As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 271

Senator LaRose 

Cosponsors: Senators Seitz, Jones, Manning, Widener, Eklund, Burke, Coley, Sawyer, Patton, Jordan, Schaffer, Beagle, Hite, Wagoner 

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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

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and retirement of services, for incumbent local

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exchange carriers determined to be fully

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competitive, and, regarding the provision of basic

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local exchange service, other telephone companies

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operating in the same 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), (E), and (F) 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 the commission and to its	39
affected customers, except that no such notice is required if	40
reasonably comparable notice is required by a federal law or rule	41
and is given in accordance with that law or rule. If notice is	42
required under this division, notice to an affected customer may	43
be provided in any reasonable manner, including a bill insert,	44
bill message, direct mail, or, if the customer consents, by	45
electronic means. Notice to the commission or affected customers	46
may be provided before the dates specified in division (C)(2) of	47
this section, so that the withdrawal may take effect on those	48
dates.	49

(2) A fully competitive incumbent local exchange carrier may	50
not withdraw basic local exchange service before January 1, 2013,	51
in any exchange area to which division (A)(2)(b)(i) of this	52
section applies. A fully competitive incumbent local exchange	53
carrier may not withdraw basic local exchange service before	54
January 1, 2014, in any exchange area to which division	55
(A)(2)(b)(ii) of this section applies.	56

(D) Except as provided in divisions (E) and (F) of this	57
section, a telephone company may abandon entirelyretire the	58
company's regulated telecommunications service in this state if it	59
gives at least thirty days' prior notice to the commission, to its	60
wholesale and retail customers, and to any telephone company	61
wholesale provider of its services.	62

(C)(E) On or after January 1, 2014, a fully competitive	63
incumbent local exchange carrier may retire its regulated	64
telecommunications service in this state, including basic local	65
exchange service, if it gives at least ninety days' prior notice	66
to the commission, to its wholesale and retail customers, and to	67
any telephone company wholesale provider of its services, except	68
that no such notice is required if reasonably comparable notice is	69
required by a federal law or rule and is given in accordance with	70
that law or rule. If notice is required under this division,	71
notice to an affected customer may be provided in any reasonable	72
manner, including a bill insert, bill message, direct mail, or, if	73
the customer consents, by electronic means. Notice required under	74
this division may be provided before January 1, 2014, so that the	75
retirement may take effect on that date.	76

(F) Divisions (A) and (B), (C), (D), and (E) of this section	77
do not apply to any of the following:	78

(1) Basic local exchange service provided by an incumbent	79
local exchange carrier that is not fully competitive;	80

(2) Pole attachments under section 4905.71 of the Revised	81
Code;	82

(3) Conduitand conduit occupancy under section 4905.71 of	83
the Revised Code;	84

(4) Interconnection and resale agreements approved under the	85
"Telecommunications Act of 1996," 110 Stat. 56, 47 U.S.C. 151 et	86
seq., as amended.	87

(D) An incumbent local exchange carrier may not withdraw or	88
abandon basic local exchange service.	89

(E) A telephone company may not, without first filing a	90
request with the commission and obtaining commission approval,	91
withdraw any tariff filed with the commission for pole attachments	92
or conduit occupancy under section 4905.71 of the Revised Code or	93
abandonretire service provided under that section.	94

(3) Interconnection and resale agreements approved under the	95
"Telecommunications Act of 1996," 110 Stat. 56, 47 U.S.C. 151 et	96
seq., as amended.	97

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

98

(1) "Exchange area" has the same meaning as in section	99
4927.12 of the Revised Code.	100

(2) "Fully competitive incumbent local exchange carrier" has	101
the same meaning as in section 4927.07 of the Revised Code.	102

(B) Not later than one year after the effective date of this	103
section, the public utilities commission shall adopt a rule that	104
addresses situations in which a fully competitive incumbent local	105
exchange carrier withdraws its basic local exchange service or	106
retires its regulated telecommunications service, including basic	107
local exchange service, and no other comparable service is	108
available in the exchange area where the service is withdrawn or	109
retired. The commission may establish a competitively neutral and	110
technologically neutral process by which such service may be	111
provided by a single entity in each such exchange area. The	112
commission may adopt a competitively neutral and technologically	113
neutral funding mechanism to facilitate this process and the	114
service.	115

Sec. 4927.08.  (A) AExcept as provided in section 4927.10 of	116
the Revised Code, a telephone company providing basic local	117
exchange service shall conduct its operations so as to ensure that	118
the service is available, adequate, and reliable, consistent with	119
applicable industry standards.	120

(B) The public utilities commission shall adopt rules	121
prescribing the following standards for the provision of basic	122
local exchange service, and shall adopt no other rules regarding	123
that service except as expressly authorized in this chapter:	124

(1) Basic local exchange service shall be installed within	125
five business days of the receipt by a telephone company of a	126
completed application for that service.	127

(2) A basic local exchange service outage or	128
service-affecting problem shall be repaired within seventy-two	129
hours after it is reported to the telephone company, and the	130
telephone company shall make reasonable efforts to repair a basic	131
local exchange service outage within twenty-four hours, excluding	132
Sundays and legal holidays, after the outage is reported to the	133
telephone company.	134

(3)(a) Except as provided in division (B)(3)(b) of this	135
section, if a basic local exchange service outage is reported to	136
the telephone company and lasts more than seventy-two hours, the	137
telephone company shall credit every affected customer, of which	138
the telephone company is aware, in the amount of one month's	139
charges for basic local exchange service.	140

(b) If the outage is caused by a customer, the telephone	141
company may elect not to credit that customer.	142

(4) No telephone company shall establish a due date earlier	143
than fourteen consecutive days after the date the bill is	144
postmarked for a bill for basic local exchange service provided to	145
end users.	146

(5) A telephone company may disconnect basic local exchange	147
service for nonpayment of any amount past due on a billed account	148
not earlier than fourteen days after the due date of the	149
customer's bill, provided that the customer is given notice of the	150
disconnection seven days before the disconnection.	151

(6) A telephone company may require a deposit, not to exceed	152
two hundred thirty per cent of a reasonable estimate of one	153
month's service charges, for the installation of basic local	154
exchange service for any person that it determines, in its	155
discretion, is not creditworthy.	156

(7) A telephone company shall, unless prevented from doing so	157
by circumstances beyond the telephone company's control or unless	158
the customer requests otherwise, reconnect a customer whose basic	159
local exchange service was disconnected for nonpayment of past due	160
charges not later than one business day after the day the earlier	161
of the following occurs:	162

(a) The receipt by the telephone company of the full amount	163
of past due charges;	164

(b) The receipt by the telephone company of the first payment	165
under a mutually agreed-upon payment arrangement.	166

(C) The rules described in division (B) of this section shall	167
provide for a waiver of the standards described in that division	168
in circumstances determined appropriate by the commission.	169

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

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(1) "Exchange area" has the same meaning as in section	171
4927.12 of the Revised Code.	172

(2) "Fully competitive incumbent local exchange carrier" has	173
the same meaning as in section 4927.07 of the Revised Code.	174

(B) On the applicable date for each exchange area as	175
prescribed in division (C)(2) of section 4927.07 of the Revised	176
Code:	177

(1) Section 4927.08 of the Revised Code and any rules adopted	178
under that section do not apply to a fully competitive incumbent	179
local exchange carrier, or to any other telephone company to the	180
extent that the telephone company provides basic local exchange	181
service in the same exchange area of the fully competitive	182
incumbent local exchange carrier.	183

(2) Section 4927.11 of the Revised Code and any rules adopted	184
under that section do not apply to a fully competitive incumbent	185
local exchange carrier.	186

Sec. 4927.11. (A) Except as otherwise provided in this	187
section and section 4927.10 of the Revised Code, an incumbent	188
local exchange carrier shall provide basic local exchange service	189
to all persons or entities in its service area requesting that	190
service, and that service shall be provided on a reasonable and	191
nondiscriminatory basis.	192

(B)(1) An incumbent local exchange carrier is not obligated	193
to construct facilities and provide basic local exchange service,	194
or any other telecommunications service, to the occupants of	195
multitenant real estate, including, but not limited to,	196
apartments, condominiums, subdivisions, office buildings, or	197
office parks, if the owner, operator, or developer of the	198
multitenant real estate does any of the following to the benefit	199
of any other telecommunications service provider:	200

(a) Permits only one provider of telecommunications service	201
to install the company's facilities or equipment during the	202
construction or development phase of the multitenant real estate;	203

(b) Accepts or agrees to accept incentives or rewards that	204
are offered by a telecommunications service provider to the owner,	205
operator, developer, or occupants of the multitenant real estate	206
and are contingent on the provision of telecommunications service	207
by that provider to the occupants, to the exclusion of services	208
provided by other telecommunications service providers;	209

(c) Collects from the occupants of the multitenant real	210
estate any charges for the provision of telecommunications service	211
to the occupants, including charges collected through rents, fees,	212
or dues.	213

(2) A carrier not obligated to construct facilities and	214
provide basic local exchange service pursuant to division (B)(1)	215
of this section shall notify the public utilities commission of	216
that fact within one hundred twenty days of receiving knowledge	217
thereof.	218

(3) The commission by rule may establish a process for	219
determining a necessary successor telephone company to provide	220
service to real estate described in division (B)(1) of this	221
section when the circumstances described in that division cease to	222
exist.	223

(4) An incumbent local exchange carrier that receives a	224
request from any person or entity to provide service under the	225
circumstances described in division (B)(1) of this section shall,	226
within fifteen days of such receipt, provide notice to the person	227
or entity specifying whether the carrier will provide the	228
requested service. If the carrier provides notice that it will not	229
serve the person or entity, the notice shall describe the person's	230
or entity's right to file a complaint with the commission under	231
section 4927.21 of the Revised Code within thirty days after	232
receipt of the notice. In resolving any such complaint, the	233
commission's determination shall be limited to whether any	234
circumstance described in divisions (B)(1)(a) to (c) of this	235
section exists. Upon a finding by the commission that such a	236
circumstance exists, the complaint shall be dismissed. Upon a	237
finding that such circumstances do not exist, the person's or	238
entity's sole remedy shall be provision by the carrier of the	239
requested service within a reasonable time.	240

(C) An incumbent local exchange carrier may apply to the	241
commission for a waiver from compliance with division (A) of this	242
section. The application shall include, at a minimum, the reason	243
for the requested waiver, the number of persons or entities who	244
would be impacted by the waiver, and the alternatives that would	245
be available to those persons or entities if the waiver were	246
granted. The incumbent local exchange carrier applying for the	247
waiver shall publish notice of the waiver application one time in	248
a newspaper of general circulation throughout the service area	249
identified in the application and shall provide additional notice	250
to affected persons or entities as required by the commission in	251
rules adopted under this division. The commission's rules shall	252
define "affected" for purposes of this division. The commission	253
shall afford such persons or entities a reasonable opportunity to	254
comment to the commission on the application. This opportunity	255
shall include a public hearing conducted in accordance with rules	256
adopted under this division and conducted in the service area	257
identified in the application. After a reasonable opportunity to	258
comment has been provided, but not later than one hundred twenty	259
days after the application is filed, the commission either shall	260
issue an order granting the waiver if, upon investigation, it	261
finds the waiver to be just, reasonable, and not contrary to the	262
public interest, and that the applicant demonstrates a financial	263
hardship or an unusual technical limitation, or shall issue an	264
order denying the waiver based on a failure to meet those	265
standards and specifying the reasons for the denial. The	266
commission shall adopt rules to implement division (C) of this	267
section.	268

Sec. 4927.12.  (A) As used in this section, "exchange area"	269
means a geographical service area established by an incumbent	270
local exchange carrier and approved by the public utilities	271
commission.	272

(B) Subject to divisions (C), (D), and (E) of this section,	273
and upon not less than thirty days' notice to the public utilities	274
commission and to affected customers, an incumbent local exchange	275
carrier may alter its rates for basic local exchange service.	276

(C) In addition to the requirements of division (B) of this	277
section, all of the following apply to any upward alteration of	278
rates for basic local exchange service made under that division:	279

(1) If the incumbent local exchange carrier, within twelve	280
months prior to the effective date of this sectionSeptember 13,	281
2010, increased the carrier's rates for basic local exchange	282
service for an exchange area, both of the following apply:	283

(a) The incumbent local exchange carrier may not alter the	284
carrier's rates for basic local exchange service for the exchange	285
area upward by any amount during the period that ends twelve	286
months after the date of the last increase of the rates for basic	287
local exchange service.	288

(b) Inin no event may the incumbent local exchange carrier,	289
during theany twelve-month period that begins immediately after	290
the end dateannual anniversary of the day of the period	291
described in division (C)(1)(a) of this section, and during any	292
subsequent twelve-month periodthat rate increase, alter the	293
carrier's rates for basic local exchange service upward for the	294
exchange area by more than the amount authorized for an annual	295
increase in the rate for basic local exchange service by division	296
(A) of rule 4901:1-4-11 of the Ohio Administrative Code as that	297
rule existed on the effective date of this sectionSeptember 13,	298
2010.	299

(2) If the incumbent local exchange carrier did not, within	300
twelve months prior to the effective date of this section	301
September 13, 2010, increase the carrier's rates for basic local	302
exchange service for an exchange area, and if the commission has	303
made a prior determination that the exchange area qualified for	304
alternative regulation of basic local exchange service under	305
Chapter 4901:1-4 of the Ohio Administrative Code as that chapter	306
existed on the effective date of this sectionSeptember 13, 2010,	307
in no event may the incumbent local exchange carrier, during the	308
twelve-month period that begins on the effective date of this	309
section, and during any subsequent twelve-month period that begins	310
on September 13 of any year, alter the carrier's rates for basic	311
local exchange service upward for the exchange area by more than	312
the amount described in division (C)(1)(b) of this section.	313

(3)(a) If the commission has not made a prior determination	314
that the exchange area qualified for alternative regulation of	315
basic local exchange service under Chapter 4901:1-4 of the Ohio	316
Administrative Code as that chapter existed on the effective date	317
of this sectionSeptember 13, 2010, an incumbent local exchange	318
carrier may not alter its rates for basic local exchange service	319
upward for that exchange area unless the carrier first applies to	320
the commission and the commission determines that the application	321
demonstrates that two or more alternative providers offer, in the	322
exchange area, competing service to the basic local exchange	323
service offered by an incumbent local exchange carrier in the	324
exchange area, regardless of the technology and facilities used by	325
the alternative provider, the alternative provider's location, and	326
the extent of the alternative provider's service area within the	327
exchange area. An alternative provider includes a telephone	328
company, including a wireless service provider, a	329
telecommunications carrier, and a provider of internet	330
protocol-enabled services, including voice over internet protocol.	331

(b) Upon the filing of an application under division	332
(C)(3)(a) of this section, the commission shall be deemed to have	333
found that the application meets the requirements of that division	334
unless the commission, within thirty days after the filing of the	335
application, issues an order finding that the requirements have	336
not been met.	337

(c) In no event may an incumbent local exchange carrier that	338
applies to the commission under division (C)(3)(a) of this	339
section, during the twelve-month period that begins on the	340
thirty-first day after the company files the application, and	341
during any subsequent twelve-month period, alter the carrier's	342
rates for basic local exchange service upward for the exchange	343
area to which the application applies by more than the amount	344
described in division (C)(1)(b) of this section.	345

(4) In no event may an incumbent local exchange carrier,	346
before January 1, 2012, alter the carrier's rates for basic local	347
exchange service upward for a customer receiving lifeline service	348
under section 4927.13 of the Revised CodeDivisions (C)(1) and	349
(2), and division (C)(3)(c) of this section shall be applied	350
separately to business and residential classes of service. Under	351
those divisions, an incumbent local exchange carrier may alter	352
rates for basic local exchange service upward multiple times in	353
the same exchange area during a single twelve-month period	354
described in those divisions, as long as the total amount of the	355
upward alterations does not exceed the authorized amount described	356
in those divisions.	357

(D) Except as provided in division (E) of this section, no	358
banking of upward rate alterations made under division (B) of this	359
section is permitted.	360

(E) At any time and upon not less than thirty days' notice to	361
the commission and to affected customers, an incumbent local	362
exchange carrier owned and operated exclusively by and solely for	363
its customers may alter its rates for basic local exchange service	364
by any amount.	365

(F) The rates, terms, and conditions for basic local exchange	366
service and for installation and reconnection fees for basic local	367
exchange service shall be tariffed in the manner prescribed by	368
rule adopted by the commission.	369

Section 2.  That existing sections 4927.07, 4927.08, 4927.11,	370
and 4927.12 of the Revised Code are hereby repealed.	371

Section 3.  Not later than one hundred twenty days after the	372
effective date of this act, the Public Utilities Commission shall	373
amend its rules to the extent necessary to bring them into	374
conformity with this act.	375