71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
HA to HB 2659
 
LC 2392/HB 2659-8
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2659
 
             By COMMITTEE ON ADVANCING E-GOVERNMENT
 
                             June 6
 
  On page 1 of the printed bill, line 2, after 'ORS' delete the
rest of the line and line 3 and insert '759.410.'.
  Delete lines 5 through 30 and delete pages 2 through 8 and
insert:
  '  { +  SECTION 1. + } ORS 759.410 is amended to read:
  ' 759.410. (1) It is the intent of the Legislative Assembly
that:
  ' (a) The State of Oregon cease regulation of
telecommunications carriers on a rate of return basis;
  ' (b) Telecommunications carriers subject to rate of return
regulation have the ability to opt out of rate of return
regulation;
  ' (c) A telecommunications carrier that opts out of rate of
return regulation under this section and ORS 759.405 shall be
subject to price cap regulation and the carrier under price cap
regulation shall continue to meet service quality requirements;
and
  ' (d) Telecommunications carriers that opt out of rate of
return regulation under this section and ORS 759.405 shall make
payments to the state to support the use of advanced
telecommunications services and to support deployment of advanced
telecommunications services.
  ' (2) A telecommunications carrier that elects to be subject to
this section and ORS 759.405 shall be subject to price regulation
as provided in this section and shall not be subject to any other
retail rate regulation, including but not limited to any form of
earnings-based, rate-based or rate of return regulation.
  ' (3) The price a telecommunications utility that elects to be
subject to this section and ORS 759.405 may charge for basic
telephone service shall be established by the Public Utility
Commission under ORS 759.425. Subject to ORS 759.415, the regular
tariff rate of intrastate switched access and retail
telecommunications services regulated by the commission, other
than basic telephone service, in effect on the date the carrier
elects to be subject to this section and ORS 759.405 shall be the
maximum price the telecommunications carrier may charge for that
service.
  ' (4) A telecommunications carrier that elects to be subject to
this section and ORS 759.405 may adjust the price for  { +
intrastate switched access or + } a regulated retail
telecommunications service between the maximum price established
under this section and a price floor equal to the sum of the
total service long run incremental cost of providing the service
for the nonessential functions of the service and the price that
is charged to other telecommunications carriers for the essential
functions. Basic telephone service shall not be subject to a
price floor.
  ' (5) The price for a new regulated retail telecommunications
service introduced by a telecommunications carrier within four
years after the date the carrier elects to be subject to this
section and ORS 759.405 shall be subject to a price floor test by
the commission to ensure that the service is not priced below the
sum of the total service long run incremental cost of providing
the service for the nonessential functions of the service and the
price that is charged to other telecommunications carriers for
the essential functions. Beginning on the date four years after
September 1, 1999, the price of a new telecommunications service
shall be subject to a price floor test by the commission to
ensure that the service is not priced below the total service
long run incremental cost of providing the service, without
regard to whether the service is considered essential or
nonessential.
  ' (6) A telecommunications carrier that elects to be subject to
this section and ORS 759.405 may package and offer any of its
retail telecommunications services with any other service at any
price, provided the following conditions apply:
  ' (a) Any regulated telecommunications service may be purchased
separately at or below the maximum price.
  ' (b) The price of the package is not less than the sum of the
price floors of each regulated retail telecommunications service
included in the package.
  ' (c) The price of a package that is comprised entirely of
regulated retail telecommunications services does not exceed the
sum of the maximum prices for each of the services.
  ' (d) The price of a package comprised of regulated and
unregulated retail telecommunications services does not exceed
the sum of the maximum prices established under this section for
regulated services and the retail price charged by the carrier
for the individual unregulated services in the package. A
telecommunications carrier subject to regulation under this
section shall provide notice to the commission within 30 days of
a change in the price of an unregulated telecommunications
service contained in the package.
  ' (7) Nothing in this section or ORS 759.405 is intended to
limit the ability of a telecommunications carrier to seek
deregulation of telecommunications services under ORS 759.030.
  ' (8)(a) Notice of a price change authorized under subsection
(4) of this section, of the introduction of a new regulated
telecommunications service or of the packaging of services, must
be given to the commission within 30 days following the effective
date of the price change, new service or packaged service. Notice
of a new regulated telecommunications service shall indicate the
retail price charged by the carrier for the service.
  ' (b) The commission may investigate any price change
authorized under subsection (4) of this section, the price of a
new regulated telecommunications service or the price of a
package of services to determine that the price complies with the
provisions of this section and any other applicable law. If the
commission determines that the price of the service or package of
services does not comply with the provisions of this section or
other applicable law, the commission may order the
telecommunications carrier to take such action as the commission
determines necessary to bring the price into compliance with this
section or other applicable law.
  ' (9) Nothing in this section affects the authority of a city
or municipality to manage the public rights of way or to require
fair and reasonable compensation from a telecommunications
carrier, on a competitively neutral and nondiscriminatory basis,
under ORS 221.420, 221.450, 221.510 and 221.515.
  '  { +  (10) Notwithstanding any other provision of this
section, the commission shall establish prices for extended area
service in a manner that allows a telecommunications carrier that
elects to be subject to this section and ORS 759.405 to recover
all costs and lost net revenues attributable to implementing new
extended area service routes. The provisions of this subsection
apply to telecommunications service provided on a flat or
measured basis between exchanges defined by exchange maps filed
with and approved by the commission. + }
  '  { +  SECTION 2. + }  { + The amendments to ORS 759.410 by
section 1 of this 2001 Act apply to all telecommunications
carriers that elect to be subject to ORS 759.405 and 759.410,
whether they make that election before, on or after the effective
date of this 2001 Act. + } ' .
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