PRINTER'S NO.
2134
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL No. 1669
Session of 2003
INTRODUCED BY FEESE, McCALL, DeWEESE, BUNT, ALLEN, ARMSTRONG, BAKER, BALDWIN, BASTIAN, BEBKO-JONES, BELFANTI, BENNINGHOFF, BOYD, BROWNE, BUXTON, CALTAGIRONE, CAPPELLI, CAUSER, CLYMER, COHEN, COLEMAN, CORNELL, COSTA, CRAHALLA, CREIGHTON, CRUZ, DAILEY, DALEY, DENLINGER, DERMODY, DIVEN, EACHUS, EGOLF, J. EVANS, FAIRCHILD, FICHTER, FLEAGLE, FORCIER, FRANKEL, GABIG, GERGELY, GINGRICH, GOODMAN, GORDNER, GRUCELA, HALUSKA, HANNA, HARHART, HARPER, HARRIS, HASAY, HERMAN, HERSHEY, HESS, HICKERNELL, HORSEY, HUTCHINSON, LAUGHLIN, LEH, LEWIS, LYNCH, MACKERETH, MAHER, MAITLAND, MAJOR, MARSICO, McILHATTAN, McNAUGHTON, R. MILLER, S. MILLER, MUNDY, NICKOL, O'NEILL, PALLONE, PAYNE, PHILLIPS, PICKETT, PISTELLA, REED, ROBERTS, ROONEY, ROSS, SAINATO, SATHER, SAYLOR, SCAVELLO, SCHRODER, SHANER, B. SMITH, STERN, STETLER, R. STEVENSON, T. STEVENSON, SURRA, TANGRETTI, E. Z. TAYLOR, J. TAYLOR, TIGUE, TRAVAGLIO, TRUE, VEON, WANSACZ, WASHINGTON, WATSON, WEBER, WILT, WOJNAROSKI, YOUNGBLOOD AND ZUG, JUNE 23, 2003 REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 23, 2003
AN ACT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, providing for telecommunications competition and universal broadband deployment; further providing for definitions; creating the Information Highway Development Board; providing for alternative form of regulation of incumbent local exchange telecommunications companies; providing for incumbent local exchange carrier obligations, for competitive safeguards, for compliance with requirements and penalties and for Lifeline and Link Up service discounts; enhancing the deployment of advanced broadband telecommunications technology to all geographic areas of this Commonwealth by promoting robust and irreversible competition between a wide variety of service providers on equal and nondiscriminatory terms and conditions and by providing a funding mechanism to assist in universal broadband deployment. The General Assembly of the Commonwealth of Pennsylvania
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hereby enacts as follows: Section 1.
The heading of Chapter 30 of Title 66 of the
Pennsylvania Consolidated Statutes is amended to read:
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CHAPTER 30
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[ALTERNATIVE FORM OF REGULATION OF TELECOMMUNICATIONS
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SERVICES]
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______________________________________________________ TELECOMMUNICATIONS COMPETITION AND UNIVERSAL BROADBAND
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DEPLOYMENT __________
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Section 2.
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read:
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§ 3001.
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Sections 3001 and 3002 of Title 66 are amended to
Declaration of policy.
The General Assembly finds and declares that it is the policy of this Commonwealth to:
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(1)
Maintain universal telecommunications service at
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affordable rates while encouraging the accelerated deployment
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of a universally available, state-of-the-art, interactive,
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public-switched broadband telecommunications network in
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rural, suburban and urban areas, including deployment of
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broadband facilities in or adjacent to the public rights-of-
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way abutting public schools, including the administrative
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offices supporting public schools; industrial parks; and
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health care facilities, as defined in the act of July 19,
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1979 (P.L.130, No.48), known as the Health Care Facilities
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Act.
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(2)
Ensure that customers pay only reasonable charges
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for local exchange telecommunications services which shall be
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available on a nondiscriminatory basis.
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(3)
Ensure that rates for noncompetitive
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telecommunications services do not subsidize or __________ support the
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competitive ventures of providers of telecommunications
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services[.] and _________________________________________________ do not impede the development of competition. ____________________________________________________ (3.1) Ensure the maintenance of universal telephone
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______________________________________________________ service at affordable rates and ensure that low-income
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_______________________________________________________ individuals are able to connect to and maintain in-home
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____________________________________________________________ access to protected telephone services. Increased enrollment
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______________________________________________________ of eligible customers in Lifeline and Link Up services
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_________________________________________________________ provided through the Federal Universal Service Fund (USF)
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__________________________________________________________ will provide eligible customers with more affordable rates
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___________________________________ and will promote universal service.
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(4)
Provide diversity in the supply of existing and
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future telecommunications services and products in
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telecommunications markets throughout this Commonwealth by
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ensuring that rates, terms and conditions for noncompetitive
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services, including access services and _________________ basic service
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_________ are reasonable and do not impede the development functions,
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of competition.
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(5)
Ensure the efficient delivery of technological
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advances and new services throughout this Commonwealth in
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order to improve the quality of life for all
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Pennsylvanians[.] finding _____________ that:
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(i) ___________________________________ Universal access to high speed
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____________________________________________________ telecommunications services is becoming increasingly
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_______________________________________________________ important for full participation in America's economic,
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__________________________ political and social life.
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(ii) ___________________________________ Reasonably priced, high speed
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______________________________________________________ telecommunications service is a key competitive factor
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_______________________________________________________ for economic development and quality of life in the new
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__________________________________ economy of the global marketplace.
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(iii) __________________________________________________ Universal high speed access to the Internet ___________________________________________________ and other telecommunications services at reasonable
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________________________________________________ prices is a necessity for business transactions,
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________________________________________________________ education and training, health care, government services
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___________________________ and the democratic process.
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(iv) ___________________________________________________ Lack of high speed access to the Internet and
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_________________________________________________________ other telecommunications services is likely to deepen and
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________________________________________________________ reinforce undesirable social and economic divisions that
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_____________________ exist in our society.
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(v) _________________________________________________ The availability of high speed access to the
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________________________________________________________ Internet and other telecommunications services should be
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________________________________________________________ encouraged on a technology-neutral basis and in a manner
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_________________________________________________________ that promotes the most cost-effective means of high speed
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_______ access.
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(6)
Encourage the provision of telecommunications
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products and services that enhance the quality of life of
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people with disabilities.
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(7)
Promote and encourage the [provisions] provision _________ of
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[competitive] telecommunications __________________ services by a variety of
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service providers on equal terms and ______________ conditions throughout
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all geographic areas of this Commonwealth.
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(8)
Encourage the competitive supply of any service in
any region where there is market demand. (9)
Encourage joint ventures between local exchange
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telecommunications companies and other entities where such
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joint ventures accelerate[, improve or otherwise assist a
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local exchange telecommunications company in carrying out its
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network modernization implementation plan.] network _______
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____________________________________________________________ modernization or the delivery of competitive alternatives to
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_________________________ consumers and businesses.
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_____________________________________________________ (10) Ensure that any subsidies maintained to provide ________________________________________________________ telecommunications services to residential or low-income
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_____________________________________________________________ customers or to customers in rural or high-cost areas, or for
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_____________________________________________________________ any other purpose, are explicitly identified and collected in
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________________________________________________________ a manner that is nondiscriminatory to both customers and
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____________________________ telecommunications carriers.
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§ 3002.
Definitions.
The following words and phrases when used in this chapter
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shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
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["Aggregator telephone."
A telephone which is made available
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to the transient public, customers or patrons, including, but
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not limited to, coin telephones, credit card telephones and
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telephones located in hotels, motels, hospitals and
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universities.]
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"Alternative form of regulation."
A form of regulation of
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telecommunications services other than the traditional rate
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base/rate of return regulation, to be determined by the
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commission. The term includes the use of any index, formula,
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rate stability plan[, zone of rate freedom or] or _______________ zone of rate
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____________________________ freedom. The term includes a streamlined form of rate
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regulation.
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_______________________________________________________ "Authority." The Pennsylvania Broadband Infrastructure
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_______________________________________________________________ Authority established in section 3002.1 (relating to high speed
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_____________________________________________ access and universal broadband availability).
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___________________________________________________________ "Basic local service charge." The rates charged by a local
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___________________________________________________________ exchange telecommunications company for local service which
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_________________________________________________________ provides the necessary dial tone to place local calls and
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_____________________________________________________________ unlimited usage within a local calling area. The charge shall
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___________________________________________ include the Federal subscriber line charge.
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__________________________________________________________ "Basic residential telephone service." The provision of a
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_____________________________________________________________ connection between the end user customer and a local exchange
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_______________________________________________________________ telecommunications company switch, dial tone necessary to place
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__________________________________________________________ local calls, touch tone service and unlimited local usage.
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"Basic service functions."
[Those basic components of the
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local exchange carrier network which are necessary to provide a
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telecommunications service and which represent the smallest
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feasible level of unbundling capable of being tariffed and
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offered as a service.] The _________________________________________ network and related components of the
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________________________________________________________ incumbent local exchange carrier network used to provide
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______________________________________________________________ telecommunications services, including features, functions and
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____________________________________________________________ capabilities and including any high speed or Internet access
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_______________________________________________________________ service. These components will be offered on an unbundled basis
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__________________________________________________________ or in any technically feasible combination. The term shall
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_____________________________________________________ include, but not be limited to, the following network
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___________ components:
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_________________ (1) Inside wire.
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_______________________________ (2) Network interface devices.
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_________________________________________ (3) Loops, including fiber/copper loops.
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__________________ (4) Line sharing.
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____________________ (5) Line splitting.
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________________ (6) Dark fiber.
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_______________ (7) Switching.
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_________________________________________ (8) Interoffice transmission facilities.
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________________________ (9) Signaling networks.
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_____________________________ (10) Call related databases.
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________________________________ (11) Operation support systems.
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______________________________________________________ (12) Any other network component so identified by the
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___________ commission.
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"Broadband."
A communication channel using any technology
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and having a bandwidth equal to or greater than 1.544 megabits
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per second[.] in ____________________________________________ both directions. The channel will deliver
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_______________________________________________________________ always on access, at work, at home or on the move provided by a
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___________________________________________________________ range of technologies, including, but not limited to, fixed
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_____________________________________________________________ line, wireless and satellite technologies, which will provide
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_______________________________________________________________ access to progressively higher bandwidths capable of supporting
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________________________________________________________________ genuinely new and innovative interactive content, including, but
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_________________________________________________________ not limited to, data, video and/or voice services and the
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_________________________________________________ delivery of enhanced public and private services.
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"Competitive service."
A service or business activity
determined to be competitive under this chapter or any
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telecommunications service determined by the commission to be
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competitive under this chapter.
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____________________________________________________ "Demand aggregation programs." Programs designed to
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________________________________________________________________ aggregate the demand for access to high speed telecommunications
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_______________________________________________________ and Internet service in order to serve this demand more
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______________________________________________________________ economically, and that are designed to educate end users about
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______________________________________________________ the availability and uses of high speed access. Demand
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____________________________________________________________ aggregation programs are encouraged to include a wide cross-
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_____________________________________________________________ section of end-user categories, including both not-for-profit
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_________________________________________________________ and for-profit entities, such as residential, commercial,
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________________________________________________________ governmental, civic, community-based and other nonprofit
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______________________________________________________ organizations, hospitals and other medical facilities,
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_______________________________________________________ elementary and secondary public and private schools and
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_________________________________ institutions of higher education.
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____________________________________________________________ "Eligible telecommunications carrier." A carrier designated
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__________________________________________________________ by the commission pursuant to 47 CFR § 54.201 (relating to
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_______________________________________________________________ definition of eligible telecommunications carriers, generally),
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_________________________________________________________ as eligible to receive support from the Federal Universal
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_____________ Service Fund.
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_________________________________________________________ "Eligible telecommunications customer." A customer of an
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______________________________________________________________ eligible telecommunications carrier who qualifies for Lifeline
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_______________________________________________________________ or Link Up service discounts pursuant to the requirements of 47
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_______________________________________________________________ CFR §§ 54.409 (relating to consumer qualification for Lifeline)
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___________________________________________________________ or 54.415 (relating to consumer qualification for Link Up).
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_____________________________________________________________ "High speed access infrastructure." The facilities and other
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__________________________________________________________ investment that is required in order to provide high speed
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___________________________ telecommunications service.
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_________________________________________________________ "High speed access training programs." Programs that are
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______________________________________________________________ devoted to disseminating information and providing training to
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___________________________________________________________ consumers about the availability, uses and benefits of high
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_____________________ speed access service. ________________________________________________________ "High speed telecommunications service." The term shall
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_____________________________________________________ include any service that carries voice, data or video
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_______________________________________________________________ information at a speed of 200 kilobits per second or greater in
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________________________________________________________________ both inbound and outbound directions. Such services may include,
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___________________________________________________________ but shall not be limited to, digital subscriber line, cable
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____________________________ modem and wireless services.
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_________________________________________________________ "Incumbent local exchange telecommunications company." A
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_______________________________________________________________ carrier and its successors, assigns and subsidiaries authorized
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______________________________________________________________ by the commission to provide local telecommunications services
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______________________ prior to July 8, 1993.
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"Interexchange telecommunications [carrier."
A carrier other
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than a local exchange telecommunications company authorized by
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the commission to provide long-distance telecommunications
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services.] service." _____________________________________________________ A telecommunications service under which a
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______________________________________________________________ message originates in one local calling area and terminates in
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___________________________ another local calling area.
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_____________________________________________________________ "Lifeline service." A discounted rate local service offering
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_______________________________________________________________ as set forth in 47 CFR § 54.401 (relating to Lifeline defined).
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__________________________________________________________ "Link Up service." A discount program for qualifying low-
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___________________________________________________________ income consumers to reduce the cost of commencing telephone
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____________________________________________________________ service as set forth in 47 CFR § 54.411 (relating to Link Up
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_________________ program defined).
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"Local exchange telecommunications company."
A carrier
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authorized by the commission to provide local telecommunications
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services.
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"Noncompetitive service."
The term includes any protected
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telephone service as defined under this chapter or a service
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that has been determined by the commission as not a competitive
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service.
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["Optional calling plan."
A discount toll plan required by
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the commission to be offered by either a local exchange carrier
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or an interexchange carrier when justified by call usage for a
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telephone route. The provision of service under an optional
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calling plan shall be considered noncompetitive service unless
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determined otherwise by the commission.]
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___________________________________________________________ "Planning activities." Activities that may be necessary in
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____________________________________________________ order for an applicant to submit a high speed access
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_______________________________________________________ infrastructure grant application to the authority. Such
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___________________________________________________________ activities include, but are not limited to, development and
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_______________________________________________________________ implementation of a demand aggregation program; the performance
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_____________________________________________________________ of a study to determine the most economical means of bringing
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_________________________________________________________ high speed telecommunications services to rural and other
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______________________________________________________________ underserved populations; and, the development of a request for
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_______________________________________________________________ proposal to solicit bids from service providers to install, own
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_________________________________________________________ and operate high speed access infrastructure to serve the
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_______________________________________________ participants in the demand aggregation program.
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"Protected telephone service."
The term includes the
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following telecommunications services provided by a local
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exchange telecommunications company, unless the commission
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determines, after notice and hearing, that the service is
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competitive: (1)
Telecommunications service provided to business or
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residential consumers that is necessary for completing a
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local exchange call.
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(2)
Touch-tone service.
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(3)
Switched-access service.
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(4)
Special-access service.
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(5)
Ordering, installation, restoration and
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disconnection of these services. _____________________________ (6) Basic service functions. _____________________________________________________________ "Rural and underserved populations." Communities, geographic
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_______________________________________________________________ areas and groups of telecommunications end-users throughout the
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______________________________________________________________ Commonwealth that lack access to high speed telecommunications
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____________________________________________________ services at reasonable quality or affordable prices.
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"Special-access service."
Service provided over dedicated,
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nonswitched facilities by local exchange telecommunications
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companies to interexchange carriers or other large volume users
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which provide connection between an interexchange carrier or
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private network and a customer's premises.
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["Streamlined form of rate regulation."
A simplified method
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of rate regulation of small local exchange telecommunications
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companies serving less than 50,000 access lines which utilizes a
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methodology other than traditional rate base/rate of return
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regulation and procedures other than those provided in Chapter
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13 (relating to rates and rate making). Forms of simplified
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regulation may include, but are not limited to, the use of an
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index, formula, rate stability plan, zone of rate freedom or
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other abbreviated ratemaking procedures.]
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"Switched-access service."
A service which provides for the
use of common terminating, switching and trunking facilities of
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a local exchange telecommunications company's public switched
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network ____________________________________________________ in order to provide interexchange telecommunications
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________ The term includes, but is not limited to, the rates services.
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for local switching, common and dedicated transport and the
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carrier common line charge[.] and __________________________________ other non-usage based charges.
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"Telecommunications service."
A utility service, involving
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the transmission of messages[, which is subject to this title.]
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_______________________________ to the public for compensation.
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"Universal broadband availability."
Access to broadband
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service by each bona fide telephone customer [of a local
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exchange telecommunications company within five] within ____________ three
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days after a request for broadband service is received by any
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telecommunications company.
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_____________________________________________________________ "Universal service benchmark." The benchmark for determining
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___________________________________________________________ universal service funding under section 3003(b). In no case
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________________________________________________________________ shall the commission establish a benchmark which exceeds $25 per
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___________________________________________ month, including all applicable surcharges.
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Section 3.
Title 66 is amended by adding a section to read:
____________________________________________________ § 3002.1. High speed access and universal broadband _____________ availability. ____________________________________________________________ (a) Pennsylvania Broadband Infrastructure Authority.--There
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________________________________________________________ is hereby established a body corporate and politic, with
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_______________________________________________________________ corporate succession, to be known as the Pennsylvania Broadband
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_________________________ Infrastructure Authority.
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___________________________________________________________ (b) Board of directors.--The authority shall consist of an
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_______________________________________________________ 18-member board of directors composed of the following:
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__________________ (1) The Governor.
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_____________________________________ (2) The Secretary of Administration.
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_________________________________________________________ (3) The Secretary of Community and Economic Development.
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____________________________________________________ (4) The Chairman of the Pennsylvania Public Utility
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___________ Commission.
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_______________________________________ (5) The Secretary of General Services.
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_________________________________ (6) The Secretary of the Budget.
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__________________________________________________ (7) Two Senators, one each to be appointed by the
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___________________________________________________________ President pro tempore of the Senate and the Minority Leader
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______________ of the Senate.
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_____________________________________________________ (8) Two members of the House of Representatives, one
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___________________________________________________ each to be appointed by the Speaker of the House of
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_______________________________________________________ Representatives and the Minority Leader of the House of
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________________ Representatives.
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___________________________ (9) The Consumer Advocate.
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__________________________________ (10) The Small Business Advocate.
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_________________________________________________________ (11) Six persons to be appointed by the Governor, one of
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___________________________________________________________ whom shall be a representative of rural communities; one of
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_____________________________________________________________ whom shall be a representative of the general public interest
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_________________________________________________________ of all citizens; one of whom shall be a representative of
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__________________________________________________ local government interests; one of whom shall be a
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_____________________________________________________________ representative of economic development interests; one of whom
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____________________________________________________________ shall be a representative of education interests; and one of
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____________________________________________________________ whom shall be a representative of health care interests. The
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____________________________________________________________ six members appointed by the Governor shall serve for a term
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_____________________________________________________ of two years and shall be eligible for reappointment.
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____________________________________________________________ (c) Officers.--The Governor shall be the chairman and chief
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_______________________________________________________ executive officer of the authority and the Secretary of
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__________________________________________________________ Community and Economic Development shall serve as the vice
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_____________________________________________________________ chairman of the authority. The board shall select a secretary
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________________________________________________________________ and treasurer who need not be members of the board, and the same
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________________________________________________________________ person may be selected to serve as both secretary and treasurer.
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__________________________________________________________ (d) Powers of the authority.--The powers of the authority
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_____________________________________________________________ shall be vested in the board in office from time to time, and
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__________________________________________________________ nine members of the board shall constitute a quorum at any
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________________________________________________________________ meeting. Action may be taken and motions and resolutions adopted
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__________________________________________________________ by the authority by the affirmative vote of at least eight
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______________________________________________________________ members of the board. No vacancy on the board shall impair the
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_____________________________________________________________ right of a quorum of the members of the board to exercise the
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_______________________________________________ powers and perform the duties of the authority.
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__________________________________________________________ (e) Designation.--Each public officer member of the board
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___________________________________________________________ may designate an officer or employee of the Commonwealth to
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_________________________________________________________ represent him at meetings of the board. Each designee may
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______________________________________________________________ lawfully vote and otherwise act on behalf of the member of the
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___________________________________________________________ board for whom he constitutes the designee. The designation
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________________________________________________________ shall be in writing delivered to the authority and shall
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________________________________________________________________ continue in effect until revoked or amended in writing delivered
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_________________ to the authority.
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__________________________________________________________ (f) Services.--Research, investigation and other services
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_____________________________________________________________ necessary for the operation of the board shall be carried out
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__________________________________________________________ from resources and by employees from the various executive
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____________________________________________________ departments represented on the board. All applicable
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_______________________________________________________________ Commonwealth departments and agencies shall cooperate with, and
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_______________________________________________________________ provide assistance to, the board, which may, at its discretion,
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________________________________ provide financial reimbursement.
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_________________________________________________________ (g) Dissolution.--The authority may be dissolved by law,
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_______________________________________________________ provided that the authority has no debts or obligations
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______________________________________________________________ outstanding or that provision has been made for the payment or
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______________________________________________________ retirement of all such debts and obligations. Upon any
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_______________________________________________________________ dissolution of the authority, all property, funds and assets of
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__________________________________________________ the authority shall be vested in the Commonwealth.
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___________________________________________________________ (h) Inventory of high speed telecommunications services.--
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____________________________________________________________ Within six months of the effective date of this section, the
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________________________________________________________________ authority shall establish a publicly available inventory of high
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______________________________________________________________ speed telecommunications services throughout this Commonwealth
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______________________________ consistent with the following:
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________________________________________________________ (1) All service providers, regardless of the technology
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_____________________________________________ that they use to provide access to high speed
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___________________________________________________________ telecommunications and/or Internet service, that offer high
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_____________________________________________________________ speed telecommunications services in this Commonwealth, shall
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_____________________________________________________________ submit to the authority a detailed inventory of all locations
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_____________________________________________________________ within this Commonwealth in which they offer such services or
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__________________________________________________________ in which they have publicly announced that they will offer
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__________________________________________________________ those services. This inventory shall identify the type and
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_______________________________________________________ speed of the service offered and shall be provided with
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___________________________________________________________ sufficient geographic specificity as to permit members of a
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___________________________________________________________ particular community to know what services are available or
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________________________________________________________ will soon be available in their community. The authority
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_____________________________________________________________ shall compile the information from all providers and submit a
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____________________________________________________________ report to the Governor and the General Assembly that reports
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___________________________________________ and analyzes the availability of high speed
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_________________________________________________________ telecommunications services throughout this Commonwealth.
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____________________________________________________________ This report shall be made available to the public in written
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___________________________________________________ form and on a publicly accessible Internet website.
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_______________________________________________________ (2) The inventory shall be updated on an annual basis.
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_________________________________________________________ The authority may promulgate regulations pursuant to this
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_____________________________________________________________ section in order to implement standard reporting requirements
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_____________________________________________________ and to ensure protection of sensitive information for
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___________________________ homeland security purposes.
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____________________________________________ (i) Statewide plan for high speed access to
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________________________________________________________________ telecommunications services.--The authority shall develop a plan
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___________________________________________________________ to ensure that universal broadband availability is provided
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__________________________________________________________ ubiquitously throughout this Commonwealth by no later than
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_______________________________________________________________ December 31, 2008. The authority shall complete and publish the
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____________________________________________________________ plan within 12 months of the effective date of this section.
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___________________________________________________ (1) The Statewide plan shall focus on implementing
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_______________________________________________________ universal broadband availability in those areas of this
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______________________________________________________ Commonwealth that are unserved or underserved and lack
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____________________________________________________________ sufficient access. The authority shall rely on the inventory
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___________________________________________________________ of high speed telecommunications services to identify those
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_______________________________________________________ areas of this Commonwealth that lack sufficient access.
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____________________________________________________ (2) In developing its Statewide plan, the authority _________________________________________________________ shall take reasonable steps to ensure that all geographic
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____________________________________________________________ areas of this Commonwealth without sufficient access have an
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___________________________________________________________ equal opportunity to obtain the necessary financial support
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_________________________________________________ from the authority to achieve universal broadband
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_____________ availability.
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____________________________________________________________ (j) Revenues of authority.--The authority may receive money
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_____________________________________________________________ from sources of revenue, including, but not limited to, State
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_______________________________________________________________ funds appropriated to the authority, Federal funds appropriated
17
______________________________________________________ to or granted to the authority, interest earned on the
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_______________________________________________________________ investments of authority moneys, contributions from assessments
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______________________________________________________ on providers of intrastate telecommunications services
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______________________________________________________________ authorized under subsection (s), and proceeds from the sale of
21
_________________ authority assets.
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___________________________________________________________ (k) Board control.--The board shall have exclusive control
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_______________________________________________________________ and management of all moneys of the authority and full power to
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________________________________________________________________ invest money not required for immediate use in any securities or
25
________________________________________________________ other investments in which funds of the Commonwealth are
26
______________________________________________________________ authorized to be invested and in any other type of security or
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____________________________________________________________ investment if, prior to the acquisition of the securities or
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______________________________________________________________ investments, the board determines by resolution that such type
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_________________________________________________________ of security or investment is in the best interests of the
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__________________________________________________________ authority and the State Treasurer approves of such type of
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_____________________________ security or other investment. _____________________________________________________________ (l) Board general fund.--The board shall establish a general
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____________________________________________________________ fund from which it may authorize expenditures for any of the
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_______________________________________________________ purposes of this act. The board may also establish such
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________________________________________________________ nonrevolving funds and accounts as it deems necessary or
6
______________________________________________________________ convenient. Any funds from sources specified in subsection (j)
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__________________________________________________________ which are not deposited in the board's revolving funds and
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_____________________________________________________________ accounts shall be deposited into these nonrevolving funds and
9
_________ accounts.
10
__________________________________________________________ (m) Board investments.--The board shall invest 10% of the
11
__________________________________________________________ annual assessments collected pursuant to subsection (t) in
12
____________________________________________________________ authorized investments or securities in order to ensure that
13
________________________________________________________ sufficient funds are available to support future project
14
_____________ applications.
15
_________________________________________________________ (n) Powers and duties of authority.--The authority shall
16
____________________________________________________________ have and may exercise all powers necessary or appropriate to
17
_____________________________________________________________ carry out and effectuate the purposes of this act, including,
18
__________________________________ but not limited to, the following:
19
_____________________________________________________ (1) Conduct examinations and investigations and take
20
_____________________________________________________________ testimony, under oath or affirmation, on any matter necessary
21
__________________________________________________________ to the determination and approval of project applications.
22
___________________________________________________ (2) Adopt, use and alter at will a corporate seal.
23
_________________________________________________________ (3) Make bylaws for the management and regulation of its
24
_________________________________________________________ affairs, and make, and from time to time adopt, amend and
25
_________________________________________________________ repeal rules and regulations governing the administrative
26
_________________________________________________________ procedures and business of the authority. Notwithstanding
27
_______________________________________________________ this requirement, and in order to facilitate the speedy
28
________________________________________________________ implementation of this program, the board shall have the
29
___________________________________________________________ power and authority to promulgate, adopt and use guidelines
30
__________________________________________________________ which shall be published in the Pennsylvania Bulletin. The
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1
_________________________________________________________ guidelines shall be subject to review pursuant to section
2
________________________________________________________ 204(b) of the act of October 15, 1980 (P.L.950, No.164),
3
_________________________________________________________ known as the Commonwealth Attorneys Act, and shall not be
4
______________________________________________________ subject to review pursuant to the act of June 25, 1982
5
__________________________________________________________ (P.L.633, No.181), known as the Regulatory Review Act, and
6
____________________________________________________________ shall be effective for a period not to exceed two years from
7
___________________________________________________________ the effective date of this act. After the expiration of the
8
_________________________________________________________ two-year period, all guidelines shall expire and shall be
9
__________________________________________________________ replaced by regulations which shall have been promulgated,
10 11
_________________________________________ adopted and published as provided by law. ________________________________________________________ (4) Make contracts of every name and nature and execute
12
___________________________________________________________ all instruments necessary or convenient for the carrying on
13
________________ of its business.
14 15 16
_________________________________________________________ (5) Accept grants from and enter into contracts or other _____________________________________________________ transactions with any Federal, State or local agency. __________________________________________________ (6) Take title by foreclosure or otherwise to any
17
___________________________________________________________ project or other property pledged, mortgaged, encumbered or
18
_________________________________________________________ otherwise available as security for a project financed in
19
________________________________________________________ whole or in part by the board, where such acquisition is
20
____________________________________________________________ necessary to protect the interests of the board with respect
21
___________________________________________________________ to a project; pay all costs arising out of such acquisition
22
__________________________________________________________ from moneys held in the trust fund; and sell, transfer and
23
____________________________________________________ convey all or any portion of any such project to any
24
___________________________________________________________ responsible buyer. The board may require a dedicated source
25
______________________________________________________ of revenue to be available for repayment of any grant.
26 27 28
_________________________________________________________ (7) Provide financial assistance, in the form of grants, _________________________________________________ for projects fulfilling the purposes of this act. _________________________________________________________ (8) Collect fees and charges relating to projects funded
29
_________________________________________________________ under this act, as the board determines to be reasonable,
30
_______________________________________________________ relating to activities undertaken in furtherance of the
20030H1669B2134
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1 2 3 4
_____________________ purposes of this act. ___________________________________________________ (9) Borrow money on a short-term basis in order to __________________________________ fulfill its duties under this act. _____________________________________________________ (10) Receive appropriations and apply for and accept
5
___________________________________________________________ grants, gifts, donations, bequests and settlements from any
6
_________________________ public or private source.
7
_____________________________________________ (11) Acquire, own, hold, construct, improve,
8
________________________________________________________ rehabilitate, renovate, operate, maintain, sell, assign,
9
__________________________________________________________ exchange, lease, mortgage or otherwise dispose of real and
10
____________________________________________________________ personal property or any interest therein in the exercise of
11
____________________________________________________________ its powers and the performance of its duties under this act.
12
______________________________________________________ (12) Procure insurance against any loss in connection
13
________________________________________________________ with its property and other assets and operations in any
14
____________________________________________________ amounts and from any insurers as it deems desirable.
15
_____________________________________________________ (13) Hire or contract for the services of attorneys,
16
_________________________________________________________ accountants and financial experts and any other advisors,
17
___________________________________________________________ consultants and agents as may be necessary in its judgment,
18
_________________________________________________________ subject to the requirement that the chairman shall ensure
19
___________________________________________________________ that minority-owned or minority-controlled firms shall have
20
____________________________________________________________ an opportunity to participate to a significant degree in the
21
______________________________________________________ provision of any contractual services purchased by the
22
__________ authority.
23
________________________________________________________ (14) To enter into contracts and to provide support and
24
_______________________________________________________ assistance to local governments, nonprofit entities and
25
___________________________________________________________ regional partnerships, in carrying out its duties and goals
26
___________________ under this chapter.
27 28 29 30
____________________________________________________ (15) To advertise and publicize the availability of ________________________________________________ grants from the authority to interested persons. ________________________________________________________ (16) Do any act necessary or convenient to the exercise ______________________________________________________ of the powers enumerated in this section or reasonably
20030H1669B2134
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1 2 3 4 5
__________________ implied therefrom. ______________________________________________________ (17) Prepare plans and reports and provide for public ____________________________________ participation as deemed appropriate. _________________________________________________________ (18) Fund prefeasibility studies from any of its sources ___________ of revenue.
6
_________________________________________________________ (19) Audit the books and records of any grant recipient,
7
_____________________________________________________________ and conduct site audits and examination of projects funded by
8
______________ the authority.
9
_______________________________________________ (20) Expend up to 5% of the funds collected in
10
_____________________________________________________________ accordance with subsection (j), subject to the prior approval
11
_____________________________________________________________ of the General Assembly, for operations and administration of
12
____________________________________________________________ the authority and the fulfillment of the authority's duties.
13
______________________________________________________ (o) Regional advisory committee.--The authority shall
14
_________________________________________________________ appoint a regional advisory committee consisting of seven
15
_______________________________________________________________ members. Each member shall be a representative of the following
16
____________________________________________________________ geographic areas of this Commonwealth: central Pennsylvania;
17
____________________________________________________________ greater Philadelphia; greater Pittsburgh; the Lehigh Valley;
18
_____________________________________________________________ Northeastern Pennsylvania; Northwestern Pennsylvania; and the
19
___________________ Susquehanna Valley.
20
_____________________________________________________ (1) The regional advisory committee shall review all
21
_______________________________________________________ applications for grants and make recommendations to the
22
_____________________________________________________________ authority concerning the approval of grants. The staff of the
23
____________________________________________________________ authority shall work with the regional advisory committee in
24
_______________________________________________________ the development of the committee's recommendations. The
25
_________________________________________________________ authority shall solicit the views of the committee in the
26
__________________________________________________________ development of guidelines and regulations authorized under
27
__________________ subsection (n)(3).
28
___________________________________________________ (2) The authority shall vote on the appointment of
29
___________________________________________ members of the regional advisory committee.
30
_______________________________________________________ (p) Applications for grants.--The authority shall make
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1
___________________________________________________________ available grants for planning activities; high speed access
2
_______________________________________________________________ training programs; and high speed access infrastructure grants.
3
_____________________________________________________ The authority shall prescribe the form and content of
4
_____________ applications.
5
_______________________________________________________ (1) Any economic development agency, local government,
6
__________________________________________________ not-for-profit organization or any other community
7
___________________________________________________________ organization deemed appropriate by the authority may submit
8
_________________________________________________________ an application for a grant. In the event that a qualified
9
__________________________________________________________ applicant cannot be identified or is not available, a for-
10
__________________________________________________________ profit entity, including, but not limited to, a high speed
11
__________________________________________________________ access service provider, may apply for a high speed access
12
_____________________ infrastructure grant.
13
________________________________________________________ (2) All service providers, regardless of the technology
14
_____________________________________________ that they use to provide access to high speed
15
___________________________________________________________ telecommunications and/or Internet service, are eligible to
16
__________________________________________________________ provide service to applicants that are awarded grants from
17
______________ the authority.
18
_________________________________________________ (3) The authority shall approve applications for
19
___________________________________________________________ planning activity grants that are submitted by an applicant
20
_________________________________________________ representing a geographic area that currently has
21
_____________________________________________________ insufficient high speed access. The application shall
22
_____________________________________________________ describe the type and nature of the proposed planning
23
___________________________________________________________ activity and the proposed cost of the planning activity. No
24
______________________________________________________ planning activity grant shall be approved in an amount
25
_____________________ greater than $25,000.
26
______________________________________________________ (4) The authority shall approve applications for high
27
_____________________________________________________ speed access training programs that promote and train
28
__________________________________________________________ individuals in the availability and benefits of high speed
29
_____________________________________________________________ access. The applicant must describe the subject matter of the
30
____________________________________________________ training; the proposed benefits of the training; the
20030H1669B2134
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1
___________________________________________________________ applicants' qualifications to conduct the training; and the
2
______________________________ target audience to be trained.
3 4
___________________________________________ (5) An application for a high speed access ____________________________________ infrastructure grant must show that:
5
(i) ____________________________________________________ The project will improve the quality of life or
6
_______________________________________________________ economic well-being of the people of this Commonwealth.
7
(ii) ___________________________________________________ The project will enable the provision of high
8
_______________________________________________________ speed access to telecommunications and Internet service
9
____________________________________________ to a geographic area that lacks such access.
10
(iii) _____________________________________________ The proposed project is the most cost-
11
_____________________________________________________ effective option in comparison to other alternatives.
12
(iv) ________________________________________________ The proposed project was selected after an
13
______________________________________________________ open, fair and technologically neutral and competitive
14
_______________________________________________________ bidding process of the proposed project was undertaken.
15
(v) ____________________________________________________ The service provider that is proposed to be the
16
___________________________________________ owner and operator of the high speed access
17
__________________________________________________ infrastructure is financially and technically fit.
18
(vi) __________________________________________________ The project is capable of being operated and
19
___________________________________________________ maintained on an ongoing basis on reasonably priced
20
________________ subscriber fees.
21
(vii) ___________________________________________ The project is supported by a demand
22
_______________________________________________________ aggregation program that reflects broad community-based
23
______________ participation.
24
(viii) ____________________________________________ The project is technically feasible.
25
(ix) ________________________________________________ The application is supported by a matching
26
_____________________________________________________ financial contribution that may be cash, in-kind or a
27
_______________________________________________ combination match from the applicant and/or the
28
_____________________________________________________ beneficiaries of the application. The authority shall
29
_________________________________________________________ prescribe the percentage amount of matching participation
30
____________________________________________ required of applicants for high speed access
20030H1669B2134
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1
______________________ infrastructure grants.
2
(x) ____________________________________________________ The application reflects a reasonable effort to
3
_______________________________________________________ maximize the procurement of available Federal grants to
4
______________________________________________ defray the costs of the project, including the
5
_____________________________ application for E-rate funds.
6 7
(xi) __________________________________________________ The project is scalable so that the size and _____________________________________________ scope of the project may be easily increased.
8 9
(xii) __________________________________________________ The project contains a sustainable business ________________________________________________________ plan that adequately addresses the operation, repair and
10
__________________________________________ network evolution of the high speed access
11
_______________ infrastructure.
12 13
(xiii) ____________________________________________________ The applicant has adequate resources to make ___________________________ effective use of the funds.
14
(xix) ________________________________________________ The applicant has a plan to advertise the
15
___________________________________________________ availability of the high speed service that will be
16
_______________________________________________________ available after the high speed access infrastructure is
17
__________ installed.
18
___________________________________________________________ (q) Authority action on grant applications.--The authority
19
_______________________________________________________ shall evaluate each project application and assign it a
20
______________________________________________________________ priority. In addition to any other requirements of Federal law
21
______________________________________________________________ imposed on the use of Federal funds, the board shall determine
22
______________________________________________________________ priorities based on factors which include, but are not limited
23
______________________________________________________________ to, benefits to the public interest; the needs of an impact of
24
_______________________________________________________________ the grant on community and economic development, elementary and
25
______________________________________________________________ secondary education, health care and the delivery of State and
26
____________________________________________________ local government services to members of the affected
27
_______________________________________________________________ communities; the cost-effectiveness of the grant; the number of
28
________________________________________________________ citizens that may benefit from the grant; in the case of
29
________________________________________________________________ infrastructure applications, the amount of the proposed matching
30
_______________________________________________________________ contribution; whether the application is supported by more than
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1
________________________________________________________ one local governmental unit; and all of the criteria for
2
_________________________________________ applications specified in subsection (p).
3
________________________________________________________ (1) The board shall approve those applications with the
4
_______________________________________________________ highest assigned priority to the extent that moneys are
5
_____________________________ available to fund the grants.
6
________________________________________________________ (2) If a public or private entity has established plans
7
_______________________________________________________ to install telecommunications infrastructure to provide
8
_____________________________________________________ access to high speed telecommunications services in a
9
____________________________________________________ designated geographic area for a designated group of
10
_____________________________________________________________ customers within the geographic area at affordable rates, the
11
____________________________________________________ public or private entity may submit a protest to the
12
____________________________________________________________ authority pertaining to any application grant. The authority
13
_________________________________________________________ shall consider any protest in determining whether a given
14
________________________________ protest satisfies paragraph (2).
15
_________________________________________________ (3) Upon receiving a protest, no grants shall be
16
__________________________________________________________ provided unless the authority finds that absent receipt of
17
___________________________________________________________ the grant, the geographic area encompassed within the scope
18
___________________________________________________________ of an application for a grant is unlikely to receive access
19
_____________________________________________________________ to high speed telecommunications services at affordable rates
20
___________________________________________________________ through the existing or planned competitive market within a
21
________________ reasonable time.
22
________________________________________________________ (4) Any service provider that is not an incumbent local
23
_____________________________________________________________ exchange telecommunications company that constructs, owns and
24
_________________________________________________________ operates high speed access infrastructure that was funded
25
_______________________________________________________ from a grant from the authority shall provide competing
26
_______________________________________________ service providers with access to and use of the
27
_____________________________________________________ infrastructure at cost-based prices. This open-access
28
__________________________________________________________ requirement may be waived where the project is designed to
29
__________________________________________________________ provide high speed telecommunications services, but is not
30
_____________________________________________________ designed to provide broadband services, and the board
20030H1669B2134
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1
___________________________________________________________ determines that meeting the open-access request will make a
2
__________________________________________________________ project technically or economically infeasible. Nothing in
3
____________________________________________________ this section shall diminish the responsibilities and
4
__________________________________________________________ obligations of incumbent local exchange telecommunications
5
_____________________________________________________________ companies to provide competing companies with access to basic
6
__________________ service functions.
7
____________________________________________________________ (r) Public access to information.--All applications, demand
8
_____________________________________________________________ aggregation programs and planning activities undertaken using
9
_______________________________________________________________ grants approved by the authority shall be public. The authority
10
_____________________________________________________________ shall publish the list of applications that are approved, and
11
_____________________________________________________________ shall maintain a publicly available list of service providers
12
_____________________________________________________ that are interested prospective bidders for broadband
13
________________________ infrastructure projects.
14
________________________________________________ (1) An applicant that receives a grant from the
15
___________________________________________________________ authority shall comply with the recordkeeping and reporting
16
___________________________________________ requirements that the authority prescribes.
17
______________________________________________________ (2) Service providers that construct, own and operate
18
____________________________________________________________ high speed access infrastructure that is funded from a grant
19
__________________________________________________ from the authority shall provide the authority all
20
______________________________________________________ telecommunications infrastructure data related to that
21
____________________________________________ project as the authority may prescribe. Such
22
_____________________________________________________________ telecommunications infrastructure data shall be made publicly
23
__________ available.
24
____________________________________________________________ (s) Reporting requirements of the authority.--The authority
25
________________________________________________________________ shall publish an annual report summarizing the activities of the
26
______________________________________________________________ authority and the grants approved during the past year and the
27
_______________________________________________________________ benefits achieved from the approved grants. These reports shall
28
______________________ be publicly available.
29
_____________________________________________________________ (t) Funding.--An assessment shall be made equal to 6% of the
30
________________________________________________________________ annual intrastate operating revenues of incumbent local exchange
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1
_______________________________________________________________ telecommunications companies that are subject to an alternative
2
______________________________________________________________ form of regulation under section 3003 and who serve 250,000 or
3
________________________________________________________________ more local access lines. An assessment shall be made equal to 2%
4
______________________________________________________________ of the annual intrastate operating revenues of incumbent local
5
____________________________________________________________ exchange telecommunications companies that are subject to an
6
_______________________________________________________________ alternative form of regulation under section 3003 and who serve
7
_____________________________________________________________ at least 50,000 but not more than 249,999 local access lines.
8 9
________________________________________________________ (1) Costs incurred by local exchange telecommunications _____________________________________________________________ companies pursuant to this section may not be included in the
10
_______________________________________________________ noncompetitive rates charged by such company unless the
11
______________________________________________________ company can show that, without such cost recovery, the
12
___________________________________________________________ company would not be allowed to earn a fair rate of return.
13
__________________________________________________________ In determining whether the company can earn a fair rate of
14
_______________________________________________________ return under this section the commission shall consider
15
____________________________________________________________ earnings received by the company from directory revenues and
16
____________________________________________________________ any other services that have been declared by the commission
17
____________________________________________________________ to be competitive under this chapter. The burden of proof in
18
__________________________________________ such a proceeding shall be on the company.
19
_____________________________________________________ (2) Contributions to the fund will continue until an
20
_____________________________________________________________ incumbent local exchange telecommunications company obtains a
21
________________________________________________________ determination by the commission that universal broadband
22
________________________________________________________ availability has been achieved in its service territory.
23
______________________________________________________ (3) The commission shall collect the funding for this
24
_____________________________________________ program and remit the funds to the authority.
25
Section 4.
26
read:
27
[§ 3003.
Sections 3003 and 3005 of Title 66 are amended to
Local exchange telecommunications company request for
28
alternative regulation and network modernization
29
implementation plan.
30
(a)
Petition.--When a local exchange telecommunications
20030H1669B2134
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1
company seeks to be regulated under an alternative form of
2
regulation, it shall submit to the commission a petition
3
requesting the alternative form of regulation. In the petition,
4
the company shall submit its proposal and supporting data for an
5
alternative form of regulation. The petition shall also identify
6
all competitive services which the local exchange
7
telecommunications company proposes at that time.
8 9 10 11
(b)
Network modernization implementation plan.--The petition
shall also include the company's network modernization implementation plan under which: (1)
Each local exchange telecommunications company shall
12
commit to universal broadband availability and shall commit
13
to converting 100% of its interoffice and distribution
14
telecommunications network to broadband capability by
15
December 31, 2015. The plan shall identify the local exchange
16
telecommunications company's present and projected deployment
17
of digital switches in central offices, fiber optic trunk
18
line capability between central offices, intelligent network
19
signaling capability and integrated services digital network
20
(ISDN) availability in central offices.
21
(2)
Each local exchange telecommunications company shall
22
reasonably balance deployment of its broadband network
23
between rural, urban and suburban areas within its service
24
territory.
25
(3)
The deployment of broadband facilities shall be in
26
or adjacent to public rights-of-way abutting public schools,
27
including the administrative offices supporting public
28
schools; industrial parks; and health care facilities, as
29
defined in the act of July 19, 1979 (P.L.130, No.48), known
30
as the Health Care Facilities Act.
20030H1669B2134
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1
(4)
A local exchange telecommunications company shall
2
file a network modernization implementation plan with its
3
petition for alternative form of regulation with the
4
commission which identifies and describes in detail the
5
company's implementation plan for complying with paragraphs
6
(1), (2) and (3). The plan shall specify interim target dates
7
at not more than five-year intervals for deployment of its
8
broadband network.
9
(5)
Joint ventures between local exchange
10
telecommunications companies and other entities may be
11
included as part of a local exchange telecommunications
12
company's network modernization implementation plan where the
13
joint ventures accelerate, improve or otherwise assist a
14
local exchange telecommunications company in carrying out its
15
network modernization implementation plan. The joint ventures
16
may be proposed by any interested party. Consistent with
17
parallel provisions in Federal antitrust statutes and Federal
18
judicial opinions interpreting those Federal statutes, no
19
joint ventures by public utilities or other entities engaged
20
in such joint ventures shall constitute a restraint of trade
21
or commerce in this Commonwealth.
22
(6)
The network modernization implementation plan shall
23
be updated and filed with the commission biennially. The
24
commission shall review and approve the plan updates as long
25
as the updates are found to be consistent with and in
26
furtherance of the local exchange telecommunications
27
company's currently effective implementation plan.
28
(c)
Filing.--The company shall file its petition, plan and
29
supporting data concurrently with the Office of Consumer
30
Advocate, the Office of Small Business Advocate and any
20030H1669B2134
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1
interexchange telecommunications carrier that has requested
2
notice of the filings from the local exchange telecommunications
3
company. At the same time, the company shall give notice to its
4
ratepayers through a billing insert or bill message, to its
5
employees and to the public of the filing of its petition for an
6
alternative form of regulation and network modernization
7
implementation plan in accordance with the commission's rules
8
and regulations.
9
(d)
Updating.--The commission shall require any local
10
exchange telecommunications company which has not filed a
11
petition and plan within five years of the effective date of
12
this chapter to show cause why it has not done so.]
13
__________________________________________________________ § 3003. Alternative form of regulation of incumbent local
14 15
exchange ______________________________________ telecommunications companies. ___________________________________________________________ (a) Alternative regulation maintained.--The commission may
16
_______________________________________________________ continue to regulate incumbent local exchange telephone
17
____________________________________________________________ companies under the alternative form of regulation in effect
18
_______________________________________________________________ prior to the effective date of this section. The commission may
19
_______________________________________________ modify or eliminate an incumbent local exchange
20
__________________________________________________ telecommunications company's network modernization
21
_____________________________________________________________ implementation plan in consideration of network modernization
22
__________________________________________________________ achieved through the Pennsylvania Broadband Infrastructure
23
______________________________________________________ Authority. In considering issues pertaining to network
24
________________________________________________________ modernization implementation plans, the commission shall
25
__________________________________________________________ consider installed and operational infrastructure deployed
26
______________________________________________________________ though a grant from the authority within the service territory
27
______________________________________________________________ of an incumbent local exchange telecommunications company as a
28
_____________________________________________________________ credit to that company's network modernization implementation
29
____________________________________________________________ plan. Every three years following the effective date of this
30
_________________________________________________________ section, the commission shall conduct an investigation to
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1
___________________________________________________________ determine if the definition of broadband as provided for in
2
_______________________________________________________________ section 3002 (relating to definitions) is appropriate and shall
3
____________________________________________________________ have authority to modify the definition, consistent with the
4
_________________________ investigation's findings.
5
_____________________________________________________________ (b) Universal service fund.--Within 60 days of the effective
6
____________________________________________________________ date of this section, the commission shall initiate a formal
7
______________________________________________________ investigation to implement a competitively neutral and
8
________________________________________________________________ nondiscriminatory universal service fund in order to ensure that
9
____________________________________________________________ residential telephone service is available at reasonable and
10
_____________________________________________________________ affordable prices, to promote competition in the rural, high-
11
___________________________________________________________ cost areas, to support automatic lifeline enrollment and to
12
______________________________________________________________ eliminate subsidies embedded in switched access service rates.
13
_____________________________________________________________ At the conclusion of the investigation, but no later than one
14
____________________________________________________________ year from the effective date of this section, the commission
15
____________________________________________________________ shall establish a universal service fund consistent with the
16
_____________________________ requirements of this section.
17
________________________________________________________ (1) The universal service fund shall provide support to
18
__________________________________________________________ eligible telecommunications carriers in an amount equal to
19
_____________________________________________________________ the difference between the cost of providing local service in
20
__________________________________________________________ a given serving area and a universal service benchmark, as
21
_____________________________________________________________ determined by the commission in its investigation. In no case
22
____________________________________________________________ shall the basic local service charge for residential service
23
____________________________________________________________ of an incumbent local exchange company, including applicable
24
___________________________________________________ surcharges, exceed the universal service benchmark.
25
______________________________________________________ (2) In addition, in its investigation, the commission
26
___________________________________________________________ shall also identify all implicit subsidy and support in the
27
_________________________________________________________ switched access service rates of incumbent local exchange
28
____________________________________________________________ telecommunications companies. The commission shall eliminate
29
_____________________________________________________________ and replace such implicit subsidies and support with explicit
30
______________________________________________________ universal service support through the operation of the
20030H1669B2134
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1
__________________________________________________________ universal service fund established under this section. All
2
____________________________________________________________ eligible telecommunications carriers shall contribute to any
3
_____________________________________________________________ such funding mechanism established by the Pennsylvania Public
4
____________________________________________________________ Utility Commission. All eligible telecommunications carriers
5
_______________________________________________________ shall qualify to receive support in a nondiscriminatory
6
________________________________________________________ manner from any such funding mechanism. In resolving and
7
___________________________________________________ implementing the results of this investigation, the
8
______________________________________________________ commission shall not cause an incumbent local exchange
9
_____________________________________________________________ telecommunications company to violate the limitation on basic
10
_____________________________________________________________ service rate increases provided for in this chapter. The plan
11
_________________________________________________________ adopted by the commission shall not be limited by section
12
___________________________________________________________ 3008 (relating to interexchange telecommunications service)
13
________________________________________________________ or any other provision of this title except as set forth
14
_______ herein.
15
____________________________________________________ (3) The fund shall be designed by the commission to
16
______________________________________________________ support the administrative implementation of automatic
17
____________________ lifeline enrollment.
18
___________________________________________________________ (c) Limitation on basic local service rate increases.--Any
19
_______________________________________________________________ local exchange telecommunications company that is subject to an
20
______________________________________________________________ alternative form of regulation under this chapter and has over
21
________________________________________________________________ 50,000 access lines in Pennsylvania may not, after the effective
22
__________________________________________________________ date of this section, increase the rates for any protected
23
_______________________________________________________________ service for any customer or class of customers in any year by a
24
_______________________________________________________________ greater percentage than the overall percentage increase allowed
25
_______________________________________________________________ under the alternative or streamlined form of regulation in that
26
_____ year.
27
§ 3005.
28
(a)
Competitive services. Identification of competitive service.--The commission
29
is authorized to determine, after notice and hearing, whether a
30
telecommunications service or other service or business activity
20030H1669B2134
- 30 -
1
offered by [a] an ____________ incumbent local exchange company is a
2
competitive service. [A] An ____________ incumbent local exchange
3
telecommunications company may petition the commission for a
4
determination of whether a telecommunications service or other
5
service or business activity offered is competitive[, either in
6
conjunction with a petition to be regulated under an alternative
7
form of regulation or at any time after the granting of the
8
petition]. Requests for a competitive classification [not filed
9
as part of a petition for an alternative regulatory framework]
10
shall have an effective date of not less than 60 days from the
11
filing date. The commission shall enter an order approving or
12
disapproving the petition within [180] 270 ___ days of the filing
13
date. In making the determination, the commission shall consider
14
all relevant evidence submitted to it, including evidence
15
presented by providers of competitive services. In a proceeding
16
to determine whether a telecommunications service or other
17
service or business activity offered is a competitive service,
18
the following shall apply:
19
(1)
The commission shall make findings which, at a
20
minimum, shall include evidence of ease of market entry,
21
including the existence and impact of cross-subsidization,
22
rights-of-way, pole attachments and unavoided costs; presence
23
and viability of other competitors, including market shares;
24
the ability of competitors to offer those services or other
25
activities at competitive prices, terms and conditions; the
26
availability of like or substitute services or other
27
activities in the relevant geographic area; the effect, if
28
any, on protected services; the overall impact of the
29
proposed regulatory changes on the continued availability of
30
existing services; whether the consumers of the service would
20030H1669B2134
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1
receive an identifiable benefit from the provision of the
2
service or other activity on a competitive basis; the degree
3
of regulation necessary to prevent abuses or discrimination
4
in the provision of the service or other activity and any
5
other relevant factors which are in the public interest. If
6
[a] ____________ an incumbent local exchange telecommunications company
7
introduces a telecommunications service or other service or
8
business activity that has not previously been offered, the
9
service or other activity will not be deemed competitive
10
unless it is so determined by the commission under the
11
provisions of this chapter.
12
(2)
The burden of proving that a telecommunications
13
service or other service or business activity offered is
14
competitive rests on the party seeking to have the service
15
classified as competitive.
16
(b)
Regulations.--The commission shall establish regulations
17
to prevent local exchange telecommunications companies from
18
engaging in unfair competition and require that local exchange
19
telecommunications companies provide reasonable
20
nondiscriminatory access to competitors for all services and
21
facilities necessary to provide competing services to consumers.
22
(c)
Reports.--The commission shall determine, by rule,
23
regulation or order, what reports are necessary to monitor the
24
accounting for and competitiveness of a competitive service.
25
(d)
Reclassification.--The commission shall have the
26
authority to reclassify a telecommunications service or other
27
service or business activity that it has previously found to be
28
competitive if, after notice and hearing, it determines, upon
29
application of the criteria set forth in this chapter, that
30
sufficient competition is no longer present, that the incumbent _________
20030H1669B2134
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1
local exchange company has engaged in unfair competition with
2
respect to the service or that the incumbent _________ local exchange
3
company has failed to provide nondiscriminatory access in the
4
provision of the service. If the commission finds that a
5
reclassification is necessary, the commission must determine
6
whether the rate for the telecommunications service or other
7
service or business activity is just and reasonable in
8
accordance with section 1301 (relating to rates to be just and
9
reasonable). If the telecommunications service or other service
10
or business activity subsequently becomes competitive, the
11
_________ local exchange telecommunications company shall incumbent
12
petition the commission to make a determination of
13
competitiveness for the service under the provisions of this
14
chapter.
15
(e)
Additional determinations.--The commission shall
16
determine whether incumbent _________ local exchange telecommunications
17
companies are complying with the following provisions:
18
(1)
The incumbent _________ local exchange telecommunications
19
company shall unbundle each basic service function on which
20
the competitive service depends and shall make the basic
21
service functions separately available to any customer under
22
nondiscriminatory tariffed terms and conditions, including
23
price, that are identical to those used by the local exchange
24
telecommunications company and its affiliates in providing
25
its competitive service.
26
(2)
The price which [a] an ____________ incumbent local exchange
27
telecommunications company charges for a competitive service
28
shall not be less than the rates charged to others for any
29
basic service functions used by the local exchange
30
telecommunications company or its affiliates to provide the
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1
competitive service on _______________________________________ a specific service offering basis or
2
_______________________________________________________ individual case contract basis, whichever is applicable.
3
Revenues from the rates for access services reflected in the
4
price of competitive services shall be included in the total
5
revenues produced by the noncompetitive services.
6
(3)
Tariffs or price lists for competitive services
7
filed with the commission shall either be in the public
8
records or, if the commission determines that the rates are
9
proprietary, be filed under seal and made available under the
10
terms of an appropriate protective agreement of the type used
11
in cases before the commission.
12
(f)
Service and notice.--At the time [a] an ____________ incumbent local
13
exchange telecommunications company files a petition for an
14
alternative form of regulation to classify any service or other
15
activity as competitive or to reclassify an existing service or
16
other activity as competitive or for the transfer of any assets
17
of services or other activities classified as competitive by the
18
commission, the incumbent _________ local exchange telecommunications
19
company shall serve a copy on all interexchange
20
telecommunications carriers who have requested notice of the
21
filings from the local exchange telecommunications company as
22
well as the Office of Consumer Advocate and the Office of Small
23
Business Advocate. At the same time, the local exchange
24
telecommunications company must give notice to the public, its
25
employees and its ratepayers through a billing insert or bill
26
message in accordance with the commission's rules and
27
regulations.
28
(g)
Prohibitions.--The incumbent _________ local exchange
29
telecommunications company shall be prohibited from engaging in
30
the following:
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1
(1)
The incumbent _________ local exchange telecommunications
2
company shall not maintain or impose any resale or sharing
3
restrictions on any service which the commission finds to be
4
competitive.
5
(2)
[A] An ____________ incumbent local exchange telecommunications
6
company may not use revenues earned or expenses incurred in
7
conjunction with noncompetitive services to subsidize or
8
support any competitive services. The commission shall
9
establish regulations which must be followed by incumbent _________
10
local exchange telecommunications companies for the purpose
11
of allocating costs for accounting and rate making among
12
telephone services in order to prevent subsidization or
13
support for competitive services.
14
[(h)
Subsidiary.--For local exchange telecommunications
15
companies serving over 1,000,000 access lines, the commission
16
may require that a competitive service be provided through a
17
subsidiary which is fully separated from the local exchange
18
telecommunications company if the commission finds that there is
19
a substantial possibility that the provision of the service on a
20
nonseparated basis will result in unfair competition.]
21 22 23
Section 5.
Title 66 is amended by adding a section to read:
________________________________________________________ § 3005.1. Incumbent local exchange carrier obligations. _____________________________________________________________ (a) General rule.--The commission shall establish access and
24
_______________________________________________________ interconnection obligations of incumbent local exchange
25
______________________________________________________________ telecommunications companies as part of an alternative form of
26
_____________________________________________________________ regulation which is consistent with this chapter and promotes
27
__________________________________________________________ full competition in this Commonwealth's telecommunications
28
_______________________________________________________________ markets. In addition to any other obligation imposed under this
29
______________________________________________________________ title, incumbent local exchange telephone companies subject to
30
________________________________________________________________ regulation under an alternative regulation plan authorized under
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1
___________________________________________________________ section 3003 (relating to alternative form of regulation of
2
_______________________________________________________________ incumbent local exchange telecommunications companies) shall be
3
___________________________________________________________ subject to the additional obligations under subsections (b)
4
____________ through (j).
5
______________________________________________________ (b) Unrestricted access.--An incumbent local exchange
6
_______________________________________________________ telecommunications company shall provide any requesting
7
_____________________________________________________________ telecommunications carrier with interconnection, collocation,
8
_______________________________________________________________ basic service functions and access to operation support systems
9
__________________________________________________________ at just, reasonable and nondiscriminatory rates, terms and
10
_____________________________________________________________ conditions which rates, terms and conditions are found by the
11
______________________________________________________________ commission to enable the provision of any and all existing and
12
_____________________________________________________________ new telecommunication services within an exchange, including,
13
________________________________________________________________ but not limited to, local exchange and exchange access services.
14
_______________________________________________________________ The commission shall have full authority to establish the basic
15
__________________________________________________ service functions that an incumbent local exchange
16
______________________________________________ telecommunications company must provide to any
17
____________________________________________________________ telecommunications carrier. The commission shall require the
18
______________________________________________________________ incumbent local exchange telecommunications company to provide
19
_______________________________________________________________ interconnection, collocation and basic service functions in any
20
__________________________________________________________ manner technically feasible and without restriction to the
21
_______________________________________________________________ fullest extent possible to implement the maximum development of
22
___________________________________________________________ telecommunications services by a wide variety of providers,
23
_______________________________________________________________ including access to a combination of basic service functions in
24
________________________________ any technically feasible manner.
25
__________________________________________________ (c) Interconnection.--An incumbent local exchange
26
_______________________________________________________________ telecommunications company shall provide for the facilities and
27
________________________________________________________ equipment of any requesting telecommunications carrier's
28
_________________________________________________ interconnection with the incumbent local exchange
29
__________________________________________________________ telecommunications company network on just, reasonable and
30
_____________________________________________________ nondiscriminatory rates, terms and conditions for the
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1
____________________________________________________________ transmission and routing of local exchange, exchange access,
2
_______________________________________________________ including high speed telecommunications services at any
3
________________________________________________________________ technically feasible point within the telecommunications company
4
______________________________________________ network; however, the incumbent local exchange
5
_________________________________________________________ telecommunications company may not require the requesting
6
_____________________________________________________________ carrier to interconnect at more than one technically feasible
7
________________________________________________________________ point within a Local Access Transport Area (LATA). All rates for
8
______________________________________________________________ interconnection shall be based on incremental, forward-looking
9
______________________________________________________________ costs. The interconnection provided shall be at least equal in
10
___________________________________________________________ quality and functionality to that provided by the incumbent
11
________________________________________________________________ local exchange carrier to itself or to any subsidiary, affiliate
12
________________________________________________________ or any other party to which the incumbent local exchange
13
____________________________________________________ telecommunications company provides interconnection.
14
_______________________________________________ (d) Other states.--An incumbent local exchange
15
______________________________________________________ telecommunications company shall make available to any
16
________________________________________________________________ requesting telecommunications carrier, to the extent technically
17
_______________________________________________________ feasible, those services, facilities or interconnection
18
____________________________________________________________ agreements or arrangements that the incumbent local exchange
19
________________________________________________________ telecommunications company or any of its incumbent local
20
___________________________________________________________ exchange subsidiaries or affiliates offers in another state
21
_______________________________________________________________ under the terms and conditions, except for the effective rates,
22
____________________________________________________________ arbitrated or approved by a regulatory agency in that state.
23
____________________________________________________________ Rates shall be established by the commission consistent with
24
________________________________________________________________ this section. To the extent that interconnection, collocation or
25
_______________________________________________________ basic service functions have been deployed for or by an
26
__________________________________________________________ incumbent local exchange telecommunications company or its
27
______________________________________________________________ affiliates in any jurisdiction, it shall be presumed that such
28
___________________________________________ is technically feasible under this section.
29 30
______________________________________________ (e) Collocation.--An incumbent local exchange ________________________________________________________________ telecommunications company shall provide for physical or virtual
20030H1669B2134
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1
___________________________________________________________ collocation of any type of equipment for interconnection or
2
________________________________________________________ access to basic service functions at the premises of the
3
____________________________________________________________ incumbent local exchange telecommunications company on just,
4
_____________________________________________________________ reasonable and nondiscriminatory rates, terms and conditions.
5
___________________________________________________________ The equipment shall include, but is not limited to, optical
6
______________________________________________________________ transmission equipment, multiplexers, remote switching modules
7
_______________________________________________________________ and cross-connects between the facilities or equipment of other
8
_______________________________________________________________ collocated carriers. The equipment shall also include microwave
9
___________________________________________________________ transmission facilities on the exterior and interior of the
10
____________________________________________________ incumbent local exchange company's premises used for
11
________________________________________________________________ interconnection to, or for access to basic service functions of,
12
____________________________________________________________ the incumbent local exchange telecommunications company or a
13
_______________________________________________________ collocated carrier, unless the incumbent local exchange
14
______________________________________________________________ telecommunications company demonstrates to the commission that
15
_____________________________________________________ it is not practical due to technical reasons or space
16
___________________________________________________________ limitations. An incumbent local exchange telecommunications
17
________________________________________________________________ company shall allow, and provide for, the most reasonably direct
18
_____________________________________________________________ and efficient cross-connects, that are consistent with safety
19
____________________________________________________________ and network reliability standards, between the facilities of
20
________________________________________________ collocated carriers. An incumbent local exchange
21
_____________________________________________________________ telecommunications company shall also allow, and provide for,
22
_________________________________________________________ cross-connects between a noncollocated telecommunications
23
_______________________________________________________ carrier's network elements platform, or a noncollocated
24
__________________________________________________________ telecommunications carrier's transport facilities, and the
25
________________________________________________________________ facilities of any collocated carrier, consistent with safety and
26
______________________________ network reliability standards.
27
___________________________________________________________ (f) Basic service functions.--The incumbent local exchange
28
__________________________________________________________ telecommunications company shall provide to any requesting
29
_______________________________________________________________ telecommunications carrier, for the provision of an existing or
30
_______________________________________________________ a new telecommunications service, including high speed,
20030H1669B2134
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1
__________________________________________________________ nondiscriminatory access to basic service functions on any
2
_____________________________________________________________ unbundled or combined basis, as requested, at any technically
3
_______________________________________________________________ feasible point on just, reasonable and nondiscriminatory rates,
4
_____________________ terms and conditions.
5
___________________________________________________ (1) An incumbent local exchange telecommunications
6
_________________________________________________________ company shall provide basic service functions in a manner
7
_____________________________________________________________ that allows requesting telecommunications carriers to combine
8
______________________________________________________ those network elements to provide a telecommunications
9
______________________________ service, including high speed.
10
___________________________________________________ (2) An incumbent local exchange telecommunications
11
___________________________________________________________ company shall not separate basic service functions that are
12
___________________________________________________________ currently combined, except at the explicit direction of the
13
___________________ requesting carrier.
14
____________________________________________________________ (g) Provisioning standards.--The commission shall establish
15
_____________________________________________________ maximum time periods for the incumbent local exchange
16
_______________________________________________________ telecommunications company's provision of basic service
17
______________________________________________________________ functions. The maximum time period shall be no longer than the
18
_______________________________________________________________ time period for the incumbent local exchange telecommunications
19
___________________________________________________________ company's provision of comparable retail telecommunications
20
_____________________________________________________________ services, including high speed, utilizing those basic service
21
_______________________________________________________________ functions. Notwithstanding any other provision of this section,
22
______________________________________________________________ unless and until the commission establishes by rule or order a
23
__________________________________________________________ different specific maximum time interval, the maximum time
24
_______________________________________________________________ intervals shall not exceed five business days for the provision
25
______________________________________________________________ of unbundled loops, both digital and analog, ten business days
26
_______________________________________________________ for the conditioning of unbundled loops or for existing
27
_________________________________________________________ combinations of network elements for an end-user that has
28
__________________________________________________________ existing local exchange telecommunications service and one
29
_______________________________________________________________ business day for the provision of the high frequency portion of
30
____________________________________________________________ the loop (line-sharing), for at least 95% of the requests of
20030H1669B2134
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1 2
__________________________________________________________ each requesting telecommunications carrier for each month. ______________________________________________________ (h) Operations support systems.--The commission shall
3
_____________________________________________________ establish minimum standards with just, reasonable and
4
_____________________________________________________ nondiscriminatory rates, terms and conditions for the
5
____________________________________________________________ preordering, ordering, provisioning, maintenance, repair and
6
_________________________________________________ billing functions of the incumbent local exchange
7
________________________________________________________________ telecommunications company's operations support systems provided
8
_____________________________________ to other telecommunications carriers.
9
___________________________________________________________ (i) Cost-based rates.--Interconnection, collocation, basic
10
_________________________________________________________ service functions and operations support systems shall be
11
___________________________________________________________ provided by the incumbent local exchange telecommunications
12
_______________________________________________________________ company to requesting telecommunications carriers at cost-based
13
_________________________________________________________ rates and shall be based on forward-looking costs and may
14
________________________________________________________________ include a reasonable profit. In no case shall the aggregate rate
15
_____________________________________________________________ for all basic service functions that are necessary to provide
16
_____________________________________________________________ local exchange telecommunications services in a given retail-
17
________________________________________________________________ rate zone exceed the local exchange telecommunications company's
18
____________________________________________________________ tariffed basic local service charge in that same retail-rate
19
________________________________________________________________ zone. In no case shall the cost-based rates include a charge for
20
_____________________________________________________________ entrance facilities as an element of the rate for interoffice
21
__________________________________ facilities or dedicated transport.
22
_____________________________________________________ (j) Interim rates.--The immediate implementation and
23
___________________________________________________________ provisioning of interconnection, collocation, basic service
24
_____________________________________________________________ functions and operations support systems shall not be delayed
25
____________________________________________________________ due to any lack of determination by the commission as to the
26
_____________________________________________________ cost-based rates. When cost-based rates have not been
27
______________________________________________________________ established, within 30 days after the filing of a petition for
28
________________________________________________________________ the setting of interim rates, or on the commission's own motion,
29
________________________________________________________________ the commission shall provide for interim rates that shall remain
30
______________________________________________________ in full force and effect until a final cost-based rate
20030H1669B2134
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1
_______________________________________________________________ determination is made, or the interim rates are modified by the
2
________________________________________________________________ commission. Interim rates established by the commission shall be
3
____________________________________________________________ subject to refund upon the determination of permanent rates.
4
___________________________________________________________ (k) Special access.--None of the obligations imposed on an
5
______________________________________________________________ incumbent local exchange telecommunications company under this
6
_______________________________________________________________ section may be met through the provision of switched or special
7
________________ access services.
8 9 10
_____________________________________________________________ (l) Rural exemption.--This section does not apply to certain ___________________________________________________________ rural telephone companies as set forth in 47 U.S.C. § 51(f) ______________________________ (relating to interconnection).
11
Section 6.
Section 3006 of Title 66 is repealed.
12
Section 7.
Title 66 is amended by adding a section to read:
13
__________________________________ § 3006.1. Competitive safeguards.
14
__________________________________________________________ Incumbent local exchange telecommunications companies with
15
_____________________________________________________________ more than 50,000 access lines shall comply with the following
16
________________ code of conduct:
17
___________________________________________________ (1) An incumbent local exchange telecommunications
18
___________________________________________________________ company shall not give itself, including any local exchange
19
_____________________________________________________ affiliate, division or other corporate subunit or any
20
_______________________________________________________ competing local exchange telecommunications company any
21
_________________________________________________________ preference or advantage over any competing local exchange
22
________________________________________________________ telecommunications company in the preordering, ordering,
23
____________________________________________________ provisioning or repair and maintenance of any goods,
24
_________________________________________________________ services, basic service functions or facilities and shall
25
____________________________________________________________ furnish all goods, services and basic service functions used
26
___________________________________________________________ in providing its own retail services to all competing local
27
___________________________________________________________ exchange telecommunications companies on the same terms and
28
________________________________________________________ conditions. The speed and quality of the incumbent local
29
__________________________________________________________ exchange telecommunications company's response to requests
30
_________________________________________________________ for service shall be equal whether the request originates
20030H1669B2134
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1
____________________________________________________ with the incumbent local exchange telecommunications
2
_________________________________________________________ company's retail operations or a competing local exchange
3
___________________________ telecommunications company.
4
___________________________________________________ (2) An incumbent local exchange telecommunications
5
_________________________________________________________ company shall not condition the sale, lease or use of any
6
___________________________________________________________ noncompetitive service on the purchase, lease or use of any
7
______________________________________________________ other goods or services offered by the incumbent local
8
_____________________________________________________ exchange telecommunications company or on a direct or
9
________________________________________________________ indirect commitment not to deal with any competing local
10
____________________________________________________ exchange telecommunications company. Nothing in this
11
_________________________________________________________ paragraph, however, prohibits an incumbent local exchange
12
_______________________________________________________ telecommunications company from bundling noncompetitive
13
___________________________________________________________ services with competitive services as long as the incumbent
14
____________________________________________________________ local exchange telecommunications company continues to offer
15
________________________________________________________ any noncompetitive service contained in the bundle on an
16
___________________________________________________________ individual basis and at a price that is no greater than the
17
____________________________________________________________ difference between the bundled price less the price at which
18
_____________________________________________________________ the competitive service is offered on a stand-alone basis. An
19
_________________________________________________________ incumbent local exchange telecommunications company shall
20
____________________________________________________ offer to competing local exchange telecommunications
21
________________________________________________ companies for resale any bundled competitive and
22
____________________________________________________________ noncompetitive services it provides to end-users at the same
23
___________________________________________________________ price it offers such bundled services to end-users less the
24
____________________________________________________________ wholesale discount approved by the commission and shall make
25
__________________________________________________________ the basic service functions associated with those services
26
________________________________________________________ available to competing local exchange telecommunications
27
_______________________________________________ companies as may be required by applicable law.
28
___________________________________________________ (3) An incumbent local exchange telecommunications
29
____________________________________________________________ company employee engaged in the installation of equipment or
30
_______________________________________________________ the rendering of services to an end-user on behalf of a
20030H1669B2134
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1
____________________________________________________________ competitor shall not disparage the service of the competitor
2
____________________________________________________ or promote a service of the incumbent local exchange
3
___________________________________________ telecommunications company to the end-user.
4
___________________________________________________ (4) An incumbent local exchange telecommunications
5
______________________________________________________ company employee processing an order for the repair or
6
_________________________________________________________ restoration of service or engaged in the actual repair or
7
___________________________________________________________ restoration of service on behalf of a competitor shall not,
8
________________________________________________________ directly or indirectly represent to an end-user that the
9
___________________________________________________________ repair or restoration of service would have occurred sooner
10
_____________________________________________________________ if the end-user had obtained service from the incumbent local
11
____________________________________ exchange telecommunications company.
12
___________________________________________________ (5) An incumbent local exchange telecommunications
13
__________________________________________________________ company shall not engage in false or deceptive advertising
14
______________________________________________________ with respect to the offering of any telecommunications
15
_____________________________ service in this Commonwealth.
16
___________________________________________________ (6) An incumbent local exchange telecommunications
17
___________________________________________________________ company shall not state or imply that the services provided
18
__________________________________________________________ by the incumbent local exchange telecommunications company
19
_________________________________________________________ are inherently superior when purchased from the incumbent
20
____________________________________________________ local exchange telecommunications company unless the
21
_________________________________________ statement can be factually substantiated.
22
___________________________________________________ (7) An incumbent local exchange telecommunications
23
___________________________________________________________ company shall not state or imply that the services rendered
24
_____________________________________________________________ by a competitor may not be reliably rendered or are otherwise
25
________________________ of a substandard nature.
26
___________________________________________________ (8) An incumbent local exchange telecommunications
27
_____________________________________________________________ company shall not state or imply that the continuation of any
28
____________________________________________________________ service from the incumbent local exchange telecommunications
29
___________________________________________________________ company is contingent upon taking other services offered by
30
________________________________________________________ the incumbent local exchange telecommunications company.
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1
___________________________________________________ (9) An incumbent local exchange telecommunications
2
_____________________________________________________________ company shall not use revenues earned or expenses incurred in
3
__________________________________________________ conjunction with noncompetitive services to impede
4
______________________________________________________ competition or to subsidize or support any competitive
5
________________________________________________________ services, and shall not subsidize or support competitive
6
_________________________________________________________ services in any other manner. An incumbent local exchange
7
________________________________________________________ telecommunications company shall not provide any assets,
8
___________________________________________________ goods or services to its competitive local exchange
9
_________________________________________________________ affiliate, division or other subunit at a price below the
10
___________________________________________________________ incumbent local exchange telecommunications company's cost,
11
________________________________________________________ market price or tariffed rate for the goods or services,
12
___________________________________________________________ whichever is higher; nor shall the incumbent local exchange
13
_______________________________________________________ telecommunications company acquire any assets, goods or
14
__________________________________________________________ services from its competitive affiliate, division or other
15
__________________________________________________________ subunit at a price above the market price or tariffed rate
16
__________________________ for the goods or services.
17
____________________________________________________ (10) An incumbent local exchange telecommunications
18
_____________________________________________________________ company shall simultaneously make available to any competitor
19
_______________________________________________________ any market information not in the public domain that is
20
___________________________________________________________ supplied to the incumbent local exchange telecommunications
21
___________________________________________________________ company's competitive local exchange affiliate, division or
22
__________________________________________________________ other subunit. The term "market information" shall include
23
_________________________________________________________ any information which would be useful to a Local Exchange
24
___________________________________________________________ Carrier (LEC)in acquiring customers or providing service to
25
__________________________________________________________ customers. The incumbent local exchange telecommunications
26
____________________________________________________________ company shall establish procedures for dissemination of this
27
_________________________________________________ market information, including procedures assuring
28
_____________________________________________________________ notification of dissemination, and shall provide notification
29
__________________________________________________________ to each local exchange telecommunications company of these
30
___________ procedures.
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1
____________________________________________________ (11) An incumbent local exchange telecommunications
2
_______________________________________________________ company's employees, including, but not limited to, its
3
______________________________________________________ employees providing wholesale functions, shall not use
4
___________________________________________________ competing local exchange telecommunications company
5
___________________________________________________________ proprietary information, that is not otherwise available to
6
________________________________________________________ the incumbent local exchange telecommunications company,
7
_____________________________________________________________ received in the preordering, ordering, provisioning, billing,
8
___________________________________________________________ maintenance or repairing of any telecommunications services
9
___________________________________________________________ provided to the competing local exchange telecommunications
10
____________________________________________________________ company solely for the purpose of providing such services to
11
________________________________________________________ the competing local exchange telecommunications company.
12
_____________________________________________________________ Incumbent local exchange telecommunications company employees
13
________________________________________________ shall not disclose such competing local exchange
14
___________________________________________________________ telecommunications company proprietary information to other
15
_____________________________________________________ employees engaged in the marketing or sales of retail
16
______________________________________________________ telecommunications services unless the competing local
17
__________________________________________________________ exchange telecommunications company provides prior written
18
___________________________ consent to such disclosure.
19
____________________________________________________ (12) Subject to customer privacy or confidentiality
20
________________________________________________________ constraints, a local exchange telecommunications company
21
________________________________________________________ employee shall not disclose, directly or indirectly, any
22
___________________________________________________________ customer proprietary information to the LEC's affiliated or
23
________________________________________________________ nonaffiliated entities unless authorized by the customer
24
________________________________________________ under 52 Pa. Code § 63.135 (relating to customer
25
_____________ information).
26
_______________________________________________________ (13) Every incumbent local exchange telecommunications
27
____________________________________________________________ company shall formally adopt and implement the provisions of
28
____________________________________________________________ the code of conduct as company policy or modify its existing
29
___________________________________________________________ company policy as needed in order to be consistent with the
30
_______________________________________________ code of conduct. Every incumbent local exchange
20030H1669B2134
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1
_____________________________________________________ telecommunications company shall also disseminate the
2
__________________________________________________________ applicable code of conduct provisions to its employees and
3
_____________________________________________________________ take appropriate steps to train and instruct its employees on
4
______________________________ their content and application.
5
Section 8.
6
read:
7
§ 3007.
8 9
Sections 3007 and 3008 of Title 66 are amended to
Determination of access charges.
____________________ (a) General rule.--Local exchange telecommunications companies serving more than [250,000] 200,000 _______ access lines in
10
this Commonwealth as of the effective date of this chapter shall
11
comply with the following provisions:
12
(1)
Local exchange telecommunications companies shall
13
have an effective per-minute switched-access service price
14
that shall not exceed [12ç for the first five years from the
15
implementation date of the petition and plan, unless the
16
company can justify a higher rate based on the total cost of
17
switched-access services. The per-minute switched-access
18
service price includes both originating and terminating rates
19
and excludes nonrecurring rates. A local exchange
20
telecommunications company with an effective per-minute
21
switched-access service price greater than 12ç on the
22
implementation date of the petition and plan shall provide
23
for a revenue-neutral phasedown to not more than 12ç in not
24
more than three equal annual increments commencing with the
25
implementation of the petition and plan. Upon the sixth year
26
from the implementation date of the plan, the commission
27
shall review the per-minute switched-access service price
28
and, after notice and hearing, determine a just and
29
reasonable per-minute switched-access service price.] 5ç ______ per
30
___________________________________________________________ conversation minute of use within one year of the effective
20030H1669B2134
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1
____________________________________________________________ date of this section. The per-minute switched-access service
2
______________________________________________________ price includes both originating and terminating rates,
3
___________________________________________________________ including all usage-based and nonusage-based components and
4
____________________________________________________________ excludes nonrecurring rates. The commission may also provide
5
___________________________________________________________ for recovery of the revenues associated with implementation
6
_________________________________________________________ of this section through the funding mechanism established
7
________________________________________________________ under section 3004(b) (relating to commission review and
8
_______________________________ approval of petition and plan).
9
(2)
Local exchange telecommunications companies [with an
10
effective per-minute switched-access service price at or
11
below 12ç, including both originating and terminating rates
12
and excluding nonrecurring rates,] may not increase switched-
13
access [prices either in conjunction with the filing or
14
consideration of a petition and plan or for four years from
15
the approval date of a petition, not to extend beyond
16
December 31, 1999,] rates _____ unless the company can show that,
17
absent an increase, total switched-access revenues would be
18
below total switched-access cost. Revenue-neutral access
19
tariff rate changes and restructures may be proposed subject
20
to commission approval and __________________________________ subject to the requirements of
21
_______________ section 3004(c).
22
(3)
Upon the commission's evaluation of the consistency
23
of tariff rates and structures with the interstate access
24
service tariff, revenue-neutral tariff rate changes and
25
restructures may be proposed by local exchange
26
telecommunications companies in order to implement the
27
results of the commission evaluation. No rate change or
28
restructure shall be approved if it constitutes or promotes
29
unfair competition. Rate changes and restructures for access
30
services submitted in accordance with this paragraph are
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1
subject to commission approval, after notice and hearing.
2
[(4)
Any existing limits, by tariff or otherwise, on the
3
amount of revenue that a local exchange telecommunications
4
company may recover from the carrier common line rate shall
5
continue at the effective date of this chapter. At the
6
conclusion of any phasedown period provided in paragraph (1),
7
the annual revenues to be derived from carrier common line
8
rates shall be no more than the total carrier common line
9
revenues applicable to the final 12 months of any phasedown
10 11 12
period.] § 3008. (a)
Interexchange telecommunications [carrier] service. _______ Competitive and noncompetitive services.--
13
[Telecommunications] Interchange ______________________________ telecommunications services
14
[provided by interexchange telecommunications carriers] shall be
15
deemed to be competitive services. _ [after January 1, 1994,
16
except for the provision of the following interexchange services
17
which will be deemed to be noncompetitive services unless
18
determined otherwise by the commission:
19
(1)
Interexchange service to aggregator telephones.
20
(2)
Optional calling plans required by the commission to
21
be offered when justified by usage over an interexchange
22
route.]
23
(b)
Rate regulations.--The commission shall not fix or
24
prescribe the rates, tolls, charges, rate structures, rate base,
25
rate of return, operating margin or earnings for interexchange
26
competitive services or otherwise regulate interexchange
27
competitive services except as set forth in this chapter. The
28
commission may require that [the interexchange
29
telecommunications] carriers file and maintain tariffs or price
30
lists for competitive telecommunications services. Nothing in
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1
this chapter shall limit the authority of the commission to
2
regulate the privacy of interexchange service and the ordering,
3
installation, restoration and disconnection of interexchange
4
service to customers.
5
(c)
Reclassification.--The commission shall have the
6
authority to reclassify interexchange _____________ telecommunications
7
services [provided by an interexchange telecommunications
8
carrier] as noncompetitive if, after notice and hearing, it
9
determines, upon application of the criteria set forth in this
10 11
chapter, that sufficient competition is no longer present. (d)
Service quality standards.--The commission may establish
12
service quality standards for interexchange telecommunications
13
carriers. Nothing in this chapter shall limit the authority of
14
the commission to promulgate service quality standards for
15
interexchange telecommunications carriers or to resolve
16
complaints regarding the quality of interexchange
17
telecommunications carrier service. [Notwithstanding the
18
classification of telecommunications services as competitive,
19
interexchange carriers shall not be permitted to de-average
20
standard message toll service rates unless authorized to do so
21
by the commission.]
22
(e)
Authority of commission not limited.--Nothing in this
23
chapter shall limit the authority of the commission to determine
24
whether an interexchange telecommunications carrier should be
25
extended the privilege of operating within this Commonwealth or
26
to order the filing of such reports, documents and information
27
as may be necessary to monitor the market for and
28
competitiveness of interexchange telecommunications services.
29 30
Section 9.
Title 66 is amended by adding sections to read:
______________________________________________________________ § 3008.1. Compliance with chapter's requirement and penalties
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1 2 3
for __________________ noncompliance. __________________________________________________________ (a) Strict compliance.--Telecommunications carriers shall _________________________________________________ strictly abide by each provision of this chapter.
4
______________________________________________________ (b) Administrative penalty.--In addition to any other
5
____________________________________________________________ available penalty, the commission may assess directly, after
6
_______________________________________________________ hearing, an administrative penalty of up to $10,000 per
7
_____________________________________________________________ violation of this chapter, but the penalty shall not apply to
8
___________________________________________________________ violations of regulations, orders or tariffs. Each day of a
9
_______________________________________________________________ continuing offense against each public utility shall be treated
10
_______________________________________________________________ as a separate violation for purposes of levying a penalty under
11
_____________ this section.
12 13 14 15
____________________________________________________________ (c) Criteria.--In assessing an administrative penalty under ____________________________________________ this section, the commission shall consider: ___________________________________________________ (1) The nature, circumstances, extent, gravity and _____________________ number of violations.
16
_______________________________________________ (2) The degree of culpability of the violator.
17
__________________________________________________ (3) Prior offenses and repeated violations of the
18 19 20 21 22
_________ violator. ___________________________________________________ (4) Any other matter that the commission considers _________________________ appropriate and relevant. _________________________________________________ § 3008.2. Lifeline and Link Up service discount. __________________________________________________________ (a) Automatic enrollment for Lifeline service discount.--
23
____________________________________________________________ Within six months of the effective date of this section, the
24
______________________________________________________________ commission shall adopt, by order, procedures providing for the
25
______________________________________________________________ automatic enrollment of eligible customers to receive Lifeline
26
_______________________________________________ service discounts consistent with this section.
27
______________________________________________ (1) The commission shall require all eligible
28
_________________________________________________________ telecommunications carriers certificated to provide local
29
____________________________________________________________ exchange service to provide automatic enrollment in Lifeline
30
_________________________________________________________ service to all eligible telecommunications customers that
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1 2
_________________________________________________ receive local exchange service from that carrier. ___________________________________________________ (2) The commission shall require that all eligible
3
_________________________________________________________ telecommunications customers who receive Lifeline service
4
____________________________________________________________ discounts shall not be subject to any mandatory restrictions
5
_______________________________________________________ with respect to their ability to subscribe to any other
6
___________________________________________________________ telecommunications services, except those restrictions that
7
________________________________________________________ would apply to all customers regarding failure to pay or
8
_____________________________________ other basis for service restrictions.
9
____________________________________________________ (3) Within six months of the effective date of this
10
_____________________________________________________________ section, the commission, the Department of Public Welfare and
11
_______________________________________________________ any other appropriate State agencies shall enter into a
12
___________________________________________________________ memorandum of understanding to facilitate implementation of
13
_______________________________________________________ automatic enrollment and any other steps appropriate to
14
______________________________________________________ promote telephone universal service. The memorandum of
15
____________________________________________________________ understanding shall ensure the development and accessibility
16
________________________________________________________ of a database which identifies customers who qualify for
17
___________________________________________________________ Lifeline service and Link Up service. The database shall be
18
_____________________________________________________________ made available to all eligible telecommunications carriers in
19
_______________________________________________________ a manner which does not delay the customer subscription
20
____________________________________________________________ process and which does not cause eligible telecommunications
21
_________________________________________________________ carriers to incur additional costs in order to access the
22
_________ database.
23
_________________________________________________________ (4) A customer who is automatically enrolled in Lifeline
24
____________________________________________________________ service may choose to decline the Lifeline service discount,
25
___________________________________________________________ or may enroll in an alternative Lifeline discounted service
26
_____________________________________________________ that may be offered by an eligible telecommunications
27
_______________________________________ carrier, as approved by the commission.
28
______________________________________________________ (5) Nothing in this section shall prevent an eligible
29
_____________________________________________________________ telecommunications carrier from offering voluntary enrollment
30
_________________________________________________________ in alternative Lifeline and Link Up services that provide
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1
_____________________________________________________ greater discount levels or impose other conditions on
2
___________________________________________________ customers who enroll in those alternative services.
3
_________________________________________________________ (6) An eligible telecommunications carrier shall protect
4
____________________________________________________________ as confidential customer-specific information as part of any
5
___________________________________________________ automatic enrollment process and shall not use such
6
____________________________________________________________ information for any purpose other than the identification of
7
____________________________________________________________ customers eligible for Lifeline, Link Up or other low-income
8
_____________________________ universal service assistance.
9
_____________________________________________________________ (b) Income-based enrollment.--The order shall also establish
10
___________________________________________________________ Lifeline eligibility criteria that shall allow consumers to
11
_____________________________________________________________ receive Lifeline and Link Up service discounts on a voluntary
12
______________________________________________________________ basis, to the extent permitted by Federal law and regulations,
13
____________________________________________________________ based upon the consumers' certification that their household
14
___________________________________________________________ income is less than or equal to 150% of the Federal poverty
15
______ level.
16
_______________________________________________________ (c) Link Up service and Lifeline service enrollment.--
17
___________________________________________________________ Whenever a prospective customer seeks to subscribe to local
18
________________________________________________________________ service from an eligible telecommunications carrier, the carrier
19
________________________________________________________________ shall explicitly advise the customer of the availability of Link
20
_____________________________________________________________ Up and Lifeline services and shall make reasonable efforts to
21
_______________________________________________________________ determine whether the customer qualifies for such service. Upon
22
_________________________________________________________ determining that a customer qualifies for the Link Up and
23
______________________________________________________________ Lifeline service, the carrier shall apply the Link Up discount
24
________________________________________________________________ to the customer's initial bill and the Lifeline discount to each
25
______________________________________________________________ monthly bill unless the customer explicitly declines to accept
26
_____________ the discount.
27
_____________________________________________________________ (d) Consumer outreach.--Eligible telecommunications carriers
28
__________________________________________________________ shall inform existing customers of the availability of the
29
_________________________________________________________ Lifeline and Link Up discount programs when negotiating a
30
______________________________________________________________ payment arrangement with a customer, when a notice of proposed
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1
______________________________________________________________ service suspension is provided and on the bill twice annually.
2
__________________________________________________________ The written notices shall be conspicuous and shall provide
3
_____________________________________________________________ appropriate eligibility, benefits and contact information for
4
___________________________________________________________ customers who wish to learn of the enrollment requirements.
5
Section 10.
Section 3009 of Title 66 is amended by adding
6
subsections to read:
7
§ 3009.
Additional powers and duties.
8
* * *
9
____________________________________________________ (b.1) Quality of service.--Within six months of the
10
_____________________________________________________________ effective date of this subsection, the commission shall adopt
11
______________________________________________________________ regulations regarding the quality of service provided by local
12
________________________________________________________________ exchange telecommunications companies as defined in section 3002
13
__________________________ (relating to definitions).
14 15
_________________________________________________ (1) The regulations regarding this section shall _______________________________ include, but not be limited to:
16
(i) ______________________________________________ Requirements regarding the maintenance of
17
_________________________________________________________ telephone facilities and equipment that are sufficient to
18
_______________________________________________ provide a minimum dial-up modem access speed as
19
_____________________________ determined by the commission.
20
(ii) _____________________________________________________ Requirements providing for the reporting to the
21
_____________________________________________________ commission of service complaints and analysis of each
22
________________________ service quality measure.
23
(iii) _____________________________________________________ Requirements establishing mandatory credits to
24
________________________________________________________ customer accounts to compensate for those instances when
25
__________________________________________________ a local exchange telecommunications company misses
26
_____________________________________ installation or service appointments.
27
(iv) ____________________________________________________ Requirements establishing maximum time periods
28
______________________________________________________ for the installation of local service and establishing
29
________________________________________________________ mandatory credits to customer accounts and the provision
30
________________________________________________________ of alternative services for those instances when a local
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1
_____________________________________________________ exchange telecommunications company fails to meet the
2
_____________ requirements.
3
(v) ___________________________________________________ Requirements establishing maximum time periods
4
_________________________________________________ in which to restore service to all out-of-service
5
___________________________________________________ complainants, and establishing mandatory credits to
6
__________________________________________________ customer accounts and the provision of alternative
7
__________________________________________________ services for those instances when a local exchange
8
____________________________________________ telecommunications company fails to meet the
9
_____________ requirements.
10
(vi) ____________________________________________________ Requirements establishing maximum time periods
11
________________________________________________________ in which to resolve consumer complaints, trouble reports
12
_______________________________________________________ and other incidences of line interference, intermittent
13
_________________________________________________________ loss of service and other service quality complaints, and
14
_______________________________________________________ establishing mandatory credits to customer accounts for
15
________________________________________________________ those instances when a local exchange telecommunications
16
_______________________________________ company fails to meet the requirements.
17
_________________________________________________________ (2) Any credits to customers required by the regulations
18
____________________________________________________________ shall be the responsibility of the wholesale or retail local
19
____________________________________________________________ exchange telecommunications company which caused a violation
20
_________________________________________________________ of quality of service requirements. In cases in which the
21
___________________________________________________________ fault is with the wholesale provider, the regulations shall
22
______________________________________________________ require the wholesale provider to reimburse the retail
23
______________________________________________ provider in the amount of the required credit.
24
_____________________________________________________________ (b.2) Comprehensive review.--In developing regulations under
25
___________________________________________________________ this section and in applying these and all other quality of
26
______________________________________________________________ service regulations with respect to telecommunications service
27
______________________________________________________ in any investigations or adjudicatory proceedings, the
28
__________________________________________________________ commission shall consider all contemporary developments in
29
________________________________________________________ technology, service standards and consumer demand. These
30
_________________________________________________________ regulations shall be reviewed and, if deemed appropriate,
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1
_____________________________________________________________ updated by the commission at least every five years, after an
2
_______________________________ opportunity for public comment.
3
* * *
4
______________________________________ (g) Alternative dispute resolution.--
5
__________________________________________________ (1) The commission shall establish an alternative
6
___________________________________________________________ dispute resolution process which may be utilized by parties
7
____________________________________________________________ to resolve disputes concerning compliance with this chapter.
8
_________________________________________________________ The commission shall establish regulations for nonbinding
9
______________________________________________________ arbitration of disputes by members of the staff of the
10
________________________________________________________ commission or a commissioner for jurisdictional disputes
11
___________________________________________________ arising under this chapter. The alternative dispute
12
_________________________________________________________ resolution process shall allow parties to receive a final
13
___________________________________________________________ resolution of a dispute by the commission within 60 days of
14
_________________________________________________________ initiation of the alternative dispute resolution process.
15
_______________________________________________________ (2) Participants in the nonbinding arbitration process
16
___________________________________________________________ may file a formal complaint with the commission at any time
17
___________________________________________________________ and obtain a formal binding resolution of the dispute under
18
_________________________________________________ available commission procedures. Participation by
19
___________________________________________________ commissioners or commission staff in the nonbinding
20
___________________________________________________ arbitration process shall not act as a bar to their
21
______________________________________________________ subsequent participation in a formal adjudication of a
22
__________________________________ disputed matter by the commission.
23
_______________________________________________________ (h) Bureau of Enforcement.--There shall be established
24
__________________________________________________________ within the commission a Bureau of Enforcement specifically
25
_______________________________________________________________ dedicated to enforcing the provisions of this chapter and other
26
______________________________________________________________ requirements governing telecommunications carriers. The Bureau
27
______________________________________________________________ of Enforcement shall include a legal staff and shall have both
28
_______________________________________________________________ prosecutory and advisory functions. The bureau shall provide an
29
_______________________________________________________________ annual report to the General Assembly identifying the scope and
30
_____________________________________________________________ results of the bureau's prosecutory activities over the prior
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1 2
_____ year. __________________________________________________ (i) Annual audit.--The commission shall conduct a
3
__________________________________________________________ comprehensive annual audit addressing compliance with this
4
______________________________________________________________ chapter. The audit shall be conducted by an independent entity
5
______________________________________________________________ with no vested interest in the subject matter of the audit and
6
______________________________________________________________ shall be funded by incumbent local exchange telecommunications
7
________________________________________________________________ companies. The audit report shall be made publicly available and
8
__________________________________________ shall be provided to the General Assembly.
9
Section 11.
This act shall take effect in 60 days.
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