HB 0817CS


1The Commerce Council recommends the following:
3     Council/Committee Substitute
4     Remove the entire bill and insert:
A bill to be entitled
6An act relating to telecommunications services; amending
7s. 364.025, F.S.; providing definitions; providing that a
8local exchange telecommunications company obligated to
9serve as the carrier of last resort is not obligated to
10provide basic local telecommunications service to
11customers in a multitenant business or residential
12property under certain circumstances; requiring the local
13exchange telecommunications company to notify the Public
14Service Commission when it is relieved of the obligation
15to provide service; providing for the local exchange
16telecommunications company to request a waiver of its
17carrier of last resort obligation from the commission;
18providing for carrier of last resort obligation to apply
19when specified conditions cease to exist; providing for
20effect of the act on the commission's jurisdiction;
21amending s. 364.051, F.S., relating to price regulation;
22allowing certain local exchange telecommunications
23companies to publish terms, conditions, and rates for
24nonbasic services in lieu of maintaining tariffs with the
25Public Service Commission; revising the notice requirement
26for price changes to nonbasic services; removing a
27provision that allows a company to elect that its basic
28services be subject to the same regulatory treatment as
29its nonbasic services; providing for a request from a
30company to the Public Service Commission to make certain
31reductions in its retail service quality requirements;
32revising criteria for granting a petition to change
33regulatory treatment of retail services; providing
34effective dates.
36Be It Enacted by the Legislature of the State of Florida:
38     Section 1.  Subsection (6) is added to section 364.025,
39Florida Statutes, to read:
40     364.025  Universal service.--
41     (6)(a)  For purposes of this subsection:
42     1.  "Owner or developer" means the owner or developer of a
43multitenant business or residential property, any condominium
44association or homeowners' association thereof, or any other
45person or entity having ownership in or control over the
47     2.  "Communications service provider" means any person or
48entity providing communications services, any person or entity
49allowing another person or entity to use its communications
50facilities to provide communications services, or any person or
51entity securing rights to select communications service
52providers for a property owner or developer.
53     3.  "Communications service" means voice service or voice
54replacement service through the use of any technology.
55     (b)  A local exchange telecommunications company obligated
56by this section to serve as the carrier of last resort is not
57obligated to provide basic local telecommunications service to
58any customers in a multitenant business or residential property,
59including, but not limited to, apartments, condominiums,
60subdivisions, office buildings, or office parks, when the owner
61or developer thereof:
62     1.  Permits only one communications service provider to
63install its communications service-related facilities or
64equipment, to the exclusion of the local exchange
65telecommunications company, during the construction phase of the
67     2.  Accepts or agrees to accept incentives or rewards from
68a communications service provider that are contingent upon the
69provision of any or all communications services by one or more
70communications service providers to the exclusion of the local
71exchange telecommunications company;
72     3.  Collects from the occupants or residents of the
73property charges for the provision of any communications
74service, provided by a communications service provider other
75than the local exchange telecommunications company, to the
76occupants or residents in any manner, including, but not limited
77to, collection through rent, fees, or dues; or
78     4.  Enters into an agreement with a communications service
79provider that grants incentives or rewards to such owner or
80developer contingent upon restriction or limitation of the local
81exchange telecommunications company's access to the property.
82     (c)  The local exchange telecommunications company relieved
83of its carrier of last resort obligation to provide basic local
84telecommunications service to the occupants or residents of a
85multitenant business or residential property pursuant to
86paragraph (b) shall notify the commission of that fact in a
87timely manner.
88     (d)  A local exchange telecommunications company that is
89not automatically relieved of its carrier-of-last-resort
90obligation pursuant to subparagraphs (b)1.-4. may seek a waiver
91of its carrier of last resort obligation from the commission for
92good cause shown based on the facts and circumstances of
93provision of service to the multitenant business or residential
94property. Upon petition for such relief, notice shall be given
95by the company at the same time to the relevant building owner
96or developer. The commission shall have 90 days to act on the
97petition. The commission shall implement this paragraph through
99     (e)  If all conditions described in subparagraphs (b)1.-4.
100cease to exist at a property, the owner or developer requests in
101writing that the local exchange telecommunications company make
102service available to customers at the property and confirms in
103writing that all conditions described in subparagraphs (b)1.-4.
104have ceased to exist at the property, and the owner or developer
105has not arranged and does not intend to arrange with another
106communications service provider to make communications service
107available to customers at the property, then the carrier of last
108resort obligation under this section shall again apply to the
109local exchange telecommunications company at the property;
110however, the local exchange telecommunications company may
111require that the owner or developer pay to the company in
112advance a reasonable fee to recover costs that exceed the costs
113that would have been incurred to construct or acquire facilities
114to serve customers at the property initially, and the company
115shall have a reasonable period of time following the request
116from the owner or developer to make arrangements for service
117availability. If any conditions described in subparagraphs
118(b)1.-4. again exist at the property, then paragraph (b) shall
119again apply.
120     (f)  Nothing in this subsection affects the limitations on
121commission jurisdiction imposed by s. 364.011 or s. 364.013.
122     Section 2.  Effective upon this act becoming a law,
123subsections (5), (6), and (7) of section 364.051, Florida
124Statutes, are amended to read:
125     364.051  Price regulation.--
126     (5)  NONBASIC SERVICES.--Price regulation of nonbasic
127services shall consist of the following:
128     (a)  Each company subject to this section shall, at its
129option, maintain tariffs with the commission or otherwise
130publicly publish containing the terms, conditions, and rates for
131each of its nonbasic services, and may set or change, on 1 day's
13215 days' notice, the rate for each of its nonbasic services,
133except that a price increase for any nonbasic service category
134shall not exceed 6 percent within a 12-month period until there
135is another provider providing local telecommunications service
136in an exchange area at which time the price for any nonbasic
137service category may be increased in an amount not to exceed 20
138percent within a 12-month period, and the rate shall be
139presumptively valid. However, for purposes of this subsection,
140the prices of:
141     1.  A voice-grade, flat-rate, multi-line business local
142exchange service, including multiple individual lines, centrex
143lines, private branch exchange trunks, and any associated
144hunting services, that provides dial tone and local usage
145necessary to place a call within a local exchange calling area;
147     2.  Telecommunications services provided under contract
148service arrangements to the SUNCOM Network, as defined in
149chapter 282,
151shall be capped at the rates in effect on July 1, 1995, and such
152rates shall not be increased prior to January 1, 2000; provided,
153however, that a petition to increase such rates may be filed
154pursuant to subsection (4) utilizing the standards set forth
155therein. There shall be a flat-rate pricing option for multi-
156line business local exchange service, and mandatory measured
157service for multi-line business local exchange service shall not
158be imposed. Nothing contained in this section shall prevent the
159local exchange telecommunications company from meeting offerings
160by any competitive provider of the same, or functionally
161equivalent, nonbasic services in a specific geographic market or
162to a specific customer by deaveraging the price of any nonbasic
163service, packaging nonbasic services together or with basic
164services, using volume discounts and term discounts, and
165offering individual contracts. However, the local exchange
166telecommunications company shall not engage in any
167anticompetitive act or practice, nor unreasonably discriminate
168among similarly situated customers.
169     (b)  The commission shall have continuing regulatory
170oversight of nonbasic services for purposes of ensuring
171resolution of service complaints, preventing cross-subsidization
172of nonbasic services with revenues from basic services, and
173ensuring that all providers are treated fairly in the
174telecommunications market. The cost standard for determining
175cross-subsidization is whether the total revenue from a nonbasic
176service is less than the total long-run incremental cost of the
177service. Total long-run incremental cost means service-specific
178volume and nonvolume-sensitive costs.
179     (c)  The price charged to a consumer for a nonbasic service
180shall cover the direct costs of providing the service and shall,
181to the extent a cost is not included in the direct cost, include
182as an imputed cost the price charged by the company to
183competitors for any monopoly component used by a competitor in
184the provision of its same or functionally equivalent service.
185     (6)  After a local exchange telecommunications company that
186has more than 1 million access lines in service has reduced its
187intrastate switched network access rates to parity, as defined
188in s. 364.164(5), the local exchange telecommunications
189company's basic local telecommunications service may, at the
190company's election, be subject to the same regulatory treatment
191as its nonbasic services. The company's retail service quality
192requirements that are not already equal to the service quality
193requirements imposed upon the competitive local exchange
194telecommunications companies shall at the company's request to
195the commission thereafter be no greater than those imposed upon
196competitive local exchange telecommunications companies unless
197the commission, within 120 days after the company's request
198election, determines otherwise. In such event, the commission
199may grant some reductions in service quality requirements in
200some or all of the company's local calling areas. The commission
201may not impose retail service quality requirements on
202competitive local exchange telecommunications companies greater
203than those existing on January 1, 2003.
204     (7)  After If a local exchange telecommunications company
205that has more than 1 million access lines in service has reduced
206its intrastate switched network access rates to parity, as
207defined in s. 364.164(5) elects, pursuant to subsection (6), to
208subject its retail basic local telecommunications services to
209the same regulatory treatment as its nonbasic services, the
210local exchange telecommunications company may petition the
211commission for regulatory treatment of its retail services at a
212level no greater than that imposed by the commission upon
213competitive local exchange telecommunications companies. The
214local exchange telecommunications company shall:
215     (a)  Show that granting the petition is in the public
217     (b)  Demonstrate that the competition faced by the company
218is sufficient and sustainable to allow such competition to
219supplant regulation by the commission; and
220     (c)(b)  Reduce its intrastate switched network access rates
221to its local reciprocal interconnection rate upon the grant of
222the petition.
224The commission shall act upon such a petition within 9 months
225after its filing with the commission. In making its
226determination to either grant or deny the petition, the
227commission shall determine the extent to which the level of
228competition faced by the local exchange telecommunications
229company permits and will continue to permit the company to have
230its retail services regulated no differently than the
231competitive local exchange telecommunications companies are then
232being regulated. The commission may not increase the level of
233regulation for competitive local exchange telecommunications
234companies to a level greater than that which exists on the date
235the local exchange telecommunications company files its
237     Section 3.  Except as otherwise expressly provided in this
238act, this act shall take effect July 1, 2006.

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