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HOUSE BILL NO. 741 – Telecommunications Act of 2006


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H0741......................................................by STATE AFFAIRS
TELECOMMUNICATIONS ACT OF 2006 - Adds to, amends and repeals existing law
to enact the "Telecommunications Act of 2006"; and to revise the authority
of the Public Utilities Commission to regulate telecommunications carriers.
02/27    House intro - 1st rdg - to printing
02/28    Rpt prt - to St Aff

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 741
                                 BY STATE AFFAIRS COMMITTEE
  1                                        AN ACT
 41    Be It Enacted by the Legislature of the State of Idaho:
 42        SECTION  1.  That Title 62, Idaho Code, be, and the same is hereby amended
 43    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 44    ter 14, Title 62, Idaho Code, and to read as follows:
  1                                      CHAPTER 14
  2                            TELECOMMUNICATIONS ACT OF 2006
  3        62-1401.  SHORT  TITLE. This chapter shall be known and may be referred to
  4    as the "Telecommunications Act of 2006."
  5        62-1402.  LEGISLATIVE INTENT. (1) The legislature of the  state  of  Idaho
  6    finds  that  telecommunications  services are essential to the health, welfare
  7    and economic well-being of the citizens of the state of Idaho and there  is  a
  8    continuing need for legislation to protect and maintain high-quality universal
  9    telecommunications  at  affordable  rates  for all classes of customers and to
 10    encourage innovation within the industry by a balanced program  of  regulation
 11    and competition.
 12        (2)  The legislature further finds that the telecommunications industry is
 13    in a state of transition from a regulated public utility industry to a compet-
 14    itive industry. The legislature encourages the development of open competition
 15    in  the telecommunications industry in accordance with provisions of Idaho law
 16    and consistent with the federal telecommunications act of 1996.  This  chapter
 17    therefore  removes telephone companies from traditional public utility regula-
 18    tion and establishes reasonable provisions recognizing  the  transition  to  a
 19    competitive industry.
 20        (3)  The  commission shall administer these statutes with respect to tele-
 21    communications rates and services in accordance with these policies and appli-
 22    cable federal law.
 23        62-1403.  DEFINITIONS. As used in this chapter:
 24        (1)  "Access line" means a communications facility provisioned for a  spe-
 25    cific customer to enable telecommunication service to be provided to that cus-
 26    tomer.
 27        (2)  "Basic  local  exchange  rate"  means the monthly charge imposed by a
 28    telecommunications carrier for basic local exchange service, not including any
 29    charges resulting from action by a  federal  agency  or  taxes  or  surcharges
 30    imposed  by  a  governmental body that are separately itemized and billed by a
 31    telecommunications carrier to its customers.
 32        (3)  "Basic local exchange service" means the provision of access lines to
 33    residential and small business customers with the associated  transmission  of
 34    two-way interactive voice communication within a local exchange calling area.
 35        (4)  "Carrier  of  last resort" means a telecommunications carrier that is
 36    required to provide universal service on reasonable terms  and  conditions  to
 37    all  customers within a service area designated by the commission. No telecom-
 38    munications carrier shall be designated a carrier of last resort  except  upon
 39    its application to the commission requesting such designation. Incumbent local
 40    exchange  carriers  shall  be  designated  carriers of last resort only within
 41    their previously certificated service areas.
 42        (5)  "Commercial mobile radio service provider" means a provider  of  com-
 43    mercial mobile service as defined in 47 U.S.C. section 332(d).
 44        (6)  "Commission" means the Idaho public utilities commission.
 45        (7)  "Incumbent local exchange carrier" means a telecommunications carrier
 46    or  its  successor in interest that was providing basic local exchange service
 47    within the state of Idaho on or before February 8, 1996.
 48        (8)  "Interexchange calling" or "message telecommunications service" means
 49    the transmission of two-way  interactive  voice  communication  between  local
 50    exchange  calling areas, excluding services offered by commercial mobile radio
 51    service providers.
 52        (9)  "Local exchange calling area" means a  geographic  area  encompassing
  1    one  (1)  or  more communities described in maps, tariffs or other descriptive
  2    material filed with the commission where local exchange rates apply.  For  the
  3    purpose  of  determining  whether  a  call  is  a  local  exchange  call or an
  4    interexchange call to which access charges apply, a call is not a  local  call
  5    if  the originating telecommunications carrier's tariff or price list does not
  6    classify the call as a local call.
  7        (10) "Local exchange carrier" means a telecommunications carrier that pro-
  8    vides local exchange service within one (1) or  more  local  exchange  calling
  9    areas within the state of Idaho.
 10        (11) "Local  exchange service" means the provision of access lines to cus-
 11    tomers with the associated transmission of two-way  interactive  communication
 12    within a local exchange calling area.
 13        (12) "Originating telecommunications carrier" means the telecommunications
 14    carrier  whose  end  user customer initiates a telecommunications transmission
 15    and who receives the end user's payment, if any, for that transmission.
 16        (13) "Residential customer" means a person or persons to whom telecommuni-
 17    cation service is furnished primarily for personal or  domestic  purposes  and
 18    not primarily for business, professional or institutional purposes.
 19        (14) "Service  area"  means  a  geographic area in which a carrier of last
 20    resort has been designated by the commission for the purpose of providing uni-
 21    versal service.
 22        (15) "Small business customer" shall mean a business  entity,  whether  an
 23    individual,  partnership, corporation, hospital, or school, or any other busi-
 24    ness form, to whom basic local exchange service is furnished for occupational,
 25    professional or institutional purposes, and which  business  entity  does  not
 26    subscribe  to more than five (5) access lines billed to a single billing loca-
 27    tion.
 28        (16) "Stand-alone basic local exchange rate" means the monthly charge made
 29    by a telecommunications carrier to a residential or small business basic local
 30    exchange service customer for a single access line that is not included  in  a
 31    package of services or price discounted in a promotional offering, not includ-
 32    ing  any  charges  resulting  from  action  by  a  federal  agency or taxes or
 33    surcharges imposed by a governmental body that  are  separately  itemized  and
 34    billed by the telecommunications carrier to its customers.
 35        (17) "Telecommunication  service" means the transmission of two-way inter-
 36    active sounds, messages, data, or other information of  any  nature  by  wire,
 37    radio,  lightwaves,  or  other electromagnetic means, together with associated
 38    signals, which originate and terminate in this state, and are  offered  to  or
 39    for the public, or some portion thereof. Except as otherwise provided by stat-
 40    ute, "telecommunication service" does not include:
 41        (a)  The  transmission  of  video programming or other programming service
 42        and subscriber interaction, if any, which is required for the selection of
 43        such programming service;
 44        (b)  Paging or answering services,  including  computerized  or  otherwise
 45        automated answering or voice message services; or
 46        (c)  Information service or internet access service.
 47        (18) "Telecommunications act of 1996" means the federal telecommunications
 48    act of 1996, public law no. 104-104, as enacted effective February 8, 1996.
 49        (19) "Telecommunications carrier" means any person or business entity pro-
 50    viding  telecommunication service within this state except a commercial mobile
 51    radio service provider unless the commercial mobile service provider requests,
 52    and is granted, carrier of last resort status.
 53        (20) "Telephone corporation" means any telecommunications carrier except:
 54        (a)  A cooperative or mutual nonprofit telephone company; or
 55        (b)  A commercial mobile radio service provider.
  1        (21) "Transition period" means a time period of three (3) years  from  the
  2    effective date of the election by a telephone corporation, pursuant to section
  3    62-605(1)  and  (2),  Idaho  Code, as said section was amended by chapter 200,
  4    laws of 2005, to exclude basic local exchange services from regulation  pursu-
  5    ant  to title 61, Idaho Code, or pursuant to section 62-622(1), Idaho Code, as
  6    those provisions of law existed prior to the effective date of this act, or to
  7    determine its own universal service or basic local exchange service rates  for
  8    residential  and small business customers throughout its service area pursuant
  9    to section 62-1409(2), Idaho Code, whichever  election  date  first  occurred.
 10    The  commission  may  by  order during the one hundred eighty (180) day period
 11    prior to the expiration of  this  transition  period,  extend  the  transition
 12    period  for  two (2) additional years if the commission finds that such action
 13    is necessary to protect the public interest.  The  commission  shall,  if  the
 14    transition  period  is  extended  as  provided  herein,  file  a  copy  of the
 15    commission's order with the governor and the legislature.
 16        (22) "Universal service" means basic local exchange service and any  other
 17    telecommunication services that may be designated by the commission, in accor-
 18    dance  with  the  provisions  of section 62-1408, Idaho Code, that carriers of
 19    last resort must make reasonably available to all  persons  who  request  such
 20    services within their service areas.
 21        (23) "Weighted  statewide  average  rate"  means  the average rate paid by
 22    Idaho telecommunication service customers for the intrastate service in  ques-
 23    tion,  not  including  any  disaggregated component of bundled rates.  For the
 24    purpose of determining eligibility for distributions from the  universal  ser-
 25    vice fund established by section 62-1411, Idaho Code, the basic local exchange
 26    service  rates  in effect on July 1, 2005, shall constitute the basis for such
 27    calculation, unless the commission determines  that  changes  in  basic  local
 28    exchange  service  rates  subsequent  to July 1, 2005, should be used for such
 29    calculations.
 31    CHAPTER. (1) All telecommunication  service  and  telecommunications  carriers
 32    shall,  on  and after the effective date of this act, be regulated pursuant to
 33    the provisions of this chapter, and not pursuant to the provisions of chapters
 34    1 through 10, title 61, Idaho Code, except as specifically adopted  by  refer-
 35    ence  in  this chapter. Any provisions of law that are inconsistent or in con-
 36    flict with the provisions of this chapter shall be, and are  hereby  repealed,
 37    to  the  extent of their applicability to telecommunication service within the
 38    state of Idaho.
 39        (2)  Notwithstanding any other provision of this chapter, a telecommunica-
 40    tions carrier that was subject to the  provisions  of  section  61-538,  Idaho
 41    Code,  prior to the effective date of this act shall continue to be subject to
 42    the provisions of such section.
 43        62-1405.  COMMISSION JURISDICTION AND AUTHORITY. The commission shall have
 44    continuing jurisdiction and authority to administer and  enforce  the  express
 45    provisions of this chapter. In addition, subject to the limitations and condi-
 46    tions  contained elsewhere in this chapter, the commission shall have the fol-
 47    lowing general jurisdiction and authority over telecommunication service,  and
 48    may  promulgate  rules  as  necessary to carry out its duties pursuant to this
 49    chapter to:
 50        (1)  Determine the noneconomic regulatory requirements relating  to  basic
 51    local  exchange service for all telephone corporations who provide basic local
 52    exchange service including, but not limited to, such matters  as  basic  local
 53    exchange  service quality standards, provision of access to telecommunications
  1    carriers providing interexchange calling or  message  telecommunications  ser-
  2    vice, filing of price lists, customer notices and customer relation rules, and
  3    billing  practices and procedures, which requirements shall be technologically
  4    and competitively neutral.
  5        (2)  Provide by rule for the maintenance of uniform  systems  of  accounts
  6    and business records by telephone corporations who elect to have their univer-
  7    sal service rates determined under section 62-1409(1), Idaho Code.
  8        (3)  Designate  telecommunications  carriers as carriers of last resort in
  9    accordance with uniform criteria established by the commission  and  supervise
 10    the  payment of universal service fund support in accordance with the terms of
 11    this chapter.
 12        (4)  Establish universal service rates for incumbent local exchange carri-
 13    ers that are also telephone corporations who elect to have  universal  service
 14    rates established in accordance with section 62-1409(1), Idaho Code.
 15        (5)  Require  the  production of a telephone corporation's books, records,
 16    or other material  or  evidence  as  necessary  for  the  performance  of  the
 17    commission's  duties, and to issue subpoenas compelling the attendance of wit-
 18    nesses at commission proceedings.
 19        (6)  Maintain on file for public inspection telephone corporations' sched-
 20    ules of rates, charges and conditions of service  for  telecommunication  ser-
 21    vices.
 22        (7)  Participate  and  represent  the  interests of the general public and
 23    Idaho telecommunication service customers  in  any  proceeding  before  local,
 24    state or federal public officials or agencies.
 25        (8)  Perform such duties as may be expressly authorized or required of the
 26    commission by the communications act of 1934, as amended, and regulations law-
 27    fully promulgated thereunder.
 28        (9)  Nothing  in  this  chapter shall be construed to grant the commission
 29    jurisdiction or authority over products or services  over  which  the  federal
 30    government  has  exercised,  and  continues  to exercise, its power to preempt
 31    state regulation, regardless of whether such preemption is contained  in  fed-
 32    eral  statutes,  judicial  decisions,  or  federal  communications  commission
 33    orders.  Except  as expressly provided in sections 62-1406(1), 62-1411(1), and
 34    62-1414, Idaho Code, nothing in this chapter shall be construed to  grant  the
 35    commission  jurisdiction over commercial mobile radio service providers unless
 36    such a  provider  becomes  a  carrier  of  last  resort,  in  which  case  the
 37    commission's  jurisdiction  over  such provider pursuant to this chapter shall
 38    attach only to the  commercial  mobile  radio  service  provider's  activities
 39    within the commercial mobile radio service provider's service area.
 40        62-1406.  REGISTRATION  CERTIFICATES.  (1) All telecommunications carriers
 41    and commercial mobile radio service providers shall file with the  commission,
 42    with updates as necessary to keep the information current, a registration cer-
 43    tificate setting forth the following information:
 44        (a)  The name of the telecommunications carrier or commercial mobile radio
 45        service provider and the address of its principal place of business within
 46        the state;
 47        (b)  A  brief,  general  description  of  the  telecommunication  services
 48        offered by such telecommunications carrier or commercial mobile radio ser-
 49        vice  provider  and  the  general  area served by it or in which it offers
 50        telecommunication services;
 51        (c)  The name, address and telephone number of a representative or  repre-
 52        sentatives  authorized  to respond to commission and customer inquiries or
 53        complaints.
 54        (2)  All carriers of last resort shall file with the commission, in  addi-
  1    tion  to  the  information  required  in  subsection (1) of this section, maps
  2    depicting their local calling area or areas and service area or areas.
  3        (3)  The registration statements required by this section shall be  public
  4    information  and shall be made reasonably available to the public at all times
  5    during normal business hours.
  6        62-1407.  REQUIREMENT FOR PRICE LIST FILING. All incumbent local  exchange
  7    carriers and carriers of last resort that draw from the universal service fund
  8    and  provide universal service, local exchange service, interexchange service,
  9    wide area telecommunications service (WATS) or access to their local  exchange
 10    network  for  the  provision  of such services by the use of special access or
 11    private line access and switched access, or their equivalents, shall file with
 12    the commission price lists that reflect the availability,  prices,  and  terms
 13    and  conditions for those services. Incumbent local exchange carriers and car-
 14    riers of last resort shall provide such services only in accordance with  such
 15    price  lists unless modified by individually negotiated telecommunication ser-
 16    vice contracts. Changes to such price lists, except as  hereinafter  provided,
 17    shall  be  effective not less than ten (10) days after filing with the commis-
 18    sion and giving public notice to affected customers. Changes  to  price  lists
 19    that  are  for  nonrecurring services and that are quoted directly to the cus-
 20    tomer when an order is placed, or changes that  result  in  price  reductions,
 21    shall  be  effective immediately but shall be filed with the commission within
 22    thirty (30) days after the effective date and no other public notice shall  be
 23    required.  The commission shall by rule establish the form of such price lists
 24    and make the same available for public inspection.
 25        62-1408.  UNIVERSAL SERVICE. Universal service is  an  evolving  level  of
 26    telecommunication  services  to  which  consumers  in all regions of the state
 27    should have access. The commission may review the level  of  telecommunication
 28    services  within the state on a periodic basis and designate those services in
 29    addition to basic local exchange service that should be made available to con-
 30    sumers by carriers of last resort to meet their obligations to provide univer-
 31    sal service. The commission shall consider definitions  of  universal  service
 32    adopted  by the federal communications commission pursuant to the telecommuni-
 33    cations act of 1996, but the commission shall not add additional  telecommuni-
 34    cation  services  to the definition of universal service unless the commission
 35    allows carriers of last resort to recover the additional  costs  of  providing
 36    and  maintaining  such  additional services, either through increased rates or
 37    universal service funding, or both, and further finds that such telecommunica-
 38    tion services:
 39        (1)  Have, through the operation of market choices by customers, been sub-
 40    scribed to by a substantial majority of residential customers;
 41        (2)  Are being deployed in public telecommunications networks by  telecom-
 42    munications carriers throughout the state; and
 43        (3)  Are  necessary  to  serve the public interest, convenience and neces-
 44    sity.
 45        62-1409.  UNIVERSAL SERVICE RATES. On or before the effective date of this
 46    act, and on the first business day of each  year  thereafter,  each  incumbent
 47    local  exchange carrier that is also a telephone corporation and designated as
 48    a carrier of last resort shall elect to have its rates for  universal  service
 49    for  residential  customers and small business customers determined by one (1)
 50    of the following methods:
 51        (1)  The commission shall initially determine just  and  reasonable  rates
 52    for  universal  service and intrastate access charges based upon the telephone
  1    corporation's total revenue requirement for such services, including a reason-
  2    able rate of return on the telephone corporation's  intrastate  investment  in
  3    telecommunications  facilities.  At  the request of the telephone corporation,
  4    the commission may find that rates previously established  by  the  commission
  5    under  title  61, Idaho Code, shall constitute the rates for universal service
  6    for the purposes of this section. The rates determined in accordance with this
  7    subsection (1) shall remain in effect until changed by commission order at the
  8    carrier of last resort's request.
  9        (2)  The telephone corporation may determine  its  own  universal  service
 10    rates  for  residential  customers and small business customers throughout its
 11    service area.
 13    bent  telephone corporation which held a certificate of convenience and neces-
 14    sity on January 1, 1988, issued by the commission, and which telephone  corpo-
 15    ration,  pursuant  to  sections  62-604  and 62-605, Idaho Code, as amended by
 16    chapter 200, laws of 2005, elected to exclude  all  of  its  telecommunication
 17    services,  including basic local exchange service, from regulation pursuant to
 18    title 61, Idaho Code, and telephone corporations that elect to establish their
 19    own rates for universal service pursuant to section  62-1409(2),  Idaho  Code,
 20    shall  be  subject to the following pricing restrictions during the transition
 21    period defined in section 62-1403(21), Idaho Code:
 22        (1)  During the first year of the transition period the price  for  stand-
 23    alone  basic  local  exchange service shall be capped at a rate of ten percent
 24    (10%) above the rates in effect at the time of the election;
 25        (2)  During each succeeding year of the transition period  the  price  cap
 26    shall be increased by an additional amount equal to the difference between the
 27    rate  at  the time of the election and the price cap established hereunder for
 28    the first year of the transition period;
 29        (3)  The price cap established during the transition period  shall  in  no
 30    event  exceed  the maximum basic local exchange rate determined by the commis-
 31    sion for any telephone corporation within the state of Idaho on the  date  the
 32    telephone corporation made its election; and
 33        (4)  The  telephone  corporation  shall not increase its stand-alone basic
 34    local exchange service rate to residential or small business customers in  any
 35    local  exchange  calling  area to an amount that is higher than that telephone
 36    corporation's stand-alone basic local exchange rate for residential and  small
 37    business  customers in the telephone corporation's local exchange calling area
 38    having the highest number of basic local exchange service residential or busi-
 39    ness customers within the state.
 40        62-1411.  UNIVERSAL SERVICE FUND. (1) There is hereby established an Idaho
 41    universal service fund to be supervised and administered  by  the  commission.
 42    Revenue  for  the  fund shall be collected through a uniform universal service
 43    fund surcharge as determined by the commission. The commission shall establish
 44    the surcharge at a level that is sufficient to  fund  universal  service  fund
 45    payments  on  a continuing basis. The surcharge shall be imposed on each tele-
 46    communications carrier's and each commercial mobile service provider's  retail
 47    end  user telephone numbers in use within the state of Idaho and shall be col-
 48    lected by the telecommunications carrier, commercial mobile service  provider,
 49    or other provider utilizing a North American numbering plan number assigned to
 50    a  specific  end  user that provides that end user with the ability to receive
 51    calls. The commission shall establish  equitable  numbering  methods  for  the
 52    assessment  of  multinumber residence, business or data service end users. Any
 53    balances held in the Idaho universal service fund created by  section  62-610,
  1    Idaho  Code,  shall,  on the effective date of this act, be transferred by the
  2    commission to the Idaho universal service fund created by this section.
  3        (2)  The commission shall designate geographic  service  areas  for  which
  4    financial  assistance shall be made available from the fund to assist carriers
  5    of last resort to meet universal service obligations. Carriers of last  resort
  6    receiving  financial  support  shall  use that support only for the provision,
  7    maintenance and upgrading of services and facilities for which the support  is
  8    intended.
  9        (3)  The  commission  shall  establish  procedures to administer the Idaho
 10    universal service fund and shall contract  with  a  neutral  third  party  for
 11    administration  of  the  fund.  The  administrator  shall  perform  the duties
 12    required by the commission including data gathering, collecting the  surcharge
 13    revenues,  disbursing  funds,  and notifying the commission of any fund viola-
 14    tions.
 15        62-1412.  UNIVERSAL SERVICE FUND SUPPORT.  Carriers  of  last  resort  who
 16    received  distributions prior to the effective date of this act from the Idaho
 17    universal service fund created by section 62-610, Idaho Code, under prior law,
 18    and who elect to have their universal service rates  established  pursuant  to
 19    section  62-1409(2),  Idaho  Code,  shall continue to receive support from the
 20    Idaho universal service fund at the levels previously approved by the  commis-
 21    sion  during  the  transition period. Thereafter, such companies and, from the
 22    effective date of this act, all other carriers of last  resort  shall  receive
 23    support from the Idaho universal service fund only in the manner prescribed in
 24    this section.
 25        (1)  Carriers  of  last resort who elect to be price regulated pursuant to
 26    section 62-1409(1), Idaho Code, shall receive monthly Idaho universal  service
 27    fund  support sufficient to meet any unrecovered, residual revenue requirement
 28    from all jurisdictional revenue sources  after  universal  service  rates  are
 29    established  at one hundred twenty-five percent (125%) or more of the weighted
 30    statewide average rate and switched access charges are  established  equal  to
 31    one hundred percent (100%) of the weighted statewide average rate.
 32        (2)  Carriers of last resort who serve less than fifteen thousand (15,000)
 33    total  access  lines  in the state of Idaho and serve a service area with less
 34    than fifteen (15) incumbent local exchange carrier  access  lines  per  square
 35    mile,  may  elect to receive for each residential and business access line for
 36    which it provides carrier of last resort service within its  service  area  an
 37    amount equal to seventy-five percent (75%) of the average Idaho universal ser-
 38    vice fund support per residential or business access line, as the case may be,
 39    as  of  the effective date of this act, provided that such carriers shall file
 40    price lists with universal service rates for residential customers  and  small
 41    business  customers  of not less than seventy-five percent (75%) nor more than
 42    one hundred twenty-five percent (125%) of the weighted statewide average rate.
 43        (3)  On or before June 1 of each year, each carrier of  last  resort  that
 44    receives universal service funding pursuant to subsection (2) of this section,
 45    shall  file  an  application  with  the  commission, in a form similar to that
 46    required by section 63-3029I(4), Idaho Code, requesting approval of  all  uni-
 47    versal  service  fund expenditures for the prior calendar year.  Such applica-
 48    tion shall include a notarized certification by an officer  of  the  applicant
 49    that universal service funds have been expended for the provision, maintenance
 50    or  upgrading of services and facilities for which the support is intended, as
 51    well as a list of the expenditures by account. Should the commission determine
 52    that any portion of the expenditures was not used for the purposes  for  which
 53    support  is  intended,  the  commission  shall  subtract  that amount from the
 54    applicant's then current year's universal service fund distribution  or  order
  1    immediate restitution of the amount disallowed.
  2        62-1413.  BUNDLING  ALLOWED.  All carriers of last resort shall offer uni-
  3    versal service as a stand-alone basic local exchange rate service option,  but
  4    nothing  in  this chapter shall limit prices for bundled services that include
  5    universal service, nor require a carrier of last resort to  state  a  separate
  6    price  for  universal service that is offered as part of a package of goods or
  7    services.
  8        62-1414.  TELECOMMUNICATIONS CARRIER RESTRICTIONS. Except upon the  agree-
  9    ment  of  the  telecommunications  carriers or commercial mobile radio service
 10    provider(s) involved, no originating telecommunications carrier or  commercial
 11    mobile radio service provider shall:
 12        (1)  Charge  other  telecommunications carriers or commercial mobile radio
 13    service  providers  for  the  transport  or  termination  of  the  originating
 14    carrier's telecommunication service other than originating 800 number service;
 15    or
 16        (2)  Transmit or transport telecommunication traffic without  a  telephone
 17    number,  carrier  identification code, or some other identifier or identifying
 18    mechanism consistent with general industry practices and sufficient to  enable
 19    all  other  telecommunications  carriers  or  commercial  mobile radio service
 20    providers participating in the delivery of the  telecommunication  traffic  to
 21    identify the originating telecommunications carrier or commercial mobile radio
 22    service  provider and, if appropriate, bill that telecommunications carrier or
 23    commercial mobile radio service provider for services provided.
 24        62-1415.  RESTRICTIONS ON RESALE. Telecommunications  carriers  shall  not
 25    resell:
 26        (1)  A  telecommunication  service  that  is available at retail only to a
 27    specified category of subscribers to a different category of subscribers; or
 28        (2)  A means-tested service to ineligible customers.
 30    carrier  of  last resort may not withdraw or otherwise discontinue basic local
 31    exchange service to a local exchange calling  area  unless  one  (1)  or  more
 32    alternative telecommunications carriers are furnishing the respective telecom-
 33    munication  service  or  equivalent  service  to  the  customers in such local
 34    exchange calling area at the time such service is withdrawn or otherwise  dis-
 35    continued.
 36        (2)  A  carrier  of last resort proposing to withdraw or otherwise discon-
 37    tinue services as set forth in subsection (1)  of  this  section  to  a  local
 38    exchange area shall file a notice of such withdrawal or discontinuance of ser-
 39    vice  with  the  commission and shall publish a notice of such withdrawal in a
 40    legal newspaper circulated within the local exchange area,  and  provide  such
 41    other reasonable notice as may be required by the commission.
 42        (3)  Any  person or telecommunications carrier affected by a withdrawal or
 43    discontinuance of such services by a carrier of last resort  subject  to  this
 44    chapter  may,  within  thirty  (30)  days  from the date of publication of the
 45    notice, apply to the commission to determine whether such withdrawal  or  dis-
 46    continuance of service is authorized pursuant to this section.
 47        62-1417.  CARRIER  OF  LAST RESORT -- COMMISSION AUTHORITY. If the commis-
 48    sion determines that the public interest requires the extension  of  universal
 49    service  to  an  area or community that does not have such services available,
 50    and if no telecommunications carrier will voluntarily provide such service  on
  1    reasonable  terms,  the  commission  may require any carrier of last resort to
  2    provide universal service to the area on such terms as  are  just,  reasonable
  3    and  compensatory  to  the  designated  carrier of last resort. The commission
  4    shall by order provide for one (1) or more payments from the  Idaho  universal
  5    service fund or, notwithstanding any other provisions of this chapter, author-
  6    ize  the  carrier  of last resort to charge rates for such service within such
  7    area or community that, together with  payments  from  the  universal  service
  8    fund,  will  be sufficient to support the capital cost and the ongoing expense
  9    of providing service to the affected area or community whether or not the car-
 10    rier of last resort is otherwise eligible for payment from the Idaho universal
 11    service fund.
 13    alternative dispute resolution process is not otherwise provided by  contract,
 14    municipal   or  local  franchise  requirements,  or  a  cooperative  telephone
 15    company's written policies, the commission shall have the authority to  inves-
 16    tigate  and  resolve  complaints  made by telecommunications carrier customers
 17    concerning the quality and availability of universal service, deposit require-
 18    ments for such service or disconnection of such service, or whether price  and
 19    conditions  of other telecommunications services are in conformance with filed
 20    tariffs or price lists. The commission may grant or deny in whole or  in  part
 21    the  subscriber's complaint and order reparation, a billing credit, or provide
 22    other noneconomic relief as is reasonable based on  the  evidence.  Any  final
 23    order  of  the  commission  entered  pursuant  to this section may be enforced
 24    against any telecommunications carrier by an affected person or by the commis-
 25    sion.
 26        (2)  If a telephone corporation customer notifies the  telephone  corpora-
 27    tion  that an unauthorized charge from a third party service provider has been
 28    included on the telephone customer's bill by the  telephone  corporation,  the
 29    telephone corporation shall remove the disputed charge from the bill and shall
 30    credit  to  the customer any amounts for unauthorized charges, whether paid or
 31    unpaid, that were billed by the telephone corporation on behalf of  the  third
 32    party  service  provider  during  the  period  of  six (6) months prior to the
 33    customer's notification to the telephone corporation that unauthorized charges
 34    from a third party provider have been included on  the  telephone  corporation
 35    customer's  bill.   Nothing  contained  herein shall restrict the right of the
 36    telephone corporation to recover credited charges from the third party service
 37    provider.
 39    two  (2) or more telephone corporations or cooperative telephone companies are
 40    unable to agree on any matter relating  to  telecommunication  service  issues
 41    between  such  companies, and an alternative dispute resolution process is not
 42    otherwise provided by the telephone  corporations'  or  cooperative  telephone
 43    companies'  contractual  agreements  or otherwise dictated by law, then either
 44    company may apply to the commission for determination of the matter.
 45        (2)  Upon receipt of the application, the commission shall have  jurisdic-
 46    tion  to  conduct  an  investigation or evidentiary hearings, and to issue its
 47    findings and order determining such dispute in accordance with applicable pro-
 48    visions of law.
 50    under  the  antitrust  laws  or  any other provision or doctrine of law of the
 51    state of Idaho shall lie against a telecommunications  carrier  for  providing
 52    service in compliance with any order of the commission, provided however, this
  1    section  shall  not apply to commission approval or acknowledgment of an elec-
  2    tion pursuant to section 62-1409(2), Idaho Code, or prior law, except  to  the
  3    extent such service thereafter is the subject of a specific commission order.
  4        (2)  A  telecommunications carrier may file a petition with the commission
  5    alleging that another telecommunications carrier, not  subject  to  regulation
  6    under  section  62-1409(1) or (2), Idaho Code, is offering local exchange ser-
  7    vice to customers in a local exchange calling area at a price below its  aver-
  8    age  variable  cost  of  providing  such service in the local exchange calling
  9    area.  The commission shall, if after a hearing it finds by a preponderance of
 10    the evidence that the allegations contained in the petition are  true,  estab-
 11    lish  a  minimum  price  for  local exchange service of the telecommunications
 12    carrier in the local exchange calling area, which minimum price shall  reflect
 13    the  telecommunications carrier's average variable cost of providing such ser-
 14    vice.
 15        62-1421.  PREEMPTION. The provisions of this chapter  preempt,  eliminate,
 16    and prohibit any economic, franchise or licensing regulation of telecommunica-
 17    tions  carriers  subject  to this chapter by cities, counties, incorporated or
 18    unincorporated areas, special use districts, or any other  local  governmental
 19    entity of any kind.
 20        62-1422.  PROCEDURE BEFORE COMMISSION -- APPEALS. (1) In all matters aris-
 21    ing  under  this  chapter, which are submitted to the commission for decision,
 22    order or review, procedure shall be governed  by  the  commission's  rules  of
 23    practice and procedure.
 24        (2)  Reconsideration  of,  appeal from, and stay of orders issued pursuant
 25    to this chapter shall be governed by sections  61-624  through  61-638,  Idaho
 26    Code, as for orders of the commission in other matters.
 27        62-1423.  CIVIL  PENALTY FOR VIOLATION. (1) Any telecommunications carrier
 28    that violates or fails to comply with any final order, decision or  rule  duly
 29    issued  by the commission pursuant to this chapter shall be subject to a civil
 30    penalty of not to exceed two thousand dollars ($2,000) for each day the viola-
 31    tion continues.
 32        (2)  Actions to recover penalties under this chapter shall be  brought  in
 33    the name of the state of Idaho, in the district court in and for the county in
 34    which the cause of action or some part thereof arose, or in which the telecom-
 35    munications  carrier  complained  of, if any, has its principal place of busi-
 36    ness, or in which the person, if any,  complained  of,  resides.  Such  action
 37    shall  be  commenced  and prosecuted to final judgment by the attorney for the
 38    commission. In any such action, all penalties incurred up to the time of  com-
 39    mencing the same may be sued for and recovered. In all such action, the proce-
 40    dure  and  rules  of  evidence shall be the same as in ordinary civil actions,
 41    except as otherwise herein provided. All fines and penalties recovered by  the
 42    state  in any such action, together with the costs thereof, shall be paid into
 43    the state treasury to the credit of the general fund. Any such action  may  be
 44    compromised  or  discontinued on application of the commission upon such terms
 45    as the court shall approve and order.
 46        62-1424.  REGULATORY FEES. Telephone corporations shall pay to the commis-
 47    sion a special regulatory fee to be determined by the commission, pursuant  to
 48    procedures  set  forth  in chapter 10, title 61, Idaho Code, in such amount as
 49    may be reasonable and necessary to defray the amount to  be  expended  by  the
 50    commission  for  expenses in supervising and regulating telephone corporations
 51    pursuant to this chapter.
  1        62-1425.  SEVERABILITY. If a court of competent jurisdiction shall adjudge
  2    to be invalid or unconstitutional any clause, sentence, paragraph, section  or
  3    part of this chapter, such judgment or decree shall not affect, impair, inval-
  4    idate  or  nullify the remainder of this chapter, but the effect thereof shall
  5    be confined to the clause, sentence, paragraph, section or part of this  chap-
  6    ter so adjudged to be invalid or unconstitutional.
  7        SECTION  2.  That  Chapter  6,  Title  62, Idaho Code, be, and the same is
  8    hereby repealed.
  9        SECTION 3.  That Section 61-121, Idaho Code, be, and the  same  is  hereby
 10    repealed.
 11        SECTION  4.  That  Section 61-622A, Idaho Code, be, and the same is hereby
 12    repealed.
 13        SECTION 5.  That Section 61-526, Idaho Code, be, and the  same  is  hereby
 14    amended to read as follows:
 15        61-526.  CERTIFICATE OF CONVENIENCE AND NECESSITY. No street railroad cor-
 16    poration,  gas  corporation,  electrical corporation, telephone corporation or
 17    water corporation, shall henceforth begin the construction of a  street  rail-
 18    road,  or of a line, plant, or system or of any extension of such street rail-
 19    road, or line, plant, or system, without having first obtained from  the  com-
 20    mission a certificate that the present or future public convenience and neces-
 21    sity  require  or  will require such construction: provided, that this section
 22    shall not be construed to require such corporation to secure such  certificate
 23    for  an extension within any city or county, within which it shall have there-
 24    tofore lawfully commenced  operation,  or  for  an  extension  into  territory
 25    whether within or without a city or county, contiguous to its street railroad,
 26    or  line,  plant  or system, and not theretofore served by a public utility of
 27    like character, or for an extension within or to territory already  served  by
 28    it  necessary  in  the  ordinary course of its business: and provided further,
 29    that if any public utility in constructing or extending its  lines,  plant  or
 30    system,  shall  interfere  or  be about to interfere with the operation of the
 31    line, plant or system of any other public utility already constructed,  or  if
 32    public  convenience  and  necessity does not require or will require such con-
 33    struction or extension, the commission on  complaint  of  the  public  utility
 34    claiming  to  be injuriously affected, or on the commission's own motion, may,
 35    after hearing, make such order and prescribe such terms and conditions for the
 36    locating or type of the line, plant or system affected as to it may seem  just
 37    and  reasonable: provided, that power companies may, without such certificate,
 38    increase the capacity of their existing generating plants.
 39        SECTION 6.  That Section 62-701, Idaho Code, be, and the  same  is  hereby
 40    amended to read as follows:
 41        62-701.  RIGHT  TO  USE HIGHWAYS. Telephone corporations or cooperative or
 42    mutual nonprofit telephone companies may construct or install telephone  lines
 43    along,  beneath  the  surface of or upon any public road or highway, or along,
 44    beneath the surface of, or across any of  the  waters  or  lands  within  this
 45    state,  and may erect or install poles, posts, piers or abutments for support-
 46    ing the insulators, wires and other necessary fixtures of their lines in  such
 47    manner  and  at  such points as not to incommode the public use of the road or
 48    highway, or interrupt the navigation of the waters.
  1        SECTION 7.  That Section 62-702, Idaho Code, be, and the  same  is  hereby
  2    amended to read as follows:
  3        62-702.  INJURY TO COMPANY'S PROPERTY. Any person who injures or destroys,
  4    through  want of proper care, any necessary or useful fixture of any telegraph
  5    or telephone corporation telecommunications carrier, is liable to the corpora-
  6    tion telecommunications carrier for all damages sustained thereby.
  7        SECTION 8.  That Section 26-2239, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
  9        26-2239.  EXEMPTIONS.  The  provisions  of this chapter shall not apply to
 10    the following:
 11        (1)  Any attorney-at-law duly authorized to practice in this state;
 12        (2)  Any regulated lender as defined in section 28-41-301(37), Idaho Code,
 13    nor any subsidiary, affiliate or agent of  such  a  regulated  lender  to  the
 14    extent  that  the  subsidiary,  affiliate  or agent collects for the regulated
 15    lender;
 16        (3)  Any trust company authorized to do business in this state;
 17        (4)  Any federal, state or local governmental agency or instrumentality;
 18        (5)  Any real estate broker or real estate  salesman  licensed  under  the
 19    laws of and residing within this state when engaged in the regular practice of
 20    a real estate business;
 21        (6)  Any abstract and title companies doing an escrow business;
 22        (7)  Any  mortgage  company  to  the  extent that such mortgage company is
 23    engaged in the regular business of a mortgage company as  defined  in  section
 24    26-2802, Idaho Code;
 25        (8)  Any court appointed trustee, receiver or conservator;
 26        (9)  Any  telephone  corporation telecommunications carrier, as defined in
 27    subsection (109) of section 62-6031403, Idaho Code, whose initial request  for
 28    payment  on behalf of such telephone corporation telecommunications carrier or
 29    on behalf of another person is made by the telephone corporation  telecommuni-
 30    cations  carrier  as a part of regular telecommunications billings to its cus-
 31    tomers and at a time before the account, bill,  claim  or  other  indebtedness
 32    becomes past due or delinquent;
 33        (10) A person while acting as a debt collector for another person, both of
 34    whom  are  related  by common ownership or affiliated by corporate control, if
 35    the person acting as a debt collector does so only for persons to whom  he  is
 36    so  related  or affiliated and if the principal business of such person is not
 37    the collection of debts.
 38        SECTION 9.  That Section 48-1009, Idaho Code, be, and the same  is  hereby
 39    amended to read as follows:
 41    PUBLIC UTILITIES COMMISSION. (1) Telephone corporations providing basic  local
 42    exchange  service,  as  defined  in  section 62-6031403(20), Idaho Code, shall
 43    inform customers of the provisions of this chapter. Publication of such  noti-
 44    fication  in an annual insert in a billing statement mailed to customers or by
 45    conspicuous publication in the consumer information pages of  local  telephone
 46    directories  shall  relieve  telephone  corporations  of any and all liability
 47    under this chapter to purchasers or others claiming to have suffered harm from
 48    telephone solicitors or by operation of the provisions of this chapter.
 49        (2)  The public utilities commission shall by rule prescribe the  form  of
 50    such notice.
  1        SECTION  10.  That Section 61-1302, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
  3        61-1302.  DEFINITIONS. In this chapter:
  4        (1)  "Administrator" means the person with whom the Idaho public utilities
  5    commission contracts to administer the program for delivery of  telecommunica-
  6    tions relay services.
  7        (2)  "Commission" means the Idaho public utilities commission.
  8        (3)  "Communications  impaired" means individuals who are hearing-impaired
  9    or speech-impaired as defined in title IV, section 401,  Americans  with  dis-
 10    abilities  act  of  1990, public law 101-336, 104 stat. 327, 336-69 (47 U.S.C.
 11    section 225) or regulations promulgated pursuant thereto.
 12        (4)  "Local exchange company" means a telephone corporation which provides
 13    access lines to residential and business customers with the associated  trans-
 14    mission  of two (2) way interactive switched voice communication within a geo-
 15    graphic area where basic local exchange rates rather than message telecommuni-
 16    cations service rates apply.
 17        (5)  "Message telecommunications service"  shall  have  the  meaning  pre-
 18    scribed in section 62-603(6)1403(8), Idaho Code.
 19        (6)  "Program"  means the effort directed by the administrator pursuant to
 20    this chapter to establish and operate an Idaho system to provide  telecommuni-
 21    cations relay services.
 22        (7)  "Telephone  corporation" shall have the meaning prescribed in section
 23    62-603(10)1403(20), Idaho Code.
 24        (8)  "Telecommunications relay  services  (TRS)"  means  services  through
 25    which  a  communications impaired person, using specialized telecommunications
 26    equipment, may send and receive  messages  to  and  from  a  noncommunications
 27    impaired  person whose telephone is not equipped with specialized telecommuni-
 28    cations equipment and through which a noncommunications impaired  person  may,
 29    by using voice communication, send and receive messages to and from a communi-
 30    cations impaired person.
 31        SECTION  11.  That Section 61-1305, Idaho Code, be, and the same is hereby
 32    amended to read as follows:
 33        61-1305.  PARTICIPATION IN PROGRAM. (1) All telephone corporations provid-
 34    ing basic local exchange service within the state of Idaho and  all  telephone
 35    corporations  providing  intrastate  message telecommunications service within
 36    the state of Idaho, including those otherwise exempt from the jurisdiction  of
 37    the  commission  pursuant  to  section 61-104, Idaho Code, and those providing
 38    local exchange services or message telecommunications services pursuant to the
 39    telecommunications act of 19882006, chapter 614, title 62, Idaho  Code,  shall
 40    except  as  provided  in subsection (2) of this section, provide TRS in accor-
 41    dance with the program established by the commission, and shall pay  into  the
 42    telecommunications  relay  services  fund such sums as may represent the tele-
 43    phone corporation's share of the cost of the program, based upon an allocation
 44    methodology duly adopted by the commission in accordance with  its  rulemaking
 45    procedures.
 46        (2)  The  commission shall permit a telephone corporation to provide tele-
 47    communications relay services to its customers by a TRS  provider  other  than
 48    the  provider  approved  by  the  commission  and  shall  waive  the telephone
 49    corporation's obligation to participate  in  the  program  if  the  commission
 50    finds,  upon  application by a telephone corporation, that the following facts
 51    exist:
 52        (a)  The telephone corporation will continue to meet its obligation to its
  1        Idaho customers in accordance with the standards set forth in  the  Ameri-
  2        cans with disabilities act; and
  3        (b)  The  nonparticipation of such telephone corporation will not substan-
  4        tially impair the operation or provision of TRS pursuant  to  the  program
  5        adopted by the commission.
  6        (3)  Each  telephone  corporation  subject  in  whole  or  in  part to the
  7    commission's ratemaking authority may apply to the commission for authority to
  8    increase its rates and charges in an amount not to exceed its payments to  the
  9    telecommunications  relay  services fund pursuant to this chapter or the costs
 10    it incurs in providing TRS through an alternative TRS provider  as  authorized
 11    by  the  commission pursuant to subsection (2) of this section. Such  applica-
 12    tions shall plainly state the amount of the proposed increase, its  manner  of
 13    calculation,  and  the  proposed recovery method, but shall not require a full
 14    cost-of-service filing or  general  ratemaking  presentation.  The  commission
 15    shall promptly consider and act upon such applications.
 16        SECTION  12.  That  Section 63-201, Idaho Code, be, and the same is hereby
 17    amended to read as follows:
 18        63-201.  DEFINITIONS. As used for property tax purposes in title 63, chap-
 19    ters 1 through 23, Idaho Code, the terms defined in this  section  shall  have
 20    the following meanings, unless the context clearly indicates another meaning:
 21        (1)  "Appraisal" means an estimate of property value for property tax pur-
 22    poses.
 23        (a)  For the purpose of estimated property value to place the value on any
 24        assessment  roll,  the  value estimation must be made by the assessor or a
 25        certified property tax appraiser.
 26        (b)  For the purpose of estimating property value to present for an appeal
 27        filed pursuant to sections 63-501A, 63-407 and  63-409,  Idaho  Code,  the
 28        value  estimation  may  be  made by the assessor, a certified property tax
 29        appraiser, a licensed appraiser, or a certified appraiser or any party  as
 30        specified by law.
 31        (2)  "Bargeline"  means  those  water  transportation tugs, boats, barges,
 32    lighters and other equipment and property used in conjunction  with  waterways
 33    for bulk transportation of freight or ship assist.
 34        (3)  "Cogenerators"  means  facilities  which produce electric energy, and
 35    steam or forms of useful energy which are  used  for  industrial,  commercial,
 36    heating or cooling purposes.
 37        (4)  "Collection  costs"  are  amounts authorized by law to be added after
 38    the date of delinquency and collected in the same manner as property tax.
 39        (5)  "Delinquency" means any property tax, special assessment,  fee,  col-
 40    lection cost, or charge collected in the same manner as property tax, that has
 41    not been paid in the manner and within the time limits provided by law.
 42        (6)  "Improvements"  means  all buildings, structures, fixtures and fences
 43    erected upon or affixed to the land, and all fruit, nut-bearing and ornamental
 44    trees or vines not of natural growth, growing upon the  land,  except  nursery
 45    stock.
 46        (7)  "Late charge" means a charge of two percent (2%) of the delinquency.
 47        (8)  "Lawful  money  of  the United States" means currency and coin of the
 48    United States at par value and checks and drafts which are payable in  dollars
 49    of the United States at par value, payable upon demand or presentment.
 50        (9)  "Manufactured  home" means a structure defined as a manufactured home
 51    in section 39-4105, Idaho Code.
 52        (10) "Market value" means the amount of United States dollars  or  equiva-
 53    lent  for which, in all probability, a property would exchange hands between a
  1    willing seller, under no compulsion to sell, and an informed,  capable  buyer,
  2    with a reasonable time allowed to consummate the sale, substantiated by a rea-
  3    sonable down or full cash payment.
  4        (11) "Operating  property"  means  all rights-of-way accompanied by title;
  5    roadbeds; tracks;  pipelines;  bargelines;  equipment  and  docks;  terminals;
  6    rolling stock; equipment; power stations; power sites; lands; reservoirs, gen-
  7    erating  plants,  transmission  lines, distribution lines and substations; and
  8    all immovable or movable property operated in connection with any public util-
  9    ity, railroad or private railcar fleet, wholly or partly  within  this  state,
 10    and  necessary  to  the  maintenance and operation of such road or line, or in
 11    conducting its business, and shall include all  title  and  interest  in  such
 12    property,  as  owner,  lessee or otherwise. The term does not include personal
 13    property exempt from taxation pursuant to section 63-602L, Idaho Code.
 14        (12) "Party in interest" means a person  who  holds  a  properly  recorded
 15    mortgage, deed of trust or security interest.
 16        (13) "Person"  means  any  entity,  individual,  corporation, partnership,
 17    firm, association, limited liability company, limited liability partnership or
 18    other such entities as recognized by the state of Idaho.
 19        (14) "Personal property" includes all goods, chattels, stocks  and  bonds,
 20    equities  in  state  lands, easements, reservations, leasehold real properties
 21    and all other property which the law defines, or  the  courts  may  interpret,
 22    declare  and hold to be personal property under the letter, spirit, intent and
 23    meaning of the law, for the purposes of property taxation. For the purposes of
 24    payment and collection of property taxes pursuant  to  chapter  9,  title  63,
 25    Idaho  Code, collection of delinquency pursuant to chapter 10, title 63, Idaho
 26    Code, and seizure and sale of personal property for taxes pursuant to  chapter
 27    11,  title  63,  Idaho Code, personal property includes manufactured homes not
 28    declared as real property pursuant to section 63-304, Idaho Code.
 29        (15) "Private railcar fleet" means railroad cars or locomotives owned  by,
 30    leased  to, occupied by or franchised to any person other than a railroad com-
 31    pany operating a line of railroad in Idaho or  any  company  classified  as  a
 32    railroad  by  the  interstate commerce commission and entitled to possess such
 33    railroad cars and locomotives except those possessed solely for the purpose of
 34    repair, rehabilitation or remanufacturing  of  such  locomotives  or  railroad
 35    cars.
 36        (16) "Public utility" means electrical companies, pipeline companies, nat-
 37    ural  gas  distribution  companies, or power producers included within federal
 38    law, bargelines, and water companies which are under the jurisdiction  of  the
 39    Idaho  public  utilities commission. The term also includes telephone corpora-
 40    tions  telecommunications  carriers,  as  that  term  is  defined  in  section
 41    62-6031403(19), Idaho Code, except as hereinafter  provided,  whether  or  not
 42    such  telephone  corporation  has been issued a certificate of convenience and
 43    necessity by the Idaho public utilities commission.
 44        This term does  not  include  cogenerators,  cable  television  companies,
 45    mobile  telephone  service  or companies, nor does it include pager service or
 46    companies, except when such services are an integral part of services provided
 47    by a certificated utility company nor does the term "public  utility"  include
 48    companies  or  persons engaged in the business of providing solely on a resale
 49    basis, any telephone or telecommunication service which is  purchased  from  a
 50    telephone corporation or company.
 51        (17) "Railroad"  means every kind of railway, whether its line of rails or
 52    tracks be at, above or below the surface of the earth, and without  regard  to
 53    the kind of power used in moving its rolling stock, and shall be considered to
 54    include  every  kind of street railway, suburban railway or interurban railway
 55    excepting facilities established solely  for  maintenance  and  rebuilding  of
  1    railroad cars or locomotives.
  2        (18) "Real  property" means land, and all standing timber thereon, includ-
  3    ing standing timber owned separately from the  ownership  of   the  land  upon
  4    which  the  same  may stand, except as modified in chapter 17, title 63, Idaho
  5    Code, and all buildings, structures and improvements,  or  other  fixtures  of
  6    whatsoever kind on land, including water ditches constructed for mining, manu-
  7    facturing or irrigation purposes, water and gas mains, wagon and turnpike toll
  8    roads,  and  toll bridges, and all rights and privileges thereto belonging, or
  9    any way appertaining,  all quarries and fossils in and under the land, and all
 10    other property which the law defines, or the courts may interpret, declare and
 11    hold to be real property under the letter, spirit, intent and meaning  of  the
 12    law, for the purposes of property taxation. Manufactured homes constitute real
 13    property  when  located  on  taxable  land, and after a statement of intent to
 14    declare as real property has been recorded, provided said  statement  has  not
 15    been  revoked.  Timber,  forest,  forest  land,  and  forest products shall be
 16    defined as provided in chapter 17, title 63, Idaho Code.
 17        (19) "Record owner" means the person or persons in whose name or names the
 18    property stands upon the records of the county recorder's  office.  Where  the
 19    record  owners  are husband and wife at the time of notice of pending issue of
 20    tax deed, notice to one (1) shall be deemed and imputed as notice to the other
 21    spouse.
 22        (20) "Special assessment" means a charge imposed upon property for a  spe-
 23    cific purpose, collected and enforced in the same manner as property taxes.
 24        (21) "System  value" means the market value for assessment purposes of the
 25    operating property when considered as a unit.
 26        (22) "Tax code area" means a geographical area made up of one (1) or  more
 27    taxing districts with one (1) total levy within the geographic area, except as
 28    otherwise provided by law.
 29        (23) "Taxing district" means any entity or unit with the statutory author-
 30    ity to levy a property tax.
 31        (24) "Taxable  value"  means  market  value  for assessment purposes, less
 32    applicable exemptions or other statutory provisions.
 33        (25) "Transient personal property" is personal property, specifically such
 34    construction, logging or mining machinery and equipment  which is kept, moved,
 35    transported, shipped, hauled into or remaining for periods of  not  less  than
 36    thirty  (30)  days,  in  more than one (1) county in the state during the same
 37    year.
 38        (26) "Warrant of distraint" means a warrant ordering the seizure  of  per-
 39    sonal  property  to  enforce  payment  of  property  tax,  special assessment,
 40    expense, fee, collection cost or charge collected in the same manner  as  per-
 41    sonal property tax.
 42        SECTION  13.  That Section 63-3027, Idaho Code, be, and the same is hereby
 43    amended to read as follows:
 45    TIONS. The Idaho taxable income  of  any  multistate  or  unitary  corporation
 46    transacting  business  both within and without this state shall be computed in
 47    accordance with the rules set forth in this section:
 48        (a)  As used in this section, unless the context otherwise requires:
 49        (1)  "Business income" means income arising from transactions and activity
 50        in the regular course of the taxpayer's trade  or  business  and  includes
 51        income  from  the  acquisition, management, or disposition of tangible and
 52        intangible property when such acquisition, management, or disposition con-
 53        stitutes integral or necessary parts of the taxpayer's trade  or  business
  1        operations.  Gains  or  losses and dividend and interest income from stock
  2        and securities of any foreign or domestic corporation shall be presumed to
  3        be income from intangible property, the acquisition, management, or dispo-
  4        sition of which constitutes an integral part of the  taxpayer's  trade  or
  5        business;  such  presumption  may only be overcome by clear and convincing
  6        evidence to the contrary.
  7        (2)  "Commercial domicile" means the principal place from which the  trade
  8        or business of the taxpayer is directed or managed.
  9        (3)  "Compensation"  means wages, salaries, commissions and any other form
 10        of remuneration paid to employees for personal services.
 11        (4)  "Nonbusiness income" means all income other than business income.
 12        (5)  "Sales" means all gross receipts of the taxpayer not allocated  under
 13        subsections (d) through (h) of this section.
 14        (6)  "State"  means any state of the United States, the District of Colum-
 15        bia, the Commonwealth of Puerto Rico, any territory or possession  of  the
 16        United States, and any foreign country or political subdivision thereof.
 17        (b)  Any  taxpayer  having  income from business activity which is taxable
 18    both within and without this state  shall  allocate  and  apportion  such  net
 19    income as provided in this section.
 20        (c)  For  purposes  of  allocation  and apportionment of income under this
 21    section, a taxpayer is taxable in another state if:
 22        (1)  In that state he is subject to a net income tax, a franchise tax mea-
 23        sured by net income, a franchise tax for the privilege of doing  business,
 24        or a corporate stock tax; or
 25        (2)  That  state  has jurisdiction to subject the taxpayer to a net income
 26        tax regardless of whether, in fact, the state does or does not.
 27        (d)  Rents and royalties from real or tangible personal property,  capital
 28    gains  interest,  dividends,  or  patent or copyright royalties, to the extent
 29    that they constitute nonbusiness income, shall be  allocated  as  provided  in
 30    subsections  (e)  through  (h)  of  this section. Allocable nonbusiness income
 31    shall be limited to the total nonbusiness income received which is  in  excess
 32    of any related expenses which have been allowed as a deduction during the tax-
 33    able year. In the case of allocable nonbusiness interest or dividends, related
 34    expenses include interest on indebtedness incurred or continued to purchase or
 35    carry assets on which the interest or dividends are nonbusiness income.
 36        (e)  (1) Net  rents and royalties from real property located in this state
 37        are allocable to this state.
 38        (2)  Net rents and royalties from tangible personal property are allocable
 39        to this state:
 40             (i)   iIf and to the extent that the property  is  utilized  in  this
 41             state,; or
 42             (ii)  iIn  their entirety if the taxpayer's commercial domicile is in
 43             this state and the taxpayer is not organized under  the  laws  of  or
 44             taxable in the state in which the property is utilized.
 45        (3)  The extent of utilization of tangible personal property in a state is
 46        determined  by  multiplying  the  rents  and  royalties by a fraction, the
 47        numerator of which is the number of days of physical location of the prop-
 48        erty in the state during the rental or royalty period in the taxable  year
 49        and the denominator of which is the number of days of physical location of
 50        the  property  everywhere during all rental or royalty periods in the tax-
 51        able year. If the physical location of the property during the  rental  or
 52        royalty  period  is  unknown  or unascertainable by the taxpayer, tangible
 53        personal property is utilized in the  state  in  which  the  property  was
 54        located at the time the rental or royalty payer obtained possession.
 55        (f)  (1) Capital  gains  and losses from sales of real property located in
  1        this state are allocable to this state.
  2        (2)  Capital gains and losses from sales of tangible personal property are
  3        allocable to this state if:
  4             (i)  tThe property had a situs in this  state  at  the  time  of  the
  5             sale,; or
  6             (ii) tThe  taxpayer's  commercial  domicile  is in this state and the
  7             taxpayer is not taxable in the state in  which  the  property  had  a
  8             situs.
  9        (3)  Capital  gains  and losses from sales of intangible personal property
 10        are allocable to this state if the taxpayer's commercial  domicile  is  in
 11        this  state,  unless  such  gains and losses constitute business income as
 12        defined in this section.
 13        (g)  Interest and dividends are allocable to this state if the  taxpayer's
 14    commercial domicile is in this state unless such interest or dividends consti-
 15    tute business income as defined in this section.
 16        (h)  (1) Patent and copyright royalties are allocable to this state:
 17             (i)   iIf  and to the extent that the patent or copyright is utilized
 18             by the payer in this state,; or
 19             (ii)  iIf and to the extent that the patent or copyright is  utilized
 20             by  the payer in a state in which the taxpayer is not taxable and the
 21             taxpayer's commercial domicile is in this state.
 22        (2)  A patent is utilized in a state to the extent that it is employed  in
 23        production,  fabrication,  manufacturing, or other processing in the state
 24        or to the extent that a patent product is produced in the  state.  If  the
 25        basis  of  receipts  from  patent  royalties does not permit allocation to
 26        states or if the accounting procedures do not reflect states  of  utiliza-
 27        tion,  the patent is utilized in the state in which the taxpayer's commer-
 28        cial domicile is located.
 29        (3)  A copyright is utilized in a state to the  extent  that  printing  or
 30        other  publication  originates in the state. If the basis of receipts from
 31        copyright royalties does  not  permit  allocation  to  states  or  if  the
 32        accounting  procedures do not reflect states of utilization, the copyright
 33        is utilized in the state in which the taxpayer's  commercial  domicile  is
 34        located.
 35        (i)  (1) Notwithstanding  the  election  allowed  in Aarticle III.1 of the
 36        multistate tax compact enacted as section 63-3701, Idaho Code,  all  busi-
 37        ness  income  shall  be  apportioned to this state under subsection (j) of
 38        this section by multiplying the income by a  fraction,  the  numerator  of
 39        which  is  the  property factor plus the payroll factor plus two (2) times
 40        the sales factor, and the denominator of which is four (4), except as pro-
 41        vided in paragraph (2) of this subsection.
 42        (2)  If a corporation, or a parent corporation of a combined group  filing
 43        a  combined  report  under sections 63-3027 and 63-3701, Idaho Code, is an
 44        electrical corporation as defined in section 61-119, Idaho Code, or  is  a
 45        telephone  corporation  telecommunications  carrier  as defined in section
 46        62-6031403(19), Idaho Code, all business income of the  corporation  tele-
 47        communications  carrier  shall be apportioned to this state by multiplying
 48        the income by a fraction, the numerator of which is  the  property  factor
 49        plus  the  payroll  factor  plus  the sales factor, and the denominator of
 50        which is three (3).
 51        (j)  (1) In the case of a corporation or group  of  corporations  combined
 52        under  subsection (t) of this section, Idaho taxable income or loss of the
 53        corporation or combined group shall be determined as follows:
 54             (i)   fFrom the income or loss of the corporation or  combined  group
 55             of  corporations,  subtract  any  nonbusiness  income,  and  add  any
  1             nonbusiness loss, included in the total,;
  2             (ii)  mMultiply the amounts determined under paragraph (1)(i) of this
  3             subsection  by  the Idaho apportionment percentage defined in subsec-
  4             tion (i) of this section, taking into account, where applicable,  the
  5             property,  payroll  and  sales of all corporations, wherever incorpo-
  6             rated, which are included in the combined group. The resulting  prod-
  7             uct  shall  be  the  amount of business income or loss apportioned to
  8             Idaho.
  9        (2)  To the amount determined as apportioned business income or loss under
 10        paragraph (1)(ii) of this subsection,  add  nonbusiness  income  allocable
 11        entirely  to  Idaho  under  the  provisions  of  this  section or subtract
 12        nonbusiness loss allocable entirely  to  Idaho  under  this  section.  The
 13        resulting sum is the Idaho taxable income or loss of the corporation.
 14        (3)  In  the  case  of a corporation not subject to subsection (t) of this
 15        section, the income or loss referred to in paragraph (1)(i) of  this  sub-
 16        section,  shall  be  the  taxable  income  of the corporation after making
 17        appropriate adjustments under the provisions  of  section  63-3022,  Idaho
 18        Code.
 19        (k)  The  property  factor  is  a  fraction, the numerator of which is the
 20    average value of the taxpayer's real and tangible personal property  owned  or
 21    rented  and  used  in  this state during the tax period and the denominator of
 22    which is the average value of all the taxpayer's real  and  tangible  personal
 23    property owned or rented and used during the tax period.
 24        (l)  Property  owned by the taxpayer is valued at its original cost. Prop-
 25    erty rented by the taxpayer is valued at eight (8) times the net annual rental
 26    rate. Net annual rental rate is the annual rental rate paid  by  the  taxpayer
 27    less any annual rental rate received by the taxpayer from subrentals.
 28        (m)  The  average  value  of property shall be determined by averaging the
 29    values at the beginning and ending of the tax period, but the state  tax  com-
 30    mission  may  require the averaging of monthly values during the tax period if
 31    reasonably required to reflect properly the average value  of  the  taxpayer's
 32    property.
 33        (n)  The payroll factor is a fraction, the numerator of which is the total
 34    amount  paid in this state during the tax period by the taxpayer for compensa-
 35    tion, and the denominator of which is the total compensation  paid  everywhere
 36    during the tax period.
 37        (o)  Compensation is paid in this state if:
 38        (1)  The individual's service is performed entirely within the state; or
 39        (2)  The  individual's  service  is  performed both within and without the
 40        state, but the service performed without the state is  incidental  to  the
 41        individual's service within the state; or
 42        (3)  Some of the service is performed in the state and:
 43             (i)   tThe  base of operations or, if there is no base of operations,
 44             the place from which the service is directed or controlled is in  the
 45             state,; or
 46             (ii)  tThe  base of operations or the place from which the service is
 47             directed or controlled is not in any state in which some part of  the
 48             service  is  performed,  but  the  individual's  residence is in this
 49             state.
 50        (p)  The sales factor is a fraction, the numerator of which is  the  total
 51    sales of the taxpayer in this state during the tax period, and the denominator
 52    of which is the total sales of the taxpayer everywhere during the tax period.
 53        (q)  Sales of tangible personal property are in this state if:
 54        (1)  The  property  is delivered or shipped to a purchaser, other than the
 55        United States government, within this state regardless of the f.o.b. point
  1        or other conditions of the sale,; or
  2        (2)  The property is shipped from an office, store, warehouse, factory, or
  3        other place of storage in this state and:
  4             (i)   tThe purchaser is the United States government; or
  5             (ii)  tThe taxpayer is not taxable in the state of the purchaser.
  6        (r)  Sales, other than sales of tangible property, are in this state, if:
  7        (1)  The income-producing activity is performed in this state; or
  8        (2)  The income-producing activity is performed both in and  outside  this
  9        state  and  a  greater proportion of the income-producing activity is per-
 10        formed in this state than in any other state, based on  costs  of  perfor-
 11        mance.
 12        (s)  If the allocation and apportionment provisions of this section do not
 13    fairly represent the extent of the taxpayer's business activity in this state,
 14    the  taxpayer  may  petition  for  or the state tax commission may require, in
 15    respect to all or any part of the taxpayer's business activity, if reasonable:
 16        (1)  Separate accounting, provided  that  only  that  portion  of  general
 17        expenses  clearly  identifiable  with  Idaho  business operations shall be
 18        allowed as a deduction;
 19        (2)  The exclusion of any one (1) or more of the factors;
 20        (3)  The inclusion of one (1) or more additional factors which will fairly
 21        represent the taxpayer's business activity in this state; or
 22        (4)  The employment of any other method to effectuate an equitable alloca-
 23        tion and apportionment of the taxpayer's income.
 24        (t)  For purposes of this section and sections 63-3027B through  63-3027E,
 25    Idaho Code, the income of two (2) or more corporations, wherever incorporated,
 26    the  voting  stock of which is more than fifty percent (50%) owned directly or
 27    indirectly by a common owner or owners, when necessary to  accurately  reflect
 28    income, shall be allocated or apportioned as if the group of corporations were
 29    a single corporation, in which event:
 30        (1)  The  Idaho  taxable  income of any corporation subject to taxation in
 31        this state shall be determined by use of a combined report which  includes
 32        the  income,  determined under subparagraph (2) of this subsection, of all
 33        corporations which are members of a unitary business, allocated and appor-
 34        tioned using apportionment factors for all corporations  included  in  the
 35        combined report and methods set out in this section. The use of a combined
 36        report does not disregard the separate corporate identities of the members
 37        of  the  unitary  group. Each corporation which is transacting business in
 38        this state is responsible for its apportioned share of the combined  busi-
 39        ness  income plus its nonbusiness income or loss allocated to Idaho, minus
 40        its net operating loss carryover or carryback.
 41        (2)  The income of a corporation to be included in a combined report shall
 42        be determined as follows:
 43             (i)   fFor  a  corporation  incorporated  in  the  United  States  or
 44             included in a consolidated federal corporation income tax return, the
 45             income to be included in the combined report  shall  be  the  taxable
 46             income for the corporation after making appropriate adjustments under
 47             the provisions of section 63-3022, Idaho Code;
 48             (ii)  fFor  a corporation incorporated outside the United States, but
 49             not included in subsection (t)(2)(i) of this section, the  income  to
 50             be  included  in  the  combined report shall be the net income before
 51             income taxes of such corporation stated on the profit and loss state-
 52             ments of such corporation which are included within the  consolidated
 53             profit  and loss statement prepared for the group of related corpora-
 54             tions of which the corporation is a member, which statement  is  pre-
 55             pared  for filing with the United States securities and exchange com-
  1             mission. If the group of related companies is not  required  to  file
  2             such  profit and loss statement with the United States securities and
  3             exchange commission, the  profit  and  loss  statement  prepared  for
  4             reporting  to  shareholders  and subject to review  by an independent
  5             auditor may be used to obtain net income before income taxes. In  the
  6             alternative,  and subject to reasonable substantiation and consistent
  7             application by the group of related  companies,  adjustments  may  be
  8             made  to  the  profit and loss statements of the corporation incorpo-
  9             rated outside the United States, if necessary, to conform such state-
 10             ments to tax accounting standards as required by the Internal Revenue
 11             Code as if such corporation were incorporated in  the  United  States
 12             and  required  to file a federal income tax return, subject to appro-
 13             priate adjustments under the provisions  of  section  63-3022,  Idaho
 14             Code; and
 15             (iii) iIf the income computation for a group under paragraphs (i) and
 16             (ii)  of  this subsection results in a loss, such loss shall be taken
 17             into account in other years, subject to the provisions of subsections
 18             (b) and (c) of section 63-3022, Idaho Code.
 19        (u)  If compensation is paid in the form of a reasonable cash fee for  the
 20    performance  of  management services directly for the United States government
 21    at the Idaho national engineering laboratory,  separate  accounting  for  that
 22    part of the business activity without regard to other activity of the taxpayer
 23    in  the state of Idaho or elsewhere shall be required; provided that only that
 24    portion of general expenses clearly identifiable with  Idaho  business  opera-
 25    tions of that activity shall be allowed as a deduction.

Statement of Purpose / Fiscal Impact

                     STATEMENT OF PURPOSE

                           RS 16142

  This legislation would update and recodify Idaho
  telecommunications law.  Much of the law that still governs
  telephone services was enacted originally in 1913.  It has been
  updated through piecemeal legislation several times since then,
  with significant revisions in 1988 and 2005.  Not only do the
  statutes not fit together very well (which leads to significant
  difficulty and confusion in discerning what the law actually
  means in many cases) but they have not kept pace with the rapid
  technological changes we have experienced.  This legislation is
  meant to "catch the law up" with the telecommunications

                         FISCAL NOTE

  This legislation will have no impact on the general fund.  It
  will change the mechanism through which the Universal Service
  Fund is funded and will change the criteria for obtaining
  support from that fund.  
  Name:     Ken McClure
  Phone:    388-1200
  STATEMENT OF PURPOSE/FISCAL NOTE                             H 741