As Introduced

126th General Assembly
Regular Session
2005-2006
H. B. No. 218


Representatives Daniels, Taylor, McGregor, Bubp, J. Stewart, Gibbs, Raussen, Cassell, Uecker, T. Patton, Buehrer, Webster, Aslanides, Widener, Martin, Seitz, Flowers, Carmichael, G. Smith, Schlichter, Schneider, Coley, White, Reinhard, C. Evans, Collier, Hood, Hartnett, Latta, Strahorn, Distel 



A BILL
To amend sections 4905.04, 4927.02, 4927.03, and 1
4927.04 and to enact section 4905.041 of the 2
Revised Code to revise state telecommunications 3
policy, authorize the Public Utilities Commission 4
to allow alternative regulation of basic local 5
exchange service provided by larger companies, and 6
specify the scope of Commission authority 7
regarding wholesale telecommunications services, 8
advanced services, and internet protocol-enabled 9
services. 10


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

       Section 1. That sections 4905.04, 4927.02, 4927.03, and 11
4927.04 be amended and section 4905.041 of the Revised Code be 12
enacted to read as follows:13

       Sec. 4905.04.  (A) The public utilities commission is hereby 14
vested with the power and jurisdiction to supervise and regulate 15
public utilities and railroads, to require all public utilities to 16
furnish their products and render all services exacted by the 17
commission or by law, and to promulgate and enforce all orders18
relating to the protection, welfare, and safety of railroad 19
employees and the traveling public, including the apportionment 20
between railroads and the state and its political subdivisions of 21
the cost of constructing protective devices at railroad grade 22
crossings.23

       (B) Division(1) Subject to section 4905.041 of the Revised 24
Code and divisions (B)(2) and (3) of this section, division (A) of 25
this section includes such power and jurisdiction as is reasonably 26
necessary for the commission to perform the acts of a state 27
commission pursuant to the "Telecommunications Act of 1996," Pub. 28
L. No. 104-104, 110 Stat. 56.29

       (2)(a) The commission shall not establish any requirements 30
for the unbundling of network elements, for the resale of 31
telecommunications services, or for network interconnection that 32
are inconsistent with or prohibited by federal law.33

       (b) The commission shall not establish pricing for such 34
unbundled elements, resale, or interconnection that is 35
inconsistent with or prohibited by federal law and shall comply 36
with federal law in establishing such pricing.37

       (3) The commission shall encourage the commercial negotiation 38
of interconnection agreements.39

       Sec. 4905.041. (A) As used in this section:40

       (1) "Advanced services" means high speed, broadband 41
telecommunications capability that enables users to originate and 42
receive high-quality voice, data, graphics, or video 43
telecommunications using any technology.44

       (2) "Internet protocol-enabled service" means an information 45
service that is provided through a server connected to the 46
internet to supply service subscribers with information that 47
enables them to conduct and manage interactive voice or other 48
communications among themselves through their end-user devices, 49
via broadband, internet access.50

       (B) The public utilities commission shall not exercise any 51
jurisdiction over advanced services or internet protocol-enabled 52
services that is inconsistent with or prohibited by federal law.53

       Sec. 4927.02.  (A) It is the policy of this state to:54

       (1) Ensure the availability of adequate basic local exchange 55
service to citizens throughout the state;56

       (2) MaintainRely on market forces, where they are present, 57
to maintain just and reasonable rates, rentals, tolls, and charges 58
for public telecommunications service;59

       (3) Encourage innovation in the telecommunications industry;60

       (4) Promote diversity and options in the supply of public 61
telecommunications services and equipment throughout the state;62

       (5) Recognize the continuing emergence of a competitive 63
telecommunications environment through flexible regulatory 64
treatment of public telecommunications services where appropriate;65

       (6) Consider the regulatory treatment of competing and 66
functionally equivalent services in determining the scope of 67
regulation of services that are subject to the jurisdiction of the 68
public utilities commission; and69

       (7) Not unduly favor or advantage any provider and not unduly 70
disadvantage providers of competing and functionally equivalent 71
services.72

       (B) The public utilities commission shall consider the policy 73
set forth in this section in carrying out sections 4927.03 and 74
4927.04 of the Revised Code and in reducing or eliminating the 75
regulation of telephone companies under those sections as to any 76
public telecommunications service.77

       Sec. 4927.03.  (A)(1) Except as provided in division (B) of 78
this section, theThe public utilities commission, upon its own79
initiative or the application of a telephone company or companies, 80
after notice, after affording the public and any affected 81
telephone company a period for comment, and after a hearing if it 82
considers one necessary, may, by order, exempt any such telephone 83
company or companies, as to any public telecommunications service 84
except, including basic local exchange service, from any provision 85
of Chapter 4905. or, 4909., or 4931. of the Revised Code or any 86
rule or order issued under those chapters, or establish87
alternative regulatory requirements to apply to such public88
telecommunications service and company or companies; provided the89
commission finds that any such measure is in the public interest90
and either of the following conditions exists:91

       (a) The telephone company or companies are subject to92
competition with respect to such public telecommunications93
service;94

       (b) The customers of such public telecommunications service 95
have reasonably available alternatives.96

       (2) In determining whether the conditions in division97
(A)(1)(a) or (b) of this section exist, factors the commission98
shall consider include, but are not limited to:99

       (a) The number and size of alternative providers of services;100

       (b) The extent to which services are available from101
alternative providers in the relevant market;102

       (c) The ability of alternative providers to make functionally 103
equivalent or substitute services readily available at competitive 104
rates, terms, and conditions;105

       (d) Other indicators of market power, which may include106
market share, growth in market share, ease of entry, and the107
affiliation of providers of services.108

       (3) The commission shall not authorize an exemption or 109
establish alternative regulatory requirements under division 110
(A)(1) of this section with respect to basic local exchange 111
service unless it additionally finds that there are no barriers to 112
entry. Further, as to an exemption with respect to basic local 113
exchange service, the commission shall not exempt a telephone 114
company from sections 4905.20, 4905.21, 4905.22, 4905.231, 115
4905.24, 4905.241, 4905.242, 4905.243, 4905.244, 4905.25, 4905.26, 116
4905.30, 4905.32, 4905.33, 4905.35, and 4905.381 of the Revised 117
Code.118

       (B) As used in this division, "basic local exchange service" 119
has the same meaning as in section 4927.01 of the Revised Code, 120
but excludes within a local service area exchange areas to which 121
extended area service is provided.122

       The public utilities commission shall not approve or123
authorize any exemption from or modification of any provision of124
Chapter 4905. or 4909. of the Revised Code or any rule or order125
issued under them which would impair the exclusive right of any126
telephone company under those chapters, rules, or orders to127
provide basic local exchange service in the local service areas in 128
which such service is provided by the company on the effective129
date of this section. Nothing in this division, however, shall be 130
construed to require the withdrawal or prevent the offering by any 131
telephone company of interexchange inward calling services 132
terminating on a local exchange access line or interexchange 133
services that employ dedicated access between the customer's 134
premises and the telephone company's facilities merely because 135
incidental use of such services by the customer for basic local 136
exchange service is possible. Such offering shall not be promoted 137
or marketed as basic local exchange service. Nothing in this 138
division affects the commission's authority and duties under139
sections 4905.241 to 4905.25 of the Revised Code.140

       (C) In carrying out this section, the public utilities141
commission may prescribe different classifications, procedures,142
terms, or conditions for different telephone companies and for the 143
public telecommunications services they provide, provided they are 144
reasonable and do not confer any undue economic, competitive, or 145
market advantage or preference upon any telephone company.146

       (D)(C) The public utilities commission has jurisdiction over147
every telephone company providing a public telecommunications148
service that has received an exemption or for which alternative149
regulatory requirements have been established pursuant to this150
section. As to any such company, the commission, after notice and 151
hearing, may abrogate or modify any order so granting an exemption 152
or establishing alternative requirements if it determines that the 153
findings upon which the order was based are no longer valid and 154
that the abrogation or modification is in the public interest. No 155
such abrogation or modification shall be made more than eight156
three years after the date an order granting an exemption or 157
establishing alternative requirements under this section was 158
entered upon the commission's journal, unless the affected 159
telephone company or companies consent.160

       (E)(D) The public utilities commission shall adopt such rules161
as it finds necessary to carry out this section. It shall adopt 162
rules initially implementing the amendment of this section by .B. 163
No.     of the 126th general assembly within ninety days after the 164
effective date of the amendment.165

       Sec. 4927.04.  (A)(1) In considering an application pursuant166
to section 4909.18 of the Revised Code, the rates and charges for 167
basic local exchange service or any other public 168
telecommunications service for which the public utilities 169
commission has not provided an exemption or alternative regulatory 170
requirements under section 4927.03 of the Revised Code may be 171
established by the commission, upon its own initiative or the172
request of thean applicant telephone company, by a method other 173
than that specified in section 4909.15 of the Revised Code, 174
provided the commission finds the use of the alternative method of 175
establishing rates and charges to be in the public interest and 176
provided, in instances where the alternative method is proposed by 177
the commission, the applicant consents. Alternative methods may 178
include, but are not limited to, methods that maintain universal 179
telephone service in the state; minimize the costs and time 180
expended in the regulatory process; tend to assess the costs of 181
any telecommunications service to the entity or service that 182
causes such costs to be incurred; afford rate stability; promote 183
and reward efficiency, quality of service, or cost containment by 184
telephone companies; or provide sufficient flexibility and 185
incentives to the telecommunications industry to achieve high 186
quality, technologically advanced, and universally available 187
telecommunications services at just and reasonable rates and 188
charges.189

       (2) An application whichthat proposes an alternative method 190
of establishing rates and charges whichthat could result in an 191
increase in any rate or charge for basic local exchange service or192
any other public telecommunications service for which the public 193
utilities commission has not provided an exemption or alternative 194
regulatory requirements under section 4927.03 of the Revised Code 195
without further action by the commission shall be deemed, without 196
further action by the commission, to be an application for an197
increase in rates and charges under section 4909.18 of the Revised 198
Code, notwithstanding whether an immediate increase in rates and 199
charges is proposed.200

       (3) An application pursuant to section 4909.18 of the Revised 201
Code whichthat is not for an increase in rates and charges, but 202
whichthat proposes an alternative method of establishing rates 203
and charges for basic local exchange service or any other public 204
telecommunications service for which the public utilities 205
commission has not provided an exemption or alternative regulatory 206
requirements under section 4927.03 of the Revised Code, shall 207
include the exhibits specified in divisions (A) to (D) of section 208
4909.18 of the Revised Code, unless otherwise ordered by the209
commission. Notwithstanding any provision of section 4909.18 of 210
the Revised Code to the contrary, after the date such application 211
is filed, any person may file a request for hearing on the 212
application. If it appears to the commission that the request sets 213
forth reasonable grounds for holding a hearing, the commission 214
shall set the matter for hearing and shall give notice of such 215
hearing as provided in section 4909.18 of the Revised Code.216

       (B) Upon the application of any telephone company that is an 217
incumbent local exchange carrier as defined in 47 U.S.C. 252(h)218
having fewer than fifteen thousand access lines, the public 219
utilities commission, by order, may exempt such company, with 220
respect to any public telecommunications service it provides, from 221
any provision of Chapter 4905. or 4909. of the Revised Code that 222
is specified and requested in such application, except sections223
4905.20, 4905.21, 4905.22, 4905.231, 4905.24, 4905.241, 4905.242,224
4905.243, 4905.244, 4905.25, 4905.26, 4905.30, 4905.32, 4905.33,225
4905.35, and 4905.381 of the Revised Code; or may establish226
alternative regulatory requirements to apply to such company and227
service, provided the commission finds that the alternative228
requirements are in the public interest.229

       (C) In carrying out this section, the public utilities230
commission may use different methods of establishing the rates and 231
charges of different telephone companies, provided that the232
methods are reasonable and do not confer any undue economic,233
competitive, or market advantage or preference upon any telephone234
company.235

       (D) The public utilities commission shall adopt such rules as 236
it finds necessary to carry out this section.237

       Section 2. That existing sections 4905.04, 4927.02, 4927.03, 238
and 4927.04 of the Revised Code are hereby repealed.239

       Section 3. The amendment of sections 4927.03 and 4927.04 of 240
the Revised Code by this act does not invalidate any rule adopted 241
or order issued by the Public Utilities Commission under those 242
sections and in effect prior to the effective date of the act.243