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H0181......................................................by STATE AFFAIRS
TELECOMMUNICATIONS - Amends existing law to eliminate inconsistencies in
the laws regulating telecommunications companies; to allow the Public
Utilities Commission to designate areas supported by universal service
funds; and to provide that any company receiving universal service funds
must comply with customer service or service quality standards.
02/08 House intro - 1st rdg - to printing
02/09 Rpt prt - to St Aff
02/22 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
02/24 3rd rdg - PASSED - 66-1-3
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, Loertscher, Mader,
Marley, McKague, Meyer, Montgomery, Mortensen, Moyle, Pischner,
Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman,
Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor(Taylor), Tilman,
Tippets, Trail, Watson, Wheeler, Williams, Zimmermann, Mr Speaker
NAYS -- Callister
Absent and excused -- Geddes, Linford, Wood
Floor Sponsor - Campbell
Title apvd - to Senate
02/25 Senate intro - 1st rdg - to St Aff
03/09 Rpt out - rec d/p - to 2nd rdg
03/10 2nd rdg - to 3rd rdg
03/11 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Parry
Floor Sponsor - Richardson
Title apvd - to House
03/12 To enrol
03/15 Rpt enrol - Sp signed
03/16 Pres signed - to Governor
03/18 Governor signed
Session Law Chapter 114
Effective: 03/18/99
H0181|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 181 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO TELECOMMUNICATIONS; AMENDING SECTION 61-121, IDAHO CODE, TO CLAR- 3 IFY DEFINITIONS RELATING TO PUBLIC UTILITIES COMMISSION JURISDICTION AND 4 EXEMPT TELECOMMUNICATIONS SERVICES; AMENDING SECTION 62-603, IDAHO CODE, 5 TO CLARIFY DEFINITIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 6 62-609, IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 7 62-610B, IDAHO CODE, TO CLARIFY A DEFINITION; AMENDING SECTION 62-610F, 8 IDAHO CODE, TO DELETE AN IMPLEMENTATION DATE AND TO ADD A NEW IMPLEMENTA- 9 TION DATE; AMENDING SECTION 62-622, IDAHO CODE, TO AUTHORIZE THE COMMIS- 10 SION TO DETERMINE NONECONOMIC REGULATORY REQUIREMENTS FOR ELIGIBLE TELE- 11 COMMUNICATIONS CARRIERS; AND DECLARING AN EMERGENCY. 12 Be It Enacted by the Legislature of the State of Idaho: 13 SECTION 1. That Section 61-121, Idaho Code, be, and the same is hereby 14 amended to read as follows: 15 61-121. TELEPHONE CORPORATION -- TELECOMMUNICATION SERVICES. (1) The term 16 "telephone corporation" when used in title 61, Idaho Code, means every corpo- 17 ration or person, their lessees, trustees, receivers or trustees appointed by 18 any court whatsoever, providing telecommunication services for compensation 19 within this state. Except as otherwise provided by statute, t 20Telephone corporations providing radio paging, mobile radio 21 telecommunication services, answering services (including computerized or 22 otherwise automated answering or voice message services), or one-way transmis- 23 sion to subscribers of (i) video programming, or (ii) other programming ser- 24 vice, and subscriber interaction, if any, which is required for the selection 25 of such video programming or other programming service or surveying are exempt 26 from any requirement of title 61, or chapter 6, title 62, Idaho Code, in the 27 provision of such services. 28 (2) "Telecommunication service" means the transmission of two-way inter- 29 active switched signs, signals, writing, images, sounds, messages, data, or 30 other information of any nature by wire, radio, lightwaves, or other 31 electromagnetic means (which includes message telecommunication service and 32 access service), which originate and terminate in this state, and are offered 33 to or for the public, or some portion thereof, for compensation. Except 34 as otherwise provided by statute, "Tt 35 elecommunication service" does not include the one-way transmission to 36 subscribers of (i) video programming, or (ii) other programming service, and 37 subscriber interaction, if any, which is required for the selection of such 38 video programming or other programming service, surveying, or the provision of 39 radio paging, mobile radio telecommunication services, answering services 40 (including computerized or otherwise automated answering or voice message ser- 41 vices), and such services shall not be subject to the provisions of title 61, 42 Idaho Code, or title 62, Idaho Code. 2 1 SECTION 2. That Section 62-603, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 62-603. DEFINITIONS. As used in this chapter: 4 (1) "Basic local exchange service" means the provision of access lines to 5 residential and small business customers with the associated transmission of 6 two-way interactive switched voice communication within a local exchange call- 7 ing area. 8 (2) "Basic local exchange rate" shall mean the monthly charge imposed by 9 a telephone corporation for basic local exchange service, but shall not 10 include any charges resulting from action by a federal agency or taxes or 11 surcharges imposed by a governmental body which are separately itemized and 12 billed by a telephone corporation to its customers. 13 (3) "Chapter" as used herein shall mean chapter 6, title 62, Idaho Code. 14 (4) "Commission" means the Idaho public utilities commission. 15 (5) "Facilities based competitor" means a local exchange carrier that 16 offers basic local exchange service either: (a) exclusively over its own tele- 17 communications service facilities; or (b) predominantly over its own facili- 18 ties in combination with the resale of telecommunications services of another 19 carrier. 20 (6) "Incumbent telephone corporation" means a telephone corporation or 21 its successor which was providing basic local exchange service on or before 22 February 8, 1996. 23 (7) "Local exchange calling area" means a geographic area encompassing 24 one (1) or more local communities as described in maps, tariffs, rate sched- 25 ules, price lists, or other descriptive material filed with the commission by 26 a telephone corporation, within which area basic local exchange rates rather 27 than message telecommunication service rates apply. 28 (8) "Message telecommunication service (MTS)" means the transmission of 29 two-way interactive switched voice communication between local exchange call- 30 ing areas for which charges are made on a per-unit basis, not including wide 31 area telecommunications service (WATS), or its equivalent, or individually 32 negotiated contracts for telecommunication services. 33 (9) "Residential customers" shall mean persons to whom telecommunication 34 services are furnished at a dwelling and which are used for personal or domes- 35 tic purposes and not for business, professional or institutional purposes. 36 (10) "Rural telephone company" means a local exchange carrier operating 37 entity to the extent that the entity: 38 (a) Provides common carrier service to any local exchange carrier study 39 area that does not include either: 40 (i) any incorporated place of ten thousand (10,000) inhabitants or 41 more, or any part thereof, based on the most recently available popu- 42 lation statistics of the bureau of the census; or 43 (ii) any territory, incorporated or unincorporated, included in an 44 urbanized area, as defined by the bureau of the census as of August 45 10, 1993; 46 (b) Provides telephone exchange service , including exchange 47 access, to fewer than fifty thousand (50,000) access lines; 48 (c) Provides telephone exchange service to any local exchange carrier 49 study area with fewer than one hundred thousand (100,000) access lines; or 50 (d) Has less than fifteen percent (15%) of its access lines in communi- 51 ties of more than fifty thousand (50,000) on the date of enactment of the 52 federal telecommunications act of 1996. 53 (11) "Small business customers" shall mean a business entity, whether an 54 individual, partnership, corporation or any other business form, to whom tele- 3 1 communication services are furnished for occupational, professional or insti- 2 tutional purposes, and which business entity does not subscribe to more than 3 five (5) access lines which are billed to a single billing location. 4 (12) "Telecommunications act of 1996" means the federal telecommunications 5 act of 1996, public law no. 104-104 as enacted effective February 8, 1996. 6 (13) "Telecommunication service" means the transmission of two-way inter- 7 active switched signs, signals, writing, images, sounds, messages, data, or 8 other information of any nature by wire, radio, lightwaves, or other 9 electromagnetic means (which includes message telecommunication service and 10 access service), which originate and terminate in this state, and are offered 11 to or for the public, or some portion thereof, for compensation. Except 12 as otherwise provided by statute, "Tt 13 elecommunication service" does not include the one-way transmission to 14 subscribers of (i) video programming, or (ii) other programming service, and 15 subscriber interaction, if any, which is required for the selection of such 16 video programming or other programming service, surveying, or the provision of 17 radio paging, mobile radio telecommunication services, answering services 18 (including computerized or otherwise automated answering or voice message ser- 19 vices), and such services shall not be subject to the provisions of title 61, 20 Idaho Code, or title 62, Idaho Code. 21 (14) "Telephone corporation" means every corporation or person, their les- 22 sees, trustees, receivers or trustees appointed by any court whatsoever, pro- 23 viding telecommunication services for compensation within this state, provided 24 that municipal, cooperative, or mutual nonprofit telephone companies shall be 25 included in this definition only for the purposes of sections 62-610 and 26 62-617 through 62-620, Idaho Code. Except as otherwise provided by 27 statute, tTelephone corporations providing radio paging, 28 mobile radio telecommunications services, answering services (including com- 29 puterized or otherwise automated answering or voice message services), or one- 30 way transmission to subscribers of (i) video programming, or (ii) other pro- 31 gramming service, and subscriber interaction, if any, which is required for 32 the selection of such video programming or other programming service or sur- 33 veying are exempt from any requirement of this chapter or title 61, Idaho 34 Code, in the provision of such services; provided, that the providers of these 35 exempted services shall have the benefits given them under section 62-608, 36 Idaho Code. 37 SECTION 3. That Section 62-609, Idaho Code, be, and the same is hereby 38 amended to read as follows: 39 62-609. IMPUTED AND NONDISCRIMINATORY ACCESS CHARGES -- COMMISSION 40 AUTHORITY. (1) A telephone corporation, which provides basic local exchange 41 service, and which also provides message telecommunications service shall 42 impute to itself its prices of special access or private line access and 43 switched access for the use of essential facilities used in the provision of 44 message telecommunications service, special access or private line access ser- 45 vices and WATS service or their equivalents. Such imputation shall be in the 46 aggregate on a service by service basis. All other providers of message tele- 47 communications service, special access or private line access services and 48 WATS service or their equivalents shall impute to themselves, in the aggregate 49 on a service by service basis, their individual cost of special or switched 50 access or its equivalent in their pricing. 51 The commission shall define in an appropriate proceeding what are essen- 52 tial facilities for the purpose of this subsection and shall resolve any dis- 53 pute which may arise under this subsection. 4 1 (2) Telecommunication services which are subject to the provisions of 2 this chapter and which services utilize special or switched access, shall be 3 made available by the telephone corporation for resale. No telephone corpora- 4 tion shall, as to its prices or charges for or the provision of such services, 5 make or grant any preference or advantage to any telephone corporation or to a 6 provider of services exempted from regulation under section 62-603(9713 ), Idaho Code, or subject any telephone corporation or 8 any provider of services exempted from regulation under section 62-603(9913 ), Idaho Code, to any prejudice or competitive disadvan- 10 tage with respect to its prices or charges for providing access to its local 11 exchange network nor establish or maintain any unreasonable difference as to 12 its prices or charges for access to its local exchange network. 13 (3) Notwithstanding the provisions of section 62-614, Idaho Code, if, 14 after negotiation, a dispute under this section exists between or among tele- 15 phone corporations or between or among telephone corporation(s) and 16 provider(s) of services exempted from regulation under section 62-603(91713 ), Idaho Code, such dispute shall be determined by the 18 commission upon petition of any affected telephone corporation or provider(s) 19 of services exempted from regulation under section 62-603(920 13 ), Idaho Code. 21 Information disclosed to the commission for resolution of disputes under 22 this section shall be provided by the telephone corporations with appropriate 23 safeguards for the protection of business or trade secrets. 24 SECTION 4. That Section 62-610B, Idaho Code, be, and the same is hereby 25 amended to read as follows: 26 62-610B. DEFINITIONS. For purposes of section 62-610, Idaho Code, and 27 sections 62-610A through 62-610F, Idaho Code, the following words and phrases 28 shall have the following meanings: 29 (1) "Eligible telecommunications carrier" means a telecommunications car- 30 rier designated by the commission who has the obligation to provide universal 31 service throughout the service area for which the designation is received. 32 (2) "Fund" means the Idaho telecommunications universal service fund 33 established by the commission pursuant to sections 62-610A and 62-610F, Idaho 34 Code. 35 (3)The"sS ervice area"36served bymeans a geographic area designated by the commission 37 for the purpose of determining universal service obligations of eligible tele- 38 communications carriers. In the case of a rural telephone company 39 "service area" means the company's "study area(s)" as established by 40 the federal communications commission and the public utilities commission. 41In the case of a nonrural telecommunications company the service area42shall be the eligible telecommunications carrier's current or commission43approved service territory.44 (4) "Support area" means a geographic area designated by the commission 45 as a high-cost area for which eligible telecommunications carrier(s) serving 46 such area may receive financial assistance from the universal service fund. 47 The commission shall consider population distribution, geographic factors, 48 cost model capabilities and other relevant considerations in making such a 49 determination. 50 (5) "Telecommunications carrier" means a telephone corporation providing 51 telecommunication services for compensation within this state, and shall, for 52 the purposes of sections 62-610A through 62-610F, Idaho Code, include munici- 53 pal, cooperative or mutual telephone companies and telecommunications compa- 5 1 nies providing wireless, cellular, personal communications services and mobile 2 radio services for compensation. 3 (6) "Universal service" means basic local exchange service and other 4 telecommunication services designated by the commission as services which 5 should be widely available to consumers in all regions of the state at just 6 and reasonable rates. 7 (7) All other terms, words or phrases shall have the meaning set forth in 8 section 62-603, Idaho Code. 9 SECTION 5. That Section 62-610F, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 62-610F. HIGH-COST SUPPORT -- ADMINISTRATION -- TRANSITION. (1)On12or before March 1, 1999No later than six (6) months after the 13 federal communications commission's implementation date of a new mechanism for 14 determining high-cost support for nonrural carriers, or December 31, 2000, 15 whichever occurs first , the commission shall establish a universal ser- 16 vice fund to enable eligible telecommunications carriers to make universal 17 service widely available to all persons within the state of Idaho at reason- 18 able rates. Eligible telecommunication carriers receiving financial support 19 shall use that support only for the provision, maintenance and upgrading of 20 services and facilities for which the support is intended. 21 (2) The commission shall initiate a proceeding to determine and adopt the 22 appropriate methodology and mechanisms to collect and distribute financial 23 assistance which are specific, predictable and sufficient in conjunction with 24 federal universal service support mechanisms to preserve and advance universal 25 service within the state of Idaho. Revenue for the fund shall be collected 26 through a uniform universal service fund surcharge as calculated by the com- 27 mission. The surcharge shall be imposed on end users of all retail telecommu- 28 nication services originating and terminating within the state of Idaho and 29 collected by the telecommunications carrier providing telecommunication ser- 30 vices to such end user. Disbursements from the fund shall be used to defray 31 the costs, as determined by the commission, of providing universal service to 32 customers within a geographic support area. Those costs shall be calculated 33 using a forward-looking cost methodology. When providing disbursements from 34 the fund, the commission shall take such actions as may be necessary to pre- 35 vent redundant cost recovery by recipients of such funds including the reduc- 36 tion of access charges subject to title 61 or 62, Idaho Code. 37 (3) The commission shall establish procedures to administer the universal 38 service fund and shall contract with a neutral third party for administration 39 of the fund. The administrator shall perform the duties required by the com- 40 mission including data gathering, collecting the surcharge revenues, disburs- 41 ing funds, and notifying the commission of any fund violations. 42 (4) The commission shall develop procedures and provide for a transition 43 period to begin no earlier than January 1, 2001, for rural telephone companies 44 to replace funding available pursuant to section 62-610, Idaho Code, with the 45 funding mechanism established pursuant to this section for the support of uni- 46 versal service. 47 SECTION 6. That Section 62-622, Idaho Code, be, and the same is hereby 48 amended to read as follows: 49 62-622. REGULATION OF BASIC LOCAL EXCHANGE RATES, SERVICES AND PRICE 50 LISTS. (1) The commission shall regulate the prices for basic local exchange 51 services for incumbent telephone corporations in accordance with the following 6 1 provisions: 2 (a) At the request of the incumbent telephone corporation, the commission 3 shall establish maximum just and reasonable rates for basic local exchange 4 service. Maximum basic local exchange rates shall be sufficient to recover 5 the costs incurred to provide the services. Costs shall include authorized 6 depreciation, a reasonable portion of shared and common costs, and a rea- 7 sonable profit. Authorized depreciation lives shall use forward-looking 8 competitive market lives. Authorized depreciation lives shall be applied 9 prospectively and to undepreciated balances. 10 (b) At the request of the telephone corporation, the commission may find 11 that existing rates for local services constitute the maximum rates. 12 (c) The commission shall issue its order establishing maximum rates no 13 later than one hundred eighty (180) days after the filing of the request 14 unless the telephone corporation consents to a longer period. 15 (d) An incumbent telephone corporation may charge prices lower than the 16 maximum basic local exchange rates established by the commission. Provided 17 however, upon the petition of a nonincumbent telephone corporation, the 18 commission shall establish a minimum price for the incumbent telephone 19 corporation's basic local exchange service if the commission finds, by a 20 preponderance of the evidence, that the incumbent telephone corporation's 21 prices for basic local exchange services in the local exchange area are 22 below the incumbent telephone corporation's average variable cost of pro- 23 viding such services. 24 (e) After the commission has established maximum basic local exchange 25 rates, an incumbent telephone corporation may change its tariffs or price 26 lists reflecting the availability, price, terms and conditions for local 27 exchange service effective not less than ten (10) days after filing with 28 the commission and giving notice to affected customers. Changes to tariffs 29 or price lists that are for nonrecurring services and that are quoted 30 directly to the customer when an order for service is placed, or changes 31 that result in price reductions or new service offerings, shall be effec- 32 tive immediately upon filing with the commission and no other notice shall 33 be required. 34 (2) The commission shall not regulate the prices for basic local exchange 35 services for telephone corporations that were not providing such local service 36 on or before February 8, 1996. Provided however, such telephone corporation 37 providing basic local exchange services shall file price lists with the com- 38 mission that reflect the availability, price, terms and conditions for such 39 services. Changes to such price lists shall be effective not less than ten 40 (10) days after filing with the commission and giving notice to affected cus- 41 tomers. Changes to price lists that are for nonrecurring services and that 42 are quoted directly to the customer when an order for service is placed, or 43 changes that result in price reductions or new service offerings, shall be 44 effective immediately upon filing with the commission and no other notice 45 shall be required. 46 (3) The commission shall cease regulating basic local exchange rates in a 47 local exchange calling area upon a showing by an incumbent telephone corpora- 48 tion that effective competition exists for basic local exchange service 49 throughout the local exchange calling area. Effective competition exists 50 throughout a local exchange calling area when either: 51 (a) Actual competition from a facilities-based competitor is present for 52 both residential and small business basic local exchange customers; or 53 (b) There are functionally equivalent, competitively priced local ser- 54 vices reasonably available to both residential and small business custom- 55 ers from a telephone corporation unaffiliated with the incumbent telephone 7 1 corporation. 2 (4) Telephone corporations shall not resell: 3 (a) A telecommunications service that is available at retail only to a 4 category of subscribers to a different category of subscribers; 5 (b) A means-tested service to ineligible customers; or 6 (c) A category of service to circumvent switched or special access 7 charges. 8 (5) The commission shall determine the noneconomic regulatory require- 9 ments for all telephone corporations providing basic local exchange service 10 or designated as an eligible telecommunications carrier pursuant to sec- 11 tions 62-610A through 62-610F, Idaho Code, including, but not limited 12 to, such matters as service quality standards, provision of access to carriers 13 providing message telecommunications service, filing of price lists, customer 14 notice and customer relation rules. 15 SECTION 7. An emergency existing therefor, which emergency is hereby 16 declared to exist, this act shall be in full force and effect on and after its 17 passage and approval.
STATEMENT OF PURPOSE
RS08703C1
This Bill amends various sections of the Public Utilities Law and
the Idaho Telecommunications Act. It amends Idaho Code 61-121 and 62
603(13) and (14) to eliminate inconsistencies between these
sections and last year's amendments to Idaho Code 62-610B(5), 62-610F, and 56-901(2). These later sections now require wireless
telecommunication providers to contribute to the state Universal
Service Fund (USF) and the Idaho Telecommunications Service
Assistance Program. Changes to sections 62-603(10)(a) and 62-609(2) and (3) are housekeeping amendments to correct a
typographical error and update cross-references.
Amends Idaho Code 62-610B(3) to allow the Commission to designate
an area smaller than a non-rural company's entire "service
territory'' as the area to be supported by state universal service
funds to foster competition. The change would foster competition
and make the definition compatible with section 62-610E and the
federal Telecommunications Act, 47 U.S.C. 253(a).
Amends Idaho Code 62-610F to delay implementation of the new
universal service fund until six months after the Federal
Communications Commission adopts and implements a new mechanism
for determining high cost support for non-rural telecommunication
carriers or December 31, 2000, whichever occurs first.
Amends Idaho Code 62-622(5) to make clear that any tele-communication provider that voluntarily requests eligible
telecommunications carrier (ETC) status and subsequently receives
state Universal Service Funds is subject to the same non-economic
regulatory requirements (e.g., customer service or service quality
standards) as all other ETCs.
FISCAL IMPACT
There is no fiscal impact to the general fund or to the public
utilities fund for FY00.
CONTACT
Name: Tonya Clark
Agency: Idaho Public Utilities Commission
Phone: 334-0316
Statement of Purpose/Fiscal Impact H 181