Bill Text: OH SB271 | 2011-2012 | 129th General Assembly | Engrossed

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Bill Title: To establish certain exemptions, including permitting the withdrawal of services, for incumbent local exchange carriers determined to be fully competitive, and, regarding the provision of basic local exchange service, for other telephone companies operating in the same areas.

Sponsorship: Strong Partisan Bill (Republican 19-1)

Status: (Engrossed - Dead) 2012-02-15 - Passed 3rd Consideration House [SB271 Detail]

Download: Ohio-2011-SB271-Engrossed.html

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As Passed by the Senate

129th General Assembly Regular Session 2011-2012

Sub. S. B. No. 271

Senator LaRose 

Cosponsors: Senators Seitz, Jones, Manning, Widener, Eklund, Burke, Coley, Sawyer, Patton, Jordan, Schaffer, Beagle, Hite, Wagoner, Bacon, Daniels, Hughes, Lehner, Niehaus 

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A BILL

To amend sections 4927.07, 4927.08, 4927.11, and

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4927.12 and to enact sections 4927.071 and 4927.10

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of the Revised Code to establish certain

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exemptions, including permitting the withdrawal of

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services, for incumbent local exchange carriers

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determined to be fully competitive, and, regarding

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the provision of basic local exchange service, for

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other telephone companies operating in the same

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areas.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 4927.07, 4927.08, 4927.11, and	10
4927.12 be amended and sections 4927.071 and 4927.10 of the	11
Revised Code be enacted to read as follows:	12

Sec. 4927.07.  (A) AAs used in this section:

13

(1) "Exchange area" has the same meaning as in section	14
4927.12 of the Revised Code.	15

(2) "Fully competitive incumbent local exchange carrier"	16
means an incumbent local exchange carrier to which both of the	17
following apply:	18

(a) The carrier has elected the designation as a fully	19
competitive incumbent local exchange carrier by notifying the	20
public utilities commission in writing.	21

(b) Either of the following applies to each exchange area in	22
which the carrier is an incumbent local exchange carrier:	23

(i) The commission has made a prior determination that the	24
exchange area qualified for alternative regulation of basic local	25
exchange service under Chapter 4901:1-4 of the Ohio Administrative	26
Code as that chapter existed on September 13, 2010.	27

(ii) The commission has found or has been deemed to have	28
found that the carrier's application for the exchange area, filed	29
under division (C)(3)(a) of section 4927.12 of the Revised Code,	30
meets the requirements of that division.	31

(B) Except as provided in divisions (C) and (E) of this	32
section, a telephone company may withdraw any telecommunications	33
service if it gives at least thirty days' prior notice to the	34
public utilities commission and to its affected customers.	35

(B) A(C)(1) Subject to the restrictions in division (C)(2)	36
of this section, a fully competitive incumbent local exchange	37
carrier may withdraw basic local exchange service if it gives at	38
least ninety days' prior notice to all of the following:	39

(a) The commission;

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(b) The consumers' counsel;

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(c) Affected customers, which notice may be provided in any	42
reasonable manner, including a bill insert, bill message, direct	43
mail, or, if the customer consents, by electronic means;	44

(d) The public in accordance with a rule adopted by the	45
commission that is consistent with the public notice requirements	46
established in section 4909.19 of the Revised Code.	47

Notice required under this division may be provided before	48
the dates specified in division (C)(2) of this section, so that	49
the withdrawal may take effect on those dates.	50

(2) A fully competitive incumbent local exchange carrier may	51
not withdraw basic local exchange service before July 1, 2013, in	52
any exchange area to which division (A)(2)(b)(i) of this section	53
applies. A fully competitive incumbent local exchange carrier may	54
not withdraw basic local exchange service before July 1, 2014, in	55
any exchange area to which division (A)(2)(b)(ii) of this section	56
applies.	57

(D) Except as provided in division (E) of this section, a	58
telephone company may abandon entirely telecommunications service	59
in this state if it gives at least thirty days' prior notice to	60
the commission, to its wholesale and retail customers, and to any	61
telephone company wholesale provider of its services.	62

(C)(E) Divisions (A) and (B), (C), and (D) of this section	63
do not apply to any of the following:	64

(1) Basic local exchange service provided by an incumbent	65
local exchange carrier that is not fully competitive;	66

(2) Pole attachments under section 4905.71 of the Revised	67
Code;	68

(3) Conduitand conduit occupancy under section 4905.71 of	69
the Revised Code;	70

(4) Interconnection and resale agreements approved under the	71
"Telecommunications Act of 1996," 110 Stat. 56, 47 U.S.C. 151 et	72
seq., as amended.	73

(D) An incumbent local exchange carrier may not withdraw or	74
abandon basic local exchange service.	75

(E) A telephone company may not, without first filing a	76
request with the commission and obtaining commission approval,	77
withdraw any tariff filed with the commission for pole attachments	78
or conduit occupancy under section 4905.71 of the Revised Code or	79
abandon service provided under that section.	80

(3) Interconnection and resale agreements approved under the	81
"Telecommunications Act of 1996," 110 Stat. 56, 47 U.S.C. 151 et	82
seq., as amended.	83

Sec. 4927.071. (A) As used in this section:

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(1) "Exchange area" has the same meaning as in section	85
4927.12 of the Revised Code.	86

(2) "Fully competitive incumbent local exchange carrier" has	87
the same meaning as in section 4927.07 of the Revised Code.	88

(B) Not later than one hundred twenty days after the	89
effective date of this section, the public utilities commission	90
may adopt a rule that addresses situations in which a fully	91
competitive incumbent local exchange carrier provides notice of	92
the withdrawal of basic local exchange service and no other	93
comparable service is available at one or more customer locations	94
in the exchange area where the service is to be withdrawn. The	95
commission shall establish a competitively and technologically	96
neutral process by which such service may be provided to those	97
customer locations. In doing so, the commission shall rely on the	98
national broadband plan and the connect America fund adopted by	99
the federal communications commission in determining the	100
availability of comparable service and the funding for that	101
service. The commission shall not adopt a funding mechanism for	102
this process or service and shall not order any carrier to provide	103
such service involuntarily to those customer locations.	104

Sec. 4927.08.  (A) AExcept as provided in section 4927.10 of	105
the Revised Code, a telephone company providing basic local	106
exchange service shall conduct its operations so as to ensure that	107
the service is available, adequate, and reliable, consistent with	108
applicable industry standards.	109

(B) The public utilities commission shall adopt rules	110
prescribing the following standards for the provision of basic	111
local exchange service, and shall adopt no other rules regarding	112
that service except as expressly authorized in this chapter:	113

(1) Basic local exchange service shall be installed within	114
five business days of the receipt by a telephone company of a	115
completed application for that service.	116

(2) A basic local exchange service outage or	117
service-affecting problem shall be repaired within seventy-two	118
hours after it is reported to the telephone company, and the	119
telephone company shall make reasonable efforts to repair a basic	120
local exchange service outage within twenty-four hours, excluding	121
Sundays and legal holidays, after the outage is reported to the	122
telephone company.	123

(3)(a) Except as provided in division (B)(3)(b) of this	124
section, if a basic local exchange service outage is reported to	125
the telephone company and lasts more than seventy-two hours, the	126
telephone company shall credit every affected customer, of which	127
the telephone company is aware, in the amount of one month's	128
charges for basic local exchange service.	129

(b) If the outage is caused by a customer, the telephone	130
company may elect not to credit that customer.	131

(4) No telephone company shall establish a due date earlier	132
than fourteen consecutive days after the date the bill is	133
postmarked for a bill for basic local exchange service provided to	134
end users.	135

(5) A telephone company may disconnect basic local exchange	136
service for nonpayment of any amount past due on a billed account	137
not earlier than fourteen days after the due date of the	138
customer's bill, provided that the customer is given notice of the	139
disconnection seven days before the disconnection.	140

(6) A telephone company may require a deposit, not to exceed	141
two hundred thirty per cent of a reasonable estimate of one	142
month's service charges, for the installation of basic local	143
exchange service for any person that it determines, in its	144
discretion, is not creditworthy.	145

(7) A telephone company shall, unless prevented from doing so	146
by circumstances beyond the telephone company's control or unless	147
the customer requests otherwise, reconnect a customer whose basic	148
local exchange service was disconnected for nonpayment of past due	149
charges not later than one business day after the day the earlier	150
of the following occurs:	151

(a) The receipt by the telephone company of the full amount	152
of past due charges;	153

(b) The receipt by the telephone company of the first payment	154
under a mutually agreed-upon payment arrangement.	155

(C) The rules described in division (B) of this section shall	156
provide for a waiver of the standards described in that division	157
in circumstances determined appropriate by the commission.	158

Sec. 4927.10.  (A) As used in this section:

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(1) "Exchange area" has the same meaning as in section	160
4927.12 of the Revised Code.	161

(2) "Fully competitive incumbent local exchange carrier" has	162
the same meaning as in section 4927.07 of the Revised Code.	163

(B) On the applicable date for each exchange area as	164
prescribed in division (C)(2) of section 4927.07 of the Revised	165
Code, whether or not basic local exchange service is withdrawn	166
pursuant to that division:	167

(1) Section 4927.08 of the Revised Code and any rules adopted	168
under that section do not apply to a fully competitive incumbent	169
local exchange carrier, or to any other telephone company to the	170
extent that the telephone company provides basic local exchange	171
service in the same exchange area of the fully competitive	172
incumbent local exchange carrier.	173

(2) Section 4927.11 of the Revised Code and any rules adopted	174
under that section do not apply to a fully competitive incumbent	175
local exchange carrier.	176

Sec. 4927.11. (A) Except as otherwise provided in this	177
section and section 4927.10 of the Revised Code, an incumbent	178
local exchange carrier shall provide basic local exchange service	179
to all persons or entities in its service area requesting that	180
service, and that service shall be provided on a reasonable and	181
nondiscriminatory basis.	182

(B)(1) An incumbent local exchange carrier is not obligated	183
to construct facilities and provide basic local exchange service,	184
or any other telecommunications service, to the occupants of	185
multitenant real estate, including, but not limited to,	186
apartments, condominiums, subdivisions, office buildings, or	187
office parks, if the owner, operator, or developer of the	188
multitenant real estate does any of the following to the benefit	189
of any other telecommunications service provider:	190

(a) Permits only one provider of telecommunications service	191
to install the company's facilities or equipment during the	192
construction or development phase of the multitenant real estate;	193

(b) Accepts or agrees to accept incentives or rewards that	194
are offered by a telecommunications service provider to the owner,	195
operator, developer, or occupants of the multitenant real estate	196
and are contingent on the provision of telecommunications service	197
by that provider to the occupants, to the exclusion of services	198
provided by other telecommunications service providers;	199

(c) Collects from the occupants of the multitenant real	200
estate any charges for the provision of telecommunications service	201
to the occupants, including charges collected through rents, fees,	202
or dues.	203

(2) A carrier not obligated to construct facilities and	204
provide basic local exchange service pursuant to division (B)(1)	205
of this section shall notify the public utilities commission of	206
that fact within one hundred twenty days of receiving knowledge	207
thereof.	208

(3) The commission by rule may establish a process for	209
determining a necessary successor telephone company to provide	210
service to real estate described in division (B)(1) of this	211
section when the circumstances described in that division cease to	212
exist.	213

(4) An incumbent local exchange carrier that receives a	214
request from any person or entity to provide service under the	215
circumstances described in division (B)(1) of this section shall,	216
within fifteen days of such receipt, provide notice to the person	217
or entity specifying whether the carrier will provide the	218
requested service. If the carrier provides notice that it will not	219
serve the person or entity, the notice shall describe the person's	220
or entity's right to file a complaint with the commission under	221
section 4927.21 of the Revised Code within thirty days after	222
receipt of the notice. In resolving any such complaint, the	223
commission's determination shall be limited to whether any	224
circumstance described in divisions (B)(1)(a) to (c) of this	225
section exists. Upon a finding by the commission that such a	226
circumstance exists, the complaint shall be dismissed. Upon a	227
finding that such circumstances do not exist, the person's or	228
entity's sole remedy shall be provision by the carrier of the	229
requested service within a reasonable time.	230

(C) An incumbent local exchange carrier may apply to the	231
commission for a waiver from compliance with division (A) of this	232
section. The application shall include, at a minimum, the reason	233
for the requested waiver, the number of persons or entities who	234
would be impacted by the waiver, and the alternatives that would	235
be available to those persons or entities if the waiver were	236
granted. The incumbent local exchange carrier applying for the	237
waiver shall publish notice of the waiver application one time in	238
a newspaper of general circulation throughout the service area	239
identified in the application and shall provide additional notice	240
to affected persons or entities as required by the commission in	241
rules adopted under this division. The commission's rules shall	242
define "affected" for purposes of this division. The commission	243
shall afford such persons or entities a reasonable opportunity to	244
comment to the commission on the application. This opportunity	245
shall include a public hearing conducted in accordance with rules	246
adopted under this division and conducted in the service area	247
identified in the application. After a reasonable opportunity to	248
comment has been provided, but not later than one hundred twenty	249
days after the application is filed, the commission either shall	250
issue an order granting the waiver if, upon investigation, it	251
finds the waiver to be just, reasonable, and not contrary to the	252
public interest, and that the applicant demonstrates a financial	253
hardship or an unusual technical limitation, or shall issue an	254
order denying the waiver based on a failure to meet those	255
standards and specifying the reasons for the denial. The	256
commission shall adopt rules to implement division (C) of this	257
section.	258

Sec. 4927.12.  (A) As used in this section, "exchange area"	259
means a geographical service area established by an incumbent	260
local exchange carrier and approved by the public utilities	261
commission.	262

(B) Subject to divisions (C), (D), and (E) of this section,	263
and upon not less than thirty days' notice to the public utilities	264
commission and to affected customers, an incumbent local exchange	265
carrier may alter its rates for basic local exchange service.	266

(C) In addition to the requirements of division (B) of this	267
section, all of the following apply to any upward alteration of	268
rates for basic local exchange service made under that division:	269

(1) If the incumbent local exchange carrier, within twelve	270
months prior to the effective date of this sectionSeptember 13,	271
2010, increased the carrier's rates for basic local exchange	272
service for an exchange area, both of the following apply:	273

(a) The incumbent local exchange carrier may not alter the	274
carrier's rates for basic local exchange service for the exchange	275
area upward by any amount during the period that ends twelve	276
months after the date of the last increase of the rates for basic	277
local exchange service.	278

(b) Inin no event may the incumbent local exchange carrier,	279
during theany twelve-month period that begins immediately after	280
the end dateannual anniversary of the day of the period	281
described in division (C)(1)(a) of this section, and during any	282
subsequent twelve-month periodthat rate increase, alter the	283
carrier's rates for basic local exchange service upward for the	284
exchange area by more than the amount authorized for an annual	285
increase in the rate for basic local exchange service by division	286
(A) of rule 4901:1-4-11 of the Ohio Administrative Code as that	287
rule existed on the effective date of this sectionSeptember 13,	288
2010.	289

(2) If the incumbent local exchange carrier did not, within	290
twelve months prior to the effective date of this section	291
September 13, 2010, increase the carrier's rates for basic local	292
exchange service for an exchange area, and if the commission has	293
made a prior determination that the exchange area qualified for	294
alternative regulation of basic local exchange service under	295
Chapter 4901:1-4 of the Ohio Administrative Code as that chapter	296
existed on the effective date of this sectionSeptember 13, 2010,	297
in no event may the incumbent local exchange carrier, during the	298
twelve-month period that begins on the effective date of this	299
section, and during any subsequent twelve-month period that begins	300
on September 13 of any year, alter the carrier's rates for basic	301
local exchange service upward for the exchange area by more than	302
the amount described in division (C)(1)(b) of this section.	303

(3)(a) If the commission has not made a prior determination	304
that the exchange area qualified for alternative regulation of	305
basic local exchange service under Chapter 4901:1-4 of the Ohio	306
Administrative Code as that chapter existed on the effective date	307
of this sectionSeptember 13, 2010, an incumbent local exchange	308
carrier may not alter its rates for basic local exchange service	309
upward for that exchange area unless the carrier first applies to	310
the commission and the commission determines that the application	311
demonstrates that two or more alternative providers offer, in the	312
exchange area, competing service to the basic local exchange	313
service offered by an incumbent local exchange carrier in the	314
exchange area, regardless of the technology and facilities used by	315
the alternative provider, the alternative provider's location, and	316
the extent of the alternative provider's service area within the	317
exchange area. An alternative provider includes a telephone	318
company, including a wireless service provider, a	319
telecommunications carrier, and a provider of internet	320
protocol-enabled services, including voice over internet protocol.	321

(b) Upon the filing of an application under division	322
(C)(3)(a) of this section, the commission shall be deemed to have	323
found that the application meets the requirements of that division	324
unless the commission, within thirty days after the filing of the	325
application, issues an order finding that the requirements have	326
not been met.	327

(c) In no event may an incumbent local exchange carrier that	328
applies to the commission under division (C)(3)(a) of this	329
section, during the twelve-month period that begins on the	330
thirty-first day after the company files the application, and	331
during any subsequent twelve-month period, alter the carrier's	332
rates for basic local exchange service upward for the exchange	333
area to which the application applies by more than the amount	334
described in division (C)(1)(b) of this section.	335

(4) In no event may an incumbent local exchange carrier,	336
before January 1, 2012, alter the carrier's rates for basic local	337
exchange service upward for a customer receiving lifeline service	338
under section 4927.13 of the Revised CodeDivisions (C)(1) and	339
(2), and division (C)(3)(c) of this section shall be applied	340
separately to business and residential classes of service. Under	341
those divisions, an incumbent local exchange carrier may alter	342
rates for basic local exchange service upward multiple times in	343
the same exchange area during a single twelve-month period	344
described in those divisions, as long as the total amount of the	345
upward alterations does not exceed the authorized amount described	346
in those divisions.	347

(D) Except as provided in division (E) of this section, no	348
banking of upward rate alterations made under division (B) of this	349
section is permitted.	350

(E) At any time and upon not less than thirty days' notice to	351
the commission and to affected customers, an incumbent local	352
exchange carrier owned and operated exclusively by and solely for	353
its customers may alter its rates for basic local exchange service	354
by any amount.	355

(F) The rates, terms, and conditions for basic local exchange	356
service and for installation and reconnection fees for basic local	357
exchange service shall be tariffed in the manner prescribed by	358
rule adopted by the commission.	359

Section 2.  That existing sections 4927.07, 4927.08, 4927.11,	360
and 4927.12 of the Revised Code are hereby repealed.	361

Section 3.  Not later than one hundred twenty days after the	362
effective date of this act, the Public Utilities Commission shall	363
amend its rules to the extent necessary to bring them into	364
conformity with this act.	365

Section 4. Nothing in sections 4927.07, 4927.071, 4927.08,	366
4927.10, 4927.11, and 4927.12 of the Revised Code as amended or	367
enacted by this act is intended to affect any contractual	368
obligation or any right or obligation under federal law or rules.	369