HB 1649CS

CHAMBER ACTION



1The Utilities & Telecommunications Committee recommends the
2following:
3
4     Council/Committee Substitute
5     Remove the entire bill and insert:
6
A bill to be entitled
7An act relating to telecommunications; amending s. 364.01,
8F.S.; specifying the exclusive jurisdiction of the Florida
9Public Service Commission to regulate telecommunications
10companies; providing that activities regulated by the
11commission are exempt from ch. 501, F.S., relating to
12consumer protection; providing that state laws governing
13business and consumer protection be applied to
14communications activities that are not regulated by the
15commission; deleting certain legislative findings with
16respect to the provision of local telecommunications
17services; revising provisions governing the exclusive
18jurisdiction of the commission; creating s. 364.011, F.S.;
19specifying certain services that are exempt from oversight
20by the commission; creating s. 364.012, F.S.; directing
21the commission to maintain liaison with federal agencies;
22providing that ch. 364, F.S., does not limit or modify
23certain duties of a local exchange carrier; creating s.
24364.013, F.S.; requiring that broadband service remain
25free of state and local regulation; requiring that voice-
26over-Internet protocol remain free of regulation, except
27as specifically provided in ch. 364, F.S.; amending s.
28364.02, F.S.; defining the terms "broadband service" and
29"VoIP"; revising the definition of "service"; amending s.
30364.0361, F.S.; prohibiting a local government from
31regulating the provision of voice-over-Internet protocol,
32regardless of the provider, platform, or protocol;
33amending s. 364.051, F.S.; providing that evidence of
34damage caused by a tropical storm system constitutes a
35compelling showing of changed circumstances to justify a
36change in rates; directing the commission to order a line
37item charge for a certain period to recover costs of such
38damage; limiting amount of such charge; amending s.
39364.10, F.S.; revising the income threshold for
40eligibility for Lifeline service; amending s. 364.335,
41F.S.; increasing the maximum allowable filing fee for
42certification of telecommunications carriers; amending s.
43364.336, F.S.; providing minimum regulatory assessment
44fees to be assessed by rule of the commission; repealing
45s. 364.502, F.S., relating to video programming services;
46amending ss. 196.012, 199.183, 212.08, 290.007, 350.0605,
47364.602, and 489.103, F.S.; conforming cross references;
48providing effective dates.
49
50Be It Enacted by the Legislature of the State of Florida:
51
52     Section 1.  Section 364.01, Florida Statutes, is amended to
53read:
54     364.01  Powers of commission, legislative intent.--
55     (1)  The Florida Public Service Commission shall exercise
56over and in relation to telecommunications companies the powers
57conferred by this chapter.
58     (2)  The Florida Public Service Commission has It is the
59legislative intent to give exclusive jurisdiction in all matters
60set forth in this chapter to regulate the Florida Public Service
61Commission in regulating telecommunications companies, and such
62preemption shall supersede any local or special act or municipal
63charter where any conflict of authority may exist. However, the
64provisions of this chapter shall not affect the authority and
65powers granted in s. 166.231(9) or s. 337.401.
66     (3)  Activities regulated under laws administered by the
67Florida Public Service Commission are exempt from chapter 501.
68Communications activities that are not regulated by the Florida
69Public Service Commission, including, but not limited to, VoIP,
70wireless, and broadband, are subject to this state's generally
71applicable business regulation and deceptive trade practices and
72consumer protection laws, as enforced by the appropriate state
73authority or through actions in the judicial system. This
74chapter does not limit the availability to any party of any
75remedy or defense under state or federal antitrust laws. The
76Legislature finds that the competitive provision of
77telecommunications services, including local exchange
78telecommunications service, is in the public interest and will
79provide customers with freedom of choice, encourage the
80introduction of new telecommunications service, encourage
81technological innovation, and encourage investment in
82telecommunications infrastructure. The Legislature further finds
83that the transition from the monopoly provision of local
84exchange service to the competitive provision thereof will
85require appropriate regulatory oversight to protect consumers
86and provide for the development of fair and effective
87competition, but nothing in this chapter shall limit the
88availability to any party of any remedy under state or federal
89antitrust laws. The Legislature further finds that changes in
90regulations allowing increased competition in telecommunications
91services could provide the occasion for increases in the
92telecommunications workforce; therefore, it is in the public
93interest that competition in telecommunications services lead to
94a situation that enhances the high-technological skills and the
95economic status of the telecommunications workforce. The
96Legislature further finds that the provision of voice-over-
97Internet protocol (VOIP) free of unnecessary regulation,
98regardless of the provider, is in the public interest.
99     (4)  The commission shall exercise its exclusive
100jurisdiction in order to:
101     (a)  Protect the public health, safety, and welfare by
102ensuring that basic local telecommunications services are
103available to all consumers in the state at reasonable and
104affordable prices.
105     (b)  Encourage competition through flexible regulatory
106treatment among providers of telecommunications services in
107order to ensure the availability of the widest possible range of
108consumer choice in the provision of all telecommunications
109services.
110     (c)  Protect the public health, safety, and welfare by
111ensuring that monopoly services provided by telecommunications
112companies continue to be subject to effective price, rate, and
113service regulation.
114     (d)  Promote competition by encouraging innovation and
115investment in new entrants into telecommunications markets and
116by allowing a transitional period in which new and emerging
117technologies entrants are subject to a reduced lesser level of
118regulatory oversight than local exchange telecommunications
119companies.
120     (e)  Encourage all providers of telecommunications services
121to introduce new or experimental telecommunications services
122free of unnecessary regulatory restraints.
123     (f)  Eliminate any rules or and/or regulations which will
124delay or impair the transition to competition.
125     (g)  Ensure that all providers of telecommunications
126services are treated fairly, by preventing anticompetitive
127behavior and eliminating unnecessary regulatory restraint.
128     (h)  Recognize the continuing emergence of a competitive
129telecommunications environment through the flexible regulatory
130treatment of competitive telecommunications services, where
131appropriate, if doing so does not reduce the availability of
132adequate basic local telecommunications service to all citizens
133of the state at reasonable and affordable prices, if competitive
134telecommunications services are not subsidized by monopoly
135telecommunications services, and if all monopoly services are
136available to all competitors on a nondiscriminatory basis.
137     (i)  Continue its historical role as a surrogate for
138competition for monopoly services provided by local exchange
139telecommunications companies.
140     Section 2.  Section 364.011, Florida Statutes, is created
141to read:
142     364.011  Exemptions from commission jurisdiction.--The
143following services are exempt from oversight by the commission,
144except to the extent delineated in this chapter or specifically
145authorized by federal law:
146     (1)  Intrastate interexchange telecommunications services.
147     (2)  Broadband services, regardless of the provider,
148platform, or protocol.
149     (3)  VoIP.
150     (4)  Wireless telecommunications, including commercial
151mobile radio services.
152     Section 3.  Section 364.012, Florida Statutes, is created
153to read:
154     364.012  Consistency with federal law.--
155     (1)  In order to promote commission coordination with
156federal policymakers and regulatory agencies, the commission
157shall maintain continuous liaisons with appropriate federal
158agencies whose policy decisions and rulemaking authority affect
159those telecommunications companies over which the commission has
160jurisdiction. The commission is encouraged to participate in the
161proceedings of federal agencies in cases in which the state's
162consumers may be affected and to convey the commission's policy
163positions and information requirements in order to achieve
164greater efficiency in regulation.
165     (2)  This chapter does not limit or modify the duties of a
166local exchange carrier to provide unbundled access to network
167elements or the commission's authority to arbitrate and enforce
168interconnection agreements to the extent that those elements are
169required under 47 U.S.C. ss. 251 and 252, and under any
170regulations issued by the Federal Communications Commission at
171rates determined in accordance with the standards established by
172the Federal Communications Commission pursuant to 47 C.F.R. ss.
17351.503-51.513, inclusive of any successor regulation or
174successor forbearance of regulation.
175     Section 4.  Section 364.013, Florida Statutes, is created
176to read:
177     364.013  Emerging and advanced services.--Broadband service
178shall remain free of state and local regulation, regardless of
179the provider, platform, or protocol. In addition, the provision
180of voice-over-Internet protocol (VoIP) shall be free of
181regulation, except as delineated in this chapter or as
182specifically authorized by federal law, regardless of the
183provider, platform, or protocol.
184     Section 5.  Section 364.02, Florida Statutes, is amended to
185read:
186     364.02  Definitions.--As used in this chapter:
187     (1)  "Basic local telecommunications service" means
188voice-grade, flat-rate residential, and flat-rate single-line
189business local exchange services which provide dial tone, local
190usage necessary to place unlimited calls within a local exchange
191area, dual tone multifrequency dialing, and access to the
192following:  emergency services such as "911," all locally
193available interexchange companies, directory assistance,
194operator services, relay services, and an alphabetical directory
195listing. For a local exchange telecommunications company, such
196term shall include any extended area service routes, and
197extended calling service in existence or ordered by the
198commission on or before July 1, 1995.
199     (2)  "Broadband service" means any service that consists of
200or includes the offering of the capability to transmit or
201receive information at a rate that is not less than 200 kilobits
202per second and either:
203     (a)  Is used to provide access to the Internet; or
204     (b)  Provides computer processing, information, storage,
205information content, or protocol conversion in combination with
206such service.
207
208Nothing contained in this subsection shall apply to any
209intrastate telecommunications services tariffed with the
210commission as of January 1, 2005.
211     (3)(2)  "Commercial mobile radio service provider" means a
212commercial mobile radio service provider as defined by and
213pursuant to 47 U.S.C. ss. 153(n) and 332(d).
214     (4)(3)  "Commission" means the Florida Public Service
215Commission.
216     (5)(4)  "Competitive local exchange telecommunications
217company" means any company certificated by the commission to
218provide local exchange telecommunications services in this state
219on or after July 1, 1995.
220     (6)(5)  "Corporation" includes a corporation, company,
221association, or joint stock association.
222     (7)(6)  "Intrastate interexchange telecommunications
223company" means any entity that provides intrastate interexchange
224telecommunications services.
225     (8)(7)  "Local exchange telecommunications company" means
226any company certificated by the commission to provide local
227exchange telecommunications service in this state on or before
228June 30, 1995.
229     (9)(8)  "Monopoly service" means a telecommunications
230service for which there is no effective competition, either in
231fact or by operation of law.
232     (10)(9)  "Nonbasic service" means any telecommunications
233service provided by a local exchange telecommunications company
234other than a basic local telecommunications service, a local
235interconnection arrangement described in s. 364.16, or a network
236access service described in s. 364.163.
237     (11)(10)  "Operator service" includes, but is not limited
238to, billing or completion of third-party, person-to-person,
239collect, or calling card or credit card calls through the use of
240a live operator or automated equipment.
241     (12)(11)  "Operator service provider" means a person who
242furnishes operator service through a call aggregator.
243     (13)(12)  "Service" is to be construed in its broadest and
244most inclusive sense. The term "service" does not include
245broadband service or voice-over-Internet protocol service for
246purposes of regulation by the commission. Nothing herein shall
247affect the rights and obligations of any entity related to the
248payment of switched network access rates or other intercarrier
249compensation, if any, related to voice-over-Internet protocol
250service. Notwithstanding the provisions of this subsection, the
251commission shall have the authority to arbitrate, enforce, or
252approve interconnection agreements and resolve disputes as
253provided by 47 U.S.C. ss. 251 and 252 or any other applicable
254federal law or regulation. The duties of a local exchange
255telecommunications company to provide unbundled network
256elements, interconnection, collocation arrangements, or any
257other service, right, or benefit to any party, regardless of the
258technology, shall be those that the company is obligated to
259extend or provide under applicable federal law and regulations.
260     (14)(13)  "Telecommunications company" includes every
261corporation, partnership, and person and their lessees,
262trustees, or receivers appointed by any court whatsoever, and
263every political subdivision in the state, offering two-way
264telecommunications service to the public for hire within this
265state by the use of a telecommunications facility. The term
266"telecommunications company" does not include:
267     (a)  An entity which provides a telecommunications facility
268exclusively to a certificated telecommunications company;
269     (b)  An entity which provides a telecommunications facility
270exclusively to a company which is excluded from the definition
271of a telecommunications company under this subsection;
272     (c)  A commercial mobile radio service provider;
273     (d)  A facsimile transmission service;
274     (e)  A private computer data network company not offering
275service to the public for hire;
276     (f)  A cable television company providing cable service as
277defined in 47 U.S.C. s. 522; or
278     (g)  An intrastate interexchange telecommunications
279company.
280
281However, each commercial mobile radio service provider and each
282intrastate interexchange telecommunications company shall
283continue to be liable for any taxes imposed pursuant to chapters
284202, 203 and 212 and any fees assessed pursuant to ss. 364.025
285and 364.336. Each intrastate interexchange telecommunications
286company shall continue to be subject to ss. 364.04, 364.10(3)(a)
287and (d), 364.163, 364.285, 364.501, 364.603, and 364.604, shall
288provide the commission with such current information as the
289commission deems necessary to contact and communicate with the
290company, shall continue to pay intrastate switched network
291access rates or other intercarrier compensation to the local
292exchange telecommunications company or the competitive local
293exchange telecommunications company for the origination and
294termination of interexchange telecommunications service, and
295shall reduce its intrastate long distance toll rates in
296accordance with s. 364.163(2).
297     (15)(14)  "Telecommunications facility" includes real
298estate, easements, apparatus, property, and routes used and
299operated to provide two-way telecommunications service to the
300public for hire within this state.
301     (16)  "VoIP" means the voice-over-Internet protocol as that
302term is defined in federal law.
303     Section 6.  Section 364.0361, Florida Statutes, is amended
304to read:
305     364.0361  Local government authority; nondiscriminatory
306exercise.--A local government shall treat each
307telecommunications company in a nondiscriminatory manner when
308exercising its authority to grant franchises to a
309telecommunications company or to otherwise establish conditions
310or compensation for the use of rights-of-way or other public
311property by a telecommunications company. A local government may
312not directly or indirectly regulate the terms and conditions,
313including, but not limited to, the operating systems,
314qualifications, services, service quality, service territory,
315and prices, applicable to or in connection with the provision of
316any voice-over-Internet protocol, broadband or information
317service, regardless of the provider, platform, or protocol. This
318section does not relieve a provider from any obligations under
319s. 166.046 or s. 337.401.
320     Section 7.  Effective upon this act becoming a law,
321subsection (4) of section 364.051, Florida Statutes, is amended
322to read:
323     364.051  Price regulation.--
324     (4)  Notwithstanding the provisions of subsection (2), any
325local exchange telecommunications company that believes
326circumstances have changed substantially to justify any increase
327in the rates for basic local telecommunications services may
328petition the commission for a rate increase, but the commission
329shall grant such petition only after an opportunity for a
330hearing and a compelling showing of changed circumstances. The
331costs and expenses of any government program or project required
332in part II shall not be recovered under this subsection unless
333such costs and expenses are incurred in the absence of a bid and
334subject to carrier-of-last-resort obligations as provided for in
335part II. The commission shall act upon any such petition within
336120 days of its filing. For purposes of this section, evidence
337of damage to the lines, plant, and facilities of a local
338exchange telecommunications company subject to carrier-of-last-
339resort obligations resulting from the occurrence of a tropical
340storm system that has been named by the National Hurricane
341Center after June 1, 2005, shall constitute a compelling showing
342of changed circumstances. In such event, the commission shall
343verify the costs and expenses submitted by the company in
344support of its petition related to repairing, restoring, and
345replacing storm-damaged lines, plants, and facilities, and, upon
346verification and a showing that such costs and expenses were
347reasonably incurred under the circumstances, shall grant the
348company's petition. A local exchange telecommunications company
349with a storm reserve shall be authorized to recover tropical
350storm system cost-related damages from its customers only in
351excess of any amounts available in such storm reserve. The
352commission shall order the company to add an equal line item
353charge per access line for a period of no more than 12 months to
354the bills of the company's retail basic local telecommunications
355service customers, its retail nonbasic telecommunications
356service customers, and its wholesale loop unbundled network
357element customers. The line item charge may be in an amount up
358to, but shall not exceed, 50 cents per month per customer line
359charged for 12 calendar months.
360     Section 8.  Paragraph (a) of subsection (3) of section
361364.10, Florida Statutes, is amended to read:
362     364.10  Undue advantage to person or locality prohibited;
363Lifeline service.--
364     (3)(a)  Effective September 1, 2003, any local exchange
365telecommunications company authorized by the commission to
366reduce its switched network access rate pursuant to s. 364.164
367shall have tariffed and shall provide Lifeline service to any
368otherwise eligible customer or potential customer who meets an
369income eligibility test at 135 125 percent or less of the
370federal poverty income guidelines for Lifeline customers. Such a
371test for eligibility must augment, rather than replace, the
372eligibility standards established by federal law and based on
373participation in certain low-income assistance programs. Each
374intrastate interexchange telecommunications company shall,
375effective September 1, 2003, file a tariff providing at a
376minimum the intrastate interexchange telecommunications
377carrier's current Lifeline benefits and exemptions to Lifeline
378customers who meet the income eligibility test set forth in this
379subsection. The Office of Public Counsel shall certify and
380maintain claims submitted by a customer for eligibility under
381the income test authorized by this subsection.
382     Section 9.  Paragraph (c) of subsection (1) of section
383364.335, Florida Statutes, is amended to read:
384     364.335  Application for certificate.--
385     (1)  Each applicant for a certificate shall:
386     (c)  File the application fee required by the commission in
387an amount not to exceed $500 $250. Such fees shall be deposited
388in accordance with s. 350.113.
389     Section 10.  Section 364.336, Florida Statutes, is amended
390to read:
391     364.336  Regulatory assessment fees.--Notwithstanding any
392provisions of law to the contrary, each telecommunications
393company licensed or operating under this chapter, for any part
394of the preceding 6-month period, shall pay to the commission,
395within 30 days following the end of each 6-month period, a fee
396that may not exceed 0.25 percent annually of its gross operating
397revenues derived from intrastate business, except, for purposes
398of this section and the fee specified in s. 350.113(3), any
399amount paid to another telecommunications company for the use of
400any telecommunications network shall be deducted from the gross
401operating revenue for purposes of computing the fee due. The
402commission shall by rule assess a minimum fee in an amount up to
403$1,000. The minimum amount may be different depending on the
404type of service provided by the telecommunications company and
405shall, to the extent practicable, be related to the cost of
406regulating such type of company. Differences, if any, between
407the amount paid in any 6-month period and the amount actually
408determined by the commission to be due shall, upon motion by the
409commission, be immediately paid or refunded. Fees under this
410section may not be less than $50 annually. Such fees shall be
411deposited in accordance with s. 350.113. The commission may by
412rule establish criteria for payment of the regulatory assessment
413fee on an annual basis rather than on a semiannual basis.
414     Section 11.  Section 364.502, Florida Statutes, is
415repealed.
416     Section 12.  Subsection (6) of section 196.012, Florida
417Statutes, is amended to read:
418     196.012  Definitions.--For the purpose of this chapter, the
419following terms are defined as follows, except where the context
420clearly indicates otherwise:
421     (6)  Governmental, municipal, or public purpose or function
422shall be deemed to be served or performed when the lessee under
423any leasehold interest created in property of the United States,
424the state or any of its political subdivisions, or any
425municipality, agency, special district, authority, or other
426public body corporate of the state is demonstrated to perform a
427function or serve a governmental purpose which could properly be
428performed or served by an appropriate governmental unit or which
429is demonstrated to perform a function or serve a purpose which
430would otherwise be a valid subject for the allocation of public
431funds. For purposes of the preceding sentence, an activity
432undertaken by a lessee which is permitted under the terms of its
433lease of real property designated as an aviation area on an
434airport layout plan which has been approved by the Federal
435Aviation Administration and which real property is used for the
436administration, operation, business offices and activities
437related specifically thereto in connection with the conduct of
438an aircraft full service fixed base operation which provides
439goods and services to the general aviation public in the
440promotion of air commerce shall be deemed an activity which
441serves a governmental, municipal, or public purpose or function.
442Any activity undertaken by a lessee which is permitted under the
443terms of its lease of real property designated as a public
444airport as defined in s. 332.004(14) by municipalities,
445agencies, special districts, authorities, or other public bodies
446corporate and public bodies politic of the state, a spaceport as
447defined in s. 331.303(19), or which is located in a deepwater
448port identified in s. 403.021(9)(b) and owned by one of the
449foregoing governmental units, subject to a leasehold or other
450possessory interest of a nongovernmental lessee that is deemed
451to perform an aviation, airport, aerospace, maritime, or port
452purpose or operation shall be deemed an activity that serves a
453governmental, municipal, or public purpose. The use by a lessee,
454licensee, or management company of real property or a portion
455thereof as a convention center, visitor center, sports facility
456with permanent seating, concert hall, arena, stadium, park, or
457beach is deemed a use that serves a governmental, municipal, or
458public purpose or function when access to the property is open
459to the general public with or without a charge for admission. If
460property deeded to a municipality by the United States is
461subject to a requirement that the Federal Government, through a
462schedule established by the Secretary of the Interior, determine
463that the property is being maintained for public historic
464preservation, park, or recreational purposes and if those
465conditions are not met the property will revert back to the
466Federal Government, then such property shall be deemed to serve
467a municipal or public purpose. The term "governmental purpose"
468also includes a direct use of property on federal lands in
469connection with the Federal Government's Space Exploration
470Program or spaceport activities as defined in s. 212.02(22).
471Real property and tangible personal property owned by the
472Federal Government or the Florida Space Authority and used for
473defense and space exploration purposes or which is put to a use
474in support thereof shall be deemed to perform an essential
475national governmental purpose and shall be exempt. "Owned by the
476lessee" as used in this chapter does not include personal
477property, buildings, or other real property improvements used
478for the administration, operation, business offices and
479activities related specifically thereto in connection with the
480conduct of an aircraft full service fixed based operation which
481provides goods and services to the general aviation public in
482the promotion of air commerce provided that the real property is
483designated as an aviation area on an airport layout plan
484approved by the Federal Aviation Administration. For purposes of
485determination of "ownership," buildings and other real property
486improvements which will revert to the airport authority or other
487governmental unit upon expiration of the term of the lease shall
488be deemed "owned" by the governmental unit and not the lessee.
489Providing two-way telecommunications services to the public for
490hire by the use of a telecommunications facility, as defined in
491s. 364.02(15) s. 364.02(14), and for which a certificate is
492required under chapter 364 does not constitute an exempt use for
493purposes of s. 196.199, unless the telecommunications services
494are provided by the operator of a public-use airport, as defined
495in s. 332.004, for the operator's provision of
496telecommunications services for the airport or its tenants,
497concessionaires, or licensees, or unless the telecommunications
498services are provided by a public hospital.  However, property
499that is being used to provide such telecommunications services
500on or before October 1, 1997, shall remain exempt, but such
501exemption expires October 1, 2004.
502     Section 13.  Paragraph (b) of subsection (1) of section
503199.183, Florida Statutes, is amended to read:
504     199.183  Taxpayers exempt from annual and nonrecurring
505taxes.--
506     (1)  Intangible personal property owned by this state or
507any of its political subdivisions or municipalities shall be
508exempt from taxation under this chapter. This exemption does not
509apply to:
510     (b)  Property related to the provision of two-way
511telecommunications services to the public for hire by the use of
512a telecommunications facility, as defined in s. 364.02(15) s.
513364.02(14), and for which a certificate is required under
514chapter 364, when such service is provided by any county,
515municipality, or other political subdivision of the state. Any
516immunity of any political subdivision of the state or other
517entity of local government from taxation of the property used to
518provide telecommunication services that is taxed as a result of
519this paragraph is hereby waived. However, intangible personal
520property related to the provision of such telecommunications
521services provided by the operator of a public-use airport, as
522defined in s. 332.004, for the operator's provision of
523telecommunications services for the airport or its tenants,
524concessionaires, or licensees, and intangible personal property
525related to the provision of such telecommunications services
526provided by a public hospital, are exempt from taxation under
527this chapter.
528     Section 14.  Subsection (6) of section 212.08, Florida
529Statutes, is amended to read:
530     212.08  Sales, rental, use, consumption, distribution, and
531storage tax; specified exemptions.--The sale at retail, the
532rental, the use, the consumption, the distribution, and the
533storage to be used or consumed in this state of the following
534are hereby specifically exempt from the tax imposed by this
535chapter.
536     (6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are also
537exempt from the tax imposed by this chapter sales made to the
538United States Government, a state, or any county, municipality,
539or political subdivision of a state when payment is made
540directly to the dealer by the governmental entity. This
541exemption shall not inure to any transaction otherwise taxable
542under this chapter when payment is made by a government employee
543by any means, including, but not limited to, cash, check, or
544credit card when that employee is subsequently reimbursed by the
545governmental entity. This exemption does not include sales of
546tangible personal property made to contractors employed either
547directly or as agents of any such government or political
548subdivision thereof when such tangible personal property goes
549into or becomes a part of public works owned by such government
550or political subdivision. A determination whether a particular
551transaction is properly characterized as an exempt sale to a
552government entity or a taxable sale to a contractor shall be
553based on the substance of the transaction rather than the form
554in which the transaction is cast. The department shall adopt
555rules that give special consideration to factors that govern the
556status of the tangible personal property before its affixation
557to real property. In developing these rules, assumption of the
558risk of damage or loss is of paramount consideration in the
559determination. This exemption does not include sales, rental,
560use, consumption, or storage for use in any political
561subdivision or municipality in this state of machines and
562equipment and parts and accessories therefor used in the
563generation, transmission, or distribution of electrical energy
564by systems owned and operated by a political subdivision in this
565state for transmission or distribution expansion. Likewise
566exempt are charges for services rendered by radio and television
567stations, including line charges, talent fees, or license fees
568and charges for films, videotapes, and transcriptions used in
569producing radio or television broadcasts. The exemption provided
570in this subsection does not include sales, rental, use,
571consumption, or storage for use in any political subdivision or
572municipality in this state of machines and equipment and parts
573and accessories therefor used in providing two-way
574telecommunications services to the public for hire by the use of
575a telecommunications facility, as defined in s. 364.02(15) s.
576364.02(14), and for which a certificate is required under
577chapter 364, which facility is owned and operated by any county,
578municipality, or other political subdivision of the state.  Any
579immunity of any political subdivision of the state or other
580entity of local government from taxation of the property used to
581provide telecommunication services that is taxed as a result of
582this section is hereby waived.  However, the exemption provided
583in this subsection includes transactions taxable under this
584chapter which are for use by the operator of a public-use
585airport, as defined in s. 332.004, in providing such
586telecommunications services for the airport or its tenants,
587concessionaires, or licensees, or which are for use by a public
588hospital for the provision of such telecommunications services.
589     Section 15.  Subsection (8) of section 290.007, Florida
590Statutes, is amended to read:
591     290.007  State incentives available in enterprise
592zones.--The following incentives are provided by the state to
593encourage the revitalization of enterprise zones:
594     (8)  Notwithstanding any law to the contrary, the Public
595Service Commission may allow public utilities and
596telecommunications companies to grant discounts of up to 50
597percent on tariffed rates for services to small businesses
598located in an enterprise zone designated pursuant to s.
599290.0065. Such discounts may be granted for a period not to
600exceed 5 years. For purposes of this subsection, the term
601"public utility" has the same meaning as in s. 366.02(1) and the
602term "telecommunications company" has the same meaning as in s.
603364.02(14) s. 364.02(13).
604     Section 16.  Subsection (3) of section 350.0605, Florida
605Statutes, is amended to read:
606     350.0605  Former commissioners and employees;
607representation of clients before commission.--
608     (3)  For a period of 2 years following termination of
609service on the commission, a former member may not accept
610employment by or compensation from a business entity which,
611directly or indirectly, owns or controls a public utility
612regulated by the commission, from a public utility regulated by
613the commission, from a business entity which, directly or
614indirectly, is an affiliate or subsidiary of a public utility
615regulated by the commission or is an actual business competitor
616of a local exchange company or public utility regulated by the
617commission and is otherwise exempt from regulation by the
618commission under ss. 364.02(14) 364.02(13) and 366.02(1), or
619from a business entity or trade association that has been a
620party to a commission proceeding within the 2 years preceding
621the member's termination of service on the commission.  This
622subsection applies only to members of the Florida Public Service
623Commission who are appointed or reappointed after May 10, 1993.
624     Section 17.  Subsection (4) of section 364.602, Florida
625Statutes, is amended to read:
626     364.602  Definitions.--For purposes of this part:
627     (4)  "Originating party" means any person, firm,
628corporation, or other entity, including a telecommunications
629company or a billing clearinghouse, that provides any
630telecommunications service or information service to a customer
631or bills a customer through a billing party, except the term
632"originating party" does not include any entity specifically
633exempted from the definition of "telecommunications company" as
634provided in s. 364.02(14) s. 364.02(13).
635     Section 18.  Subsection (5) of section 489.103, Florida
636Statutes, is amended to read:
637     489.103  Exemptions.--This part does not apply to:
638     (5)  Public utilities, including special gas districts as
639defined in chapter 189, telecommunications companies as defined
640in s. 364.02(14) s. 364.02(13), and natural gas transmission
641companies as defined in s. 368.103(4), on construction,
642maintenance, and development work performed by their employees,
643which work, including, but not limited to, work on bridges,
644roads, streets, highways, or railroads, is incidental to their
645business. The board shall define, by rule, the term "incidental
646to their business" for purposes of this subsection.
647     Section 19.  Except as otherwise provided herein, this act
648shall take effect July 1, 2005.


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