Text: HF00052 Text: HF00054 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 476.95 DEFINITIONS. 1 2 As used in this division, unless the context otherwise 1 3 requires: 1 4 1. "Access service" means the provision of switched or 1 5 dedicated access to a local exchange network for the purpose 1 6 of enabling a telecommunications provider to originate or 1 7 terminate telecommunications service. "Access service" 1 8 includes unbundled local service provided to 1 9 telecommunications providers. 1 10 2. "Alternative telecommunications utility" means any of 1 11 the following: 1 12 a. Cable television telecommunications service provider. 1 13 b. Commercial radio mobile service provider. 1 14 c. Pay station telephone service provider. 1 15 d. Telecommunications reseller. 1 16 e. Radio common carrier. 1 17 3. "Basic local exchange services" means dial tone access, 1 18 for the transmission of two-way switched voice communications 1 19 within a local exchange area, or services allowing access to 1 20 two-way switched voice communications between exchange areas, 1 21 or services essential to the public safety. Basic local 1 22 exchange services include, but are not limited to, the 1 23 following: 1 24 a. Single party residence service, which is furnished to a 1 25 dwelling and which is used for personal or domestic purposes 1 26 and not for business, professional, or institutional purposes. 1 27 b. Business service, which is used for business, 1 28 professional, or institutional purposes. This includes single 1 29 line service and service for switched business communications 1 30 systems. 1 31 c. Dual party relay service established under chapter 1 32 477C. 1 33 d. 911 and E911 services established under chapters 34 and 1 34 34A. 1 35 4. "Basic message telecommunications service" means long 2 1 distance toll service as provided on January 1, 1995, on a 2 2 direct-dialed, single-message, dial-1 basis between local 2 3 exchanges in this state at tariff rates. "Basic message 2 4 telecommunications service" does not include any wide-area 2 5 telecommunications service; 800-prefix service; volume, 2 6 dedicated, discounted, or other interoffice services; or 2 7 individually negotiated contracts for telecommunications 2 8 services. 2 9 5. "Basic network function" means the smallest 2 10 disaggregation of local exchange transport, switching, and 2 11 loop functions that is capable of being separately listed in a 2 12 tariff and offered for sale. 2 13 6. "Broadcast service" means the one-way transmission to 2 14 the public of video or audio programming regulated under 47 2 15 U.S.C. } 301 et seq. that is provided by a broadcast station, 2 16 as defined in 47 U.S.C. } 153(dd), including any interaction 2 17 with a recipient of the programming as part of the video or 2 18 audio programming offered to the public. 2 19 7. "Cable television telecommunications service provider" 2 20 means a person who provides one or more telecommunications 2 21 services but who, during the previous taxable year, received 2 22 at least ninety percent of the person's gross income in the 2 23 particular television franchise area in which 2 24 telecommunications services are provided from the operation of 2 25 a cable television system subject in whole or in part to 47 2 26 U.S.C. } 521 et seq. 2 27 8. "Commercial radio mobile service provider" means a 2 28 radio communications service provider pursuant to sections 2 29 3(n) and 322 of the federal communications commission rules, 2 30 the Communications Act, and the Omnibus Budget Reconciliation 2 31 Act of 1993. A commercial radio mobile service provider 2 32 includes all mobile service providers utilizing mobile radio 2 33 or wireless facilities to serve the public for compensation, 2 34 including personal communication service, cellular, improved 2 35 mobile telephone service, specialized mobile radio, and other 3 1 similar services. 3 2 9. "Local exchange area" means a territorial unit 3 3 established by a telecommunications provider within which 3 4 basic local exchange services are provided and which is 3 5 described in maps filed with and approved by the board. 3 6 10. "Nonbasic local exchange services" means all 3 7 telecommunications services other than basic local exchange 3 8 services. 3 9 11. "Pay station telephone service provider" means a 3 10 person who owns or leases a pay station telephone located on 3 11 property owned or leased by that person and who otherwise does 3 12 not offer any telecommunications service directly or 3 13 indirectly to the public. 3 14 12. "Personal communications service provider" means a 3 15 person providing radio telecommunications services within the 3 16 geographic service area in which it is authorized to operate 3 17 under the specific spectrum assigned by the federal 3 18 communications commission. 3 19 13. "Radio common carrier" means a common carrier in the 3 20 domestic public land mobile radio service licensed by the 3 21 federal communications commission under 47 C.F.R. } 21.0 to 3 22 21.909 or } 22.900 to 22.921 to receive and transmit signals 3 23 from transmitters within a specified geographic area. 3 24 14. "Service rate" means the monthly charge imposed by a 3 25 telecommunications provider for a specific service, but shall 3 26 not include any charges or taxes imposed by a governmental 3 27 body which are included on customer billings by the 3 28 telecommunications provider. 3 29 15. "Telecommunications carrier" means a person who owns, 3 30 operates, manages, or controls a facility used to furnish 3 31 telecommunications services within the state directly or 3 32 indirectly to the public but does not provide basic local 3 33 exchange service, except on a resale basis. 3 34 "Telecommunications carrier" does not include an alternative 3 35 telecommunications utility. 4 1 16. "Telecommunications provider" means a person who 4 2 provides telecommunications services. 4 3 17. "Telecommunications reseller" or "reseller" means a 4 4 telecommunications utility which satisfies both of the 4 5 following: 4 6 a. Resells message telecommunications services, wide-area 4 7 telecommunications services, or other telecommunications 4 8 services which have been approved for reselling by the board. 4 9 b. Does not own, operate, manage, or control, directly or 4 10 indirectly, transmission or switching facilities with the 4 11 technological capability to provide telecommunications 4 12 services within the state. 4 13 18. "Telecommunications service" means the offering for 4 14 sale of the one-way or two-way conveyance of voice, data, or 4 15 other information at any frequency over any part of the 4 16 electromagnetic spectrum including the sale of services for 4 17 collection, storage, forwarding, switching, and delivery 4 18 incidental to such communications. "Telecommunications 4 19 services" does not include the one-way transmission to 4 20 subscribers of video programming provided by, or generally 4 21 considered comparable to programming provided by, a television 4 22 broadcast station or other programming service that makes 4 23 information available to all subscribers generally. 4 24 19. "Telecommunications utility" means a public utility as 4 25 defined in section 476.1, but does not include a 4 26 telecommunications carrier. 4 27 20. "Wide-area telecommunications service" or "WATS" means 4 28 the offering of message-based telecommunications service using 4 29 a single, dedicated access line at the originating end of the 4 30 call at a significant volume-based discount. 4 31 Sec. 2. NEW SECTION. 476.96 INCENTIVE REGULATION FOR 4 32 TELECOMMUNICATIONS UTILITIES. 4 33 1. The board may suspend any of the provisions in this 4 34 chapter or may approve a regulatory method alternative to 4 35 traditional rate-of-return regulation that does not require 5 1 suspension of any provisions in this chapter for the purpose 5 2 of providing incentives for telecommunications utilities to 5 3 achieve the goals identified in subsection 2, paragraph "a". 5 4 2. After opportunity for hearing, unless the hearing is 5 5 waived as provided in subsection 3, the board shall determine 5 6 whether it is in the public interest to suspend any of the 5 7 provisions in this chapter or to approve an alternative 5 8 regulatory method. In making this determination, the board 5 9 shall identify all of the following: 5 10 a. The goals to be achieved, which may include promoting 5 11 competition, infrastructure deployment, economic development, 5 12 consumer choice, productivity, efficiency, quality of life, 5 13 societal goals, or universal telephone service. 5 14 b. The proposed incentive and how the incentive is 5 15 expected to help achieve the identified goals. 5 16 c. The measurement to be used to evaluate successful 5 17 attainment of the identified goals. 5 18 3. If the board suspends the application of any provision 5 19 of this chapter or approves an alternative regulatory method 5 20 for a telecommunications utility, the board may waive the 5 21 hearing opportunity required under subsection 2 for any 5 22 similarly situated telecommunications utility, if the waiver 5 23 is in the public interest, and after notice to all known 5 24 interested parties. 5 25 4. The board shall regulate telecommunications utilities 5 26 in order to achieve the goals identified in subsection 2, 5 27 paragraph "a", through the development of alternative forms of 5 28 regulation. The board shall develop and approve, by order, an 5 29 incentive regulatory plan for each telecommunications utility. 5 30 The board shall not increase the regulation of a 5 31 telecommunications utility as a result of such plans. The 5 32 board shall not establish reporting requirements for a 5 33 telecommunications utility under a plan of incentive 5 34 regulation which are more onerous than the requirements which 5 35 applied to the telecommunications utility under rate-of-return 6 1 regulation. 6 2 5. Section 476.99, relating to the price regulation of 6 3 intrastate access services, applies to any alternative 6 4 regulatory plan approved pursuant to this section for a 6 5 telecommunications utility with more than fifty thousand 6 6 access lines in this state. 6 7 6. This section is not applicable to telephone utilities 6 8 electing to be price-regulated under section 476.97. 6 9 Sec. 3. NEW SECTION. 476.97 PRICE REGULATION FOR 6 10 TELECOMMUNICATIONS UTILITIES. 6 11 1. a. Notwithstanding contrary provisions of this 6 12 chapter, this section governs rates for basic local exchange 6 13 services, standard business access lines and usage by 6 14 businesses with no more than three access lines, basic message 6 15 telecommunications service, and any changes in those rates for 6 16 a telecommunications utility electing to be price-regulated. 6 17 A telecommunications utility may elect to become a price- 6 18 regulated utility by giving written notice to the board not 6 19 less than thirty days prior to the date such regulation is to 6 20 commence. 6 21 b. The board, following notice and opportunity for 6 22 hearing, may include as part of the services subject to price 6 23 regulation those services and technological features 6 24 determined by the board to be an essential component of 6 25 universal service under section 476.107, subsection 2. 6 26 2. a. A telecommunications utility which elects, within 6 27 thirty days after July 1, 1995, to become price-regulated 6 28 under this section, shall set the initial rates to be charged 6 29 under this section for services identified under subsection 1, 6 30 paragraph "a", and file the rates with the board. The rates 6 31 filed by a telecommunications utility shall not be greater 6 32 than the rates allowed for the telecommunications utility for 6 33 the same services as of December 31, 1994. The rates shall be 6 34 effective at the time specified in the filing. 6 35 b. A telecommunications utility which elects, more than 7 1 thirty days after July 1, 1995, to become price-regulated 7 2 under this section, shall set the initial rates to be charged 7 3 under this section for services identified under subsection 1, 7 4 paragraph "a", and file the rates with the board no less than 7 5 forty-five days prior to the effective date of the rates. The 7 6 rates filed by a telecommunications utility shall not be 7 7 greater than the rates allowed for the telecommunications 7 8 utility for the same services as of December 31 immediately 7 9 preceding the election. The rates shall be effective at the 7 10 time specified in the filing. 7 11 3. a. A price-regulated telecommunications utility shall 7 12 not increase its rates for services identified under 7 13 subsection 1, other than basic message telecommunications 7 14 service, for a period of twelve months after electing to 7 15 become price-regulated. A price-regulated telecommunications 7 16 utility may increase its rates for services identified under 7 17 subsection 1 following the initial twelve-month period, and at 7 18 any time for basic message telecommunications service, to the 7 19 extent that the change in the aggregate revenue-weighted price 7 20 indices does not exceed two percentage points less than the 7 21 most recent annual change in the gross domestic product price 7 22 index, as published by the federal government. The board 7 23 shall establish by rule a penalty mechanism for up to a one 7 24 percentage point increase in the percentage offset for 7 25 inadequate service provided by, or insufficient investment 7 26 made by, the telecommunications utility proposing rate 7 27 increases pursuant to this section. The board shall establish 7 28 by rule an incentive mechanism for up to a one percentage 7 29 point decrease in the percentage offset to encourage 7 30 infrastructure investment by the telecommunications utility 7 31 proposing rate increases pursuant to this section. For a 7 32 telecommunications utility with more than five hundred 7 33 thousand access lines in this state at the time of electing to 7 34 become price-regulated under this section, the percentage 7 35 offset to the change in the gross domestic product price index 8 1 shall be three percentage points and the penalty mechanism and 8 2 incentive mechanism shall be up to two percentage points. 8 3 b. Six years after July 1, 1995, and no more frequently 8 4 than every three years after that time, the board may by rule 8 5 increase or decrease the gross domestic product price index 8 6 percentage offset by a maximum of one percentage point in any 8 7 twelve-month period to reflect any statewide changes in the 8 8 productivity experience of the telecommunications industry. 8 9 The board shall adopt rules identifying the factors that the 8 10 board may consider in determining changes in the productivity 8 11 experience of the telecommunications industry. If application 8 12 of the price regulation index formula achieves a negative 8 13 result, prices shall be reduced so that the cumulative price 8 14 change for services identified under subsection 1, including 8 15 prior price reductions in these services, achieves the 8 16 negative result. 8 17 c. Annual, permitted aggregate revenue-weighted price 8 18 increases for services identified under subsection 1 may be 8 19 deferred and accumulated for a maximum of three years into a 8 20 single increase. However, the increase in any individual rate 8 21 element shall not at any time exceed ten percent or the 8 22 increase in the gross domestic product price index for the 8 23 period since the last price increase, whichever is greater. A 8 24 rate change pursuant to this subsection takes effect forty- 8 25 five days after the date on which notice is received by the 8 26 board. 8 27 d. A price-regulated telecommunications utility may reduce 8 28 the price for any service identified under subsection 1 to an 8 29 amount not less than the long-run incremental cost for such 8 30 service on one day's notice filed with the board. 8 31 e. A price-regulated telecommunications utility may alter 8 32 the rate structure for any service identified under subsection 8 33 1 on ten days' prior notice to the board, provided that the 8 34 preexisting rate structure continues to be offered to 8 35 customers. 9 1 4. a. Upon a complaint filed with the board by an 9 2 affected party or on the board's own motion, the board may 9 3 initiate an investigation of a proposed rate change under 9 4 subsection 3 within sixty days after receiving notice of the 9 5 proposed change. The board shall issue an order approving, 9 6 modifying, or rejecting the rate change within one hundred 9 7 twenty days after initiating the investigation. The board may 9 8 suspend a proposed rate structure alteration or rate increase 9 9 pending the issuance of an order under this subsection. 9 10 b. The board, in conducting an investigation under this 9 11 subsection, shall consider only the following: 9 12 (1) Allocations of costs outside of the control of the 9 13 telecommunications utility to services identified in 9 14 subsection 1. 9 15 (2) Competition. 9 16 (3) Network and service quality, improvement, and 9 17 maintenance. 9 18 (4) Changes outside the control of the telecommunications 9 19 utility in the costs of providing services identified in 9 20 subsection 1. 9 21 (5) Impact of the proposed change on the public interest. 9 22 5. A telecommunications utility shall notify customers of 9 23 a rate change under this section by a bill insert that is 9 24 included in a customer billing no later than the first billing 9 25 provided after the notice of the rate change is submitted to 9 26 the board. 9 27 6. a. Five years after a telecommunications utility 9 28 elects to become price-regulated under this section, the board 9 29 shall conduct a hearing to determine whether it is in the 9 30 public interest to continue, suspend, or modify the utility's 9 31 plan of price regulation. The board shall also review the 9 32 provisions of this chapter related to price regulation and 9 33 make a written report to the general assembly concerning any 9 34 recommended changes in those provisions by no later than 9 35 December 31 of the year in which a hearing is conducted 10 1 pursuant to this subsection. 10 2 b. In making a recommendation to the general assembly 10 3 under paragraph "a", the board shall identify all of the 10 4 following: 10 5 (1) The goals to be achieved, which may include promoting 10 6 competition, infrastructure deployment, economic development, 10 7 consumer choice, productivity, efficiency, quality of life, 10 8 societal goals, or universal service. 10 9 (2) The action to be taken and how that action is expected 10 10 to assist in achieving the identified goals. 10 11 (3) The criteria to be used to evaluate success of the 10 12 change. 10 13 c. In making a recommendation to the general assembly 10 14 under paragraph "a", the board shall also consider if the 10 15 telecommunications utility is adequately serving geographical 10 16 areas with diverse-income populations. 10 17 Sec. 4. NEW SECTION. 476.98 PRICING RESTRICTIONS &endash; 10 18 IMPUTATION TEST. 10 19 1. A telecommunications utility shall meet the imputation 10 20 test in this section if all of the following apply: 10 21 a. The telecommunications utility has a service offering 10 22 that competes with an offering of another telecommunications 10 23 provider. 10 24 b. The other telecommunications provider's offering 10 25 utilizes a service, including any unbundled service element or 10 26 basic network function, from the telecommunication utility 10 27 that is not available within the relevant market or geographic 10 28 area under reasonably comparable terms and conditions from any 10 29 other telecommunications provider. 10 30 c. The telecommunications utility's own offering uses that 10 31 same noncompetitive service, or its functional equivalent. 10 32 2. The price of a telecommunications service subject to an 10 33 imputation test shall be no less than the total of both of the 10 34 following: 10 35 a. The lost contribution of special access, switched 11 1 access, or other service for its use as an essential facility 11 2 in the provision of toll, WATS, or other service for which it 11 3 is a component. The imputation shall be in the aggregate. 11 4 b. The long-run incremental costs of all other components 11 5 of the telecommunications utility's service offering, 11 6 including access charges actually paid. 11 7 3. A telecommunications provider shall impute to itself 11 8 its internal cost, plus lost contribution of special access, 11 9 switched access, or other service, for its use as an essential 11 10 facility in the provision of toll, WATS, or other service for 11 11 which it is a component. The imputation shall be in the 11 12 aggregate. 11 13 All other providers of intrastate special access, switched 11 14 access services, toll, WATS, or other competitive service 11 15 shall impute to themselves in the aggregate their individual 11 16 cost of special or switched access or its equivalent in their 11 17 pricing. The board shall resolve any dispute that may arise 11 18 under this section. 11 19 Telecommunications services that utilize special or 11 20 switched access shall be made available for resale by the 11 21 telecommunications provider offering the service. 11 22 Sec. 5. NEW SECTION. 476.99 PRICE REGULATION OF 11 23 INTRASTATE ACCESS SERVICES. 11 24 1. Except as required to enforce this section, the board 11 25 shall not review or set the rates for intrastate access 11 26 services offered by a price-regulated telecommunications 11 27 utility with more than fifty thousand access lines in use in 11 28 this state. 11 29 2. Intrastate access service rates of a price-regulated 11 30 telecommunications utility with more than fifty thousand 11 31 access lines in use in this state shall not exceed the 11 32 utility's interstate rates for similar access services. A 11 33 price-regulated telecommunications utility shall also reduce 11 34 its intrastate carrier common line charge so as not to exceed 11 35 the utility's interstate carrier common line charge. A price- 12 1 regulated telecommunications utility shall have five years 12 2 from the date of its election to be price-regulated to meet 12 3 the requirements of this section. 12 4 3. This section does not limit the imposition of a 12 5 surcharge on access service rates, including a surcharge on 12 6 the carrier common line charge or to a substitute rate 12 7 element, as a means of collecting the share of the charge on 12 8 an access customer which is ordered pursuant to section 12 9 476.107. 12 10 Sec. 6. NEW SECTION. 476.100 NEW TELECOMMUNICATIONS 12 11 SERVICES &endash; TARIFF FILING. 12 12 1. A telecommunications utility shall not offer a new 12 13 telecommunications service to the public without first filing 12 14 a tariff for that offering with the board. A proposed tariff 12 15 offering a new telecommunications service shall be effective 12 16 on the date specified in the tariff but not earlier than ten 12 17 days after the date on which the tariff is filed with the 12 18 board. The board, upon application of the telecommunications 12 19 utility, may direct that the tariff for a new 12 20 telecommunications service be made effective earlier than ten 12 21 days. 12 22 2. The board, upon complaint or on its own motion, may 12 23 modify a tariff filed under this section if the board finds, 12 24 after opportunity for hearing, that the new telecommunications 12 25 service is offered in a manner which violates section 476.97, 12 26 476.98, or 476.99, or is otherwise adverse to the quality of 12 27 basic local exchange service, business access line and usage 12 28 service within a local calling area, or access service. 12 29 3. For purposes of this section, "new telecommunications 12 30 service" means services that are not offered by the 12 31 telecommunications utility prior to January 1, 1995, and 12 32 alternative rate structures offered after December 31, 1994, 12 33 for any telecommunications service that is offered prior to 12 34 January 1, 1995, if the rate structure continues to be 12 35 available to new and existing customers. "New 13 1 telecommunications service" includes additional functions and 13 2 features on, and technological alternatives to, any 13 3 telecommunications service offered prior to January 1, 1995. 13 4 Sec. 7. NEW SECTION. 476.101 INVESTMENT COMMITMENTS. 13 5 1. Within sixty days after a telecommunications utility 13 6 elects to become price-regulated under section 476.97, the 13 7 telecommunications utility shall file with the board a plan 13 8 outlining the telecommunications utility's commitment to 13 9 invest in telecommunications infrastructure improvements in 13 10 this state over a period of not less than six years. An 13 11 investment plan filed under this section shall include all of 13 12 the following: 13 13 a. A description of the level of planned investment in 13 14 technology and infrastructure. 13 15 b. A description of the extent to which planned investment 13 16 will make new telecommunications technology available to 13 17 customers or expand the availability of current technology. 13 18 c. A description of the planned deployment of state-of- 13 19 the-art infrastructure facilities and broadband capabilities. 13 20 d. Target dates for the deployment of the planned 13 21 technology and infrastructure improvements. 13 22 2. A telecommunications utility shall annually provide a 13 23 written progress report to the board concerning the 13 24 telecommunications utility's investment in and deployment of 13 25 infrastructure enhancements. The report shall also include 13 26 financial data concerning the financial performance of the 13 27 telecommunications utility. The board shall not establish 13 28 reporting requirements for a telecommunications utility under 13 29 a plan of price regulation which are more onerous than the 13 30 requirements which applied to the telecommunications utility 13 31 under rate-of-return regulation. 13 32 Sec. 8. NEW SECTION. 476.102 SERVICE DISCONTINUED BY 13 33 TELECOMMUNICATIONS UTILITY. 13 34 A telecommunications utility may discontinue a 13 35 telecommunication service to a local exchange area if the 14 1 board finds any of the following: 14 2 1. The service is optional and not essential to the 14 3 provision of basic local exchange service, business access 14 4 line and usage service within a local calling area, or access 14 5 services. 14 6 2. The telecommunications utility is furnishing reasonable 14 7 alternative services to customers in the exchange. 14 8 3. One or more other telecommunications providers, whether 14 9 or not the telecommunications providers are telecommunications 14 10 utilities or otherwise subject to this chapter, are furnishing 14 11 substantially the same telecommunications service, or 14 12 reasonable alternative services, to customers in the exchange. 14 13 Sec. 9. NEW SECTION. 476.103 PROHIBITED ACTS. 14 14 A telecommunications utility providing basic local exchange 14 15 service shall not do any of the following: 14 16 1. Discriminate against another telecommunications utility 14 17 or long distance carrier by refusing or delaying access to the 14 18 local exchange. 14 19 2. Refuse or delay interconnections or provide inferior 14 20 interconnections to another telecommunications provider to the 14 21 extent that facilities are available. 14 22 3. Use basic local exchange service rates, directly or 14 23 indirectly, to subsidize or offset the costs of other products 14 24 or services offered by the telecommunications utility. In 14 25 determining whether a basic local exchange service rate is 14 26 subsidizing or offsetting the costs of other products or 14 27 services offered by the telecommunications utility, the board 14 28 shall consider the long-run incremental cost, as defined in 14 29 section 476.105, of the service alleged to be subsidized. 14 30 4. Degrade the quality of access provided to another 14 31 telecommunications provider. 14 32 5. Fail to fully disclose in a timely manner, upon request 14 33 of the board or consumer advocate, all available information 14 34 necessary for the design of equipment that will meet the 14 35 specifications of the telecommunications network within the 15 1 local exchange area. 15 2 6. Sell services or products, extend credit, or offer 15 3 other terms and conditions to an affiliate of the 15 4 telecommunications provider which are more favorable than 15 5 those offered to others. 15 6 Sec. 10. NEW SECTION. 476.104 INTERLATA AND INTRALATA 15 7 CERTIFICATION. 15 8 1. A telecommunications utility, which is restricted under 15 9 federal law or any consent decree approved by a federal 15 10 district court, shall not provide interlata service before the 15 11 availability of presubscription on an intralata basis in all 15 12 of its exchanges except those exchanges where it is not 15 13 technically feasible to offer intralata presubscription due to 15 14 the action or inaction of a switch vendor. A 15 15 telecommunications utility which is subsequently allowed to 15 16 provide interlata service as a result of the removal of any 15 17 restrictions and the satisfaction of the conditions of this 15 18 subsection, shall notify the board of its intent to provide 15 19 such service no less than sixty days prior to offering the 15 20 service. 15 21 2. Notwithstanding subsection 1, the board may suspend the 15 22 telecommunications utility's authority to provide such service 15 23 after consideration of the following: 15 24 a. Whether the provision of such service is in the public 15 25 interest. 15 26 b. Whether the utility will provide interconnection to its 15 27 local exchange area under reasonable terms and conditions. 15 28 c. Whether the utility will permit appropriate resale and 15 29 sharing of its services. 15 30 d. Whether the utility will provide unbundled services 15 31 under reasonable terms and conditions. 15 32 e. Whether competition in the interlata marketplace will 15 33 be enhanced or hindered. 15 34 3. The board may impose terms and conditions upon the 15 35 telecommunications utility in permitting the offering of such 16 1 services which are necessary to protect the public interest 16 2 and promote competition. 16 3 4. The board shall not authorize a telecommunications 16 4 provider other than the certificated local exchange 16 5 telecommunications utility to be presubscribed to handle 16 6 interexchange calls within local market areas as defined by 16 7 the board or in local access and transport areas as 16 8 established under federal court order unless the current 16 9 certificated local exchange telecommunications utility is 16 10 authorized, without exception, to complete interexchange calls 16 11 between all local market areas and local access and transport 16 12 areas on a presubscribed basis. 16 13 Sec. 11. NEW SECTION. 476.105 LONG-RUN INCREMENTAL COST. 16 14 As used in this division, long-run incremental cost is 16 15 equal to either of the following: 16 16 1. The total forward-looking costs, using least cost 16 17 technology that reasonably can be implemented based on 16 18 currently available technology, of a telecommunications 16 19 service, relevant group of services, or basic network function 16 20 that would be avoided if the telecommunications provider had 16 21 never offered the telecommunications service, group of 16 22 services, or basic network function. 16 23 2. The total cost that the telecommunications provider 16 24 would incur if it were to initially offer the 16 25 telecommunications service, group of services, or basic 16 26 network function for the entire current demand, given that the 16 27 telecommunications provider already produces all of its other 16 28 services. 16 29 Sec. 12. NEW SECTION. 476.106 ELECTRONIC PUBLISHING. 16 30 1. Except for public service information such as time and 16 31 temperature or directory information, a telecommunications 16 32 provider shall not provide electronically published news, 16 33 feature or entertainment material of the type generally 16 34 published in newspapers, or electronic advertising services, 16 35 except through an electronic publishing subsidiary or 17 1 affiliate. A telecommunications provider, without editing 17 2 content, may resell news, or feature or entertainment material 17 3 of the type generally published in newspapers, if the news or 17 4 material is purchased from an unaffiliated entity or from an 17 5 electronic publishing subsidiary or affiliate that makes the 17 6 material available to all other persons under the same rates, 17 7 terms, and conditions. 17 8 2. This section does not prohibit a telecommunications 17 9 provider from electronically advertising its own services or 17 10 from providing tariffed telecommunications services to a 17 11 subsidiary, affiliate, or unaffiliated entity that provides 17 12 electronically published news, features or entertainment 17 13 material, or electronic advertising services. 17 14 3. Services subject to this section are not subject to any 17 15 other provision in this chapter. 17 16 4. The board may adopt rules which establish the elements 17 17 necessary to demonstrate that an electronic publishing 17 18 subsidiary or affiliate is sufficiently independent of a 17 19 telecommunications provider. Elements may include the makeup 17 20 of the board of directors of the subsidiary or affiliate and 17 21 the amount of information, facilities, or other resources that 17 22 are shared by the telecommunications provider and the 17 23 subsidiary or affiliate. 17 24 Sec. 13. NEW SECTION. 476.107 UNIVERSAL SERVICE. 17 25 1. UNIVERSAL SERVICE DEFINED. As used in this chapter, 17 26 unless the context otherwise requires, "universal service" 17 27 includes the availability of a basic set of essential 17 28 telecommunications services and access to advanced service 17 29 capabilities anywhere in this state. 17 30 2. ESSENTIAL SERVICES. Before January 1, 1996, and 17 31 biennially thereafter, the board shall adopt rules that define 17 32 a basic set of essential telecommunications services that 17 33 shall be available to all customers at affordable prices and 17 34 that are a necessary component of universal service. These 17 35 essential services shall be based on market, social, economic 18 1 development, and infrastructure development principles rather 18 2 than on specific technologies or providers. For rules adopted 18 3 before January 1, 1996, a reasonable time for the availability 18 4 of the defined set of service capabilities shall be not later 18 5 than January 1, 2000, and, for rules adopted after January 1, 18 6 1996, a reasonable time for the availability of additional 18 7 service capabilities in the defined set shall be no later than 18 8 seven years after the effective date of the rules. 18 9 3. ADMINISTRATION OF UNIVERSAL SERVICE FUND. 18 10 a. The board may hold a hearing on the need for universal 18 11 service support and upon a finding that a need exists for a 18 12 universal service fund, the board shall do all of the 18 13 following: 18 14 (1) Direct the establishment of the universal service 18 15 fund. 18 16 (2) Contract for the administration of the universal 18 17 service fund. 18 18 (3) Obtain an annual independent audit of the universal 18 19 service fund. 18 20 (4) Require that moneys in the universal service fund be 18 21 used only for the following purposes: 18 22 (a) To assist customers located in areas of this state 18 23 that have relatively high costs of telecommunications 18 24 services, and low-income customers and disabled customers in 18 25 obtaining affordable access to a basic set of essential 18 26 telecommunications services. 18 27 (b) To assist in the deployment of advanced service 18 28 capabilities of a modern telecommunications infrastructure 18 29 throughout the state. 18 30 (c) To promote affordable access throughout this state to 18 31 high-quality education, library, and health care information 18 32 services. 18 33 (d) To administer the universal service fund. 18 34 (5) Adopt rules to determine whether a telecommunications 18 35 provider, the customers of a telecommunications provider, or 19 1 another person shall be assisted by the universal service fund 19 2 for any use under paragraph "a". Only a telecommunications 19 3 provider who has an obligation to serve under their 19 4 certificate of public convenience and necessity pursuant to 19 5 section 476.29 shall directly benefit from assistance from the 19 6 universal service fund. 19 7 (6) Consider all of the following in establishing the 19 8 services and equipment which may be assisted by the universal 19 9 service fund: 19 10 (a) The impact of the assistance on all members of the 19 11 public and the telecommunications industry. 19 12 (b) Eligibility requirements for assistance recipients. 19 13 (c) The costs of administering the assistance. 19 14 (d) The extent to which the fund preserves and promotes an 19 15 available and affordable basic set of essential 19 16 telecommunications services, encourages access to the advanced 19 17 service capabilities of a modern telecommunications 19 18 infrastructure throughout the state, and promotes economic 19 19 development. 19 20 b. The board shall not use funds from the universal 19 21 service fund to subsidize the operation of or a connection to 19 22 the Iowa communications network. 19 23 4. CONTRIBUTIONS TO THE FUND. 19 24 a. (1) The board shall require all telecommunications 19 25 providers to contribute to the universal service fund 19 26 beginning on January 1, 1996. 19 27 (2) The board may require a person other than a 19 28 telecommunications provider to contribute to the universal 19 29 service fund if, after notice and opportunity for hearing, the 19 30 board determines that the person is offering a nontraditional 19 31 broadcast service in this state that competes with a 19 32 telecommunications service provided in this state for which a 19 33 contribution is required under this section. 19 34 (3) The board shall designate the method by which the 19 35 contributions under this lettered paragraph "a" shall be 20 1 calculated and collected. Contributions shall be based only 20 2 on the gross operating revenues from the retail provision of 20 3 broadcast services identified by the board under subparagraph 20 4 (2) and on retail or end-user intrastate telecommunications 20 5 services in this state of the telecommunications providers 20 6 subject to the contribution. 20 7 b. The board shall designate by rule the providers or 20 8 other persons subject to paragraph "a" and the required rates 20 9 of contribution. 20 10 c. In determining the contributions to be assessed under 20 11 paragraph "a", the board shall consider all of the following: 20 12 (1) The impact of the contributions on all members of the 20 13 public and the telecommunications industry. 20 14 (2) The fairness of the amount of the contributions and 20 15 the methods of collection. 20 16 (3) The costs of administering the collection of the 20 17 contributions. 20 18 5. RULES REVIEW. At least biennially, the board shall 20 19 review and revise, as appropriate, rules adopted under this 20 20 section. 20 21 6. ANNUAL REPORT. The board shall submit annually a 20 22 universal service fund report to the general assembly. The 20 23 report shall include information about all of the following: 20 24 a. The affordability of and accessibility to a basic set 20 25 of essential telecommunications services. 20 26 b. The affordability of and accessibility to high-quality 20 27 education, library, and health care information services. 20 28 c. Financial assistance provided under the universal 20 29 service fund. 20 30 7. PENALTIES. 20 31 a. A telecommunications provider who fails or refuses to 20 32 pay the contribution required under subsection 3 may be 20 33 assessed an administrative penalty by the board of not less 20 34 than one hundred dollars nor more than ten thousand dollars. 20 35 Each day of continued violation constitutes a separate 21 1 offense. 21 2 b. The board, in determining the amount of the 21 3 administrative penalty to be assessed, shall consider all of 21 4 the following: 21 5 (1) The appropriateness of the forfeiture to the volume of 21 6 business of the telecommunications provider. 21 7 (2) The gravity of the violation. 21 8 (3) Any good faith attempt to achieve compliance after the 21 9 telecommunications provider or an officer, agent, or employee 21 10 of the telecommunications provider receives notice of the 21 11 violation. 21 12 (4) The financial gain sought by the telecommunications 21 13 provider by not paying the contribution required under 21 14 subsection 4. 21 15 Sec. 14. NEW SECTION. 476.108 REQUIRED INTERCONNECTION. 21 16 A telecommunications provider which owns, leases, or 21 17 otherwise controls facilities used in the provision of basic 21 18 local exchange or interexchange telephone service and which is 21 19 certificated by the board to offer these services, shall 21 20 permit connections to be made between its facilities and those 21 21 of another certificate holder under terms and conditions which 21 22 are nondiscriminatory under like conditions. If an agreement 21 23 on these terms and conditions, including an appropriate 21 24 interconnection charge, is not reached between the affected 21 25 telecommunications providers, either provider may apply to the 21 26 board to resolve the matter. 21 27 Sec. 15. Section 476.29, Code 1995, is amended to read as 21 28 follows: 21 29 476.29 CERTIFICATES FOR PROVIDING LOCAL TELECOMMUNICATIONS 21 30 SERVICES. 21 31 1.After September 30, 1992, a utilityA 21 32 telecommunications provider, other than an alternative 21 33 telecommunications utility, must have a certificate of public 21 34 convenience and necessity issued by the board before 21 35 furnishing land-line local telephone service in this state. 22 1 No lines or equipment shall be constructed, installed, or 22 2 operated for the purpose of furnishing the service before a 22 3 certificate has been issued. Alternative telecommunications 22 4 utilities, other than commercial radio mobile service 22 5 providers, personal communications service providers, radio 22 6 common carriers, or other commercial wireless providers 22 7 regulated by the federal communications commission, must 22 8 obtain a certificate of authority before furnishing any 22 9 telecommunications services or products in this state. As 22 10 used in this section, a certificate refers to both a 22 11 certificate of public convenience and assembly and a 22 12 certificate of authority. 22 13 2. The board shall require an applicant for a certificate 22 14 of authority to identify its service area, the types of 22 15 services to be offered, a statement showing proof of financial 22 16 viability, a statement of compliance with the rules of 22 17 standardization and operating procedures, and a statement of 22 18 compliance with the board's requirements for quality of 22 19 service. The board shall neither deny nor revoke a 22 20 certificate of authority of any telecommunications provider 22 21 except for failure to comply with the requirements of this 22 22 subsection. 22 232.3.Except as provided in subsection 12, aA certificate 22 24 shall be issued by the board, after notice and opportunity for 22 25 hearing, if the board determines that the service proposed to 22 26 be rendered will promote the public convenience and necessity. 22 27 The board may establish reasonable conditions or restrictions 22 28 on the certificate at the time of issuance. 22 293.4. A certificate is transferable, subject to approval 22 30 of the board pursuant to section 476.20, subsection 1, and for22 31purposes of a rate-regulated local exchange utility shall be22 32treated by the board in the same manner as a reorganization22 33pursuant to sections 476.76 and 476.77. 22 344.5.EachA certificate of public convenience and 22 35 necessity in effect on December 31, 1994, for a 23 1 telecommunications utility shall remain in effect and the 23 2 utility shall continue offering or providing service to the 23 3 extent of the prior authorization. The certificate of public 23 4 convenience and necessity shall define the service territory 23 5 in whichland-line local telephone service will be provided23 6 the utility has an obligation to serve, unless explicitly 23 7 excepted from this requirement by the board. The service 23 8 territory shall be shown on maps and other documentation as 23 9 the board may require to be filed with the board.The board23 10shall, by rule, specify the style, size, and kind of map or23 11other documentation, and the information to be shown.A 23 12 telecommunications utility holding a certificate of public 23 13 convenience and necessity may apply for a certificate of 23 14 authority to provide telecommunications services in areas 23 15 other than the defined service territory contained in its 23 16 certificate of public convenience and necessity. 23 175.6.Each local exchange utility has an obligation to23 18serve all eligible customers within the utility's service23 19territory, unless explicitly excepted from this requirement by23 20the board.The authority of every telecommunications utility 23 21 with a certificate or an amended certificate under this 23 22 section is statewide and nonexclusive. The existence of a 23 23 certificate of authority or amended certificate of authority 23 24 or the issuance of a certificate of authority or amended 23 25 certificate of authority to any telecommunications provider 23 26 shall not preclude the board from authorizing additional 23 27 telecommunications providers to provide the same or equivalent 23 28 service within the same territory. 23 296.7. The certificate and tariffs approved by the board 23 30 are the only authority required for the utility to furnish 23 31 land-line local telephone service. However, to the extent not 23 32 inconsistent with this section, the power to regulate the 23 33 conditions required and manner of use of the highways, 23 34 streets, rights-of-way, and public grounds remains in the 23 35 appropriate public authority. 24 17.8. The inclusion of any facilities or service territory 24 2 of alocal exchangetelecommunications utility within the 24 3 boundaries of a city does not impair or affect the rights of 24 4 the utility to provide land-line local telephone service in 24 5 the utility's service territory. 24 68. An agreement between local exchange utilities to24 7designate service territory boundaries and customers to be24 8served by the utilities, or for exchange of customers between24 9utilities, when approved by the board after notice to affected24 10persons and opportunity for hearing, is valid and enforceable24 11and shall be incorporated into the appropriate certificates.24 12The board shall approve an agreement if the board finds the24 13agreement will result in adequate service to all areas and24 14customers affected and is in the public interest.24 15 9. A certificatemay, after notice and opportunity for 24 16 hearing, may be revoked by the board for failure of autility24 17 telecommunications provider to furnish reasonably adequate 24 18 telephone service and facilities. The board may also order a 24 19 revocation affecting less than the entire service territory, 24 20 or may place appropriate conditions on autility24 21 telecommunications provider to ensure reasonably adequate 24 22 telephone service. Prior to revocation proceedings, the board 24 23 shall notify theutilitytelecommunications provider of any 24 24 inadequacies in its service and facilities and allow the 24 25utilitytelecommunications provider a reasonable time to 24 26 eliminate the inadequacies. 24 27 10.In the event thatIf eighty percent or more of the 24 28 subscribers in a community served by alocal exchange utility24 29 telecommunications provider sign a petition indicating they 24 30 are adversely affected by school reorganization or economic 24 31 dislocation and prefer to have their local telephone service 24 32 provided by a differentlocal exchange utility24 33 telecommunications provider and file that petition with the 24 34 board, the board, after notice and opportunity for hearing, 24 35 shall determine whether the certificate of public convenience 25 1 and necessity held by thelocal exchange utility25 2 telecommunications provider shall be revoked or conditioned as 25 3 provided in subsection 9. 25 4 11. The board shall assure that all territory in the state 25 5 is served by alocal exchange utilitytelecommunications 25 6 provider. If at any time due to certificate of public 25 7 convenience and necessity revocation proceedings, 25 8 discontinuance of service proceedings, or any other reason, it 25 9 appears that a particular territory may not be served by any 25 10local exchange utilitytelecommunications provider, the board 25 11 may, after notice to interested persons and opportunity for 25 12 hearing, include all or part of the territory in the 25 13 certificate of public convenience and necessity of another 25 14local exchange utility or utilitiestelecommunications 25 15 provider or providers. In determining thelocal exchange25 16utility or utilitiestelecommunications provider or providers 25 17 to be authorized or required to serve, the board shall 25 18 consider the willingness and ability of theutilities25 19 telecommunications provider or providers to serve, the 25 20 location of existing service facilities, the community of 25 21 interest of the customers involved, and any other factors 25 22 deemed relevant to the public interest. 25 2312. The board, on or prior to September 30, 1992, shall25 24issue to each local exchange utility in the state, without a25 25contested case proceeding, a nonexclusive certificate to serve25 26the area included within the utility's service territory25 27boundaries as shown by the service territory boundary maps on25 28record with the board on January 1, 1992. The board shall25 29adopt rules pursuant to chapter 17A to implement the issuance25 30of certificates.25 31a. A customer served by a local exchange utility, but25 32outside the service territory of that utility when the25 33utility's certificate is issued, shall continue to be served25 34by that utility for as long as that customer remains eligible25 35to receive and requests service.26 1b. If more than one utility has on file maps indicating26 2service in the same territory, the board shall request the26 3involved utilities to resolve the overlap. If the overlap is26 4not resolved in a reasonable time, the board, after notice to26 5interested persons and opportunity for hearing, shall26 6determine the boundary, taking into consideration the criteria26 7listed in subsection 11.26 813.12. Whenever the board or the consumer advocate deems 26 9 it necessary to carry out duties related to the implementation 26 10 of this section, the board or consumer advocate may contract 26 11 for necessary services with persons who are not state 26 12 employees including, but not limited to, cartographers, 26 13 engineers, and surveyors. The cost of services contracted for 26 14 shall not be paid from appropriated funds, but shall be 26 15 assessed pro rata to allutilitiestelecommunications 26 16 providers receiving certificates of public convenience and 26 17 necessity based on thenumber of each utility's access lines26 18 gross operating revenues from the provision of retail or end- 26 19 user intrastate telecommunications services in this state. 26 2014.13. This section does not prevent the board from 26 21 adopting rules requiring or allowinglocal exchangerate- 26 22 regulated telecommunications utilities to provide extended 26 23 area service or adjacent exchange service. 26 2415.14. The board shall provide a written report to the 26 25 general assembly no later than January 20, 2005, describing 26 26 the current status of local telephone service in this state. 26 27 The report shall include at a minimum the number of 26 28 certificates of convenience and necessity issued, the number 26 29 of current providers of local telephone service, and any other 26 30 information deemed appropriate by the board. 26 31 Sec. 16. Section 476.74, subsection 5, Code 1995, is 26 32 amended to read as follows: 26 33 5. EXEMPTION. The provisions of this section requiring 26 34 filing of contracts or agreements with the board shall not 26 35 apply to telecommunications providers regulated under section 27 1 476.97 or to transactions with an affiliate where the amount 27 2 of consideration involved is not in excess of fifty thousand 27 3 dollars or five percent of the capital equity of the utility, 27 4 whichever is smaller. However, regularly recurring payments 27 5 under a general or continuing arrangement which aggregate a 27 6 greater annual amount shall not be broken down into a series 27 7 of transactions to come within this exemption. In any 27 8 proceeding involving the rates, charges or practices of the 27 9 public utility, the board may exclude from the accounts of the 27 10 public utility any unreasonable payment or compensation made 27 11 pursuant to any contract or arrangement which is not required 27 12 to be filed under this subsection. 27 13 Sec. 17. Section 476.75, Code 1995, is amended to read as 27 14 follows: 27 15 476.75 AUDITS REQUIRED. 27 16 The board may periodically retain a nationally or 27 17 regionally recognized independent auditing firm to conduct an 27 18 audit of the transactions between a public utility, other than 27 19 a telecommunications utility, and its affiliates. An 27 20 affiliate transaction audit shall not be conducted more 27 21 frequently than every three years, unless ordered by the board 27 22 for good cause. The cost of the audit shall be paid by the 27 23 public utility to the independent auditing firm and shall be 27 24 included in its regulated rates and charges, unless otherwise 27 25 ordered by the board for good cause after providing the public 27 26 utility the opportunity for a hearing on the board's decision. 27 27 Sec. 18. Section 476.76, Code 1995, is amended to read as 27 28 follows: 27 29 476.76 REORGANIZATION DEFINED. 27 30 For purposes of this division unless the context otherwise 27 31 requires, "reorganization" means either of the following: 27 32 1. The acquisition, sale, lease, or any other disposition, 27 33 directly or indirectly, including by merger or consolidation, 27 34 of the whole or any substantial part of a public utility's 27 35 assets. 28 1 2. The purchase or other acquisition or sale or other 28 2 disposition of the controlling capital stock of any public 28 3 utility, other than a telecommunications utility, either 28 4 directly or indirectly. 28 5 Sec. 19. DIRECTIONS TO CODE EDITOR. The Code editor shall 28 6 codify sections 476.95 through 476.108 as a new division in 28 7 chapter 476 entitled "Alternative Regulation of 28 8 Telecommunications Utilities". 28 9 EXPLANATION 28 10 This bill relates to the regulation of telecommunications 28 11 by establishing incentive and price regulation for 28 12 telecommunications providers, price restrictions for certain 28 13 services, required investment commitments, a universal service 28 14 fund, and certain other requirements. 28 15 New section 476.95 establishes definitions used in the 28 16 bill. 28 17 New section 476.96 establishes incentive regulation for 28 18 telecommunications utilities. The board may suspend any of 28 19 the provisions in chapter 476 or may approve a regulatory 28 20 method alternative to traditional rate-of-return regulation 28 21 that does not require suspension of any provisions in chapter 28 22 476 for the purpose of providing incentives for 28 23 telecommunications utilities to achieve goals which may 28 24 include promoting competition, infrastructure deployment, 28 25 economic development, consumer choice, productivity, 28 26 efficiency, quality of life, societal goals, or universal 28 27 telephone service. 28 28 New section 476.97 provides that a telecommunications 28 29 utility may elect to become price-regulated under the section. 28 30 The section provides for the setting of initial rates for 28 31 services which may be subject to price regulation including 28 32 basic local exchange service, standard business access lines 28 33 and usage by businesses with no more than three access lines, 28 34 and basic message telecommunications service. The section 28 35 provides that five years after a telecommunications utility 29 1 elects to become price-regulated under this section, the board 29 2 is to conduct a hearing to determine whether it is in the 29 3 public interest to continue, suspend, or modify the plan of 29 4 price regulation under which the telecommunications utility 29 5 operates. The board is also to review existing statutory 29 6 language related to price regulation and file a written report 29 7 with the general assembly concerning any recommendations of 29 8 the board relating to that language. The board shall report 29 9 its recommendations to the general assembly by December 31 of 29 10 the year in which the initial hearing is held under the 29 11 section. 29 12 New section 476.98 establishes an imputation test for 29 13 establishing a price below which certain services offered by 29 14 telecommunications utilities may not be priced. 29 15 New section 476.99 provides for the price regulation of 29 16 intrastate access services. 29 17 New section 476.100 provides that a telecommunications 29 18 utility shall not offer a new telecommunications service to 29 19 the public without first filing a tariff for that offering 29 20 with the board. 29 21 New section 476.101 establishes certain investment 29 22 requirements for telecommunications utilities electing to be 29 23 price-regulated. 29 24 New section 476.102 establishes criteria under which a 29 25 telecommunications utility may discontinue a service. 29 26 New section 476.103 establishes certain acts which a 29 27 telecommunications utility is prohibited from engaging in. 29 28 New section 476.104 provides that a telecommunications 29 29 utility, which is restricted under federal law or any consent 29 30 decree approved by a federal district court, shall not provide 29 31 interlata service before the availability of presubscription 29 32 on an intralata basis in all of its exchanges except those 29 33 exchanges where it is not technically feasible to offer 29 34 intralata presubscription due to the action or inaction of a 29 35 switch vendor. Interlata service means toll service that 30 1 originates and terminates between local access transport area, 30 2 and intralata service means toll service that originates and 30 3 terminates within the same local access transport area. The 30 4 section also provides that a telecommunications utility, which 30 5 is subsequently allowed to provide interlata service as a 30 6 result of the removal of any restrictions and the satisfaction 30 7 of the conditions of this subsection, shall notify the board 30 8 of its intent to provide such service no less than 60 days 30 9 prior to offering the service. 30 10 New section 476.105 creates a definition for long-run 30 11 incremental cost. 30 12 New section 476.106 provides that except for public service 30 13 information such as time and temperature or directory 30 14 information, a telecommunications provider may not provide 30 15 electronically published news, feature or entertainment 30 16 material of the type generally published in newspapers, or 30 17 electronic advertising services, except through an electronic 30 18 publishing subsidiary or affiliate. The section provides that 30 19 a telecommunications provider may without editing content, 30 20 resell news, or feature or entertainment material of the type 30 21 generally published in newspapers, if the news or material is 30 22 purchased from an unaffiliated entity or from an electronic 30 23 publishing subsidiary or affiliate that makes the material 30 24 available to all other persons under the same rates, terms, 30 25 and conditions. 30 26 New section 476.107 defines universal service and provides 30 27 for the creation of a universal service fund upon a finding by 30 28 the board that a need exists for such fund. The fund is to be 30 29 used to assist customers located in areas of this state that 30 30 have relatively high costs of telecommunications services, and 30 31 low-income customers and disabled customers in obtaining 30 32 affordable access to a basic set of essential 30 33 telecommunications services; to assist in the deployment of 30 34 advanced service capabilities of a modern telecommunications 30 35 infrastructure throughout the state; to promote affordable 31 1 access throughout this state to high-quality education, 31 2 library and health care information services; and to 31 3 administer the universal service fund. Funds from the 31 4 universal service fund shall not be used to subsidize the 31 5 operation of or a connection to the Iowa communications 31 6 network. 31 7 New section 476.108 provides that a telecommunications 31 8 provider who owns, leases, or otherwise controls facilities 31 9 used in the provision of local exchange or interexchange 31 10 telephone service and is certificated by the board to offer 31 11 these services must permit connections to be made between its 31 12 facilities and those of another certificate holder under terms 31 13 and conditions which are nondiscriminatory under like 31 14 conditions. 31 15 Conforming amendments are made to sections 476.29, 476.74, 31 16 476.75, and 476.76. 31 17 LSB 1620HH 76 31 18 mj/sc/14.1
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