Text: HSB49            Text: HSB51


House Study Bill 50

HOUSE FILE BY (PROPOSED COMMITTEE ON COMMERCE, REGULATION AND LABOR BILL BY CHAIRPERSON JENKINS) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the deregulation of communications services 2 including determining comparable services, considering market 3 forces, providing for expedited deregulation proceedings, 4 eliminating accounting plan requirements, eliminating 5 reporting requirements to the general assembly, and providing 6 effective and retroactive applicability dates. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 1748HC 81 9 kk/sh/8 PAG LIN 1 1 Section 1. Section 476.1D, subsections 1, 2, and 3, Code 1 2 2005, are amended to read as follows: 1 3 1. Except as provided in this section, the jurisdiction of 1 4 the board as to the regulation of communications services is 1 5 not applicable to a service or facility that is provided or is 1 6 proposed to be provided by a telephone utility that is or 1 7 becomes subject to effective competition, as determined by the 1 8 board. 1 9 a. In determining whether a service or facility is or 1 10 becomes subject to effective competition, the board shall 1 11 consider, among other factors, whether a comparable service or 1 12 facility is or may reasonably be expected to become available 1 13 from a supplier other than the telephone utility in the 1 14 geographic market being considered by the board and whether 1 15 market forces in that market are sufficient to assure just and 1 16 reasonable rates without regulation. 1 17 b. The board shall consider all of the following services 1 18 as comparable services or facilities to wireline 1 19 communications services: 1 20 (1) Wireless communications services. 1 21 (2) Cable telephony services. 1 22 (3) Voice over internet protocol services. 1 23 c. When considering market forces in the market proposed 1 24 to be deregulated, the board shall consider factors including 1 25 but not limited to the presence or absence of all of the 1 26 following: 1 27 (1) Wireless communications services. 1 28 (2) Cable telephony services. 1 29 (3) Voice over internet protocol services. 1 30 (4) Economic barriers to the entry of competitors or 1 31 potential competitors in that market. 1 32 d. If one or more telephone utilities providing wireline 1 33 or cable telephony services, other than an incumbent telephone 1 34 utility, offers services using the utility's own switching or 1 35 loop facilities in at least two=thirds of a given geographic 2 1 market served by an incumbent telephone utility, a rebuttable 2 2 presumption is established that effective competition exists 2 3 for that geographic market and the incumbent utility may file 2 4 a request for expedited deregulation proceedings for the 2 5 geographic markets affected. The request for expedited 2 6 deregulation shall describe the geographic markets alleged to 2 7 be affected. Within thirty days after the request is filed 2 8 and after opportunity for a hearing, the board shall issue an 2 9 order granting or denying the request. 2 10 e. In addition to other services or facilities previously 2 11 deregulated, effective March 1, 2005, the jurisdiction of the 2 12 board is not applicable to the regulation of any of the 2 13 following services: 2 14 (1) Business local exchange services provided throughout 2 15 the state. 2 16 (2) Residential additional line services provided 2 17 throughout the state. 2 18 (3) Except as regulation may be reimposed pursuant to 2 19 subsection 6, residential local exchange services provided in 2 20 the cities of Ames, Ankeny, Burlington, Cedar Falls, Cedar 2 21 Rapids, Clinton, Council Bluffs, Davenport, Des Moines, 2 22 Dubuque, Fort Dodge, Iowa City, Marshalltown, Mason City, 2 23 Muscatine, Ottumwa, Sioux City, and Waterloo, as those cities 2 24 are reflected in territory maps of the incumbent 2 25 telecommunications provider for the applicable exchange. 2 26 2. Deregulation Except as provided in subsection 1, 2 27 paragraph "e", deregulation of a service or facility for a 2 28 utility is effective only after all of the following: 2 29 a. A finding of effective competition by the board. 2 30 b. Election by a utility providing the service or facility 2 31 to file a deregulation accounting plan but only if the utility 2 32 providing the service or facility is subject to rate=of=return 2 33 regulation at the time deregulation becomes effective. A 2 34 deregulation accounting plan shall not be required for a 2 35 utility operating under a price plan for the service or 3 1 facility proposed to be deregulated. 3 2 c. Approval of a utility's deregulation accounting plan by 3 3 the board, if a plan is required. 3 4 3. If the board determines a service or facility is 3 5 subject to effective competition and approves the utility's 3 6 deregulation accounting plan, if a plan is required, the board 3 7 shall deregulate the service or facility within a reasonable 3 8 time. 3 9 Sec. 2. Section 476.98, Code 2005, is repealed. 3 10 Sec. 3. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 3 11 This Act, being deemed of immediate importance, takes effect 3 12 upon enactment and is retroactively applicable to March 1, 3 13 2005. 3 14 EXPLANATION 3 15 This bill relates to the deregulation of communications 3 16 services by the utilities board of the utilities division of 3 17 the department of commerce. 3 18 Under current law, before deregulating communications 3 19 services, the board must determine whether the communications 3 20 service or facility provided is subject to effective 3 21 competition by considering whether a comparable service is 3 22 being provided by another supplier in the same geographic 3 23 market and whether market forces in that market are sufficient 3 24 to assure just and reasonable rates without regulation. The 3 25 bill requires the board to consider whether a comparable 3 26 service may reasonably be expected to become available from 3 27 another supplier rather than only whether the service is 3 28 actually available from another supplier. The bill also 3 29 directs the board to consider wireless communications 3 30 services, cable telephony services, and voice over internet 3 31 protocol services to be services or facilities comparable to 3 32 wireline communications services. The bill directs the board 3 33 to consider, when considering market forces in a market 3 34 proposed to be deregulated, the presence or absence of 3 35 wireless communications services, cable telephony services, 4 1 voice over internet protocol services, and economic barriers 4 2 to the entry of competitors or potential competitors in that 4 3 market. The bill creates a rebuttable presumption of 4 4 effective competition where a wireline or cable telephony 4 5 provider other than an incumbent provider offers service using 4 6 its own switching or loop facilities in two=thirds of a 4 7 geographic market of an incumbent telephone utility. Where 4 8 such a rebuttable presumption exists, the incumbent telephone 4 9 utility can request an expedited deregulation proceeding 4 10 before the board. 4 11 The bill provides that effective March 1, 2005, all 4 12 business local exchange services, residential additional line 4 13 services, and residential local exchange services provided in 4 14 certain exchanges shall no longer be regulated by the board. 4 15 The bill provides that a deregulation accounting plan shall 4 16 be filed only if the utility is subject to rate=of=return 4 17 regulation. A deregulation accounting plan is not required 4 18 for a utility operating under a price plan for the service or 4 19 facility proposing to be deregulated. 4 20 The bill repeals Code section 476.98 requiring the consumer 4 21 advocate to calculate an estimate of the return of a local 4 22 exchange carrier operating under price regulation as if the 4 23 carrier were subject to rate=of=return regulation, and to 4 24 provide a report to the general assembly regarding the results 4 25 of the calculation and a recommendation as to requiring a 4 26 different form of rate regulation. 4 27 The bill takes effect upon enactment and is retroactively 4 28 applicable to March 1, 2005. 4 29 LSB 1748HC 81 4 30 kk:nh/sh/8
Text: HSB49            Text: HSB51