First Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 11-0361.03 Duane Gall SENATE BILL 11-262 SENATE SPONSORSHIP Scheffel and Tochtrop, HOUSE SPONSORSHIP Murray and Williams A., Senate Committees House Committees Business, Labor and Technology A BILL FOR AN ACT Concerning the regulation of telecommunications service by the public utilities commission, and, in connection therewith, eliminating price regulation for all but basic local exchange service and emergency service and phasing out the high-cost support mechanism. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill repeals and reenacts the existing statutes governing regulation of telecommunications by the Colorado public utilities commission (PUC). Retail and wholesale services are treated separately. The PUC is directed to withdraw price controls for all services except basic local exchange service and emergency service, and to periodically reexamine whether competition has advanced sufficiently in particular geographic areas so that price controls on these services may also be withdrawn. The bill preserves the PUC's jurisdiction over service quality, including the authority to receive and resolve consumer complaints. In addition, the bill: Adds voice-over-internet-protocol (VoIP) service as a recognized alternative for providing voice communications, and includes VoIP providers among those who must contribute to the funding of basic service in high-cost areas and emergency service as long as funding mechanisms for those services continue; Requires registration for all carriers but eliminates the need for a certificate of public convenience and necessity for carriers other than those that provide regulated basic service or emergency service; and Requires wholesale carriers to incrementally adjust their rates for access over a period of time until their intrastate rates match their interstate rates as filed with the federal communications commission. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Article 15 of title 40, Colorado Revised Statutes, is REPEALED AND REENACTED, WITH AMENDMENTS, to read: ARTICLE 15 Intrastate Telecommunications Services PART 1 GENERAL PROVISIONS 40-15-101. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that it is the policy of the state of Colorado to promote a competitive telecommunications marketplace while protecting and maintaining the wide availability of high-quality telecommunications services. Such goals are best achieved by legislation that brings telecommunications regulation into the modern era by guaranteeing the affordability of regulated basic telephone service while fostering free market competition within the telecommunications industry. (2) The general assembly further finds that the technological advancements and increased customer choices for telecommunications services generated by such market competition continue to enhance Colorado's economic development and play a critical role in Colorado's economic future. However, the general assembly recognizes that the strength of competitive force varies between markets and therefore allows for limited continuing regulation of certain basic local exchange and 911 service. (3) Therefore, to foster, encourage, and accelerate the continuing emergence of a competitive telecommunications environment, the general assembly declares that flexible regulatory treatments are appropriate for different telecommunications services. 40-15-102. Definitions. As used in this article, unless the context otherwise requires: (1) "Basic emergency service provider" or "BESP" has the meaning set forth in section 29-11-101 (1.2), C.R.S., and, in addition, includes any person that aggregates 911 information. (2) "Basic local exchange service" or "basic service" means the telecommunications service that provides local dial tone and local usage necessary to place or receive a call within an exchange area, together with access to emergency and interexchange telecommunications services. (3) "Carrier" means a provider of telecommunications service, interexchange telecommunications service, or a provider of interconnected VoIP service, to the extent such service is offered to the public and interconnects with the public switched telecommunications network. "Carrier" does not include a provider of a private telecommunications network. (4) "Commercial mobile radio service" or "CMRS" means providers that offer cellular or wireless service, personal communications service, or radio mobile service. (5) "Commission" means the public utilities commission of the state of Colorado. (6) "Competitive local exchange carrier" or "CLEC" means a local exchange carrier that provides, or offers to provide, basic service in an identified exchange area and that was not the sole provider of basic service in that exchange area on or before [date]. (7) "Emergency service" means emergency telephone service as defined in section 29-11-101 (2), C.R.S. (8) "Exchange area" means a geographic area established by the commission or by agreement among carriers, subject to the commission's approval, which area consists of one or more central offices together with associated facilities used in providing basic local exchange service. (9) "Incumbent local exchange carrier" or "ILEC" means a carrier that provides, or offers to provide, basic service in an identified exchange area and that was the sole provider of basic service in that exchange area on or before [date]. (10) "Interconnected voice-over-internet-protocol service" or "VoIP" means a service that: (a) Enables real-time, two-way voice communications; (b) Requires a broadband connection from the user's location; (c) Requires internet protocol-compatible customer premises equipment; and (d) Permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. (11) "Interexchange telecommunications service" means telephone services, not included in basic local exchange service, that is priced based upon usage. (12) "Local exchange provider" or "local exchange carrier" means a person authorized by the commission to provide basic local exchange service. (13) (a) "Private telecommunications network" means a system for the provision of all or a portion of telecommunications service, including the construction, maintenance, or operation of such system, or any portion of such service, by a person or entity for the sole and exclusive use of the person or entity and not for resale, directly or indirectly. (b) "Private telecommunications network" also includes: (I) Any telecommunications service, the operation, facilities, or premises of which are or may be shared by energy utilities, used solely and exclusively by and for the utilities and not for resale, directly or indirectly; and (II) A telecommunications service owned or leased by a college, as defined in section 23-3-103 (1), C.R.S., used solely and exclusively by and for the college and not for resale, directly or indirectly, for the purpose of providing services to: (A) Students residing in housing owned by or affiliated with the college, students registered and enrolled at the college, and invited guests of the students; or (B) Faculty, staff, or concessionaires of the college or the invited guests of the faculty, staff, or concessionaires. (c) Construction, maintenance, or operation of a private telecommunications network does not constitute the provision of public utility service, and the network is not subject to any provisions of this article or of articles 1 to 7 of this title. (14) "Rural telecommunications provider" means a local exchange provider that meets one or more of the following conditions: (a) Provides common carrier service to any local exchange carrier study area, as defined by the commission, that does not include either: (I) An incorporated place of ten thousand inhabitants or more, or a part thereof, based on the most recently available population statistics of the United States bureau of the census; or (II) Incorporated or unincorporated territory, included in an urbanized area, as defined by the United States bureau of the census as of August 10, 1993; (b) Provides telephone exchange service, including exchange access, to fewer than fifty thousand access lines; (c) Provides telephone exchange service to any local exchange carrier study area, as defined by the commission, with fewer than one hundred thousand access lines; or (d) Has less than fifteen percent of its access lines in communities of more than fifty thousand inhabitants. (15) "Switched access" means the services or facilities furnished by a local exchange company to interexchange providers that allow them to use the basic exchange network for origination or termination of interexchange telecommunications services. (16) "Telecommunications" has the meaning set forth in the "Federal Communications Act", 47 U.S.C. sec. 153, as amended, and federal regulations adopted under the authority of the act. 40-15-103. Carriers - registration required - number assignments - certificate for providers of regulated basic service. (1) All carriers shall register with the commission in a form determined by the commission. At a minimum, the registration must include the following information, updated within fifteen days after any change: (a) The carrier's name and complete address; (b) All names under which the carrier does business; and (c) All names and identification numbers under which the carrier has registered with the Colorado secretary of state or the Colorado department of revenue. (2) Carriers that require assignment of telephone numbers shall obtain authorization from the commission consistent with the requirements of the North American number plan administrator and the federal communications commission. The commission shall permit carriers to apply for the authorization as part of the registration process. (3) (a) A carrier shall not provide or offer to provide regulated basic local exchange service or emergency service in Colorado without first having obtained from the commission a certificate declaring that the present or future public convenience and necessity requires or will require the operation of the service. (b) The commission may attach to the exercise of the rights granted by a certificate of public convenience and necessity terms and conditions that, in the commission's judgment, the public convenience and necessity may require. The terms and conditions may include the posting of a bond or other evidence of financial responsibility. (4) A provider of telecommunications service who, on the effective date of this article, holds a certificate of public convenience and necessity to offer or provide services and products regulated pursuant to this article retains the authority to offer or provide services without having to make application to the commission for additional or continued authority. 40-15-104. Rules of commission - factors to consider. In adopting and enforcing its rules to implement this article, the commission may consider differences between classes of regulated carriers based on historic status and size, among other relevant factors. 40-15-105. Continuity of commission responsibilities under prior law. (1) On and after the effective date of this article, the commission shall: (a) Continue to carry out its duties and obligations with respect to telephone numbering issues in conjunction with the orders of the federal communications commission and the policies of the North American numbering council or its successor organization; (b) Maintain its oversight for area code designation, code administration, porting requirements, and telephone number reclamation, regardless of the regulatory status of telecommunications services; (c) Continue to exercise its duties and responsibilities to develop recommendations to the federal communications commission concerning eligible telecommunications carriers; and (d) Continue to fulfill its duties and exercise its authority concerning the administration of the telecommunications relay service. 40-15-106. Cross-subsidization prohibited - illegal restraint of trade. A carrier shall not set the price of telecommunications services or products that are not subject to price regulation by the commission below cost by use of subsidization from customers of services and products subject to price regulation by the commission, and any such cross-subsidization is deemed to be an illegal restraint of trade subject to article 4 of title 6, C.R.S. 40-15-107. Powers of commission - inspection of books and documents - confidentiality of information obtained through audit. (1) The commission shall administer and enforce this article, and, in addition to any other powers under articles 1 to 7 of this title, the commission has the right to inspect the books and documents of a provider of basic local exchange service. (2) In addition, the commission has the right to inspect the books and records of an affiliate of a local exchange carrier if, in the provision of such service, the affiliate uses a plant or incurs costs that are joint and common to the provision of a basic local exchange service. (3) For the limited purpose of enforcing this article concerning a carrier's required contribution to the Colorado high-cost support mechanism established in section 40-15-306, the telecommunications relay service, and funding for emergency services, the commission has the right to inspect the books and documents of a carrier required to contribute. (4) The exercise of commission authority pursuant to this section shall be narrowly tailored to include only information necessary to enforce the requirements of this article and shall be commensurate with the level of regulation applied to the carrier. (5) The commission shall adopt rules and procedures to assure confidential treatment of any material deemed to be proprietary, consistent with its existing procedures regarding the treatment of confidential information. 40-15-108. Reports. (1) The commission may require reports from certified carriers providing regulated basic local exchange service to the extent necessary to implement the requirements of this article. (2) The commission shall reduce its reporting requirements commensurate with reductions in the level of regulation applied to the services of a carrier. 40-15-109. Unauthorized change of telecommunications provider. (1) A provider of telecommunications service shall not request the full or partial transfer of a customer's account to another provider of the same or similar telecommunications service without the informed consent of the customer. The commission shall adopt rules addressing the form of the required consent, whether written or oral, the requirements of verification for oral consent, the role of an authorized agent for the customer, and such additional consumer protections that the commission finds are needed to prevent the unauthorized change of telecommunications providers. (2) A telecommunications provider who initiates an unauthorized change in a customer's telecommunications provider in violation of this section is liable: (a) To the customer, the customer's previously selected provider, or both, as determined by the commission, for all applicable charges and fees, the value of any premiums to which the customer would have been entitled, and other relevant charges incurred by the customer during the period of the unauthorized change; and (b) To the customer's local exchange provider for the change fees for the unauthorized change and reinstating the customer to the original provider. 40-15-110. Unauthorized charge for services. (1) A provider of telecommunications services shall not engage in the following activities: (a) Charging a customer for goods or services without the customer's authorization; (b) Adding charges for goods or services to the customer's bill without the customer's authorization; or (c) When providing billing services for a telecommunications provider, knowingly or recklessly participating in charging or billing a customer for goods or services without the customer's authorization to add such goods or services to the customer's bill; except that, in accordance with federal law, this paragraph (c) shall not apply to a provider of wireless services. (2) A customer is not liable for an amount charged in violation of this section. (3) The commission shall maintain and keep available data on the incidence of complaints in violation of this section. 40-15-111. Evolution of telecommunications market - achievement of policy goals - commission to report. (1) On or before January 1, 2014, and on or before January 1 of each even-numbered year thereafter, the commission shall report to the general assembly on the state of the Colorado telecommunications industry. The report shall: (a) Assess the impact of this article on carriers and consumers and describe the progress achieved toward the legislative goals stated in this article during the immediately preceding two years; and (b) Contain the commission's recommendations for policy modifications or legislative changes. (2) Carriers shall comply with requests from the commission for information the commission deems reasonably necessary in preparing its report under subsection (1) of this section, subject to reasonable conditions to protect proprietary information. 40-15-112. Powers of local government. Nothing in this article supersedes any existing powers of a local government. 40-15-113. Violations. Violations of this article by a telecommunications provider or a provider of interconnected VoIP service are subject to enforcement and penalties as provided in article 7 of this title. PART 2 WHOLESALE TELECOMMUNICATIONS SERVICE 40-15-201. Wholesale rates - switched access - mirroring of interstate rates - schedule for compliance. Beginning January 1, 2012, each carrier that provides switched access service shall reduce its intrastate switched access rates on an element-by-element basis, in three annual and equal increments, to eventually mirror the carrier's access rates pursuant to its tariff or service agreement before the federal communications commission so that, by January 1, 2014, the carrier's intrastate switched access rates are identical to their respective interstate rates. The commission shall investigate all complaints of unjust and unreasonable switched access rates and it shall maintain the authority to set the rates for such service at those determined to be just and reasonable after notice and hearing. 40-15-202. Nondiscriminatory access charges. (1) With regard to pricing and the provision of access, a local exchange provider shall not make or grant any preference or advantage to a person providing telecommunications service between exchanges nor subject a person to, nor itself take advantage of, any prejudice or competitive disadvantage for providing access to the local exchange network. (2) A local exchange provider shall file contracts for access with the commission, and the contracts are open to review by other purchasers of access to assure compliance with this section. Before review of a contract for access, the purchaser desiring the review shall execute a nondisclosure agreement as determined by the commission for the protection of business and trade secrets. 40-15-203. Switched access - continuation of price regulation. On or after the effective date of this article, the price of switched access may not be deregulated except upon the subsequent enactment of enabling legislation authorizing such deregulation. 40-15-204. Interconnection - unbundled elements - disputes - rules of commission. (1) The commission shall maintain and may amend its rules implementing interconnection and other obligations prescribed by 47 U.S.C. secs. 251 and 252 of the federal "Telecommunications Act of 1996", as amended. The commission shall design the rules to foster and encourage a competitive telecommunications marketplace in Colorado. In addition, with respect to the rules, the commission may consider the differences between the economic conditions of rural and urban areas. (2) In the event of a dispute between providers of telecommunications services concerning the terms, conditions, quality, or compensation for the interconnection or access of lines or facilities between providers, a provider may apply to the commission for resolution of the dispute. After notice and hearing, the commission shall enter its decision resolving the interconnection or access dispute. (3) Carriers are not required to maintain wholesale tariffs at the commission for services provided pursuant to the requirements of 47 U.S.C. secs. 251 and 252 of the federal "Telecommunications Act of 1996", as amended. PART 3 RETAIL TELECOMMUNICATIONS SERVICE 40-15-301. Basic service - providers of last resort - conditions for discontinuance of regulated basic service. (1) The commission shall conduct a proceeding, beginning no later than July 1, 2012, and no less frequently than every three years thereafter, to consider the deregulation of any remaining regulated basic local exchange service. (2) (a) In all relevant geographic areas of the state, as defined by the commission, the commission may designate one wireline provider as the provider of last resort and one wireless provider of last resort and adopt procedures for changing or terminating the designation. A provider of last resort designation carries the responsibility to offer basic local exchange service to all consumers who request it within the designated area. (b) In exchange areas with sufficient competition, as determined by the commission, the commission shall decline to designate a carrier of last resort or may rescind a designation that was previously made. (3) A carrier holding a certificate of public convenience and necessity to provide regulated basic service is subject to subsection (1) of this section and the system of financial support for universal service established by the commission under section 40-15-306. (4) A provider of regulated basic local exchange service must apply to the commission for permission to discontinue the service. Unless the provider is a provider of last resort in an affected area, the commission shall act on the application within sixty days after receiving the application. The commission may condition its approval of the application upon the provider's compliance with requirements for giving notice to its customers that the provider will discontinue its service. (5) A certificated local exchange that has no customers is not required to apply for authority to abandon its certificate and discontinue offering basic service. (6) An agreement between local exchange providers to modify the boundaries of exchange areas is subject to review and approval by the commission. (7) For exchange areas in which the rates for basic service remain regulated, the commission shall continue to regulate local calling areas, including zone charges and extended area service increments. 40-15-302. Emergency service - price - service quality - authority of commission. (1) Notwithstanding the technology used to deliver the service and notwithstanding the regulatory status of the component services, the commission retains authority to regulate the price and service quality of emergency service. (2) An entity proposing to offer emergency service shall first obtain a certificate of public convenience and necessity from the commission. The commission may attach only such conditions to the certificate that the commission finds necessary to protect the public interest. 40-15-303. Transfer of certificate. A provider or carrier may sell, assign, lease, encumber, or transfer a certificate of public convenience and necessity to provide basic local exchange service or emergency service only if authorized by the commission. 40-15-304. Regulation of rates - deregulation of all but certain basic service - schedule of permissible increases. (1) The commission shall not regulate the price of any retail service of a carrier other than emergency service as provided in section 40-15-302 and regulated basic service as provided in this section. (2) The commission shall determine a maximum monthly price for regulated basic service. (3) Beginning on January 1, 2012, and each subsequent January 1, the maximum monthly price for regulated basic service is increased by one dollar, unless the commission approves a higher rate or unless the price of the service has been deregulated pursuant to this section. (4) The commission may set a higher maximum rate than the maximum monthly price for regulated basic service, but the commission may not require a carrier to charge a lower rate for basic service. (5) Effective January 1, 2013: (a) Rates for basic service provided by CLECs are deregulated; and (b) Rates for basic service offered by nonrural ILECs are deregulated for all exchanges wherein the commission has determined that sufficient competition exists. Sufficient competition exists where three or more providers have offered the equivalent of basic local exchange service, through any technology, for a period of two years or more. The commission shall open a proceeding to determine the exchanges where sufficient competition exists and deregulate basic local exchange in those areas. (6) (a) Notwithstanding any other provision of law, the commission: (I) May deregulate the price of regulated basic service in any exchange area served by any carrier; and (II) Shall annually review the list of rural and nonrural ILEC exchanges that remain rate-regulated and determine in which exchange areas the rates for regulated basic service should be deregulated. (b) The commission's authority to regulate services is limited to those expressly described in this article. All other services shall be considered deregulated, including CMRS interconnected VoIP. 40-15-305. Retail service - quality - complaints - authority of commission. (1) The commission shall receive and resolve consumer complaints for any regulated telecommunications service. (2) The commission shall review and reduce any existing service quality measures applied to regulated basic services commensurate with the reduced level of regulation applied to the service. (3) Regarding quality of service of regulated basic and 911 service, and to the extent applicable, the commission may exercise its authority to impose civil penalties as provided in section 40-7-113.5 for intentional violations of this article and articles 1 to 7 of this title. 40-15-306. High-cost support mechanism - Colorado high-cost administration fund - creation - purpose - operation - rules - legislative declaration. (1) (a) The general assembly finds, determines, and declares that support for basic local exchange service places a burden on Colorado consumers, but that the burden is necessary to support the goal of universal basic local exchange service within the state. The general assembly further finds that it is in the interest of Colorado's citizens to continue, but modernize and eventually sunset, the support for universal basic local exchange service through the Colorado high-cost support mechanism created in this section. (b) No later than July 1, 2012, the commission shall reevaluate whether the areas currently designated as rural or high-cost for purposes of high-cost support remain rural or high-cost. Further, the commission shall establish a schedule to eliminate support for any areas that it determines no longer qualify as high-cost or rural. On or before January 1, 2031, the commission shall eliminate all support from the Colorado high-cost support mechanism. (2) The commission is hereby authorized to establish a mechanism for the support of universal service, also referred to in this section as the "high-cost support mechanism", which shall operate in accordance with rules adopted by the commission. The primary purpose of the high-cost support mechanism is to: (a) Provide financial assistance as a support mechanism to local exchange providers to help make regulated basic local exchange service affordable; and (b) Allow the providers to be fully reimbursed for the difference between the reasonable costs incurred in making regulated basic service available to their customers within a rural, high-cost geographic support area and the price charged for the service, after taking into account any amounts received by the providers under price support mechanisms established by the federal government and by this state. (3) Rural carriers may recover net reduced access revenue from the high-cost support mechanism subject to the following conditions: (a) The commission shall adjust the support provided to a rural carrier to account for access cost savings experienced by the rural carrier as a result of access price reductions of other carriers as required by this article; (b) The commission shall adjust the support to account for changes to the number of access minutes experienced by the rural carrier; and (c) The commission shall adjust the support to account for increased revenues from regulated basic service as a result of the enactment of this article. (4) (a) The commission shall ensure that no local exchange provider is receiving funds from this or any other source that, together with local exchange service revenues, exceeds the cost of providing local exchange service to customers of the provider. The commission shall administer and distribute high-cost support mechanism equitably and on a nondiscriminatory, competitively neutral basis through a neutral assessment on all telecommunications service providers in Colorado. (b) On or before December 1, 2011, and on or before each December 1 thereafter, the commission shall submit a written report to the committees of reference in the senate and house of representatives that are assigned to hear telecommunications issues, in accordance with section 24-1-136, C.R.S., accounting for the operation of the high-cost support mechanism during the preceding calendar year and containing the following information, at a minimum: (I) The total amount of money that the commission determined should constitute the high-cost support mechanism from which distributions would be made; (II) The total amount of money ordered to be contributed through a neutral assessment collected by each telecommunications service provider; (III) The basis on which the contribution of each telecommunications service provider was calculated; (IV) The benchmarks used and the basis on which the benchmarks were determined; (V) The total amount of money that the commission distributed from the high-cost support mechanism; (VI) The total amount of money distributed to each telecommunications service provider from the high-cost support mechanism; (VII) The basis on which the distribution to telecommunications service providers was calculated; (VIII) As to each telecommunications service provider receiving a distribution, the amount received by geographic support area and type of customer and the way in which the benefit of the distribution was applied or accounted for; (IX) The proposed benchmarks, the proposed contributions to be collected through a neutral assessment on each telecommunications provider, and the proposed total amount of the high-cost support mechanism from which distributions are to be made for the following calendar year; and (X) The total amount of distributions made from the high-cost support mechanism, directly or indirectly, and how they are balanced by rate reductions by all providers for the same period and a full accounting of and justification for any difference. (c) If the report submitted pursuant to paragraph (b) of this subsection (4) contains a proposal for an increase in any of the amounts listed in subparagraph (IX) of paragraph (b) of this subsection (4), the commission shall suspend the increase until March 31 of the following year. (5) There is hereby created, in the state treasury, the Colorado high-cost administration fund, referred to in this section as the "fund", which shall be used to reimburse the commission and its contractors for reasonable expenses incurred in the administration of the high-cost support mechanism as determined by rules of the commission. The general assembly shall annually appropriate the moneys in the fund to the commission for the direct and indirect administrative costs incurred by the commission and its contractors. At the end of each fiscal year, all unexpended and unencumbered moneys in the fund shall remain in the fund and shall not be credited or transferred to the general fund or any other fund. Each year, the commission shall determine the nondiscriminatory, competitively neutral assessment on all telecommunications service providers in Colorado that will be necessary to cover the cost of implementing and administering the high-cost support mechanism, based upon the high-cost support mechanism, the balance remaining in the fund, and the amount appropriated annually by the general assembly for use by the commission. The commission shall transmit the moneys from the assessment for administering the high-cost support mechanism to the state treasurer, who shall credit the same to the fund. All interest derived from the deposit and investment of the fund shall remain in the fund and shall not revert to the general fund. SECTION 2. 40-3.4-102, Colorado Revised Statutes, is amended to read: 40-3.4-102. Legislative declaration. The general assembly hereby finds, determines, and declares that the absence of basic local exchange telecommunications services, especially during time of emergency, presents a potential hazard and an unnecessary danger to human health and safety. Therefore, the general assembly declares it to be of vital importance to the public health, safety, and welfare that low-income individuals receive assistance that is adequate to insure ensure access to basic local exchange telecommunications services. The commission may regulate providers of telecommunications services to the extent necessary to assure that basic local exchange telecommunications service is provided to all eligible low-income consumers in the state. The general assembly acknowledges the use of low-income telephone assistance programs, including the federal "lifeline" and "link-up" programs, to further this goal. SECTION 3. 40-3.4-103 (1), Colorado Revised Statutes, is amended to read: 40-3.4-103. Definitions. As used in this article, unless the context otherwise requires: (1) "Basic local exchange telecommunications services" means any of the telecommunications services which provide a dial tone and local usage necessary to place or receive a call within an exchange area or local free calling area basic local exchange service as defined in section 40-15-102 (2), C.R.S. SECTION 4. 40-3.4-104, Colorado Revised Statutes, is amended to read: 40-3.4-104. Low-income telephone assistance authorization requirements. The general assembly hereby authorizes and directs the implementation of low-income telephone assistance programs. Such Providers of basic local exchange telecommunications services shall provide the programs shall be provided to certain low-income subscribers. by providers of basic local exchange telecommunications services. Such The programs shall consist of a twenty-five percent discount for a single local dial tone line and the flat rate usage charge in the principal residence of an eligible subscriber. Eligible subscribers who pay mileage charges associated with basic telephone service may be eligible for a twenty-five percent discount for these charges. In no event shall the discount provided be less than one-half of the end user common line charges imposed by the federal communications commission. All program plans shall be submitted to the federal communications commission for approval. SECTION 5. The introductory portion to 40-3.4-105 (1) and 40-3.4-105 (1) (a), Colorado Revised Statutes, are amended to read: 40-3.4-105. Low-income telephone assistance - eligibility. (1) Individuals An individual is eligible for low-income telephone assistance shall be those persons who if the person: (a) Are Is certified by the department of human services as qualified to receive financial assistance payments under at least one of the following programs: (I) An old age pension as set forth in section 26-2-111 (2), C.R.S.; (II) Aid to the needy disabled as set forth in section 26-2-111 (4), C.R.S.; (III) Aid to the blind as set forth in section 26-2-111 (5), C.R.S.; (IV) Supplemental security income benefits under the federal "Social Security Act", as amended, 42 U.S.C. sec. 1601 et seq.; (V) Colorado works assistance as set forth in section 26-2-706, C.R.S; (VI) Low-income home energy assistance benefits under the federal "Energy Policy Act of 2005", as amended, 42 U.S.C. sec. 8621 et seq.; (VII) Medicaid; or (VIII) Food assistance under federal food assistance programs. SECTION 6. 40-3.4-108 (1), Colorado Revised Statutes, is amended to read: 40-3.4-108. Funding - federal requirements - program participation - low-income telephone assistance fund. (1) The commission shall determine and impose a uniform charge on each business and residential access line in an amount sufficient to reimburse each provider of basic local exchange telecommunications services for its provision of low-income telephone assistance and to reimburse the commission and the department of human services for outreach and administrative expenses incurred under this article. The commission shall not impose the charge shall not be imposed on any state or local governmental body or on eligible subscribers. Each fiscal year, the commission, after considering any surplus revenues carried forward from the previous year, the commission shall adjust the amount of the charge as necessary to provide the assistance authorized in this article. Each provider of basic local exchange telecommunications services providing low-income telephone assistance shall collect the entire charge imposed on business and residential access lines as determined by the commission. The charge established by the commission pursuant to this subsection (1) shall not generate any additional profit for the providers of basic local exchange telecommunications services. SECTION 7. 40-3.4-110, Colorado Revised Statutes, is amended to read: 40-3.4-110. Applicability. This article shall apply to all providers of basic local exchange telecommunications services with more than five hundred thousand subscribers and certified to do business in the state. except that any such certified company with fewer subscribers may petition the commission for discounted rates for their subscribers eligible to receive low-income telephone assistance. SECTION 8. 6-1-903 (9), Colorado Revised Statutes, is amended to read: 6-1-903. Definitions. As used in this part 9, unless the context otherwise requires: (9) "Residential subscriber" means a person who has subscribed to residential telephone service with a local exchange provider, as defined in section 40-15-102, (18), C.R.S. "Person" also includes any other persons living or residing with such person. SECTION 9. 24-75-402 (5) (x), Colorado Revised Statutes, is amended to read: 24-75-402. Cash funds - limit on uncommitted reserves - reduction in amount of fees - exclusions. (5) Notwithstanding any provision of this section to the contrary, the following cash funds are excluded from the limitations specified in this section: (x) The Colorado high-cost administration fund created in section 40-15-208 (3) 40-15-306 (5), C.R.S.; SECTION 10. 29-11-101 (10), Colorado Revised Statutes, is amended to read: 29-11-101. Definitions. As used in this article, unless the context otherwise requires: (10) "Telecommunications service" has the meaning set forth in section 40-15-102 (29) (16), C.R.S. SECTION 11. 29-27-102 (6), Colorado Revised Statutes, is amended to read: 29-27-102. Definitions. As used in this article, unless the context otherwise requires: (6) "Telecommunications service" has the same meaning as set forth in section 40-15-102 (29) (16), C.R.S. SECTION 12. 30-20-603 (1) (a), Colorado Revised Statutes, is amended to read: 30-20-603. Improvements and funding authorized - how instituted - conditions. (1) (a) A district may be formed in accordance with the requirements of this part 6 for the purpose of constructing, installing, acquiring, or funding, in whole or in part, any public improvement, so long as the county that forms the district is authorized to provide such the improvement or provide for such the funding under the county's home rule charter, if any, or the laws of this state. Public improvements or the funding thereof shall of public improvements does not include any facility identified in section 30-20-101 (8) or (9). No such district shall provide the same improvement as an existing special district within the territory of such the existing special district unless the existing special district consents. The improvements authorized by this part 6 may consist, without limitation, of constructing, grading, paving, pouring, curbing, guttering, lining, or otherwise improving the whole or any part of any street or providing street lighting, drainage facilities, or service improvements, in the unincorporated area of a county or wholly or partly within the boundaries of any a municipality within the county if such the municipality consents by ordinance to such the improvements. If improvements within a municipality are so included in a county improvement district by municipal consent, the county shall have has full authority to construct or acquire such the improvements, to assess property within such the municipality benefited by such the improvements, and to enforce and collect such the assessments, in the manner provided in this part 6. The improvements authorized by this part 6 may include without limitation, the construction of sidewalks adjacent to any such streets or maintenance roads adjacent to any such the drainage facilities. Prior to the establishment of any an improvement district for the purpose of providing street lighting, arrangements, by contract or otherwise, must be established under which the owners of property included within such the district shall be responsible for the maintenance and operation of such the street lighting improvement. The costs of maintenance and operation of such the street lighting improvements shall not be paid from the county general fund. Drainage facilities shall not be provided in any an area which that is within an existing drainage district organized or created pursuant to law without the approval of such the district. The term "service" as used in this paragraph (a) includes the services provided by a public utility as defined in section 40-1-103, C.R.S., as well as advanced service as defined in section 29-27-102, (1), C.R.S., cable television service as defined in section 29-27-102, (2), C.R.S., telecommunications service as defined in section 40-15-102, (29), C.R.S., geothermal heat suppliers as defined in section 40-40-103, C.R.S., and information service as defined in 47 U.S.C. sec. 153 (20), or any successor section. SECTION 13. 38-5.5-102 (3), Colorado Revised Statutes, is amended to read: 38-5.5-102. Definitions. As used in this article, unless the context otherwise requires: (3) "Telecommunications provider" or "provider" means a person that provides telecommunications, service, as defined in section 40-15-102, (29), C.R.S., with the exception of cable services as defined by section 602(5) of the federal "Cable Communications Policy Act of 1984", 47 U.S.C. sec. 522(6), pursuant to authority granted by the public utilities commission of this state or by the federal communications commission. "Telecommunications provider" or "provider" does not mean a person or business using antennas, support towers, equipment, and buildings used to transmit high power over-the-air broadcast of AM and FM radio, VHF and UHF television, and advanced television services, including high definition television. The term "telecommunications provider" is synonymous with "telecommunication provider". SECTION 14. The introductory portion to 40-3-104 (1) (c) (I) and 40-3-104 (1) (c) (I) (A), Colorado Revised Statutes, is amended to read: 40-3-104. Changes in rates - notice. (1) (c) (I) Such notice shall be given by filing with the commission and keeping open for public inspection new schedules stating plainly the changes to be made in the schedules then in force and the time when the changes will go into effect. Transportation and water utilities may be required to give additional notice in a manner and form set forth by commission order or commission rules. For public utilities other than transportation and water utilities, additional notice shall be is required prior to an increase or other change in any rate, fare, toll, rental, charge, classification, or service and may be made, at the option of the public utility, by any of the following methods: (A) Publication of a notice in each newspaper of general circulation in each county in which the public utility provides service, which notice shall be four columns wide and eleven inches high stating plainly the changes and shall be published once each week for two successive weeks during the first twenty days of the thirty-day period prior to the effective date of the increase or change. If notice is given by publication, public utilities other than those providing intrastate telecommunications services pursuant to section 40-15-104 (1) article 15 of this title shall also be required to include, with each regular billing statement mailed to affected customers during the first regular billing cycle following the filing of the application for an increase or other change, a bill insert containing the same information contained in the notice by newspaper publication. SECTION 15. 40-3-115 (2) (a), Colorado Revised Statutes, is amended to read: 40-3-115. Recovery of utility relocation costs. (2) (a) Notwithstanding the provisions of section 40-15-502 (3) (b) (I) to (3) (b) (V), any provision of law or of any rule of the commission to the contrary, local exchange providers of basic local exchange service subject to regulation pursuant to part 2, part 3, or part 5 of article 15 of this title may request authorization from the commission to recover the actual costs incurred for the relocation of infrastructure or facilities requested by the state or a political subdivision. Actual costs are the nonfacility costs incurred in the relocation plus the undepreciated amount of the facilities being replaced. Recovery of actual costs incurred for relocation is intended for those state and political subdivision requests that are determined by the commission to be beyond the normal course of business. SECTION 16. Effective date. This act shall take effect July 1, 2011. SECTION 17. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.