Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 142
                        Barcode 321202
                            CHAMBER ACTION
              Senate                               House
 1                                 .                    
 2                                 .                    
 3                                 .                    
 4  ______________________________________________________________
10  ______________________________________________________________
11  The Committee on Communications and Public Utilities
12  (Constantine and Aronberg) recommended the following
13  substitute for amendment (401526):
15         Senate Amendment (with title amendment) 
16         On page 1, Delete everything after the enacting clause
18  and insert:  
19         Section 1.  Subsections (5), (6) and (7) of section
20  364.051, Florida Statutes, is amended to read:
21         (5)  NONBASIC SERVICES.--Price regulation of nonbasic
22  services shall consist of the following:
23         (a)  Each company subject to this section shall, at its
24  option, maintain tariffs with the commission or otherwise
25  publicly publish containing the terms, conditions, and rates
26  for each of its nonbasic services, and may set or change, on 1
27  day's 15 days' notice, the rate for each of its nonbasic
28  services, except that a price increase for any nonbasic
29  service category shall not exceed 6 percent within a 12-month
30  period until there is another provider providing local
31  telecommunications service in an exchange area at which time
    10:12 AM   04/04/06                             s0142.cu22.00w

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 142 Barcode 321202 1 the price for any nonbasic service category may be increased 2 in an amount not to exceed 20 percent within a 12-month 3 period, and the rate shall be presumptively valid. However, 4 for purposes of this subsection, the prices of: 5 1. A voice-grade, flat-rate, multi-line business local 6 exchange service, including multiple individual lines, centrex 7 lines, private branch exchange trunks, and any associated 8 hunting services, that provides dial tone and local usage 9 necessary to place a call within a local exchange calling 10 area; and 11 2. Telecommunications services provided under contract 12 service arrangements to the SUNCOM Network, as defined in 13 chapter 282, shall be capped at the rates in effect on July 1, 14 1995, and such rates shall not be increased prior to January 15 1, 2000; provided, however, that a petition to increase such 16 rates may be filed pursuant to subsection (4) utilizing the 17 standards set forth therein. There shall be a flat-rate 18 pricing option for multi-line business local exchange service, 19 and mandatory measured service for multi-line business local 20 exchange service shall not be imposed. Nothing contained in 21 this section shall prevent the local exchange 22 telecommunications company from meeting offerings by any 23 competitive provider of the same, or functionally equivalent, 24 nonbasic services in a specific geographic market or to a 25 specific customer by deaveraging the price of any nonbasic 26 service, packaging nonbasic services together or with basic 27 services, using volume discounts and term discounts, and 28 offering individual contracts. However, the local exchange 29 telecommunications company shall not engage in any 30 anticompetitive act or practice, nor unreasonably discriminate 31 among similarly situated customers. 2 10:12 AM 04/04/06 s0142.cu22.00w
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 142 Barcode 321202 1 (b) The commission shall have continuing regulatory 2 oversight of nonbasic services for purposes of ensuring 3 resolution of service complaints, preventing 4 cross-subsidization of nonbasic services with revenues from 5 basic services, and ensuring that all providers are treated 6 fairly in the telecommunications market. The cost standard 7 for determining cross-subsidization is whether the total 8 revenue from a nonbasic service is less than the total 9 long-run incremental cost of the service. Total long-run 10 incremental cost means service-specific volume and 11 nonvolume-sensitive costs. 12 (c) The price charged to a consumer for a nonbasic 13 service shall cover the direct costs of providing the service 14 and shall, to the extent a cost is not included in the direct 15 cost, include as an imputed cost the price charged by the 16 company to competitors for any monopoly component used by a 17 competitor in the provision of its same or functionally 18 equivalent service. 19 (6) After a local exchange telecommunications company 20 that has more than 1 million access lines in service has 21 reduced its intrastate switched network access rates to 22 parity, as defined in s. 364.164(5), the local exchange 23 telecommunications company's basic local telecommunications 24 service may, at the company's election, be subject to the same 25 regulatory treatment as its nonbasic services. The company's 26 retail service quality requirements that are not already equal 27 to the service quality requirements imposed upon the 28 competitive local exchange telecommunications companies shall 29 at the company's request to the commission thereafter be no 30 greater than those imposed upon competitive local exchange 31 telecommunications companies unless the commission, within 120 3 10:12 AM 04/04/06 s0142.cu22.00w
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 142 Barcode 321202 1 days after the company's request election, determines 2 otherwise. In such event, the commission may grant some 3 reductions in service quality requirements in some or all of 4 the company's local calling areas. The commission may not 5 impose retail service quality requirements on competitive 6 local exchange telecommunications companies greater than those 7 existing on January 1, 2003. 8 (7) After If a local exchange telecommunications 9 company that has more than 1 million access lines in service 10 has reduced its intrastate switched network access rates to 11 parity, as defined in s. 364.164(5), elects, pursuant to 12 subsection (6), to subject its retail basic local 13 telecommunications services to the same regulatory treatment 14 as its nonbasic services, the local exchange 15 telecommunications company may petition the commission for 16 regulatory treatment of its retail services at a level no 17 greater than that imposed by the commission upon competitive 18 local exchange telecommunications companies. The local 19 exchange telecommunications company shall: 20 (a) Show that granting the petition is in the public 21 interest; 22 (b) Demonstrate that the competition faced by the 23 company is sufficient and sustainable to allow such 24 competition to supplant regulation by the commission. 25 (c) (b) Reduce its intrastate switched network access 26 rates to its local reciprocal interconnection rate upon the 27 grant of the petition. 28 29 The commission shall act upon such a petition within 9 months 30 after its filing with the commission. In making its 31 determination to either grant or deny the petition, the 4 10:12 AM 04/04/06 s0142.cu22.00w
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 142 Barcode 321202 1 commission shall determine the extent to which the level of 2 competition faced by the local exchange telecommunications 3 company permits and will continue to permit the company to 4 have its retail services regulated no differently than the 5 competitive local exchange telecommunications companies are 6 then being regulated. The commission may not increase the 7 level of regulation for competitive local exchange 8 telecommunications companies to a level greater than that 9 which exists on the date the local exchange telecommunications 10 company files its petition. 11 Section 2. This act shall take effect upon becoming a 12 law. 13 14 15 ================ T I T L E A M E N D M E N T =============== 16 And the title is amended as follows: 17 On page 1, Delete everything before the enacting clause 18 19 and insert: 20 A bill to be entitled 21 An act relating to telecommunications, amending s. 22 364.051, F.S., relating to price regulation, allowing 23 companyies to publicly publish price lists for nonbasic 24 services, allowing 1 day's notice for price changes to 25 nonbasic services; deleting the company's ability to elect 26 that its basic services be treated as nonbasic services; 27 requires a company to request to the commission to lessen its 28 service quality regulation; provides criteria for granting a 29 petition to change regulatory treatment of retail services; 30 provides an effective date. 31 5 10:12 AM 04/04/06 s0142.cu22.00w