House File 576 - Introduced
HOUSE FILE
BY PETTENGILL and BAUDLER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to telecommunications violations and complaints,
2 by providing for expanded access to Iowa utilities board
3 antitrust complaint procedures and prohibiting excessive
4 charges by telephone service providers.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 2366HH 82
7 rn/es/88
PAG LIN
1 1 Section 1. Section 476.55, subsection 2, Code 2007, is
1 2 amended to read as follows:
1 3 2. Notwithstanding section 476.1D, the board may receive a
1 4 complaint from a local exchange carrier utility holding a
1 5 certificate of public convenience and necessity for providing
1 6 local telecommunications services under section 476.29 that
1 7 another local exchange carrier such utility has engaged in an
1 8 activity that is inconsistent with antitrust laws and the
1 9 policies which underlie them. For purposes of this
1 10 subsection, "local exchange carrier" means the same as defined
1 11 in section 476.96 and includes a city utility authorized
1 12 pursuant to section 388.2 to provide local exchange services.
1 13 If, after notice and opportunity for hearing, the board finds
1 14 that a local exchange carrier utility holding a certificate of
1 15 public convenience and necessity for providing local
1 16 telecommunications services under section 476.29 has engaged
1 17 in an activity that is inconsistent with antitrust laws and
1 18 the policies which underlie them, the board may order any of
1 19 the following:
1 20 a. The local exchange carrier utility to adjust retail
1 21 rates in an amount sufficient to correct the antitrust
1 22 activity.
1 23 b. The local exchange carrier utility to pay any costs
1 24 incurred by the complainant for the pursuit of the complaint.
1 25 c. The local exchange carrier utility to pay a civil
1 26 penalty.
1 27 d. Either the local exchange carrier utility or the
1 28 complainant to pay the costs of the complaint proceeding
1 29 before the board, and the other party's reasonable attorney
1 30 fees.
1 31 This subsection shall not be construed to modify, restrict,
1 32 or limit the right of a person to bring a complaint under any
1 33 other provision of this chapter.
1 34 Sec. 2. NEW SECTION. 551A UNLAWFUL DISCRIMINATION IN
1 35 RATES.
2 1 1. PROHIBITION == EXCESS CHARGES. A provider of
2 2 telecommunication services conducting business in this state
2 3 shall not sell a local telephone service or a bundle of
2 4 services that includes local telephone service at a price that
2 5 exceeds two hundred percent of the lowest price that the
2 6 provider charges for an equivalent service or similar bundle
2 7 of services to other customers in this state.
2 8 2. PENALTIES.
2 9 a. A provider determined by a court of competent
2 10 jurisdiction in this state to have not materially complied
2 11 with the provisions of subsection 1 shall, in lieu of any
2 12 other penalty established pursuant to this chapter, be subject
2 13 to the following:
2 14 (1) An injunction ordering the provider to comply with the
2 15 provisions of subsection 1.
2 16 (2) For each separate violation, a civil penalty in an
2 17 amount not exceeding ten thousand dollars.
2 18 b. If the court determines that noncompliance has resulted
2 19 in a loss or damage to a customer, a person or class of
2 20 persons may bring a civil action on behalf of the customer or
2 21 customers seeking the recovery of compensatory damages or
2 22 seeking other appropriate relief.
2 23 c. If the court determines that noncompliance has resulted
2 24 in a loss of customers to a competitive provider, the injured
2 25 provider may bring a civil action to recover the consequential
2 26 damages of economic loss suffered by the injured provider as a
2 27 result of the loss of customers who changed to the
2 28 noncompliant provider while the noncompliance was occurring.
2 29 EXPLANATION
2 30 This bill expands access to Iowa utilities board antitrust
2 31 complaint procedures to a wider range of carriers providing
2 32 telecommunications services and prohibits excessive charges by
2 33 telephone service providers.
2 34 The bill amends Code section 476.55, which currently
2 35 provides for the receipt of complaints by the board from local
3 1 exchange carriers against other local exchange carriers of
3 2 activities inconsistent with antitrust laws and related
3 3 policies. That section references Code section 476.96 in
3 4 defining a local exchange carrier to refer to the incumbent
3 5 and historical rate=regulated wireline provider of local
3 6 exchange services or any successor to such person that
3 7 provides local exchange services under an authorized
3 8 certificate of public convenience and necessity within a
3 9 specific geographic area described in maps filed with and
3 10 approved by the board as of September 30, 1992. Code section
3 11 476.55 adds that for its purposes a city utility authorized
3 12 pursuant to Code section 388.2 to provide local exchange
3 13 services will be considered a local exchange carrier. The
3 14 bill replaces references to local exchange carriers with a
3 15 broader reference to utilities holding a certificate of public
3 16 convenience and necessity to furnish local telecommunications
3 17 services under Code section 476.29. This expanded reference
3 18 will permit independent telephone companies to be a party to
3 19 antitrust complaints, and subject to applicable sanctions if
3 20 found by the board to have engaged in antitrust activities.
3 21 The bill additionally prohibits a provider of
3 22 telecommunication services conducting business in Iowa from
3 23 selling a local telephone service or a bundle of services that
3 24 includes local telephone service at a price that exceeds 200
3 25 percent of the lowest price that the provider charges for an
3 26 equivalent service or similar bundle of services to other
3 27 customers in Iowa. The bill establishes penalties for
3 28 violations of the prohibition in the form of injunctive relief
3 29 and a civil penalty for each separate violation not to exceed
3 30 $10,000. Additionally, if noncompliance is determined to have
3 31 resulted in a loss or damage to a customer, a person or class
3 32 of persons may bring a civil action on behalf of the customer
3 33 or customers seeking the recovery of compensatory damages or
3 34 other appropriate relief, and if noncompliance is determined
3 35 to have resulted in a loss of customers to a competitive
4 1 provider, the injured provider may bring a civil action to
4 2 recover the consequential damages of economic loss suffered by
4 3 the provider as a result of the loss of customers who changed
4 4 to the noncompliant provider.
4 5 LSB 2366HH 82
4 6 rn:nh/es/88.1