House Bill 4785

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    Florida House of Representatives - 1998                HB 4785

        By the Committee on Utilities & Communications and
    Representative Arnall





  1                      A bill to be entitled

  2         An act relating to telecommunications services;

  3         creating s. 364.026, F.S.; providing for an

  4         intrastate universal service support mechanism

  5         for certain purposes; providing duties and

  6         responsibilities of the Florida Public Service

  7         Commission; providing criteria for rates for

  8         high-cost support; providing for determinations

  9         of threshold rates; providing alternatives for

10         certain companies in establishing universal

11         support; providing for a third-party

12         administrator for certain purposes; specifying

13         criteria for the third-party administrator;

14         providing for commission oversight of the

15         third-party administrator for certain purposes;

16         providing authority for the third-party

17         administrator to make assessments, receive

18         payments, make and withhold disbursements, and

19         bring legal actions for certain purposes;

20         requiring the third-party administrator to

21         deposit certain moneys into certain accounts;

22         providing for compensating the third-party

23         administrator; providing for reducing

24         intrastate switched access charges under

25         certain circumstances; providing for reducing

26         certain long distance rates under certain

27         circumstances; requiring the commission to make

28         certain determinations relating to the

29         high-cost portion of the universal service

30         support mechanism; providing definitions;

31         providing legislative determinations; directing

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  1         the commission to make determinations relating

  2         to eliminating certain subsidies, realigning

  3         certain rates, and fair and reasonable basic

  4         local telecommunications service rates;

  5         providing criteria; requiring a report to the

  6         Legislature; requiring local exchange companies

  7         to provide certain information to the

  8         commission; requiring the Legislature to make

  9         certain determinations relating to certain

10         charge reductions; capping certain

11         telecommunications service rates for Lifeline

12         subscribers; requiring the provision of

13         discounted rates for services for certain

14         subscribers; amending s. 364.163, F.S.;

15         providing a cap for certain rates; requiring

16         reductions in certain rates; repealing s.

17         364.025, F.S., relating to universal service;

18         providing legislative findings; requiring the

19         commission to study the provision of

20         telecommunications service to multi-tenant

21         environments; requiring a report to the

22         Legislature; requiring the commission to

23         conduct workshops; requiring the commission to

24         consider promotion of a competitive

25         telecommunications market; amending ss. 166.231

26         and 203.01, F.S.; requiring the Public Service

27         Commission to publish certain rates for

28         commonly used services; amending s. 364.02,

29         F.S.; revising a definition; amending s.

30         364.336, F.S.; providing for deducting certain

31         amounts from gross operating revenues for

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  1         certain purposes; amending s. 364.337, F.S.;

  2         requiring provision of 911 service at certain

  3         levels; subjecting intrastate interexchange

  4         telecommunications companies to certain access

  5         to records provisions; amending s. 364.339,

  6         F.S.; including residential tenants in shared

  7         tenant service provisions; requiring local

  8         exchange telecommunications companies to

  9         implement consumer information programs;

10         providing requirements; providing duties of the

11         Public Service Commission; creating part III of

12         chapter 364, F.S.; providing a short title;

13         providing definitions; requiring the commission

14         to adopt rules to prevent unauthorized changing

15         of certain services; providing requirements;

16         providing requirements for billing practices;

17         repealing s. 364.337(7), F.S., relating to

18         certain deductions from gross operating

19         revenues; amending s. 364.051, F.S.; delaying

20         the date for removing the cap on certain rates;

21         amending s. 215.311, F.S.; excluding certain

22         telecommunications payments from a requirement

23         for deposit into the State Treasury; amending

24         s. 364.161, F.S.; requiring local exchange

25         telecommunications companies to timely provide

26         certain services; requiring the commission to

27         maintain a file of certain complaints;

28         requiring inclusion of certain information in

29         the commission's annual report to the

30         Legislature on competition; providing effective

31         dates.

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

  2

  3         Section 1.  Section 364.026, Florida Statutes, is

  4  created to read:

  5         364.026  Universal service support.--

  6         (1)  The Legislature acknowledges the requirements of

  7  the Telecommunications Act of 1996 which mandate that any

  8  universal service support mechanism make explicit any existing

  9  implicit support and that any state universal service support

10  mechanism shall not be inconsistent with any universal service

11  support mechanism established by the Federal Communications

12  Commission in consultation with the federal and state joint

13  board.  The Legislature directs the Public Service Commission

14  to establish, and make effective by July 1, 1999, an

15  intrastate universal service support mechanism which ensures

16  the continued availability of affordable basic local

17  telecommunications service for basic local telecommunications

18  service customers who reside in high-cost areas or who are

19  low-income customers. Such mechanism shall be established and

20  administered in the following manner:

21         (a)  The commission shall, upon notice and after an

22  opportunity for hearing, determine the amount of support

23  necessary to provide affordable basic local telecommunications

24  service to customers in high-cost areas or who are low-income

25  customers, and establish that amount as the explicit universal

26  service support requirement.  In no event shall the commission

27  consider the earnings or rate of return of a local exchange

28  company or its affiliated companies, including its parent

29  company, in determining the amount of universal service

30  support or its disbursement.

31

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  1         (b)  The commission shall ascertain which areas are

  2  high-cost by determining the total forward-looking cost, based

  3  upon the most recent, commercially available technology and

  4  equipment and generally accepted design and placement

  5  principles, of providing basic local telecommunications

  6  service on a basis no greater than a wire center basis using a

  7  cost proxy model to be selected by the commission upon notice

  8  and after an opportunity for hearing.  The commission shall

  9  select a cost proxy model that:

10         1.  Identifies all costs to provide basic local

11  telecommunications service on a wire center basis, or a

12  geographic area smaller than a wire center if there are

13  significant cost differences within the wire center.

14         2.  Includes a reasonable share of forward-looking

15  joint and common costs.

16         3.  Uses investments, expenses, and capital costs

17  reflective of the most recent experiences.

18         4.  Meets generally accepted standards for documenting

19  and reviewing model logic, including underlying data,

20  formulae, computations, and software.

21         5.  Assures the sources of cost data input are

22  reasonable, open, and verifiable.

23         6.  Meets reasonableness tests to ensure that model

24  outputs are representative of costs that can be reasonably

25  expected in the construction of a local network and that the

26  modeled network is capable of providing telecommunications

27  services that meet generally accepted service quality

28  standards.

29

30  The available high-cost support for a given geographical area

31  shall be the difference between the cost determined in

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  1  accordance with this paragraph or paragraph (c) and the

  2  threshold rate.  The threshold rate for residental basic local

  3  telecommunications service shall be equal to a rate which, on

  4  a monthly basis, is one-twelfth of 1 percent of the annual

  5  median household income for this state, as reported in the

  6  most recent edition of the Florida Statistical Abstract as

  7  available on January 1, 1998, published by the Bureau of

  8  Economic and Business Research of the University of Florida.

  9  For companies with less than 100,000 access lines in service

10  on July 1, 1995, the threshold rate for residential basic

11  local telecommunications service shall be no greater than the

12  tariffed rate.  The threshold rate for Lifeline customers

13  shall equal the flat rate residential basic local

14  telecommunications service rate in effect on January 1, 1998.

15  The minimum threshold rate for single-line business basic

16  local telecommunications service shall be the higher of the

17  rate in effect on January 1, 1999, or the threshold rate for

18  residential basic local telecommunications service.  In

19  determining the intrastate high-cost support amount, the

20  commission shall deduct from the total high-cost support

21  amount any explicit universal service support received from

22  the federal jurisdiction related to high-cost support for

23  basic local telecommunications service.

24         (c)  In determining the high-cost amount pursuant to

25  paragraph (b), small local exchange telecommunications

26  companies, which serve less than 100,000 access lines, shall

27  not be required to use the proxy model determined by the

28  commission pursuant to paragraph (b) until a mechanism is

29  implemented by the Federal Government for small companies but

30  no sooner than January 1, 2001.  During that time period, the

31  calculation of a small local exchange telecommunications

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  1  company's universal service high-cost support pursuant to

  2  paragraph (b) shall be based on its election of one of the

  3  following options:

  4         1.  Adopt a proxy model; or

  5         2.  Calculate such costs by including all embedded

  6  investments and expenses incurred by the local exchange

  7  company in the provision of universal service, identifying

  8  high-cost areas within the local exchange area the company

  9  serves, and performing a fully distributed allocation of

10  embedded costs.  Such calculations may be made using fully

11  distributed costs consistent with 47 C.F.R., sections 32, 36,

12  and 64.  The high-cost area shall be no smaller than a single

13  exchange, wire center, or census block group, chosen at the

14  option of the eligible local exchange provider.

15         (d)  The commission shall also ascertain the amount of

16  support necessary to provide residential basic local

17  telecommunications service to low-income customers and include

18  that amount in the universal service support program.  Only

19  those customers who qualify for Lifeline service shall be

20  considered low-income customers.  In order to provide support

21  for low-income customers, the universal service support amount

22  shall be the maximum intrastate matching funds for low-income

23  customers required to enable Lifeline customers to qualify for

24  the maximum matching federal support as prescribed by the

25  Federal Communications Commission.

26         (e)  The assessment, receipt, and disbursement

27  activities required by the universal service support program

28  established pursuant to this section shall be administered by

29  an independent third-party administrator to be selected by the

30  commission in accordance with applicable laws and rules.  The

31

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  1  independent third-party administrator selected by the

  2  commission shall:

  3         1.  Have sufficient experience and personnel to operate

  4  the program in accordance with the provisions of this section.

  5         2.  Have adequate accounting and computer systems and

  6  programs in place by July 1, 1999, to handle the assessment

  7  and disbursement activities required by this section.

  8         3.  Have the capability to make the assessments and

  9  disbursements required by this section in a timely manner.

10         4.  Have the capability to generate timely, accurate,

11  monthly reports reflecting the assessment and disbursement

12  activities required by this section.

13         5.  Be subject to audit for any purpose by the

14  commission or any entity assessed by the third-party

15  administrator or receiving disbursements from the program,

16  including whether the third-party administrator is adequately

17  discharging its duties.

18         6.  Not be a trade association, except that the

19  independently functioning not-for-profit subsidiary of the

20  National Exchange Carrier Association, known as the Universal

21  Service Administrative Company, may be selected as temporary

22  administrator.

23         (f)  The commission shall, by rule, establish adequate

24  procedures for overseeing the third-party administrator to

25  assure that:

26         1.  The operation of the universal service support

27  program is competitively neutral.

28         2.  The records created by the third-party

29  administrator are available for public inspection and are

30  subject to verification that the program is covering all of

31  the costs as described in paragraphs (a), (b), (c), and (d).

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  1         3.  The program is not recovering any of the costs and

  2  expenses of any government program or project required by part

  3  II.

  4         4.  The program is otherwise being operated in the

  5  public interest and in accordance with the purposes of this

  6  act.

  7

  8  The third-party administrator shall have such authority as is

  9  necessary to operate the program in order to accomplish the

10  purposes of this act, including, but not limited to, the

11  authority to make assessments, receive payments, make

12  disbursements, withhold disbursements from any entity that is

13  delinquent in paying its assessment made in accordance with

14  paragraph (g), and to bring legal actions in its own name to

15  collect such delinquent assessments.  The third-party

16  administrator shall place all moneys paid by the

17  telecommunications carriers in a separate interest-bearing

18  account of a qualified public depository as defined at s.

19  280.02(16).  The third-party administrator shall be

20  compensated from the earnings from such account, but if such

21  earnings are insufficient, compensation shall be treated as a

22  cost of the program to be recovered from the program.

23         (g)  The intrastate universal service support

24  requirement established in accordance with this section shall

25  be assessed on a monthly basis to each telecommunications

26  carrier providing retail intrastate telecommunications

27  services.  The monthly amount assessed by the third-party

28  administrator shall be based upon each provider's relative

29  share of all intrastate retail end user telecommunications

30  revenues generated by or billed to end users in the state.

31  The monthly assessment shall be based on 6 months of data and

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  1  shall be adjusted semi-annually.  If a telecommunications

  2  provider's annual contribution would be less than $10,000, the

  3  provider shall not be required to contribute to the program

  4  for that year.  For wireless providers, intrastate retail end

  5  user telecommunications revenues shall include only revenues

  6  from the monthly basic service charge and from intrastate

  7  calls originated on the wireless provider's network.

  8         (h)  The amounts collected by the third-party

  9  administrator shall be disbursed to local exchange

10  telecommunications companies, or other eligible

11  telecommunications carriers, providing basic local

12  telecommunications service based upon criteria to be

13  established by the commission by rule.  The criteria

14  established by the commission shall provide the third-party

15  administrator with sufficient guidance to make certain that

16  any disbursements made pursuant to this section are portable

17  only to eligible telecommunications carriers, are made on a

18  monthly basis, are made in a competitively neutral manner, and

19  are otherwise consistent with the purposes of this act.  In no

20  event shall such criteria include a means or an earnings or a

21  rate of return test, except any local exchange

22  telecommunications company with more than 3 million access

23  lines in service on July 1, 1995, may instead reduce the

24  prices of its other services currently providing implicit

25  universal service support.

26         (i)  Any local exchange telecommunications company

27  receiving universal service support from the program shall

28  reduce the prices of its intrastate switched access services

29  by the net amount of support received from the universal

30  service support program.

31

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  1         (j)  The local exchange telecommunications company

  2  shall remain the carrier of last resort for its service area

  3  until another telecommunications carrier qualifies as an

  4  eligible telecommunications carrier for that service area.

  5         (2)  Any interexchange telecommunications company whose

  6  intrastate switched access expenses are reduced as a result of

  7  the access charge decreases made by a local exchange

  8  telecommunications company in accordance with subsection (1)

  9  shall, as soon as practicable, decrease its intrastate long

10  distance rates by the amount necessary to return the benefits

11  of such reduction to its customers, but shall not reduce per

12  minute intraLATA toll rates by a percentage greater than the

13  per minute intrastate switched access rate reductions required

14  by this act.  The amount of the long distance reduction shall

15  be net of the interexchange telecommunications company's

16  universal service support assessment required by this section.

17  Provided residential and business customers benefit from the

18  rate decreases, the specific rates to be decreased shall be

19  within the discretion of the interexchange telecommunications

20  carrier.

21         (3)  The commission shall, by January 1, 2003,

22  determine the need for and size of the high-cost portion of

23  the universal service support mechanism for the period after

24  July 1, 2003, for any eligible carrier or for any local

25  exchange telecommunications company with more than 100,000

26  access lines in service as of July 1, 1995.  The low-income

27  portion of such mechanism shall be permanent.  In making its

28  determination, the commission shall review the cost of

29  providing service in high-cost areas and the appropriate

30  threshold rate.  In no event shall the size of the high-cost

31

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  1  support after July 1, 2003, be any greater than the size of

  2  the support for the period prior to July 1, 2003.

  3         (4)  For purposes of this section:

  4         (a)  "Universal service" includes single-party voice

  5  grade basic local telecommunications service which provides

  6  access to the public switched network and dual tone

  7  multi-frequency signaling or its functional equivalent,

  8  together with access to emergency, operator, interexchange,

  9  directory assistance, and, where required, toll blocking

10  services.

11         (b)  "Telecommunications carrier" means any provider of

12  telecommunications services, except such term does not include

13  a cable television company providing cable service as defined

14  in 47 U.S.C. s. 522 and Internet service providers.  A

15  telecommunications carrier shall be treated as a common

16  carrier only to the extent that it is engaged in providing

17  telecommunications services.  The term "telecommunications

18  carrier" includes commercial mobile radio service providers

19  and interexchange carriers.

20         (c)  "Eligible telecommunications carrier" means a

21  carrier that:

22         1.  Meets the requirements of s. 214(e) of the

23  Communications Act of 1934, as amended by the

24  Telecommunications Act of 1996 (47 U.S.C. 214).  A carrier may

25  meet the eligibility requirements of s. 214(e) of such act

26  regardless of the technology used by the carrier.

27         2.  Offers primary residential basic local

28  telecommunications service at fair and reasonable rates to all

29  consumers throughout the service area for which eligible

30  telecommunications carrier designation is requested, except

31  commercial mobile radio service providers operating under

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  1  licenses from the Federal Communications Commission are exempt

  2  from the requirements of this subparagraph.

  3         (d)  "Telecommunications service" is defined as

  4  provided in the Communications Act of 1934, as amended by the

  5  Telecommunications Act of 1996.

  6         Section 2.  Public Service Commission review.--

  7         (1)  The Legislature has determined that, in this

  8  state, residential basic local telecommunications service

  9  rates may be currently priced below cost and may be a barrier

10  to competition in that market and that residential basic local

11  telecommunications service rates may be subsidized

12  significantly by intrastate switched access charges.

13  Therefore, the Public Service Commission is directed to

14  determine, after notice and an opportunity for hearing, the

15  extent to which these subsidies can be eliminated and the

16  extent to which the rates for these services may be realigned.

17         (2)(a)  Notwithstanding any price caps specified in s.

18  364.051, Florida Statutes, the commission shall, by February

19  15, 1999, determine, and report to the Legislature, the fair

20  and reasonable Florida residential basic local

21  telecommunications service rate considering affordability,

22  comparable residential basic local telecommunications service

23  rates in other states, and the cost of providing residential

24  basic local exchange telecommunication services in this state.

25  In determining the fair and reasonable rate, the commission

26  shall hold at least one public hearing in the service

27  territory for each local exchange telecommunications company,

28  as determined by the chairperson to be needed in order to

29  elicit public testimony about such rates.

30         (b)  The local exchange companies shall provide to the

31  commission by August 1, 1998, cost data and analysis as

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  1  prescribed by the commission that supports the cost of

  2  providing residential basic local exchange telecommunications

  3  service in their service area.  The commission and all

  4  intervenors shall have access to the records of each local

  5  exchange company and its affiliates for the purpose of

  6  verifying the submitted cost data and analysis.

  7         (3)  Considering the provisions of subsections (1) and

  8  (2), the 1999 Legislature shall determine the extent and

  9  timing of any possible switched access charge reductions in

10  addition to the reductions provided for in s. 364.163, Florida

11  Statutes.

12         Section 3.  Lifeline subscribers' residential basic

13  local telecommunications service rates shall be capped at the

14  Lifeline rate in effect on January 1, 1998.  Each local

15  exchange telecommunications company shall offer discounted

16  residential basic local telecommunications service at 70

17  percent of the residential local telecommunications service

18  rate for any Lifeline subscriber who no longer qualifies for

19  Lifeline.  A Lifeline subscriber who requests such service

20  shall receive the discounted price for a period of 1 year

21  after the date the subscriber ceases to be qualified for

22  Lifeline.  In no event shall this preclude the offering of any

23  other discounted services which comply with ss. 364.08,

24  364.09, and 364.10.

25         Section 4.  Subsections (1) and (6) of section 364.163,

26  Florida Statutes, are amended to read:

27         364.163  Network access services.--For purposes of this

28  section, "network access service" is defined as any service

29  provided by a local exchange telecommunications company to a

30  telecommunications company certificated under this chapter or

31  licensed by the Federal Communications Commission to access

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  1  the local exchange telecommunications network, excluding the

  2  local interconnection arrangements in s. 364.16 and the resale

  3  arrangements in s. 364.161. Each local exchange

  4  telecommunications company subject to s. 364.051 shall

  5  maintain tariffs with the commission containing the terms,

  6  conditions, and rates for each of its network access services.

  7         (1)  Effective January 1, 1999 1996, the rates for

  8  switched network access services of each company subject to

  9  this section shall be capped at the rates in effect on January

10  1, 1999 July 1, 1995, and shall remain capped until January 1,

11  2001 1999. Upon the date of filing its election with the

12  commission, the network access service rates of a company that

13  elects to become subject to this section shall be capped at

14  the rates in effect on that date and shall remain capped for 5

15  3 years.

16         (6)  Any local exchange telecommunications company with

17  more than 100,000, but fewer than 3 million, basic local

18  telecommunications service access lines in service on July 1,

19  1995 whose current intrastate switched access rates are higher

20  than its interstate switched access rates in effect on

21  December 31, 1994, shall reduce its intrastate switched access

22  rates by 5 percent on July, 1998, and by 10 percent on

23  annually beginning October 1, 1998 1996. Any further

24  reductions in intrastate switched access rates after October

25  1, 1998, shall be solely as determined by s. 364.026(2) or s.

26  364.053(3). Any such company shall be relieved of this

27  requirement if it reduces such rates by a greater percentage

28  by the relevant date or earlier, taking into account any

29  reduction made pursuant to Order No. PSC 94-0172-FOF-TL of the

30  Public Service Commission.  Upon reaching parity between

31  intrastate and 1994 interstate switched access rates, no

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  1  further reductions shall be required.  Any interexchange

  2  telecommunications company whose intrastate switched access

  3  rate is reduced as a result of the rate decreases made by a

  4  local exchange telecommunications company in accordance with

  5  by this subsection shall decrease its intrastate customer long

  6  distance rates by the amount necessary to return the benefits

  7  of such reduction to its customers but shall not reduce per

  8  minute intraLATA toll rates by a percentage greater than the

  9  per minute intrastate switched access rate reductions required

10  by this act.

11         Section 5.  Section 364.025, Florida Statutes, is

12  hereby repealed.

13         Section 6.  The Legislature has determined that access

14  to tenants by certificated telecommunications companies may be

15  an important component in the promotion of competition in the

16  delivery of telecommunications services in this state.

17  Therefore, the Florida Public Service Commission shall study

18  issues associated with telecommunications companies serving

19  customers in multi-tenant environments and shall report the

20  results of such study, including policy recommendations, to

21  the Legislature by January 15, 1999.  As part of this study,

22  the commission shall hold publicly noticed workshops and shall

23  consider the promotion of a competitive telecommunications

24  market, consistent with any applicable federal requirements,

25  landlord property rights, rights of tenants, and other

26  considerations developed through the workshop process and

27  commission research.

28         Section 7.  Paragraph (d) of subsection (9) of section

29  166.231, Florida Statutes, is amended to read:

30         166.231  Municipalities; public service tax.--

31

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  1         (9)  A municipality may levy a tax on the purchase of

  2  telecommunication services as defined in s. 203.012 as

  3  follows:

  4         (d)1.  If the sale of a taxable telecommunication

  5  service also involves the sale of an exempt cable television

  6  service, the tax shall be applied to the value of the taxable

  7  service when it is sold separately.

  8         2.  If the company does not offer this service

  9  separately, the consideration paid shall be separately

10  identified and stated with respect to the taxable and exempt

11  portions of the transaction as a condition of the exemption.

12         3.  The amounts identified as taxable in subparagraph

13  2. shall not be less than the statewide average tariff rates

14  set forth by the local exchange telecommunications companies

15  in the tariffs filed with the Public Service Commission on

16  January 1, 1995, and on January 1 of each year thereafter for

17  the equivalent services subject to this section.  The Public

18  Service Commission shall publish the statewide average tariff

19  rates for commonly used services annually, beginning on

20  January 1, 1996.

21         4.  If the total amount of municipal utility tax

22  collected by a municipality or charter county from

23  telecommunication services pursuant to this subsection for the

24  period of July 1, 1995, to June 30, 1996, is less than the

25  amount collected for the period July 1, 1994, to June 30,

26  1995, the municipality or charter county shall assess each

27  company that remits such tax a pro rata share of the

28  shortfall.  The shortfall shall be prorated based on the

29  amount of tax remitted by each company for the period July 1,

30  1995, to June 30, 1996, and the total amount of tax remitted

31  for the same period.  By September 1, 1996, the municipality

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  1  or charter county shall certify to each company the amount of

  2  additional tax owed and the tax shall be remitted to the

  3  municipality or charter county by October 1, 1996.  Provided,

  4  however, that this assessment may only be imposed if, in

  5  addition to the conditions above, a municipality or charter

  6  county has levied the applicable maximum tax rate allowed

  7  under this paragraph during the period July 1, 1995, and June

  8  30, 1996, and has not switched between the two options allowed

  9  under subparagraph 1. or subparagraph 2. during the period

10  July 1, 1995, and June 30, 1996.

11         Section 8.  Paragraph (c) of subsection (9) of section

12  203.01, Florida Statutes, is amended to read:

13         203.01  Tax on gross receipts for utility services.--

14         (9)

15         (c)  The amounts identified as taxable in paragraph (b)

16  shall not be less than the statewide average tariff rates set

17  forth by the local exchange telecommunications companies in

18  the tariffs filed with the Public Service Commission on

19  January 1, 1995, and on January 1 of each year thereafter for

20  the equivalent services subject to the provisions of this

21  section.  The Public Service Commission shall publish the

22  statewide average tariff rates for commonly used services

23  annually, beginning on January 1, 1996.

24         Section 9.  Subsection (12) of section 364.02, Florida

25  Statutes, is amended to read:

26         364.02  Definitions.--As used in this chapter:

27         (12)  "Telecommunications company" includes every

28  corporation, partnership, and person and their lessees,

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

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

31  telecommunications service to the public for hire within this

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

  2  "telecommunications company" does not include:

  3         (a)  An entity which provides a telecommunications

  4  facility exclusively to a certificated telecommunications

  5  company;,

  6         (b)  An entity which provides a telecommunications

  7  facility exclusively to a company which is excluded from the

  8  definition of a telecommunications company under this

  9  subsection;

10         (c)  A commercial mobile radio service provider;,

11         (d)  A facsimile transmission service;,

12         (e)  A private computer data network company not

13  offering service to the public for hire;, or

14         (f)  A cable television company providing cable service

15  as defined in 47 U.S.C. s. 522.

16

17  However, each commercial mobile radio service provider shall

18  continue to be liable for any taxes imposed pursuant to

19  chapters 203 and 212 and any fees assessed pursuant to s.

20  364.026 364.025.

21         Section 10.  Effective January 1, 1999, section

22  364.336, Florida Statutes, is amended to read:

23         364.336  Regulatory assessment fees.--Notwithstanding

24  any provisions of law to the contrary, each telecommunications

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

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

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

28  that may not exceed 0.25 percent annually of its gross

29  operating revenues derived from intrastate business, except,

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

31  350.113(3), any amount paid to another telecommunications

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  1  company for the use of any telecommunications network shall be

  2  deducted from the gross operating revenue for purposes of

  3  computing the fee due. Differences, if any, between the amount

  4  paid in any 6-month period and the amount actually determined

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

  6  commission, be immediately paid or refunded. Fees under this

  7  section may not be less than $50 annually.  Such fees shall be

  8  deposited in accordance with s. 350.113.  The commission may

  9  by rule establish criteria for payment of the regulatory

10  assessment fee on an annual basis rather than on a semiannual

11  basis.

12         Section 11.  Subsections (2) and (4) of section

13  364.337, Florida Statutes, are amended to read:

14         364.337  Alternate local exchange telecommunications

15  companies; intrastate interexchange telecommunications

16  services; certification.--

17         (2)  Rules adopted by the commission governing the

18  provision of alternative local exchange telecommunications

19  service shall be consistent with s. 364.01.  The basic local

20  telecommunications service provided by an alternative local

21  exchange telecommunications company must include access to

22  operator services, "911" services, and relay services for the

23  hearing impaired. An alternative local exchange

24  telecommunications company's "911" service shall be provided

25  at a level equivalent to that provided by the local exchange

26  telecommunications company serving the same area. There shall

27  be a flat-rate pricing option for basic local

28  telecommunications services, and mandatory measured service

29  for basic local telecommunications services shall not be

30  imposed. A certificated alternative local exchange

31  telecommunications company may petition the commission for a

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  1  waiver of some or all of the requirements of this chapter,

  2  except ss. 364.16, 364.336, and subsections (1) and (5).  The

  3  commission may grant such petition if determined to be in the

  4  public interest.  In no event shall alternative local exchange

  5  telecommunications companies be subject to the requirements of

  6  ss. 364.03, 364.035, 364.037, 364.05, 364.055, 364.14, 364.17,

  7  364.18, and 364.3381.

  8         (4)  Rules adopted by the commission governing the

  9  provision of intrastate interexchange telecommunications

10  service shall be consistent with s. 364.01.  A certificated

11  intrastate interexchange telecommunications company may

12  petition the commission for a waiver for some or all of the

13  requirements of this chapter, except s. 364.16, s. 364.335(3),

14  or subsection (5).  The commission may grant such petition if

15  determined to be in the public interest. In no event shall

16  intrastate interexchange telecommunications companies be

17  subject to the requirements of ss. 364.03, 364.035, 364.037,

18  364.05, 364.055, 364.14, 364.17, 364.18, 364.183(1), and

19  364.3381.

20         Section 12.  Paragraph (b) of subsection (3) and

21  subsection (5) of section 364.339, Florida Statutes, are

22  amended to read:

23         364.339  Shared tenant service; regulation by

24  commission; certification; limitation as to designated

25  carriers.--

26         (3)

27         (b)  As provided in subsection (4) (3), the commission

28  may authorize such service notwithstanding the provisions of

29  s. 364.335.  The commission may prescribe the type, extent,

30  and conditions under which such service may be provided and

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  1  may exempt such service, except appropriate certification,

  2  from commission regulation.

  3         (5)  The offering of shared tenant service shall not

  4  interfere with or preclude a residential or commercial

  5  tenant's right to obtain direct access to the lines and

  6  services of the serving local exchange telecommunications

  7  company or the right of the serving local exchange

  8  telecommunications company to serve the residential or

  9  commercial tenant directly under the terms and conditions of

10  the commission-approved tariffs.

11         Section 13.  Consumer information program required.--

12         (1)  Each local exchange telecommunications company

13  shall implement a consumer information program to inform

14  subscribers concerning the provisions of this act and the

15  pending changes in their telephone bill. This program shall

16  include bill inserts and town hall meetings, with at least two

17  meetings per legislative district being held prior to July 1,

18  1999. Interexchange carriers are strongly encouraged to

19  participate in the town hall meetings in areas where they

20  provide service. The program may also include civic

21  organization and media presentations.

22         (2)  By January 1, 1999, the Florida Public Service

23  Commission shall expand its current consumer information

24  program to inform consumers of their rights as customers of

25  competitive telecommunications services and shall assist

26  customers in resolving any billing and service disputes which

27  the customers are unable to resolve directly with the company.

28  The commission may, pursuant to this program, require all

29  telecommunications companies providing local or long distance

30  telecommunications services to develop and provide information

31  to customers. The commission may specify by rule the types of

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  1  information to be developed and the manner by which the

  2  information will be provided to the customers.

  3         Section 14.  Part III of chapter 364, Florida Statutes,

  4  consisting of sections 364.601, 364.602, 364.603, and 364.604,

  5  Florida Statutes, is created to read:

  6         364.601  Short title.--This part may be cited as the

  7  "Telecommunications Consumer Protection Act."

  8         364.602  Definitions.--For purposes of this part:

  9         (1)  "Billing party" means any telecommunications

10  company which bills an end user consumer on its own behalf or

11  on behalf of an originating party pursuant to tariff.

12         (2)  "Commission" means the Florida Public Service

13  Commission.

14         (3)  "Customer" means any residential subscriber to

15  services provided by a telecommunications company.

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

17  corporation, or other entity, including a telecommunications

18  company or a billing clearinghouse, which provides any

19  telecommunications service to a customer or bills such

20  customer through a billing party, except the term "originating

21  party" does not include any entity specifically exempted from

22  the definition of "telecommunications company" as provided in

23  s. 364.02(12).

24         364.603  Methodology for changing telecommunications

25  provider.--

26         (1)  The commission shall adopt rules to prevent the

27  unauthorized changing of a customer's telecommunications

28  service.  Such rules shall be consistent with the

29  Telecommunications Act of 1996, provide for specific

30  verification methodologies, provide for the notification to

31  customers of the ability to freeze the customer's choice of

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  1  carriers at no charge, allow for a customer's change to be

  2  considered valid if verification was performed consistent with

  3  commission's rules, provide for remedies for violations of the

  4  rules that will make whole an affected customer, and allow for

  5  the imposition of other penalties available in chapter 364.

  6         364.604  Billing practices.--

  7         (1)  Each billing party must clearly identify on its

  8  bill the name and toll-free number of the originating party,

  9  the telecommunications service, and the specific charges,

10  taxes, and fees associated with each telecommunications

11  service. The originating party is responsible or providing the

12  billing party with all required information. The toll-free

13  number of the originating party or its agent must be answered

14  by a customer service representative or a voice response unit.

15  If the customer reaches a voice response unit, the originating

16  party or its agent must initiate a response to a customer

17  inquiry within 24 hours, excluding weekends and holidays.

18  Each telecommunications carrier shall have until June 30,

19  1999, to comply with this subsection.

20         (2)  A customer shall not be liable for any charges for

21  telecommunications service which the customer did not order or

22  which were not provided to the customer.

23         (3)  Every billing party shall provide a free blocking

24  option to a customer to block 900 or 976 telephone calls.

25         (4)  The commission may, by rule, require that a

26  billing party shall not disconnect a customer's Lifeline local

27  service if the charges, taxes, and fees applicable to basic

28  local exchange telecommunications service are paid.

29         Section 15.  Subsection (7) of section 364.337, Florida

30  Statutes, is hereby repealed.

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  1         Section 16.  Paragraph (a) of subsection (2) and

  2  paragraph (a) of subsection (6) of section 364.051, Florida

  3  Statutes, are amended to read:

  4         364.051  Price regulation.--

  5         (2)  BASIC LOCAL TELECOMMUNICATIONS SERVICE.--Price

  6  regulation of basic local telecommunications service shall

  7  consist of the following:

  8         (a)  Effective January 1, 1996, the rates for basic

  9  local telecommunications service of each company subject to

10  this section shall be capped at the rates in effect on July 1,

11  1995, and such rates shall not be increased prior to January

12  1, 2000 1999.  However, the basic local telecommunications

13  service rates of a local exchange telecommunications company

14  with more than 3 million basic local telecommunications

15  service access lines in service on July 1, 1995, shall not be

16  increased prior to January 1, 2001.

17         (6)  NONBASIC SERVICES.--Price regulation of nonbasic

18  services shall consist of the following:

19         (a)  Each company subject to this section shall

20  maintain tariffs with the commission containing the terms,

21  conditions, and rates for each of its nonbasic services, and

22  may set or change, on 15 days' notice, the rate for each of

23  its nonbasic services, except that a price increase for any

24  nonbasic service category shall not exceed 6 percent within a

25  12-month period until there is another provider providing

26  local telecommunications service in an exchange area at which

27  time the price for any nonbasic service category may be

28  increased in an amount not to exceed 20 percent within a

29  12-month period, and the rate shall be presumptively valid.

30  However, for purposes of this subsection, the prices of:

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  1         1.  A voice-grade, flat-rate, multi-line business local

  2  exchange service, including multiple individual lines, centrex

  3  lines, private branch exchange trunks, and any associated

  4  hunting services, that provides dial tone and local usage

  5  necessary to place a call within a local exchange calling

  6  area; and

  7         2.  Telecommunications services provided under contract

  8  service arrangements to the SUNCOM Network, as defined in

  9  chapter 282,

10

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

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

13  1999; provided, however, that a petition to increase such

14  rates may be filed pursuant to subsection (5) utilizing the

15  standards set forth therein.  There shall be a flat-rate

16  pricing option for multi-line business local exchange service,

17  and mandatory measured service for multi-line business local

18  exchange service shall not be imposed. Nothing contained in

19  this section shall prevent the local exchange

20  telecommunications company from meeting offerings by any

21  competitive provider of the same, or functionally equivalent,

22  nonbasic services in a specific geographic market or to a

23  specific customer by deaveraging the price of any nonbasic

24  service, packaging nonbasic services together or with basic

25  services, using volume discounts and term discounts, and

26  offering individual contracts. However, the local exchange

27  telecommunications company shall not engage in any

28  anticompetitive act or practice, nor unreasonably discriminate

29  among similarly situated customers.

30         Section 17.  Section 215.311, Florida Statutes, is

31  amended to read:

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  1         215.311  State funds; exceptions.--The provisions of s.

  2  215.31 shall not apply to:

  3         (a)  Funds collected by and under the direction and

  4  supervision of the Division of Blind Services of the

  5  Department of Labor and Employment Security as provided under

  6  ss. 413.011, 413.041, and 413.051; however, nothing in this

  7  section shall be construed to except from the provisions of s.

  8  215.31 any appropriations made by the state to the division;

  9  or

10         (b)  Any universal service support assessment payments

11  collected from telecommunications carriers by an independent

12  third-party administrator, selected and overseen by the

13  Florida Public Service Commission, to fund disbursement of

14  universal service support amounts to eligible

15  telecommunications carriers pursuant to s. 364.026.

16         Section 18.  Subsection (4) is added to section

17  364.161, Florida Statutes, to read:

18         364.161  Unbundling and resale.--

19         (4)  A local exchange telecommunications company shall

20  provide unbundled network elements, services for resale,

21  requested repairs, and necessary support services in a timely

22  manner.  The Public Service Commission shall maintain a file

23  of all complaints by alternative local exchange

24  telecommunications companies against local exchange

25  telecommunications companies regarding timeliness and adequacy

26  of service. This information, including how and when each

27  complaint was resolved, shall be included with the

28  commission's annual report to the Legislature on competition.

29         Section 19.  Except as otherwise provided herein, this

30  act shall take effect upon becoming a law.

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