Text: HSB00166 Text: HSB00168 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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1 1 Section 1. NEW SECTION. 476B.1 DEFINITIONS.
1 2 As used in this chapter, unless the context otherwise
1 3 requires:
1 4 1. "Board" means the utilities board within the utilities
1 5 division of the department of commerce.
1 6 2. "Incumbent local exchange carrier" or "carrier" means a
1 7 telecommunications carrier or its successor issued a
1 8 certificate of convenience and necessity under section 476.29
1 9 on or before September 30, 1992.
1 10 3. "Local exchange service" means single line, voice grade
1 11 residential service, including touch tone service, in a
1 12 defined exchange area.
1 13 4. "Telecommunications provider" or "provider" means a
1 14 person offering communications services to the public for
1 15 compensation in this state.
1 16 5. "Wholesale services" means unbundled elements and
1 17 services available to a telecommunications provider pursuant
1 18 to section 251 of the federal Telecommunications Act of 1996.
1 19 Sec. 2. NEW SECTION. 476B.2 REGULATION OF
1 20 TELECOMMUNICATIONS PROVIDERS BY BOARD.
1 21 The board, with respect to the regulation of
1 22 telecommunications providers, shall do all of the following:
1 23 1. Fulfill the regulatory requirements and duties set
1 24 forth under the federal Telecommunications Act of 1996.
1 25 2. Establish and administer the universal service fund as
1 26 provided in section 476B.6.
1 27 3. Establish and administer the local exchange service
1 28 assistance program as provided in section 476B.7.
1 29 4. Issue and revoke, as appropriate, certificates of
1 30 public convenience and necessity as provided in section
1 31 476B.8.
1 32 5. Establish a process for resolving disputes between
1 33 telecommunications providers regarding wholesale services and
1 34 the interconnection of lines and facilities of such providers
1 35 where an interconnection agreement does not exist between such
2 1 providers. The board shall initiate the process upon receipt
2 2 of a written request from a provider involved in a dispute.
2 3 The board shall resolve the dispute only after an opportunity
2 4 for hearing after reasonable notice.
2 5 6. Establish a process for resolving disputes between
2 6 telecommunications providers who are parties to an
2 7 interconnection agreement. The board shall resolve such
2 8 disputes as provided in and consistent with the
2 9 interconnection agreement.
2 10 7. Establish a process to resolve service disputes between
2 11 telecommunications providers and retail customers. The board
2 12 shall initiate the process upon receipt of a written request
2 13 from a provider or a customer involved in a dispute. The
2 14 board shall resolve the dispute only after an opportunity for
2 15 hearing after reasonable notice.
2 16 8. Obtain information from telecommunications providers
2 17 necessary to perform the duties of the board under this
2 18 chapter.
2 19 Sec. 3. NEW SECTION. 476B.3 DESIGNATED POWERS.
2 20 The board, in addition to any other powers and duties set
2 21 forth under this chapter, shall also exercise the power
2 22 granted under the following:
2 23 1. Section 476.2, subsections 1 through 3.
2 24 2. Section 476.10. However, provisions of section 476.10,
2 25 which relate to public utilities exempt from rate regulation,
2 26 only apply to telecommunications providers that are rural
2 27 telephone companies exempt from certain provisions of the
2 28 federal Telecommunications Act of 1996.
2 29 3. Section 476.14.
2 30 4. Section 476.97, subsection 11.
2 31 Sec. 4. NEW SECTION. 476B.4 PRICE AND COST PRINCIPLES.
2 32 With respect to wholesale services, the prices of which are
2 33 subject to the jurisdiction of the board, the board shall
2 34 determine the prices to be charged by an incumbent local
2 35 exchange carrier to another telecommunications provider,
3 1 whether or not such services are provided pursuant to an
3 2 agreement between such carrier and provider, consistent with
3 3 the following:
3 4 1. The price for unbundled elements shall be set at a
3 5 level sufficient to recover the full, actual costs of
3 6 providing such elements, as indicated on the books and records
3 7 of the incumbent local exchange carrier. The board shall only
3 8 use Iowa specific cost information of such carrier, including,
3 9 but not limited to, network factors that recognize the need
3 10 for spare capacity, actual construction costs, joint and
3 11 common costs, and a reasonable profit. The board shall not
3 12 use federal default proxy prices.
3 13 2. For capitalized assets, depreciation expense shall be
3 14 computed using the economic lives used for tax purposes as
3 15 reflected on the books and records of the incumbent local
3 16 exchange carrier.
3 17 3. External or internal subsidies shall not be used to
3 18 calculate actual costs. Imputations shall not be made between
3 19 affiliate carriers and providers.
3 20 4. Rates for wholesale services shall not be deaveraged to
3 21 reflect costs until corresponding retail rates are similarly
3 22 deaveraged, or until funds are being disbursed from a federal
3 23 or state universal service fund to offset averaged retail
3 24 rates.
3 25 5. The wholesale price for each telecommunications service
3 26 available for resale shall be set at the retail cost and may
3 27 exclude the actual avoided costs of functions related directly
3 28 to offering the same telecommunications service at retail
3 29 cost, as follows:
3 30 a. Retail advertising and promotion.
3 31 b. Retail billing.
3 32 c. Retail order taking.
3 33 d. Retail marketing expense.
3 34 6. A telecommunications provider which requests services
3 35 from the incumbent local exchange carrier that are different
4 1 or beyond the services which such carrier provides for itself
4 2 or its customers, shall prepay any increased costs incurred by
4 3 the incumbent local exchange carrier to provide such services.
4 4 Sec. 5. NEW SECTION. 476B.5 INTEREXCHANGE SERVICE RATES
4 5 LIMITATION.
4 6 Rates charged by a provider of interexchange
4 7 telecommunications services to subscribers in rural and high
4 8 cost areas shall be no higher than the rates charged by such
4 9 provider to that provider's subscribers in urban areas.
4 10 Sec. 6. NEW SECTION. 476B.6 UNIVERSAL SERVICE FUND.
4 11 1. The board shall adopt and administer a plan to support
4 12 universal service in a competitively neutral manner. As part
4 13 of this plan, the board shall determine the difference between
4 14 the cost of providing universal service and the prices
4 15 determined to be appropriate for such service.
4 16 2. The plan adopted by the board shall be based on the
4 17 following principles:
4 18 a. The plan shall ensure the continued viability of
4 19 universal service by maintaining quality universal service at
4 20 just and reasonable rates.
4 21 b. The plan shall define the nature and extent of the
4 22 universal service encompassed within a carrier's or provider's
4 23 service obligation.
4 24 c. The plan shall establish specific and predictable
4 25 mechanisms to provide competitively neutral support for
4 26 universal service. The mechanisms shall include a
4 27 nondiscriminatory mechanism by which funds to support
4 28 universal service shall be collected, and a mechanism for
4 29 disbursement of support funds to eligible customers, either
4 30 directly to those customers, or to the customer's provider of
4 31 local exchange service, as requested by the customer. Such
4 32 mechanisms shall be based on census block study areas and
4 33 shall not be averaged across the state by a telecommunications
4 34 provider.
4 35 d. The plan should be based on other principles as the
5 1 board determines are necessary and appropriate for the
5 2 protection of the public interest, convenience, and necessity,
5 3 and consistent with this chapter.
5 4 3. All telecommunications providers are required to
5 5 participate in funding the support for universal service.
5 6 4. Moneys from the fund are not available to a
5 7 telecommunications provider which provides local exchange
5 8 service predominantly through the use of the facilities of
5 9 another provider.
5 10 Sec. 7. NEW SECTION. 476B.7 LOCAL EXCHANGE SERVICE
5 11 ASSISTANCE.
5 12 1. The board shall establish a program to assist a
5 13 telecommunications provider who provides local exchange
5 14 service at the principal residence of a qualifying customer.
5 15 For purposes of this section, "qualifying customer" means a
5 16 person who satisfies the eligibility standards of low-income
5 17 energy assistance and supplemental security income under the
5 18 federal Social Security Act, and the federal lifeline
5 19 connection assistance expense allocation.
5 20 2. The program shall provide a discount of twenty-five
5 21 percent from recurring charges to a qualifying customer for
5 22 the first line of residential local exchange service. The
5 23 program shall also provide a discount of twenty-five percent
5 24 from any mileage charges associated with local exchange
5 25 service which are paid by a qualifying customer.
5 26 3. a. The board shall annually determine and impose a
5 27 uniform charge on each business and residential access line in
5 28 an amount sufficient to reimburse each provider which provides
5 29 local exchange service assistance to eligible customers and to
5 30 reimburse the Iowa community action association for
5 31 administrative expenses incurred in administering the program.
5 32 b. Notwithstanding paragraph "a", the uniform charge shall
5 33 not be assessed against a qualifying customer, the state, or a
5 34 political subdivision.
5 35 c. Upon collecting the charge imposed under paragraph "a",
6 1 the provider, from the total charges collected, shall retain
6 2 an amount sufficient to reimburse the provider for the costs
6 3 incurred by the provider in providing local exchange service
6 4 assistance pursuant to this section. Any remaining amount of
6 5 the charges collected shall be remitted to the board. The
6 6 board shall reimburse the Iowa community action association
6 7 for administrative expenses incurred. The board shall remit
6 8 any remaining amounts to the treasurer of state for deposit in
6 9 the general fund of the state.
6 10 4. The board may audit a provider to determine compliance
6 11 with this section as deemed necessary.
6 12 Sec. 8. NEW SECTION. 476B.8 CERTIFICATES FOR PROVIDING
6 13 LOCAL TELECOMMUNICATIONS SERVICES.
6 14 1. A telecommunications provider must have a certificate
6 15 of public convenience and necessity issued by the board before
6 16 furnishing land-line local telephone service in this state.
6 17 Lines or equipment shall not be constructed, installed, or
6 18 operated for the purpose of furnishing the service before a
6 19 certificate has been issued.
6 20 2. A certificate shall be issued by the board, after
6 21 notice and opportunity for hearing, if the board determines
6 22 that the service proposed to be rendered will promote the
6 23 public convenience and necessity, provided that an applicant
6 24 shall not be denied a certificate if the board finds that the
6 25 applicant possesses the technical, financial, and managerial
6 26 ability to provide the service it proposes to render and the
6 27 board finds the service is consistent with the public
6 28 interest. The board shall make a determination within ninety
6 29 days of the submission by the applicant of evidence of its
6 30 technical, financial, and managerial ability, unless the board
6 31 determines that additional time is necessary to consider the
6 32 application, in which case the board may extend the time for
6 33 making a determination for an additional sixty days. The
6 34 board may establish reasonable conditions or restrictions on
6 35 the certificate at the time of issuance.
7 1 3. A certificate is transferable, subject to approval of
7 2 the board.
7 3 4. Each certificate shall define the service territory in
7 4 which land-line local telephone service is authorized to be
7 5 provided. The service territory shall be shown on maps and
7 6 other documentation as the board may require to be filed with
7 7 the board. The board, by rule, shall specify the style, size,
7 8 and kind of map or other documentation, and the information to
7 9 be shown.
7 10 5. Each certificated utility has an obligation to serve
7 11 all eligible customers within the utility's service territory,
7 12 unless explicitly excepted from this requirement by the board.
7 13 6. The certificate is the only authority required for the
7 14 utility to furnish land-line local telephone service.
7 15 7. The inclusion of any facilities or service territory of
7 16 a certificated utility within the boundaries of a city does
7 17 not impair or affect the rights of the utility to provide
7 18 land-line local telephone service in the utility's service
7 19 territory.
7 20 8. An agreement between certificated utilities to
7 21 designate service territory boundaries and customers to be
7 22 served by the utilities, or for exchange of customers between
7 23 utilities, when approved by the board after notice to affected
7 24 persons and opportunity for hearing, is valid and enforceable
7 25 and shall be incorporated into the appropriate certificates.
7 26 The board shall approve an agreement if the board finds the
7 27 agreement will result in adequate service to all areas and
7 28 customers affected and is in the public interest.
7 29 9. A certificate, after notice and opportunity for
7 30 hearing, may be revoked by the board for failure of a utility
7 31 to furnish reasonably adequate land-line local telephone
7 32 service and facilities. The board may also order a revocation
7 33 affecting less than the entire service territory, or may place
7 34 appropriate conditions on a utility to ensure reasonably
7 35 adequate telephone service. Prior to revocation proceedings,
8 1 the board shall notify the utility of any inadequacies in its
8 2 service and facilities and allow the utility a reasonable time
8 3 to eliminate the inadequacies.
8 4 10. The board shall assure that all territory in the state
8 5 is served by a certificated utility. If at any time it
8 6 appears that a particular territory may not be served by any
8 7 certificated utility, the board, after notice to interested
8 8 persons and opportunity for hearing, may include all or part
8 9 of the territory in the certificate of another certificated
8 10 utility or utilities. In determining the certificated utility
8 11 or utilities to be authorized or required to serve, the board
8 12 shall consider the willingness and ability of the utilities to
8 13 serve, the location of existing service facilities, the
8 14 community of interest of the customers involved, and any other
8 15 factors deemed relevant to the public interest.
8 16 Sec. 9. NEW SECTION. 476B.9 PROPERTY TAX ASSESSMENTS.
8 17 The board, at the request of a long distance telephone
8 18 company, shall classify such company as a competitive long
8 19 distance telephone company if more than half of the company's
8 20 revenues from its Iowa intrastate telecommunications services
8 21 and facilities are received from services and facilities that
8 22 the board has determined to be subject to effective
8 23 competition. The board shall promptly notify the director of
8 24 revenue and finance that a long distance telephone company has
8 25 been classified as a competitive long distance telephone
8 26 company. Upon such notification by the board, the director of
8 27 revenue and finance shall assess the property of such
8 28 competitive long distance telephone company, which property is
8 29 first assessed for taxation in this state on or after January
8 30 1, 1996, in the same manner as all other property assessed as
8 31 commercial property by the local assessor under chapters 427,
8 32 427A, 427B, 428, and 441. As used in this section, "long
8 33 distance telephone company" means an entity that provides
8 34 telephone service and facilities between local exchanges, but
8 35 does not include a cellular service provider.
9 1 Sec. 10. NEW SECTION. 467B.10 DISPUTE RESOLUTION.
9 2 A person may file a written request for dispute resolution
9 3 as provided under this section or for the board to determine
9 4 compliance by a telecommunications provider with this chapter.
9 5 The requester shall serve a copy of the request upon the
9 6 telecommunications provider and the office of consumer
9 7 advocate at the time of filing. The telecommunications
9 8 provider shall respond in writing within a reasonable time to
9 9 be specified by the board. The board shall dispose of the
9 10 dispute or promptly initiate a formal proceeding if the board
9 11 determines that there is any reasonable ground for
9 12 investigating the dispute. If the board disposes of the
9 13 dispute, an affected person or the office of consumer advocate
9 14 may request the board to initiate a formal proceeding. The
9 15 board shall adopt rules governing the procedural aspects of
9 16 this dispute resolution. The board shall render a decision
9 17 resolving disputes within ninety days after the date the
9 18 written request for dispute resolution was filed unless, upon
9 19 written order showing good cause, additional time is ordered
9 20 by the board.
9 21 EXPLANATION
9 22 This bill creates a new Code chapter 476B regulating
9 23 telecommunications providers. Additional conforming
9 24 amendments to other Code provisions may be necessary prior to
9 25 enactment to fully implement this new Code chapter.
9 26 New Code section 476B.1 establishes definitions of key
9 27 terms used in the chapter.
9 28 New Code section 476B.2 establishes the regulatory powers
9 29 of the board over telecommunications providers.
9 30 New Code section 476B.3 designates certain existing Code
9 31 sections related to the power of the utilities board which
9 32 will still apply to telecommunications providers regulated
9 33 under new Code chapter 476B.
9 34 New Code section 476B.4 establishes the mechanism the board
9 35 is to use in determining the prices of services subject to the
10 1 jurisdiction of the board which may be charged by an incumbent
10 2 local exchange carrier to another telecommunications provider.
10 3 New Code section 476B.5 establishes a limitation on the
10 4 rates which may be charged for interexchange service and
10 5 provides that the rates charged by a provider of interexchange
10 6 telecommunications services to subscribers in rural and high
10 7 cost areas shall be no higher than the rates charged by such
10 8 provider to that provider's subscribers in urban areas.
10 9 New Code section 476B.6 establishes a universal service
10 10 fund to support universal service in a competitively neutral
10 11 manner. All telecommunications providers are required to
10 12 participate in funding the support for universal service.
10 13 New Code section 476B.7 establishes a program of discounts
10 14 to assist a telecommunications provider who provides local
10 15 exchange service at the principal residence of a qualifying
10 16 low-income customer.
10 17 New Code section 476B.8 establishes a procedure for issuing
10 18 certificates of public convenience and necessity to
10 19 telecommunications providers furnishing land-line local
10 20 telephone service.
10 21 New Code section 476B.9 establishes a method for a long
10 22 distance telephone company to be classified as a competitive
10 23 long distance telephone company. Such classification results
10 24 in the company's property being assessed in the same manner as
10 25 other commercial property.
10 26 New Code section 476B.10 establishes a dispute resolution
10 27 mechanism for purposes of determining compliance by a
10 28 telecommunications provider with this chapter.
10 29 LSB 1998YC 77
10 30 mj/jw/5
Text: HSB00166 Text: HSB00168 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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