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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
]]]] 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 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