Senate Bill 0640c1

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    Florida Senate - 1998                            CS for SB 640

    By the Committee on Regulated Industries





    315-2170E-98

  1                      A bill to be entitled

  2         An act relating to telecommunications services;

  3         amending s. 364.025, F.S.; providing duties and

  4         responsibilities of the Florida Public Service

  5         Commission to assist the Legislature in

  6         establishing a permanent universal service

  7         mechanism; requiring the commission to select a

  8         cost proxy model; providing for the calculation

  9         of small local exchange companies' costs to

10         provide basic service; providing legislative

11         determinations; directing the commission to

12         make recommendations relating to fair and

13         reasonable basic local telecommunications

14         service rates; providing criteria; requiring a

15         report to the Legislature; requiring local

16         exchange companies to provide certain

17         information to the commission; requiring the

18         provision of discounted rates for services for

19         certain subscribers; amending s. 364.163, F.S.;

20         providing a cap for certain rates; requiring

21         reductions in certain rates; providing

22         legislative findings; requiring the commission

23         to study the provision of telecommunications

24         service to multi-tenant environments; requiring

25         a report to the Legislature; requiring the

26         commission to conduct workshops; requiring the

27         commission to consider promotion of a

28         competitive telecommunications market to end

29         users; providing duties of the Public Service

30         Commission relating to its consumer education

31         program; creating part III of chapter 364,

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    Florida Senate - 1998                            CS for SB 640
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  1         F.S.; providing a short title; providing

  2         definitions; requiring the commission to adopt

  3         rules to prevent unauthorized changing of

  4         certain services; providing requirements;

  5         providing requirements for billing practices;

  6         amending s. 364.051, F.S.; delaying the date

  7         for removing the cap on certain rates; amending

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

  9         telecommunications companies to timely provide

10         certain services; requiring the commission to

11         maintain a file of certain complaints;

12         requiring inclusion of certain information in

13         the commission's annual report to the

14         Legislature on competition; amending ss.

15         166.231 and 203.01, F.S.; requiring the Public

16         Service Commission to publish certain rates for

17         commonly used services; amending s. 364.02,

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

19         364.336, F.S.; providing for deducting certain

20         amounts from gross operating revenues for

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

22         requiring provision of 911 service at certain

23         levels; subjecting intrastate interexchange

24         telecommunications companies to certain access

25         to records provisions; deleting provisions

26         relating to certain deductions from gross

27         operating revenues; amending s. 364.339, F.S.;

28         including residential tenants in shared tenant

29         service provisions; providing an effective

30         date.

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    Florida Senate - 1998                            CS for SB 640
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  1  Be It Enacted by the Legislature of the State of Florida:

  2

  3         Section 1.  Section 364.025, Florida Statutes, is

  4  amended to read:

  5         364.025  Universal service.--

  6         (1)  For the purposes of this section, the term

  7  "universal service" means an evolving level of access to

  8  telecommunications services that, taking into account advances

  9  in technologies, services, and market demand for essential

10  services, the commission determines should be provided at

11  just, reasonable, and affordable rates to customers, including

12  those in rural, economically disadvantaged, and high-cost

13  areas.  It is the intent of the Legislature that universal

14  service objectives be maintained after the local exchange

15  market is opened to competitively provided services.  It is

16  also the intent of the Legislature that during this transition

17  period the ubiquitous nature of the local exchange

18  telecommunications companies be used to satisfy these

19  objectives. For a period of 4 years after January 1, 1996,

20  each local exchange telecommunications company shall be

21  required to furnish basic local exchange telecommunications

22  service within a reasonable time period to any person

23  requesting such service within the company's service

24  territory.

25         (2)  The Legislature finds that each telecommunications

26  company should contribute its fair share to the support of the

27  universal service objectives and carrier-of-last-resort

28  obligations.  For a transitional period not to exceed January

29  1, 2000, an interim mechanism for maintaining universal

30  service objectives and funding carrier-of-last-resort

31  obligations shall be established by the commission, pending

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    Florida Senate - 1998                            CS for SB 640
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  1  the implementation of a permanent mechanism.  The interim

  2  mechanism shall be implemented by no later than January 1,

  3  1996, and shall be applied in a manner that ensures that each

  4  alternative local exchange telecommunications company

  5  contributes its fair share to the support of universal service

  6  and carrier-of-last-resort obligations.  The interim mechanism

  7  applied to each alternative local exchange telecommunications

  8  company shall reflect a fair share of the local exchange

  9  telecommunications company's recovery of investments made in

10  fulfilling its carrier-of-last-resort obligations, and the

11  maintenance of universal service objectives. The commission

12  shall ensure that the interim mechanism does not impede the

13  development of residential consumer choice or create an

14  unreasonable barrier to competition.  In reaching its

15  determination, the commission shall not inquire into or

16  consider any factor that is inconsistent with s.

17  364.051(1)(c).  The costs and expenses of any government

18  program or project required in part II of this chapter shall

19  not be recovered under this section.

20         (3)  In the event any party, prior to January 1, 2000,

21  believes that circumstances have changed substantially to

22  warrant a change in the interim mechanism, that party may

23  petition the commission for a change, but the commission shall

24  grant such petition only after an opportunity for a hearing

25  and a compelling showing of changed circumstances, including

26  that the provider's customer population includes as many

27  residential as business customers.  The commission shall act

28  on any such petition within 120 days.

29         (4)(a)  Prior to the expiration of this 4-year period,

30  the Legislature shall establish a permanent universal service

31  mechanism upon the effective date of which any interim

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  1  recovery mechanism for universal service objectives or

  2  carrier-of-last-resort obligations imposed on alternative

  3  local exchange telecommunications companies shall terminate.

  4         (b)  To assist the Legislature in establishing a

  5  permanent universal service mechanism, the commission, by

  6  February 15, 1999, shall determine and report to the President

  7  of the Senate and the Speaker of the House of Representatives

  8  the total forward-looking cost, based upon the most recent

  9  commercially available technology and equipment and generally

10  accepted design and placement principles, of providing basic

11  local telecommunications service on a basis no greater than a

12  wire center basis using a cost proxy model to be selected by

13  the commission after notice and opportunity for hearing.

14         (c)  In determining the cost of providing basic local

15  telecommunications service for small local exchange

16  telecommunications companies, which serve less than 100,000

17  access lines, the commission shall not be required to use the

18  cost proxy model selected pursuant to paragraph (b) until a

19  mechanism is implemented by the Federal Government for small

20  companies, but no sooner than January 1, 2001. The commission

21  shall calculate a small local exchange telecommunications

22  company's cost of providing basic local telecommunications

23  services based on one of the following options:

24         1. A different proxy model; or

25         2. A fully distributed allocation of embedded costs,

26  identifying high-cost areas within the local exchange area the

27  company serves and including all embedded investments and

28  expenses incurred by the company in the provision of universal

29  service. Such calculations may be made using fully distributed

30  costs consistent with 47 C.F.R., sections 32, 36, and 64. The

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    Florida Senate - 1998                            CS for SB 640
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  1  geographic basis for the calculations shall be no smaller than

  2  a census block group.

  3         (d)  The commission, by February 15, 1999, shall

  4  determine and report to the President of the Senate and the

  5  Speaker of the House of Representatives the amount of support

  6  necessary to provide residential basic local

  7  telecommunications service to low-income customers. For

  8  purposes of this section, low-income customers are customers

  9  who qualify for Lifeline service as defined in s. 364.10(2).

10  The commission is directed to research the issue of a

11  universal service and carrier-of-last-resort mechanism and

12  recommend to the Legislature what the commission determines to

13  be a reasonable and fair mechanism for providing to the

14  greatest number of customers basic local exchange

15  telecommunications service at an affordable price. The

16  recommendation shall be provided to the Governor, the

17  President of the Senate, the Speaker of the House of

18  Representatives, and the minority leaders of the Senate and

19  the House of Representatives no later than January 1, 1997.

20  The recommendation shall address, at minimum, the following:

21         (a)  Whether a subsidy or some other mechanism is

22  necessary.

23         (b)  If a subsidy is necessary, the minimum amount

24  needed and a mechanism to collect the required amount.

25         (c)  If a subsidy is necessary, a mechanism to

26  distribute the subsidy funds.

27         (d)  If a subsidy is necessary, from which providers of

28  telecommunications services the subsidy should be collected.

29         (e)  Whether the deaveraging of basic local exchange

30  telecommunications service rates should be required to more

31  appropriately reflect the cost of providing service.

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    Florida Senate - 1998                            CS for SB 640
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  1         (f)  Whether targeted subsidies are more appropriate

  2  than average basic local exchange telecommunications service

  3  pricing for maintaining universal service objectives.

  4         (5)  After January 1, 2000, an alternative local

  5  exchange telecommunications company may petition the

  6  commission to become the universal service provider and

  7  carrier of last resort in areas requested to be served by that

  8  alternative local exchange telecommunications company.  Upon

  9  petition of an alternative local exchange telecommunications

10  company, the commission shall have 120 days to vote on

11  granting in whole or in part or denying the petition of the

12  alternative local exchange company.  The commission may

13  establish the alternative local exchange telecommunications

14  company as the universal service provider and carrier of last

15  resort, provided that the commission first determines that the

16  alternative local exchange telecommunications company will

17  provide high-quality, reliable service.  In the order

18  establishing the alternative local exchange telecommunications

19  company as the universal service provider and carrier of last

20  resort, the commission shall set the period of time in which

21  such company must meet those objectives and obligations and

22  shall set up any mechanism needed to aid such company in

23  carrying out these duties.

24         (6)  By October 1, 1996, the Office of the Public

25  Counsel shall submit a report to the commission on whether the

26  interim mechanism should continue to serve as a means for

27  assisting in the funding of universal service objectives and

28  carrier-of-last-resort obligations or if a different mechanism

29  is needed.

30         Section 2.  Public Service Commission review.--

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    Florida Senate - 1998                            CS for SB 640
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  1         (1)  The Legislature has determined that charges for

  2  intrastate switched access and other services may be set above

  3  costs and may be providing an implicit subsidy of residential

  4  basic local telecommunications service rates in this state.

  5  Therefore, the Public Service Commission shall, by February

  6  15, 1999, study and report to the President of the Senate and

  7  the Speaker of the House of Representatives the relationships

  8  among the costs and charges associated with providing basic

  9  local service, intrastate access, and other services provided

10  by local exchange telecommunications companies.

11         (2)(a)  The commission shall, by February 15, 1999,

12  report to the President of the Senate and the Speaker of the

13  House of Representatives its conclusions as to the fair and

14  reasonable Florida residential basic local telecommunications

15  service rate considering affordability, the value of service,

16  comparable residential basic local telecommunications rates in

17  other states, and the cost of providing residential basic

18  local telecommunication services in this state, including the

19  proportionate share of joint and common costs. The commission

20  shall hold at least one public hearing in the service

21  territory for each local telecommunications company to elicit

22  public testimony about such rates.

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

24  commission by August 1, 1998, cost data and analysis that

25  support the cost of providing residential basic local

26  telecommunications service in their service area, as

27  prescribed by the commission for purposes of recommending the

28  fair and reasonable rate. For the purpose of verifying the

29  submitted cost data and analysis, the commission and all

30  intervenors shall have access to the records related to the

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    Florida Senate - 1998                            CS for SB 640
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  1  cost of providing residential basic local telecommunications

  2  service of each local exchange company.

  3         Section 3.  Each local exchange telecommunications

  4  company shall offer discounted residential basic local

  5  telecommunications service at 70 percent of the residential

  6  local telecommunications service rate for any Lifeline

  7  subscriber who no longer qualifies for Lifeline. A Lifeline

  8  subscriber who requests such service shall receive the

  9  discounted price for a period of 1 year after the date the

10  subscriber ceases to be qualified for Lifeline. In no event

11  shall this preclude the offering of any other discounted

12  services which comply with ss. 364.08, 364.09, and 364.10.

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

14  Florida Statutes, are amended to read:

15         364.163  Network access services.--For purposes of this

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

17  provided by a local exchange telecommunications company to a

18  telecommunications company certificated under this chapter or

19  licensed by the Federal Communications Commission to access

20  the local exchange telecommunications network, excluding the

21  local interconnection arrangements in s. 364.16 and the resale

22  arrangements in s. 364.161. Each local exchange

23  telecommunications company subject to s. 364.051 shall

24  maintain tariffs with the commission containing the terms,

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

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

27  switched network access services of each company subject to

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

29  1, 1999 July 1, 1995, and shall remain capped until January 1,

30  2001 1999. Upon the date of filing its election with the

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

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    Florida Senate - 1998                            CS for SB 640
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  1  elects to become subject to this section shall be capped at

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

  3  3 years.

  4         (6)  Any local exchange telecommunications company with

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

  6  telecommunications service access lines in service on July 1,

  7  1995 whose current intrastate switched access rates are higher

  8  than its interstate switched access rates in effect on

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

10  rates by 5 percent on July 1, 1998, and by 10 percent on

11  annually beginning October 1, 1998 1996. Any such company

12  shall be relieved of this requirement if it reduces such rates

13  by a greater percentage by the relevant date or earlier,

14  taking into account any reduction made pursuant to Order No.

15  PSC 94-0172-FOF-TL of the Public Service Commission.  Upon

16  reaching parity between intrastate and 1994 interstate

17  switched access rates, no further reductions shall be

18  required.  Any interexchange telecommunications company whose

19  intrastate switched access rate is reduced as a result of the

20  rate decreases made by a local exchange telecommunications

21  company in accordance with by this subsection shall decrease

22  its intrastate customer long distance rates by the amount

23  necessary to return the benefits of such reduction to its

24  customers but shall not reduce per minute intraLATA toll rates

25  by a percentage greater than the per minute intrastate

26  switched access rate reductions required by this act. The

27  interexchange telecommunications carrier may determine the

28  specific intrastate rates to be decreased, provided that

29  residential and business customers benefit from the rate

30  decreases.

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  1         Section 5.  The Legislature has determined that access

  2  to tenants by certificated telecommunications companies may be

  3  an important component in the promotion of competition in the

  4  delivery of telecommunications services in this state.

  5  Therefore, the Florida Public Service Commission shall study

  6  issues associated with telecommunications companies serving

  7  customers in multi-tenant environments and shall report its

  8  conclusions, including policy recommendations, to the

  9  President of the Senate and the Speaker of the House of

10  Representatives by February 15, 1999. As part of this study,

11  the commission shall hold publicly noticed workshops and shall

12  consider the promotion of a competitive telecommunications

13  market to end users, consistency with any applicable federal

14  requirements, landlord property rights, rights of tenants, and

15  other considerations developed through the workshop process

16  and commission research.

17         Section 6.  By January 1, 1999, the Florida Public

18  Service Commission shall expand its current consumer

19  information program to inform consumers of their rights as

20  customers of competitive telecommunications services and shall

21  assist customers in resolving any billing and service disputes

22  that customers are unable to resolve directly with the

23  company. The commission may, pursuant to this program, require

24  all telecommunications companies providing local or long

25  distance telecommunications services to develop and provide

26  information to customers. The commission may specify by rule

27  the types of information to be developed and the manner by

28  which the information will be provided to the customers.

29         Section 7.  Part III of chapter 364, Florida Statutes,

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

31  Florida Statutes, is created to read:

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  1         364.601  Short title.--This part may be cited as the

  2  "Telecommunications Consumer Protection Act."

  3         364.602  Definitions.--For purposes of this part:

  4         (1)  "Billing party" means any telecommunications

  5  company that bills an end user consumer on its own behalf or

  6  on behalf of an originating party.

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

  8  Commission.

  9         (3)  "Customer" means any subscriber to services

10  provided by a telecommunications company.

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

12  corporation, or other entity, including a telecommunications

13  company or a billing clearinghouse that bills a customer

14  through a billing party, except the term "originating party"

15  does not include any entity specifically exempted from the

16  definition of "telecommunications company" as provided in s.

17  364.02(12).

18         364.603  Methodology for changing telecommunications

19  provider.--

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

21  unauthorized changing of a customer's telecommunications

22  service.  Such rules shall be consistent with the

23  Telecommunications Act of 1996, provide for specific

24  verification methodologies, provide for the notification to

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

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

27  considered valid if verification was performed consistent with

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

29  rules, and allow for the imposition of other penalties

30  available in chapter 364.

31         364.604  Billing practices.--

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

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

  3  the services billed, and the specific charges, taxes, and fees

  4  associated with each service. The originating party is

  5  responsible for providing the billing party with all required

  6  information. The toll-free number of the originating party or

  7  its agent must be answered by a customer service

  8  representative or a voice response unit. If the customer

  9  reaches a voice response unit, the originating party or its

10  agent must initiate a response to a customer inquiry within 24

11  hours, excluding weekends and holidays.  Each

12  telecommunications carrier shall have until June 30, 1999, to

13  comply with this subsection.

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

15  services that the customer did not order or that were not

16  provided to the customer.

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

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

19         (4)  A billing party shall not disconnect a customer's

20  Lifeline local service if the charges, taxes, and fees

21  applicable to basic local exchange telecommunications service

22  are paid.

23         (5)  Pursuant to s. 120.536, the commission may adopt

24  rules to implement this section.

25         Section 8.  Paragraph (a) of subsection (2) and

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

27  Statutes, are amended to read:

28         364.051  Price regulation.--

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

30  regulation of basic local telecommunications service shall

31  consist of the following:

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

  2  local telecommunications service of each company subject to

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

  4  1995, and such rates shall not be increased prior to January

  5  1, 2000 1999.  However, the basic local telecommunications

  6  service rates of a local exchange telecommunications company

  7  with more than 3 million basic local telecommunications

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

  9  increased prior to January 1, 2001.

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

11  services shall consist of the following:

12         (a)  Each company subject to this section shall

13  maintain tariffs with the commission containing the terms,

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

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

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

17  nonbasic service category shall not exceed 6 percent within a

18  12-month period until there is another provider providing

19  local telecommunications service in an exchange area at which

20  time the price for any nonbasic service category may be

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

22  12-month period, and the rate shall be presumptively valid.

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

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

25  exchange service, including multiple individual lines, centrex

26  lines, private branch exchange trunks, and any associated

27  hunting services, that provides dial tone and local usage

28  necessary to place a call within a local exchange calling

29  area; and

30

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  1         2.  Telecommunications services provided under contract

  2  service arrangements to the SUNCOM Network, as defined in

  3  chapter 282,

  4

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

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

  7  1999; provided, however, that a petition to increase such

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

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

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

11  and mandatory measured service for multi-line business local

12  exchange service shall not be imposed. Nothing contained in

13  this section shall prevent the local exchange

14  telecommunications company from meeting offerings by any

15  competitive provider of the same, or functionally equivalent,

16  nonbasic services in a specific geographic market or to a

17  specific customer by deaveraging the price of any nonbasic

18  service, packaging nonbasic services together or with basic

19  services, using volume discounts and term discounts, and

20  offering individual contracts. However, the local exchange

21  telecommunications company shall not engage in any

22  anticompetitive act or practice, nor unreasonably discriminate

23  among similarly situated customers.

24         Section 9.  Subsection (4) is added to section 364.161,

25  Florida Statutes, to read:

26         364.161  Unbundling and resale.--

27         (4)  A local exchange telecommunications company shall

28  provide unbundled network elements, services for resale,

29  requested repairs, and necessary support services in a timely

30  manner.  The Public Service Commission shall maintain a file

31  of all complaints by alternative local exchange

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  1  telecommunications companies against local exchange

  2  telecommunications companies regarding timeliness and adequacy

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

  4  complaint was resolved, shall be included with the

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

  6         Section 10.  Paragraph (d) of subsection (9) of section

  7  166.231, Florida Statutes, is amended to read:

  8         166.231  Municipalities; public service tax.--

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

10  telecommunication services as defined in s. 203.012 as

11  follows:

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

13  service also involves the sale of an exempt cable television

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

15  service when it is sold separately.

16         2.  If the company does not offer this service

17  separately, the consideration paid shall be separately

18  identified and stated with respect to the taxable and exempt

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

20         3.  The amounts identified as taxable in subparagraph

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

22  set forth by the local exchange telecommunications companies

23  in the tariffs filed with the Public Service Commission on

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

25  the equivalent services subject to this section.  The Public

26  Service Commission shall publish the statewide average tariff

27  rates for commonly used services annually, beginning on

28  January 1, 1996.

29         4.  If the total amount of municipal utility tax

30  collected by a municipality or charter county from

31  telecommunication services pursuant to this subsection for the

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

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

  3  1995, the municipality or charter county shall assess each

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

  5  shortfall.  The shortfall shall be prorated based on the

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

  7  1995, to June 30, 1996, and the total amount of tax remitted

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

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

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

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

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

13  addition to the conditions above, a municipality or charter

14  county has levied the applicable maximum tax rate allowed

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

16  30, 1996, and has not switched between the two options allowed

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

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

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

20  203.01, Florida Statutes, is amended to read:

21         203.01  Tax on gross receipts for utility services.--

22         (9)

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

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

25  forth by the local exchange telecommunications companies in

26  the tariffs filed with the Public Service Commission on

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

28  the equivalent services subject to the provisions of this

29  section.  The Public Service Commission shall publish the

30  statewide average tariff rates for commonly used services

31  annually, beginning on January 1, 1996.

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  1         Section 12.  Subsection (12) of section 364.02, Florida

  2  Statutes, is amended to read:

  3         364.02  Definitions.--As used in this chapter:

  4         (12)  "Telecommunications company" includes every

  5  corporation, partnership, and person and their lessees,

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

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

  8  telecommunications service to the public for hire within this

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

10  "telecommunications company" does not include:

11         (a)  An entity which provides a telecommunications

12  facility exclusively to a certificated telecommunications

13  company;,

14         (b)  An entity which provides a telecommunications

15  facility exclusively to a company which is excluded from the

16  definition of a telecommunications company under this

17  subsection;

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

19         (d)  A facsimile transmission service;,

20         (e)  A private computer data network company not

21  offering service to the public for hire;, or

22         (f)  A cable television company providing cable service

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

24

25  However, each commercial mobile radio service provider shall

26  continue to be liable for any taxes imposed pursuant to

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

28  364.025.

29         Section 13.  Effective January 1, 1999, section

30  364.336, Florida Statutes, is amended to read:

31

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  1         364.336  Regulatory assessment fees.--Notwithstanding

  2  any provisions of law to the contrary, each telecommunications

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

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

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

  6  that may not exceed 0.25 percent annually of its gross

  7  operating revenues derived from intrastate business, except,

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

  9  350.113(3), any amount paid to another telecommunications

10  company for the use of any telecommunications network shall be

11  deducted from the gross operating revenue for purposes of

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

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

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

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

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

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

18  by rule establish criteria for payment of the regulatory

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

20  basis.

21         Section 14.  Subsections (2), (4), and (7) of section

22  364.337, Florida Statutes, are amended to read:

23         364.337  Alternate local exchange telecommunications

24  companies; intrastate interexchange telecommunications

25  services; certification.--

26         (2)  Rules adopted by the commission governing the

27  provision of alternative local exchange telecommunications

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

29  telecommunications service provided by an alternative local

30  exchange telecommunications company must include access to

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

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  1  hearing impaired. An alternative local exchange

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

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

  4  telecommunications company serving the same area. There shall

  5  be a flat-rate pricing option for basic local

  6  telecommunications services, and mandatory measured service

  7  for basic local telecommunications services shall not be

  8  imposed. A certificated alternative local exchange

  9  telecommunications company may petition the commission for a

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

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

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

13  public interest.  In no event shall alternative local exchange

14  telecommunications companies be subject to the requirements of

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

16  364.18, and 364.3381.

17         (4)  Rules adopted by the commission governing the

18  provision of intrastate interexchange telecommunications

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

20  intrastate interexchange telecommunications company may

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

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

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

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

25  intrastate interexchange telecommunications companies be

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

27  364.05, 364.055, 364.14, 364.17, 364.18, 364.183(1), and

28  364.3381.

29         (7)  Each amount paid by an interexchange

30  telecommunications company or a pay telephone company to a

31  telecommunications company providing local service for use of

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  1  the local network shall be deducted from gross operating

  2  revenues for purposes of determining the amount of the

  3  regulatory fee assessed the interexchange telecommunications

  4  company pursuant to s. 350.113 or s. 364.336.

  5         Section 15.  Paragraph (b) of subsection (3) and

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

  7  amended to read:

  8         364.339  Shared tenant service; regulation by

  9  commission; certification; limitation as to designated

10  carriers.--

11         (3)

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

13  may authorize such service notwithstanding the provisions of

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

15  and conditions under which such service may be provided and

16  may exempt such service, except appropriate certification,

17  from commission regulation.

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

19  interfere with or preclude a residential or commercial

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

21  services of the serving local exchange telecommunications

22  company or the right of the serving local exchange

23  telecommunications company to serve the residential or

24  commercial tenant directly under the terms and conditions of

25  the commission-approved tariffs.

26         Section 16.  This act shall take effect upon becoming a

27  law.

28

29

30

31

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                              SB 640

  3

  4  Requires the PSC to determine by February 15, 1999, the costs
    of providing basic local services on a geographic basis, and
  5  requires the PSC to determine the amount of support required
    for low-income customers (information the Legislature can use
  6  to enact a permanent universal service mechanism).

  7  Requires the PSC to study by February 15, 1999, the
    relationships among the costs and charges for residental basic
  8  local service, intrastate access, and other local services and
    to recommend the fair and reasonable residential basic local
  9  service rate.

10  Requires LECs to discount the cost of basic local service for
    former Lifeline subscribers by 30% for a period of one year.
11
    Requires intrastate switched network access charge reductions
12  for Sprint and GTE of 5% by July 1, 1998, and 10% by October
    1, 1998, and requires long distance companies to pass the
13  benefits of all reductions on to their residential and
    business customers (estimated to result in a total reduction
14  of approximately $50 million).

15  Requires the PSC to study nondiscriminatory access for all
    telecommunications providers to customers in multi-tenant
16  environments.

17  Creates the "Telecommunications Consumer Protection Act" to
    require the PSC to adopt rules to prevent "slamming" and
18  establish guidelines for telecommunications billing practices.

19  Extends caps on basic local service for GTE, Sprint, and
    price-regulated small LECs from January 1, 1999, to January 1,
20  2000. (Note: BellSouth's basic rates are capped until January
    1, 2001 under current law.) Extends caps on multi-line
21  business local service and Suncom for all price-regulated
    companies from January 1, 1999, to January 1, 2000.
22
    Requires the PSC to maintain a file of all complaints by ALECs
23  against incumbent LECs relating to providing services for
    resale and unbundled services.
24
    Corrects several glitches remaining from the 1996
25  Telecommunications Act relating to statewide tariffs,
    exemptions, regulatory assessment fees, "911" services, access
26  to records, and shared tenant services.

27

28

29

30

31

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