2004 Legislation
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HOUSE BILL NO. 624 – Telephone corp, antitrust

HOUSE BILL NO. 624

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Bill Status



H0624......................................................by STATE AFFAIRS
TELEPHONE CORPORATIONS - ANTITRUST - Amends and adds to existing law to
clarify and limit the exemption from antitrust liability for telephone
corporations that have elected regulation pursuant to Chapter 6, Title 62,
Idaho Code; and to permit the Idaho Public Utilities Commission to
establish minimum pricing of basic local exchange service.
                                                                        
02/09    House intro - 1st rdg - to printing
02/10    Rpt prt - to St Aff
02/11    Rpt out - rec d/p - to 2nd rdg
02/12    2nd rdg - to 3rd rdg
02/16    3rd rdg - PASSED - 52-18-0
      AYES -- Andersen, Barraclough, Barrett, Bedke, Bell, Black, Block,
      Boe, Bolz, Campbell, Cannon, Clark, Collins, Crow, Cuddy, Deal,
      Denney, Eberle, Edmunson, Eskridge, Field(18), Field(23), Gagner,
      Garrett, Jones, Kellogg(Nonini), Kulczyk, Lake, Langford, McKague,
      Meyer, Miller, Mitchell, Naccarato, Nielsen, Raybould, Ridinger,
      Ring, Rydalch, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Wills, Wood, Mr.
      Speaker
      NAYS -- Bauer, Bayer, Bradford, Douglas, Ellsworth, Harwood, Henbest,
      Jaquet, Langhorst, Martinez, McGeachin, Moyle, Pasley-Stuart, Ringo,
      Roberts, Robison, Sali, Trail
      Absent and excused -- None
    Floor Sponsor - Deal
    Title apvd - to Senate
02/17    Senate intro - 1st rdg - to St Aff
03/08    Rpt out - rec d/p - to 2nd rdg
03/09    2nd rdg - to 3rd rdg
03/17    Ret'd to St Aff

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 624
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TELEPHONE CORPORATIONS; AMENDING SECTION 62-617,  IDAHO  CODE,  TO
  3        CLARIFY  AND  LIMIT  THE  EXEMPTION FROM ANTITRUST LIABILITY FOR TELEPHONE
  4        CORPORATIONS THAT HAVE ELECTED REGULATION PURSUANT TO CHAPTER 6, TITLE 62,
  5        IDAHO CODE; AND AMENDING CHAPTER 6, TITLE 62, IDAHO CODE, BY THE  ADDITION
  6        OF A NEW SECTION 62-622A, IDAHO CODE, TO PERMIT THE IDAHO PUBLIC UTILITIES
  7        COMMISSION TO DETERMINE WHETHER A TELEPHONE CORPORATION NOT REGULATED PUR-
  8        SUANT  TO  TITLE 61, IDAHO CODE, IS PROVIDING BASIC LOCAL EXCHANGE SERVICE
  9        AT A PRICE BELOW ITS AVERAGE VARIABLE COSTS AND TO ENABLE  THE  COMMISSION
 10        TO  ESTABLISH  SUCH  PRICE  AT THE AVERAGE VARIABLE COST OF PROVIDING SUCH
 11        SERVICE.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION 1.  That Section 62-617, Idaho Code, be, and the  same  is  hereby
 14    amended to read as follows:
                                                                        
 15        62-617.  TELEPHONE  CORPORATION  ANTITRUST  LIABILITY. No action under the
 16    antitrust laws or any other provision or doctrine of law of the state of Idaho
 17    shall lie against a telephone corporation for providing service in  compliance
 18    with  any  order  of  the commission. Provided however, this section shall not
 19    apply to the provision of any service for which the commission has approved or
 20    acknowledged an election pursuant to section 62-605(1), Idaho Code, except  to
 21    the  extent  such  service  thereafter is the subject of a specific commission
 22    order pursuant to title 62, Idaho Code.
                                                                        
 23        SECTION 2.  That Chapter 6, Title 62, Idaho Code,  be,  and  the  same  is
 24    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 25    ignated as Section 62-622A, Idaho Code, and to read as follows:
                                                                        
 26        62-622A.  COMMISSION AUTHORITY TO ESTABLISH MINIMUM PRICING OF BASIC LOCAL
 27    EXCHANGE SERVICE. A telephone corporation may file a petition with the commis-
 28    sion alleging that another telephone corporation, not  subject  to  regulation
 29    pursuant  to title 61, Idaho Code, is offering basic local exchange service to
 30    customers in a local exchange area at a price below its average variable  cost
 31    of providing such service in the local exchange area. The commission shall, if
 32    after  a  hearing it finds by a preponderance of the evidence that the allega-
 33    tions contained in the petition are true, establish a minimum price for  basic
 34    local  exchange  service  of  the  telephone corporation in the local exchange
 35    area, which minimum price shall reflect the  telephone  corporation's  average
 36    variable cost of providing such service.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13909
The proposal is a companion bill to HB502, legislation
authorizing telephone corporations to elect an alternative form
of regulation for basic local exchange services.

The proposal amends section 62-617, Idaho Code, to clarify that,
as to telephone corporations who have exercised the election for
alternative regulation, the existing exemption from antitrust
laws applies only to the extent that the telephone corporations
service is the subject of a specific public utilities commission
order that is entered after the election has been made pursuant
to title 62, Idaho Code. This amendment is requested on behalf of
the Idaho Telephone Association.

The proposal also adds a new section to address the potential
issue of predatory pricing by any telephone corporation and
authorizes the Idaho Public Utilities Commission to take such
action as may be necessary to assure that telephone corporations
do not price basic local exchange service below the company's
average variable cost of providing the basic local exchange
service. This provision is in accord with general antitrust
principles and is intended to prevent anti-competitive pricing of
basic service. This addition is made at the request of MCI
Communications. 

                          FISCAL IMPACT


There is no fiscal impact to this proposal.










Contact
Name: Bill Roden
Phone: 208/336-7930




STATEMENT OF PURPOSE/FISCAL NOTE                      H 624