HB 1465

1	A bill to be entitled
2	An act relating to telecommunications companies; creating
3	the "Consumer Choice and Protection Act"; amending s.
4	364.01, F.S.; providing that it is the intent of the
5	Legislature that the Public Service Commission not
6	regulate Internet protocol-enabled service, including
7	voice-over-Internet service; amending s. 364.02, F.S.;
8	redefining the terms "basic local telecommunications
9	service," "nonbasic service," and "telecommunications
10	company" and defining the term "Internet protocol-enabled
11	service"; amending ss. 364.011 and 364.013, F.S.;
12	exempting Internet protocol-enabled services from the
13	regulatory jurisdiction of the Public Service Commission;
14	amending s. 364.04, F.S.; requiring each
15	telecommunications company to publish through electronic
16	or physical media the company's schedules showing its
17	rates, tolls, rentals, contracts, and charges; authorizing
18	a telecommunications company to file the published
19	schedules with the Public Service Commission or to publish
20	the schedules through other reasonably publicly accessible
21	means, including on a website; deleting standards for
22	printing schedules and notices; amending s. 364.051, F.S.;
23	removing a limitation on eligibility to request an
24	increase in basic rates due to storm damage; deleting
25	provisions relating to rate increases for nonbasic
26	services; authorizing a telecommunications company to
27	change the price of a nonbasic service with 1 day's
28	notice; amending s. 364.08, F.S.; prohibiting a
29	telecommunications company from charging or receiving
30	compensation for any service other than for the charge
31	applicable to the service as specified in its schedule on
32	file or otherwise published; providing an exception for
33	employee concessions; amending s. 364.10, F.S.; providing
34	the conditions that require a telecommunications carrier
35	to provide Lifeline services to eligible customers;
36	amending s. 364.15, F.S.; requiring that the Public
37	Service Commission order only those repairs and
38	improvements to telecommunications facilities which are
39	authorized under law; amending s. 364.33, F.S.; providing
40	that a certificate of necessity may be transferred from a
41	person holding a certificate to another, and a person
42	holding a certificate may acquire ownership or control of
43	a telecommunications facility without prior approval of
44	the commission; amending ss. 364.335 and 364.345, F.S.;
45	conforming provisions to changes made in the act; amending
46	s. 364.3376, F.S.; requiring providers of telephone
47	operator services to comply with certain enumerated
48	criteria; requiring the operator services to bill for
49	services in accordance with published schedules; amending
50	s. 364.3382, F.S.; requiring each local exchange
51	telecommunications company to advise each residential
52	customer of the least-cost service available to that
53	customer when the residential customer initially requests
54	basic local telecommunications service; repealing s.
55	364.09, F.S., relating to the illegal giving of rebates or
56	special rates by a telecommunications company; amending
57	ss. 196.012, 199.183, 212.08, 290.007, 350.0605, 364.059,
58	364.105, 364.602, and 489.103, F.S.; conforming cross-
59	references; providing an effective date.
60
61	Be It Enacted by the Legislature of the State of Florida:
62
63	Section 1.  This act may be cited as the "Consumer Choice
64	and Protection Act."
65	Section 2.  Subsection (3) of section 364.01, Florida
66	Statutes, is amended to read:
67	364.01  Powers of commission, legislative intent.--
68	(3)  Communications activities that are not regulated by
69	the Florida Public Service Commission, including, but not
70	limited to, Internet protocol-enabled service such as VoIP,
71	wireless, and broadband, are subject to this state's generally
72	applicable business regulation and deceptive trade practices and
73	consumer protection laws, as enforced by the appropriate state
74	authority or through actions in the judicial system. This
75	chapter does not limit the availability to any party of any
76	remedy or defense under state or federal antitrust laws. The
77	Legislature finds that the competitive provision of
78	telecommunications services, including local exchange
79	telecommunications service, is in the public interest and will
80	provide customers with freedom of choice, encourage the
81	introduction of new telecommunications service, encourage
82	technological innovation, and encourage investment in
83	telecommunications infrastructure. The Legislature further finds
84	that the transition from the monopoly provision of local
85	exchange service to the competitive provision thereof will
86	require appropriate regulatory oversight to protect consumers
87	and provide for the development of fair and effective
88	competition, but nothing in this chapter shall limit the
89	availability to any party of any remedy under state or federal
90	antitrust laws. The Legislature further finds that changes in
91	regulations allowing increased competition in telecommunications
92	services could provide the occasion for increases in the
93	telecommunications workforce; therefore, it is in the public
94	interest that competition in telecommunications services lead to
95	a situation that enhances the high-technological skills and the
96	economic status of the telecommunications workforce. The
97	Legislature further finds that the provision of Internet
98	protocol-enabled service, including voice-over-Internet protocol
99	(VoIP) free of unnecessary regulation, regardless of the
100	provider, is in the public interest.
101	Section 3.  Section 364.02, Florida Statutes, is amended to
102	read:
103	364.02  Definitions.--As used in this chapter, the term:
104	(1)  "Basic local telecommunications service" means voice-
105	grade, single-line, flat-rate residential, and flat-rate single-
106	line business local exchange service that provides services
107	which provide dial tone, local usage necessary to place
108	unlimited calls within a local exchange area, dual tone
109	multifrequency dialing, and access to the following: emergency
110	services such as "911," all locally available interexchange
111	companies, directory assistance, operator services, relay
112	services, and an alphabetical directory listing. For a local
113	exchange telecommunications company, the term includes shall
114	include any extended area service routes, and extended calling
115	service in existence or ordered by the commission on or before
116	July 1, 1995.
117	(2)  "Broadband service" means any service that consists of
118	or includes the offering of the capability to transmit or
119	receive information at a rate that is not less than 200 kilobits
120	per second and either:
121	(a)  Is used to provide access to the Internet; or
122	(b)  Provides computer processing, information storage,
123	information content, or protocol conversion in combination with
124	the service.
125
126	The definition of broadband service does not include any
127	intrastate telecommunications services that have been tariffed
128	with the commission on or before January 1, 2005.
129	(3)  "Commercial mobile radio service provider" means a
130	commercial mobile radio service provider as defined by and
131	pursuant to 47 U.S.C. ss. 153(n) and 332(d).
132	(4)  "Commission" means the Florida Public Service
133	Commission.
134	(5)  "Competitive local exchange telecommunications
135	company" means any company certificated by the commission to
136	provide local exchange telecommunications services in this state
137	on or after July 1, 1995.
138	(6)  "Corporation" includes a corporation, company,
139	association, or joint stock association.
140	(7)  "Internet protocol-enabled service" means a service,
141	capability, functionality, or application that is provided using
142	Internet protocol or a successor protocol to enable an end user
143	to send or receive data, video, or voice communications in
144	Internet protocol format or a successor format.
145	(8)(7)  "Intrastate interexchange telecommunications
146	company" means any entity that provides intrastate interexchange
147	telecommunications services.
148	(9)(8)  "Local exchange telecommunications company" means
149	any company certificated by the commission to provide local
150	exchange telecommunications service in this state on or before
151	June 30, 1995.
152	(10)(9)  "Monopoly service" means a telecommunications
153	service for which there is no effective competition, either in
154	fact or by operation of law.
155	(11)(10)  "Nonbasic service" means any telecommunications
156	service provided by a local exchange telecommunications company
157	other than a basic local telecommunications service, a local
158	interconnection arrangement described in s. 364.16, or a network
159	access service described in s. 364.163. Any combination of basic
160	service along with a nonbasic service or an unregulated service
161	is nonbasic service.
162	(12)(11)  "Operator service" includes, but is not limited
163	to, billing or completion of third-party, person-to-person,
164	collect, or calling card or credit card calls through the use of
165	a live operator or automated equipment.
166	(13)(12)  "Operator service provider" means a person who
167	furnishes operator service through a call aggregator.
168	(14)(13)  "Service" is to be construed in its broadest and
169	most inclusive sense. The term "service" does not include
170	broadband service or Internet protocol-enabled service,
171	including voice-over-Internet protocol service for purposes of
172	regulation by the commission. Nothing herein shall affect the
173	rights and obligations of any entity related to the payment of
174	switched network access rates or other intercarrier
175	compensation, if any, related to Internet protocol-enabled
176	service, including voice-over-Internet protocol service.
177	Notwithstanding s. 364.013, and the exemption of services
178	pursuant to this subsection, the commission may arbitrate,
179	enforce, or approve interconnection agreements, and resolve
180	disputes as provided by 47 U.S.C. ss. 251 and 252, or any other
181	applicable federal law or regulation. With respect to the
182	services exempted in this subsection, regardless of the
183	technology, the duties of a local exchange telecommunications
184	company are only those that the company is obligated to extend
185	or provide under applicable federal law and regulations.
186	(15)(14)  "Telecommunications company" includes every
187	corporation, partnership, and person and their lessees,
188	trustees, or receivers appointed by any court whatsoever, and
189	every political subdivision in the state, offering two-way
190	telecommunications service to the public for hire within this
191	state by the use of a telecommunications facility. The term
192	"telecommunications company" does not include:
193	(a)  An entity that which provides a telecommunications
194	facility exclusively to a certificated telecommunications
195	company;
196	(b)  An entity that which provides a telecommunications
197	facility exclusively to a company which is excluded from the
198	definition of a telecommunications company under this
199	subsection;
200	(c)  A commercial mobile radio service provider;
201	(d)  A facsimile transmission service;
202	(e)  A private computer data network company not offering
203	service to the public for hire;
204	(f)  A cable television company providing cable service as
205	defined in 47 U.S.C. s. 522; or
206	(g)  An intrastate interexchange telecommunications
207	company.
208
209	However, each commercial mobile radio service provider and each
210	intrastate interexchange telecommunications company shall
211	continue to be liable for any taxes imposed under chapters 202,
212	203, and 212 and any fees assessed under s. 364.025. Each
213	intrastate interexchange telecommunications company shall
214	continue to be subject to ss. 364.04, 364.10(3)(a) and (c)(d),
215	364.163, 364.285, 364.336, 364.501, 364.603, and 364.604, shall
216	provide the commission with the current information as the
217	commission deems necessary to contact and communicate with the
218	company, and shall continue to pay intrastate switched network
219	access rates or other intercarrier compensation to the local
220	exchange telecommunications company or the competitive local
221	exchange telecommunications company for the origination and
222	termination of interexchange telecommunications service, and
223	shall reduce its intrastate long distance toll rates in
224	accordance with former s. 364.163(2).
225	(16)(15)  "Telecommunications facility" includes real
226	estate, easements, apparatus, property, and routes used and
227	operated to provide two-way telecommunications service to the
228	public for hire within this state.
229	(17)(16)  "VoIP" means the voice-over-Internet protocol as
230	that term is defined in federal law.
231	Section 4.  Section 364.011, Florida Statutes, is amended
232	to read:
233	364.011  Exemptions from commission jurisdiction.--The
234	following services are exempt from oversight by the commission,
235	except to the extent delineated in this chapter or specifically
236	authorized by federal law:
237	(1)  Intrastate interexchange telecommunications services.
238	(2)  Broadband services, regardless of the provider,
239	platform, or protocol.
240	(3)  Internet protocol-enabled services, including VoIP.
241	(4)  Wireless telecommunications, including commercial
242	mobile radio service providers.
243	Section 5.  Section 364.013, Florida Statutes, is amended
244	to read:
245	364.013  Emerging and advanced services.--Broadband service
246	and the provision of Internet protocol-enabled services,
247	including voice-over-Internet-protocol (VoIP), are exempt from
248	commission jurisdiction and shall be free of state regulation,
249	except as delineated in this chapter or as specifically
250	authorized by federal law, regardless of the provider, platform,
251	or protocol.
252	Section 6.  Section 364.04, Florida Statutes, is amended to
253	read:
254	364.04  Schedules of rates, tolls, rentals, contracts, and
255	charges; filing; public inspection.--
256	(1)  Upon order of the commission, Every telecommunications
257	company shall publish through electronic or physical media file
258	with the commission, and shall print and keep open to public
259	inspection, schedules showing the rates, tolls, rentals,
260	contracts, and charges of that company for service to be
261	performed within the state. A telecommunications company may, as
262	an option, file the published schedules with the commission or
263	publish its schedules through other reasonably publicly
264	accessible means, including on a website. A telecommunications
265	company that does not file its schedule with the commission
266	shall inform its customers where a customer may view the
267	telecommunications company's schedules.
268	(2)  The schedule, as printed and open to public
269	inspection, shall plainly state the places between which
270	telecommunications service will be rendered and shall also state
271	separately all charges and all privileges or facilities granted
272	or allowed and any rules or regulations or forms of contract
273	which may in anywise change, affect, or determine any of the
274	aggregate of the rates, tolls, rentals, or charges for the
275	service rendered.
276	(3)  A schedule shall be plainly printed in large type, and
277	a copy thereof shall be kept by every telecommunications company
278	readily accessible to, and for convenient inspection by, the
279	public at such places as may be designated by the commission.
280	Any such schedule shall be immediately produced by the
281	telecommunications company upon the demand of any person.
282	(4)  A notice printed in bold type and stating that such
283	schedules are on file and open to inspection by any person, the
284	places where the schedules are kept, and that the agent will
285	assist any person to determine from such schedules any rate,
286	toll, rental, rule, or regulation which is in force shall be
287	kept posted by every telecommunications company as the
288	commission designates.
289	Section 7.  Paragraph (c) of subsection (1), paragraph (c)
290	of subsection (2), paragraph (b) of subsection (4), and
291	subsection (5) of section 364.051, Florida Statutes, are amended
292	to read:
293	364.051  Price regulation.--
294	(1)  SCHEDULE.--Notwithstanding any other provisions of
295	this chapter, the following local exchange telecommunications
296	companies shall become subject to the price regulation described
297	in this section on the following dates:
298	(c)  Each company subject to this section is shall be
299	exempt from rate base, rate of return regulation and the
300	requirements of ss. 364.03, 364.035, 364.037, 364.05, 364.055,
301	364.14, 364.17, and 364.18, and 364.19.
302	(2)  BASIC LOCAL TELECOMMUNICATIONS SERVICE.--Price
303	regulation of basic local telecommunications service shall
304	consist of the following:
305	(c)  There shall be a flat-rate pricing option for basic
306	local telecommunications service services, and mandatory
307	measured service for basic local telecommunications service
308	services shall not be imposed.
309	(4)
310	(b)  For purposes of this section, evidence of damage
311	occurring to the lines, plants, or facilities of a local
312	exchange telecommunications company that is subject to the
313	carrier-of-last-resort obligations, which damage is the result
314	of a tropical system occurring after June 1, 2005, and named by
315	the National Hurricane Center, constitutes a compelling showing
316	of changed circumstances.
317	1.  A company may file a petition to recover its intrastate
318	costs and expenses relating to repairing, restoring, or
319	replacing the lines, plants, or facilities damaged by a named
320	tropical system.
321	2.  The commission shall verify the intrastate costs and
322	expenses submitted by the company in support of its petition.
323	3.  The company must show and the commission shall
324	determine whether the intrastate costs and expenses are
325	reasonable under the circumstances for the named tropical
326	system.
327	4.  A company having a storm-reserve fund may recover
328	tropical-system-related costs and expenses from its customers
329	only in excess of any amount available in the storm-reserve
330	fund.
331	5.  The commission may determine the amount of any increase
332	that the company may charge its customers, but the charge per
333	line item may not exceed 50 cents per month per customer line
334	for a period of not more than 12 months.
335	6.  The commission may order the company to add an equal
336	line-item charge per access line to the billing statement of the
337	company's retail basic local telecommunications service
338	customers, its retail nonbasic telecommunications service
339	customers, and, to the extent the commission determines
340	appropriate, its wholesale loop unbundled network element
341	customers. At the end of the collection period, the commission
342	shall verify that the collected amount does not exceed the
343	amount authorized by the order. If collections exceed the
344	ordered amount, the commission shall order the company to refund
345	the excess.
346	7.  In order to qualify for filing a petition under this
347	paragraph, a company with 1 million or more access lines, but
348	fewer than 3 million access lines, must have tropical-system-
349	related costs and expenses exceeding $1.5 million, and a company
350	with 3 million or more access lines must have tropical-system-
351	related costs and expenses of $5 million or more. A company with
352	fewer than 1 million access lines is not required to meet a
353	minimum damage threshold in order to qualify to file a petition
354	under this paragraph.
355	8.  A company may file only one petition for storm recovery
356	in any 12-month period for the previous storm season, but the
357	application may cover damages from more than one named tropical
358	system.
359
360	This paragraph is not intended to adversely affect the
361	commission's consideration of any petition for an increase in
362	basic rates to recover costs related to storm damage which was
363	filed before the effective date of this act.
364	(5)  NONBASIC SERVICES.--Price regulation of nonbasic
365	services shall consist of the following:
366	(a)  Each company subject to this section shall, at its
367	option, maintain tariffs with the commission or otherwise
368	publicly publish the terms, conditions, and rates for each of
369	its nonbasic services, and may set or change, on 1 day's notice,
370	the rate for each of its nonbasic services. For a company
371	electing to publicly publish the terms, conditions, and rates
372	for each of its nonbasic services, the commission may establish
373	guidelines for the publication. The guidelines may not require
374	more information than what is required to be filed with a
375	tariff. The price increase for any nonbasic service category
376	shall not exceed 6 percent within a 12-month period until there
377	is another provider providing local telecommunications service
378	in an exchange area at which time the price for any nonbasic
379	service category may be increased in an amount not to exceed 20
380	percent within a 12-month period, and the rate shall be
381	presumptively valid. However, for purposes of this subsection,
382	the prices of:
383	1.  A voice-grade, flat-rate, multi-line business local
384	exchange service, including multiple individual lines, centrex
385	lines, private branch exchange trunks, and any associated
386	hunting services, that provides dial tone and local usage
387	necessary to place a call within a local exchange calling area;
388	and
389	2.  Telecommunications services provided under contract
390	service arrangements to the SUNCOM Network, as defined in
391	chapter 282,
392
393	shall be capped at the rates in effect on July 1, 1995, and such
394	rates shall not be increased prior to January 1, 2000; provided,
395	however, that a petition to increase such rates may be filed
396	pursuant to subsection (4) utilizing the standards set forth
397	therein. There shall be a flat-rate pricing option for multi-
398	line business local exchange service, and mandatory measured
399	service for multi-line business local exchange service shall not
400	be imposed. Nothing contained in This chapter does not section
401	shall prevent the local exchange telecommunications company from
402	meeting offerings by any competitive provider of the same, or
403	functionally equivalent, nonbasic services in a specific
404	geographic market or to a specific customer by deaveraging the
405	price of any nonbasic service, packaging nonbasic services
406	together or with basic services, using volume discounts and term
407	discounts, and offering individual contracts. However, the local
408	exchange telecommunications company may shall not engage in any
409	anticompetitive act or practice or, nor unreasonably
410	discriminate among similarly situated customers.
411	(b)  The commission has shall have continuing regulatory
412	oversight of nonbasic services for purposes of ensuring
413	resolution of service complaints, preventing cross-subsidization
414	of nonbasic services with revenues from basic services, and
415	ensuring that all providers are treated fairly in the
416	telecommunications market. The cost standard for determining
417	cross-subsidization is whether the total revenue from a nonbasic
418	service is less than the total long-run incremental cost of the
419	service. Total long-run incremental cost means service-specific
420	volume and nonvolume-sensitive costs.
421	(c)  The price charged to a consumer for a nonbasic service
422	shall cover the direct costs of providing the service and shall,
423	to the extent a cost is not included in the direct cost, include
424	as an imputed cost the price charged by the company to
425	competitors for any monopoly component used by a competitor in
426	the provision of its same or functionally equivalent service.
427	Section 8.  Section 364.08, Florida Statutes, is amended to
428	read:
429	364.08  Unlawful to charge other than schedule rates or
430	charges; free service and reduced rates prohibited.--
431	(1)  A telecommunications company may not charge, demand,
432	collect, or receive for any service rendered or to be rendered
433	any compensation other than the charge applicable to such
434	service as specified in its schedule on file or otherwise
435	published and in effect at that time. A telecommunications
436	company may not refund or remit, directly or indirectly, any
437	portion of the rate or charge so specified or extend to any
438	person any advantage of contract or agreement or the benefit of
439	any rule or regulation or any privilege or facility not
440	regularly and uniformly extended to all persons under like
441	circumstances for like or substantially similar service.
442	(2)  A telecommunications company subject to this chapter
443	may provide not, directly or indirectly, give any free or
444	reduced service between points within this state. However, it
445	shall be lawful for the commission to authorize employee
446	concessions without approval by the commission if in the public
447	interest.
448	Section 9.  Subsection (3) of section 364.10, Florida
449	Statutes, is amended to read:
450	364.10  Undue advantage to person or locality prohibited;
451	Lifeline service.--
452	(3)(a)  Each Effective September 1, 2003, any local
453	exchange telecommunications company that has more than 1 million
454	access lines and that is designated as an eligible
455	telecommunications carrier authorized by the commission to
456	reduce its switched network access rate pursuant to s. 364.164
457	shall have tariffed and shall provide Lifeline service to any
458	otherwise eligible customer or potential customer who meets an
459	income eligibility test at 135 percent or less of the federal
460	poverty income guidelines for Lifeline customers. Such a test
461	for eligibility must augment, rather than replace, the
462	eligibility standards established by federal law and based on
463	participation in certain low-income assistance programs. Each
464	intrastate interexchange telecommunications company shall,
465	effective September 1, 2003, file or publish a schedule tariff
466	providing at a minimum the intrastate interexchange
467	telecommunications carrier's current Lifeline benefits and
468	exemptions to Lifeline customers who meet the income eligibility
469	test set forth in this subsection. The Office of Public Counsel
470	shall certify and maintain claims submitted by a customer for
471	eligibility under the income test authorized by this subsection.
472	(b)  Each eligible telecommunications carrier subject to
473	this subsection shall provide to each state and federal agency
474	providing benefits to persons eligible for Lifeline service
475	applications, brochures, pamphlets, or other materials that
476	inform the persons of their eligibility for Lifeline, and each
477	state agency providing the benefits shall furnish the materials
478	to affected persons at the time they apply for benefits.
479	(c)  Any local exchange telecommunications company customer
480	receiving Lifeline benefits shall not be subject to any
481	residential basic local telecommunications service rate
482	increases authorized by s. 364.164 until the local exchange
483	telecommunications company reaches parity as defined in s.
484	364.164(5) or until the customer no longer qualifies for the
485	Lifeline benefits established by this section or s. 364.105, or
486	unless otherwise determined by the commission upon petition by a
487	local exchange telecommunications company.
488	(c)(d)  An eligible telecommunications carrier may not
489	discontinue basic local exchange telephone service to a
490	subscriber who receives Lifeline service because of nonpayment
491	by the subscriber of charges for nonbasic services billed by the
492	telecommunications company, including long-distance service. A
493	subscriber who receives Lifeline service shall be required to
494	pay all applicable basic local exchange service fees, including
495	the subscriber line charge, E-911, telephone relay system
496	charges, and applicable state and federal taxes.
497	(d)(e)  An eligible telecommunications carrier may not
498	refuse to connect, reconnect, or provide Lifeline service
499	because of unpaid toll charges or nonbasic charges other than
500	basic local exchange service.
501	(e)(f)  An eligible telecommunications carrier may require
502	that payment arrangements be made for outstanding debt
503	associated with basic local exchange service, subscriber line
504	charges, E-911, telephone relay system charges, and applicable
505	state and federal taxes.
506	(f)(g)  An eligible telecommunications carrier may block a
507	Lifeline service subscriber's access to all long-distance
508	service, except for toll-free numbers, and may block the ability
509	to accept collect calls when the subscriber owes an outstanding
510	amount for long-distance service or amounts resulting from
511	collect calls. However, the eligible telecommunications carrier
512	may not impose a charge for blocking long-distance service. The
513	eligible telecommunications carrier shall remove the block at
514	the request of the subscriber without additional cost to the
515	subscriber upon payment of the outstanding amount. An eligible
516	telecommunications carrier may charge a service deposit before
517	removing the block.
518	(g)(h)1.  By December 31, 2007, each state agency that
519	provides benefits to persons eligible for Lifeline service shall
520	undertake, in cooperation with the Department of Children and
521	Family Services, the Department of Education, the commission,
522	the Office of Public Counsel, and telecommunications companies
523	providing Lifeline services, the development of procedures to
524	promote Lifeline participation.
525	2.  If any state agency determines that a person is
526	eligible for Lifeline services, the agency shall immediately
527	forward the information to the commission to ensure that the
528	person is automatically enrolled in the program with the
529	appropriate eligible telecommunications carrier. The state
530	agency shall include an option for an eligible customer to
531	choose not to subscribe to the Lifeline service. The Public
532	Service Commission and the Department of Children and Family
533	Services shall, no later than December 31, 2007, adopt rules
534	creating procedures to automatically enroll eligible customers
535	in Lifeline service.
536	3.  The commission, the Department of Children and Family
537	Services, and the Office of Public Counsel shall enter into a
538	memorandum of understanding establishing the respective duties
539	of the commission, the department, and the public counsel with
540	respect to the automatic enrollment procedures no later than
541	December 31, 2007.
542	(h)(i)  The commission shall report to the Governor, the
543	President of the Senate, and the Speaker of the House of
544	Representatives by December 31 each year on the number of
545	customers who are subscribing to Lifeline service and the
546	effectiveness of any procedures to promote participation.
547	(i)(j)  The commission shall adopt rules to administer this
548	section.
549	Section 10.  Section 364.15, Florida Statutes, is amended
550	to read:
551	364.15  Compelling repairs, improvements, changes,
552	additions, or extensions.--Whenever the commission finds, on its
553	own motion or upon complaint, that repairs or improvements to,
554	or changes in, any telecommunications facility ought reasonably
555	to be made, or that any additions or extensions should
556	reasonably be made to any telecommunications facility, in order
557	to promote the security or convenience of the public or
558	employees or in order to secure adequate service or facilities
559	for basic local telecommunications services consistent with the
560	requirements set forth in this chapter, the commission shall
561	make and serve an order directing that such repairs,
562	improvements, changes, additions, or extensions be made in the
563	manner to be specified in the order. This section authorizes the
564	commission to impose only those requirements that it is
565	otherwise authorized to impose under this chapter.
566	Section 11.  Section 364.33, Florida Statutes, is amended
567	to read:
568	364.33  Certificate of necessity prerequisite to
569	construction, operation, or control of telecommunications
570	facilities.--Except for a transfer of a certificate of necessity
571	from one person to another as provided in this section, a person
572	may not begin the construction or operation of any
573	telecommunications facility, or any extension thereof for the
574	purpose of providing telecommunications services to the public,
575	or acquire ownership or control thereof, in whatever manner,
576	including the acquisition, transfer, or assignment of majority
577	organizational control or controlling stock ownership, without
578	prior approval. A certificate of necessity may be transferred
579	from a person holding a certificate to another person holding a
580	certificate and a person holding a certificate may acquire
581	ownership or control of a telecommunications facility through
582	the acquisition, transfer, or assignment of majority
583	organizational control or controlling stock ownership of a
584	person holding a certificate without prior approval of the
585	commission by giving 60 days' written notice of the transfer or
586	change of control to the commission and affected customers. This
587	section does not require approval by the commission prior to the
588	construction, operation, or extension of a facility by a
589	certificated company within its certificated area nor in any way
590	limit the commission's ability to review the prudence of such
591	construction programs for ratemaking as provided under this
592	chapter.
593	Section 12.  Subsection (4) of section 364.335, Florida
594	Statutes, is amended to read:
595	364.335  Application for certificate.--
596	(4)  Except as provided in s. 364.33, revocation,
597	suspension, transfer, or amendment of a certificate shall be
598	subject to the provisions of this section; except that, when the
599	commission initiates the action, the commission shall furnish
600	notice to the appropriate local government and to the Public
601	Counsel.
602	Section 13.  Section 364.3376, Florida Statutes, is amended
603	to read:
604	364.3376  Operator services.--
605	(1)(a)  A person may not provide operator services as
606	defined in s. 364.02 without first obtaining from the commission
607	a certificate of public convenience and necessity as an operator
608	services provider.
609	(b)  This section does not apply to operator services
610	provided by a local exchange telecommunications company or by an
611	intrastate interexchange telecommunications company, except as
612	required by the commission in the public interest.
613	(2)  Notwithstanding any finding by the commission that a
614	service or facility is subject to competition and should be
615	regulated pursuant to s. 364.338, All intrastate operator
616	service providers are subject to the jurisdiction of the
617	commission and shall render operator services pursuant to
618	schedules in accordance with s. 364.04 tariffs approved by the
619	commission.
620	(3)  For operator services, the commission shall establish
621	maximum rates and charges for all providers of such services
622	within the state.
623	(3)(4)  Operator service providers shall:
624	(a)  Require operators to:
625	1.  Clearly identify the operator service provider to all
626	end users before the call is made.
627	2.  When requested, provide rate and service information.
628	3.  When requested, provide the number to call for
629	complaints and inquiries.
630	4.  When requested, provide the procedure for reporting
631	service difficulties and methods of obtaining refunds.
632	(b)  Not intentionally charge for incompleted calls and
633	provide full refund or credit for any misbilled or incomplete
634	calls.
635	(c)  Bill for services in accordance with their published
636	schedules approved in their tariff and only at the rates set
637	forth therein tariff or otherwise approved rate, and disclose
638	their names on bills which include charges for services
639	rendered.
640	(4)(5)  Each call aggregator shall post in the immediate
641	vicinity of each telephone available to the public the name of
642	the operator service provider, a toll-free customer service
643	number, a statement that rate quotes are available upon request,
644	and instructions on how the end user may access other operator
645	service providers and such other information determined by the
646	commission to be necessary in the public interest.
647	(5)(6)  Neither the operator service provider nor the call
648	aggregator shall block or prevent an end user's access to the
649	end user's operator service provider of choice, except that the
650	commission shall grant limited waivers to operator service
651	providers or call aggregators upon a showing that such waiver is
652	in the public interest.
653	(6)(7)  The local exchange telecommunications company shall
654	not disconnect local service for properly contested nonpayment
655	of any operator services bill.
656	(7)(8)  The commission shall adopt and enforce requirements
657	for the provision of services by operator services companies and
658	call aggregators.
659	(8)(9)  Operator service providers and local exchange
660	companies providing billing and collection services shall only
661	bill and collect only the tariffed rates and charges set forth
662	in the applicable schedules.
663	(9)(10)  Notwithstanding any finding by the commission that
664	a service or facility is subject to competition and should be
665	regulated pursuant to s. 364.338, A local exchange
666	telecommunications company may shall not perform billing and
667	collection functions relating to regulated telecommunications
668	services provided by an operator services provider unless the
669	operator services provider has filed a statement with the local
670	exchange telecommunications company signed by a corporate
671	officer, or by another authorized person having personal
672	knowledge, that all regulated telecommunications services to be
673	billed will shall be rendered pursuant to applicable published
674	schedules tariffs approved by the commission.
675	(10)(11)  The commission shall conduct have the
676	responsibility for conducting an effective program of random,
677	no-notice compliance investigations of the operator services
678	providers and call aggregators operating within the state. When
679	the commission finds a blocking violation, it shall determine
680	whether the blocking is the responsibility of the call
681	aggregator or the operator services provider and may fine the
682	responsible party in accordance with s. 364.285. Upon the
683	failure of the responsible party to correct a violation within a
684	mandatory time limit established by the commission or upon a
685	proven pattern of intentional blocking, the commission shall
686	order the discontinuance of the call aggregator's telephone
687	service or revoke the operator services provider's certificate,
688	as applicable.
689	Section 14.  Section 364.3382, Florida Statutes, is amended
690	to read:
691	364.3382  Disclosure.--
692	(1)  A local exchange telecommunications company, when a
693	residential customer initially requests basic local
694	telecommunications service, shall advise each residential
695	customer of the least-cost service available to that customer.
696	Annually, in the form of a bill insert, the local exchange
697	telecommunications company shall advise each residential
698	customer of the price of each service option selected by that
699	customer. The requirement of an annual notice through a bill
700	insert does not apply to interexchange service.
701	(2)  Copies of both the written notices and information
702	provided to customer service representatives concerning the
703	disclosure required pursuant to subsection (1) shall be
704	submitted to the commission for prior approval.
705	Section 15.  Subsection (2) of section 364.345, Florida
706	Statutes, is amended to read:
707	364.345  Certificates; territory served; transfer.--
708	(2)  Except as provided in s. 364.33, a telecommunications
709	company may not sell, assign, or transfer its certificate or any
710	portion thereof without:
711	(a)  A determination by the commission that the proposed
712	sale, assignment, or transfer is in the public interest; and
713	(b)  The approval of the commission.
714	Section 16.  Section 364.09, Florida Statutes, is repealed.
715	Section 17.  Subsection (6) of section 196.012, Florida
716	Statutes, is amended to read:
717	196.012  Definitions.--For the purpose of this chapter, the
718	following terms are defined as follows, except where the context
719	clearly indicates otherwise:
720	(6)  Governmental, municipal, or public purpose or function
721	shall be deemed to be served or performed when the lessee under
722	any leasehold interest created in property of the United States,
723	the state or any of its political subdivisions, or any
724	municipality, agency, special district, authority, or other
725	public body corporate of the state is demonstrated to perform a
726	function or serve a governmental purpose which could properly be
727	performed or served by an appropriate governmental unit or which
728	is demonstrated to perform a function or serve a purpose which
729	would otherwise be a valid subject for the allocation of public
730	funds. For purposes of the preceding sentence, an activity
731	undertaken by a lessee which is permitted under the terms of its
732	lease of real property designated as an aviation area on an
733	airport layout plan which has been approved by the Federal
734	Aviation Administration and which real property is used for the
735	administration, operation, business offices and activities
736	related specifically thereto in connection with the conduct of
737	an aircraft full service fixed base operation which provides
738	goods and services to the general aviation public in the
739	promotion of air commerce shall be deemed an activity which
740	serves a governmental, municipal, or public purpose or function.
741	Any activity undertaken by a lessee which is permitted under the
742	terms of its lease of real property designated as a public
743	airport as defined in s. 332.004(14) by municipalities,
744	agencies, special districts, authorities, or other public bodies
745	corporate and public bodies politic of the state, a spaceport as
746	defined in s. 331.303, or which is located in a deepwater port
747	identified in s. 403.021(9)(b) and owned by one of the foregoing
748	governmental units, subject to a leasehold or other possessory
749	interest of a nongovernmental lessee that is deemed to perform
750	an aviation, airport, aerospace, maritime, or port purpose or
751	operation shall be deemed an activity that serves a
752	governmental, municipal, or public purpose. The use by a lessee,
753	licensee, or management company of real property or a portion
754	thereof as a convention center, visitor center, sports facility
755	with permanent seating, concert hall, arena, stadium, park, or
756	beach is deemed a use that serves a governmental, municipal, or
757	public purpose or function when access to the property is open
758	to the general public with or without a charge for admission. If
759	property deeded to a municipality by the United States is
760	subject to a requirement that the Federal Government, through a
761	schedule established by the Secretary of the Interior, determine
762	that the property is being maintained for public historic
763	preservation, park, or recreational purposes and if those
764	conditions are not met the property will revert back to the
765	Federal Government, then such property shall be deemed to serve
766	a municipal or public purpose. The term "governmental purpose"
767	also includes a direct use of property on federal lands in
768	connection with the Federal Government's Space Exploration
769	Program or spaceport activities as defined in s. 212.02(22).
770	Real property and tangible personal property owned by the
771	Federal Government or Space Florida and used for defense and
772	space exploration purposes or which is put to a use in support
773	thereof shall be deemed to perform an essential national
774	governmental purpose and shall be exempt. "Owned by the lessee"
775	as used in this chapter does not include personal property,
776	buildings, or other real property improvements used for the
777	administration, operation, business offices and activities
778	related specifically thereto in connection with the conduct of
779	an aircraft full service fixed based operation which provides
780	goods and services to the general aviation public in the
781	promotion of air commerce provided that the real property is
782	designated as an aviation area on an airport layout plan
783	approved by the Federal Aviation Administration. For purposes of
784	determination of "ownership," buildings and other real property
785	improvements which will revert to the airport authority or other
786	governmental unit upon expiration of the term of the lease shall
787	be deemed "owned" by the governmental unit and not the lessee.
788	Providing two-way telecommunications services to the public for
789	hire by the use of a telecommunications facility, as defined in
790	s. 364.02(16) s. 364.02(15), and for which a certificate is
791	required under chapter 364 does not constitute an exempt use for
792	purposes of s. 196.199, unless the telecommunications services
793	are provided by the operator of a public-use airport, as defined
794	in s. 332.004, for the operator's provision of
795	telecommunications services for the airport or its tenants,
796	concessionaires, or licensees, or unless the telecommunications
797	services are provided by a public hospital.
798	Section 18.  Paragraph (b) of subsection (1) of section
799	199.183, Florida Statutes, is amended to read:
800	199.183  Taxpayers exempt from nonrecurring taxes.--
801	(1)  Intangible personal property owned by this state or
802	any of its political subdivisions or municipalities shall be
803	exempt from taxation under this chapter. This exemption does not
804	apply to:
805	(b)  Property related to the provision of two-way
806	telecommunications services to the public for hire by the use of
807	a telecommunications facility, as defined in s. 364.02(16) s.
808	364.02(15), and for which a certificate is required under
809	chapter 364, when the service is provided by any county,
810	municipality, or other political subdivision of the state. Any
811	immunity of any political subdivision of the state or other
812	entity of local government from taxation of the property used to
813	provide telecommunication services that is taxed as a result of
814	this paragraph is hereby waived. However, intangible personal
815	property related to the provision of telecommunications services
816	provided by the operator of a public-use airport, as defined in
817	s. 332.004, for the operator's provision of telecommunications
818	services for the airport or its tenants, concessionaires, or
819	licensees, and intangible personal property related to the
820	provision of telecommunications services provided by a public
821	hospital, are exempt from taxation under this chapter.
822	Section 19.  Subsection (6) of section 212.08, Florida
823	Statutes, is amended to read:
824	212.08  Sales, rental, use, consumption, distribution, and
825	storage tax; specified exemptions.--The sale at retail, the
826	rental, the use, the consumption, the distribution, and the
827	storage to be used or consumed in this state of the following
828	are hereby specifically exempt from the tax imposed by this
829	chapter.
830	(6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are also
831	exempt from the tax imposed by this chapter sales made to the
832	United States Government, a state, or any county, municipality,
833	or political subdivision of a state when payment is made
834	directly to the dealer by the governmental entity. This
835	exemption shall not inure to any transaction otherwise taxable
836	under this chapter when payment is made by a government employee
837	by any means, including, but not limited to, cash, check, or
838	credit card when that employee is subsequently reimbursed by the
839	governmental entity. This exemption does not include sales of
840	tangible personal property made to contractors employed either
841	directly or as agents of any such government or political
842	subdivision thereof when such tangible personal property goes
843	into or becomes a part of public works owned by such government
844	or political subdivision. A determination whether a particular
845	transaction is properly characterized as an exempt sale to a
846	government entity or a taxable sale to a contractor shall be
847	based on the substance of the transaction rather than the form
848	in which the transaction is cast. The department shall adopt
849	rules that give special consideration to factors that govern the
850	status of the tangible personal property before its affixation
851	to real property. In developing these rules, assumption of the
852	risk of damage or loss is of paramount consideration in the
853	determination. This exemption does not include sales, rental,
854	use, consumption, or storage for use in any political
855	subdivision or municipality in this state of machines and
856	equipment and parts and accessories therefor used in the
857	generation, transmission, or distribution of electrical energy
858	by systems owned and operated by a political subdivision in this
859	state for transmission or distribution expansion. Likewise
860	exempt are charges for services rendered by radio and television
861	stations, including line charges, talent fees, or license fees
862	and charges for films, videotapes, and transcriptions used in
863	producing radio or television broadcasts. The exemption provided
864	in this subsection does not include sales, rental, use,
865	consumption, or storage for use in any political subdivision or
866	municipality in this state of machines and equipment and parts
867	and accessories therefor used in providing two-way
868	telecommunications services to the public for hire by the use of
869	a telecommunications facility, as defined in s. 364.02(16) s.
870	364.02(15), and for which a certificate is required under
871	chapter 364, which facility is owned and operated by any county,
872	municipality, or other political subdivision of the state. Any
873	immunity of any political subdivision of the state or other
874	entity of local government from taxation of the property used to
875	provide telecommunication services that is taxed as a result of
876	this section is hereby waived. However, the exemption provided
877	in this subsection includes transactions taxable under this
878	chapter which are for use by the operator of a public-use
879	airport, as defined in s. 332.004, in providing such
880	telecommunications services for the airport or its tenants,
881	concessionaires, or licensees, or which are for use by a public
882	hospital for the provision of such telecommunications services.
883	Section 20.  Subsection (8) of section 290.007, Florida
884	Statutes, is amended to read:
885	290.007  State incentives available in enterprise
886	zones.--The following incentives are provided by the state to
887	encourage the revitalization of enterprise zones:
888	(8)  Notwithstanding any law to the contrary, the Public
889	Service Commission may allow public utilities and
890	telecommunications companies to grant discounts of up to 50
891	percent on tariffed rates for services to small businesses
892	located in an enterprise zone designated pursuant to s.
893	290.0065. Such discounts may be granted for a period not to
894	exceed 5 years. For purposes of this subsection, the term
895	"public utility" has the same meaning as in s. 366.02(1) and the
896	term "telecommunications company" has the same meaning as in s.
897	364.02(15) s. 364.02(14).
898	Section 21.  Subsection (3) of section 350.0605, Florida
899	Statutes, is amended to read:
900	350.0605  Former commissioners and employees;
901	representation of clients before commission.--
902	(3)  For a period of 2 years following termination of
903	service on the commission, a former member may not accept
904	employment by or compensation from a business entity which,
905	directly or indirectly, owns or controls a public utility
906	regulated by the commission, from a public utility regulated by
907	the commission, from a business entity which, directly or
908	indirectly, is an affiliate or subsidiary of a public utility
909	regulated by the commission or is an actual business competitor
910	of a local exchange company or public utility regulated by the
911	commission and is otherwise exempt from regulation by the
912	commission under ss. 364.02(15) ss. 364.02(14) and 366.02(1), or
913	from a business entity or trade association that has been a
914	party to a commission proceeding within the 2 years preceding
915	the member's termination of service on the commission. This
916	subsection applies only to members of the Florida Public Service
917	Commission who are appointed or reappointed after May 10, 1993.
918	Section 22.  Paragraph (a) of subsection (1) of section
919	364.059, Florida Statutes, is amended to read:
920	364.059  Procedures for seeking stay; benchmark;
921	criteria.--
922	(1)  If a local exchange telecommunications company has
923	elected, pursuant to s. 364.051(6), to have its basic local
924	telecommunications services treated the same as its nonbasic
925	services, the following procedures shall be available:
926	(a)  Any petition filed by a substantially interested party
927	against a local exchange telecommunications company seeking a
928	stay of the effective date of a price reduction for a basic
929	local telecommunications service, alleging an anticompetitive
930	price reduction pursuant to s. 364.051(5), s. 364.08, s. 364.09,
931	s. 364.10, or s. 364.3381, shall be resolved by the commission
932	pursuant to this section and by an order issued within 45 days
933	after the date the petition is filed.
934	Section 23.  Section 364.105, Florida Statutes, is amended
935	to read:
936	364.105  Discounted rate for basic service for former
937	Lifeline subscribers.--Each local exchange telecommunications
938	company shall offer discounted residential basic local
939	telecommunications service at 70 percent of the residential
940	local telecommunications service rate for any Lifeline
941	subscriber who no longer qualifies for Lifeline. A Lifeline
942	subscriber who requests such service shall receive the
943	discounted price for a period of 1 year after the date the
944	subscriber ceases to be qualified for Lifeline. In no event
945	shall this preclude the offering of any other discounted
946	services which comply with ss. 364.08, 364.09, and 364.10.
947	Section 24.  Subsection (4) of section 364.602, Florida
948	Statutes, is amended to read:
949	364.602  Definitions.--For purposes of this part:
950	(4)  "Originating party" means any person, firm,
951	corporation, or other entity, including a telecommunications
952	company or a billing clearinghouse, that provides any
953	telecommunications service or information service to a customer
954	or bills a customer through a billing party, except the term
955	"originating party" does not include any entity specifically
956	exempted from the definition of "telecommunications company" as
957	provided in s. 364.02(15) s. 364.02(14).
958	Section 25.  Subsection (5) of section 489.103, Florida
959	Statutes, is amended to read:
960	489.103  Exemptions.--This part does not apply to:
961	(5)  Public utilities, including special gas districts as
962	defined in chapter 189, telecommunications companies as defined
963	in s. 364.02(15) s. 364.02(14), and natural gas transmission
964	companies as defined in s. 368.103(4), on construction,
965	maintenance, and development work performed by their employees,
966	which work, including, but not limited to, work on bridges,
967	roads, streets, highways, or railroads, is incidental to their
968	business. The board shall define, by rule, the term "incidental
969	to their business" for purposes of this subsection.
970	Section 26.  This act shall take effect July 1, 2009.

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