HB 1649CS

CHAMBER ACTION




1The Commerce Council recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to telecommunications regulation; amending
7s. 350.041, F.S.; revising standards of conduct for
8commissioners on the Florida Public Service Commission;
9providing rules of conduct for attendance at a conference;
10prohibiting a commissioner from soliciting anything of
11value from a public utility, its affiliate, or certain
12other parties; amending s. 364.01, F.S.; providing that
13state laws governing business and consumer protection be
14applied to communications activities that are not
15regulated by the commission; revising provisions governing
16the exclusive jurisdiction of the commission; creating s.
17364.011, F.S.; specifying certain services that are exempt
18from oversight by the commission; creating s. 364.012,
19F.S.; directing the commission to maintain liaison with
20federal agencies; providing that ch. 364, F.S., does not
21limit or modify certain duties of a local exchange
22carrier; creating s. 364.013, F.S.; requiring that
23broadband service and voice-over-Internet protocol be free
24of state regulation, except as specifically provided;
25amending s. 364.02, F.S.; defining the terms "broadband
26service" and "VoIP"; revising the definition of "service";
27amending s. 364.0361, F.S.; prohibiting a local government
28from regulating the provision of voice-over-Internet
29protocol; amending s. 364.051, F.S.; providing that
30evidence of damage caused by a tropical storm system
31constitutes a compelling showing of changed circumstances
32to justify a change in rates; revising procedures to
33recover certain costs and expenses; providing conditions
34to qualify for filing a petition for recovery; providing
35for the commission to order a line-item charge for a
36certain period to recover costs and expenses of such
37damage; limiting amount of such charge; providing for
38verification of amounts collected; limiting the number of
39petitions for recovery of costs and expenses; amending s.
40364.10, F.S.; revising the income threshold for
41eligibility for Lifeline service; amending s. 364.335,
42F.S.; increasing the maximum allowable filing fee for
43certification of telecommunications carriers; amending s.
44364.336, F.S.; providing minimum regulatory assessment
45fees to be assessed by rule of the commission; repealing
46s. 364.502, F.S., relating to video programming services;
47amending ss. 196.012, 199.183, 212.08, 290.007, 350.0605,
48364.602, and 489.103, F.S.; conforming cross references;
49providing for construction of the act; providing effective
50dates.
51
52Be It Enacted by the Legislature of the State of Florida:
53
54     Section 1.  Paragraphs (h) and (i) are added to subsection
55(2) of section 350.041, Florida Statutes, to read:
56     350.041  Commissioners; standards of conduct.--
57     (2)  STANDARDS OF CONDUCT.--
58     (h)  It shall not be a violation of this section for a
59commissioner who attends an educational program or conference
60organized by an entity other than a public utility, or who
61attends a conference or other meeting of an association of
62regulatory agencies, to participate in meals and events which
63are available generally to all conference participants who have
64paid the conference fee, are available to only state
65commissioners, or, if the commissioner is a committee member or
66speaks at the conference, are available only to committee
67members or speakers. A commissioner who attends such a program
68or conference will not be deemed to have accepted anything from
69a public utility as a result of any differential conference fee
70available to commissioners, governmental employees, or speakers,
71or because of sponsorship or payment by a public utility of
72conference costs, including costs of meals or events included as
73part of the conference program and generally available to all
74participants who have paid the conference fee.
75     (i)  A commissioner may not directly or indirectly, through
76staff or other means, solicit anything of value from any public
77utility regulated by the commission, or from any business entity
78that, whether directly or indirectly, is an affiliate or
79subsidiary of any public utility regulated by the commission, or
80from any party appearing in a proceeding considered by the
81commission in the last 2 years.
82     Section 2.  Subsection (3) and paragraphs (d) and (f) of
83subsection (4) of section 364.01, Florida Statutes, are amended
84to read:
85     364.01  Powers of commission, legislative intent.--
86     (3)  Communications activities that are not regulated by
87the Florida Public Service Commission, including, but not
88limited to, VoIP, wireless, and broadband, are subject to this
89state's generally applicable business regulation and deceptive
90trade practices and consumer protection laws, as enforced by the
91appropriate state authority or through actions in the judicial
92system. This chapter does not limit the availability to any
93party of any remedy under state or federal antitrust laws. The
94Legislature finds that the competitive provision of
95telecommunications services, including local exchange
96telecommunications service, is in the public interest and will
97provide customers with freedom of choice, encourage the
98introduction of new telecommunications service, encourage
99technological innovation, and encourage investment in
100telecommunications infrastructure. The Legislature further finds
101that the transition from the monopoly provision of local
102exchange service to the competitive provision thereof will
103require appropriate regulatory oversight to protect consumers
104and provide for the development of fair and effective
105competition, but nothing in this chapter shall limit the
106availability to any party of any remedy under state or federal
107antitrust laws. The Legislature further finds that changes in
108regulations allowing increased competition in telecommunications
109services could provide the occasion for increases in the
110telecommunications workforce; therefore, it is in the public
111interest that competition in telecommunications services lead to
112a situation that enhances the high-technological skills and the
113economic status of the telecommunications workforce. The
114Legislature further finds that the provision of voice-over-
115Internet protocol (VOIP) free of unnecessary regulation,
116regardless of the provider, is in the public interest.
117     (4)  The commission shall exercise its exclusive
118jurisdiction in order to:
119     (d)  Promote competition by encouraging innovation and
120investment in new entrants into telecommunications markets and
121by allowing a transitional period in which new and emerging
122technologies entrants are subject to a reduced lesser level of
123regulatory oversight than local exchange telecommunications
124companies.
125     (f)  Eliminate any rules or and/or regulations which will
126delay or impair the transition to competition.
127     Section 3.  Section 364.011, Florida Statutes, is created
128to read:
129     364.011  Exemptions from commission jurisdiction.--The
130following services are exempt from oversight by the commission,
131except to the extent delineated in this chapter or specifically
132authorized by federal law:
133     (1)  Intrastate interexchange telecommunications services.
134     (2)  Broadband services, regardless of the provider,
135platform, or protocol.
136     (3)  VoIP.
137     (4)  Wireless telecommunications, including commercial
138mobile radio services.
139     Section 4.  Section 364.012, Florida Statutes, is created
140to read:
141     364.012  Consistency with federal law.--
142     (1)  In order to promote commission coordination with
143federal policymakers and regulatory agencies, the commission
144shall maintain continuous liaisons with appropriate federal
145agencies whose policy decisions and rulemaking authority affect
146those telecommunications companies over which the commission has
147jurisdiction. The commission is encouraged to participate in the
148proceedings of federal agencies in cases in which the state's
149consumers may be affected and to convey the commission's policy
150positions and information requirements in order to achieve
151greater efficiency in regulation.
152     (2)  This chapter does not limit or modify the duties of a
153local exchange carrier to provide unbundled access to network
154elements or the commission's authority to arbitrate and enforce
155interconnection agreements to the extent that those elements are
156required under 47 U.S.C. ss. 251 and 252, and under any
157regulations issued by the Federal Communications Commission at
158rates determined in accordance with the standards established by
159the Federal Communications Commission pursuant to 47 C.F.R. ss.
16051.503-51.513, inclusive of any successor regulation or
161successor forbearance of regulation.
162     Section 5.  Section 364.013, Florida Statutes, is created
163to read:
164     364.013  Emerging and advanced services.--Broadband service
165and the provision of voice-over-Internet protocol (VoIP) shall
166be free of state regulation, except as delineated in this
167chapter or as specifically authorized by federal law, regardless
168of the provider, platform, or protocol.
169     Section 6.  Section 364.02, Florida Statutes, is amended to
170read:
171     364.02  Definitions.--As used in this chapter:
172     (1)  "Basic local telecommunications service" means
173voice-grade, flat-rate residential, and flat-rate single-line
174business local exchange services which provide dial tone, local
175usage necessary to place unlimited calls within a local exchange
176area, dual tone multifrequency dialing, and access to the
177following:  emergency services such as "911," all locally
178available interexchange companies, directory assistance,
179operator services, relay services, and an alphabetical directory
180listing. For a local exchange telecommunications company, such
181term shall include any extended area service routes, and
182extended calling service in existence or ordered by the
183commission on or before July 1, 1995.
184     (2)  "Broadband service" means any service that consists of
185or includes the offering of the capability to transmit or
186receive information at a rate that is not less than 200 kilobits
187per second and either:
188     (a)  Is used to provide access to the Internet; or
189     (b)  Provides computer processing, information, storage,
190information content, or protocol conversion in combination with
191such service.
192
193The definition of broadband service does not include any
194intrastate telecommunications services that have been tariffed
195with the commission on or before January 1, 2005.
196     (3)(2)  "Commercial mobile radio service provider" means a
197commercial mobile radio service provider as defined by and
198pursuant to 47 U.S.C. ss. 153(n) and 332(d).
199     (4)(3)  "Commission" means the Florida Public Service
200Commission.
201     (5)(4)  "Competitive local exchange telecommunications
202company" means any company certificated by the commission to
203provide local exchange telecommunications services in this state
204on or after July 1, 1995.
205     (6)(5)  "Corporation" includes a corporation, company,
206association, or joint stock association.
207     (7)(6)  "Intrastate interexchange telecommunications
208company" means any entity that provides intrastate interexchange
209telecommunications services.
210     (8)(7)  "Local exchange telecommunications company" means
211any company certificated by the commission to provide local
212exchange telecommunications service in this state on or before
213June 30, 1995.
214     (9)(8)  "Monopoly service" means a telecommunications
215service for which there is no effective competition, either in
216fact or by operation of law.
217     (10)(9)  "Nonbasic service" means any telecommunications
218service provided by a local exchange telecommunications company
219other than a basic local telecommunications service, a local
220interconnection arrangement described in s. 364.16, or a network
221access service described in s. 364.163.
222     (11)(10)  "Operator service" includes, but is not limited
223to, billing or completion of third-party, person-to-person,
224collect, or calling card or credit card calls through the use of
225a live operator or automated equipment.
226     (12)(11)  "Operator service provider" means a person who
227furnishes operator service through a call aggregator.
228     (13)(12)  "Service" is to be construed in its broadest and
229most inclusive sense. The term "service" does not include
230broadband service or voice-over-Internet protocol service for
231purposes of regulation by the commission. Nothing herein shall
232affect the rights and obligations of any entity related to the
233payment of switched network access rates or other intercarrier
234compensation, if any, related to voice-over-Internet protocol
235service. Notwithstanding the provisions of s. 364.013 and the
236exemption of services pursuant to this subsection, the
237commission may arbitrate, enforce, or approve interconnection
238agreements and resolve disputes as provided by 47 U.S.C. ss. 251
239and 252 or any other applicable federal law or regulation. With
240respect to the services exempted in this subsection, regardless
241of the technology, the duties of a local exchange
242telecommunications company are only those that the company is
243obligated to extend or provide under applicable federal law and
244regulations.
245     (14)(13)  "Telecommunications company" includes every
246corporation, partnership, and person and their lessees,
247trustees, or receivers appointed by any court whatsoever, and
248every political subdivision in the state, offering two-way
249telecommunications service to the public for hire within this
250state by the use of a telecommunications facility. The term
251"telecommunications company" does not include:
252     (a)  An entity which provides a telecommunications facility
253exclusively to a certificated telecommunications company;
254     (b)  An entity which provides a telecommunications facility
255exclusively to a company which is excluded from the definition
256of a telecommunications company under this subsection;
257     (c)  A commercial mobile radio service provider;
258     (d)  A facsimile transmission service;
259     (e)  A private computer data network company not offering
260service to the public for hire;
261     (f)  A cable television company providing cable service as
262defined in 47 U.S.C. s. 522; or
263     (g)  An intrastate interexchange telecommunications
264company.
265
266However, each commercial mobile radio service provider and each
267intrastate interexchange telecommunications company shall
268continue to be liable for any taxes imposed pursuant to chapters
269202, 203 and 212 and any fees assessed pursuant to ss. 364.025
270and 364.336. Each intrastate interexchange telecommunications
271company shall continue to be subject to ss. 364.04, 364.10(3)(a)
272and (d), 364.163, 364.285, 364.501, 364.603, and 364.604, shall
273provide the commission with such current information as the
274commission deems necessary to contact and communicate with the
275company, shall continue to pay intrastate switched network
276access rates or other intercarrier compensation to the local
277exchange telecommunications company or the competitive local
278exchange telecommunications company for the origination and
279termination of interexchange telecommunications service, and
280shall reduce its intrastate long distance toll rates in
281accordance with s. 364.163(2).
282     (15)(14)  "Telecommunications facility" includes real
283estate, easements, apparatus, property, and routes used and
284operated to provide two-way telecommunications service to the
285public for hire within this state.
286     (16)  "VoIP" means the voice-over-Internet protocol as that
287term is defined in federal law.
288     Section 7.  Section 364.0361, Florida Statutes, is amended
289to read:
290     364.0361  Local government authority; nondiscriminatory
291exercise.--A local government shall treat each
292telecommunications company in a nondiscriminatory manner when
293exercising its authority to grant franchises to a
294telecommunications company or to otherwise establish conditions
295or compensation for the use of rights-of-way or other public
296property by a telecommunications company. A local government may
297not directly or indirectly regulate the terms and conditions,
298including, but not limited to, the operating systems,
299qualifications, services, service quality, service territory,
300and prices, applicable to or in connection with the provision of
301any voice-over-Internet protocol, regardless of the provider,
302platform, or protocol, or any broadband or information service.
303This section does not relieve a provider from any obligations
304under s. 166.046 or s. 337.401.
305     Section 8.  Effective upon this act becoming a law,
306subsection (4) of section 364.051, Florida Statutes, is amended
307to read:
308     364.051  Price regulation.--
309     (4)(a)  Notwithstanding the provisions of subsection (2),
310any local exchange telecommunications company that believes
311circumstances have changed substantially to justify any increase
312in the rates for basic local telecommunications services may
313petition the commission for a rate increase, but the commission
314shall grant the such petition only after an opportunity for a
315hearing and a compelling showing of changed circumstances. The
316costs and expenses of any government program or project required
317in part II may shall not be recovered under this subsection
318unless the such costs and expenses are incurred in the absence
319of a bid and subject to carrier-of-last-resort obligations as
320provided for in part II. The commission shall act upon the any
321such petition within 120 days after of its filing.
322     (b)  For purposes of this section, evidence of damage to
323the lines, plants, or facilities of a local exchange
324telecommunications company that is subject to carrier-of-last-
325resort obligations, which damage is the result of a tropical
326system occurring after June 1, 2005, and named by the National
327Hurricane Center, constitutes a compelling showing of changed
328circumstances.
329     1.  A company may file a petition to recover its intrastate
330costs and expenses relating to repairing, restoring, or
331replacing the lines, plants, or facilities damaged by a named
332tropical system.
333     2.  The commission shall verify the intrastate costs and
334expenses submitted by the company in support of its petition.
335     3.  The company must show and the commission shall
336determine whether the intrastate costs and expenses are
337reasonable under the circumstances for the named tropical
338system.
339     4.  A company having a storm reserve may recover tropical-
340system-related costs and expenses from its customers only in
341excess of any amount available in the storm reserve fund.
342     5.  The commission may determine the amount of any increase
343that the company may charge its customers, but the charge per
344line item may not exceed 50 cents per month per customer line
345for a period of not more than 12 months.
346     6.  The commission may order the company to add an equal
347line-item charge per access line to the billing statement of the
348company's retail basic local telecommunications service
349customers, its retail nonbasic telecommunications service
350customers, and, to the extent the commission determines
351appropriate, its wholesale loop unbundled network element
352customers. At the end of the collection period, the commission
353shall verify that the collected amount does not exceed the
354amount authorized by the order. If collections exceed the
355ordered amount, the commission shall order the company to refund
356the excess.
357     7.  In order to qualify for filing a petition under this
358paragraph, a company with 1 million or more access lines, but
359fewer than 3 million access lines, must have tropical-system-
360related costs and expenses exceeding $1.5 million, and a company
361with 3 million or more access lines must have tropical-system-
362related costs and expenses of $5 million or more. A company with
363fewer than 1 million access lines is not required to meet a
364minimum damage threshold in order to qualify to file a petition
365under this paragraph.
366     8.  A company may file only one petition for storm recovery
367in any 12-month period for the previous storm season, but the
368application may cover damages from more than one named tropical
369system.
370
371This paragraph is not intended to adversely affect the
372commission's consideration of any petition for an increase in
373basic rates to recover costs related to storm damage which was
374filed before the effective date of this act.
375     Section 9.  Paragraph (a) of subsection (3) of section
376364.10, Florida Statutes, is amended to read:
377     364.10  Undue advantage to person or locality prohibited;
378Lifeline service.--
379     (3)(a)  Effective September 1, 2003, any local exchange
380telecommunications company authorized by the commission to
381reduce its switched network access rate pursuant to s. 364.164
382shall have tariffed and shall provide Lifeline service to any
383otherwise eligible customer or potential customer who meets an
384income eligibility test at 135 125 percent or less of the
385federal poverty income guidelines for Lifeline customers. Such a
386test for eligibility must augment, rather than replace, the
387eligibility standards established by federal law and based on
388participation in certain low-income assistance programs. Each
389intrastate interexchange telecommunications company shall,
390effective September 1, 2003, file a tariff providing at a
391minimum the intrastate interexchange telecommunications
392carrier's current Lifeline benefits and exemptions to Lifeline
393customers who meet the income eligibility test set forth in this
394subsection. The Office of Public Counsel shall certify and
395maintain claims submitted by a customer for eligibility under
396the income test authorized by this subsection.
397     Section 10.  Paragraph (c) of subsection (1) of section
398364.335, Florida Statutes, is amended to read:
399     364.335  Application for certificate.--
400     (1)  Each applicant for a certificate shall:
401     (c)  File the application fee required by the commission in
402an amount not to exceed $500 $250. Such fees shall be deposited
403in accordance with s. 350.113.
404     Section 11.  Section 364.336, Florida Statutes, is amended
405to read:
406     364.336  Regulatory assessment fees.--Notwithstanding any
407provisions of law to the contrary, each telecommunications
408company licensed or operating under this chapter, for any part
409of the preceding 6-month period, shall pay to the commission,
410within 30 days following the end of each 6-month period, a fee
411that may not exceed 0.25 percent annually of its gross operating
412revenues derived from intrastate business, except, for purposes
413of this section and the fee specified in s. 350.113(3), any
414amount paid to another telecommunications company for the use of
415any telecommunications network shall be deducted from the gross
416operating revenue for purposes of computing the fee due. The
417commission shall by rule assess a minimum fee in an amount up to
418$1,000. The minimum amount may be different depending on the
419type of service provided by the telecommunications company and
420shall, to the extent practicable, be related to the cost of
421regulating such type of company. Differences, if any, between
422the amount paid in any 6-month period and the amount actually
423determined by the commission to be due shall, upon motion by the
424commission, be immediately paid or refunded. Fees under this
425section may not be less than $50 annually. Such fees shall be
426deposited in accordance with s. 350.113. The commission may by
427rule establish criteria for payment of the regulatory assessment
428fee on an annual basis rather than on a semiannual basis.
429     Section 12.  Section 364.502, Florida Statutes, is
430repealed.
431     Section 13.  Subsection (6) of section 196.012, Florida
432Statutes, is amended to read:
433     196.012  Definitions.--For the purpose of this chapter, the
434following terms are defined as follows, except where the context
435clearly indicates otherwise:
436     (6)  Governmental, municipal, or public purpose or function
437shall be deemed to be served or performed when the lessee under
438any leasehold interest created in property of the United States,
439the state or any of its political subdivisions, or any
440municipality, agency, special district, authority, or other
441public body corporate of the state is demonstrated to perform a
442function or serve a governmental purpose which could properly be
443performed or served by an appropriate governmental unit or which
444is demonstrated to perform a function or serve a purpose which
445would otherwise be a valid subject for the allocation of public
446funds. For purposes of the preceding sentence, an activity
447undertaken by a lessee which is permitted under the terms of its
448lease of real property designated as an aviation area on an
449airport layout plan which has been approved by the Federal
450Aviation Administration and which real property is used for the
451administration, operation, business offices and activities
452related specifically thereto in connection with the conduct of
453an aircraft full service fixed base operation which provides
454goods and services to the general aviation public in the
455promotion of air commerce shall be deemed an activity which
456serves a governmental, municipal, or public purpose or function.
457Any activity undertaken by a lessee which is permitted under the
458terms of its lease of real property designated as a public
459airport as defined in s. 332.004(14) by municipalities,
460agencies, special districts, authorities, or other public bodies
461corporate and public bodies politic of the state, a spaceport as
462defined in s. 331.303(19), or which is located in a deepwater
463port identified in s. 403.021(9)(b) and owned by one of the
464foregoing governmental units, subject to a leasehold or other
465possessory interest of a nongovernmental lessee that is deemed
466to perform an aviation, airport, aerospace, maritime, or port
467purpose or operation shall be deemed an activity that serves a
468governmental, municipal, or public purpose. The use by a lessee,
469licensee, or management company of real property or a portion
470thereof as a convention center, visitor center, sports facility
471with permanent seating, concert hall, arena, stadium, park, or
472beach is deemed a use that serves a governmental, municipal, or
473public purpose or function when access to the property is open
474to the general public with or without a charge for admission. If
475property deeded to a municipality by the United States is
476subject to a requirement that the Federal Government, through a
477schedule established by the Secretary of the Interior, determine
478that the property is being maintained for public historic
479preservation, park, or recreational purposes and if those
480conditions are not met the property will revert back to the
481Federal Government, then such property shall be deemed to serve
482a municipal or public purpose. The term "governmental purpose"
483also includes a direct use of property on federal lands in
484connection with the Federal Government's Space Exploration
485Program or spaceport activities as defined in s. 212.02(22).
486Real property and tangible personal property owned by the
487Federal Government or the Florida Space Authority and used for
488defense and space exploration purposes or which is put to a use
489in support thereof shall be deemed to perform an essential
490national governmental purpose and shall be exempt. "Owned by the
491lessee" as used in this chapter does not include personal
492property, buildings, or other real property improvements used
493for the administration, operation, business offices and
494activities related specifically thereto in connection with the
495conduct of an aircraft full service fixed based operation which
496provides goods and services to the general aviation public in
497the promotion of air commerce provided that the real property is
498designated as an aviation area on an airport layout plan
499approved by the Federal Aviation Administration. For purposes of
500determination of "ownership," buildings and other real property
501improvements which will revert to the airport authority or other
502governmental unit upon expiration of the term of the lease shall
503be deemed "owned" by the governmental unit and not the lessee.
504Providing two-way telecommunications services to the public for
505hire by the use of a telecommunications facility, as defined in
506s. 364.02(15) s. 364.02(14), and for which a certificate is
507required under chapter 364 does not constitute an exempt use for
508purposes of s. 196.199, unless the telecommunications services
509are provided by the operator of a public-use airport, as defined
510in s. 332.004, for the operator's provision of
511telecommunications services for the airport or its tenants,
512concessionaires, or licensees, or unless the telecommunications
513services are provided by a public hospital.  However, property
514that is being used to provide such telecommunications services
515on or before October 1, 1997, shall remain exempt, but such
516exemption expires October 1, 2004.
517     Section 14.  Paragraph (b) of subsection (1) of section
518199.183, Florida Statutes, is amended to read:
519     199.183  Taxpayers exempt from annual and nonrecurring
520taxes.--
521     (1)  Intangible personal property owned by this state or
522any of its political subdivisions or municipalities shall be
523exempt from taxation under this chapter. This exemption does not
524apply to:
525     (b)  Property related to the provision of two-way
526telecommunications services to the public for hire by the use of
527a telecommunications facility, as defined in s. 364.02(15) s.
528364.02(14), and for which a certificate is required under
529chapter 364, when such service is provided by any county,
530municipality, or other political subdivision of the state. Any
531immunity of any political subdivision of the state or other
532entity of local government from taxation of the property used to
533provide telecommunication services that is taxed as a result of
534this paragraph is hereby waived. However, intangible personal
535property related to the provision of such telecommunications
536services provided by the operator of a public-use airport, as
537defined in s. 332.004, for the operator's provision of
538telecommunications services for the airport or its tenants,
539concessionaires, or licensees, and intangible personal property
540related to the provision of such telecommunications services
541provided by a public hospital, are exempt from taxation under
542this chapter.
543     Section 15.  Subsection (6) of section 212.08, Florida
544Statutes, is amended to read:
545     212.08  Sales, rental, use, consumption, distribution, and
546storage tax; specified exemptions.--The sale at retail, the
547rental, the use, the consumption, the distribution, and the
548storage to be used or consumed in this state of the following
549are hereby specifically exempt from the tax imposed by this
550chapter.
551     (6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are also
552exempt from the tax imposed by this chapter sales made to the
553United States Government, a state, or any county, municipality,
554or political subdivision of a state when payment is made
555directly to the dealer by the governmental entity. This
556exemption shall not inure to any transaction otherwise taxable
557under this chapter when payment is made by a government employee
558by any means, including, but not limited to, cash, check, or
559credit card when that employee is subsequently reimbursed by the
560governmental entity. This exemption does not include sales of
561tangible personal property made to contractors employed either
562directly or as agents of any such government or political
563subdivision thereof when such tangible personal property goes
564into or becomes a part of public works owned by such government
565or political subdivision. A determination whether a particular
566transaction is properly characterized as an exempt sale to a
567government entity or a taxable sale to a contractor shall be
568based on the substance of the transaction rather than the form
569in which the transaction is cast. The department shall adopt
570rules that give special consideration to factors that govern the
571status of the tangible personal property before its affixation
572to real property. In developing these rules, assumption of the
573risk of damage or loss is of paramount consideration in the
574determination. This exemption does not include sales, rental,
575use, consumption, or storage for use in any political
576subdivision or municipality in this state of machines and
577equipment and parts and accessories therefor used in the
578generation, transmission, or distribution of electrical energy
579by systems owned and operated by a political subdivision in this
580state for transmission or distribution expansion. Likewise
581exempt are charges for services rendered by radio and television
582stations, including line charges, talent fees, or license fees
583and charges for films, videotapes, and transcriptions used in
584producing radio or television broadcasts. The exemption provided
585in this subsection does not include sales, rental, use,
586consumption, or storage for use in any political subdivision or
587municipality in this state of machines and equipment and parts
588and accessories therefor used in providing two-way
589telecommunications services to the public for hire by the use of
590a telecommunications facility, as defined in s. 364.02(15) s.
591364.02(14), and for which a certificate is required under
592chapter 364, which facility is owned and operated by any county,
593municipality, or other political subdivision of the state.  Any
594immunity of any political subdivision of the state or other
595entity of local government from taxation of the property used to
596provide telecommunication services that is taxed as a result of
597this section is hereby waived.  However, the exemption provided
598in this subsection includes transactions taxable under this
599chapter which are for use by the operator of a public-use
600airport, as defined in s. 332.004, in providing such
601telecommunications services for the airport or its tenants,
602concessionaires, or licensees, or which are for use by a public
603hospital for the provision of such telecommunications services.
604     Section 16.  Subsection (8) of section 290.007, Florida
605Statutes, is amended to read:
606     290.007  State incentives available in enterprise
607zones.--The following incentives are provided by the state to
608encourage the revitalization of enterprise zones:
609     (8)  Notwithstanding any law to the contrary, the Public
610Service Commission may allow public utilities and
611telecommunications companies to grant discounts of up to 50
612percent on tariffed rates for services to small businesses
613located in an enterprise zone designated pursuant to s.
614290.0065. Such discounts may be granted for a period not to
615exceed 5 years. For purposes of this subsection, the term
616"public utility" has the same meaning as in s. 366.02(1) and the
617term "telecommunications company" has the same meaning as in s.
618364.02(14) s. 364.02(13).
619     Section 17.  Subsection (3) of section 350.0605, Florida
620Statutes, is amended to read:
621     350.0605  Former commissioners and employees;
622representation of clients before commission.--
623     (3)  For a period of 2 years following termination of
624service on the commission, a former member may not accept
625employment by or compensation from a business entity which,
626directly or indirectly, owns or controls a public utility
627regulated by the commission, from a public utility regulated by
628the commission, from a business entity which, directly or
629indirectly, is an affiliate or subsidiary of a public utility
630regulated by the commission or is an actual business competitor
631of a local exchange company or public utility regulated by the
632commission and is otherwise exempt from regulation by the
633commission under ss. 364.02(14) 364.02(13) and 366.02(1), or
634from a business entity or trade association that has been a
635party to a commission proceeding within the 2 years preceding
636the member's termination of service on the commission.  This
637subsection applies only to members of the Florida Public Service
638Commission who are appointed or reappointed after May 10, 1993.
639     Section 18.  Subsection (4) of section 364.602, Florida
640Statutes, is amended to read:
641     364.602  Definitions.--For purposes of this part:
642     (4)  "Originating party" means any person, firm,
643corporation, or other entity, including a telecommunications
644company or a billing clearinghouse, that provides any
645telecommunications service or information service to a customer
646or bills a customer through a billing party, except the term
647"originating party" does not include any entity specifically
648exempted from the definition of "telecommunications company" as
649provided in s. 364.02(14) s. 364.02(13).
650     Section 19.  Subsection (5) of section 489.103, Florida
651Statutes, is amended to read:
652     489.103  Exemptions.--This part does not apply to:
653     (5)  Public utilities, including special gas districts as
654defined in chapter 189, telecommunications companies as defined
655in s. 364.02(14) s. 364.02(13), and natural gas transmission
656companies as defined in s. 368.103(4), on construction,
657maintenance, and development work performed by their employees,
658which work, including, but not limited to, work on bridges,
659roads, streets, highways, or railroads, is incidental to their
660business. The board shall define, by rule, the term "incidental
661to their business" for purposes of this subsection.
662     Section 20.  Nothing in this act shall be construed to
663limit the rights of local government or the duties of providers
664of cable service to comply with any and all requirements of
665federal, state, or local law, including, but not limited to, 47
666U.S.C. 541 and ss. 166.046 and 337.401, Florida Statutes.
667     Section 21.  Except as otherwise provided herein, this act
668shall take effect July 1, 2005.


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