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 alocal exchange carrierutility holding a 1 5 certificate of public convenience and necessity for providing 1 6 local telecommunications services under section 476.29 that 1 7 anotherlocal exchange carriersuch 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 alocal exchange carrierutility 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. Thelocal exchange carrierutility to adjust retail 1 21 rates in an amount sufficient to correct the antitrust 1 22 activity. 1 23 b. Thelocal exchange carrierutility to pay any costs 1 24 incurred by the complainant for the pursuit of the complaint. 1 25 c. Thelocal exchange carrierutility to pay a civil 1 26 penalty. 1 27 d. Either thelocal exchange carrierutility 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