Senate Bill sb2068c3

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    Florida Senate - 2005             CS for CS for CS for SB 2068

    By the Committees on Government Efficiency Appropriations;
    Commerce and Consumer Services; Communications and Public
    Utilities; and Senators Constantine and Clary



    593-2340-05

  1                      A bill to be entitled

  2         An act relating to telecommunications; amending

  3         s. 364.01, F.S.; specifying the exclusive

  4         jurisdiction of the Florida Public Service

  5         Commission to regulate telecommunications

  6         companies; providing that state laws governing

  7         business and consumer protection be applied to

  8         communications activities that are not

  9         regulated by the commission; revising

10         provisions governing the exclusive jurisdiction

11         of the commission; creating s. 364.011, F.S.;

12         specifying certain services that are exempt

13         from oversight by the commission; creating s.

14         364.012, F.S.; requiring the commission to

15         coordinate with federal agencies; providing

16         that ch. 364, F.S., does not limit or modify

17         certain duties of a local exchange carrier;

18         creating s. 364.013, F.S.; requiring that

19         broadband service remain free of state and

20         local regulation; requiring that

21         voice-over-Internet protocol remain free of

22         regulation, except as specifically provided in

23         ch. 364, F.S., or by federal law; amending s.

24         364.02, F.S.; defining the terms "broadband

25         service" and "VoIP"; redefining the term

26         "service"; amending s. 364.0361, F.S.;

27         prohibiting a local government from regulating

28         voice-over-Internet protocol regardless of the

29         platform or provider; amending s. 364.10, F.S.;

30         revising the income threshold for eligibility

31         for Lifeline service; repealing s. 364.502,

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 1         F.S., relating to video programming services;

 2         amending s. 364.335, F.S.; increasing to $500

 3         from $250 the maximum allowable filing fee for

 4         certification of telecommunications carriers;

 5         amending s. 364.336, F.S.; authorizing the

 6         Public Service Commission to establish a

 7         minimum fee of up to $1,000; authorizing

 8         different fees for different types of services

 9         provided by telecommunications companies;

10         amending ss. 196.012, 199.183, 212.08, 290.007,

11         350.0605, 364.602, and 489.103, F.S.;

12         conforming cross-references; providing

13         clarification of rights of local governments

14         and duties of cable service providers to comply

15         with certain laws and regulations; amending s.

16         364.051, F.S.; providing that damage to the

17         equipment and facilities of a local exchange

18         telecommunications as a result of a named

19         tropical system constitutes a compelling

20         showing of changed circumstances to justify a

21         rate increase; allowing such companies to

22         petition for recovery of such costs and

23         expenses; requiring the Public Service

24         Commission to verify the intrastate costs and

25         expenses for repairing, restoring, or replacing

26         damaged lines, plants, or facilities; requiring

27         the commission to determine whether the

28         intrastate costs and expenses are reasonable;

29         requiring a company to exhaust any

30         storm-reserve funds prior to recovery from

31         customers; providing that the commission may

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 1         authorize adding an equal line-item charge per

 2         access line for certain customers; providing

 3         for a rate cap and providing the maximum number

 4         of months the rate may be imposed; providing a

 5         12-month limit for the application; allowing

 6         recovery for more than one storm within the

 7         limit; providing an effective date.

 8  

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

10  

11         Section 1.  Section 364.01, Florida Statutes, is

12  amended to read:

13         364.01  Powers of commission, legislative intent.--

14         (1)  The Florida Public Service Commission shall

15  exercise over and in relation to telecommunications companies

16  the powers conferred by this chapter.

17         (2)  It is the legislative intent to give exclusive

18  jurisdiction in all matters set forth in this chapter to the

19  Florida Public Service Commission in regulating

20  telecommunications companies, and such preemption shall

21  supersede any local or special act or municipal charter where

22  any conflict of authority may exist.  However, the provisions

23  of this chapter shall not affect the authority and powers

24  granted in s. 166.231(9) or s. 337.401.

25         (3)  Communications activities that are not regulated

26  by the Florida Public Service Commission, including, but not

27  limited to, VoIP, wireless, and broadband, are subject to this

28  state's generally applicable business regulation and deceptive

29  trade practices and consumer protection laws, as enforced by

30  the appropriate state authority or through actions in the

31  judicial system. This chapter does not limit the availability

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 1  to any party of any remedy or defense under state or federal

 2  antitrust laws. The Legislature finds that the competitive

 3  provision of telecommunications services, including local

 4  exchange telecommunications service, is in the public interest

 5  and will provide customers with freedom of choice, encourage

 6  the introduction of new telecommunications service, encourage

 7  technological innovation, and encourage investment in

 8  telecommunications infrastructure.  The Legislature further

 9  finds that the transition from the monopoly provision of local

10  exchange service to the competitive provision thereof will

11  require appropriate regulatory oversight to protect consumers

12  and provide for the development of fair and effective

13  competition, but nothing in this chapter shall limit the

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

15  antitrust laws.  The Legislature further finds that changes in

16  regulations allowing increased competition in

17  telecommunications services could provide the occasion for

18  increases in the telecommunications workforce; therefore, it

19  is in the public interest that competition in

20  telecommunications services lead to a situation that enhances

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

22  telecommunications workforce. The Legislature further finds

23  that the provision of voice-over-Internet protocol (VOIP) free

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

25  the public interest.

26         (4)  The commission shall exercise its exclusive

27  jurisdiction in order to:

28         (a)  Protect the public health, safety, and welfare by

29  ensuring that basic local telecommunications services are

30  available to all consumers in the state at reasonable and

31  affordable prices.

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 1         (b)  Encourage competition through flexible regulatory

 2  treatment among providers of telecommunications services in

 3  order to ensure the availability of the widest possible range

 4  of consumer choice in the provision of all telecommunications

 5  services.

 6         (c)  Protect the public health, safety, and welfare by

 7  ensuring that monopoly services provided by telecommunications

 8  companies continue to be subject to effective price, rate, and

 9  service regulation.

10         (d)  Promote competition by encouraging innovation and

11  investment in new entrants into telecommunications markets and

12  by allowing a transitional period in which new and emerging

13  technologies entrants are subject to a reduced lesser level of

14  regulatory oversight than local exchange telecommunications

15  companies.

16         (e)  Encourage all providers of telecommunications

17  services to introduce new or experimental telecommunications

18  services free of unnecessary regulatory restraints.

19         (f)  Eliminate any rules or and/or regulations which

20  will delay or impair the transition to competition.

21         (g)  Ensure that all providers of telecommunications

22  services are treated fairly, by preventing anticompetitive

23  behavior and eliminating unnecessary regulatory restraint.

24         (h)  Recognize the continuing emergence of a

25  competitive telecommunications environment through the

26  flexible regulatory treatment of competitive

27  telecommunications services, where appropriate, if doing so

28  does not reduce the availability of adequate basic local

29  telecommunications service to all citizens of the state at

30  reasonable and affordable prices, if competitive

31  telecommunications services are not subsidized by monopoly

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 1  telecommunications services, and if all monopoly services are

 2  available to all competitors on a nondiscriminatory basis.

 3         (i)  Continue its historical role as a surrogate for

 4  competition for monopoly services provided by local exchange

 5  telecommunications companies.

 6         Section 2.  Section 364.011, Florida Statutes, is

 7  created to read:

 8         364.011  Exemptions from commission jurisdiction.--The

 9  following services are exempt from oversight by the

10  commission, except to the extent delineated in this chapter or

11  specifically authorized by federal law:

12         (1)  Intrastate interexchange telecommunications

13  services.

14         (2)  Broadband services, regardless of the provider,

15  platform, or protocol.

16         (3)  VoIP.

17         (4)  Wireless telecommunications, including commercial

18  mobile radio service providers.

19         Section 3.  Section 364.012, Florida Statutes, is

20  created to read:

21         364.012  Consistency with federal law.--

22         (1)  In order to promote commission coordination with

23  federal policymakers and regulatory agencies, the commission

24  shall maintain continuous liaisons with appropriate federal

25  agencies whose policy decisions and rulemaking authority

26  affect those telecommunications companies over which the

27  commission has jurisdiction. The commission is encouraged to

28  participate in the proceedings of federal agencies in cases in

29  which the state's consumers may be affected and to convey the

30  commission's policy positions and information requirements in

31  order to achieve greater efficiency in regulation.

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 1         (2)  This chapter does not limit or modify the duties

 2  of a local exchange carrier to provide unbundled access to

 3  network elements or the commission's authority to arbitrate

 4  and enforce interconnection agreements to the extent that

 5  those elements are required under 47 U.S.C. ss. 251 and 252,

 6  and under any regulations issued by the Federal Communications

 7  Commission at rates determined in accordance with the

 8  standards established by the Federal Communications Commission

 9  pursuant to 47 C.F.R. ss. 51.503-51.513, inclusive of any

10  successor regulation or successor forbearance of regulation.

11         Section 4.  Section 364.013, Florida Statutes, is

12  created to read:

13         364.013  Emerging and advanced services.--Broadband

14  service and the provision of voice-over-Internet-protocol

15  (VoIP) shall be free of state regulation, except as delineated

16  in this chapter or as specifically authorized by federal law,

17  regardless of the provider, platform, or protocol.

18         Section 5.  Section 364.02, Florida Statutes, is

19  amended to read:

20         364.02  Definitions.--As used in this chapter:

21         (1)  "Basic local telecommunications service" means

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

23  business local exchange services which provide dial tone,

24  local usage necessary to place unlimited calls within a local

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

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

27  available interexchange companies, directory assistance,

28  operator services, relay services, and an alphabetical

29  directory listing. For a local exchange telecommunications

30  company, the such term shall include any extended area service

31  

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 1  routes, and extended calling service in existence or ordered

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

 3         (2)  "Broadband service" means any service that

 4  consists of or includes the offering of the capability to

 5  transmit or receive information at a rate that is not less

 6  than 200 kilobits per second and either:

 7         (a)  Is used to provide access to the Internet; or

 8         (b)  Provides computer processing, information storage,

 9  information content, or protocol conversion in combination

10  with the service.

11  

12  The definition of broadband service does not include any

13  intrastate telecommunications services that have been tariffed

14  with the commission on or before January 1, 2005.

15         (3)(2)  "Commercial mobile radio service provider"

16  means a commercial mobile radio service provider as defined by

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

18         (4)(3)  "Commission" means the Florida Public Service

19  Commission.

20         (5)(4)  "Competitive local exchange telecommunications

21  company" means any company certificated by the commission to

22  provide local exchange telecommunications services in this

23  state on or after July 1, 1995.

24         (6)(5)  "Corporation" includes a corporation, company,

25  association, or joint stock association.

26         (7)(6)  "Intrastate interexchange telecommunications

27  company" means any entity that provides intrastate

28  interexchange telecommunications services.

29         (8)(7)  "Local exchange telecommunications company"

30  means any company certificated by the commission to provide

31  

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 1  local exchange telecommunications service in this state on or

 2  before June 30, 1995.

 3         (9)(8)  "Monopoly service" means a telecommunications

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

 5  fact or by operation of law.

 6         (10)(9)  "Nonbasic service" means any

 7  telecommunications service provided by a local exchange

 8  telecommunications company other than a basic local

 9  telecommunications service, a local interconnection

10  arrangement described in s. 364.16, or a network access

11  service described in s. 364.163.

12         (11)(10)  "Operator service" includes, but is not

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

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

15  calls through the use of a live operator or automated

16  equipment.

17         (12)(11)  "Operator service provider" means a person

18  who furnishes operator service through a call aggregator.

19         (13)(12)  "Service" is to be construed in its broadest

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

21  broadband service or voice-over-Internet protocol service for

22  purposes of regulation by the commission. Nothing herein shall

23  affect the rights and obligations of any entity related to the

24  payment of switched network access rates or other intercarrier

25  compensation, if any, related to voice-over-Internet protocol

26  service. Notwithstanding s. 364.013, and the exemption of

27  services pursuant to this subsection, the commission may

28  arbitrate, enforce, or approve interconnection agreements, and

29  resolve disputes as provided by 47 U.S.C. ss. 251 and 252, or

30  any other applicable federal law or regulation.  With respect

31  to the services exempted in this subsection, regardless of the

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 1  technology, the duties of a local exchange telecommunications

 2  company are only those that the company is obligated to extend

 3  or provide under applicable federal law and regulations.

 4         (14)(13)  "Telecommunications company" includes every

 5  corporation, partnership, and person and their lessees,

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

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

 8  telecommunications service to the public for hire within this

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

10  "telecommunications company" does not include:

11         (a)  An entity which provides a telecommunications

12  facility exclusively to a certificated telecommunications

13  company;

14         (b)  An entity which provides a telecommunications

15  facility exclusively to a company which is excluded from the

16  definition of a telecommunications company under this

17  subsection;

18         (c)  A commercial mobile radio service provider;

19         (d)  A facsimile transmission service;

20         (e)  A private computer data network company not

21  offering service to the public for hire;

22         (f)  A cable television company providing cable service

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

24         (g)  An intrastate interexchange telecommunications

25  company.

26  

27  However, each commercial mobile radio service provider and

28  each intrastate interexchange telecommunications company shall

29  continue to be liable for any taxes imposed under pursuant to

30  chapters 202, 203, and 212 and any fees assessed under

31  pursuant to ss. 364.025 and 364.336. Each intrastate

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 1  interexchange telecommunications company shall continue to be

 2  subject to ss. 364.04, 364.10(3)(a) and (d), 364.163, 364.285,

 3  364.501, 364.603, and 364.604, shall provide the commission

 4  with such current information as the commission deems

 5  necessary to contact and communicate with the company, shall

 6  continue to pay intrastate switched network access rates or

 7  other intercarrier compensation to the local exchange

 8  telecommunications company or the competitive local exchange

 9  telecommunications company for the origination and termination

10  of interexchange telecommunications service, and shall reduce

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

12  364.163(2).

13         (15)(14)  "Telecommunications facility" includes real

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

15  operated to provide two-way telecommunications service to the

16  public for hire within this state.

17         (16)  "VoIP" means the voice-over-Internet protocol as

18  that term is defined in federal law.

19         Section 6.  Section 364.0361, Florida Statutes, is

20  amended to read:

21         364.0361  Local government authority; nondiscriminatory

22  exercise.--A local government shall treat each

23  telecommunications company in a nondiscriminatory manner when

24  exercising its authority to grant franchises to a

25  telecommunications company or to otherwise establish

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

27  other public property by a telecommunications company. A local

28  government may not directly or indirectly regulate the terms

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

30  systems, qualifications, services, service quality, service

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

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 1  provision of any voice-over-Internet protocol, regardless of

 2  the platform, provider, or protocol, broadband or information

 3  service. This section does not relieve a provider from any

 4  obligations under s. 166.046 or s. 337.401.

 5         Section 7.  Paragraph (a) of subsection (3) of section

 6  364.10, Florida Statutes, is amended to read:

 7         364.10  Undue advantage to person or locality

 8  prohibited; Lifeline service.--

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

10  telecommunications company authorized by the commission to

11  reduce its switched network access rate under pursuant to s.

12  364.164 shall have tariffed and shall provide Lifeline service

13  to any otherwise eligible customer or potential customer who

14  meets an income eligibility test at 135 125 percent or less of

15  the federal poverty income guidelines for Lifeline customers.

16  The Such a test for eligibility must augment, rather than

17  replace, the eligibility standards established by federal law

18  and based on participation in certain low-income assistance

19  programs. Each intrastate interexchange telecommunications

20  company shall, effective September 1, 2003, file a tariff

21  providing at a minimum the intrastate interexchange

22  telecommunications carrier's current Lifeline benefits and

23  exemptions to Lifeline customers who meet the income

24  eligibility test set forth in this subsection. The Office of

25  Public Counsel shall certify and maintain claims submitted by

26  a customer for eligibility under the income test authorized by

27  this subsection.

28         Section 8.  Section 364.502, Florida Statutes, is

29  repealed.

30         Section 9.  Subsection (1) of section 364.335, Florida

31  Statutes, is amended to read:

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 1         364.335  Application for certificate.--

 2         (1)  Each applicant for a certificate shall:

 3         (a)  Provide all information required by rule or order

 4  of the commission, which may include a detailed inquiry into

 5  the ability of the applicant to provide service, a detailed

 6  inquiry into the territory and facilities involved, and a

 7  detailed inquiry into the existence of service from other

 8  sources within geographical proximity to the territory applied

 9  for.

10         (b)  File with the commission schedules showing all

11  rates for service of every kind furnished by it and all rules

12  and contracts relating to such service.

13         (c)  File the application fee required by the

14  commission in an amount not to exceed $500 $250.  Such fees

15  shall be deposited in accordance with s. 350.113.

16         (d)  Submit an affidavit that the applicant has caused

17  notice of its application to be given to such persons and in

18  such manner as may be prescribed by commission rule.

19         Section 10.  Section 364.336, Florida Statutes, is

20  amended to read:

21         364.336  Regulatory assessment fees.--Notwithstanding

22  any provisions of law to the contrary, each telecommunications

23  company licensed or operating under this chapter, for any part

24  of the preceding 6-month period, shall pay to the commission,

25  within 30 days following the end of each 6-month period, a fee

26  that may not exceed 0.25 percent annually of its gross

27  operating revenues derived from intrastate business, except,

28  for purposes of this section and the fee specified in s.

29  350.113(3), any amount paid to another telecommunications

30  company for the use of any telecommunications network shall be

31  deducted from the gross operating revenue for purposes of

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 1  computing the fee due. The commission shall by rule assess a

 2  minimum fee in an amount up to $1,000. The minimum amount may

 3  vary depending on the type of service provided by the

 4  telecommunications company, and shall, to the extent

 5  practicable, be related to the cost of regulating such type of

 6  company. Differences, if any, between the amount paid in any

 7  6-month period and the amount actually determined by the

 8  commission to be due shall, upon motion by the commission, be

 9  immediately paid or refunded. Fees under this section may not

10  be less than $50 annually.  Such fees shall be deposited in

11  accordance with s. 350.113.  The commission may by rule

12  establish criteria for payment of the regulatory assessment

13  fee on an annual basis rather than on a semiannual basis.

14         Section 11.  Subsection (6) of section 196.012, Florida

15  Statutes, is amended to read:

16         196.012  Definitions.--For the purpose of this chapter,

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

18  context clearly indicates otherwise:

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

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

21  lessee under any leasehold interest created in property of the

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

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

24  other public body corporate of the state is demonstrated to

25  perform a function or serve a governmental purpose which could

26  properly be performed or served by an appropriate governmental

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

28  purpose which would otherwise be a valid subject for the

29  allocation of public funds. For purposes of the preceding

30  sentence, an activity undertaken by a lessee which is

31  permitted under the terms of its lease of real property

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

 2  has been approved by the Federal Aviation Administration and

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

 4  business offices and activities related specifically thereto

 5  in connection with the conduct of an aircraft full service

 6  fixed base operation which provides goods and services to the

 7  general aviation public in the promotion of air commerce shall

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

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

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

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

12  332.004(14) by municipalities, agencies, special districts,

13  authorities, or other public bodies corporate and public

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

15  331.303(19), or which is located in a deepwater port

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

17  foregoing governmental units, subject to a leasehold or other

18  possessory interest of a nongovernmental lessee that is deemed

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

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

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

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

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

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

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

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

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

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

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

30  Government, through a schedule established by the Secretary of

31  the Interior, determine that the property is being maintained

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 1  for public historic preservation, park, or recreational

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

 3  revert back to the Federal Government, then such property

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

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

 6  property on federal lands in connection with the Federal

 7  Government's Space Exploration Program or spaceport activities

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

 9  personal property owned by the Federal Government or the

10  Florida Space Authority and used for defense and space

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

12  thereof shall be deemed to perform an essential national

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

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

15  property, buildings, or other real property improvements used

16  for the administration, operation, business offices and

17  activities related specifically thereto in connection with the

18  conduct of an aircraft full service fixed based operation

19  which provides goods and services to the general aviation

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

21  property is designated as an aviation area on an airport

22  layout plan approved by the Federal Aviation Administration.

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

24  other real property improvements which will revert to the

25  airport authority or other governmental unit upon expiration

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

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

28  telecommunications services to the public for hire by the use

29  of a telecommunications facility, as defined in s. 364.02(15)

30  s.364.02(14), and for which a certificate is required under

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

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 1  s. 196.199, unless the telecommunications services are

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

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

 4  telecommunications services for the airport or its tenants,

 5  concessionaires, or licensees, or unless the

 6  telecommunications services are provided by a public hospital.

 7  However, property that is being used to provide such

 8  telecommunications services on or before October 1, 1997,

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

10  2004.

11         Section 12.  Paragraph (b) of subsection (1) of section

12  199.183, Florida Statutes, is amended to read:

13         199.183  Taxpayers exempt from annual and nonrecurring

14  taxes.--

15         (1)  Intangible personal property owned by this state

16  or any of its political subdivisions or municipalities shall

17  be exempt from taxation under this chapter. This exemption

18  does not apply to:

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

20  telecommunications services to the public for hire by the use

21  of a telecommunications facility, as defined in s. 364.02(15)

22  s. 364.02(14), and for which a certificate is required under

23  chapter 364, when the such service is provided by any county,

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

25  immunity of any political subdivision of the state or other

26  entity of local government from taxation of the property used

27  to provide telecommunication services that is taxed as a

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

29  personal property related to the provision of such

30  telecommunications services provided by the operator of a

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

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 1  operator's provision of telecommunications services for the

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

 3  intangible personal property related to the provision of such

 4  telecommunications services provided by a public hospital, are

 5  exempt from taxation under this chapter.

 6         Section 13.  Subsection (6) of section 212.08, Florida

 7  Statutes, is amended to read:

 8         212.08  Sales, rental, use, consumption, distribution,

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

10  the rental, the use, the consumption, the distribution, and

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

12  following are hereby specifically exempt from the tax imposed

13  by this chapter.

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

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

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

17  municipality, or political subdivision of a state when payment

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

19  This exemption shall not inure to any transaction otherwise

20  taxable under this chapter when payment is made by a

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

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

23  subsequently reimbursed by the governmental entity. This

24  exemption does not include sales of tangible personal property

25  made to contractors employed either directly or as agents of

26  any such government or political subdivision thereof when such

27  tangible personal property goes into or becomes a part of

28  public works owned by such government or political

29  subdivision. A determination whether a particular transaction

30  is properly characterized as an exempt sale to a government

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

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

 2  transaction is cast. The department shall adopt rules that

 3  give special consideration to factors that govern the status

 4  of the tangible personal property before its affixation to

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

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

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

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

 9  subdivision or municipality in this state of machines and

10  equipment and parts and accessories therefor used in the

11  generation, transmission, or distribution of electrical energy

12  by systems owned and operated by a political subdivision in

13  this state for transmission or distribution expansion.

14  Likewise exempt are charges for services rendered by radio and

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

16  license fees and charges for films, videotapes, and

17  transcriptions used in producing radio or television

18  broadcasts. The exemption provided in this subsection does not

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

20  any political subdivision or municipality in this state of

21  machines and equipment and parts and accessories therefor used

22  in providing two-way telecommunications services to the public

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

24  defined in s. 364.02(15) s. 364.02(14), and for which a

25  certificate is required under chapter 364, which facility is

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

27  political subdivision of the state.  Any immunity of any

28  political subdivision of the state or other entity of local

29  government from taxation of the property used to provide

30  telecommunication services that is taxed as a result of this

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

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 1  this subsection includes transactions taxable under this

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

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

 4  telecommunications services for the airport or its tenants,

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

 6  public hospital for the provision of such telecommunications

 7  services.

 8         Section 14.  Subsection (8) of section 290.007, Florida

 9  Statutes, is amended to read:

10         290.007  State incentives available in enterprise

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

12  encourage the revitalization of enterprise zones:

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

14  Public Service Commission may allow public utilities and

15  telecommunications companies to grant discounts of up to 50

16  percent on tariffed rates for services to small businesses

17  located in an enterprise zone designated pursuant to s.

18  290.0065. Such discounts may be granted for a period not to

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

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

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

22  in s. 364.02(14) s. 364.02(13).

23         Section 15.  Subsection (3) of section 350.0605,

24  Florida Statutes, is amended to read:

25         350.0605  Former commissioners and employees;

26  representation of clients before commission.--

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

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

29  employment by or compensation from a business entity which,

30  directly or indirectly, owns or controls a public utility

31  regulated by the commission, from a public utility regulated

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

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

 3  regulated by the commission or is an actual business

 4  competitor of a local exchange company or public utility

 5  regulated by the commission and is otherwise exempt from

 6  regulation by the commission under ss. 364.02(14) 364.02(13)

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

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

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

10  commission.  This subsection applies only to members of the

11  Florida Public Service Commission who are appointed or

12  reappointed after May 10, 1993.

13         Section 16.  Subsection (4) of section 364.602, Florida

14  Statutes, is amended to read:

15         364.602  Definitions.--For purposes of this part:

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

17  corporation, or other entity, including a telecommunications

18  company or a billing clearinghouse, that provides any

19  telecommunications service or information service to a

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

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

22  specifically exempted from the definition of

23  "telecommunications company" as provided in s. 364.02(14) s.

24  364.02(13).

25         Section 17.  Subsection (5) of section 489.103, Florida

26  Statutes, is amended to read:

27         489.103  Exemptions.--This part does not apply to:

28         (5)  Public utilities, including special gas districts

29  as defined in chapter 189, telecommunications companies as

30  defined in s. 364.02(14) s. 364.02(13) and natural gas

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

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 1  construction, maintenance, and development work performed by

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

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

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

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

 6  subsection.

 7         Section 18.  This act may not be construed to limit the

 8  rights of local government or the duties of providers of cable

 9  service to comply with any and all requirements of federal,

10  state, or local law, including, but not limited to, 47 U.S.C.

11  s.541, s. 166.046, and s. 337.401.

12         Section 19.  Subsection (4) of section 364.051, Florida

13  Statutes, is amended to read:

14         364.051  Price regulation.--

15         (4)(a)  Notwithstanding the provisions of subsection

16  (2), any local exchange telecommunications company that

17  believes circumstances have changed substantially to justify

18  any increase in the rates for basic local telecommunications

19  services may petition the commission for a rate increase, but

20  the commission shall grant the such petition only after an

21  opportunity for a hearing and a compelling showing of changed

22  circumstances. The costs and expenses of any government

23  program or project required in part II may shall not be

24  recovered under this subsection unless the such costs and

25  expenses are incurred in the absence of a bid and subject to

26  carrier-of-last-resort obligations as provided for in part II.

27  The commission shall act upon the any such petition within 120

28  days after of its filing.

29         (b)  For purposes of this section, evidence of damage

30  occurring to the lines, plants, or facilities of a local

31  exchange telecommunications company that is subject to the

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 1  carrier-of-last-resort obligations, which damage is the result

 2  of a tropical system occurring after June 1, 2005, and named

 3  by the National Hurricane Center, constitutes a compelling

 4  showing of changed circumstances.

 5         1.  A company may file a petition to recover its

 6  intrastate costs and expenses relating to repairing,

 7  restoring, or replacing the lines, plants, or facilities

 8  damaged by a named tropical system.

 9         2.  The commission shall verify the intrastate costs

10  and expenses submitted by the company in support of its

11  petition.

12         3.  The company must show and the commission shall

13  determine whether the intrastate costs and expenses are

14  reasonable under the circumstances for the named tropical

15  system.

16         4.  A company having a storm-reserve fund may recover

17  tropical-system-related costs and expenses from its customers

18  only in excess of any amount available in the storm-reserve

19  fund.

20         5.  The commission may determine the amount of any

21  increase that the company may charge its customers, but the

22  charge per line item may not exceed 50 cents per month per

23  customer line for a period of not more than 12 months.

24         6.  The commission may order the company to add an

25  equal line-item charge per access line to the billing

26  statement of the company's retail basic local

27  telecommunications service customers, its retail nonbasic

28  telecommunications service customers, and, to the extent the

29  commission determines appropriate, its wholesale loop

30  unbundled network element customers. At the end of the

31  collection period, the commission shall verify that the

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 1  collected amount does not exceed the amount authorized by the

 2  order. If collections exceed the ordered amount, the

 3  commission shall order the company to refund the excess.

 4         7.  In order to qualify for filing a petition under

 5  this paragraph, a company with one million or more access

 6  lines, but fewer than three million access lines, must have

 7  tropical-system-related costs and expenses exceeding $1.5

 8  million, and a company with three million or more access lines

 9  must have tropical-system-related costs and expenses of $5

10  million or more. A company with fewer than one million access

11  lines is not required to meet a minimum damage threshold in

12  order to qualify to file a petition under this paragraph.

13         8.  A company may file only one petition for storm

14  recovery in any 12-month period for the previous storm season,

15  but the application may cover damages from more than one named

16  tropical system.

17  

18  This paragraph is not intended to adversely affect the

19  commission's consideration of any petition for an increase in

20  basic rates to recover costs related to storm damage which was

21  filed before the effective date of this act.

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

23  law.

24  

25  

26  

27  

28  

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                          CS/CS/SB 2068

 3                                 

 4  This committee substitute provides that evidence of damage
    occurring after June 1, 2005, as a result of a named tropical
 5  system, to the lines, plant, or facilities of a local exchange
    telecommunications company constitutes a change of
 6  circumstances thereby justifying a rate increase. The
    committee substitute sets forth the procedure a company must
 7  follow to petition the commission for a rate increase that
    includes meeting a threshold cost and expense amount. The
 8  commission must verify the costs and expenses relating to
    repairing, restoring, or replacing storm-related damage to the
 9  lines, plant, or facilities of a company and find such costs
    and expenses were reasonable. The commission is to determine
10  the amount of an increase, which is limited by the committee
    substitute, and order the company to add a separate line-item
11  increase for certain customers.

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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