HB 1649

1	A bill to be entitled
2	An act relating to telecommunications regulation; amending
3	s. 364.01, F.S.; providing that state laws governing
4	business and consumer protection be applied to
5	communications activities that are not regulated by the
6	commission; revising provisions governing the exclusive
7	jurisdiction of the commission; creating s. 364.011, F.S.;
8	specifying certain services that are exempt from oversight
9	by the commission; creating s. 364.012, F.S.; directing
10	the commission to maintain liaison with federal agencies;
11	providing that ch. 364, F.S., does not limit or modify
12	certain duties of a local exchange carrier; creating s.
13	364.013, F.S.; requiring that broadband service and voice-
14	over-Internet protocol be free of state regulation, except
15	as specifically provided; amending s. 364.02, F.S.;
16	defining the terms "broadband service" and "VoIP";
17	revising the definition of "service"; amending s.
18	364.0361, F.S.; prohibiting a local government from
19	regulating the provision of voice-over-Internet protocol;
20	amending s. 364.051, F.S.; providing that evidence of
21	damage caused by a tropical storm system constitutes a
22	compelling showing of changed circumstances to justify a
23	change in rates; revising procedures to recover certain
24	costs and expenses; providing conditions to qualify for
25	filing a petition for recovery; providing for the
26	commission to order a line-item charge for a certain
27	period to recover costs and expenses of such damage;
28	limiting amount of such charge; providing for verification
29	of amounts collected; limiting the number of petitions for
30	recovery of costs and expenses; amending s. 364.10, F.S.;
31	revising the income threshold for eligibility for Lifeline
32	service; amending s. 364.335, F.S.; increasing the maximum
33	allowable filing fee for certification of
34	telecommunications carriers; amending s. 364.336, F.S.;
35	providing minimum regulatory assessment fees to be
36	assessed by rule of the commission; repealing s. 364.502,
37	F.S., relating to video programming services; amending ss.
38	196.012, 199.183, 212.08, 290.007, 350.0605, 364.602, and
39	489.103, F.S.; conforming cross references; providing for
40	construction of the act; providing effective dates.
41
42	Be It Enacted by the Legislature of the State of Florida:
43
44	Section 1.  Subsection (3) and paragraphs (d) and (f) of
45	subsection (4) of section 364.01, Florida Statutes, are amended
46	to read:
47	364.01  Powers of commission, legislative intent.--
48	(3)  Communications activities that are not regulated by
49	the Florida Public Service Commission, including, but not
50	limited to, VoIP, wireless, and broadband, are subject to this
51	state's generally applicable business regulation and deceptive
52	trade practices and consumer protection laws, as enforced by the
53	appropriate state authority or through actions in the judicial
54	system. This chapter does not limit the availability to any
55	party of any remedy or defense under state or federal antitrust
56	laws. The Legislature finds that the competitive provision of
57	telecommunications services, including local exchange
58	telecommunications service, is in the public interest and will
59	provide customers with freedom of choice, encourage the
60	introduction of new telecommunications service, encourage
61	technological innovation, and encourage investment in
62	telecommunications infrastructure. The Legislature further finds
63	that the transition from the monopoly provision of local
64	exchange service to the competitive provision thereof will
65	require appropriate regulatory oversight to protect consumers
66	and provide for the development of fair and effective
67	competition, but nothing in this chapter shall limit the
68	availability to any party of any remedy under state or federal
69	antitrust laws. The Legislature further finds that changes in
70	regulations allowing increased competition in telecommunications
71	services could provide the occasion for increases in the
72	telecommunications workforce; therefore, it is in the public
73	interest that competition in telecommunications services lead to
74	a situation that enhances the high-technological skills and the
75	economic status of the telecommunications workforce. The
76	Legislature further finds that the provision of voice-over-
77	Internet protocol (VOIP) free of unnecessary regulation,
78	regardless of the provider, is in the public interest.
79	(4)  The commission shall exercise its exclusive
80	jurisdiction in order to:
81	(d)  Promote competition by encouraging innovation and
82	investment in new entrants into telecommunications markets and
83	by allowing a transitional period in which new and emerging
84	technologies entrants are subject to a reduced lesser level of
85	regulatory oversight than local exchange telecommunications
86	companies.
87	(f)  Eliminate any rules or and/or regulations which will
88	delay or impair the transition to competition.
89	Section 2.  Section 364.011, Florida Statutes, is created
90	to read:
91	364.011  Exemptions from commission jurisdiction.--The
92	following services are exempt from oversight by the commission,
93	except to the extent delineated in this chapter or specifically
94	authorized by federal law:
95	(1)  Intrastate interexchange telecommunications services.
96	(2)  Broadband services, regardless of the provider,
97	platform, or protocol.
98	(3)  VoIP.
99	(4)  Wireless telecommunications, including commercial
100	mobile radio services.
101	Section 3.  Section 364.012, Florida Statutes, is created
102	to read:
103	364.012  Consistency with federal law.--
104	(1)  In order to promote commission coordination with
105	federal policymakers and regulatory agencies, the commission
106	shall maintain continuous liaisons with appropriate federal
107	agencies whose policy decisions and rulemaking authority affect
108	those telecommunications companies over which the commission has
109	jurisdiction. The commission is encouraged to participate in the
110	proceedings of federal agencies in cases in which the state's
111	consumers may be affected and to convey the commission's policy
112	positions and information requirements in order to achieve
113	greater efficiency in regulation.
114	(2)  This chapter does not limit or modify the duties of a
115	local exchange carrier to provide unbundled access to network
116	elements or the commission's authority to arbitrate and enforce
117	interconnection agreements to the extent that those elements are
118	required under 47 U.S.C. ss. 251 and 252, and under any
119	regulations issued by the Federal Communications Commission at
120	rates determined in accordance with the standards established by
121	the Federal Communications Commission pursuant to 47 C.F.R. ss.
122	51.503-51.513, inclusive of any successor regulation or
123	successor forbearance of regulation.
124	Section 4.  Section 364.013, Florida Statutes, is created
125	to read:
126	364.013  Emerging and advanced services.--Broadband service
127	and the provision of voice-over-Internet protocol (VoIP) shall
128	be free of state regulation, except as delineated in this
129	chapter or as specifically authorized by federal law, regardless
130	of the provider, platform, or protocol.
131	Section 5.  Section 364.02, Florida Statutes, is amended to
132	read:
133	364.02  Definitions.--As used in this chapter:
134	(1)  "Basic local telecommunications service" means
135	voice-grade, flat-rate residential, and flat-rate single-line
136	business local exchange services which provide dial tone, local
137	usage necessary to place unlimited calls within a local exchange
138	area, dual tone multifrequency dialing, and access to the
139	following:  emergency services such as "911," all locally
140	available interexchange companies, directory assistance,
141	operator services, relay services, and an alphabetical directory
142	listing. For a local exchange telecommunications company, such
143	term shall include any extended area service routes, and
144	extended calling service in existence or ordered by the
145	commission on or before July 1, 1995.
146	(2)  "Broadband service" means any service that consists of
147	or includes the offering of the capability to transmit or
148	receive information at a rate that is not less than 200 kilobits
149	per second and either:
150	(a)  Is used to provide access to the Internet; or
151	(b)  Provides computer processing, information storage,
152	information content, or protocol conversion in combination with
153	such service.
154
155	The definition of broadband service does not include any
156	intrastate telecommunications services that have been tariffed
157	with the commission on or before January 1, 2005.
158	(3)(2)  "Commercial mobile radio service provider" means a
159	commercial mobile radio service provider as defined by and
160	pursuant to 47 U.S.C. ss. 153(n) and 332(d).
161	(4)(3)  "Commission" means the Florida Public Service
162	Commission.
163	(5)(4)  "Competitive local exchange telecommunications
164	company" means any company certificated by the commission to
165	provide local exchange telecommunications services in this state
166	on or after July 1, 1995.
167	(6)(5)  "Corporation" includes a corporation, company,
168	association, or joint stock association.
169	(7)(6)  "Intrastate interexchange telecommunications
170	company" means any entity that provides intrastate interexchange
171	telecommunications services.
172	(8)(7)  "Local exchange telecommunications company" means
173	any company certificated by the commission to provide local
174	exchange telecommunications service in this state on or before
175	June 30, 1995.
176	(9)(8)  "Monopoly service" means a telecommunications
177	service for which there is no effective competition, either in
178	fact or by operation of law.
179	(10)(9)  "Nonbasic service" means any telecommunications
180	service provided by a local exchange telecommunications company
181	other than a basic local telecommunications service, a local
182	interconnection arrangement described in s. 364.16, or a network
183	access service described in s. 364.163.
184	(11)(10)  "Operator service" includes, but is not limited
185	to, billing or completion of third-party, person-to-person,
186	collect, or calling card or credit card calls through the use of
187	a live operator or automated equipment.
188	(12)(11)  "Operator service provider" means a person who
189	furnishes operator service through a call aggregator.
190	(13)(12)  "Service" is to be construed in its broadest and
191	most inclusive sense. The term "service" does not include
192	broadband service or voice-over-Internet protocol service for
193	purposes of regulation by the commission. Nothing herein shall
194	affect the rights and obligations of any entity related to the
195	payment of switched network access rates or other intercarrier
196	compensation, if any, related to voice-over-Internet protocol
197	service. Notwithstanding the provisions of s. 364.013 and the
198	exemption of services pursuant to this subsection, the
199	commission may arbitrate, enforce, or approve interconnection
200	agreements and resolve disputes as provided by 47 U.S.C. ss. 251
201	and 252 or any other applicable federal law or regulation. With
202	respect to the services exempted in this subsection, regardless
203	of the technology, the duties of a local exchange
204	telecommunications company are only those that the company is
205	obligated to extend or provide under applicable federal law and
206	regulations.
207	(14)(13)  "Telecommunications company" includes every
208	corporation, partnership, and person and their lessees,
209	trustees, or receivers appointed by any court whatsoever, and
210	every political subdivision in the state, offering two-way
211	telecommunications service to the public for hire within this
212	state by the use of a telecommunications facility. The term
213	"telecommunications company" does not include:
214	(a)  An entity which provides a telecommunications facility
215	exclusively to a certificated telecommunications company;
216	(b)  An entity which provides a telecommunications facility
217	exclusively to a company which is excluded from the definition
218	of a telecommunications company under this subsection;
219	(c)  A commercial mobile radio service provider;
220	(d)  A facsimile transmission service;
221	(e)  A private computer data network company not offering
222	service to the public for hire;
223	(f)  A cable television company providing cable service as
224	defined in 47 U.S.C. s. 522; or
225	(g)  An intrastate interexchange telecommunications
226	company.
227
228	However, each commercial mobile radio service provider and each
229	intrastate interexchange telecommunications company shall
230	continue to be liable for any taxes imposed pursuant to chapters
231	202, 203 and 212 and any fees assessed pursuant to ss. 364.025
232	and 364.336. Each intrastate interexchange telecommunications
233	company shall continue to be subject to ss. 364.04, 364.10(3)(a)
234	and (d), 364.163, 364.285, 364.501, 364.603, and 364.604, shall
235	provide the commission with such current information as the
236	commission deems necessary to contact and communicate with the
237	company, shall continue to pay intrastate switched network
238	access rates or other intercarrier compensation to the local
239	exchange telecommunications company or the competitive local
240	exchange telecommunications company for the origination and
241	termination of interexchange telecommunications service, and
242	shall reduce its intrastate long distance toll rates in
243	accordance with s. 364.163(2).
244	(15)(14)  "Telecommunications facility" includes real
245	estate, easements, apparatus, property, and routes used and
246	operated to provide two-way telecommunications service to the
247	public for hire within this state.
248	(16)  "VoIP" means the voice-over-Internet protocol as that
249	term is defined in federal law.
250	Section 6.  Section 364.0361, Florida Statutes, is amended
251	to read:
252	364.0361  Local government authority; nondiscriminatory
253	exercise.--A local government shall treat each
254	telecommunications company in a nondiscriminatory manner when
255	exercising its authority to grant franchises to a
256	telecommunications company or to otherwise establish conditions
257	or compensation for the use of rights-of-way or other public
258	property by a telecommunications company. A local government may
259	not directly or indirectly regulate the terms and conditions,
260	including, but not limited to, the operating systems,
261	qualifications, services, service quality, service territory,
262	and prices, applicable to or in connection with the provision of
263	any voice-over-Internet protocol, regardless of the provider,
264	platform, or protocol, or any broadband or information service.
265	This section does not relieve a provider from any obligations
266	under s. 166.046 or s. 337.401.
267	Section 7.  Effective upon this act becoming a law,
268	subsection (4) of section 364.051, Florida Statutes, is amended
269	to read:
270	364.051  Price regulation.--
271	(4)(a)  Notwithstanding the provisions of subsection (2),
272	any local exchange telecommunications company that believes
273	circumstances have changed substantially to justify any increase
274	in the rates for basic local telecommunications services may
275	petition the commission for a rate increase, but the commission
276	shall grant the such petition only after an opportunity for a
277	hearing and a compelling showing of changed circumstances. The
278	costs and expenses of any government program or project required
279	in part II may shall not be recovered under this subsection
280	unless the such costs and expenses are incurred in the absence
281	of a bid and subject to carrier-of-last-resort obligations as
282	provided for in part II. The commission shall act upon the any
283	such petition within 120 days after of its filing.
284	(b)  For purposes of this section, evidence of damage to
285	the lines, plants, or facilities of a local exchange
286	telecommunications company that is subject to carrier-of-last-
287	resort obligations, which damage is the result of a tropical
288	system occurring after June 1, 2005, and named by the National
289	Hurricane Center, constitutes a compelling showing of changed
290	circumstances.
291	1.  A company may file a petition to recover its intrastate
292	costs and expenses relating to repairing, restoring, or
293	replacing the lines, plants, or facilities damaged by a named
294	tropical system.
295	2.  The commission shall verify the intrastate costs and
296	expenses submitted by the company in support of its petition.
297	3.  The company must show and the commission shall
298	determine whether the intrastate costs and expenses are
299	reasonable under the circumstances for the named tropical
300	system.
301	4.  A company having a storm reserve may recover tropical-
302	system-related costs and expenses from its customers only in
303	excess of any amount available in the storm reserve fund.
304	5.  The commission may determine the amount of any increase
305	that the company may charge its customers, but the charge per
306	line item may not exceed 50 cents per month per customer line
307	for a period of not more than 12 months.
308	6.  The commission may order the company to add an equal
309	line-item charge per access line to the billing statement of the
310	company's retail basic local telecommunications service
311	customers, its retail nonbasic telecommunications service
312	customers, and, to the extent the commission determines
313	appropriate, its wholesale loop unbundled network element
314	customers. At the end of the collection period, the commission
315	shall verify that the collected amount does not exceed the
316	amount authorized by the order. If collections exceed the
317	ordered amount, the commission shall order the company to refund
318	the excess.
319	7.  In order to qualify for filing a petition under this
320	paragraph, a company with 1 million or more access lines, but
321	fewer than 3 million access lines, must have tropical-system-
322	related costs and expenses exceeding $1.5 million, and a company
323	with 3 million or more access lines must have tropical-system-
324	related costs and expenses of $5 million or more. A company with
325	fewer than 1 million access lines is not required to meet a
326	minimum damage threshold in order to qualify to file a petition
327	under this paragraph.
328	8.  A company may file only one petition for storm recovery
329	in any 12-month period for the previous storm season, but the
330	application may cover damages from more than one named tropical
331	system.
332
333	This paragraph is not intended to adversely affect the
334	commission's consideration of any petition for an increase in
335	basic rates to recover costs related to storm damage which was
336	filed before the effective date of this act.
337	Section 8.  Paragraph (a) of subsection (3) of section
338	364.10, Florida Statutes, is amended to read:
339	364.10  Undue advantage to person or locality prohibited;
340	Lifeline service.--
341	(3)(a)  Effective September 1, 2003, any local exchange
342	telecommunications company authorized by the commission to
343	reduce its switched network access rate pursuant to s. 364.164
344	shall have tariffed and shall provide Lifeline service to any
345	otherwise eligible customer or potential customer who meets an
346	income eligibility test at 135 125 percent or less of the
347	federal poverty income guidelines for Lifeline customers. Such a
348	test for eligibility must augment, rather than replace, the
349	eligibility standards established by federal law and based on
350	participation in certain low-income assistance programs. Each
351	intrastate interexchange telecommunications company shall,
352	effective September 1, 2003, file a tariff providing at a
353	minimum the intrastate interexchange telecommunications
354	carrier's current Lifeline benefits and exemptions to Lifeline
355	customers who meet the income eligibility test set forth in this
356	subsection. The Office of Public Counsel shall certify and
357	maintain claims submitted by a customer for eligibility under
358	the income test authorized by this subsection.
359	Section 9.  Paragraph (c) of subsection (1) of section
360	364.335, Florida Statutes, is amended to read:
361	364.335  Application for certificate.--
362	(1)  Each applicant for a certificate shall:
363	(c)  File the application fee required by the commission in
364	an amount not to exceed $500 $250. Such fees shall be deposited
365	in accordance with s. 350.113.
366	Section 10.  Section 364.336, Florida Statutes, is amended
367	to read:
368	364.336  Regulatory assessment fees.--Notwithstanding any
369	provisions of law to the contrary, each telecommunications
370	company licensed or operating under this chapter, for any part
371	of the preceding 6-month period, shall pay to the commission,
372	within 30 days following the end of each 6-month period, a fee
373	that may not exceed 0.25 percent annually of its gross operating
374	revenues derived from intrastate business, except, for purposes
375	of this section and the fee specified in s. 350.113(3), any
376	amount paid to another telecommunications company for the use of
377	any telecommunications network shall be deducted from the gross
378	operating revenue for purposes of computing the fee due. The
379	commission shall by rule assess a minimum fee in an amount up to
380	$1,000. The minimum amount may be different depending on the
381	type of service provided by the telecommunications company and
382	shall, to the extent practicable, be related to the cost of
383	regulating such type of company. Differences, if any, between
384	the amount paid in any 6-month period and the amount actually
385	determined by the commission to be due shall, upon motion by the
386	commission, be immediately paid or refunded. Fees under this
387	section may not be less than $50 annually. Such fees shall be
388	deposited in accordance with s. 350.113. The commission may by
389	rule establish criteria for payment of the regulatory assessment
390	fee on an annual basis rather than on a semiannual basis.
391	Section 11.  Section 364.502, Florida Statutes, is
392	repealed.
393	Section 12.  Subsection (6) of section 196.012, Florida
394	Statutes, is amended to read:
395	196.012  Definitions.--For the purpose of this chapter, the
396	following terms are defined as follows, except where the context
397	clearly indicates otherwise:
398	(6)  Governmental, municipal, or public purpose or function
399	shall be deemed to be served or performed when the lessee under
400	any leasehold interest created in property of the United States,
401	the state or any of its political subdivisions, or any
402	municipality, agency, special district, authority, or other
403	public body corporate of the state is demonstrated to perform a
404	function or serve a governmental purpose which could properly be
405	performed or served by an appropriate governmental unit or which
406	is demonstrated to perform a function or serve a purpose which
407	would otherwise be a valid subject for the allocation of public
408	funds. For purposes of the preceding sentence, an activity
409	undertaken by a lessee which is permitted under the terms of its
410	lease of real property designated as an aviation area on an
411	airport layout plan which has been approved by the Federal
412	Aviation Administration and which real property is used for the
413	administration, operation, business offices and activities
414	related specifically thereto in connection with the conduct of
415	an aircraft full service fixed base operation which provides
416	goods and services to the general aviation public in the
417	promotion of air commerce shall be deemed an activity which
418	serves a governmental, municipal, or public purpose or function.
419	Any activity undertaken by a lessee which is permitted under the
420	terms of its lease of real property designated as a public
421	airport as defined in s. 332.004(14) by municipalities,
422	agencies, special districts, authorities, or other public bodies
423	corporate and public bodies politic of the state, a spaceport as
424	defined in s. 331.303(19), or which is located in a deepwater
425	port identified in s. 403.021(9)(b) and owned by one of the
426	foregoing governmental units, subject to a leasehold or other
427	possessory interest of a nongovernmental lessee that is deemed
428	to perform an aviation, airport, aerospace, maritime, or port
429	purpose or operation shall be deemed an activity that serves a
430	governmental, municipal, or public purpose. The use by a lessee,
431	licensee, or management company of real property or a portion
432	thereof as a convention center, visitor center, sports facility
433	with permanent seating, concert hall, arena, stadium, park, or
434	beach is deemed a use that serves a governmental, municipal, or
435	public purpose or function when access to the property is open
436	to the general public with or without a charge for admission. If
437	property deeded to a municipality by the United States is
438	subject to a requirement that the Federal Government, through a
439	schedule established by the Secretary of the Interior, determine
440	that the property is being maintained for public historic
441	preservation, park, or recreational purposes and if those
442	conditions are not met the property will revert back to the
443	Federal Government, then such property shall be deemed to serve
444	a municipal or public purpose. The term "governmental purpose"
445	also includes a direct use of property on federal lands in
446	connection with the Federal Government's Space Exploration
447	Program or spaceport activities as defined in s. 212.02(22).
448	Real property and tangible personal property owned by the
449	Federal Government or the Florida Space Authority and used for
450	defense and space exploration purposes or which is put to a use
451	in support thereof shall be deemed to perform an essential
452	national governmental purpose and shall be exempt. "Owned by the
453	lessee" as used in this chapter does not include personal
454	property, buildings, or other real property improvements used
455	for the administration, operation, business offices and
456	activities related specifically thereto in connection with the
457	conduct of an aircraft full service fixed based operation which
458	provides goods and services to the general aviation public in
459	the promotion of air commerce provided that the real property is
460	designated as an aviation area on an airport layout plan
461	approved by the Federal Aviation Administration. For purposes of
462	determination of "ownership," buildings and other real property
463	improvements which will revert to the airport authority or other
464	governmental unit upon expiration of the term of the lease shall
465	be deemed "owned" by the governmental unit and not the lessee.
466	Providing two-way telecommunications services to the public for
467	hire by the use of a telecommunications facility, as defined in
468	s. 364.02(15) s. 364.02(14), and for which a certificate is
469	required under chapter 364 does not constitute an exempt use for
470	purposes of s. 196.199, unless the telecommunications services
471	are provided by the operator of a public-use airport, as defined
472	in s. 332.004, for the operator's provision of
473	telecommunications services for the airport or its tenants,
474	concessionaires, or licensees, or unless the telecommunications
475	services are provided by a public hospital.  However, property
476	that is being used to provide such telecommunications services
477	on or before October 1, 1997, shall remain exempt, but such
478	exemption expires October 1, 2004.
479	Section 13.  Paragraph (b) of subsection (1) of section
480	199.183, Florida Statutes, is amended to read:
481	199.183  Taxpayers exempt from annual and nonrecurring
482	taxes.--
483	(1)  Intangible personal property owned by this state or
484	any of its political subdivisions or municipalities shall be
485	exempt from taxation under this chapter. This exemption does not
486	apply to:
487	(b)  Property related to the provision of two-way
488	telecommunications services to the public for hire by the use of
489	a telecommunications facility, as defined in s. 364.02(15) s.
490	364.02(14), and for which a certificate is required under
491	chapter 364, when such service is provided by any county,
492	municipality, or other political subdivision of the state. Any
493	immunity of any political subdivision of the state or other
494	entity of local government from taxation of the property used to
495	provide telecommunication services that is taxed as a result of
496	this paragraph is hereby waived. However, intangible personal
497	property related to the provision of such telecommunications
498	services provided by the operator of a public-use airport, as
499	defined in s. 332.004, for the operator's provision of
500	telecommunications services for the airport or its tenants,
501	concessionaires, or licensees, and intangible personal property
502	related to the provision of such telecommunications services
503	provided by a public hospital, are exempt from taxation under
504	this chapter.
505	Section 14.  Subsection (6) of section 212.08, Florida
506	Statutes, is amended to read:
507	212.08  Sales, rental, use, consumption, distribution, and
508	storage tax; specified exemptions.--The sale at retail, the
509	rental, the use, the consumption, the distribution, and the
510	storage to be used or consumed in this state of the following
511	are hereby specifically exempt from the tax imposed by this
512	chapter.
513	(6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are also
514	exempt from the tax imposed by this chapter sales made to the
515	United States Government, a state, or any county, municipality,
516	or political subdivision of a state when payment is made
517	directly to the dealer by the governmental entity. This
518	exemption shall not inure to any transaction otherwise taxable
519	under this chapter when payment is made by a government employee
520	by any means, including, but not limited to, cash, check, or
521	credit card when that employee is subsequently reimbursed by the
522	governmental entity. This exemption does not include sales of
523	tangible personal property made to contractors employed either
524	directly or as agents of any such government or political
525	subdivision thereof when such tangible personal property goes
526	into or becomes a part of public works owned by such government
527	or political subdivision. A determination whether a particular
528	transaction is properly characterized as an exempt sale to a
529	government entity or a taxable sale to a contractor shall be
530	based on the substance of the transaction rather than the form
531	in which the transaction is cast. The department shall adopt
532	rules that give special consideration to factors that govern the
533	status of the tangible personal property before its affixation
534	to real property. In developing these rules, assumption of the
535	risk of damage or loss is of paramount consideration in the
536	determination. This exemption does not include sales, rental,
537	use, consumption, or storage for use in any political
538	subdivision or municipality in this state of machines and
539	equipment and parts and accessories therefor used in the
540	generation, transmission, or distribution of electrical energy
541	by systems owned and operated by a political subdivision in this
542	state for transmission or distribution expansion. Likewise
543	exempt are charges for services rendered by radio and television
544	stations, including line charges, talent fees, or license fees
545	and charges for films, videotapes, and transcriptions used in
546	producing radio or television broadcasts. The exemption provided
547	in this subsection does not include sales, rental, use,
548	consumption, or storage for use in any political subdivision or
549	municipality in this state of machines and equipment and parts
550	and accessories therefor used in providing two-way
551	telecommunications services to the public for hire by the use of
552	a telecommunications facility, as defined in s. 364.02(15) s.
553	364.02(14), and for which a certificate is required under
554	chapter 364, which facility is owned and operated by any county,
555	municipality, or other political subdivision of the state.  Any
556	immunity of any political subdivision of the state or other
557	entity of local government from taxation of the property used to
558	provide telecommunication services that is taxed as a result of
559	this section is hereby waived.  However, the exemption provided
560	in this subsection includes transactions taxable under this
561	chapter which are for use by the operator of a public-use
562	airport, as defined in s. 332.004, in providing such
563	telecommunications services for the airport or its tenants,
564	concessionaires, or licensees, or which are for use by a public
565	hospital for the provision of such telecommunications services.
566	Section 15.  Subsection (8) of section 290.007, Florida
567	Statutes, is amended to read:
568	290.007  State incentives available in enterprise
569	zones.--The following incentives are provided by the state to
570	encourage the revitalization of enterprise zones:
571	(8)  Notwithstanding any law to the contrary, the Public
572	Service Commission may allow public utilities and
573	telecommunications companies to grant discounts of up to 50
574	percent on tariffed rates for services to small businesses
575	located in an enterprise zone designated pursuant to s.
576	290.0065. Such discounts may be granted for a period not to
577	exceed 5 years. For purposes of this subsection, the term
578	"public utility" has the same meaning as in s. 366.02(1) and the
579	term "telecommunications company" has the same meaning as in s.
580	364.02(14) s. 364.02(13).
581	Section 16.  Subsection (3) of section 350.0605, Florida
582	Statutes, is amended to read:
583	350.0605  Former commissioners and employees;
584	representation of clients before commission.--
585	(3)  For a period of 2 years following termination of
586	service on the commission, a former member may not accept
587	employment by or compensation from a business entity which,
588	directly or indirectly, owns or controls a public utility
589	regulated by the commission, from a public utility regulated by
590	the commission, from a business entity which, directly or
591	indirectly, is an affiliate or subsidiary of a public utility
592	regulated by the commission or is an actual business competitor
593	of a local exchange company or public utility regulated by the
594	commission and is otherwise exempt from regulation by the
595	commission under ss. 364.02(14) 364.02(13) and 366.02(1), or
596	from a business entity or trade association that has been a
597	party to a commission proceeding within the 2 years preceding
598	the member's termination of service on the commission.  This
599	subsection applies only to members of the Florida Public Service
600	Commission who are appointed or reappointed after May 10, 1993.
601	Section 17.  Subsection (4) of section 364.602, Florida
602	Statutes, is amended to read:
603	364.602  Definitions.--For purposes of this part:
604	(4)  "Originating party" means any person, firm,
605	corporation, or other entity, including a telecommunications
606	company or a billing clearinghouse, that provides any
607	telecommunications service or information service to a customer
608	or bills a customer through a billing party, except the term
609	"originating party" does not include any entity specifically
610	exempted from the definition of "telecommunications company" as
611	provided in s. 364.02(14) s. 364.02(13).
612	Section 18.  Subsection (5) of section 489.103, Florida
613	Statutes, is amended to read:
614	489.103  Exemptions.--This part does not apply to:
615	(5)  Public utilities, including special gas districts as
616	defined in chapter 189, telecommunications companies as defined
617	in s. 364.02(14) s. 364.02(13), and natural gas transmission
618	companies as defined in s. 368.103(4), on construction,
619	maintenance, and development work performed by their employees,
620	which work, including, but not limited to, work on bridges,
621	roads, streets, highways, or railroads, is incidental to their
622	business. The board shall define, by rule, the term "incidental
623	to their business" for purposes of this subsection.
624	Section 19.  Nothing in this act shall be construed to
625	limit the rights of local government or the duties of providers
626	of cable service to comply with any and all requirements of
627	federal, state, or local law, including, but not limited to, 47
628	U.S.C. 541 and ss. 166.046 and 337.401, Florida Statutes.
629	Section 20.  Except as otherwise provided herein, this act
630	shall take effect July 1, 2005.

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