Senate Bill sb0142c1

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    Florida Senate - 2006                            CS for SB 142

    By the Committee on Communications and Public Utilities; and
    Senators Fasano and Argenziano




    579-2171-06

  1                      A bill to be entitled

  2         An act relating to telecommunications; amending

  3         s. 364.051, F.S., relating to price regulation;

  4         allowing a telecommunications company to

  5         publicly publish price lists for nonbasic

  6         services; allowing 1 day's notice for price

  7         changes to nonbasic services; deleting a

  8         company's option to elect that its basic

  9         services be treated as nonbasic services;

10         requiring a company to request that the Public

11         Service Commission lessen its service quality

12         regulation; providing criteria for granting a

13         petition to change regulatory treatment of

14         retail services; providing an effective date.

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

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18         Section 1.  Subsections (5), (6), and (7) of section

19  364.051, Florida Statutes, are amended to read:

20         364.051  Price regulation.--

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

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    Florida Senate - 2006                            CS for SB 142
    579-2171-06




 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,

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15  shall be capped at the rates in effect on July 1, 1995, and

16  such rates shall not be increased prior to January 1, 2000;

17  provided, however, that a petition to increase such rates may

18  be filed pursuant to subsection (4) utilizing the standards

19  set forth therein. There shall be a flat-rate pricing option

20  for multi-line business local exchange service, and mandatory

21  measured service for multi-line business local exchange

22  service shall not be imposed. Nothing contained in this

23  section shall prevent the local exchange telecommunications

24  company from meeting offerings by any competitive provider of

25  the same, or functionally equivalent, nonbasic services in a

26  specific geographic market or to a specific customer by

27  deaveraging the price of any nonbasic service, packaging

28  nonbasic services together or with basic services, using

29  volume discounts and term discounts, and offering individual

30  contracts. However, the local exchange telecommunications

31  company shall not engage in any anticompetitive act or

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    Florida Senate - 2006                            CS for SB 142
    579-2171-06




 1  practice, nor unreasonably discriminate among similarly

 2  situated customers.

 3         (b)  The commission shall have continuing regulatory

 4  oversight of nonbasic services for purposes of ensuring

 5  resolution of service complaints, preventing

 6  cross-subsidization of nonbasic services with revenues from

 7  basic services, and ensuring that all providers are treated

 8  fairly in the telecommunications market.  The cost standard

 9  for determining cross-subsidization is whether the total

10  revenue from a nonbasic service is less than the total

11  long-run incremental cost of the service.  Total long-run

12  incremental cost means service-specific volume and

13  nonvolume-sensitive costs.

14         (c)  The price charged to a consumer for a nonbasic

15  service shall cover the direct costs of providing the service

16  and shall, to the extent a cost is not included in the direct

17  cost, include as an imputed cost the price charged by the

18  company to competitors for any monopoly component used by a

19  competitor in the provision of its same or functionally

20  equivalent service.

21         (6)  After a local exchange telecommunications company

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

23  reduced its intrastate switched network access rates to

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

25  telecommunications company's basic local telecommunications

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

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

28  retail service quality requirements that are not already equal

29  to the service quality requirements imposed upon the

30  competitive local exchange telecommunications companies shall

31  at the company's request to the commission thereafter be no

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    Florida Senate - 2006                            CS for SB 142
    579-2171-06




 1  greater than those imposed upon competitive local exchange

 2  telecommunications companies unless the commission, within 120

 3  days after the company's request election, determines

 4  otherwise. In such event, the commission may grant some

 5  reductions in service quality requirements in some or all of

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

 7  impose retail service quality requirements on competitive

 8  local exchange telecommunications companies greater than those

 9  existing on January 1, 2003.

10         (7)  After If a local exchange telecommunications

11  company that has more than 1 million access lines in service

12  has reduced its intrastate switched network access rates to

13  parity, as defined in s. 364.164(5) elects, pursuant to

14  subsection (6), to subject its retail basic local

15  telecommunications services to the same regulatory treatment

16  as its nonbasic services, the local exchange

17  telecommunications company may petition the commission for

18  regulatory treatment of its retail services at a level no

19  greater than that imposed by the commission upon competitive

20  local exchange telecommunications companies. The local

21  exchange telecommunications company shall:

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

23  interest;

24         (b)  Demonstrate that the competition faced by the

25  company is sufficient and sustainable to allow such

26  competition to supplant regulation by the commission; and

27         (c)(b)  Reduce its intrastate switched network access

28  rates to its local reciprocal interconnection rate upon the

29  grant of the petition.

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    Florida Senate - 2006                            CS for SB 142
    579-2171-06




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

 2  after its filing with the commission. In making its

 3  determination to either grant or deny the petition, the

 4  commission shall determine the extent to which the level of

 5  competition faced by the local exchange telecommunications

 6  company permits and will continue to permit the company to

 7  have its retail services regulated no differently than the

 8  competitive local exchange telecommunications companies are

 9  then being regulated. The commission may not increase the

10  level of regulation for competitive local exchange

11  telecommunications companies to a level greater than that

12  which exists on the date the local exchange telecommunications

13  company files its petition.

14         Section 2.  This act shall take effect upon becoming a

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    Florida Senate - 2006                            CS for SB 142
    579-2171-06




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                              SB 142

 3                                 

 4  The committee substitute:

 5  -Deletes the provision that allows an incumbent
    telecommunications company to elect to have its basic services
 6  treated as nonbasic.

 7  -Requires a company to request from the commission to have its
    service quality requirements treated the same as competitive
 8  local exchange companies.

 9  -Allows the company to petition the commission after parity is
    reached, for lesser regulatory treatment of its retail
10  services. In its petition, it must show and the commission
    must find that:
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    -the change would be in the public interest.
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    -the level of competition has been demonstrated to be
13       sufficient and sustainable to allow the commission's
         regulation to be supplanted by competitive forces.
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    -The company has reduced its intrastate switched network
15       access rates to its local reciprocal interconnection rate
         upon grant of the petition.
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    -Allows the incumbent telecommunications companies to change
17  its prices for its nonbasic services on one day's notice and
    to publicly publish pricelists rather than file tariffs.
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