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Senate File 368

Partial Bill History

Bill Text

PAG LIN
  1  1                                            SENATE FILE 368
  1  2  
  1  3                             AN ACT 
  1  4 RELATING TO ADVANCED TELECOMMUNICATIONS SERVICES, INCLUDING
  1  5    RATE PROVISIONS.  
  1  6 
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8 
  1  9    Section 1.  Section 476.1D, subsection 1, Code 2003, is
  1 10 amended to read as follows:
  1 11    1.  Except as provided in this section, the jurisdiction of
  1 12 the board as to the regulation of communications services is
  1 13 not applicable to a service or facility that is provided or is
  1 14 proposed to be provided by a telephone utility that is or
  1 15 becomes subject to effective competition, as determined by the
  1 16 board.  In determining whether a service or facility is or
  1 17 becomes subject to effective competition, the board shall
  1 18 consider, among other factors, whether a comparable service or
  1 19 facility is available from a supplier other than the telephone
  1 20 utility in the geographic market being considered by the board
  1 21 and whether market forces in that market are sufficient to
  1 22 assure just and reasonable rates without regulation.
  1 23    Sec. 2.  Section 476.6, subsection 1, Code 2003, is amended
  1 24 to read as follows:
  1 25    1.  FILING WITH BOARD.  A public utility subject to rate
  1 26 regulation shall not make effective a new or changed rate,
  1 27 charge, schedule or regulation until the rate, charge,
  1 28 schedule, or regulation has been approved by the board, except
  1 29 as provided in subsections 11 and 13.
  1 30    A subscriber of a telephone exchange or service, who is
  1 31 declared to be legally blind under section 422.12, subsection
  1 32 1, paragraph "e", is exempt from any charges for telephone
  1 33 directory assistance that may be approved by the board.
  1 34    Sec. 3.  Section 476.6, subsections 2 through 4, Code 2003,
  1 35 are amended by striking the subsections.
  2  1    Sec. 4.  Section 476.51, Code 2003, is amended to read as
  2  2 follows:
  2  3    476.51  CIVIL PENALTY.
  2  4    1.  A public utility which, after written notice by the
  2  5 board of a specific violation, violates the same provision of
  2  6 this chapter, the same rule adopted by the board, or the same
  2  7 provision of an order lawfully issued by the board, is subject
  2  8 to a civil penalty, which may be levied by the board, of not
  2  9 less than one hundred dollars nor more than two thousand five
  2 10 hundred dollars per violation.
  2 11    2.  A public utility which willfully, after written notice
  2 12 by the board of a specific violation, violates the same
  2 13 provision of this chapter, the same rule adopted by the board,
  2 14 or the same provision of an order lawfully issued by the
  2 15 board, is subject to a civil penalty, which may be levied by
  2 16 the board, of not less than one thousand dollars nor more than
  2 17 ten thousand dollars per violation.  For the purposes of this
  2 18 section, "willful" means knowing and deliberate, with a
  2 19 specific intent to violate.
  2 20    3.  Each violation is a separate offense.  In the case of a
  2 21 continuing violation, each day a violation continues, after
  2 22 the time specified for compliance in the written notice by the
  2 23 board, is a separate and distinct offense.  Any civil penalty
  2 24 may be compromised by the board.  In determining the amount of
  2 25 the penalty, or the amount agreed upon in a compromise, the
  2 26 board may consider the appropriateness of the penalty in
  2 27 relation to the size of the public utility, the gravity of the
  2 28 violation, and the good faith of the public utility in
  2 29 attempting to achieve compliance following notification of a
  2 30 violation, and any other relevant factors.
  2 31    4.  The written notice given by the board to a public
  2 32 utility under this section shall specify an appropriate time
  2 33 for compliance.
  2 34    5.  Civil penalties collected pursuant to this section from
  2 35 utilities providing water, electric, or gas service shall be
  3  1 forwarded by the executive secretary of the board to the
  3  2 treasurer of state to be credited to the general fund of the
  3  3 state and to be used only for the low income home energy
  3  4 assistance program and the weatherization assistance program
  3  5 administered by the division of community action agencies of
  3  6 the department of human rights.  Civil penalties collected
  3  7 pursuant to this section from utilities providing
  3  8 telecommunications service shall be forwarded to the treasurer
  3  9 of state to be credited to the general fund of the state to be
  3 10 used only for consumer education programs administered by the
  3 11 board.  Penalties paid by a rate-regulated public utility
  3 12 pursuant to this section shall be excluded from the utility's
  3 13 costs when determining the utility's revenue requirement, and
  3 14 shall not be included either directly or indirectly in the
  3 15 utility's rates or charges to customers.
  3 16    Sec. 5.  Section 476.97, subsection 3, paragraph a,
  3 17 subparagraph (5), Code 2003, is amended to read as follows:
  3 18    (5)  The plan shall provide for both increases and
  3 19 decreases in the prices for basic communications services
  3 20 reflecting annual changes in inflation and productivity.
  3 21 Prior to January 1, 2000, Initially, the board shall use the
  3 22 gross domestic product price index, as published by the
  3 23 federal government, for an inflation measure, and two and six-
  3 24 tenths percentage points for a productivity measure.  On or
  3 25 after January 1, 2000, the The board by rule may adopt a more
  3 26 current measures measure of inflation and productivity.  Any
  3 27 plan in effect as of July 1, 2003, that contains a
  3 28 productivity factor shall strike the productivity factor on a
  3 29 prospective basis.
  3 30    Sec. 6.  Section 476.97, Code 2003, is amended by adding
  3 31 the following new subsection:
  3 32    NEW SUBSECTION.  12.  a.  The Iowa broadband initiative is
  3 33 created to provide access to advanced telecommunications
  3 34 services to all customers in all exchanges served by rate-
  3 35 regulated local exchange carriers where advanced
  4  1 telecommunications services are not already available at
  4  2 affordable rates, to the extent consistent with technological
  4  3 limitations and the public interest as determined by the
  4  4 board.  The general assembly specifically finds that
  4  5 regulatory flexibility is appropriate when fostering economic
  4  6 development through the increased availability of advanced
  4  7 telecommunications services.
  4  8    b.  For purposes of this section, "advanced
  4  9 telecommunications services" is defined as infrastructure
  4 10 capable of delivering a data transmission speed of at least
  4 11 two hundred kilobits per second in each direction.
  4 12    c.  Any rate-regulated local exchange carrier may implement
  4 13 a single increase in monthly rates for residential or business
  4 14 dial tone access service lines by an amount not to exceed two
  4 15 dollars per month.  The increase shall be included in the
  4 16 customer's bill as an unidentified part of the overall rate
  4 17 for service.  The revenue from this increase shall be used to
  4 18 provide advanced telecommunications services in each of the
  4 19 carrier's local exchange central office wire centers where
  4 20 advanced telecommunications services are not currently
  4 21 available at affordable rates in all or a substantial part of
  4 22 the exchange, subject to the requirements in subparagraphs (1)
  4 23 through (7).  In addition, any increase or decrease required
  4 24 by an approved price regulation plan that, as of July 1, 2003,
  4 25 has been deferred pursuant to subsection 3, paragraph "a",
  4 26 subparagraph (6), shall not be implemented and the amount of
  4 27 any deferral shall also be used to provide advanced
  4 28 telecommunications services, subject to the following
  4 29 requirements:
  4 30    (1)  Any carrier electing to participate in the Iowa
  4 31 broadband initiative shall file for the board's review and
  4 32 approval a plan for using the revenue resulting from the rate
  4 33 increase.  In reviewing the plan, the board shall consider
  4 34 investments and expenditures by the carrier that will best
  4 35 serve the public interest as described in this subsection,
  5  1 including upgrading the existing telecommunications
  5  2 infrastructure to permit improved data services for customers
  5  3 who cannot be offered advanced telecommunications services
  5  4 because of their geographical location.  The board shall adopt
  5  5 rules to implement its review process, including rules that
  5  6 specify the initial plan filing requirements, further define
  5  7 the public interest, and identify some of the factors the
  5  8 board will consider in reviewing plans.
  5  9    (2)  The carrier shall use the revenue resulting from the
  5 10 rate increase to implement its approved plan.  Whenever the
  5 11 board is of the opinion that a carrier is not complying with
  5 12 its approved plan, the board may commence an action in the
  5 13 district court for any county in which such violation is
  5 14 alleged to have occurred to have such violation stopped and
  5 15 prevented by injunction, mandamus, or other appropriate
  5 16 remedy.  The board may also, after notice and opportunity for
  5 17 hearing, require that the carrier refund any revenue resulting
  5 18 from the rate increase that has not been used to implement its
  5 19 approved plan.  The board may also enforce the approved plan
  5 20 with civil penalties, pursuant to section 476.51.
  5 21    (3)  The carrier shall file annual reports with the board
  5 22 detailing its progress toward completion of its approved plan.
  5 23    (4)  The carrier, the board, or any other interested person
  5 24 may propose modifications to a carrier's plan at any time.
  5 25    (5)  By choosing to participate in the Iowa broadband
  5 26 initiative, the participating carrier agrees to make available
  5 27 to other carriers, on both a wholesale and an unbundled basis,
  5 28 the services and facilities that result from implementation of
  5 29 the participating carrier's plan.  The wholesale rates and
  5 30 unbundled rates shall be set by the board, which shall
  5 31 consider, among other factors, the extent to which the service
  5 32 or facility was financed by the revenues generated by the rate
  5 33 increase allowed under this paragraph "c".
  5 34    (6)  Upon completion of its initial Iowa broadband
  5 35 initiative plan, a carrier shall do one or more of the
  6  1 following:
  6  2    (a)  File a plan for board review and approval for
  6  3 continued use of the revenue resulting from the rate increase
  6  4 for further deployment of advanced services.
  6  5    (b)  File a rate of return rate proceeding pursuant to
  6  6 section 476.6 to determine new rates.
  6  7    (c)  File proposed tariffs for board review and approval to
  6  8 reduce the monthly rates that were increased under this
  6  9 subsection by an amount equal to the increase.
  6 10    (7)  A carrier choosing to participate in the Iowa
  6 11 broadband initiative shall also apply a credit, in an amount
  6 12 equal to the amount of the residential service increase, to
  6 13 the monthly local exchange service rate for qualified
  6 14 applicants for low-income lifeline assistance programs.  This
  6 15 credit shall continue for as long as the retail rate increase
  6 16 is in effect.
  6 17    Sec. 7.  NEW SECTION.  476.105  SEVERABILITY.
  6 18    If any provision of this chapter or its application to any
  6 19 person or circumstance is held invalid or otherwise rendered
  6 20 ineffective by any entity, the invalidity or ineffectiveness
  6 21 shall not affect other provisions or applications of this
  6 22 chapter that can be given effect without the invalid or
  6 23 ineffective provision or application, and to this end the
  6 24 provisions of this chapter are severable.  
  6 25 
  6 26 
  6 27                                                             
  6 28                               MARY E. KRAMER
  6 29                               President of the Senate
  6 30 
  6 31 
  6 32                                                             
  6 33                               CHRISTOPHER C. RANTS
  6 34                               Speaker of the House
  6 35 
  7  1    I hereby certify that this bill originated in the Senate and
  7  2 is known as Senate File 368, Eightieth General Assembly.
  7  3 
  7  4 
  7  5                                                             
  7  6                               MICHAEL E. MARSHALL
  7  7                               Secretary of the Senate
  7  8 Approved                , 2003
  7  9 
  7 10 
  7 11                                
  7 12 THOMAS J. VILSACK
  7 13 Governor
     

Text: SF00367                           Text: SF00369
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Bills and Amendments: General Index     Bill History: General Index

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