House File 641 - Introduced



                                    HOUSE FILE       
                                    BY  ALONS, PETTENGILL, LUKAN,
                                        KAUFMANN, SORENSON, S. OLSON,
                                        DE BOEF, SODERBERG, SWAIM,
                                        GRASSLEY, and THOMAS


    Passed House, Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act modifying general policy provisions applicable to
  2    telecommunications regulation.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2263YH 83
  5 rn/sc/14

PAG LIN



  1  1    Section 1.  Section 476.95, Code 2009, is amended to read
  1  2 as follows:
  1  3    476.95  FINDINGS == STATEMENT OF POLICY.
  1  4    The general assembly finds all of the following:
  1  5    1.  Communications services should be available throughout
  1  6 the state at just, reasonable, and affordable rates from a
  1  7 variety of providers.
  1  8    2.  In rendering decisions with respect to regulation of
  1  9 telecommunications companies, the board shall consider the
  1 10 effects of its decisions on the provision of advanced
  1 11 communications services, shall balance local economic
  1 12 development and competition in telecommunications markets and,
  1 13 to the extent reasonable and lawful, shall act to further the
  1 14 development of competition adequate services at just,
  1 15 reasonable, and affordable rates in those markets.
  1 16    3.  In order to encourage competition for all promote
  1 17 adequate telecommunications services and the continued
  1 18 deployment of advanced communications services, the board
  1 19 should address issues relating to the movement of prices
  1 20 toward cost and the removal of subsidies in the existing price
  1 21 structure of the incumbent local exchange carrier shall
  1 22 consider compensation issues in light of the provision,
  1 23 maintenance, and upgrade costs of advanced communications
  1 24 services and the principle of just, reasonable, and affordable
  1 25 rates for communications services throughout the state.
  1 26    4.  Regulatory flexibility is appropriate when competition
  1 27 provides customers with competitive choices in the variety,
  1 28 quality, and pricing of communications services, and when
  1 29 consistent with consumer protection and other relevant public
  1 30 interests.
  1 31    5.  The board should shall respond with speed and
  1 32 flexibility to changes in the communications industry.
  1 33    6.  Economic development can be fostered by the existence
  1 34 of advanced communications networks communications services.
  1 35    Sec. 2.  Section 476.96, Code 2009, is amended by adding
  2  1 the following new subsection:
  2  2    NEW SUBSECTION.  0A.  "Advanced communications services"
  2  3 means high=speed, switched broadband telecommunications that
  2  4 enable users to originate and receive high quality voice,
  2  5 data, graphics, and video technology.
  2  6    Sec. 3.  Section 476.96, subsection 6, Code 2009, is
  2  7 amended to read as follows:
  2  8    6.  "Nonbasic communications services" means all
  2  9 communications services subject to the board's jurisdiction
  2 10 which are not deemed either by statute or by rule to be basic
  2 11 communications services, including advanced communications
  2 12 services and any service offered by the local exchange carrier
  2 13 for the first time after July 1, 1995.  A service is not
  2 14 considered new if it constitutes the bundling, unbundling, or
  2 15 repricing of an already existing service.  Consistent with
  2 16 community expectations and the public interest, the board may
  2 17 reclassify by rule as nonbasic those two=way switched
  2 18 communications services previously classified by rule as
  2 19 basic.
  2 20                           EXPLANATION
  2 21    This bill modifies general policy statements contained in
  2 22 Code chapter 476.95 and applicable to provisions relating to
  2 23 price regulation of telecommunications services providers.
  2 24    The bill provides that the utilities board of the utilities
  2 25 division of the department of commerce shall consider the
  2 26 effects of its regulatory decisions on the provision of
  2 27 advanced telecommunications services, shall balance local
  2 28 economic development and competition, and shall act to further
  2 29 the development of adequate services at just, reasonable, and
  2 30 affordable rates.  Further, the bill deletes a provision
  2 31 directing the board to address issues relating to the movement
  2 32 of prices toward cost and the removal of subsidies in the
  2 33 existing price structure of the incumbent local exchange
  2 34 carrier in order to encourage competition.  This provision is
  2 35 replaced with the directive that the board consider
  3  1 compensation issues in light of the provision, maintenance,
  3  2 and upgrade costs of advanced communications services and the
  3  3 principle of just, reasonable, and affordable rates for
  3  4 communications services throughout the state in order to
  3  5 promote adequate telecommunications services.  Additionally,
  3  6 the bill substitutes the word "shall" for the word "should"
  3  7 with reference to the board responding with speed and
  3  8 flexibility to changes in the communications industry, and
  3  9 changes a reference to "advanced communications networks" to
  3 10 "advanced communications services".
  3 11    The bill defines "advanced communications services" to mean
  3 12 high=speed, switched broadband telecommunications that enable
  3 13 users to originate and receive high quality voice, data,
  3 14 graphics, and video technology.
  3 15    The bill encompasses "advanced communications services"
  3 16 within the definition of "nonbasic communications services"
  3 17 applicable to telecommunications regulatory provisions.
  3 18 LSB 2263YH 83
  3 19 rn/sc/14