HB 1377

1	A bill to be entitled
2	An act relating to telecommunications companies; repealing
3	ss. 364.03, 364.035, 364.037, 364.05, 364.055, 364.14,
4	364.17, and 364.18, F.S., relating to rates, tolls,
5	contracts, charges, rules, regulations, performance of
6	service, and maintenance of telecommunications facilities;
7	fixing rates by the Public Service Commission;
8	consideration of directory advertising revenues when
9	establishing rates; changing rates, tolls, rentals,
10	contracts, or charges; procedures for interim rates;
11	commission to compel by order or rule the adjustment of
12	rates, charges, tolls, rules, or regulations or changes to
13	practices or service or the installation of equipment or
14	facilities; forms prescribed by the commission; and
15	inspection by the commission of accounts and records;
16	amending s. 364.051, F.S.; deleting a schedule for
17	implementation of price regulation; amending ss. 364.025,
18	364.052, 364.063, 364.337, 364.385, and 364.507, F.S.;
19	conforming provisions to changes made by the act;
20	providing an effective date.
21
22	Be It Enacted by the Legislature of the State of Florida:
23
24	Section 1.  Sections 364.03, 364.035, 364.037, 364.05,
25	364.055, 364.14, 364.17, and 364.18, Florida Statutes, are
26	repealed.
27	Section 2.  Subsection (2) of section 364.025, Florida
28	Statutes, is amended to read:
29	364.025  Universal service.-
30	(2)  The Legislature finds that each telecommunications
31	company should contribute its fair share to the support of the
32	universal service objectives and carrier-of-last-resort
33	obligations. For a transitional period not to exceed January 1,
34	2009, the interim mechanism for maintaining universal service
35	objectives and funding carrier-of-last-resort obligations shall
36	be established by the commission, pending the implementation of
37	a permanent mechanism. The interim mechanism shall be applied in
38	a manner that ensures that each competitive local exchange
39	telecommunications company contributes its fair share to the
40	support of universal service and carrier-of-last-resort
41	obligations. The interim mechanism applied to each competitive
42	local exchange telecommunications company shall reflect a fair
43	share of the local exchange telecommunications company's
44	recovery of investments made in fulfilling its carrier-of-last-
45	resort obligations, and the maintenance of universal service
46	objectives. The commission shall ensure that the interim
47	mechanism does not impede the development of residential
48	consumer choice or create an unreasonable barrier to
49	competition. In reaching its determination, the commission shall
50	not inquire into or consider any factor that is inconsistent
51	with s. 364.051(1)(c). The costs and expenses of any government
52	program or project required in part II of this chapter shall not
53	be recovered under this section.
54	Section 3.  Subsection (1) of section 364.051, Florida
55	Statutes, is amended to read:
56	364.051  Price regulation.-
57	(1)  APPLICATION TO LOCAL EXCHANGE TELECOMMUNICATIONS
58	COMPANIES SCHEDULE.-Notwithstanding any other provisions of this
59	chapter, all the following local exchange telecommunications
60	companies are shall become subject to the price regulation
61	described in this section. on the following dates:
62	(a)  For a local exchange telecommunications company with
63	100,000 or more access lines in service as of July 1, 1995, such
64	company may file with the commission a notice of election to be
65	under price regulation effective January 1, 1996, or when a
66	competitive local exchange telecommunications company is
67	certificated to provide local exchange telecommunications
68	services in its service territory, whichever is later.
69	(b)  Effective on the date of filing its election with the
70	commission, but no sooner than January 1, 1996, any local
71	exchange telecommunications company with fewer than 100,000
72	access lines in service on July 1, 1995, that elects pursuant to
73	s. 364.052 to become subject to this section.
74	(c)  Each company subject to this section is exempt from
75	rate base, rate of return regulation, and the requirements of s.
76	ss. 364.03, 364.035, 364.037, 364.05, 364.055, 364.14, 364.17,
77	364.18, and 364.19.
78	Section 4.  Subsection (2) of section 364.052, Florida
79	Statutes, is amended to read:
80	364.052  Regulatory methods for small local exchange
81	telecommunications companies.-
82	(2)  A small local exchange telecommunications company
83	shall remain under rate base, rate of return regulation until
84	the company elects to become subject to s. 364.051, or January
85	1, 2001, whichever occurs first. A company subject to this
86	section, electing to be regulated pursuant to s. 364.051, will
87	have any overearnings attributable to a period prior to the date
88	on which the company makes the election subject to refund or
89	other disposition by the commission. Small local exchange
90	telecommunications companies not electing the price regulation
91	provided for under s. 364.051 shall also be regulated pursuant
92	to ss. 364.03, 364.035(1) and (2), 364.05, and 364.055 and other
93	provisions necessary for rate base, rate of return regulation.
94	If a small local exchange telecommunications company has not
95	elected to be regulated under s. 364.051, by January 1, 2001,
96	the company shall remain under rate base, rate of return
97	regulation until such time as a certificated competitive local
98	exchange company provides basic local telecommunications service
99	in the company's territory. At such time, the small local
100	exchange telecommunications company shall be subject to s.
101	364.051.
102	(a)  The commission shall establish, by rule, ranges of
103	basic factors for lives and salvage values to be used in
104	developing depreciation rates for companies subject to this
105	section. Companies shall have the option of using basic factors
106	within the established ranges or of filing depreciation studies.
107	(b)  The commission shall adopt, by rule, streamlined
108	procedures for regulating companies subject to this section.
109	These procedures shall minimize the burdens of regulation with
110	regard to audits, investigations, service standards, cost
111	studies, reports, and other matters, and the commission shall
112	establish, by rule, only those procedures that are cost-
113	justified and are in the public interest so that universal
114	service may be promoted. Upon petition filed in this rulemaking
115	proceeding, the commission shall review and may approve any
116	regulations unique to the specific circumstances of a company
117	subject to this section.
118	Section 5.  Section 364.063, Florida Statutes, is amended
119	to read:
120	364.063  Rate adjustment orders.-Any order issued by the
121	Florida Public Service Commission adjusting general increases or
122	reductions of the rates of a telecommunications company shall be
123	reduced to writing, including any dissenting or concurring
124	opinions, within 20 days after the official vote of the
125	commission. Within such 20-day period, the commission shall also
126	mail a copy of the order to the clerk of the circuit court of
127	each county in which customers are served who are affected by
128	the rate adjustment, which copy shall be kept on file and made
129	available to the public. The commission shall notify all parties
130	of record in the proceeding of the date of such mailing. Such an
131	order shall not be considered rendered for purposes of appeal,
132	rehearing, or judicial review until the order is signed and
133	dated by the commission's designee. This provision shall not
134	delay the effective date of the order. Such an order shall be
135	considered rendered on the date of the official vote for the
136	purposes of s. 364.05(5).
137	Section 6.  Subsections (1), (2), and (4) of section
138	364.337, Florida Statutes, are amended to read:
139	364.337  Competitive local exchange telecommunications
140	companies; intrastate interexchange telecommunications services;
141	certification.-
142	(1)  Upon this act becoming a law, a party may file an
143	application for a certificate as a competitive local exchange
144	telecommunications company before January 1, 1996, and the
145	commission shall conduct its review of the application and take
146	all actions necessary to process the application. However, an
147	application shall become effective no sooner than January 1,
148	1996. The commission shall grant a certificate of authority to
149	provide competitive local exchange service upon a showing that
150	the applicant has sufficient technical, financial, and
151	managerial capability to provide such service in the geographic
152	area proposed to be served. A competitive local exchange
153	telecommunications company may not offer basic local
154	telecommunications services within the territory served by a
155	company subject to s. 364.052 prior to January 1, 2001, unless
156	the small local exchange telecommunications company is elects to
157	be regulated under s. 364.051 or provides cable television
158	programming services directly or as video dial tone applications
159	authorized under 47 U.S.C. s. 214, except as provided for in
160	compliance with part II. It is the intent of the Legislature
161	that the commission act expeditiously to grant certificates of
162	authority under this section and that the grant of certificates
163	not be affected by the application of any criteria other than
164	that specifically enumerated in this subsection.
165	(2)  Rules adopted by the commission governing the
166	provision of competitive local exchange telecommunications
167	service shall be consistent with s. 364.01. The basic local
168	telecommunications service provided by a competitive local
169	exchange telecommunications company must include access to
170	operator services, "911" services, and relay services for the
171	hearing impaired. A competitive local exchange
172	telecommunications company's "911" service shall be provided at
173	a level equivalent to that provided by the local exchange
174	telecommunications company serving the same area. There shall be
175	a flat-rate pricing option for basic local telecommunications
176	services, and mandatory measured service for basic local
177	telecommunications services shall not be imposed. A certificated
178	competitive local exchange telecommunications company may
179	petition the commission for a waiver of some or all of the
180	requirements of this chapter, except ss. 364.16, 364.336, and
181	subsections (1) and (5). The commission may grant such petition
182	if determined to be in the public interest. Competitive local
183	exchange telecommunications companies are not subject to the
184	requirements of ss. 364.03, 364.035, 364.037, 364.05, 364.055,
185	364.14, 364.17, 364.18, 364.33, and 364.3381.
186	(4)  Rules adopted by the commission governing the
187	provision of intrastate interexchange telecommunications service
188	must be consistent with s. 364.01. A certificated intrastate
189	interexchange telecommunications company may petition the
190	commission for a waiver for some or all of the requirements of
191	this chapter, except s. 364.16, s. 364.335(3), or subsection
192	(5). The commission may grant such petition if determined to be
193	in the public interest. Intrastate interexchange
194	telecommunications companies are not subject to the requirements
195	of s. ss. 364.03, 364.035, 364.037, 364.05, 364.055, 364.14,
196	364.17, 364.18, and 364.3381.
197	Section 7.  Subsection (2) of section 364.385, Florida
198	Statutes, is amended to read:
199	364.385  Saving clauses.-
200	(2)  All applications for extended area service, routes, or
201	extended calling service pending before the commission on March
202	1, 1995, shall be governed by the law as it existed prior to
203	July 1, 1995. Upon the approval of the application, the extended
204	area service, routes, or extended calling service shall be
205	considered basic services and shall be regulated as provided in
206	s. 364.051 for a company that has elected price regulation.
207	Proceedings including judicial review pending on July 1, 1995,
208	shall be governed by the law as it existed prior to the date on
209	which this section becomes a law. No new proceedings governed by
210	the law as it existed prior to July 1, 1995, shall be initiated
211	after July 1, 1995. Any administrative adjudicatory proceeding
212	which has not progressed to the stage of a hearing by July 1,
213	1995, may, with the consent of all parties and the commission,
214	be conducted in accordance with the law as it existed prior to
215	January 1, 1996.
216	Section 8.  Subsection (2) of section 364.507, Florida
217	Statutes, is amended to read:
218	364.507  Legislative intent.-
219	(2)  It is the intent of the Legislature that all local
220	exchange telecommunications companies, including those with less
221	than 100,000 access lines in service which do not elect to be
222	regulated under price regulation pursuant to s. 364.051, should
223	be required to provide advanced telecommunications services to
224	eligible facilities in the absence of a competitive bid to
225	provide such services pursuant to s. 364.510(3). This obligation
226	arises from the privileges granted such local exchange
227	telecommunications companies under part I of this chapter.
228	Section 9.  This act shall take effect July 1, 2010.

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