Text: HSB00157 Text: HSB00159 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. 476.101A LEGISLATIVE INTENT.
1 2 1. It is the intent of the general assembly to encourage
1 3 the development of vibrant and fair competition within
1 4 telecommunications markets throughout the state of Iowa
1 5 because balanced development of the telecommunications
1 6 industry is crucial to the continued economic progress of the
1 7 state.
1 8 2. Section 271 of the federal Telecommunications Act of
1 9 1996 provides a fourteen-point checklist for determining when
1 10 incumbent local exchange carriers have successfully laid the
1 11 groundwork for the development of competition in the local
1 12 exchange market. Upon the filing of a "271 application" by an
1 13 incumbent local exchange carrier, the Iowa utilities board has
1 14 been charged with determining when this fourteen-point
1 15 checklist has been satisfied, and with making a recommendation
1 16 to the federal communications commission as to whether and to
1 17 what extent the fourteen-point checklist has been satisfied.
1 18 3. The general assembly finds that there have been
1 19 numerous reports from other states of situations in which the
1 20 "271 application" of an incumbent local exchange carrier has
1 21 been granted, because the carrier has satisfied the fourteen-
1 22 point checklist, but then the carrier has not properly
1 23 maintained its compliance with the fourteen-point checklist
1 24 over a period of weeks, or months, after the granting of that
1 25 271 application. This subsequent noncompliance is referred to
1 26 as "backsliding", and not only presents an intolerable
1 27 roadblock to the development of competition, but is also
1 28 deleterious to consumers, business customers, and competitors
1 29 alike.
1 30 4. It is the intent of the general assembly to prevent the
1 31 occurrence of "backsliding" wherever possible. Therefore, the
1 32 general assembly finds that it is necessary to establish
1 33 continuing standards for the provision of interconnection by
1 34 incumbent local exchange carriers to competitors, to allow
1 35 competitors to pursue private rights of action in order to
2 1 enforce those continuing standards, and to allow for the
2 2 recovery of actual and punitive damages by competitors harmed
2 3 by any failure on the part of incumbent local exchange
2 4 carriers to meet those continuing standards.
2 5 Sec. 2. NEW SECTION. 476.101B DEFINITIONS.
2 6 For purposes of sections 476.101A through 476.101E, the
2 7 following definitions shall apply:
2 8 1. "FCC" means the federal communications commission.
2 9 2. "InterLATA" means the provision of telecommunications
2 10 service between local access and transport areas.
2 11 3. "LATA" means a local access and transport area, the
2 12 boundaries of which have been established pursuant to court
2 13 order in United States v. American Telephone and Telegraph
2 14 Co., 569 F. Supp. 990 (Dist. Ct., D.C., 1983), and also
2 15 pursuant to FCC rules.
2 16 4. "271 authority" means a final grant of authority to an
2 17 incumbent local exchange carrier by the FCC to provide in-
2 18 region, interLATA long distance service pursuant to 47 U.S.C.
2 19 } 271.
2 20 Sec. 3. NEW SECTION. 476.101C STANDARDS FOR
2 21 INTERCONNECTION.
2 22 Any incumbent local exchange carrier in this state that
2 23 receives 271 authority from the FCC to provide in-region,
2 24 interLATA long distance service pursuant to federal law shall
2 25 be subject to the following quality of service standards for
2 26 interconnection with competing carriers:
2 27 1. Those performance definitions, metrics, and other
2 28 standards that satisfy both of the following requirements:
2 29 a. The standards have been approved as final during the
2 30 course of any workshops or other proceedings in which the
2 31 board has intervened or otherwise participated, or which the
2 32 board has initiated or in any manner sanctioned.
2 33 b. The standards are either relevant to, or have in any
2 34 manner formed the basis of, the issuance of a board
2 35 recommendation to the FCC that 271 authority be granted.
3 1 2. Any additional standards promulgated by the board
3 2 subsequent to the board's recommendation to the FCC that an
3 3 application for 271 authority should be granted.
3 4 3. Such further standards and requirements as have been
3 5 imposed upon the incumbent local exchange carrier by the FCC
3 6 as a condition of granting 271 authority to the incumbent
3 7 local exchange carrier.
3 8 4. Any standards contained in a board-approved
3 9 interconnection agreement, a tariff, or a statement of
3 10 generally available terms and conditions.
3 11 Sec. 4. NEW SECTION. 476.101D PRIVATE CAUSE OF ACTION –
3 12 RECOVERY OF DAMAGES.
3 13 1. A civil action for violation of the standards in
3 14 section 476.101C may be brought by any competitive carrier in
3 15 district court for one of the following:
3 16 a. The county in which any of the defendants reside, have
3 17 a principal place of business, or are doing business.
3 18 b. The county where the transaction or any substantial
3 19 portion of the transaction occurred.
3 20 c. The county in which one or more of the plaintiffs
3 21 resides.
3 22 2. a. Upon a showing by a preponderance of the evidence
3 23 that a violation of any of the standards set forth in section
3 24 476.101C has occurred, the plaintiff shall be entitled to
3 25 recover actual damages, including but not limited to damages
3 26 for investment in facilities, lost revenue, and injury to
3 27 trademark or business reputation.
3 28 b. Punitive damages may also be assessed in accordance
3 29 with chapter 668A. However, notwithstanding section 668A.1,
3 30 to the extent punitive damages are awarded under section
3 31 668A.1, subsection 2, paragraph "b", the remainder in excess
3 32 of twenty-five percent shall be allocated to the Iowa
3 33 utilities board for refund to consumers impacted by the
3 34 action, instead of being placed in the civil reparations fund.
3 35 c. An award of actual or punitive damages shall be in
4 1 addition to, and not in lieu of, any other penalties and
4 2 assessments imposed upon the incumbent local exchange carrier
4 3 under law.
4 4 Sec. 5. NEW SECTION. 476.101E CIVIL PENALTIES.
4 5 1. In addition to any applicable civil penalty set out in
4 6 section 476.51, an incumbent local exchange carrier that
4 7 violates the standards set forth in section 476.101C is
4 8 subject to a civil penalty of not more than ten thousand
4 9 dollars per violation that may be levied by the board after
4 10 notice and opportunity for hearing. Each violation is a
4 11 separate offense.
4 12 2. A civil penalty may be compromised by the board. In
4 13 determining the amount of the penalty or the amount agreed
4 14 upon in a compromise, the board may consider the size of the
4 15 service provider, the gravity of the violation, any history of
4 16 prior violations by the service provider, remedial actions
4 17 taken by the service provider, the nature of the conduct of
4 18 the service provider, and any other relevant factors.
4 19 3. A civil penalty collected pursuant to this subsection
4 20 shall be forwarded by the executive secretary of the board to
4 21 the treasurer of state to be credited to the general fund of
4 22 the state and to be used only for consumer education programs
4 23 administered by the board.
4 24 4. A penalty paid by a rate-of-return regulated utility
4 25 pursuant to this section shall be excluded from the utility's
4 26 costs when determining the utility's revenue requirement, and
4 27 shall not be included either directly or indirectly in the
4 28 utility's rates or charges to its customers.
4 29 5. The board shall not commence an administrative
4 30 proceeding to impose a civil penalty under this section if a
4 31 civil enforcement action is pending in court under section
4 32 714D.7 for the same acts.
4 33 EXPLANATION
4 34 This bill creates new sections in Code chapter 476 relating
4 35 to standards for interconnection provided by incumbent local
5 1 exchange carriers to competitors.
5 2 The bill creates new Code section 476.101A, which provides
5 3 a statement of legislative intent relative to preventing
5 4 "backsliding", a period of noncompliance by an incumbent local
5 5 exchange carrier after initially meeting a 14-point checklist
5 6 designed to ensure the development of competition in the local
5 7 exchange market.
5 8 The bill creates new Code section 476.101B, which provides
5 9 definitions used in the chapter, including terms relating to
5 10 the federal communications commission ("FCC"), local access
5 11 and transport area ("LATA"), and interLATA, and to the federal
5 12 statute that sets forth the 14-point checklist for the
5 13 development of competition in the local exchange market ("271
5 14 authority").
5 15 The bill creates new Code section 476.101C, which sets
5 16 forth the standards for interconnection, to prevent the
5 17 occurrence of backsliding. An incumbent local exchange
5 18 carrier that receives 271 authority from the FCC to provide
5 19 interLATA long distance service must meet four standards for
5 20 quality of service for interconnection with competing
5 21 carriers: (1) performance definitions, metric, and other
5 22 standards approved as final during proceedings in which the
5 23 board participated, or that formed the basis of, or were
5 24 relevant to, a board recommendation to the FCC that 271
5 25 authority be granted; (2) standards promulgated by the board
5 26 subsequent to the board's recommendation to the FCC that 271
5 27 authority be granted; (3) standards imposed on the local
5 28 exchange carrier by the FCC as a condition of granting 271
5 29 authority; and (4) standards in a board-approved
5 30 interconnection agreement, tariff, or a statement of generally
5 31 available terms and conditions.
5 32 The bill creates new Code section 476.101D, which provides
5 33 a private cause of action for violation of any of the
5 34 standards set forth in Code section 476.101C. Any competitive
5 35 carrier may sue for recovery of actual damages sustained due
6 1 to violation of the standards, including damages for
6 2 investment in facilities, lost revenue, or injury to trademark
6 3 or business reputation. A carrier may also seek punitive
6 4 damages, pursuant to Code chapter 668A. However, the
6 5 remainder of any punitive damages in excess of 25 percent
6 6 shall be allocated to the board for refund to consumers
6 7 impacted by the action, rather than deposited in the civil
6 8 reparations fund referenced in Code chapter 668A. Suit may be
6 9 filed in the county in which any defendant resides, has a
6 10 principal place of business, or is doing business; in the
6 11 county in which the transaction or any substantial portion of
6 12 the transaction took place; or in the county in which one or
6 13 more of the plaintiffs resides.
6 14 The bill creates new Code section 476.101E, which provides
6 15 for assessment of civil penalties by the board for violations
6 16 of the standards in Code section 476.101C, in an amount of up
6 17 to $10,000 per violation. The new Code section provides for
6 18 notice and opportunity for hearing, the ability to compromise
6 19 the penalty, deposit and use of the proceeds, consideration in
6 20 regards to certain utility rates, and limitations on use of
6 21 the administrative proceeding when criminal proceedings are
6 22 pending on the same acts.
6 23 LSB 2038HC 79
6 24 jj/gg/8
Text: HSB00157 Text: HSB00159 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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