First Regular Session
Sixty-second General Assembly
LLS NO. 99-0421.01 Robert Neill HOUSE BILL 99-1363
STATE OF COLORADO
BY REPRESENTATIVES Taylor, George, Alexander, Dean, Hoppe,
Johnson, Kester, Larson, Miller, Smith, Webster, and Young;
also SENATORS Blickensderfer, Dennis, Dyer, Hillman, and
Wattenberg.
BUSINESS AFFAIRS & LABOR
A BILL FOR AN ACT
101 CONCERNING THE CONDITIONS UNDER WHICH LOCAL EXCHANGE
102 TELECOMMUNICATIONS PROVIDERS COMPETE IN COLORADO.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Requires every provider holding a certificate to provide or lawfully
providing without a certificate local exchange service to offer and provide
both residential and business exchange service in its operating area.
Conditions certificates of public convenience and necessity to
provide basic local exchange service upon a requirement that the
applicant offer and provide basic local exchange service to all customers,
residential and business, in the service area covered by the certificates of
public convenience and necessity.
With respect to local access and transport areas (LATA's), exempts
InterLATA toll and IntraLATA toll from pricing and rate regulation until
July 1, 2001, at which time InterLATA and IntraLATA toll shall be
exempt from regulation by the Public Utilities Commission (PUC).
Exempts directory assistance and private line service, except analog
private line service with the capacity of less than 24 voice grade circuits
from regulation. Such analog private line services shall be exempt from
pricing and rate regulation until July 1, 2001, when such services shall
become exempt from regulation by the PUC.
Provides for the continued availability of toll service to rural areas
of the state on a competitive basis.
Repeals provisions concerning the time period for consideration
of deregulation of emerging competitive telecommunications services.
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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Provides that telecommunications traffic that does not terminate
within a provider's local calling area, but is instead delivered to another
carrier for further delivery outside the originating local calling area, shall
not be subject to reciprocal compensation.
Requires all intrastate toll providers to incorporate into their
intrastate toll rates identical statewide intrastate switched access rates
where the commission determines that incorporation of switched access
rates into toll prices is necessary.
Repeals provisions regarding issues to be addressed by the PUC
in implementing H.B. 95-1335. Repeals provisions concerning the
review of private line services.
Clarifies provisions requiring filing of rate schedules to eliminate
overbroad and outdated requirements.
Requires the PUC to establish additional universal support
mechanisms to ensure that services generally available in the urban areas
of the state will also be made available to the rural areas of the state
within 4 years in order to ensure the wide availability of high-quality
telecommunications services throughout the state, increase the choices
available to Colorado consumers, and thereby enhance Colorado's
economic development.
Requires settlement proceeds from proceedings before the PUC
that are targeted for facility investment to be invested in a manner to
balance the needs of urban and rural areas of Colorado.
Reduces regulatory burdens on small local exchange companies
and other providers seeking alternative forms of regulation.
Requires the PUC to permit providers regulated by forms of price
regulation other than rate-of-return regulation to determine depreciation
methods, procedures, and rates using generally accepted accounting
principles in their regulated books of account and for the determination
of useful lives.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Legislative declaration. (1) The general assembly
3 hereby finds, determines, and declares that it is the policy of the state of
4 Colorado to promote a competitive telecommunications marketplace to
5 bring the benefits of competition to all citizens of Colorado while
6 protecting, developing, and maintaining the wide availability of
7 high-quality telecommunications services. The general assembly further
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1 finds that the technological advancements and increased customer choices
2 for telecommunications services generated by such market competition
3 will enhance Colorado's economic development and play a critical role
4 in Colorado's economic future. However, the general assembly
5 recognizes that the strength of competitive forces varies widely between
6 markets and products and services. Therefore, to foster, encourage, and
7 accelerate the continuing emergence of a competitive telecommunications
8 environment, the general assembly declares that flexible regulatory
9 treatments are appropriate for different telecommunications services.
10 (2) The general assembly further finds, determines, and declares
11 that:
12 (a) Wise public policy relating to the telecommunications industry
13 and the other crucial services it provides is in the interest of Colorado and
14 its citizens;
15 (b) Sound and well-informed decisions need to be made on a
16 continuing basis to ensure that the benefits of existing and new
17 telecommunications services continue to be available to the greatest
18 number of Colorado citizens;
19 (c) It is in the public interest and it is the intention of this act to
20 promote free and fair competition in the provision of such goods and
21 services; and
22 (d) The rural nature of Colorado requires that special rules and
23 support mechanisms be adopted to achieve the goal of ensuring that
24 universal basic local exchange service be available to all residents of the
25 state at reasonable rates.
26 (3) The general assembly acknowledges the goal of universal
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1 access to advanced service to all telecommunications consumers in this
2 state. The general assembly also recognizes that all services generally
3 available in the urban areas of the state should be available to the rural
4 areas of the state within a reasonable time after such services are made
5 available in urban areas. The general assembly recognizes the importance
6 of establishing additional support mechanisms, if necessary, to ensure
7 that rural areas achieve these services. In order to further ensure the wide
8 availability of high-quality services provided by telecommunications
9 providers statewide and thereby enhance Colorado's economic
10 development, the general assembly finds that any settlement proceeds
11 agreed to be invested by any provider in improvements to that provider's
12 telecommunications facilities should be invested in such a manner to
13 balance the needs of all Colorado residents.
14 SECTION 2. 40-3-103, Colorado Revised Statutes, is amended
15 to read:
16 40-3-103. Utilities to file rate schedules. Under such rules and
17 regulations as the commission may prescribe, every public utility EXCEPT
18 THOSE UTILITIES SUBJECT TO OR EXEMPT FROM REGULATION UNDER
19 ARTICLE 15 OF THIS TITLE shall file with the commission, within such time
20 and in such form as the commission may designate, and shall print and
21 keep open to public inspection, schedules showing all rates, tolls, rentals,
22 charges, and classifications collected or enforced, or to be collected and
23 enforced, together with all APPLICABLE rules, regulations, contracts,
24 privileges, and facilities which in any manner affect or relate to rates,
25 tolls, rentals, classifications, or service; except that the commission may
26 not prescribe by rule or regulation the lease rate that is charged to a driver
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1 of a motor vehicle by a common or contract carrier. Changes in such
2 lease rates shall not be subject to the notice provision of section
3 40-3-102.
4 SECTION 3. 40-15-102 (20), Colorado Revised Statutes, is
5 amended, and the said 40-15-102 is further amended BY THE
6 ADDITION OF THE FOLLOWING NEW SUBSECTIONS, to read:
7 40-15-102. Definitions. As used in this article, unless the context
8 otherwise requires:
9 (19.7) "OPERATING AREA" MEANS THE SPECIFIC GEOGRAPHIC AREA
10 IN WHICH A PROVIDER OF LOCAL EXCHANGE TELECOMMUNICATIONS
11 SERVICES IS AUTHORIZED BY THE COMMISSION TO EXERCISE THE RIGHTS
12 AND PRIVILEGES GRANTED PURSUANT TO A CERTIFICATE OF PUBLIC
13 CONVENIENCE AND NECESSITY OR IS LAWFULLY PROVIDING SERVICE
14 WITHOUT A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.
15 (20) "Operator services" means services, OTHER THAN DIRECTORY
16 ASSISTANCE, provided either by live operators or by the use of recordings
17 or computer-voice interaction to enable customers to receive
18 individualized and select telephone call processing or specialized or
19 alternative billing functions. "Operator services" includes nonoptional
20 operator services, optional operator services and operator services
21 necessary for the provision of basic local exchange service.
22 (24.5) "RURAL TELECOMMUNICATIONS PROVIDER" MEANS A LOCAL
23 EXCHANGE PROVIDER THAT:
24 (a) PROVIDES COMMON CARRIER SERVICES TO ANY LOCAL
25 EXCHANGE CARRIER STUDY AREA, AS USED IN THE COMMISSION RULES
26 THAT DOES NOT INCLUDE EITHER:
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1 (I) ANY INCORPORATED PLACE OF TEN THOUSAND INHABITANTS OR
2 MORE; OR
3 (II) ANY TERRITORY INCLUDED IN AN URBANIZED AREA AS DEFINED
4 BY THE BUREAU OF THE CENSUS;
5 (b) PROVIDES SERVICE TO FEWER THAN FIFTY THOUSAND ACCESS
6 LINES;
7 (c) PROVIDES SERVICE TO ANY LOCAL EXCHANGE CARRIER STUDY
8 AREA, AS USED IN THE COMMISSION RULES WITH FEWER THAN ONE
9 HUNDRED THOUSAND ACCESS LINES; OR
10 (d) HAS LESS THAN FIFTEEN PERCENT OF ITS ACCESS LINES IN
11 COMMUNITIES OF MORE THAN FIFTY THOUSAND.
12 SECTION 4. 40-15-105 (2), Colorado Revised Statutes, is
13 amended to read:
14 40-15-105. Nondiscriminatory access charges. (2) At its
15 option, any local exchange provider with fifty thousand or fewer access
16 lines RURAL TELECOMMUNICATIONS PROVIDER may, in lieu of the
17 provisions of subsection (1) of this section, remain under the jurisdiction
18 of the commission pursuant to part 2 of this article. A local exchange
19 RURAL TELECOMMUNICATIONS provider operating under this subsection
20 (2) may at any time apply to the commission for regulatory relief under
21 section 40-15-203 or 40-15-207. Any such local exchange RURAL
22 TELECOMMUNICATIONS provider, upon the granting of regulatory relief,
23 shall provide access services under the conditions established in
24 subsection (1) of this section; except that the commission shall set the
25 maximum price for access services for such provider.
26 SECTION 5. 40-15-106, Colorado Revised Statutes, is amended
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1 to read:
2 40-15-106. Cross-subsidization prohibited - illegal restraint of
3 trade. The price of telecommunications services or products which THAT
4 are not subject to the jurisdiction of the commission shall not be priced
5 below cost by use of subsidization from customers of services and
6 products subject to the jurisdiction of the commission, and any such
7 cross-subsidization is deemed to be an illegal restraint of trade subject to
8 the provisions of article 4 of title 6, C.R.S.; EXCEPT THAT THE SUPPORT
9 MECHANISMS ESTABLISHED BY THE COMMISSION PURSUANT TO SECTION
10 40-15-502 (4) SHALL BE EXEMPT FROM THIS SECTION.
11 SECTION 6. 40-15-109 (1), Colorado Revised Statutes, is
12 amended to read:
13 40-15-109. Assurance of interconnections - averaging of rates.
14 (1) If a local exchange provider does not have interconnection with an
15 interexchange provider, the commission may order any provider of
16 interexchange service in the state to interconnect with the local exchange
17 provider. Nothing in this subsection (1) shall require a local exchange
18 provider with less than fifty thousand lines RURAL TELECOMMUNICATIONS
19 PROVIDER to provide interexchange telecommunications service.
20 SECTION 7. 40-15-111 (1), Colorado Revised Statutes, is
21 amended to read:
22 40-15-111. Regulation of the discontinuation or rearrangement
23 of basic local exchange service. (1) Every local exchange provider
24 HOLDING A CERTIFICATE TO PROVIDE OR LAWFULLY PROVIDING WITHOUT
25 A CERTIFICATE LOCAL EXCHANGE SERVICE shall continue to offer and
26 provide BOTH RESIDENTIAL AND BUSINESS basic local exchange service in
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1 any exchange area it serves immediately prior to July 2, 1996, unless the
2 commission determines that an alternative provider offers or provides
3 functionally equivalent service to the customers in such exchange area ITS
4 OPERATING AREA.
5 SECTION 8. Part 1 of article 15 of title 40, Colorado Revised
6 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
7 read:
8 40-15-113. Rate schedules. UNDER SUCH RULES AND
9 REGULATIONS AS THE COMMISSION MAY PRESCRIBE, EVERY PROVIDER OF
10 TELECOMMUNICATIONS SERVICES SHALL FILE WITH THE COMMISSION,
11 WITHIN SUCH TIME AND IN SUCH FORM AS THE COMMISSION MAY
12 DESIGNATE, SCHEDULES SHOWING ALL RATES, TOLLS, RENTALS, CHARGES,
13 AND CLASSIFICATIONS COLLECTED OR ENFORCED, OR TO BE COLLECTED
14 AND ENFORCED, TOGETHER WITH APPLICABLE RULES UNDER WHICH THE
15 PROVIDER PROVIDES REGULATED TELECOMMUNICATIONS SERVICES TO ITS
16 CUSTOMERS. EVERY PROVIDER OF TELECOMMUNICATIONS SERVICES
17 SHALL ALSO PRINT AND KEEP OPEN TO PUBLIC INSPECTION SUCH
18 SCHEDULES AND RULES. THIS SECTION SHALL NOT BE INTERPRETED TO
19 REQUIRE THE FILING OF SCHEDULES FOR PRODUCTS AND SERVICES THAT
20 ARE NOT REGULATED TELECOMMUNICATIONS SERVICES, INCLUDING, BUT
21 NOT LIMITED TO, MARKETING ARRANGEMENTS THAT AFFECT OR RELATE TO
22 REGULATED PRODUCTS OR SERVICES OFFERED AT PUBLICLY SCHEDULED
23 RATES.
24 SECTION 9. 40-15-203.5, Colorado Revised Statutes, is
25 amended to read:
26 40-15-203.5. Simplified regulatory treatment for rural
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1 telecommunications providers. The commission, with due consideration
2 of the public interest, quality of service, financial condition, and just and
3 reasonable rates, shall grant regulatory treatment which THAT is less
4 comprehensive than otherwise provided for under this article to small
5 local exchange providers that serve fewer than fifty thousand access lines
6 in the state RURAL TELECOMMUNICATIONS PROVIDERS. The commission
7 shall issue policy statements and rules and regulations which THAT
8 maintain reasonable regulatory oversight and that consider the cost of
9 regulation in relation to the benefit derived from such regulation. These
10 rules and regulations shall encourage the cost effective deployment and
11 use of modern telecommunications technology. All proposed rules
12 applicable to small local exchange RURAL TELECOMMUNICATIONS
13 providers which THAT come before the commission shall consider the
14 economic impact on small local exchange RURAL TELECOMMUNICATIONS
15 providers and their subscribers. The commission and small local
16 exchange RURAL TELECOMMUNICATIONS providers are encouraged to
17 work together in a cooperative and proactive fashion to implement this
18 section. Initial implementation of this section shall consist of a review of
19 the rules in existence on July 1, 1993, presentation of proposed changes
20 to the commission no later than January 1, 1994, and adoption of
21 simplified rules no later than June 30, 1994.
22 SECTION 10. 40-15-206 (1), Colorado Revised Statutes, is
23 amended to read:
24 40-15-206. Regulation of the discontinuation or rearrangement
25 of basic local exchange service - measured or message rate service not
26 required. (1) Every local exchange provider HOLDING A CERTIFICATE TO
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1 PROVIDE OR LAWFULLY PROVIDING WITHOUT A CERTIFICATE LOCAL
2 EXCHANGE SERVICE shall continue to offer and provide basic local
3 exchange service, BOTH RESIDENTIAL AND BUSINESS, in any exchange area
4 it serves immediately prior to July 2, 1987, unless the commission
5 determines that an alternative provider offers or provides functionally
6 equivalent service to the customers in such exchange area ITS OPERATING
7 AREA.
8 SECTION 11. 40-15-301 (2) (c), (2) (d), and (2) (f), Colorado
9 Revised Statutes, are amended, and the said 40-15-301 (2) is further
10 amended BY THE ADDITION OF A NEW PARAGRAPH, to read:
11 40-15-301. Regulation by the commission - repeal. (2) The
12 following telecommunications products, services, and providers are
13 declared to be initially subject to regulation pursuant to this part 3 and
14 subject to potential deregulation under section 40-15-305:
15 (c) (I) InterLATA toll, EXCEPT AS PROVIDED IN SECTION 40-15-401
16 (1) (m) AND SUBJECT TO THE PROVISIONS OF SECTION 40-15-309;
17 (II) THIS PARAGRAPH (c) IS REPEALED, EFFECTIVE JULY 1, 2001.
18 (d) (I) IntraLATA toll, subject to the provisions of section
19 40-15-306 EXCEPT AS PROVIDED IN SECTION 40-15-401 (1) (n) AND
20 SUBJECT TO THE PROVISIONS OF SECTION 40-15-309;
21 (II) THIS PARAGRAPH (d) IS REPEALED, EFFECTIVE JULY 1, 2001.
22 (f) Private line service, subject to the provisions of section
23 40-15-308;
24 (h) (I) ANALOG PRIVATE LINE SERVICE WITH THE CAPACITY OF LESS
25 THAN TWENTY-FOUR VOICE GRADE CIRCUITS, EXCEPT AS PROVIDED IN
26 SECTION 40-15-401 (1) (q).
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1 (II) THIS PARAGRAPH (h) IS REPEALED, EFFECTIVE JULY 1, 2001.
2 SECTION 12. 40-15-302 (5), Colorado Revised Statutes, is
3 amended to read:
4 40-15-302. Manner of regulation - rules and regulations.
5 (5) Consistent with the provisions of section 40-15-301 (1), rates for
6 nonoptional operator services shall allow the provider of such services the
7 opportunity to earn a just and reasonable return on the associated used
8 and useful investment, including but not limited to equipment costs
9 incurred to originate such services. Such rates shall be set at or below a
10 SINGLE STATEWIDE benchmark rate APPLICABLE TO ALL PROVIDERS as
11 determined by the commission, unless the commission approves a higher
12 rate. THE STATEWIDE BENCHMARK RATE SHALL APPLY TO ALL
13 NONOPTIONAL OPERATOR SERVICES REGARDLESS OF WHETHER SUCH
14 SERVICES ARE INTRALATA OR INTERLATA. If the commission approves
15 a rate higher than the benchmark rate, and the commission determines
16 that disclosure of the rate to customers is in the public interest, the
17 commission may require the nonoptional operator services provider to
18 orally disclose, to the person responsible for payment of the telephone
19 call, the total charges for the call and that such charges are higher than the
20 benchmark rate. The nonoptional operator services provider shall make
21 such disclosure at no charge to the caller and before the call is connected,
22 allowing the caller to disconnect before incurring any charges. If the
23 commission finds, after notice and opportunity for a hearing, that a
24 nonoptional operator services provider has violated this subsection (5),
25 the commission may, in addition to such other enforcement powers as
26 may be authorized in this title, order any regulated telecommunications
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1 service provider to block access to the nonoptional operator services
2 provider for all intrastate operator-handled calls. A regulated
3 telecommunications provider that blocks the access of a nonoptional
4 operator services provider in compliance with an order of the commission
5 and incurs attorney fees or costs to defend such action shall be entitled to
6 recover its costs and attorney fees in each such proceeding. The
7 commission shall promulgate rules necessary to implement this
8 subsection (5) no later than thirty days after August 7, 1996.
9 SECTION 13. Repeal. 40-15-305 (2), Colorado Revised
10 Statutes, is repealed as follows:
11 40-15-305. Time period for consideration of deregulation of
12 emerging competitive telecommunications service. (2) Any
13 telecommunications service or product not defined in part 1 of this article
14 or not already classified pursuant to parts 2 to 4 of this article shall be
15 classified as an emerging competitive telecommunications service under
16 this part 3.
17 SECTION 14. 40-15-306, Colorado Revised Statutes, is amended
18 to read:
19 40-15-306. IntraLATA interexchange services, interLATA
20 interexchange services, and operator services. IntraLATA
21 interexchange telecommunications services shall be regulated in
22 accordance with the provisions of this part 3; except that such services
23 shall not automatically be deregulated as part 4 services pursuant to
24 section 40-15-305 except upon application of the provider of such
25 services. No interexchange provider shall market intraLATA
26 interexchange telecommunications services without obtaining prior
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1 approval of the commission. An interexchange provider shall not be
2 required to compensate a local exchange provider for incidental
3 telecommunications services that occur after July 2, 1987 AND
4 INTERLATA INTEREXCHANGE SERVICES ARE DEREGULATED AS PROVIDED
5 IN SECTION 40-15-401 (1) (m) AND (1) (n); EXCEPT THAT THE COMMISSION
6 SHALL RETAIN JURISDICTION TO DESIGNATE A MINIMUM OF TWO OR MORE
7 INTRALATA INTEREXCHANGE TELECOMMUNICATIONS SERVICE PROVIDERS
8 AND TWO OR MORE INTERLATA INTEREXCHANGE TELECOMMUNICATIONS
9 SERVICE PROVIDERS TO PROVIDE SUCH SERVICES TO SUBSCRIBERS OF
10 RURAL TELECOMMUNICATIONS PROVIDERS THROUGHOUT THE STATE. THE
11 COMMISSION SHALL ONLY DESIGNATE TWO PROVIDERS IF REQUESTED TO
12 DO SO BY A RURAL LOCAL EXCHANGE PROVIDER WHOSE CUSTOMERS HAVE
13 FEWER THAN TWO INTRALATA INTEREXCHANGE TELECOMMUNICATIONS
14 SERVICE PROVIDER CHOICES. ALL SUCH SERVICES SHALL BE PROVIDED BY
15 THE DESIGNATED PROVIDERS TO SUBSCRIBERS OF RURAL
16 TELECOMMUNICATIONS PROVIDERS AT STATEWIDE LIST PRICES. THE
17 STANDARD PER-MINUTE LIST PRICE SHALL BE THE SAME IN RURAL
18 EXCHANGES AS IN NONRURAL EXCHANGES. OPTIONAL INTRALATA AND
19 INTERLATA INTEREXCHANGE TELECOMMUNICATIONS SERVICES SHALL BE
20 MADE AVAILABLE IN RURAL AREAS AND SHALL BE PRICED THE SAME AS IN
21 NONRURAL AREAS. ANY RURAL TELECOMMUNICATIONS PROVIDER
22 REQUESTING A NEW PLAN FROM ANY INTEREXCHANGE PROVIDER SHALL
23 BEAR THE COST OF CONFORMING ITS BILLING SYSTEM TO PROVIDE FOR THE
24 BILLING AND COLLECTION OF ANY SUCH NEW CALLING PLAN CUSTOMER
25 CHARGE.
26 SECTION 15. Repeal. 40-15-308, Colorado Revised Statutes,
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1 is repealed as follows:
2 40-15-308. Private line services. Private line services shall be
3 reviewed with all due haste pursuant to section 40-15-305.
4 SECTION 16. Part 3 of article 15 of title 40, Colorado Revised
5 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
6 read:
7 40-15-309. Incorporation of switched access rates. (1) TO
8 ENSURE THAT NO INTRASTATE TOLL PROVIDER CAN PLACE ANOTHER
9 INTRASTATE TOLL PROVIDER AT A COMPETITIVE DISADVANTAGE, IF THE
10 COMMISSION DETERMINES THAT INCORPORATION OF SWITCHED ACCESS
11 RATES INTO TOLL PRICES IS NECESSARY, ALL INTRASTATE TOLL PROVIDERS
12 SHALL INCORPORATE INTO THEIR INTRASTATE TOLL RATES AND CHARGES
13 IDENTICAL STATEWIDE INTRASTATE SWITCHED ACCESS RATES TO BE
14 DETERMINED BY THE COMMISSION. THE SWITCHED ACCESS RATES
15 REQUIRED TO BE INCORPORATED SHALL BE IDENTICAL FOR ALL PROVIDERS
16 AND SHALL BE APPLICABLE FOR ALL TOLL SERVICES, REGARDLESS OF
17 WHETHER SUCH SERVICES ARE INTRALATA OR INTERLATA.
18 (2) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2001.
19 SECTION 17. 40-15-401 (1), Colorado Revised Statutes, is
20 amended BY THE ADDITION OF THE FOLLOWING NEW
21 PARAGRAPHS to read:
22 40-15-401. Services, products, and providers exempt from
23 regulation. (1) The following products, services, and providers are
24 exempt from regulation under this article or under the "Public Utilities
25 Law" of the state of Colorado:
26 (m) INTERLATA TOLL, SUBJECT TO THE FOLLOWING RESTRICTION:
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1 INTERLATA TOLL SHALL BE EXEMPT FROM ALL REGULATION BY THE
2 COMMISSION ONLY FOR THE PURPOSES OF RATES AND PRICING, SUBJECT TO
3 THE PROVISIONS OF SECTION 40-15-309,UNTIL JULY 1, 2001, AT WHICH
4 TIME THIS RESTRICTION SHALL EXPIRE AND INTERLATA TOLL SHALL BE
5 EXEMPT FROM REGULATION UNDER THIS ARTICLE OR UNDER THE "PUBLIC
6 UTILITIES LAW" OF THE STATE OF COLORADO FOR ALL PURPOSES;
7 (n) INTRALATA TOLL, SUBJECT TO THE FOLLOWING RESTRICTION:
8 INTRALATA TOLL SHALL BE EXEMPT FROM ALL REGULATION BY THE
9 COMMISSION ONLY FOR THE PURPOSES OF RATES AND PRICING, SUBJECT TO
10 THE PROVISIONS OF SECTION 40-15-309, UNTIL JULY 1, 2001, AT WHICH
11 TIME THIS RESTRICTION SHALL EXPIRE, AND INTRALATA TOLL SHALL BE
12 EXEMPT FROM REGULATION UNDER THIS ARTICLE OR UNDER THE "PUBLIC
13 UTILITIES LAW" OF THE STATE OF COLORADO FOR ALL PURPOSES;
14 (o) DIGITAL PRIVATE LINE SERVICE;
15 (p) ANALOG PRIVATE LINE SERVICE WITH THE CAPACITY OF
16 TWENTY-FOUR OR MORE VOICE GRADE CIRCUITS;
17 (q) ANALOG PRIVATE LINE SERVICE WITH THE CAPACITY OF LESS
18 THAN TWENTY-FOUR VOICE GRADE CIRCUITS, SUBJECT TO THE FOLLOWING
19 RESTRICTIONS: ANALOG PRIVATE LINE SERVICE WITH A CAPACITY OF LESS
20 THAN TWENTY-FOUR VOICE GRADE CIRCUITS SHALL BE EXEMPT FROM ALL
21 REGULATION BY THE COMMISSION ONLY FOR THE PURPOSES OF RATES AND
22 PRICING UNTIL JULY 1, 2001, AT WHICH TIME THIS RESTRICTION SHALL
23 EXPIRE, AND ANALOG PRIVATE LINE SERVICE WITH A CAPACITY OF LESS
24 THAN TWENTY-FOUR VOICE GRADE CIRCUITS SHALL BE EXEMPT FROM
25 REGULATION UNDER THIS ARTICLE OR UNDER THE "PUBLIC UTILITIES LAW"
26 OF THE STATE OF COLORADO FOR ALL PURPOSES;
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1 (r) DIRECTORY ASSISTANCE.
2 SECTION 18. 40-15-502 (4) and (5) (a), Colorado Revised
3 Statutes, are amended to read:
4 40-15-502. Expressions of state policy. (4) Universal access to
5 advanced service. (a) The general assembly acknowledges the goal of
6 universal access to advanced service to all telecommunications consumers
7 in this state. The commission shall consider the impact of opening entry
8 to the local exchange market and shall determine whether ESTABLISH
9 additional support mechanisms may be necessary to promote this goal
10 ENSURE THAT ALL SERVICES GENERALLY AVAILABLE IN THE URBAN AREAS
11 OF THE STATE ARE AVAILABLE TO THE RURAL AREAS OF THE STATE if
12 competition for local exchange services fails to deliver advanced SUCH
13 services in all areas of the state IN NO LESS THAN FOUR YEARS AFTER SUCH
14 SERVICES BECOME GENERALLY AVAILABLE IN THE URBAN AREAS. IN
15 THOSE AREAS WHERE AN ADVANCED SERVICE IS NOT AVAILABLE WITHIN
16 FOUR YEARS AFTER THE COMMISSION DETERMINATION, THE PROVIDERS OF
17 LAST RESORT SERVING THOSE RURAL AREAS SHALL OFFER THE ADVANCED
18 SERVICE. IF A PROVIDER OF LAST RESORT SEEKS TO RECEIVE
19 REIMBURSEMENT FOR COSTS INCURRED FOR PROVISION OF ADVANCED
20 SERVICES TO RURAL AREAS, THOSE EXPENDITURES AND REIMBURSEMENTS
21 ARE SUBJECT TO COMMISSION APPROVAL AND SUPERVISION AND SHALL BE
22 SUBMITTED AND MADE CONSISTENT WITH INCREMENTAL DEPLOYMENT OF
23 THE ADVANCED SERVICES. SUCH ADDITIONAL SUPPORT MECHANISMS
24 SHALL ENSURE THAT A PROVIDER OF LAST RESORT WHO IS OFFERING SUCH
25 SERVICES SHALL RECEIVE SUPPORT AT A LEVEL SUFFICIENT TO COVER THE
26 PROVIDER'S ACTUAL COSTS INCURRED IN PROVIDING SUCH SERVICES.
Page 17
1 PROVIDERS SHALL BE UNDER NO OBLIGATION TO DEPLOY ANY ADVANCED
2 SERVICE UNTIL FULL COST RECOVERY HAS BEEN AUTHORIZED AND
3 IMPLEMENTED BY COMMISSION DECISION.
4 (b) THE COMMISSION SHALL, NO LATER THAN DECEMBER 31, 2000,
5 ISSUE AN INITIAL RULE-MAKING DECISION, WHICH DECISION SHALL
6 INCLUDE BUT NOT BE LIMITED TO PROVIDER ELIGIBILITY, REQUIREMENTS
7 FOR REIMBURSEMENT, ESTABLISHMENT OF AN ADVANCED SERVICES
8 SUPPORT MECHANISM, A TIMETABLE FOR SERVICE DEPLOYMENT BY
9 PROVIDERS OF ANY ADVANCED SERVICES DETERMINED TO BE GENERALLY
10 AVAILABLE IN URBAN AREAS, AND A COMMENCEMENT DATE FOR THE
11 IMPLEMENTATION AND COLLECTION OF THE ADVANCED SERVICES SUPPORT
12 MECHANISM CHARGE. ALSO NO LATER THAN DECEMBER 31, 2000, THE
13 COMMISSION SHALL CONDUCT A RULE-MAKING PROCEEDING TO DETERMINE
14 WHICH ADVANCED SERVICES ARE AT THAT TIME GENERALLY AVAILABLE IN
15 URBAN AREAS. SUCH SERVICES SHALL RECEIVE COST SUPPORT IN THE
16 RURAL AREAS.
17 (c) THE SUPPORT MECHANISMS CREATED PURSUANT TO THIS
18 SECTION SHALL BE EXEMPT FROM THE PROVISIONS OF SECTION 40-15-106.
19 (5) Universal service support mechanisms. (a) In order to
20 accomplish the goals of universal basic service, universal access to
21 advanced service, and any revision of the definition of basic service under
22 subsection (2) of this section, the commission shall create a system of
23 support mechanisms to assist in the provision of such services in
24 high-cost areas. These support mechanisms shall be funded equitably and
25 on a nondiscriminatory, competitively neutral basis through assessments,
26 which may include a rate element, on all telecommunications service
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1 providers in Colorado and shall be distributed equitably and on a
2 nondiscriminatory, competitively neutral basis. For purposes of
3 administering such support mechanisms, the commission shall divide the
4 state into reasonably compact, competitively neutral geographic support
5 areas. A provider's eligibility to receive support under the support
6 mechanisms shall be conditioned upon the provider's offering basic
7 service throughout an entire support area. The commission shall review
8 the costs of basic service and shall administer such support mechanisms.
9 IN ADDITION, IN ORDER TO FURTHER ENSURE THE WIDE AVAILABILITY OF
10 HIGH-QUALITY SERVICES PROVIDED BY TELECOMMUNICATIONS PROVIDERS,
11 INCREASE THE CHOICES AVAILABLE TO COLORADO CONSUMERS
12 STATEWIDE, AND THEREBY ENHANCE THE TELECOMMUNICATIONS
13 INFRASTRUCTURE PLATFORM AND COLORADO'S ECONOMIC DEVELOPMENT,
14 THE COMMISSION SHALL DIRECT THAT ANY SETTLEMENT PROCEEDS
15 AGREED TO BE INVESTED BY ANY PROVIDER IN IMPROVEMENTS TO THAT
16 PROVIDER'S TELECOMMUNICATIONS FACILITIES BE INVESTED IN BOTH
17 BASIC AND ADVANCED SERVICES IN SUCH A MANNER TO BALANCE THE
18 NEEDS OF URBAN AND RURAL AREAS.
19 SECTION 19. 40-15-503 (1), (2) (a), (2) (c), (2) (d), and (2) (e),
20 Colorado Revised Statutes, are amended, and the said 40-15-503 (2) is
21 further amended BY THE ADDITION OF A NEW PARAGRAPH, to
22 read:
23 40-15-503. Opening of competitive local exchange market -
24 process of negotiation and rule-making - issues to be considered by
25 commission. (1) Commencing on or before the effective date of this
26 section and concluding on or before January 1, 1996, members of the
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1 working group identified in section 40-15-504 shall meet and attempt to
2 reach consensus on proposed rules to be submitted to the commission for
3 consideration and adoption as appropriate to implement section
4 40-15-502 (1).
5 (2) (a) On or before January 1, 1996, The commission shall
6 initiate rule-making proceedings ADOPT RULES to implement section
7 40-15-502 (1). Rules adopted in such proceedings shall become effective
8 on or before July 1, 1996. The commission shall grant substantial
9 deference to the proposals submitted by the working group under
10 subsection (1) of this section in regard to issues on which the working
11 group reports it has reached consensus. Said rules shall be designed to
12 foster and encourage the emergence of a competitive telecommunications
13 marketplace and may include more active regulation of one provider than
14 another or the imposition of geographic limits or other conditions on the
15 authority granted to a provider. In addition, in adopting such rules, the
16 commission shall consider the differences between the economic
17 conditions of rural and urban areas.
18 (b.5) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE
19 OR THE "PUBLIC UTILITIES LAW" OF THE STATE OF COLORADO,
20 RECIPROCAL COMPENSATION FOR THE TRANSPORT AND TERMINATION OF
21 LOCAL TELECOMMUNICATIONS SERVICES SHALL ONLY BE LAWFUL FOR
22 TELECOMMUNICATIONS SERVICES THAT TERMINATE WITHIN AN
23 ORIGINATING PROVIDER'S LOCAL CALLING AREA. TELECOMMUNICATIONS
24 SERVICES SHALL NOT BE DEEMED TO TERMINATE, FOR PURPOSES OF
25 COMPENSATION, IF A CARRIER OR OTHER PERSON DELIVERS TRAFFIC TO
26 ANOTHER CARRIER OR OTHER PERSON FOR DELIVERY OUTSIDE THE
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1 ORIGINATING PROVIDER'S LOCAL CALLING AREA IRRESPECTIVE OF THE
2 TECHNOLOGY USED TO ACCOMPLISH, OR THE REGULATORY STATUS OF THE
3 ENTITY ACCOMPLISHING, SUCH FURTHER DELIVERY. THIS PARAGRAPH
4 (b.5) SHALL NOT BE APPLIED TO ALTER, MODIFY, OR OTHERWISE CHANGE
5 THE PROVISIONS OF SECTION 40-15-401 (1).
6 (c) (I) The commission shall consider changing CHANGE to forms
7 of price regulation other than rate-of-return regulation for any
8 telecommunications provider REQUESTING SUCH A CHANGE that provides
9 services regulated under part 2 or 3 of this article and shall consider the
10 UNDER conditions under which such a change may take place to THAT
11 ensure that telecommunications services continue to be available to all
12 consumers in the state at fair, just, and reasonable rates. This paragraph
13 (c) shall not be construed to limit the manner and methods of regulation
14 available under section 40-15-302.
15 (II) As used in this paragraph (c), "price regulation" means a form
16 of regulation that may contain, without limitation, any of the following
17 elements:
18 (A) Regulation of the price and quality of services;
19 (B) Price floors and price ceilings;
20 (C) Flexibility in pricing between price floors and price ceilings;
21 (D) Modified tariff requirements;
22 (E) Incentives for increased efficiency, productivity, and quality
23 of service.
24 (III) PROVIDERS REGULATED BY FORMS OF PRICE REGULATION
25 OTHER THAN RATE-OF-RETURN REGULATION SHALL BE PERMITTED TO
26 DETERMINE DEPRECIATION METHODS, PROCEDURES, AND RATES USING
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1 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR PURPOSES OF
2 RECORDING EXPENSES AND ACCRUALS ON THEIR REGULATED BOOKS OF
3 ACCOUNT. IN DETERMINING ACTUAL COSTS FOR THE PURPOSES OF SECTION
4 40-15-502 (4), DEPRECIATION METHODS, PROCEDURES, AND USEFUL LIVES
5 SHALL BE DETERMINED BY THE COMMISSION GIVING SUBSTANTIAL
6 DEFERENCE TO THE USEFUL LIVES DETERMINED BY THE PROVIDER, WHICH
7 DETERMINATION OF USEFUL LIVES SHALL BE CONSISTENT WITH GENERALLY
8 ACCEPTED ACCOUNTING PRINCIPLES.
9 (d) The commission shall adopt rules providing for simplified
10 regulatory treatment for basic local exchange providers that serve only
11 rural exchanges of ten thousand or fewer access lines RURAL
12 TELECOMMUNICATIONS PROVIDERS AS DEFINED IN SECTION 40-15-102
13 (24.5). Such simplified treatment may include, but shall not be limited
14 to, optional methods of regulatory treatment that reduce regulatory
15 requirements, reduce the financial burden of regulation, and allow pricing
16 flexibility. Such simplified treatment may also allow extensions of time
17 for the implementation of requirements under this part 5 in rural
18 exchanges for which there are no competing basic local exchange
19 providers certified.
20 (e) Applications for certificates of public convenience and
21 necessity to provide basic local exchange service pursuant to this
22 subsection (2) may be filed with the commission at any time after the
23 effective date of the rules required. A person that, on or before January
24 1, 1995, held a certificate of public convenience and necessity to provide
25 basic local exchange service under part 2 of this article and who still
26 holds such certificate shall continue to have such authority without
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1 having to apply to the commission for additional or continued authority.
2 No provider of local exchange services shall operate in this state without
3 a certificate of public convenience and necessity. CERTIFICATES OF
4 PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE BASIC LOCAL
5 EXCHANGE SERVICE SHALL BE CONDITIONED UPON A REQUIREMENT THAT
6 THE APPLICANT OFFER AND PROVIDE BASIC LOCAL EXCHANGE SERVICE TO
7 ALL CUSTOMERS, RESIDENTIAL AND BUSINESS, IN THE SERVICE AREA
8 COVERED BY THE CERTIFICATE OF PUBLIC CONVENIENCE.
9 SECTION 20. Safety clause. The general assembly hereby
10 finds, determines, and declares that this act is necessary for the immediate
11 preservation of the public peace, health, and safety.