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 ofcompetitionadequate services at just, 1 15 reasonable, and affordable rates in those markets. 1 16 3. In order toencourage competition for allpromote 1 17 adequate telecommunications services and the continued 1 18 deployment of advanced communications services, the board 1 19should 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 carriershall 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 boardshouldshall 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 advancedcommunications networkscommunications 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