HCS HB 495 -- LOCAL TELECOMMUNICATIONS CARRIERS

SPONSOR:  Bivins (Parson)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Energy and
Environment by a vote of 9 to 1.

This substitute changes the laws regarding local exchange voice
telecommunications carriers.  In its main provisions, the
substitute:

(1)  Relieves a local exchange carrier from its obligation to
provide basic local voice telecommunications service to a
greenfield area if the owner or developer of the property:

(a)  Allows an alternative service provider to install, based on
the condition of exclusion of the local exchange carrier,
facilities or equipment to provide local voice telecommunications
service;

(b)  Accepts or agrees to accept incentives or rewards from an
alternative service provider that are contingent upon the
provision of any or all local voice telecommunications services
by alternative service providers to the exclusion of the local
exchange carrier; or

(c)  Collects from the occupants or residents of the property
charges for the provision of any local voice telecommunications
service provided by an alternative service provider including
collection through rent, fees, or dues;

(2)  Requires, if a local exchange carrier is relieved of its
carrier of last resort obligation, the owner or developer of the
property to notify the occupants of the property and any
subsequent owners that the incumbent local exchange carrier does
not have facilities installed to serve their property and the
name of the person who will be providing the local communications
service;

(3)  Allows a local exchange carrier that is not automatically
relieved of its obligation to seek a waiver of its obligation
from the Missouri Public Service Commission if other local voice
telecommunications service is available on the property; and

(4)  Specifies the requirements and procedures for
re-establishing the obligation of local telecommunications
service by a local exchange carrier if the conditions that
terminated the obligation cease.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the bill will relieve a local
exchange carrier of obligations when certain owners or developers
contract with another company to provide the service.  The bill
will also conserve resources by not requiring companies to
establish and spend money on an infrastructure that will not be
used.

Testifying for the bill were Representative Parson; Missouri
Telecommunications Industry Association; Embarq; Centurytel;
AT&T; Windstream Communications, Incorporated; and Missouri Small
Telephone Companies Group.

OPPONENTS:  Those who oppose the bill say that these carriers are
subsidized to put this infrastructure in place and shifting the
burden to cable companies or alternative providers is not fair.
The bill effectively takes the Missouri Public Service Commission
out of the decision process.

Testifying against the bill was Missouri Cable Telecommunications
Association.

OTHERS:  Others testifying on the bill say changes to the bill
have been recommended.

Testifying on the bill was Missouri Public Service Commission.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am