CHAPTER........
AN ACT relating to telecommunication services; providing for the alternative regulation of
incumbent local exchange carriers; providing for the reclassification of basic
network services provided by such carriers; requiring the public utilities commission
of Nevada to establish standards of performance and reporting relating to the
provision of local telecommunication services; providing an expedited procedure to
resolve certain disputes between providers of telecommunication services; and
providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 704 of NRS is hereby amended by adding thereto
the provisions set forth as sections 2 to 26, inclusive, of this act.
Sec. 2.
As used in sections 2 to 22, inclusive, of this act, unless thecontext otherwise requires, the words and terms defined in sections 3 to
12, inclusive, of this act have the meanings ascribed to them in those
sections.
Sec. 3.
"Affected person" means:1. A public utility affected by an action of an electing carrier or an
action of the commission relating to an electing carrier;
2. A person whose utility service or rates are affected by an action of
an electing carrier or an action of the commission relating to an electing
carrier;
3. A competitive supplier; or
4. The bureau of consumer protection in the office of the attorney
general.
Sec. 4.
"Basic network service" means the provision of any of thefollowing services, unless the service has been reclassified as a
competitive, discretionary or other essential service by the commission
pursuant to section 16 of this act:
1. Farmer line service;
2. Flat rate service for residential lines;
3. Measured rate service for residential lines;
4. Flat rate service for residential trunk lines;
5. Flat rate service for business lines;
6. Measured rate service for business lines;
7. Flat rate service for business trunk lines;
8. Measured rate service for business trunk lines;
9. Suburban service access lines;
10. Toll station service access lines;
11. Universal lifeline service access lines;
12. Access to emergency 911 service; and
13. The first single-line directory listing.
Sec. 5.
"Competitive service" means:1. Any telecommunications service which is classified as a
competitive service or a nonregulated service by regulation of the
commission, or which is reclassified as a competitive service pursuant to
section 16 of this act; and
2. The intraLATA toll services of an electing carrier.
Sec. 6.
"Competitive supplier" means a person who:1. Is a competitor of an electing carrier with respect to a service
performed by the electing carrier; or
2. Wants to enter into competition with an electing carrier.
Sec. 7.
"Discretionary service" means any telecommunicationsservice which is not otherwise classified as a basic network service, a
competitive service or any other essential service, or which is reclassified
as a discretionary service pursuant to section 16 of this act.
Sec. 8.
"Electing carrier" means an incumbent local exchangecarrier regulated under an alternative plan of regulation pursuant to
NRS 704.040 that has elected also to be regulated pursuant to sections 2
to 22, inclusive, of this act by filing with the commission a statement
pursuant to section 13 of this act.
Sec. 9.
"Incumbent local exchange carrier" has the meaningascribed to it in 47 U.S.C. § 251(h)(1), as that section existed on October
1, 1999, and includes a local exchange carrier that is treated as an
incumbent local exchange carrier pursuant to that section.
"Local area of transport and access" or "LATA" means anarea within which a provider of telecommunication services may operate
pursuant to the order in United States v. American Telephone and
Telegraph Co., 552 F. Supp. 131 (D.C. 1982). The term is equivalent to
"local access and transport area" as used in that order.
Sec. 11.
"Other essential service" means any telecommunicationsservice that is classified as other essential service by regulation of the
commission.
Sec. 12.
"Price floor" means the minimum price of a service usingcost-based standards as determined by the commission by regulation.
Sec. 13.
An incumbent local exchange carrier that is regulatedunder an alternative plan of regulation pursuant to NRS 704.040 may
elect also to be regulated pursuant to sections 2 to 22, inclusive, of this
act by filing with the commission a statement of its election to be so
regulated.
Sec. 14.
1. An electing carrier is not subject to any review ofearnings, monitoring of the rate base, or any other regulation by the
commission relating to the net income or rate of return of the electing
carrier, unless the electing carrier files with the commission a request to:
(a) Terminate its participation in the alternative plan of regulation
pursuant to NRS 704.040; or
(b) Continue its participation in the alternative plan of regulation
2. Except as otherwise provided in subsection 1, the commission
shall not consider the rate of return, rate base or any other earnings of
the electing carrier in connection with any change in rates.
3. Except for an electing carrier that files a request with the
commission pursuant to subsection 1, the commission shall not decrease
the rate of a basic network service provided by the electing carrier unless
the electing carrier agrees to the decrease in the rate.
4. Except for a telecommunications service reclassified pursuant to
section 16 of this act, or except where an electing carrier elects to
continue participation in an alternative plan of regulation pursuant to
paragraph (b) of subsection 1, an electing carrier shall not increase any
rate that the electing carrier charges for basic network services.
5. Except for universal service support for lifeline or link-up services
provided pursuant to 47 U.S.C. § 214 or as otherwise determined by the
commission, an electing carrier is not eligible to receive money from the
fund created pursuant to subsection 7 of NRS 704.040.
Sec. 15.
Nothing in sections 2 to 22, inclusive, of this act authorizesan electing carrier, without the approval of the commission, to
discontinue or otherwise change the terms and conditions relating to the
provision of the basic network services identified in subsections 1 to 4,
inclusive, of section 4 of this act, as set forth in the tariffs of the electing
carrier that are in effect on October 1, 1999.
Sec. 16.
1. The commission may, at any time, upon its own motionor that of any person, reclassify a basic network service, except access to
emergency 911 service.
2. The commission shall establish by regulation criteria for
determining whether a service should be reclassified, except that the
commission shall not adopt criteria for determining whether a service
should be reclassified that would deny a request to reclassify a basic
network service to another classification of service within an exchange
where a competitive supplier operates and provides that service, on the
basis that there is not a competitive supplier of that service in any other
portion of the state.
Sec. 17.
1. An electing carrier may, pursuant to this section and inaccordance with section 20 of this act, exercise flexibility in the pricing
of:
(a) Competitive services and discretionary services. The commission
shall not specify a maximum rate for any competitive services or
discretionary services of the electing carrier. The electing carrier shall,
with regard to any competitive or discretionary service that it provides, set
the price of that service above the price floor of the service.
(b) A package of services, which may include basic network services,
competitive services, discretionary services and other essential services.
2. Except as otherwise provided in this subsection, an electing carrier
may, upon 30-days’ notice to the commission in writing, exercise
flexibility in the pricing of its services pursuant to subsection 1 and is
exempt, with respect to the pricing of its services, from the provisions of
NRS 704.110 and the regulations of the commission relating thereto. The
notice must include a description in reasonable detail of:
(a) The characteristics of the services that will be subject to flexibility
in pricing;
(b) The terms and conditions applicable to the services;
(c) The nature of any limitations on the duration or geographical
availability of the services;
(d) The price or prices of the services or packages of services; and
(e) A certificate which provides that the electing carrier has prepared
a cost study of the price floor to support the price or prices for each
service and that, on and after the date on which the notice is filed with
the commission, any affected person may, upon request, inspect and copy
the cost study, subject to reasonable terms and conditions of any
applicable confidentiality and nondisclosure agreement relating to the
services.
The notice requirements of this subsection do not apply to an electing
carrier with respect to the pricing of competitive services or for packages
comprised exclusively of competitive services.
3. The price for a package of services must not be lower than the
lesser of:
(a) The sum of the price floors for each of the services contained in
the package; or
(b) The sum of the prices of the basic network services, as set forth in
the tariffs of the electing carrier, and the price floors for each of the
other services contained in the package.
4. The commission shall not specify a maximum rate for a package
of services.
5. Each of the services included in a package pursuant to paragraph
(b) of subsection 1 must be made available on an individual basis.
Sec. 18.
An electing carrier may establish promotional pricereductions for services upon a 1-day notice to the commission. The
promotional price reduction for a service may be offered for not more
than 90 days during any 12 consecutive months and must be given in all
geographic areas served by the electing carrier, where facilities permit,
on a nondiscriminatory basis during the 12-month period.
Sec. 19.
1. An electing carrier may introduce new services upon30-days’ notice to the commission in writing. The notice must include a
description in reasonable detail of:
(a) The characteristics of each new service;
(b) The terms and conditions applicable to each new service;
(c) The nature of any limitations on the duration or geographical
availability of each new service;
(d) The price or prices of each new service; and
(e) A certificate that provides that the electing carrier has prepared a
cost study of the price floor to support the price or prices for each new
service and that, on and after the date on which the notice is filed with
the commission, any affected person may, upon request, inspect and copy
the cost study, subject to reasonable terms and conditions of any
applicable confidentiality and nondisclosure agreement.
2. Each new service is subject to the conditions set forth in section 17
of this act.
3. Each new service is exempt from NRS 704.110 and the regulations
of the commission relating thereto.
4. Unless otherwise classified by the commission as a competitive
service pursuant to its regulations, a new service must be classified as a
discretionary service for which the commission shall not specify a
maximum rate. The electing carrier shall set the price of the new service
above the price floor of the service.
5. As used in this section, a "new service" means a
telecommunications service:
(a) That provides a function, feature or capability which is materially
different from any service or services previously offered by the carrier; or
(b) Combines two or more previously provided new services.
Sec. 20.
The rates charged by an electing carrier for services, exceptfor competitive services, must be geographically averaged throughout the
service territory in which the electing carrier is the provider of last resort,
as determined pursuant to regulations adopted by the commission, or
within such other smaller geographic area as the commission deems
appropriate to balance the interests of all customers and providers.
Sec. 21.
The intrastate access prices charged by an electing carriermust not exceed the interstate access prices charged by the electing
carrier as authorized by the Federal Communications Commission for
corresponding elements, and any resulting reductions must be offset on a
revenue-neutral basis with adjustments to other essential retail services
subject to regulation by the commission.
Sec. 22.
The provisions of sections 2 to 22, inclusive, of this act donot:
1. Apply to the commission in connection with any actions or
decisions required or permitted by the Telecommunications Act of 1996,
Public Law 104-104, 110 Stat. 56-161; or
2. Limit or modify the duties of an electing carrier to a competitive
supplier regarding the provision of network interconnection, unbundled
network elements and resold services under the provisions of the
Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161.
establish penalties and expedited procedures for imposing penalties upon
a provider of telecommunication services for actions that are inconsistent
with the standards established by the commission pursuant to subsection
1. Such penalties may include financial payment to the complaining
provider of telecommunication services for a violation of the standards
established by the commission pursuant to subsection 1, provided that
any penalty paid must be deducted, with interest, from any other award
under any other judicial or administrative procedure for the same
conduct in the same reporting period. Any penalty imposed pursuant to
this subsection is in lieu of the civil penalties set forth in NRS 703.380
and must be:
(a) Imposed for violating a standard or standards established by
regulations of the commission pursuant to subsection 1;
(b) Determined by the commission to further the goal of encouraging
competition or discouraging discriminatory conduct; and
(c) In an amount reasonable to encourage competition or discourage
discriminatory conduct.
Sec. 24.
Notwithstanding the provisions of NRS 703.310 and703.320, the commission shall establish by regulation expedited
procedures for complaints filed by a provider of telecommunication
services against another provider of telecommunication services for any
dispute arising under chapter 703 or 704 of NRS, including specific
procedures for interim relief that may include a preliminary decision by a
single commissioner except as to the imposition of monetary penalties.
Sec. 25.
Any judicial review of a decision by the commissionpursuant to sections 23 and 24 of this act must be made in accordance
with NRS 703.373 to 703.376, inclusive.
Sec. 26.
The provisions of sections 23 to 26, inclusive, of this actmust not be construed to exempt providers of telecommunication services
from any other applicable statute of this state or the United States
relating to consumer and antitrust protections. The exemption provided
in paragraph (c) of subsection 3 of NRS 598A.040 does not apply to
conduct of, or actions taken by, a provider of telecommunication services
in violation of the standards established pursuant to subsection 1 of
section 23 of this act.
Sec. 27. NRS 704.640 is hereby amended to read as follows:
Sec. 28. Section 27 of this act is hereby amended to read as follows:
shall be fined not more than $500.
Sec. 29. 1. This section and sections 1 and 23 to 27, inclusive, of
this act become effective upon passage and approval.
2. Sections 2 to 22, inclusive, and 28 of this act become effective on
October 1, 1999.
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