House File 576 - Introduced



                                       HOUSE FILE       
                                       BY  PETTENGILL and BAUDLER


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to telecommunications violations and complaints,
  2    by providing for expanded access to Iowa utilities board
  3    antitrust complaint procedures and prohibiting excessive
  4    charges by telephone service providers.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2366HH 82
  7 rn/es/88

PAG LIN



  1  1    Section 1.  Section 476.55, subsection 2, Code 2007, is
  1  2 amended to read as follows:
  1  3    2.  Notwithstanding section 476.1D, the board may receive a
  1  4 complaint from a local exchange carrier utility holding a
  1  5 certificate of public convenience and necessity for providing
  1  6 local telecommunications services under section 476.29 that
  1  7 another local exchange carrier such utility has engaged in an
  1  8 activity that is inconsistent with antitrust laws and the
  1  9 policies which underlie them.  For purposes of this
  1 10 subsection, "local exchange carrier" means the same as defined
  1 11 in section 476.96 and includes a city utility authorized
  1 12 pursuant to section 388.2 to provide local exchange services.
  1 13 If, after notice and opportunity for hearing, the board finds
  1 14 that a local exchange carrier utility holding a certificate of
  1 15 public convenience and necessity for providing local
  1 16 telecommunications services under section 476.29 has engaged
  1 17 in an activity that is inconsistent with antitrust laws and
  1 18 the policies which underlie them, the board may order any of
  1 19 the following:
  1 20    a.  The local exchange carrier utility to adjust retail
  1 21 rates in an amount sufficient to correct the antitrust
  1 22 activity.
  1 23    b.  The local exchange carrier utility to pay any costs
  1 24 incurred by the complainant for the pursuit of the complaint.
  1 25    c.  The local exchange carrier utility to pay a civil
  1 26 penalty.
  1 27    d.  Either the local exchange carrier utility or the
  1 28 complainant to pay the costs of the complaint proceeding
  1 29 before the board, and the other party's reasonable attorney
  1 30 fees.
  1 31    This subsection shall not be construed to modify, restrict,
  1 32 or limit the right of a person to bring a complaint under any
  1 33 other provision of this chapter.
  1 34    Sec. 2.  NEW SECTION.  551A  UNLAWFUL DISCRIMINATION IN
  1 35 RATES.
  2  1    1.  PROHIBITION == EXCESS CHARGES.  A provider of
  2  2 telecommunication services conducting business in this state
  2  3 shall not sell a local telephone service or a bundle of
  2  4 services that includes local telephone service at a price that
  2  5 exceeds two hundred percent of the lowest price that the
  2  6 provider charges for an equivalent service or similar bundle
  2  7 of services to other customers in this state.
  2  8    2.  PENALTIES.
  2  9    a.  A provider determined by a court of competent
  2 10 jurisdiction in this state to have not materially complied
  2 11 with the provisions of subsection 1 shall, in lieu of any
  2 12 other penalty established pursuant to this chapter, be subject
  2 13 to the following:
  2 14    (1)  An injunction ordering the provider to comply with the
  2 15 provisions of subsection 1.
  2 16    (2)  For each separate violation, a civil penalty in an
  2 17 amount not exceeding ten thousand dollars.
  2 18    b.  If the court determines that noncompliance has resulted
  2 19 in a loss or damage to a customer, a person or class of
  2 20 persons may bring a civil action on behalf of the customer or
  2 21 customers seeking the recovery of compensatory damages or
  2 22 seeking other appropriate relief.
  2 23    c.  If the court determines that noncompliance has resulted
  2 24 in a loss of customers to a competitive provider, the injured
  2 25 provider may bring a civil action to recover the consequential
  2 26 damages of economic loss suffered by the injured provider as a
  2 27 result of the loss of customers who changed to the
  2 28 noncompliant provider while the noncompliance was occurring.
  2 29                           EXPLANATION
  2 30    This bill expands access to Iowa utilities board antitrust
  2 31 complaint procedures to a wider range of carriers providing
  2 32 telecommunications services and prohibits excessive charges by
  2 33 telephone service providers.
  2 34    The bill amends Code section 476.55, which currently
  2 35 provides for the receipt of complaints by the board from local
  3  1 exchange carriers against other local exchange carriers of
  3  2 activities inconsistent with antitrust laws and related
  3  3 policies.  That section references Code section 476.96 in
  3  4 defining a local exchange carrier to refer to the incumbent
  3  5 and historical rate=regulated wireline provider of local
  3  6 exchange services or any successor to such person that
  3  7 provides local exchange services under an authorized
  3  8 certificate of public convenience and necessity within a
  3  9 specific geographic area described in maps filed with and
  3 10 approved by the board as of September 30, 1992.  Code section
  3 11 476.55 adds that for its purposes a city utility authorized
  3 12 pursuant to Code section 388.2 to provide local exchange
  3 13 services will be considered a local exchange carrier.  The
  3 14 bill replaces references to local exchange carriers with a
  3 15 broader reference to utilities holding a certificate of public
  3 16 convenience and necessity to furnish local telecommunications
  3 17 services under Code section 476.29.  This expanded reference
  3 18 will permit independent telephone companies to be a party to
  3 19 antitrust complaints, and subject to applicable sanctions if
  3 20 found by the board to have engaged in antitrust activities.
  3 21    The bill additionally prohibits a provider of
  3 22 telecommunication services conducting business in Iowa from
  3 23 selling a local telephone service or a bundle of services that
  3 24 includes local telephone service at a price that exceeds 200
  3 25 percent of the lowest price that the provider charges for an
  3 26 equivalent service or similar bundle of services to other
  3 27 customers in Iowa.  The bill establishes penalties for
  3 28 violations of the prohibition in the form of injunctive relief
  3 29 and a civil penalty for each separate violation not to exceed
  3 30 $10,000.  Additionally, if noncompliance is determined to have
  3 31 resulted in a loss or damage to a customer, a person or class
  3 32 of persons may bring a civil action on behalf of the customer
  3 33 or customers seeking the recovery of compensatory damages or
  3 34 other appropriate relief, and if noncompliance is determined
  3 35 to have resulted in a loss of customers to a competitive
  4  1 provider, the injured provider may bring a civil action to
  4  2 recover the consequential damages of economic loss suffered by
  4  3 the provider as a result of the loss of customers who changed
  4  4 to the noncompliant provider.
  4  5 LSB 2366HH 82
  4  6 rn:nh/es/88.1