House Bill 2123er

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    ENROLLED

    1999 Legislature                      HB 2123, Third Engrossed



  1

  2         An act relating to telecommunications; amending

  3         s. 364.025, F.S.; extending the interim

  4         mechanism for maintaining universal service

  5         objectives and carrier-of-last-resort

  6         obligations until a specified date; amending s.

  7         337.401; F.S.; specifying that specified

  8         provisions do not apply to the provision of pay

  9         telephone service on public or municipal roads

10         or rights-of-way; amending s. 364.0252, F.S.;

11         directing the Florida Public Service Commission

12         to inform consumers about specific matters in

13         the telecommunications services market;

14         amending s. 364.24 F.S.; providing for

15         telephonic customer account information;

16         amending s. 240.311, F.S.; authorizing the

17         State Board of Community Colleges to develop

18         and produce certain work products related to

19         distance learning; authorizing fees for such

20         materials for purposes of educational use;

21         requiring annual postaudits; requiring the

22         adoption of rules; requiring the submission of

23         reports; creating ss. 241.001-241.004, F.S.;

24         defining terms; prescribing duties of the

25         Department of Education with respect to

26         distance learning; creating the Florida

27         Distance Learning Network Advisory Council and

28         providing for its membership, meetings, and

29         responsibilities; creating a grant program to

30         award grants to certain educational

31         institutions; repealing ss. 364.509, 364.510,


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    ENROLLED

    1999 Legislature                      HB 2123, Third Engrossed



  1         364.511, 364.512, 364.513, 364.514, F.S.,

  2         relating to the Education Facilities

  3         Infrastructure Improvement Act; establishing a

  4         task force in the Department of Management

  5         Services; providing for representation;

  6         providing responsibilities; providing for

  7         meetings of the task force; providing for

  8         support staff for the task force; requiring

  9         reports; providing for the dissolution of the

10         task force; providing an appropriation;

11         repealing s. 59(4) of SB 2502, enacted in the

12         1999 Regular Session of the Legislature,

13         relating to performance measures for the

14         Florida Public Service Commission; providing

15         effective dates.

16

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

18

19         Section 1.  Section 364.025, Florida Statutes, 1998

20  Supplement, is amended to read:

21         364.025  Universal service.--

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

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

24  telecommunications services that, taking into account advances

25  in technologies, services, and market demand for essential

26  services, the commission determines should be provided at

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

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

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

30  service objectives be maintained after the local exchange

31  market is opened to competitively provided services.  It is


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    1999 Legislature                      HB 2123, Third Engrossed



  1  also the intent of the Legislature that during this transition

  2  period the ubiquitous nature of the local exchange

  3  telecommunications companies be used to satisfy these

  4  objectives. For a period of 5 4 years after January 1, 1996,

  5  each local exchange telecommunications company shall be

  6  required to furnish basic local exchange telecommunications

  7  service within a reasonable time period to any person

  8  requesting such service within the company's service

  9  territory.

10         (2)  The Legislature finds that each telecommunications

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

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

13  obligations.  For a transitional period not to exceed January

14  1, 2001 2000, an interim mechanism for maintaining universal

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

16  obligations shall be established by the commission, pending

17  the implementation of a permanent mechanism.  The interim

18  mechanism shall be applied in a manner that ensures that each

19  alternative local exchange telecommunications company

20  contributes its fair share to the support of universal service

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

22  applied to each alternative local exchange telecommunications

23  company shall reflect a fair share of the local exchange

24  telecommunications company's recovery of investments made in

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

26  maintenance of universal service objectives. The commission

27  shall ensure that the interim mechanism does not impede the

28  development of residential consumer choice or create an

29  unreasonable barrier to competition.  In reaching its

30  determination, the commission shall not inquire into or

31  consider any factor that is inconsistent with s.


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    ENROLLED

    1999 Legislature                      HB 2123, Third Engrossed



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

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

  3  not be recovered under this section.

  4         (3)  In the event any party, prior to January 1, 2001

  5  2000, believes that circumstances have changed substantially

  6  to warrant a change in the interim mechanism, that party may

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

  8  grant such petition only after an opportunity for a hearing

  9  and a compelling showing of changed circumstances, including

10  that the provider's customer population includes as many

11  residential as business customers.  The commission shall act

12  on any such petition within 120 days.

13         (4)(a)  Prior to January 1, 2001 the expiration of this

14  4-year period, the Legislature shall establish a permanent

15  universal service mechanism upon the effective date of which

16  any interim recovery mechanism for universal service

17  objectives or carrier-of-last-resort obligations imposed on

18  alternative local exchange telecommunications companies shall

19  terminate.

20         (b)  To assist the Legislature in establishing a

21  permanent universal service mechanism, the commission, by

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

23  of the Senate and the Speaker of the House of Representatives

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

25  commercially available technology and equipment and generally

26  accepted design and placement principles, of providing basic

27  local telecommunications service on a basis no greater than a

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

29  the commission after notice and opportunity for hearing.

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

31  telecommunications service for small local exchange


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    ENROLLED

    1999 Legislature                      HB 2123, Third Engrossed



  1  telecommunications companies, which serve less than 100,000

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

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

  4  mechanism is implemented by the Federal Government for small

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

  6  shall calculate a small local exchange telecommunications

  7  company's cost of providing basic local telecommunications

  8  services based on one of the following options:

  9         1.  A different proxy model; or

10         2.  A fully distributed allocation of embedded costs,

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

12  company serves and including all embedded investments and

13  expenses incurred by the company in the provision of universal

14  service. Such calculations may be made using fully distributed

15  costs consistent with 47 C.F.R. ss. 32, 36, and 64. The

16  geographic basis for the calculations shall be no smaller than

17  a census block group.

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

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

20  Speaker of the House of Representatives the amount of support

21  necessary to provide residential basic local

22  telecommunications service to low-income customers. For

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

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

25         (5)  After January 1, 2001 2000, an alternative local

26  exchange telecommunications company may petition the

27  commission to become the universal service provider and

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

29  alternative local exchange telecommunications company.  Upon

30  petition of an alternative local exchange telecommunications

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


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    ENROLLED

    1999 Legislature                      HB 2123, Third Engrossed



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

  2  alternative local exchange company.  The commission may

  3  establish the alternative local exchange telecommunications

  4  company as the universal service provider and carrier of last

  5  resort, provided that the commission first determines that the

  6  alternative local exchange telecommunications company will

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

  8  establishing the alternative local exchange telecommunications

  9  company as the universal service provider and carrier of last

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

11  such company must meet those objectives and obligations and

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

13  carrying out these duties.

14         Section 2.  Subsection (10) is added to section

15  337.401, Florida Statutes, 1998 Supplement, to read:

16         337.401  Use of right-of-way for utilities subject to

17  regulation; permit; fees.--

18         (10)  This section, except subsections (1), (2), and

19  (6), does not apply to the provision of pay telephone service

20  on public or municipal roads or rights-of-way.

21         Section 3.  Effective July 1, 1999, section 364.0252,

22  Florida Statutes, 1998 Supplement, is amended to read:

23         364.0252  Expansion of consumer information programs;

24  customer assistance; rulemaking authority.--By January 1,

25  1999, The Florida Public Service Commission shall expand its

26  current consumer information program to inform consumers of

27  their rights as customers of competitive telecommunications

28  services and shall assist customers in resolving any billing

29  and service disputes that customers are unable to resolve

30  directly with the company. The commission may, pursuant to

31  this program, require all telecommunications companies


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    ENROLLED

    1999 Legislature                      HB 2123, Third Engrossed



  1  providing local or long distance telecommunications services

  2  to develop and provide information to customers. The

  3  commission may specify by rule the types of information to be

  4  developed and the manner by which the information will be

  5  provided to the customers. The Florida Public Service

  6  Commission shall undertake a comprehensive and ongoing effort

  7  to inform consumers regarding how to protect themselves in a

  8  competitive telecommunications market.  Of specific concern

  9  are informing consumers concerning the availability of the

10  Lifeline and Link-Up Programs for low-income households and

11  alerting consumers to how they can avoid having their service

12  changed or unauthorized charges added to their telephone

13  bills.

14         Section 4.  Subsection (2) of section 364.24, Florida

15  Statutes, is amended to read:

16         364.24  Penalty for making telephone message or

17  customer account information known.--

18         (2)  Any officer or person in the employ of any

19  telecommunications company shall not intentionally disclose

20  customer account records except as authorized by the customer

21  or as necessary for billing purposes, or required by subpoena,

22  court order, other process of court, or as otherwise allowed

23  by law.  Any person who violates any provision of this section

24  commits a misdemeanor of the second degree, punishable as

25  provided in s. 775.082 or s. 775.083. Nothing herein precludes

26  disclosure of customers' names, addresses, or telephone

27  numbers to the extent they are otherwise publicly available.

28  Nothing herein precludes a telecommunications company from

29  making available to its customers a customer's own customer

30  account record through telephonic means.

31


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    ENROLLED

    1999 Legislature                      HB 2123, Third Engrossed



  1         Section 5.  Subsection (8) is added to section 240.311,

  2  Florida Statutes, 1998 Supplement, to read:

  3         240.311  State Board of Community Colleges; powers and

  4  duties.--

  5         (8)(a)  The State Board of Community Colleges is

  6  authorized to develop and produce work products which relate

  7  to mechanisms to provide for consolidated and coordinated

  8  program development and educational endeavors to support

  9  distance learning instruction which are subject to trademark,

10  copyright, or patent statutes.  To this end, the board shall

11  consider the relative contribution by the personnel employed

12  in the development of such work products and shall enter into

13  binding agreements with such personnel, organizations,

14  corporations, or government entities, which agreements shall

15  establish the percentage of ownership of such trademarks,

16  copyrights, or patents.  Any other law to the contrary

17  notwithstanding, the board is authorized in its own name to:

18         1.  Perform all things necessary to secure letters of

19  patent, copyrights, and trademarks on any such work products

20  and to enforce its rights therein.

21         2.  License, lease, assign, or otherwise give written

22  consent to any person, firm, or corporation for the

23  manufacture or use thereof on a royalty basis or for such

24  other consideration as the board deems proper.

25         3.  Take any action necessary, including legal action,

26  to protect the same against improper or unlawful use or

27  infringement.

28         4.  Enforce the collection of any sums due the board

29  for the manufacture or use thereof by any other party.

30         5.  Sell any such work products and execute all

31  instruments necessary to consummate any such sale.


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  1         6.  Perform all other acts necessary and proper for the

  2  execution of powers and duties provided by this paragraph.

  3

  4  Any proceeds therefrom shall be deposited and expended by a

  5  Florida not-for-profit corporation, incorporated under the

  6  provisions of chapter 617 and approved by the Department of

  7  State, to be used as directed by the board to pay the cost of

  8  producing and disseminating educational materials and products

  9  to carry out the intent of this act.  Any action taken by the

10  board in securing or exploiting such trademarks, copyrights,

11  or patents shall, within 30 days, be reported by the board to

12  the Department of State.

13         (b)  The board is authorized to publish, produce, or

14  have produced materials and products and shall make them

15  readily available for appropriate use in the state system of

16  education. The board is authorized to charge an amount

17  adequate to cover the essential cost of producing and

18  disseminating such materials and products in the state system

19  of education and is authorized to sell copies for educational

20  use to nonpublic schools in the state and to the public.

21         (c)  Any Florida not-for-profit corporation receiving

22  funds pursuant to this section shall make provisions for an

23  annual postaudit of its financial accounts to be conducted by

24  an independent certified public accountant in accordance with

25  rules to be adopted by the board.  The annual audit report

26  shall be submitted to the Auditor General and the board for

27  review.  The board and the Auditor General shall have the

28  authority to require and receive from the organization or from

29  its independent auditor any detail or supplemental data

30  relative to the operation of the organization.

31


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  1         (d)  By December 31, 1999, and annually thereafter, the

  2  State Board of Community Colleges shall report on the

  3  implementation of this section to the Speaker of the House of

  4  Representatives and the President of the Senate.

  5         Section 6.  Section 241.001, Florida Statutes, is

  6  created to read:

  7         241.001  Definitions.--As used in ss. 241.001-241.004,

  8  the term:

  9         (1)  "Advanced telecommunications services" means

10  network-based or wireless services that provide additional

11  communications capabilities enabling the use of applications

12  such as distance learning, video conferencing, data

13  communications, and access to Internet.

14         (2)  "Department" means the Department of Education.

15         (3)  "Eligible facilities" includes all approved

16  campuses and instructional centers of all public universities,

17  public community colleges, area technical centers, public

18  elementary schools, middle schools, and high schools,

19  including school administrative offices, public libraries,

20  teaching hospitals, the research institute described in s.

21  240.512, and rural public hospitals as defined in s. 395.602.

22  If no rural public hospital exists in a community, the public

23  health clinic that is responsible for individuals before they

24  can be transferred to a regional hospital shall be considered

25  eligible.

26         Section 7.  Section 241.002, Florida Statutes, is

27  created to read:

28         241.002  Duties of the Department of Education.--The

29  duties of the Department of Education concerning distance

30  learning include, but are not limited to, the duty to:

31


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  1         (1)  Facilitate the implementation of a statewide

  2  coordinated system and resource system for cost-efficient

  3  advanced telecommunications services and distance education

  4  which will increase overall student access to education.

  5         (2)  Coordinate the use of existing resources,

  6  including, but not limited to, the state's satellite

  7  transponders on the education satellites, the SUNCOM Network,

  8  the Florida Information Resource Network (FIRN), the

  9  Department of Management Services, the Department of

10  Corrections, and the Department of Children and Family

11  Services' satellite communication facilities to support a

12  statewide advanced telecommunications services and distance

13  learning network.

14         (3)  Assist in the coordination of the utilization of

15  the production and uplink capabilities available through

16  Florida's public television stations, eligible facilities,

17  independent colleges and universities, private firms, and

18  others as needed.

19         (4)  Seek the assistance and cooperation of Florida's

20  cable television providers in the implementation of the

21  statewide advanced telecommunications services and distance

22  learning network.

23         (5)  Seek the assistance and cooperation of Florida's

24  telecommunications carriers to provide affordable student

25  access to advanced telecommunications services and to distance

26  learning.

27         (6)  Coordinate partnerships for development,

28  acquisition, use, and distribution of distance learning.

29         (7)  Secure and administer funding for programs and

30  activities for distance learning from federal, state, local,

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  1  and private sources and from fees derived from services and

  2  materials.

  3         (8)  Manage the state's satellite transponder resources

  4  and enter into lease agreements to maximize the use of

  5  available transponder time.  All net revenue realized through

  6  the leasing of available transponder time, after deducting the

  7  costs of performing the management function, shall be recycled

  8  to support the public education distance learning in this

  9  state based upon an allocation formula of one-third to the

10  Department of Education, one-third to the State Board of

11  Community Colleges, and one-third to the State University

12  System.

13         (9)  Hire appropriate staff which may include a

14  position that shall be exempt from part II of chapter 110 and

15  is included in the Senior Management Service in accordance

16  with s. 110.205.

17

18  Nothing in ss. 241.001-241.004 shall be construed to abrogate,

19  supersede, alter, or amend the powers and duties of any state

20  agency, district school board, community college board of

21  trustees, the State Board of Community Colleges, or the Board

22  of Regents.

23         Section 8.  Section 241.003, Florida Statutes, is

24  created to read:

25         241.003  The Florida Distance Learning Network Advisory

26  Council; creation; membership; organization; meetings.--

27         (1)  The Florida Distance Learning Network Advisory

28  Council is created in the Department of Education to advise

29  and assist the department in carrying out its duties relating

30  to distance learning.

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    ENROLLED

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  1         (a)  Composition.--The advisory council, to be

  2  appointed by and serve at the pleasure of the Commissioner of

  3  Education, shall not exceed 13 members, selected from the

  4  various entities who have interests in distance learning, and

  5  who are, when possible, leading members of statewide or

  6  regional organizations representing institutional consumers

  7  and providers so as to establish a broadly based and

  8  representative distance learning advisory council.

  9         (b)  Representation.--The organizations represented on

10  the advisory council may include, but are not limited to,

11  public and private elementary and secondary schools; public

12  and private postsecondary institutions, including vocational

13  and technical centers; state agencies; libraries; the health

14  care community, including urban, rural, and teaching

15  hospitals; the cable telecommunications industry; the local

16  exchange telecommunications industry; and the interexchange

17  industry.  Two members shall be the Chancellor of the State

18  University System or the chancellor's designee and the

19  Executive Director of the Florida Community College System or

20  the executive director's designee.  One member may be a lay

21  citizen.

22         (c)  Organization, procedure, and compensation.--

23         1.  The advisory council shall meet at least annually.

24         2.  The advisory council shall elect a chair, a

25  vice-chair, and a secretary from its membership for 1-year

26  terms.  Officers may be reelected.

27         3.  The advisory council shall meet at the call of its

28  chair, at the request of the majority of its membership, the

29  commissioner, or at such times as its membership prescribes.

30         (2)  The advisory council may study and recommend to

31  the department concerning:


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  1         (a)  A marketing program statewide, nationally, and

  2  internationally, as deemed appropriate.

  3         (b)  The recipients of the Educational Technology Grant

  4  Program provided in s. 241.004.

  5         (c)  Suggested legislation concerning distance

  6  learning.

  7         (d)  Any other issue regarding distance learning that

  8  the council deems appropriate.

  9         (3)  The department shall provide administrative and

10  support services to the advisory council.

11         Section 9.  Section 241.004, Florida Statutes, is

12  created to read:

13         241.004  Educational Technology Grant Program.--

14         (1)  The Department of Education shall annually award

15  grants to school districts, area technical centers, community

16  colleges, state universities, and independent institutions

17  eligible to participate in state student assistance programs

18  established in part IV of chapter 240.  The department shall

19  give priority to cooperative proposals submitted by two or

20  more institutions or delivery systems.  The proposals shall

21  include:

22         (a)  Information which describes the educational

23  significance of the program or service in addressing state

24  educational priorities.

25         (b)  The target population for the program.

26         (c)  The program content to be transmitted.

27         (d)  The support services to be provided.

28         (e)  Provisions to use at least 20 percent of any funds

29  awarded for training both faculty and student learners in the

30  use and application of the products developed.

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  1         (2)  Programs and courses developed through the grant

  2  program shall be marketed statewide and nationwide with a

  3  portion of any profits from the sale or use of such programs

  4  retained by the developing institutions or systems and a

  5  portion reinvested in the grant program for further program

  6  development. The distribution of any revenues received shall

  7  be determined by formal agreement between the department and

  8  the developing system or institution.

  9         (3)  The department shall identify state educational

10  priorities and issue a request for proposals by June 1 in

11  every year in which funds are available for grants.  The

12  department shall ensure the quality of the programs and

13  courses produced through the grants and produce an annual

14  status report by March 1 describing the projects funded and

15  accounting for any proceeds.

16         Section 10.  Sections 364.509, 364.510, 364.511,

17  364.512, 364.513, and 364.514, Florida Statutes, are repealed.

18         Section 11.  (1)  There is created the Information

19  Service Technology Development Task Force which shall be

20  located within the Department of Management Services for the

21  purpose of developing policies that will benefit residents of

22  this state by fostering the free-market development and

23  beneficial use of advanced communications networks and

24  information technologies within this state.  The task force

25  shall be composed of 34 members as follows:

26         (a)  The Attorney General, the executive director of

27  the Florida Department of Law Enforcement, the Chancellor of

28  the State University System, the Commissioner of Education,

29  the executive director of the State Board of Community

30  Colleges, the director of the Office of Tourism, Trade, and

31  Economic Development, the executive director of the Department


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  1  of Revenue, a representative of the Florida Council of

  2  American Electronics Association, a representative of the

  3  Florida Internet Providers Association, a representative of

  4  the United States Internet Council, the chair of the State

  5  Technology Council, and the secretary of the Department of

  6  Management Services.

  7         (b)  The President of the Senate shall appoint one

  8  member from each of the following categories: a

  9  facilities-based interexchange telecommunications company, a

10  wireless telecommunications company, an alternative local

11  exchange telecommunications company, an internet service

12  provider with more than one million customers, the

13  entertainment industry, a computer or telecommunications

14  manufacturing company, and one member of the Florida Senate.

15         (c)  The Speaker of the House of Representatives shall

16  appoint one member from each of the following categories: a

17  cable television provider, a computer software company, the

18  banking industry, an internet search engine company, a local

19  exchange telecommunications company, the tourist industry, and

20  one member of the House of Representatives.

21         (d)  The Governor shall name the chair, and appoint

22  members as follows: one college student who relies on the

23  Internet for personal or academic use, a representative of a

24  local government that is an alternative local exchange

25  telecommunications company or an Internet service provider,

26  and four members as determined by the Governor to

27  appropriately represent technology providers, manufacturers,

28  retailers, and users.

29         (e)  The minority leader of the House of

30  Representatives shall appoint one member of the House of

31  Representatives.


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  1         (f)  The minority leader of the Senate shall appoint

  2  one member of the Senate.

  3         (2)  The task force shall exist for 2 years and shall

  4  meet at least four times per year. Failure of a member to

  5  participate in three consecutive meetings shall result in the

  6  member's replacement by the Governor. The task force is

  7  encouraged to implement electronic bulletin boards and other

  8  means for the exchange of ideas throughout the year.

  9         (3)  The task force shall develop overarching

10  principles to guide state policy decisions with respect to the

11  free-market development and beneficial use of advanced

12  communications networks and information technologies, identify

13  factors that will affect whether these technologies will

14  flourish in Florida, and develop policy recommendations for

15  each factor.

16         (4)  By February 14 of calendar years 2000 and 2001,

17  the task force shall submit a report to the Governor, the

18  President of the Senate, and the Speaker of the House of

19  Representatives outlining principles, policy recommendations,

20  and any suggested legislation. The task force may develop and

21  publish other documents throughout the year.

22         (5)  The State Technology Office within the Department

23  of Management Services shall provide support staff for the

24  task force and promote public awareness of the development of

25  principles and policy recommendations by the task force. The

26  State University System shall assist the task force as

27  necessary.

28         (6)  The task force shall dissolve effective July 1,

29  2001.

30         Section 12.  Effective July 1, 1999, the sum of

31  $250,000 is appropriated from the General Revenue Fund to the


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




    ENROLLED

    1999 Legislature                      HB 2123, Third Engrossed



  1  State Technology Office in the Department of Management

  2  Services and four positions are created in the department for

  3  the purpose of carrying out the provisions of this act which

  4  create the Information Service Technology Development Task

  5  Force.

  6         Section 13.  Subsection (4) of section 59 of Senate

  7  Bill 2502, enacted in the 1999 Regular Session of the

  8  Legislature, is repealed.

  9         Section 14.  Except as otherwise provided in this act,

10  this act shall take effect upon becoming a law.

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