Telecommunications.

WORKING DRAFT
2006
STATE OF
WYOMING
06LSO-0217

HOUSE BILL
NO.
HB0067

Telecommunications.

Sponsored by:
Joint Corporations, Elections and Political Subdivisions Interim Committee

A BILL

for

AN ACT relating to telecommunications; recognizing competition from alternate providers; requiring certificates of public convenience and necessity for all telecommunications providers; repealing cost based pricing; providing for downward pricing flexibility for telecommunications services; providing a limitation on increasing prices for essential telecommunications services; limiting annual reports by the public service commission; repealing anachronistic provisions; eliminating mandatory quality of service studies; and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.
W.S. 37
‑
15
‑
101, 37
‑
15
‑
103(a)(iv)
(intro)
,
(B), (C) and
(xvi)
(A)(V)
, 37
‑
15
‑
104(a)(ii) and (ix), 37
‑
15
‑
201(a) and (b), 37
‑
15
‑
202
(a)(intro), (i) and (ii), 37
‑
15
‑
203(a) and by creating new subsections (e) through (h),
37
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15
‑
204
(a)
, 37
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15
‑
401(a)
by creating a new paragraph
(v
ii
), 37
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15
‑
403(a), 37
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15
‑
404(a)(i), 37
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15
‑
405, 37
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15
‑
406(b), 37
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15
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407(a)(intro), 37
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15
‑
408
, 37
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15
‑
501(a) and (b)
and 37
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15
‑
502
(a)(intro) and (iv)
are amended to read:

37
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15
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101.

Short title.

This chapter shall be known as the "Wyoming Telecommunications Act
."

of 1995."

37
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15
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103.

Definitions.

(a)

As used in this chapter:

(iv)

"Essential telecommunications service" means a customer's access to service that is necessary for the origination or termination, or both, of two-way, switched telecommunications for both residential
voice grade
and business
voice grade
service within a local exchange area. Essential telecommunications services are limited to:

(B)

Single line flat-rate or single line measured residence or business
voice grade
service;

(C)

Transmission service and facilities necessary for the connection between the end user's or customer's premises
or location
and
the
local network switching facility including the necessary signaling service used by customers to access essential telecommunications services;

(xvi)

"Supported services" means the services or functionalities which shall be supported by the state universal service fund pursuant to W.S. 37
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15
‑
502, as described in subparagraphs (A) and (B) of this paragraph:

(A)

The services designated for support are:

(V)

Access to emergency services. "Access to emergency services" includes access to services, such as 911 and enhanced 911, provided by local governments or other public safety organizations. 911 is defined as a service that permits a telecommunications user, by dialing the three-digit code "911," to call emergency services through a public
service access
safety answering
point operated by the local government. "Enhanced 911" is defined as 911 service that includes the ability to provide automatic numbering information, which enables the public
service access
safety answering
point to call back if the call is disconnected, and automatic location information, which permits emergency service providers to identify the geographic location of the calling party. "Access to emergency services" includes access to 911 and enhanced 911 services in accordance with applicable governing authority;

37
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15
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104.

Services not regulated by this title.

(a)

Except for contributions to the universal service fund required pursuant to W.S. 37
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15
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501 and the assessment levied pursuant to W.S. 37
‑
2
‑
106 through 37
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2
‑
109, telecommunications service does not include, and the provisions of this title do not apply to:

(ii)

Except as provided in this paragraph,
H
ome and business and coinless, or coin operated public or semipublic telephone terminal equipment, and the use, location and charges for the use of such equipment
;
. The commission may regulate the location of and charges for coinless or coin operated public or semipublic telephone terminal equipment in areas of the state which the commission finds are not subject to competition for such equipment;

(ix)

Nonvoice data services
;
not operated by a company providing local exchange service;

37
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15
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201.

Regulation of local exchange services; certificates of public convenience and necessity; concurrent certificates.

(a)

Except for those telecommunications companies that as of January 1, 1995, have a valid certificate of public convenience and necessity previously issued by the commission to provide local exchange services in the state,
A
ll telecommunications companies seeking to offer and provide local exchange service shall obtain a certificate of public convenience and necessity from the commission prior to providing that service in this state.

(b)

The commission shall grant a concurrent certificate or certificates of public convenience and necessity to provide local exchange service
in the service territory of a local exchange company with more than thirty thousand (30,000) access lines in the state
if it finds, after notice and opportunity for hearing, that the applicant possesses sufficient technical, financial and managerial resources to provide safe, adequate and reliable local exchange services within the identified geographic area.

37
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15
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202.

Determination of competitive services.

(a)

Upon petition by any telecommunications company, the commission may, after notice and opportunity for hearing, find and conclude that a telecommunications service
in the relevant market
is subject to competition. Any service found to be effectively competitive shall not be subject to regulation of prices by the commission. The commission shall consider only the following factors in determining whether a telecommunications service
in the relevant market
is subject to effective competition:

(i)

The extent to which
the same or equivalent
telecommunications services are available from alternative providers
including, but not limited to, wireless providers who provide at least one thousand (1,000) anytime minutes per customer per month, cable providers offering voice services, voice over internet protocol or any other providers utilizing telephone numbers to provide voice services
in the relevant market;

(ii)

The extent to which telecommunications services of alternative providers are functionally equivalent
or
and

may be substituted at
reasonably
comparable prices, terms and conditions
for the same service or in combination with other services
;

37
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15
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203.

Price regulation of noncompetitive services.

(a)

Prices for telecommunications services which have not been determined by the legislature or the commission to be competitive
telecommunications services
shall be regulated by the commission in accordance with this section.
The prices for noncompetitive telecommunications services of any local exchange company may be adjusted downward at the company's discretion. Except as provided in subsections (e) and (f) of this section, prices for noncompetitive telecommunications services shall be subject to a maximum determined by the commission. The initial maximum shall be the local exchange company's price of noncompetitive telecommunications services as of July 1, 2006.
A local exchange carrier may increase its price to the level of the maximum set under this subsection without approval of the commission as required under subsections (f) and (g) of this section.

(e)

A local exchange company may seek approval to make revenue neutral adjustments to the price of essential telecommunications service to reduce or eliminate differences in the price of essential telecommunications service in different portions of its service area.

(f)

A local exchange company may seek approval to increase the price of essential telecommunications service based on:

(i)

Changes in the local calling area as approved by the commission;

(ii)

Changes in access charges as approved by the commission; or

(iii)

Other changes affecting essential telecommunications service.

(g)

Except as provided in subsection (a) of this section, any requested price change under subsections (a) through (f) of this section, including revenue neutral changes, that may result in an increase in the price of essential telecommunications services is subject to review and determination by the commission, after notice and opportunity for hearing.

(h)

The prices of any local exchange company may contain provisions for incentives for improvement of the company's performance or efficiency, lowering of operating costs, control of expenses or improvement and upgrading or modernization of its services or facilities. Any local exchange company may apply to the commission for incentives and innovative or nontraditional price regulation, including price indexing. The commission shall issue a final order approving, modifying or rejecting any application made under this subsection within one hundred eighty (180) days of the filing date of the application with the commission. If no order is issued by the commission within the one hundred eighty (180) day period, the application shall be deemed approved as filed. If during consideration of an application for regulation under this subsection, the commission materially alters the plan as filed in the application, the applying local exchange company may notify the commission in writing, at any time, but not later than sixty (60) days after any final commission order on the application, that it elects not to be price regulated as approved by the order. The local exchange company's prices shall then be regulated as they were prior to the application until such time as a new application is filed, approved and accepted.

37
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15
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204.

Price schedules filed with the commission.

(a)

A local exchange company
All telecommunications companies
shall file with the commission, in such form and detail as the commission may require, schedules showing all
competitive and
noncompetitive telecommunications services terms, conditions and prices
, including prices set by contract,
currently in effect and charged to customers by the company in this state.
All prices for new noncompetitive telecommunications services, and any change in prices for noncompetitive telecommunications services, shall be filed thirty (30) days prior to the proposed effective date unless a shorter filing period is authorized by the commission. No price increase for a noncompetitive service shall be effective unless the customer has been given notice by the provider at least one (1) full billing cycle prior to the proposed increase. All price changes for competitive services shall be effective as provided for in the company's price schedule. No price or price change is effective until filed in accordance with this section. Prices charged for competitive services shall be in accordance with its price schedule unless a separate contract is negotiated. For purposes of this subsection, the rules, regulations, policies, practices and other requirements relating to services shall be filed with the commission in such form and detail as the commission may require. Rules, regulations, policies, practices and other requirements relating to competitive services shall be subject to the same requirements under this chapter as the prices of competitive services. Those relating to noncompetitive services shall be subject to the same requirements under this chapter as the prices of noncompetitive services
Prices for generally offered competitive services shall be publicly available on a company's website through the internet, the world wide web or a similar proprietary or common carrier, or provided to the commission
.
All price changes for noncompetitive services shall be filed on or before the effective date of the change, as provided in the company's price schedule. Price schedules may be filed in electronic format at the option of the company.

37
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15
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401.

Commission powers.

(a)

In addition to the powers exercised pursuant to the provisions of W.S. 37
‑
15
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408, the commission has the power to:

(vii)

Exercise authority as delegated under the Federal Communications Act of 1934, as amended
.

37
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15
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403.

Cross-subsidies prohibited; enforcement.

(a)

No telecommunications company shall use revenues earned from or allocate expenses to noncompetitive
telecommunications
services to subsidize
competitive telecommunications
services
.

determined by the commission to be subject to competition.

The commission shall not require revenues or expenses from competitive
telecommunications
services to be attributed to noncompetitive
telecommunications
services. Revenues obtained from noncompetitive telecommunications services may not be used to subsidize competitive
telecommunications
services. Revenues from competitive telecommunications services may not be used to subsidize noncompetitive telecommunications services. Nothing in this subsection shall affect the assignment of any revenues received from the universal service fund for the exclusive support of high cost, local exchange services.

37
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404.

Protection of telecommunications consumers.

(a)

No telecommunications company shall unreasonably discriminate as to customers in prices, terms or conditions of service, or in connection to or with other telecommunications companies. Nothing in this chapter shall be construed to prohibit any telecommunications company from:

(i)

Providing volume or other price discounts based on reasonable, nonpredatory business practices
, including introducing promotional offerings, special incentives, competitive discounts and price waivers
;

37
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15
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405.

Complaint against prices.

Any person, and the commission on its own motion, may complain to the commission concerning the reasonableness of the price of any noncompetitive telecommunications service. Any notice and hearing of any complaint shall be in accordance with the Wyoming Administrative Procedure Act and this chapter. The commission shall only set aside any price it finds after notice and hearing to be unreasonable or unreasonably discriminatory. If the commission sets aside a price as unreasonable or unreasonably discriminatory, the telecommunications company shall have sixty (60) days to file a new price which is reasonable. The company shall refund any charges found to be unreasonable as ordered by the commission.

Any price set in compliance with the provisions of W.S. 37-15-402 is presumed to be fair and reasonable, subject to rebuttal by the commission or any party to the hearing.

37
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406.

Quality of service.

(b)

Any customer, and the commission on its own motion, may complain concerning the quality of service provided by a telecommunications company. A complaint shall be noticed and heard as provided for in the Wyoming Administrative Procedure Act. The commission, after notice and hearing, may direct the telecommunications company to take whatever remedial action is technically feasible and economically reasonable to provide reasonably adequate service. The commission shall authorize a telecommunications provider to recover the cost of compliance
with
as determined by
any commission order under this section.

37
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407.

Annual report.

(a)

The commission shall with the input and participation of the telecommunications industry and other relevant state departments, boards and agencies prepare and issue an annual report on the status of the telecommunications industry
.

and
Wyoming
regulation thereof on January 10 of each year beginning in 1996.

Such report shall
be based on information provided to the commission and shall
include:

37
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408.

Applicability of existing law.

W.S.
37
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1
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104 through 37
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1
‑
106,
37
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2
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102, 37
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2
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104, 37
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2
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106 through 37
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2
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109, 37
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2
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113, 37
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2
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115 through 37
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2
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118, 37
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2
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124, 37
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2
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125, 37
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2
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130, 37
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2
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203, 37
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2
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205(a), 37
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2
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209, 37
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2
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214 through 37
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2
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216, 37
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2
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218, 37
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2
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301 through 37
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2
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306, 37
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3
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114, 37
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4
‑
101 through 37
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4
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104, 37
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12
‑
120 through 37
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12
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130, 37
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12
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201, 37
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12
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202, 37
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12
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204 through
37
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12
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209, 37
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12
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211 through
3
7
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12
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213, 37
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12
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301 through 37
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12
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304 and 37
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13
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101 through 37
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13
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137, inclusive, unless in conflict with other provisions of this chapter, are applicable to telecommunications companies and telecommunication companies shall be considered public utilities for the purposes of those provisions.

For purposes of this chapter W.S. 37
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3
‑
106(b) and (c) shall apply to telecommunications companies which are rate of return regulated.

37
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15
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501.

Universal service fund created; contributions; administration.

(a)

There is hereby established the universal service fund to be administered in accordance with this section. The fund shall be administered by the commission. All telecommunications companies
and companies drawing from the universal service fund
shall contribute to the universal service fund. The dates for contributions to the fund and disbursements from the fund shall be set by the commission, after notice and opportunity for hearing, as necessary to accomplish the objectives of the fund as specified in subsections (c) and (d) of this section. The costs of administering the fund may be included in determining required contributions.

(b)

The commission shall after notice and opportunity for hearing, designate the method by which the contributions shall be calculated, collected and distributed
.

in order to achieve the goals set forth in W.S. 37-15-102.

The commission shall authorize an additional monthly charge to customers, in the amount specified by the commission, to recover each contributor's required payment to the universal service fund. Any charge related to mobile telecommunications service shall only apply if the customer's place of primary use is in this state as provided by the Mobile Telecommunications Sourcing Act, 4 U.S.C. §§ 116 to 126. The provisions of the Mobile Telecommunications Sourcing Act shall apply to this subsection.

37
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502.

Universal service fund eligibility and distribution to carriers.

(a)

Telecommunications companies which use
wireline,
cellular, radio spectrum
,

or other
wireless
or other
technology to provide supported services to customers who are otherwise eligible to receive universal service support pursuant to W.S. 37
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15
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501, may establish eligibility to receive universal service fund distributions in an amount to be determined by the commission, provided that:

(iv)

The company and services meet such additional criteria, if any, the commission
, after notice and opportunity for hearing,
determines are necessary
.

to further the stated intent of W.S. 37
‑
15
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102.

During its consideration and determination, the commission shall consider technological and competitive neutrality.

The commission shall adopt rules setting forth any such criteria on or before December 31, 2001.

Section 2.
W.S. 37
‑
15
‑
102, 37
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15
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103(a)(i), (vi)
and
(b), 37
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15
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201(c) through (h), 37
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15
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203(
b
)
through
(d), 37
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15
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204(b) and (c), 37
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15
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301(e), 37-15-402, 37
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15
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406(a), 37
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15
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407(a)(i) through (iv), 37
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15
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410 and 37
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15
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411 are repealed.

Section 3.
This act is effective July 1, 2006.

(END)

1
HB0067