Text: SF02379 Text: SF02381 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 2380 1 2 1 3 AN ACT 1 4 RELATING TO THE ELECTION OF A LOCAL EXCHANGE CARRIER TO 1 5 BE PRICE-REGULATED. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 476.97, subsection 2, Code 1997, is 1 10 amended to read as follows: 1 11 2. The board, after notice and opportunity for hearing, 1 12 may approve, modify, or reject the plan. The board shall 1 13 approve, modify, or reject the plan by no later than ninety 1 14 days after the date the plan is filed. The local exchange 1 15 carrier shall have ten days to accept or reject any board 1 16 modifications to its plan. If the local exchange carrier 1 17 rejects a modification to its plan, the board shall reject the 1 18 plan without prejudice to the local exchange carrier to submit 1 19 another plan. 1 20 Sec. 2. Section 476.97, subsection 3, paragraph a, 1 21 subparagraphs (1), (3), and (4), Code 1997, are amended to 1 22 read as follows: 1 23 (1) Establishing and changing prices, terms, and 1 24 conditions for basic communications services. The initial 1 25 plan for price regulation must include a proposal, which the 1 26 board shall approve, for reducing the local exchange carrier's 1 27 average intrastate access service rates to the local exchange 1 28 carrier's average interstate access service rates in effect as 1 29 of the last day of the calendar year immediately preceding the 1 30 date of filing of the plan, as follows: 1 31 (a) A local exchange carrier with five hundred thousand or 1 32 more access lines in this state shall reduce its average 1 33 intrastate access service rates by at leastfiftyone hundred 1 34 percent of the difference between average intrastate access 1 35 service rates and average interstate access service rates as 2 1 of the date that the planis filed and further reduce such2 2rates to the average interstate access service rates within2 3ninety days of the date that the planbecomes effective. 2 4 (b) A local exchange carrier with fewer than five hundred 2 5 thousand but seventy-five thousand or more access lines in 2 6 this state shall reduce its average intrastate access service 2 7 rates to its average interstate access service rates in 2 8 increments of at least twenty-five percent, with the initial 2 9 reduction to take effect on approval of the plan and equal 2 10 annual reductions on each anniversary of the approval during 2 11 the first three years that its plan is in effect. 2 12 (c) A local exchange carrier with fewer than seventy-five 2 13 thousand access lines in this state shall reduce its average 2 14 intrastate access service rates to its average interstate 2 15 access service rates with equal annual reductions during a 2 16 period beginning no more than two years and ending no more 2 17 than five years from the plan's inception. 2 18 (3) The plan shall also provide that the initial prices 2 19 for basic communications services shall besixthree percent 2 20 less than the rates approved and in effect at the time the 2 21 local exchange carrier files its plan. A local exchange 2 22 carrier which elects to reduce its rates bysixthree percent 2 23 shall not, at a later time, increase its rates for basic 2 24 communications services as a result of the carrier's 2 25 compliance with the board's rules relating to unbundling. In 2 26 lieu of thesixthree percent reduction, and prior to the 2 27 adoption of rules relating to unbundling pursuant to section 2 28 476.101, subsection 4, paragraph "a", subparagraph (1), the 2 29 local exchange carrier may request and the board may establish 2 30 a regulated revenue requirement in a rate proceeding under 2 31 section 476.3 or 476.6 commenced after July 1, 1995. After 2 32 the determination of the local exchange carrier's regulated 2 33 revenue requirement pursuant to the rate proceeding, the local 2 34 exchange carrier shall not immediately implement rates 2 35 designed to recover that regulated revenue requirement. 3 1 Following the adoption of rules relating to unbundling 3 2 pursuant to section 476.101, subsection 4, paragraph "a", 3 3 subparagraph (1), the local exchange carrier shall commence a 3 4 tariff proceeding for the approval of tariffs implementing 3 5 such unbundling. The board has six months to complete this 3 6 tariff proceeding and determine the local exchange carrier's 3 7 final unbundled rates. The local exchange carrier shall carry 3 8 forward the regulated revenue requirement determined by the 3 9 board pursuant to the rate proceeding and design rates that 3 10 comply with the board's rules relating to unbundling that 3 11 recover the regulated revenue requirement, and that implement 3 12 the board's approved rate design established in the tariff 3 13 proceeding. 3 14 In lieu of taking thesixthree percent reduction, a local 3 15 exchange carrier that submits a plan for price regulation 3 16 after the board adopts rules relating to unbundling may file a 3 17 rate proceeding under section 476.3 or 476.6 and the board may 3 18 approve rates designed to comply with those rules which allow 3 19 the carrier to recover the established regulated revenue 3 20 requirement and that implement the board's approved rate 3 21 design established in the tariff proceeding. 3 22 (4) The plan shall provide for both increases and 3 23 decreases in the prices for basic communications services 3 24 reflecting annual changes in inflation and productivity. 3 25 Prior to January 1,19982000, the board shall use the gross 3 26 domestic product price index, as published by the federal 3 27 government, for an inflation measure, and two and six-tenths 3 28 percentage points for a productivity measure.AfterOn or 3 29 after January 1,19982000, the board by rule may adopt 3 30 current measures of inflation and productivity. 3 31 Sec. 3. Section 476.97, subsection 3, paragraph a, Code 3 32 1997, is amended by adding the following new subparagraph: 3 33 NEW SUBPARAGRAPH. (1A) The board, during the term of the 3 34 plan for a local exchange carrier with five hundred thousand 3 35 or more access lines in this state, may consider further 4 1 reductions toward economic costs in the local exchange 4 2 carrier's average intrastate access service rates. The board 4 3 may consider offsetting such reductions by an explicit subsidy 4 4 replacement to the extent that such offsets are competitively 4 5 neutral. In determining economic costs of access service the 4 6 board shall consider all relevant costs of the service 4 7 including shared and common costs of the local exchange 4 8 carrier. 4 9 Sec. 4. Section 476.98, Code 1997, is amended to read as 4 10 follows: 4 11 476.98 EARNINGS CALCULATION AND REPORT. 4 12 The consumer advocate shall calculate an estimate of the 4 13 return of a local exchange carrier operating under price 4 14 regulation pursuant to section 476.97 as if the carrier were 4 15 subject to rate-of-return regulation. The calculation shall 4 16 be based upon the annual report of such carrier and other 4 17 information provided to the consumer advocate by the carrier. 4 18 The calculation shall be made every two years beginning 4 19 following the end of the second calendar year after the year 4 20 in which the plan becomes effective. Notwithstanding section 4 21 476.1D, subsection 4, the consumer advocate shall make two 4 22 calculations pursuant to this section with one calculation 4 23 taking into account the investment, revenues, and expenses 4 24 associated with the sale of classified directory advertising, 4 25 and one calculation not taking into account such investment, 4 26 revenues, and expenses. The consumer advocate shall provide a 4 27 written report to the general assembly including the results 4 28 of this calculation on or before July 1 of the year 4 29 immediately following the two-year period for which a 4 30 calculation is made. If, after a review of the information 4 31 used to make the calculation required in this section, the 4 32 consumer advocate determines that the public interest would be 4 33 better served by a different form of rate regulation, the 4 34 consumer advocate shall provide a recommendation that the 4 35 general assembly direct the utilities board to implement a 5 1 different form of rate regulation. 5 2 Sec. 5. Section 476.101, Code 1997, is amended by adding 5 3 the following new subsection: 5 4 NEW SUBSECTION. 9. A telecommunications carrier, as 5 5 defined in the federal Telecommunications Act of 1996, shall 5 6 not do any of the following: 5 7 a. Use customer information in a manner which is not in 5 8 compliance with 47 U.S.C. } 222. 5 9 b. Disparage the services offered by another 5 10 telecommunications carrier through false or misleading 5 11 statements. 5 12 c. Take any action that disadvantages a customer who has 5 13 chosen to receive services from another telecommunications 5 14 carrier. 5 15 5 16 5 17 5 18 MARY E. KRAMER 5 19 President of the Senate 5 20 5 21 5 22 5 23 RON J. CORBETT 5 24 Speaker of the House 5 25 5 26 I hereby certify that this bill originated in the Senate and 5 27 is known as Senate File 2380, Seventy-seventh General Assembly. 5 28 5 29 5 30 5 31 MARY PAT GUNDERSON 5 32 Secretary of the Senate 5 33 Approved , 1998 5 34 5 35 6 1 6 2 TERRY E. BRANSTAD 6 3 Governor
Text: SF02379 Text: SF02381 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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