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2004 SESSION

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HB 938 Telephone companies; local exchange service competition policy.

Introduced by: Terry G. Kilgore | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED HOUSE:

Telecommunications; competition policy. Directs the State Corporation Commission, in resolving issues and cases concerning local exchange telephone service under the federal Telecommunications Act or state law to consider it in the public interest, as appropriate, to treat all providers of local exchange telephone services in an equitable fashion and without undue discrimination and, to the greatest extent possible, apply the same rules to all providers of local exchange telephone services. The Commission is also required to consider it in the public interest, as appropriate, to promote competitive product offerings, investments, and innovations from all providers of such services in all areas of the Commonwealth and to reduce or eliminate any requirement to price retail and wholesale products and services at levels that do not permit providers of such services to recover their costs of those products and services.

SUMMARY AS INTRODUCED:

Telecommunications; basic services regulation. Creates a new form of regulation known as "basic services regulation." Telephone companies choosing to opt for such form of regulation would be required to offer basic services that are limited to one or more unbundled, single line, unlimited usage, residential, or business voice local exchange telephone services. Prices for these services shall be provided under tariff and cannot increase by more than 10 percent per year. After a transition period, such prices would be the same throughout the company’s local service territory. Telephone companies may set without filing tariffs nonrecurring prices for basic services. A telephone company opting into basic services regulation must offer under tariff a universal service plan guaranteeing low prices to recipients of Medicaid and food stamps. Network components of enhanced 911 services shall be offered under tariff at prices set by the telephone company. All other services may be offered without tariff at prices set by the telephone company. The State Corporation Commission (SCC) would retain authority to set rules governing (i) network service quality standards limited to those necessary to maintain the public health and safety; (ii) technical network and database standards of emergency 911 service; (iii) customer notice for tariffed rate changes and tariffed service withdrawals; (iv) disconnection of residential customers for nonpayment of local exchange service; and (v) customer deposits. The SCC would also retain authority to (i) review provisions not related to rates in tariffs; (ii) enforce the Underground Utility Damage Prevention Act; (iii) administer the Telecommunications Relay Service; and (iv) designate carriers of last resort that have responsibility to provide basic services to anyone in their service territory. The SCC would not retain any authority to (i) set rules to govern retail customer service standards; (ii) approve affiliate transactions; and (iii) approve equity and debt financing. The SCC would retain limited authority to handle customer complaints. There are no changes in the provision of wholesale services to competitors.