SB 128

This bill makes the following changes to the regulation of telecommunications

utilities (TUs) and alternative telecommunications utilities (ATUs):

Customer contracts.

Under current law, the Public Service Commission

(PSC) may approve the filing of a tariff by a TU that allows the TU to enter into an

individual contract with a customer only if substitute telecommunications services

are available to the TU's customers and, if the tariff is not approved, the TU will be

disadvantaged in competing for business. To qualify for approval, a tariff must

include a condition that the contract is compensatory, and must include any other

conditions or procedures that the PSC determines are in the public interest. In

addition, current law includes requirements for a TU for which a tariff is approved

to notify the PSC about the execution and amendment of contracts allowed under the

tariff. Current law also allows the PSC to adjust the TU's rates or tariff if the PSC

subsequently determines that a contract under an approved tariff is not

compensatory. This bill eliminates all of the foregoing requirements and instead

allows the PSC to approve a tariff with general terms and conditions allowing a TU

to enter into a contract with an individual customer.

ATU certification and regulation.

Under current law, a TU is generally

exempt from PSC regulation if the PSC certifies that the TU is an ATU. The following

four types of TUs may qualify for certification as an ATU: 1) certain cable television

operators who also provide telecommunications service; 2) pay telephone service

providers; 3) telecommunications resellers; and 4) any other telecommunications

provider who offers service that the PSC finds is available from other

telecommunications providers within this state. Except for a TU that is a

municipality, this bill requires certification as an ATU to be on a statewide basis, and

provides that a certification issued before the bill's effective date is considered

amended to be a statewide certification. Notwithstanding the requirement for

statewide certification, the bill requires the parties to a specified proceeding before

the PSC to comply with a settlement agreement regarding an ATU's proposed

expansion of service into areas serviced by other TUs.

Although an ATU is generally exempt from regulation, current law allows the

PSC, on its own motion or in response to a petition by an interested person, to impose

an otherwise inapplicable requirement on an ATU, but only if the PSC determines

that imposing the requirement is in the public interest. Under this bill, if an ATU

is the fourth type of TU described above, the PSC may not impose an otherwise

inapplicable requirement unless the requirement is consistent with a federal law

that does the following: 1) prohibits the state from effectively prohibiting a person's

ability to provide interstate or intrastate telecommunications service; and 2) allows

the state to impose, on a competitively neutral basis, requirements necessary to