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Senate Study Bill 1169

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  15.301  TECHNOLOGY-ENABLED
  1  2 COMMUNITIES.
  1  3    The department is directed to work with communities in Iowa
  1  4 to develop a survey and scoring system to collect information
  1  5 from educational, health care, local government, and business
  1  6 entities.  Survey results shall be used to certify appropriate
  1  7 communities as technology-enabled communities, or "TEC towns".
  1  8 The TEC town designation shall be used to recognize those
  1  9 communities that have achieved a high level of deployment of
  1 10 advanced telecommunications services and public access to and
  1 11 that have used advanced telecommunications services in
  1 12 delivering government services.  The TEC town certification
  1 13 entitles the certified community to use any logo or other mark
  1 14 of the TEC town program in the community's own marketing and
  1 15 promotional efforts.
  1 16    Sec. 2.  Section 476.1D, subsection 1, Code 2003, is
  1 17 amended to read as follows:
  1 18    1.  Except as provided in this section, the jurisdiction of
  1 19 the board as to the regulation of communications services is
  1 20 not applicable to a service or facility that is provided or is
  1 21 proposed to be provided by a telephone utility that is or
  1 22 becomes subject to effective competition, as determined by the
  1 23 board.  In determining whether a service or facility is or
  1 24 becomes subject to effective competition, the board shall
  1 25 consider, among other factors, whether a comparable service or
  1 26 facility is available from a supplier other than the telephone
  1 27 utility in the geographic market being considered by the board
  1 28 and whether market forces in that market are sufficient to
  1 29 assure just and reasonable rates without regulation.
  1 30    Sec. 3.  Section 476.6, subsection 1, Code 2003, is amended
  1 31 to read as follows:
  1 32    1.  FILING WITH BOARD.  A public utility subject to rate
  1 33 regulation shall not make effective a new or changed rate,
  1 34 charge, schedule or regulation until the rate, charge,
  1 35 schedule, or regulation has been approved by the board, except
  2  1 as provided in subsections 11 and 13.
  2  2    A subscriber of a telephone exchange or service, who is
  2  3 declared to be legally blind under section 422.12, subsection
  2  4 1, paragraph "e", is exempt from any charges for telephone
  2  5 directory assistance that may be approved by the board.
  2  6    Sec. 4.  Section 476.6, subsections 2 through 4, Code 2003,
  2  7 are amended by striking the subsections.
  2  8    Sec. 5.  Section 476.51, Code 2003, is amended to read as
  2  9 follows:
  2 10    476.51  CIVIL PENALTY.
  2 11    1.  A public utility which, after written notice by the
  2 12 board of a specific violation, violates the same provision of
  2 13 this chapter, the same rule adopted by the board, or the same
  2 14 provision of an order lawfully issued by the board, is subject
  2 15 to a civil penalty, which may be levied by the board, of not
  2 16 less than one hundred dollars nor more than two thousand five
  2 17 hundred dollars per violation.
  2 18    2.  A public utility which willfully, after written notice
  2 19 by the board of a specific violation, violates the same
  2 20 provision of this chapter, the same rule adopted by the board,
  2 21 or the same provision of an order lawfully issued by the
  2 22 board, is subject to a civil penalty, which may be levied by
  2 23 the board, of not less than one thousand dollars nor more than
  2 24 ten thousand dollars per violation.  For the purposes of this
  2 25 section, "willful" means knowing and deliberate, with a
  2 26 specific intent to violate.
  2 27    3.  Each violation is a separate offense.  In the case of a
  2 28 continuing violation, each day a violation continues, after
  2 29 the time specified for compliance in the written notice by the
  2 30 board, is a separate and distinct offense.  Any civil penalty
  2 31 may be compromised by the board.  In determining the amount of
  2 32 the penalty, or the amount agreed upon in a compromise, the
  2 33 board may consider the appropriateness of the penalty in
  2 34 relation to the size of the public utility, the gravity of the
  2 35 violation, and the good faith of the public utility in
  3  1 attempting to achieve compliance following notification of a
  3  2 violation, and any other relevant factors.
  3  3    4.  The written notice given by the board to a public
  3  4 utility under this section shall specify an appropriate time
  3  5 for compliance.
  3  6    5.  Civil penalties collected pursuant to this section from
  3  7 utilities providing water, electric, or gas service shall be
  3  8 forwarded by the executive secretary of the board to the
  3  9 treasurer of state to be credited to the general fund of the
  3 10 state and to be used only for the low income home energy
  3 11 assistance program and the weatherization assistance program
  3 12 administered by the division of community action agencies of
  3 13 the department of human rights.  Civil penalties collected
  3 14 pursuant to this section from utilities providing
  3 15 telecommunications service shall be forwarded to the treasurer
  3 16 of state to be credited to the general fund of the state to be
  3 17 used only by the department of economic development in
  3 18 furtherance of activities pursuant to section 15.301.
  3 19 Penalties paid by a rate-regulated public utility pursuant to
  3 20 this section shall be excluded from the utility's costs when
  3 21 determining the utility's revenue requirement, and shall not
  3 22 be included either directly or indirectly in the utility's
  3 23 rates or charges to customers.
  3 24    Sec. 6.  Section 476.97, subsection 3, paragraph a,
  3 25 subparagraph (5), Code 2003, is amended to read as follows:
  3 26    (5)  The plan shall provide for both increases and
  3 27 decreases in the prices for basic communications services
  3 28 reflecting annual changes in inflation and productivity.
  3 29 Prior to January 1, 2000, Initially, the board shall use the
  3 30 gross domestic product price index, as published by the
  3 31 federal government, for an inflation measure, and two and six-
  3 32 tenths percentage points for a productivity measure.  On or
  3 33 after January 1, 2000, the The board by rule may adopt a more
  3 34 current measures measure of inflation and productivity.  Any
  3 35 plan in effect as of July 1, 2003, that contains a
  4  1 productivity factor shall strike the productivity factor on a
  4  2 prospective basis.
  4  3    Sec. 7.  Section 476.97, Code 2003, is amended by adding
  4  4 the following new subsections:
  4  5    NEW SUBSECTION.  12.  Notwithstanding any contrary
  4  6 provisions of this chapter relating to rate regulation, a
  4  7 rate-regulated local exchange carrier operating under a price
  4  8 regulation plan shall be allowed to rebalance basic
  4  9 communications rates by implementing a rate increase of not
  4 10 more than one dollar in the monthly rate for selected basic
  4 11 exchange access service lines each year for three years.  The
  4 12 resulting increase in revenues shall be offset by an equal
  4 13 decrease in revenues by simultaneously decreasing other basic
  4 14 communications services rates.  This rebalancing provision may
  4 15 be used to rebalance rates to reduce the rate differential
  4 16 between rates for comparable residential and business services
  4 17 or between rates for comparable services in different service
  4 18 zones as defined in the carrier's tariffs.  After notice
  4 19 pursuant to section 476.6, subsection 5, a carrier proposing
  4 20 to rebalance rates shall file proposed tariffs with the board
  4 21 containing the revised rates, along with supporting
  4 22 calculations demonstrating that the proposed rebalancing is
  4 23 expected to be revenue neutral.  Notwithstanding contrary
  4 24 provisions of this chapter, the board shall allow the tariff
  4 25 provisions to become effective upon a finding by the board
  4 26 that the carrier's overall revenues from basic communications
  4 27 services will not be increased as a result of the rebalancing
  4 28 and that the overall rebalancing is in the public interest.
  4 29 Cost of service information shall not be considered in making
  4 30 this determination.
  4 31    NEW SUBSECTION.  13.  a.  The Iowa broadband initiative is
  4 32 created to provide access to advanced telecommunications
  4 33 services in all exchanges served by rate-regulated local
  4 34 exchange carriers where advanced telecommunications services
  4 35 are not already available at affordable rates, to the extent
  5  1 consistent with technological limitations and the public
  5  2 interest as determined by the board.  The general assembly
  5  3 specifically finds that regulatory flexibility is appropriate
  5  4 when fostering economic development through the increased
  5  5 availability of advanced telecommunications services.
  5  6    b.  For purposes of this section, "advanced
  5  7 telecommunications service" is defined as infrastructure
  5  8 capable of delivering a data transmission speed of at least
  5  9 two hundred kilobits per second in each direction.
  5 10    c.  Any rate-regulated local exchange carrier may implement
  5 11 a single increase in monthly rates for residential or business
  5 12 dial tone access service lines by an amount not to exceed two
  5 13 dollars per month.  The increase shall be included in the
  5 14 customer's bill as an unidentified part of the overall rate
  5 15 for service.  The revenue from this increase shall be used to
  5 16 provide advanced telecommunications services in each of the
  5 17 carrier's local exchange central office wire centers where
  5 18 broadband services are not currently available at affordable
  5 19 rates, subject to the requirements in subparagraphs (1)
  5 20 through (6).  In addition, any increase or decrease required
  5 21 by an approved price regulation plan that, as of July 1, 2003,
  5 22 has been deferred pursuant to section 476.97, subsection 3,
  5 23 paragraph "a", subparagraph (6), shall not be implemented and
  5 24 the amount of any deferral shall also be used to provide
  5 25 advanced telecommunications services, subject to the following
  5 26 requirements:
  5 27    (1)  Any carrier electing to participate in the Iowa
  5 28 broadband initiative shall file for the board's review and
  5 29 approval a plan for using the revenue resulting from the rate
  5 30 increase.  In reviewing the plan, the board shall consider
  5 31 investments and expenditures by the carrier that will best
  5 32 serve the public interest as described in this subsection,
  5 33 including upgrading the existing telecommunications
  5 34 infrastructure to permit improved data services, to a minimum
  5 35 of fifty-six kilobits per second, for customers who cannot be
  6  1 offered advanced telecommunications services because of their
  6  2 geographical location.  The board shall adopt rules to
  6  3 implement its review process, including rules that specify the
  6  4 initial plan filing requirements, further define the public
  6  5 interest, and identify some of the factors the board will
  6  6 consider in reviewing plans.
  6  7    (2)  The carrier shall use the revenue resulting from the
  6  8 rate increase to implement its approved plan.  Whenever the
  6  9 board is of the opinion that a carrier is not complying with
  6 10 its approved plan, the board may commence an action in the
  6 11 district court for any county in which such violation is
  6 12 alleged to have occurred to have such violation stopped and
  6 13 prevented by injunction, mandamus, or other appropriate
  6 14 remedy.  The board may also, after notice and opportunity for
  6 15 hearing, require that the carrier refund any revenue resulting
  6 16 from the rate increase that has not been used to implement its
  6 17 approved plan.  The board may also enforce the approved plan
  6 18 with civil penalties, pursuant to section 476.51.
  6 19    (3)  The carrier shall file annual reports with the board
  6 20 detailing its progress toward completion of its approved plan.
  6 21    (4)  The carrier, the board, or any other interested person
  6 22 may propose modifications to a carrier's plan at any time.
  6 23    (5)  Upon completion of its initial Iowa broadband
  6 24 initiative plan, a carrier shall do one or more of the
  6 25 following:
  6 26    (a)  File a plan for board review and approval for
  6 27 continued use of the revenue resulting from the rate increase
  6 28 for further deployment of advanced services.
  6 29    (b)  File a rate of return rate proceeding pursuant to
  6 30 section 476.6 to determine new rates.
  6 31    (c)  File proposed tariffs for board review and approval to
  6 32 reduce the monthly rates that were increased under this
  6 33 subsection by an amount equal to the increase.
  6 34    (6)  A carrier choosing to participate in the Iowa
  6 35 broadband initiative shall also apply a credit, in an amount
  7  1 equal to the amount of the residential service increase, to
  7  2 the monthly local exchange service rate for qualified
  7  3 applicants for low-income lifeline assistance programs.  This
  7  4 credit shall continue for as long as the retail rate increase
  7  5 is in effect.
  7  6    Sec. 8.  LOCAL EXCHANGE COMPETITION AND INTRASTATE ACCESS
  7  7 CHARGES STUDY.  The board shall conduct a study of the current
  7  8 status of local exchange competition in Iowa and a separate
  7  9 study of intrastate access charges and shall report the
  7 10 results of the studies to the general assembly by December 15,
  7 11 2003.
  7 12    In conducting the competition study, the board shall
  7 13 consider possible alternatives to services received from
  7 14 incumbent local exchange service providers, including but not
  7 15 limited to competitive local exchange service providers,
  7 16 municipal telecommunications service providers, resellers of
  7 17 the facilities and services of other providers, commercial
  7 18 mobile radio service or other wireless providers, cable
  7 19 television service providers, advanced telecommunications
  7 20 service providers, and providers using voice-over internet
  7 21 protocol or other similar technologies.
  7 22    In conducting the studies, the board may subpoena books,
  7 23 papers, records, and any other real evidence necessary or
  7 24 useful for the board to complete either study.  Subpoenas may
  7 25 be contested using the procedures in section 17A.13,
  7 26 subsection 1.  Company-specific information provided to the
  7 27 board solely for purposes of the report may be treated as a
  7 28 trade secret for purposes of section 22.7, subsection 3.  
  7 29                           EXPLANATION
  7 30    This bill creates an Iowa broadband initiative.  The bill
  7 31 allows local exchange carriers operating under price
  7 32 regulation plans to rebalance their residential and business
  7 33 rates and to reduce rate differentials resulting from past
  7 34 mergers and acquisitions.  In addition, the bill clarifies the
  7 35 authority of the utilities board to deregulate competitive
  8  1 telecommunications services, removes outdated provisions
  8  2 relating to directory assistance services, creates a
  8  3 technology-enabled communities ("TEC") town program within the
  8  4 department of economic development, provides that civil
  8  5 penalties collected from telecommunications companies will be
  8  6 used to fund the TEC town program, and requires that the
  8  7 utilities board conduct studies of the current state of local
  8  8 exchange competition in Iowa and intrastate access charges.  
  8  9 LSB 3219SC 80
  8 10 jj/cl/14 
     

Text: SSB01168                          Text: SSB01170
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Bills and Amendments: General Index     Bill History: General Index

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