HOUSE Amended 3rd Reading April 19, 2013 HOUSE Amended 2nd Reading April 18, 2013First Regular Session Sixty-ninth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 13-0364.01 Jennifer Berman x3286HOUSE BILL 13-1255 HOUSE SPONSORSHIP Williams and Murray, Priola, Buck, Buckner, Conti, DelGrosso, Dore, Exum, Gardner, Gerou, Ginal, Hamner, Holbert, Hullinghorst, Joshi, Kagan, Kraft-Tharp, Landgraf, Lawrence, Lebsock, May, McLachlan, McNulty, Melton, Mitsch Bush, Moreno, Navarro, Nordberg, Pabon, Pettersen, Primavera, Rankin, Ryden, Salazar, Schafer, Sonnenberg, Stephens, Swalm, Szabo, Tyler, Waller, Wilson, Wright, Young SENATE SPONSORSHIP Kerr and Scheffel, Balmer, Baumgardner, Brophy, Cadman, Crowder, Grantham, Harvey, Heath, Hill, Hodge, Jahn, Johnston, Kefalas, King, Lundberg, Marble, Newell, Renfroe, Steadman, Tochtrop, Todd House Committees Senate Committees Business, Labor, Economic, & Workforce Development A BILL FOR AN ACT Concerning the exemption of certain internet protocol-enabled services from oversight by the public utilities commission. 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 clarifies that certain internet protocol-enabled services, including voice-over-internet protocol services, are exempt from regulation. The bill also explains that it does not affect the public utilities commission's authority with respect to the following: Wholesale rates, services, and agreements among telecommunications service providers; and The aggregation and transport of emergency 911 service provided by basic emergency service providers. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 40-15-102, amend (3), (10), and (29); and add (4.5), (14.5), and (32) as follows: 40-15-102. Definitions. As used in this article, unless the context otherwise requires: (3) "Basic local exchange service" or "basic service" means the telecommunications service which that provides: (a) A local dial tone; line; and (b) Local usage necessary to place or receive a call within an exchange area; and any other services or features that may be added by the commission under section 40-15-502 (2). (c) Access to emergency, operator, and interexchange telecommunications services. (4.5) "Commercial mobile radio service" or "CMRS" means cellular or wireless service, personal communications service, paging service, radio common carrier service, radio mobile service, or enhanced specialized mobile radio service. (10) "Informational Information services" means nonstandard services provided to customers by means of personnel and facilities which include personalized intercept, synthesized voice messages, specialized bill services, and personalized number services has the same meaning as set forth in 47 U.S.C. sec. 153. (14.5) "Internet protocol-enabled service" or "IP-enabled service" means a service, functionality, or application, other than voice-over internet protocol, that uses internet protocol or a successor protocol and enables an end user to send or receive a voice, data, or video communication in internet protocol format or a successor format, utilizing a broadband connection at the end user's location. (29) "Telecommunications service" and "telecommunications" means the electronic or optical transmission of information between separate points by prearranged means have the same meaning as set forth in 47 U.S.C. sec. 153. (32) (a) "Voice-over-internet protocol service" or "VoIP service" means a service that: (I) Enables real-time, two-way voice communications originating from or terminating at a user's location in internet protocol or a successor protocol; (II) Utilizes a broadband connection from the user's location; and (III) Permits a user to generally receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. (b) A service is not a voice-over-internet protocol service if it: (I) Uses ordinary customer premises equipment without enhanced functionality; (II) Originates and terminates on the public switched telephone network; (III) Does not undergo a net protocol conversion; and (IV) Does not provide end users with enhanced functionality based on the provider's use of internet protocol technology. SECTION 2. In Colorado Revised Statutes, 40-15-401 amend (1) (b), (1) (c), (1) (i), and (1) (k); repeal (1) (d); and add (1) (q), (1) (r), (1.5), (2), (3), (3.5), (4), and (5) as follows: 40-15-401. Services, products, and providers exempt from regulation. (1) The following products, services, and providers are exempt from regulation under this article or under the "Public Utilities Law" of the state of Colorado: (b) Cellular telecommunications services Basic service; except that: (I) In geographic areas where the commission provides a high cost support mechanism for basic service pursuant to sections 40-15-208 and 40-15-502 (5) and in geographic areas where the federal communications commission provides a high cost support mechanism pursuant to 47 U.S.C. sec. 254, the commission retains authority to designate providers of last resort pursuant to section 40-15-502 (6) and determine a maximum allowable price for basic service pursuant to section 40-15-502 (3) (b), if the commission does not place the obligations on a provider that does not receive federal or state high cost support mechanism funding for those geographic areas; and (II) Providers of basic service remain subject to the following fees and surcharges: (A) High cost support mechanism assessments calculated pursuant to section 40-15-502 (5) (a); (B) Emergency service surcharges assessed pursuant to part 1 of article 11 of title 29, C.R.S., to support 911 service; and (C) Telecommunications relay service charges assessed pursuant to article 17 of title 40; (c) Commercial mobile radio service services; (d) Radio paging service; (i) Informational Information services; (k) Advanced features; offered and provided to nonresidential customers with more than five lines; (q) Internet protocol-enabled services; and (r) Voice-over-internet protocol service. (1.5) Nothing in this section affects, modifies, or expands: (a) An entity's obligations under sections 251 and 252 of the federal "Communications Act of 1934", as amended and codified in 47 U.S.C. sec. 251 and 252; (b) Any commission authority over wholesale telecommunications rates, services, agreements, providers, or tariffs; or (c) Any commission authority addressing or affecting the resolution of disputes regarding intercarrier compensation. (2) Nothing in this section affects, modifies, or expands any commission authority over basic emergency service or any basic emergency service provider's obligation to provide basic emergency service in accordance with applicable state and federal laws and rules. (3) If a telecommunications service or product is not defined in part 1 of this article and is not already classified under part 2 or 3 of this article, the telecommunications service or product is classified as a deregulated telecommunications service under this part 4. (3.5) Nothing in House Bill 13-1255, enacted in 2013, shall be construed to address current 911 or next generation 911 services, which shall be subject to separate study by the general assembly during the 2013 interim. (4) This section does not affect the establishment or enforcement of standards, requirements, or procedures, including procurement policies, applicable to any department, agency, commission, or political subdivision of the state, or to the employees, agents, or contractors of a department, agency, commission, or political subdivision of the state, relating to the protection of intellectual property. (5) Nothing in this section affects, modifies, or expands the eligibility requirements for the receipt of state or federal financial assistance through a high cost support mechanism. SECTION 3. 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.April 19, 2013