HCS HB 1779 -- TELECOMMUNICATIONS SERVICES (Emery)

COMMITTEE OF ORIGIN:  Committee on Utilities

This substitute changes the laws regarding telecommunications
services.  In its main provisions, the substitute:

(1)  Requires interconnected voice over Internet protocol (VOIP)
service to be registered with the Missouri Public Service
Commission in a manner similar to other telecommunications
providers;

(2)  Defines VOIP service based on the Federal Communications
Commission guidelines;

(3)  Allows the Missouri Public Service Commission to charge the
same exchange access fees to VOIP providers as it charges other
telecommunications providers;

(4)  Requires VOIP providers to charge, collect, and remit the
appropriate fees to fund the Universal Service Fund,
telecommunications relay services, and local enhanced 911; file
annual reports with the commission; and develop a process for
handling customer questions and complaints;

(5)  Reduces the number of days before a rate change becomes
effective for telecommunications services in competitive markets
and for retail business customers in noncompetitive markets;

(6)  Allows for the use of price caps in exchanges where VOIP
service is provided.  Price caps will be based upon the federal
Consumer Price Index.  Non-basic telecommunications services are
exempted from price caps.  Residential basic local
telecommunications service will be capped at $2.50 per line per
month for a period of four years;

(7)  Allows incumbent local exchange companies (ILECs) to set
maximum rates for basic local services in noncompetitive
exchanges based on specified criteria;

(8)  Allows ILECs to have competitive status in exchanges that
meet certain competitive criteria;

(9)  Allows ILECs to obtain rule and statute waivers in the same
manner as other regulated companies.  The commission may reimpose
quality of service and billing standards if it finds that the
ILEC has engaged in a pattern or practice of inadequate service;

(10)  Removes certain customer billing, engineering, maintenance,
and service objective requirements.  The commission will be
allowed to reinstate the requirements in emergencies and other
situations specified in the substitute;

(11)  Requires the commission to maintain records of competitive
companies, changes review of competitive status from mandatory to
discretionary, and specifies new criteria for maximum allowable
prices in exchanges that are not deemed competitive;

(12)  Requires the commission to determine a price-cap company to
be competitive if 55% or more of its subscriber-access lines are
in competitive exchanges.  Rates for basic local service in
formerly noncompetitive exchanges are capped at the highest rate
for basic local service in the ILEC's competitive exchanges for
three years following the finding;

(13)  Allows price-cap companies to rebalance rates on a revenue
neutral basis.  ILECs may raise basic local rates up to $1.50 per
month each year but must reduce intrastate access rates to
exactly offset the increase;

(14)  Allows all companies an alternative method for gaining
competitive classification for individual services on a
company-wide basis.  A company may also gain competitive status
as a whole if a majority of its services are declared
competitive;

(15)  Eliminates certification requirements for certain small,
rural areas served by an ILEC;

(16)  Allows the commission to investigate and resolve customer
complaints based on federal laws and regulations;

(17)  Establishes a price cap on incumbent local exchange
companies when they are classified as competitive so that they
cannot raise the exchange access service rates charged to other
carriers;

(18)  Allows alternative local exchange carriers that possess a
certificate of service authority to provide basic local
telecommunications service to be granted statewide authorization;
and

(19)  Allows market pricing for intrastate operator and directory
services including directory assistance services.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm