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House Amendment 3610

Amendment Text

PAG LIN
  1  1    Amend House File 518 as follows:
  1  2    #1.  By striking everything after the enacting
  1  3 clause and inserting the following:
  1  4    "Section 1.  Section 476.3, subsection 2, Code
  1  5 1995, is amended by adding the following new
  1  6 unnumbered paragraph:
  1  7    NEW UNNUMBERED PARAGRAPH.  Notwithstanding the
  1  8 provisions of this subsection, the consumer advocate
  1  9 shall not file a petition under this subsection that
  1 10 alleges a local exchange carrier's rates are excessive
  1 11 while the local exchange carrier is participating in a
  1 12 price regulation plan approved by the board pursuant
  1 13 to section 476.30B.
  1 14    Sec. 2.  Section 476.10, unnumbered paragraph 4,
  1 15 Code 1995, is amended to read as follows:
  1 16    Whenever the board shall deem it necessary in order
  1 17 to carry out the duties imposed upon it in connection
  1 18 with rate regulation under section 476.6,
  1 19 investigations under section 476.3, or review
  1 20 proceedings under section 476.31, the board may employ
  1 21 additional temporary or permanent staff, or may
  1 22 contract with persons who are not state employees for
  1 23 engineering, accounting, or other professional
  1 24 services, or both.  The costs of these additional
  1 25 employees and contract services shall be paid by the
  1 26 public utility whose rates are being reviewed in the
  1 27 same manner as other expenses are paid under this
  1 28 section.  Beginning on July 1, 1991, there is
  1 29 appropriated out of any funds in the state treasury
  1 30 not otherwise appropriated, such sums as may be
  1 31 necessary to enable the board to hire additional staff
  1 32 and contract for services under this section.  The
  1 33 board shall increase quarterly assessments specified
  1 34 in unnumbered paragraph 2, by amounts necessary to
  1 35 enable the board to hire additional staff and contract
  1 36 for services under this section.  The authority to
  1 37 hire additional temporary or permanent staff that is
  1 38 granted to the board by this section shall not be
  1 39 subject to limitation by any administrative or
  1 40 executive order or decision that restricts the number
  1 41 of state employees or the filling of employee
  1 42 vacancies, and shall not be subject to limitation by
  1 43 any law of this state that restricts the number of
  1 44 state employees or the filling of employee vacancies
  1 45 unless that law is made applicable to this section by
  1 46 express reference to this section.  Before the board
  1 47 expends or encumbers an amount in excess of the funds
  1 48 budgeted for rate regulation and before the board
  1 49 increases quarterly assessments pursuant to this
  1 50 paragraph, the director of the department of
  2  1 management shall approve the expenditure or
  2  2 encumbrance.  Before approval is given, the director
  2  3 of the department of management shall determine that
  2  4 the expenses exceed the funds budgeted by the general
  2  5 assembly to the board for rate regulation and that the
  2  6 board does not have other funds from which the
  2  7 expenses can be paid.  Upon approval of the director
  2  8 of the department of management the board may expend
  2  9 and encumber funds for the excess expenses, and
  2 10 increase quarterly assessments to raise the additional
  2 11 funds.  The board and the office of consumer advocate
  2 12 may add additional personnel or contract for
  2 13 additional assistance to review and evaluate energy
  2 14 efficiency plans and the implementation of energy
  2 15 efficiency programs including, but not limited to,
  2 16 professionally trained engineers, accountants,
  2 17 attorneys, skilled examiners and inspectors, and
  2 18 secretaries and clerks.  The board and the office of
  2 19 consumer advocate may also contract for additional
  2 20 assistance in the evaluation and implementation of
  2 21 issues relating to telecommunication competition.  The
  2 22 board and the office of the consumer advocate may
  2 23 expend additional sums beyond those sums appropriated.
  2 24 However, the authority to add additional personnel or
  2 25 contract for additional assistance must first be
  2 26 approved by the department of management.  The
  2 27 additional sums for energy efficiency shall be
  2 28 provided to the board and the office of the consumer
  2 29 advocate by the utilities subject to the energy
  2 30 efficiency requirements in this chapter.  Telephone
  2 31 companies shall pay any additional sums needed for
  2 32 assistance with telecommunication competition issues.
  2 33 The assessments shall be in addition to and separate
  2 34 from the quarterly assessment.
  2 35    Sec. 3.  Section 476.11, Code 1995, is amended by
  2 36 adding the following new unnumbered paragraph:
  2 37    NEW UNNUMBERED PARAGRAPH.  The board may resolve
  2 38 complaints, upon notice and hearing, that a utility,
  2 39 operating under section 476.29, has failed to provide
  2 40 just, reasonable, and nondiscriminatory arrangements
  2 41 for interconnection of its telecommunications services
  2 42 with another telecommunications provider.
  2 43    Sec. 4.  Section 476.29, subsection 2, Code 1995,
  2 44 is amended to read as follows:
  2 45    2.  Except as provided in subsection 12, a
  2 46 certificate shall be issued by the board, after notice
  2 47 and opportunity for hearing, if the board determines
  2 48 that the service proposed to be rendered will promote
  2 49 the public convenience and necessity, provided that an
  2 50 applicant other than a local exchange carrier, as
  3  1 defined in section 476.30A, shall not be denied a
  3  2 certificate if the board finds that the applicant
  3  3 possesses the technical, financial, and managerial
  3  4 ability to provide the service it proposes to render
  3  5 and the board finds the service is consistent with the
  3  6 public interest.  The board shall make a determination
  3  7 within ninety days of the submission by the applicant
  3  8 of evidence of its technical, financial, and
  3  9 managerial ability, unless the board determines that
  3 10 additional time is necessary to consider the
  3 11 application, in which case the board may extend the
  3 12 time for making a determination for an additional
  3 13 sixty days.  The board may establish reasonable
  3 14 conditions or restrictions on the certificate at the
  3 15 time of issuance.
  3 16    Sec. 5.  NEW SECTION.  476.30  FINDINGS &endash;
  3 17 STATEMENT OF POLICY.
  3 18    The general assembly finds all of the following:
  3 19    1.  Communications services should be available
  3 20 throughout the state at just, reasonable, and
  3 21 affordable rates from a variety of providers.
  3 22    2.  In rendering decisions with respect to
  3 23 regulation of telecommunications companies, the board
  3 24 shall consider the effects of its decisions on
  3 25 competition in telecommunications markets and, to the
  3 26 extent reasonable and lawful, shall act to further the
  3 27 development of competition in those markets.
  3 28    2A.  In order to encourage competition for all
  3 29 telecommunications services, the board should address
  3 30 issues relating to the movement of prices toward cost
  3 31 and the removal of subsidies in the existing price
  3 32 structure of the incumbent local exchange carrier.
  3 33    3.  Regulatory flexibility is appropriate when
  3 34 competition provides customers with competitive
  3 35 choices in the variety, quality, and pricing of
  3 36 communications services, and when consistent with
  3 37 consumer protection and other relevant public
  3 38 interests.
  3 39    4.  The board should respond with speed and
  3 40 flexibility to changes in the communications industry.
  3 41    5.  Economic development can be fostered by the
  3 42 existence of advanced communications networks.
  3 43    Sec. 6.  NEW SECTION.  476.30A  DEFINITIONS.
  3 44    As used in section 476.30, this section, and
  3 45 sections 476.30B through 476.30E, unless the context
  3 46 otherwise requires:
  3 47    1.  "Basic communications service" includes at a
  3 48 minimum, basic local telephone service, switched
  3 49 access, 911 and E-911 services, and dual party relay
  3 50 service.  The board is authorized to classify by rule
  4  1 other two-way switched voice communications services
  4  2 as basic communications services consistent with
  4  3 community expectations and the public interest.
  4  4    2.  "Basic local telephone service" means the
  4  5 provision of dial tone access and usage, for the
  4  6 transmission of two-way switched communications within
  4  7 a local exchange area, including, but not limited to,
  4  8 the following:
  4  9    a.  Primary residence service and business
  4 10 services, including flat rate or local measured
  4 11 service, private branch exchange trunks, trunk type
  4 12 hunting services, direct inward dialing, and the
  4 13 network access portion of central office switched
  4 14 exchange service.
  4 15    b.  Extended area service.
  4 16    c.  Touch tone service when provided separately.
  4 17    d.  Call tracing.
  4 18    e.  Calling number blocking on either a per call or
  4 19 a per line basis.
  4 20    f.  Local exchange white pages directories.
  4 21    g.  Installation and repair of local network
  4 22 access.
  4 23    h.  Local operator services, excluding directory
  4 24 assistance.
  4 25    i.  Toll service blocking and 1-900 and 1-976
  4 26 access blocking.
  4 27    3.  "Competitive local exchange service provider"
  4 28 means any person that provides local exchange
  4 29 services, other than a local exchange carrier or a
  4 30 nonrate-regulated wireline provider of local exchange
  4 31 services under an authorized certificate of public
  4 32 convenience and necessity within a specific geographic
  4 33 area described in maps filed with and approved by the
  4 34 board as of September 30, 1992.
  4 35    4.  "Interim number portability" means one or more
  4 36 mechanisms by which a local exchange customer at a
  4 37 particular location may change the customer's local
  4 38 exchange services provider without any change in the
  4 39 local exchange customer's telephone number, while
  4 40 experiencing as little loss of functionality as is
  4 41 feasible using available technology.
  4 42    5.  "Local exchange carrier" means any person that
  4 43 was the incumbent and historical rate-regulated
  4 44 wireline provider of local exchange services or any
  4 45 successor to such person that provides local exchange
  4 46 services under an authorized certificate of public
  4 47 convenience and necessity within a specific geographic
  4 48 area described in maps filed with and approved by the
  4 49 board as of September 30, 1992.
  4 50    6.  "Nonbasic communications services" means all
  5  1 communications services subject to the board's
  5  2 jurisdiction which are not deemed either by statute or
  5  3 by rule to be basic communications services, including
  5  4 any service offered by the local exchange carrier for
  5  5 the first time after the effective date of this Act.
  5  6 A service is not considered new if it constitutes the
  5  7 bundling, unbundling, or repricing of an already
  5  8 existing service.  Consistent with community
  5  9 expectations and the public interest, the board may
  5 10 reclassify by rule as nonbasic those two-way switched
  5 11 communications services previously classified by rule
  5 12 as basic.
  5 13    7.  "Provider number portability" means the
  5 14 capability of a local exchange customer to change the
  5 15 customer's local exchange services provider at the
  5 16 customer's same location without any change in the
  5 17 local exchange customer's telephone number, while
  5 18 preserving the full range of functionality that the
  5 19 customer currently experiences.  "Provider number
  5 20 portability" includes the equal availability of
  5 21 information concerning the local exchange provider
  5 22 serving the number to all carriers, and the ability to
  5 23 deliver traffic directly to that provider without
  5 24 having first to route traffic to the local exchange
  5 25 carrier or otherwise use the services, facilities, or
  5 26 capabilities of the local exchange carrier to complete
  5 27 the call, and without the dialing of additional digits
  5 28 or access codes.
  5 29    Sec. 7.  NEW SECTION.  476.30B  PRICE REGULATION.
  5 30    1.  Notwithstanding contrary provisions of this
  5 31 chapter relating to rate regulation, the board may
  5 32 approve a plan for price regulation submitted by a
  5 33 rate-regulated local exchange carrier.  The plan for
  5 34 price regulation is not effective until the approval
  5 35 by the board of tariffs implementing the unbundling of
  5 36 essential facilities pursuant to section 476.30D,
  5 37 subsection 4, except for a local exchange carrier with
  5 38 less than seventy-five thousand access lines whose
  5 39 plan for price regulation will be effective concurrent
  5 40 with the approval of its plan.  The board may approve
  5 41 a plan for price regulation prior to the adoption of
  5 42 rules related to the unbundling of essential
  5 43 facilities or concurrent with a rate proceeding under
  5 44 section 476.3, 476.6, or 476.7.  During the term of
  5 45 the plan, the board shall regulate the prices of the
  5 46 local exchange carrier's basic and nonbasic
  5 47 communications services pursuant to the requirements
  5 48 of the price regulation plan approved by the board.
  5 49 The local exchange carrier shall not be subject to
  5 50 rate of return regulation during the term of the plan.
  6  1    2.  The board, after notice and opportunity for
  6  2 hearing, may approve, modify, or reject the plan.  The
  6  3 local exchange carrier shall have ten days to accept
  6  4 or reject any board modifications to its plan.  If the
  6  5 local exchange carrier rejects a modification to its
  6  6 plan, the board shall reject the plan without
  6  7 prejudice to the local exchange carrier to submit
  6  8 another plan.
  6  9    3.  A price regulation plan, at a minimum, shall
  6 10 include provisions, consistent with the provisions of
  6 11 this section and any rules adopted by the board, for
  6 12 the following:
  6 13    a.  (1)  Establishing and changing prices, terms,
  6 14 and conditions for basic communications services.  The
  6 15 initial plan for price regulation must include a
  6 16 proposal, which the board shall approve, for reducing
  6 17 the local exchange carrier's average intrastate access
  6 18 service rates to the local exchange carrier's average
  6 19 interstate access service rates in effect as of the
  6 20 last day of the calendar year immediately preceding
  6 21 the date of filing of the plan, as follows:
  6 22    (a)  A local exchange carrier with five hundred
  6 23 thousand or more access lines in this state shall
  6 24 reduce its average intrastate access service rates to
  6 25 its average interstate access service rates as of the
  6 26 date that the plan is filed.
  6 27    (b)  A local exchange carrier with fewer than five
  6 28 hundred thousand but seventy-five thousand or more
  6 29 access lines in this state shall reduce its average
  6 30 intrastate access service rates to its average
  6 31 interstate access service rates in increments of at
  6 32 least twenty-five percent, with the initial reduction
  6 33 to take effect on approval of the plan and equal
  6 34 annual reductions on each anniversary of the approval
  6 35 during the first three years that its plan is in
  6 36 effect.
  6 37    (c)  A local exchange carrier with fewer than
  6 38 seventy-five thousand access lines in this state shall
  6 39 reduce its average intrastate access service rates to
  6 40 its average interstate access service rates with equal
  6 41 annual reductions during a period beginning no more
  6 42 than two years and ending no more than five years from
  6 43 the plan's inception.
  6 44    (2)  This section shall not be construed to do
  6 45 either of the following:
  6 46    (a)  Prohibit an additional decrease in a carrier's
  6 47 average intrastate access service rate during the term
  6 48 of the plan.
  6 49    (b)  Permit any increase in a carrier's average
  6 50 intrastate access service rates during the term of the
  7  1 plan.
  7  2    (3)  The plan shall also provide that the initial
  7  3 prices for basic communications services shall be six
  7  4 percent less than the rates approved and in effect at
  7  5 the time the local exchange carrier files its plan.
  7  6 In lieu of the six percent reduction, a local exchange
  7  7 carrier may elect to establish its rates for basic
  7  8 communications services in a rate proceeding under
  7  9 section 476.3 or 476.6 commenced after the effective
  7 10 date of this Act.  The plan shall provide that no
  7 11 price increases shall be undertaken within twelve
  7 12 months of the date of approval of the local exchange
  7 13 carrier's plan, or within twelve months of the last
  7 14 price change for basic communications services.
  7 15    (4)  The plan shall provide for both increases and
  7 16 decreases in the prices for basic communications
  7 17 services reflecting annual changes in inflation and
  7 18 productivity.  Prior to January 1, 1998, the board
  7 19 shall use the gross domestic product price index, as
  7 20 published by the federal government, for an inflation
  7 21 measure, and two and six-tenths percentage points for
  7 22 a productivity measure.  After January 1, 1998, the
  7 23 board by rule may adopt current measures of inflation
  7 24 and productivity.
  7 25    (5)  The plan may provide that price increases for
  7 26 basic communications services which are permitted
  7 27 under this section may be deferred and accumulated for
  7 28 a maximum of three years into a single price increase,
  7 29 provided that a deferred and accumulated price
  7 30 increase under this section shall not at any time
  7 31 exceed six percent.  A price decrease for basic
  7 32 communications services shall not be deferred or
  7 33 accumulated, except that price decreases of less than
  7 34 two percent may be deferred by the local exchange
  7 35 carrier for one year.  A price decrease required under
  7 36 this section may be offset by a price increase for a
  7 37 basic communications service that would have been
  7 38 permitted under this section in the previous twelve-
  7 39 month period, but which was deferred by the local
  7 40 exchange carrier.
  7 41    b.  Establishing and changing prices, terms, and
  7 42 conditions for nonbasic communications services.
  7 43    c.  Reporting new service offerings to the board.
  7 44    d.  Reflecting in rates any changes in revenues,
  7 45 expenses, and investment due to exogenous factors
  7 46 beyond the control of the utility.
  7 47    e.  Encouraging modernization of the utility's
  7 48 telecommunications infrastructure.
  7 49    f.  Providing notice to customers, the board, and
  7 50 the consumer advocate of changes in prices, terms, or
  8  1 conditions for basic and nonbasic communications
  8  2 services.
  8  3    4.  The board shall consider the extent to which a
  8  4 proposed plan complies with the requirements of
  8  5 subsection 3 and achieves the following:
  8  6    a.  Just, nondiscriminatory, and reasonable rates.
  8  7    b.  High quality, universally available
  8  8 communications services.
  8  9    c.  Encouragement of investment in communications
  8 10 infrastructure, efficiency improvements, and
  8 11 technological innovation.
  8 12    d.  The introduction of new communications products
  8 13 and services from a variety of sources.
  8 14    e.  Regulatory efficiency including reduction of
  8 15 regulatory costs and delays.  A plan shall not provide
  8 16 for waiver of, release from, or delay in implementing
  8 17 the provisions of this section, section 476.30D or
  8 18 476.30E or any rules adopted by the board pursuant to
  8 19 those sections.
  8 20    5.  Notwithstanding an approved plan for price
  8 21 regulation, the board shall continue to have
  8 22 regulatory authority over the following:
  8 23    a.  The level, extent, and timing of the unbundling
  8 24 of essential facilities offered by a local exchange
  8 25 carrier.
  8 26    b.  Ensuring against cross-subsidization between
  8 27 nonbasic communications services and basic
  8 28 communications services.
  8 29    6.  Any person, including the consumer advocate, a
  8 30 body politic, or the board on its own motion, may file
  8 31 a written complaint pursuant to section 476.3,
  8 32 subsection 1, regarding a local exchange carrier's
  8 33 implementation, operation under, or satisfaction of
  8 34 the purposes of its price regulation plan.
  8 35    7.  The consumer advocate may represent consumers
  8 36 before the board regarding any rule, order, or
  8 37 proceeding pertaining to price regulation.  The
  8 38 consumer advocate may act as attorney for and
  8 39 represent consumers generally before any state or
  8 40 federal court concerning a board rule, order, or
  8 41 proceeding pertaining to price regulation.
  8 42    8.  In implementing price regulation, the board
  8 43 shall consider competitively neutral methods to assist
  8 44 lower-income Iowans to secure and retain telephone
  8 45 services.
  8 46    9.  The board shall determine the duration of any
  8 47 plan.  The board shall review a local exchange
  8 48 carrier's operation under its plan, with notice and an
  8 49 opportunity for hearing, within four years of the
  8 50 initiation of the plan and prior to the termination of
  9  1 the plan.  The local exchange carrier, consumer
  9  2 advocate, or any person may propose, and the board may
  9  3 approve, any reasonable modifications to a local
  9  4 exchange carrier's plan as a result of the review,
  9  5 except that such modifications shall not require a
  9  6 reduction in the rates for any basic communications
  9  7 service.
  9  8    Sec. 8.  NEW SECTION.  476.30C  PROHIBITED ACTS.
  9  9    A local exchange carrier shall not do any of the
  9 10 following:
  9 11    1.  Discriminate against another provider of
  9 12 communications services by refusing or delaying access
  9 13 to the local exchange carrier's services.
  9 14    2.  Discriminate against another provider of
  9 15 communications services by refusing or delaying access
  9 16 to essential facilities on terms and conditions no
  9 17 less favorable than those the local exchange carrier
  9 18 provides to itself and its affiliates.  An essential
  9 19 facility is a local telecommunications facility,
  9 20 feature, function, or capability of the local exchange
  9 21 carrier's network that competitors cannot practically
  9 22 or economically duplicate or obtain from other
  9 23 sources, and to which reasonable access is necessary
  9 24 to enable competition.
  9 25    3.  Degrade the quality of access or service
  9 26 provided to another provider of communications
  9 27 services.
  9 28    4.  Fail to disclose in a timely manner, upon
  9 29 reasonable request and pursuant to a protective
  9 30 agreement concerning proprietary information, all
  9 31 information reasonably necessary for the design of
  9 32 network interface equipment, network interface
  9 33 services, or software that will meet the
  9 34 specifications of the local exchange carrier's local
  9 35 exchange network.
  9 36    5.  Unreasonably refuse or delay interconnections
  9 37 or provide inferior interconnections to another
  9 38 provider.
  9 39    6.  Use basic exchange service rates, directly or
  9 40 indirectly, to subsidize or offset the costs of other
  9 41 products or services offered by the local exchange
  9 42 carrier.
  9 43    7.  Discriminate in favor of itself or an affiliate
  9 44 in the provision and pricing of, or extension of
  9 45 credit for, any telephone service.
  9 46    Sec. 9.  NEW SECTION.  476.30D  LOCAL EXCHANGE
  9 47 COMPETITION.
  9 48    1.  A certificate of public convenience and
  9 49 necessity to provide local telephone service shall not
  9 50 be interpreted as conveying a monopoly, exclusive
 10  1 privilege, or franchise.  A competitive local exchange
 10  2 service provider shall not be subject to the
 10  3 requirements of this chapter, except that a
 10  4 competitive local exchange service provider shall
 10  5 obtain a certificate of public convenience and
 10  6 necessity pursuant to section 476.29, file tariffs,
 10  7 notify affected customers prior to any rate increase,
 10  8 file reports, information, and pay assessments
 10  9 pursuant to section 476.2, subsection 4, and sections
 10 10 476.9, 476.10, 476.16, 476.30E, and 477C.7, and shall
 10 11 be subject to the board's authority with respect to
 10 12 adequacy of service, interconnection, discontinuation
 10 13 of service, civil penalties, and complaints.  If,
 10 14 after notice and opportunity for hearing, the board
 10 15 determines that a competitive local exchange service
 10 16 provider possesses market power in its local exchange
 10 17 market or markets, the board may apply such other
 10 18 provisions of chapter 476 to a competitive local
 10 19 exchange service provider as it deems appropriate.
 10 20    2.  The duty of a local exchange carrier includes
 10 21 the duty, in accordance with requirements prescribed
 10 22 by the board pursuant to subsection 3 and other laws,
 10 23 to provide equal access to, and interconnection with,
 10 24 its facilities so that its network is fully
 10 25 interoperable with the telecommunications services and
 10 26 information services of other providers, and to offer
 10 27 unbundled essential facilities.
 10 28    3.  A local exchange carrier shall provide
 10 29 reasonable access to ducts, conduits, rights-of-way,
 10 30 and other pathways owned or controlled by the local
 10 31 exchange carrier to which reasonable access is
 10 32 necessary to a competitive local exchange service
 10 33 provider in order for a competitive local exchange
 10 34 service provider to provide service and is feasible
 10 35 for the local exchange carrier.
 10 36    Upon application of a local exchange carrier or a
 10 37 competitive local exchange service provider, the board
 10 38 shall determine any matters concerning reasonable
 10 39 access to ducts, conduits, rights-of-way, and other
 10 40 pathways owned or controlled by the local exchange
 10 41 carrier upon which agreement cannot be reached,
 10 42 including but not limited to, matters regarding
 10 43 valuation, space, and capacity restraints, and
 10 44 compensation for access.
 10 45    4.  a.  Prior to September 1, 1995, the board shall
 10 46 initiate a rule-making proceeding to adopt rules that
 10 47 satisfy the requirements enumerated in subparagraphs
 10 48 (1) through (4).  The rule-making proceeding shall be
 10 49 completed as promptly as possible.  The board, upon
 10 50 petition or on its own motion, may conduct a separate
 11  1 evidentiary hearing on the same or related subjects.
 11  2 The evidence from a hearing may be considered by the
 11  3 board during the rule-making proceeding, provided that
 11  4 the board announces its intention to do so prior to
 11  5 the oral presentation in the rule-making proceeding.
 11  6 The rules shall do the following:
 11  7    (1)  Require a local exchange carrier to provide
 11  8 unbundled essential facilities of its network, and
 11  9 allow reasonable and nondiscriminatory equal access
 11 10 to, use of, and interconnection with, those unbundled
 11 11 essential facilities on reasonable, cost-based, and
 11 12 tariffed terms and conditions.  The board's rules must
 11 13 require a local exchange carrier, including those
 11 14 operating under a plan of price regulation, to file
 11 15 tariffs implementing the unbundled essential
 11 16 facilities within ninety days of the board's final
 11 17 order adopting such rules.  Such access, use, and
 11 18 interconnection shall be on terms and conditions no
 11 19 less favorable than those the local exchange carrier
 11 20 provides to itself and its affiliates for the
 11 21 provision of local exchange, access, and toll
 11 22 services.  This subsection shall not be construed to
 11 23 establish a presumption as to the level of
 11 24 interconnection charges, if any, to be determined by
 11 25 the board pursuant to subparagraph (2).
 11 26    (2)  Require just, reasonable, and
 11 27 nondiscriminatory compensation or arrangements on a
 11 28 reciprocal, equitable, and tariffed basis for
 11 29 termination of telecommunications services between
 11 30 local exchange carriers and competitive local exchange
 11 31 service providers.
 11 32    (3)  Require local exchange carriers to make
 11 33 interim number portability available on request of a
 11 34 competitive local exchange service provider, and to
 11 35 implement provider number portability as soon as the
 11 36 availability of necessary technology makes provider
 11 37 number portability economically and technically
 11 38 feasible, as determined by the board.  The rules shall
 11 39 also devise a reasonable and nondiscriminatory
 11 40 mechanism for the recovery of all recurring and
 11 41 nonrecurring costs of interim and provider number
 11 42 portability.
 11 43    (4)  Develop the cost methodology appropriate for a
 11 44 competitive telecommunications environment.
 11 45    b.  The rules adopted in paragraph "a",
 11 46 subparagraphs (1), (2), and (3), do not apply to local
 11 47 exchange carriers with less than seventy-five thousand
 11 48 access lines until a competitive local exchange
 11 49 service provider has filed for a certificate to
 11 50 provide basic communications services in an exchange
 12  1 or exchanges of the local exchange carrier, or the
 12  2 board determines that competitive necessity requires
 12  3 the implementation of the rules in paragraph "a",
 12  4 subparagraphs (1), (2), and (3), by the local exchange
 12  5 carrier.
 12  6    5.  Local exchange carriers shall file tariffs or
 12  7 price lists in accordance with board rules with
 12  8 respect to the services, features, functions, and
 12  9 capabilities offered to comply with board rules on
 12 10 unbundling of essential facilities and
 12 11 interconnection.  Local exchange carriers shall submit
 12 12 with the tariffs or price lists for basic
 12 13 communications services and toll services supporting
 12 14 information that is sufficient for the board to
 12 15 determine the relationship between the proposed
 12 16 charges and the costs of providing such services,
 12 17 features, functions, or capabilities, including the
 12 18 imputed cost of intrastate access service rates in
 12 19 toll service rates pursuant to existing board orders.
 12 20 The board shall review the tariffs or price lists to
 12 21 ensure that the charges are cost-based and that the
 12 22 terms and conditions contained in the tariffs or price
 12 23 lists unbundle any essential facilities in accordance
 12 24 with the board's rules and any other applicable laws.
 12 25    6.  This section shall not be construed to prohibit
 12 26 the board from enforcing rules or orders entered in
 12 27 contested cases pending on the effective date of this
 12 28 Act to the extent that such rules and orders are
 12 29 consistent with the provisions of this section.
 12 30    7.  Except as provided under section 476.29,
 12 31 subsection 2, and this section, the board shall not
 12 32 impose or allow a local exchange carrier to impose
 12 33 restrictions on the resale of local exchange services,
 12 34 functions, or capabilities.  The board may prohibit
 12 35 residential service from being resold as a different
 12 36 class of service.
 12 37    8.  Any person may file a written complaint with
 12 38 the board requesting the board to determine compliance
 12 39 by a local exchange carrier with the provisions of
 12 40 sections 476.30A through 476.30C, 476.30E, and this
 12 41 section, or any board rules implementing those
 12 42 sections.  Upon the filing of such complaint, the
 12 43 board may promptly initiate a formal complaint
 12 44 proceeding and give notice of the proceeding and the
 12 45 opportunity for hearing.  The formal complaint
 12 46 proceeding may be initiated at any time by the board
 12 47 on its own motion.  The board shall render a decision
 12 48 in the proceeding within ninety days after the date
 12 49 the written complaint was filed.
 12 50    Sec. 10.  NEW SECTION.  476.30E  UNIVERSAL SERVICE.
 13  1    1.  The board shall initiate a proceeding to
 13  2 preserve universal service such that it shall be
 13  3 maintained in a competitively neutral fashion.  As a
 13  4 part of this proceeding, the board shall determine the
 13  5 difference between the cost of providing universal
 13  6 service and the prices determined to be appropriate
 13  7 for such service.
 13  8    2.  The board shall base policies for the
 13  9 preservation of universal service on the following
 13 10 principles:
 13 11    a.  A plan adopted by the board should ensure the
 13 12 continued viability of universal service by
 13 13 maintaining quality services at just and reasonable
 13 14 rates.
 13 15    b.  The plan should define the nature and extent of
 13 16 the service encompassed within any entities' universal
 13 17 service obligations.
 13 18    c.  The plan should establish specific and
 13 19 predictable mechanisms to provide competitively
 13 20 neutral support for universal service.  Those
 13 21 mechanisms shall include a nondiscriminatory mechanism
 13 22 by which funds to support universal service shall be
 13 23 collected, and a mechanism for disbursement of support
 13 24 funds to eligible subscribers, either directly to
 13 25 those subscribers, or to the subscriber's provider of
 13 26 local exchange services chosen by the subscriber.
 13 27    d.  The plan should be based on other principles as
 13 28 the board determines are necessary and appropriate for
 13 29 the protection of the public interest, convenience,
 13 30 and necessity and consistent with the purposes of
 13 31 sections 476.30 through 476.30D and this section.
 13 32    Sec. 11.  REPORT.  The utilities board shall submit
 13 33 a report to the general assembly no later than January
 13 34 15, 1999, concerning the implementation of price
 13 35 regulation for local exchange carriers furnishing
 13 36 communications services." 
 13 37 
 13 38 
 13 39                              
 13 40 METCALF of Polk
 13 41 HF 518.312 76
 13 42 mj/cf
     

Text: H03609                            Text: H03611
Text: H03600 - H03699                   Text: H Index
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