 or any other applicable
254	federal law or regulation. The duties of a local exchange
255	telecommunications company to provide unbundled network
256	elements, interconnection, collocation arrangements, or any
257	other service, right, or benefit to any party, regardless of the
258	technology, shall be those that the company is obligated to
259	extend or provide under applicable federal law and regulations.
260	(14)(13)  "Telecommunications company" includes every
261	corporation, partnership, and person and their lessees,
262	trustees, or receivers appointed by any court whatsoever, and
263	every political subdivision in the state, offering two-way
264	telecommunications service to the public for hire within this
265	state by the use of a telecommunications facility. The term
266	"telecommunications company" does not include:
267	(a)  An entity which provides a telecommunications facility
268	exclusively to a certificated telecommunications company;
269	(b)  An entity which provides a telecommunications facility
270	exclusively to a company which is excluded from the definition
271	of a telecommunications company under this subsection;
272	(c)  A commercial mobile radio service provider;
273	(d)  A facsimile transmission service;
274	(e)  A private computer data network company not offering
275	service to the public for hire;
276	(f)  A cable television company providing cable service as
277	defined in 47 U.S.C. s. 522; or
278	(g)  An intrastate interexchange telecommunications
279	company.
280
281	However, each commercial mobile radio service provider and each
282	intrastate interexchange telecommunications company shall
283	continue to be liable for any taxes imposed pursuant to chapters
284	202, 203 and 212 and any fees assessed pursuant to ss. 364.025
285	and 364.336. Each intrastate interexchange telecommunications
286	company shall continue to be subject to ss. 364.04, 364.10(3)(a)
287	and (d), 364.163, 364.285, 364.501, 364.603, and 364.604, shall
288	provide the commission with such current information as the
289	commission deems necessary to contact and communicate with the
290	company, shall continue to pay intrastate switched network
291	access rates or other intercarrier compensation to the local
292	exchange telecommunications company or the competitive local
293	exchange telecommunications company for the origination and
294	termination of interexchange telecommunications service, and
295	shall reduce its intrastate long distance toll rates in
296	accordance with s. 364.163(2).
297	(15)(14)  "Telecommunications facility" includes real
298	estate, easements, apparatus, property, and routes used and
299	operated to provide two-way telecommunications service to the
300	public for hire within this state.
301	(16)  "VoIP" means the voice-over-Internet protocol as that
302	term is defined in federal law.
303	Section 6.  Section 364.0361, Florida Statutes, is amended
304	to read:
305	364.0361  Local government authority; nondiscriminatory
306	exercise.--A local government shall treat each
307	telecommunications company in a nondiscriminatory manner when
308	exercising its authority to grant franchises to a
309	telecommunications company or to otherwise establish conditions
310	or compensation for the use of rights-of-way or other public
311	property by a telecommunications company. A local government may
312	not directly or indirectly regulate the terms and conditions,
313	including, but not limited to, the operating systems,
314	qualifications, services, service quality, service territory,
315	and prices, applicable to or in connection with the provision of
316	any voice-over-Internet protocol, broadband or information
317	service, regardless of the provider, platform, or protocol. This
318	section does not relieve a provider from any obligations under
319	s. 166.046 or s. 337.401.
320	Section 7.  Effective upon this act becoming a law,
321	subsection (4) of section 364.051, Florida Statutes, is amended
322	to read:
323	364.051  Price regulation.--
324	(4)  Notwithstanding the provisions of subsection (2), any
325	local exchange telecommunications company that believes
326	circumstances have changed substantially to justify any increase
327	in the rates for basic local telecommunications services may
328	petition the commission for a rate increase, but the commission
329	shall grant such petition only after an opportunity for a
330	hearing and a compelling showing of changed circumstances. The
331	costs and expenses of any government program or project required
332	in part II shall not be recovered under this subsection unless
333	such costs and expenses are incurred in the absence of a bid and
334	subject to carrier-of-last-resort obligations as provided for in
335	part II. The commission shall act upon any such petition within
336	120 days of its filing. For purposes of this section, evidence
337	of damage to the lines, plant, and facilities of a local
338	exchange telecommunications company subject to carrier-of-last-
339	resort obligations resulting from the occurrence of a tropical
340	storm system that has been named by the National Hurricane
341	Center after June 1, 2005, shall constitute a compelling showing
342	of changed circumstances. In such event, the commission shall
343	verify the costs and expenses submitted by the company in
344	support of its petition related to repairing, restoring, and
345	replacing storm-damaged lines, plants, and facilities, and, upon
346	verification and a showing that such costs and expenses were
347	reasonably incurred under the circumstances, shall grant the
348	company's petition. A local exchange telecommunications company
349	with a storm reserve shall be authorized to recover tropical
350	storm system cost-related damages from its customers only in
351	excess of any amounts available in such storm reserve. The
352	commission shall order the company to add an equal line item
353	charge per access line for a period of no more than 12 months to
354	the bills of the company's retail basic local telecommunications
355	service customers, its retail nonbasic telecommunications
356	service customers, and its wholesale loop unbundled network
357	element customers. The line item charge may be in an amount up
358	to, but shall not exceed, 50 cents per month per customer line
359	charged for 12 calendar months.
360	Section 8.  Paragraph (a) of subsection (3) of section
361	364.10, Florida Statutes, is amended to read:
362	364.10  Undue advantage to person or locality prohibited;
363	Lifeline service.--
364	(3)(a)  Effective September 1, 2003, any local exchange
365	telecommunications company authorized by the commission to
366	reduce its switched network access rate pursuant to s. 364.164
367	shall have tariffed and shall provide Lifeline service to any
368	otherwise eligible customer or potential customer who meets an
369	income eligibility test at 135 125 percent or less of the
370	federal poverty income guidelines for Lifeline customers. Such a
371	test for eligibility must augment, rather than replace, the
372	eligibility standards established by federal law and based on
373	participation in certain low-income assistance programs. Each
374	intrastate interexchange telecommunications company shall,
375	effective September 1, 2003, file a tariff providing at a
376	minimum the intrastate interexchange telecommunications
377	carrier's current Lifeline benefits and exemptions to Lifeline
378	customers who meet the income eligibility test set forth in this
379	subsection. The Office of Public Counsel shall certify and
380	maintain claims submitted by a customer for eligibility under
381	the income test authorized by this subsection.
382	Section 9.  Paragraph (c) of subsection (1) of section
383	364.335, Florida Statutes, is amended to read:
384	364.335  Application for certificate.--
385	(1)  Each applicant for a certificate shall:
386	(c)  File the application fee required by the commission in
387	an amount not to exceed $500 $250. Such fees shall be deposited
388	in accordance with s. 350.113.
389	Section 10.  Section 364.336, Florida Statutes, is amended
390	to read:
391	364.336  Regulatory assessment fees.--Notwithstanding any
392	provisions of law to the contrary, each telecommunications
393	company licensed or operating under this chapter, for any part
394	of the preceding 6-month period, shall pay to the commission,
395	within 30 days following the end of each 6-month period, a fee
396	that may not exceed 0.25 percent annually of its gross operating
397	revenues derived from intrastate business, except, for purposes
398	of this section and the fee specified in s. 350.113(3), any
399	amount paid to another telecommunications company for the use of
400	any telecommunications network shall be deducted from the gross
401	operating revenue for purposes of computing the fee due. The
402	commission shall by rule assess a minimum fee in an amount up to
403	$1,000. The minimum amount may be different depending on the
404	type of service provided by the telecommunications company and
405	shall, to the extent practicable, be related to the cost of
406	regulating such type of company. Differences, if any, between
407	the amount paid in any 6-month period and the amount actually
408	determined by the commission to be due shall, upon motion by the
409	commission, be immediately paid or refunded. Fees under this
410	section may not be less than $50 annually. Such fees shall be
411	deposited in accordance with s. 350.113. The commission may by
412	rule establish criteria for payment of the regulatory assessment
413	fee on an annual basis rather than on a semiannual basis.
414	Section 11.  Section 364.502, Florida Statutes, is
415	repealed.
416	Section 12.  Subsection (6) of section 196.012, Florida
417	Statutes, is amended to read:
418	196.012  Definitions.--For the purpose of this chapter, the
419	following terms are defined as follows, except where the context
420	clearly indicates otherwise:
421	(6)  Governmental, municipal, or public purpose or function
422	shall be deemed to be served or performed when the lessee under
423	any leasehold interest created in property of the United States,
424	the state or any of its political subdivisions, or any
425	municipality, agency, special district, authority, or other
426	public body corporate of the state is demonstrated to perform a
427	function or serve a governmental purpose which could properly be
428	performed or served by an appropriate governmental unit or which
429	is demonstrated to perform a function or serve a purpose which
430	would otherwise be a valid subject for the allocation of public
431	funds. For purposes of the preceding sentence, an activity
432	undertaken by a lessee which is permitted under the terms of its
433	lease of real property designated as an aviation area on an
434	airport layout plan which has been approved by the Federal
435	Aviation Administration and which real property is used for the
436	administration, operation, business offices and activities
437	related specifically thereto in connection with the conduct of
438	an aircraft full service fixed base operation which provides
439	goods and services to the general aviation public in the
440	promotion of air commerce shall be deemed an activity which
441	serves a governmental, municipal, or public purpose or function.
442	Any activity undertaken by a lessee which is permitted under the
443	terms of its lease of real property designated as a public
444	airport as defined in s. 332.004(14) by municipalities,
445	agencies, special districts, authorities, or other public bodies
446	corporate and public bodies politic of the state, a spaceport as
447	defined in s. 331.303(19), or which is located in a deepwater
448	port identified in s. 403.021(9)(b) and owned by one of the
449	foregoing governmental units, subject to a leasehold or other
450	possessory interest of a nongovernmental lessee that is deemed
451	to perform an aviation, airport, aerospace, maritime, or port
452	purpose or operation shall be deemed an activity that serves a
453	governmental, municipal, or public purpose. The use by a lessee,
454	licensee, or management company of real property or a portion
455	thereof as a convention center, visitor center, sports facility
456	with permanent seating, concert hall, arena, stadium, park, or
457	beach is deemed a use that serves a governmental, municipal, or
458	public purpose or function when access to the property is open
459	to the general public with or without a charge for admission. If
460	property deeded to a municipality by the United States is
461	subject to a requirement that the Federal Government, through a
462	schedule established by the Secretary of the Interior, determine
463	that the property is being maintained for public historic
464	preservation, park, or recreational purposes and if those
465	conditions are not met the property will revert back to the
466	Federal Government, then such property shall be deemed to serve
467	a municipal or public purpose. The term "governmental purpose"
468	also includes a direct use of property on federal lands in
469	connection with the Federal Government's Space Exploration
470	Program or spaceport activities as defined in s. 212.02(22).
471	Real property and tangible personal property owned by the
472	Federal Government or the Florida Space Authority and used for
473	defense and space exploration purposes or which is put to a use
474	in support thereof shall be deemed to perform an essential
475	national governmental purpose and shall be exempt. "Owned by the
476	lessee" as used in this chapter does not include personal
477	property, buildings, or other real property improvements used
478	for the administration, operation, business offices and
479	activities related specifically thereto in connection with the
480	conduct of an aircraft full service fixed based operation which
481	provides goods and services to the general aviation public in
482	the promotion of air commerce provided that the real property is
483	designated as an aviation area on an airport layout plan
484	approved by the Federal Aviation Administration. For purposes of
485	determination of "ownership," buildings and other real property
486	improvements which will revert to the airport authority or other
487	governmental unit upon expiration of the term of the lease shall
488	be deemed "owned" by the governmental unit and not the lessee.
489	Providing two-way telecommunications services to the public for
490	hire by the use of a telecommunications facility, as defined in
491	s. 364.02(15) s. 364.02(14), and for which a certificate is
492	required under chapter 364 does not constitute an exempt use for
493	purposes of s. 196.199, unless the telecommunications services
494	are provided by the operator of a public-use airport, as defined
495	in s. 332.004, for the operator's provision of
496	telecommunications services for the airport or its tenants,
497	concessionaires, or licensees, or unless the telecommunications
498	services are provided by a public hospital.  However, property
499	that is being used to provide such telecommunications services
500	on or before October 1, 1997, shall remain exempt, but such
501	exemption expires October 1, 2004.
502	Section 13.  Paragraph (b) of subsection (1) of section
503	199.183, Florida Statutes, is amended to read:
504	199.183  Taxpayers exempt from annual and nonrecurring
505	taxes.--
506	(1)  Intangible personal property owned by this state or
507	any of its political subdivisions or municipalities shall be
508	exempt from taxation under this chapter. This exemption does not
509	apply to:
510	(b)  Property related to the provision of two-way
511	telecommunications services to the public for hire by the use of
512	a telecommunications facility, as defined in s. 364.02(15) s.
513	364.02(14), and for which a certificate is required under
514	chapter 364, when such service is provided by any county,
515	municipality, or other political subdivision of the state. Any
516	immunity of any political subdivision of the state or other
517	entity of local government from taxation of the property used to
518	provide telecommunication services that is taxed as a result of
519	this paragraph is hereby waived. However, intangible personal
520	property related to the provision of such telecommunications
521	services provided by the operator of a public-use airport, as
522	defined in s. 332.004, for the operator's provision of
523	telecommunications services for the airport or its tenants,
524	concessionaires, or licensees, and intangible personal property
525	related to the provision of such telecommunications services
526	provided by a public hospital, are exempt from taxation under
527	this chapter.
528	Section 14.  Subsection (6) of section 212.08, Florida
529	Statutes, is amended to read:
530	212.08  Sales, rental, use, consumption, distribution, and
531	storage tax; specified exemptions.--The sale at retail, the
532	rental, the use, the consumption, the distribution, and the
533	storage to be used or consumed in this state of the following
534	are hereby specifically exempt from the tax imposed by this
535	chapter.
536	(6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are also
537	exempt from the tax imposed by this chapter sales made to the
538	United States Government, a state, or any county, municipality,
539	or political subdivision of a state when payment is made
540	directly to the dealer by the governmental entity. This
541	exemption shall not inure to any transaction otherwise taxable
542	under this chapter when payment is made by a government employee
543	by any means, including, but not limited to, cash, check, or
544	credit card when that employee is subsequently reimbursed by the
545	governmental entity. This exemption does not include sales of
546	tangible personal property made to contractors employed either
547	directly or as agents of any such government or political
548	subdivision thereof when such tangible personal property goes
549	into or becomes a part of public works owned by such government
550	or political subdivision. A determination whether a particular
551	transaction is properly characterized as an exempt sale to a
552	government entity or a taxable sale to a contractor shall be
553	based on the substance of the transaction rather than the form
554	in which the transaction is cast. The department shall adopt
555	rules that give special consideration to factors that govern the
556	status of the tangible personal property before its affixation
557	to real property. In developing these rules, assumption of the
558	risk of damage or loss is of paramount consideration in the
559	determination. This exemption does not include sales, rental,
560	use, consumption, or storage for use in any political
561	subdivision or municipality in this state of machines and
562	equipment and parts and accessories therefor used in the
563	generation, transmission, or distribution of electrical energy
564	by systems owned and operated by a political subdivision in this
565	state for transmission or distribution expansion. Likewise
566	exempt are charges for services rendered by radio and television
567	stations, including line charges, talent fees, or license fees
568	and charges for films, videotapes, and transcriptions used in
569	producing radio or television broadcasts. The exemption provided
570	in this subsection does not include sales, rental, use,
571	consumption, or storage for use in any political subdivision or
572	municipality in this state of machines and equipment and parts
573	and accessories therefor used in providing two-way
574	telecommunications services to the public for hire by the use of
575	a telecommunications facility, as defined in s. 364.02(15) s.
576	364.02(14), and for which a certificate is required under
577	chapter 364, which facility is owned and operated by any county,
578	municipality, or other political subdivision of the state.  Any
579	immunity of any political subdivision of the state or other
580	entity of local government from taxation of the property used to
581	provide telecommunication services that is taxed as a result of
582	this section is hereby waived.  However, the exemption provided
583	in this subsection includes transactions taxable under this
584	chapter which are for use by the operator of a public-use
585	airport, as defined in s. 332.004, in providing such
586	telecommunications services for the airport or its tenants,
587	concessionaires, or licensees, or which are for use by a public
588	hospital for the provision of such telecommunications services.
589	Section 15.  Subsection (8) of section 290.007, Florida
590	Statutes, is amended to read:
591	290.007  State incentives available in enterprise
592	zones.--The following incentives are provided by the state to
593	encourage the revitalization of enterprise zones:
594	(8)  Notwithstanding any law to the contrary, the Public
595	Service Commission may allow public utilities and
596	telecommunications companies to grant discounts of up to 50
597	percent on tariffed rates for services to small businesses
598	located in an enterprise zone designated pursuant to s.
599	290.0065. Such discounts may be granted for a period not to
600	exceed 5 years. For purposes of this subsection, the term
601	"public utility" has the same meaning as in s. 366.02(1) and the
602	term "telecommunications company" has the same meaning as in s.
603	364.02(14) s. 364.02(13).
604	Section 16.  Subsection (3) of section 350.0605, Florida
605	Statutes, is amended to read:
606	350.0605  Former commissioners and employees;
607	representation of clients before commission.--
608	(3)  For a period of 2 years following termination of
609	service on the commission, a former member may not accept
610	employment by or compensation from a business entity which,
611	directly or indirectly, owns or controls a public utility
612	regulated by the commission, from a public utility regulated by
613	the commission, from a business entity which, directly or
614	indirectly, is an affiliate or subsidiary of a public utility
615	regulated by the commission or is an actual business competitor
616	of a local exchange company or public utility regulated by the
617	commission and is otherwise exempt from regulation by the
618	commission under ss. 364.02(14) 364.02(13) and 366.02(1), or
619	from a business entity or trade association that has been a
620	party to a commission proceeding within the 2 years preceding
621	the member's termination of service on the commission.  This
622	subsection applies only to members of the Florida Public Service
623	Commission who are appointed or reappointed after May 10, 1993.
624	Section 17.  Subsection (4) of section 364.602, Florida
625	Statutes, is amended to read:
626	364.602  Definitions.--For purposes of this part:
627	(4)  "Originating party" means any person, firm,
628	corporation, or other entity, including a telecommunications
629	company or a billing clearinghouse, that provides any
630	telecommunications service or information service to a customer
631	or bills a customer through a billing party, except the term
632	"originating party" does not include any entity specifically
633	exempted from the definition of "telecommunications company" as
634	provided in s. 364.02(14) s. 364.02(13).
635	Section 18.  Subsection (5) of section 489.103, Florida
636	Statutes, is amended to read:
637	489.103  Exemptions.--This part does not apply to:
638	(5)  Public utilities, including special gas districts as
639	defined in chapter 189, telecommunications companies as defined
640	in s. 364.02(14) s. 364.02(13), and natural gas transmission
641	companies as defined in s. 368.103(4), on construction,
642	maintenance, and development work performed by their employees,
643	which work, including, but not limited to, work on bridges,
644	roads, streets, highways, or railroads, is incidental to their
645	business. The board shall define, by rule, the term "incidental
646	to their business" for purposes of this subsection.
647	Section 19.  Except as otherwise provided herein, this act
648	shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.