EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 704 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 26, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 22, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 to

1-5 12, inclusive, of this act have the meanings ascribed to them in those

1-6 sections.

1-7 Sec. 3. "Affected person" means:

1-8 1. A public utility affected by an action of an electing carrier or an

1-9 action of the commission relating to an electing carrier;

1-10 2. A person whose utility service or rates are affected by an action of

1-11 an electing carrier or an action of the commission relating to an electing

1-12 carrier;

1-13 3. A competitive supplier; or

1-14 4. The bureau of consumer protection in the office of the attorney

1-15 general.

2-1 Sec. 4. "Basic network service" means the provision of any of the

2-2 following services, unless the service has been reclassified as a

2-3 competitive, discretionary or other essential service by the commission

2-4 pursuant to section 16 of this act:

2-5 1. Farmer line service;

2-6 2. Flat rate service for residential lines;

2-7 3. Measured rate service for residential lines;

2-8 4. Flat rate service for residential trunk lines;

2-9 5. Flat rate service for business lines;

2-10 6. Measured rate service for business lines;

2-11 7. Flat rate service for business trunk lines;

2-12 8. Measured rate service for business trunk lines;

2-13 9. Suburban service access lines;

2-14 10. Toll station service access lines;

2-15 11. Universal lifeline service access lines;

2-16 12. Access to emergency 911 service; and

2-17 13. The first single-line directory listing.

2-18 Sec. 5. "Competitive service" means:

2-19 1. Any telecommunications service which is classified as a

2-20 competitive service or a nonregulated service by regulation of the

2-21 commission, or which is reclassified as a competitive service pursuant to

2-22 section 16 of this act; and

2-23 2. The intraLATA toll services of an electing carrier.

2-24 Sec. 6. "Competitive supplier" means a person who:

2-25 1. Is a competitor of an electing carrier with respect to a service

2-26 performed by the electing carrier; or

2-27 2. Wants to enter into competition with an electing carrier.

2-28 Sec. 7. "Discretionary service" means any telecommunications

2-29 service which is not otherwise classified as a basic network service, a

2-30 competitive service or any other essential service, or which is reclassified

2-31 as a discretionary service pursuant to section 16 of this act.

2-32 Sec. 8. "Electing carrier" means an incumbent local exchange

2-33 carrier regulated under an alternative plan of regulation pursuant to

2-34 NRS 704.040 that has elected also to be regulated pursuant to sections 2

2-35 to 22, inclusive, of this act by filing with the commission a statement

2-36 pursuant to section 13 of this act.

2-37 Sec. 9. "Incumbent local exchange carrier" has the meaning

2-38 ascribed to it in 47 U.S.C. § 251(h)(1), as that section existed on October

2-39 1, 1999, and includes a local exchange carrier that is treated as an

2-40 incumbent local exchange carrier pursuant to that section.

2-41 Sec. 10. "Local area of transport and access" or "LATA" means an

2-43 pursuant to the order in United States v. American Telephone and

3-1 Telegraph Co., 552 F. Supp. 131 (D.C. 1982). The term is equivalent to

3-2 "local access and transport area" as used in that order.

3-3 Sec. 11. "Other essential service" means any telecommunications

3-4 service that is classified as other essential service by regulation of the

3-5 commission.

3-6 Sec. 12. "Price floor" means the minimum price of a service using

3-7 cost-based standards as determined by the commission by regulation.

3-8 Sec. 13. An incumbent local exchange carrier that is regulated

3-9 under an alternative plan of regulation pursuant to NRS 704.040 may

3-10 elect also to be regulated pursuant to sections 2 to 22, inclusive, of this

3-11 act by filing with the commission a statement of its election to be so

3-12 regulated.

3-13 Sec. 14. 1. An electing carrier is not subject to any review of

3-14 earnings, monitoring of the rate base, or any other regulation by the

3-15 commission relating to the net income or rate of return of the electing

3-16 carrier, unless the electing carrier files with the commission a request to:

3-17 (a) Terminate its participation in the alternative plan of regulation

3-18 pursuant to NRS 704.040; or

3-19 (b) Continue its participation in the alternative plan of regulation

3-20 pursuant to NRS 704.040.

3-21 2. Except as otherwise provided in subsection 1, the commission

3-22 shall not consider the rate of return, rate base or any other earnings of

3-23 the electing carrier in connection with any change in rates.

3-24 3. Except for an electing carrier that files a request with the

3-25 commission pursuant to subsection 1, the commission shall not decrease

3-26 the rate of a basic network service provided by the electing carrier unless

3-27 the electing carrier agrees to the decrease in the rate.

3-28 4. Except for a telecommunications service reclassified pursuant to

3-29 section 16 of this act, or except where an electing carrier elects to

3-30 continue participation in an alternative plan of regulation pursuant to

3-31 paragraph (b) of subsection 1, an electing carrier shall not increase any

3-32 rate that the electing carrier charges for basic network services.

3-33 5. Except for universal service support for lifeline or link-up services

3-34 provided pursuant to 47 U.S.C. § 214 or as otherwise determined by the

3-35 commission, an electing carrier is not eligible to receive money from the

3-36 fund created pursuant to subsection 7 of NRS 704.040.

3-37 Sec. 15. Nothing in sections 2 to 22, inclusive, of this act authorizes

3-38 an electing carrier, without the approval of the commission, to

3-39 discontinue or otherwise change the terms and conditions relating to the

3-40 provision of the basic network services identified in subsections 1 to 4,

3-41 inclusive, of section 4 of this act, as set forth in the tariffs of the electing

3-42 carrier that are in effect on October 1, 1999.

4-1 Sec. 16. 1. The commission may, at any time, upon its own motion

4-2 or that of any person, reclassify a basic network service, except access to

4-3 emergency 911 service.

4-4 2. The commission shall establish by regulation criteria for

4-5 determining whether a service should be reclassified, except that the

4-6 commission shall not adopt criteria for determining whether a service

4-7 should be reclassified that would deny a request to reclassify a basic

4-8 network service to another classification of service within an exchange

4-9 where a competitive supplier operates and provides that service, on the

4-10 basis that there is not a competitive supplier of that service in any other

4-11 portion of the state.

4-12 Sec. 17. 1. An electing carrier may, pursuant to this section and in

4-13 accordance with section 20 of this act, exercise flexibility in the pricing

4-14 of:

4-15 (a) Competitive services and discretionary services. The commission

4-16 shall not specify a maximum rate for any competitive services or

4-17 discretionary services of the electing carrier. The electing carrier shall,

4-18 with regard to any competitive or discretionary service that it provides, set

4-19 the price of that service above the price floor of the service.

4-20 (b) A package of services, which may include basic network services,

4-21 competitive services, discretionary services and other essential services.

4-22 2. Except as otherwise provided in this subsection, an electing carrier

4-23 may, upon 30-days’ notice to the commission in writing, exercise

4-24 flexibility in the pricing of its services pursuant to subsection 1 and is

4-25 exempt, with respect to the pricing of its services, from the provisions of

4-26 NRS 704.110 and the regulations of the commission relating thereto. The

4-27 notice must include a description in reasonable detail of:

4-28 (a) The characteristics of the services that will be subject to flexibility

4-29 in pricing;

4-30 (b) The terms and conditions applicable to the services;

4-31 (c) The nature of any limitations on the duration or geographical

4-32 availability of the services;

4-33 (d) The price or prices of the services or packages of services; and

4-34 (e) A certificate which provides that the electing carrier has prepared

4-35 a cost study of the price floor to support the price or prices for each

4-36 service and that, on and after the date on which the notice is filed with

4-37 the commission, any affected person may, upon request, inspect and copy

4-38 the cost study, subject to reasonable terms and conditions of any

4-39 applicable confidentiality and nondisclosure agreement relating to the

4-40 services.

4-41 The notice requirements of this subsection do not apply to an electing

4-42 carrier with respect to the pricing of competitive services or for packages

4-43 comprised exclusively of competitive services.

5-1 3. The price for a package of services must not be lower than the

5-2 lesser of:

5-3 (a) The sum of the price floors for each of the services contained in

5-4 the package; or

5-5 (b) The sum of the prices of the basic network services, as set forth in

5-6 the tariffs of the electing carrier, and the price floors for each of the

5-7 other services contained in the package.

5-8 4. The commission shall not specify a maximum rate for a package

5-9 of services.

5-10 5. Each of the services included in a package pursuant to paragraph

5-11 (b) of subsection 1 must be made available on an individual basis.

5-12 Sec. 18. An electing carrier may establish promotional price

5-13 reductions for services upon a 1-day notice to the commission. The

5-14 promotional price reduction for a service may be offered for not more

5-15 than 90 days during any 12 consecutive months and must be given in all

5-16 geographic areas served by the electing carrier, where facilities permit,

5-17 on a nondiscriminatory basis during the 12-month period.

5-18 Sec. 19. 1. An electing carrier may introduce new services upon

5-19 30-days’ notice to the commission in writing. The notice must include a

5-20 description in reasonable detail of:

5-21 (a) The characteristics of each new service;

5-22 (b) The terms and conditions applicable to each new service;

5-23 (c) The nature of any limitations on the duration or geographical

5-24 availability of each new service;

5-25 (d) The price or prices of each new service; and

5-26 (e) A certificate that provides that the electing carrier has prepared a

5-27 cost study of the price floor to support the price or prices for each new

5-28 service and that, on and after the date on which the notice is filed with

5-29 the commission, any affected person may, upon request, inspect and copy

5-30 the cost study, subject to reasonable terms and conditions of any

5-31 applicable confidentiality and nondisclosure agreement.

5-32 2. Each new service is subject to the conditions set forth in section 17

5-33 of this act.

5-34 3. Each new service is exempt from NRS 704.110 and the regulations

5-35 of the commission relating thereto.

5-36 4. Unless otherwise classified by the commission as a competitive

5-37 service pursuant to its regulations, a new service must be classified as a

5-38 discretionary service for which the commission shall not specify a

5-39 maximum rate. The electing carrier shall set the price of the new service

5-40 above the price floor of the service.

5-41 5. As used in this section, a "new service" means a

5-42 telecommunications service:

6-1 (a) That provides a function, feature or capability which is

6-2 materially different from any service or services previously offered by

6-3 the carrier; or

6-4 (b) Combines two or more previously provided new services.

6-5 Sec. 20. The rates charged by an electing carrier for services, except

6-6 for competitive services, must be geographically averaged throughout the

6-7 service territory in which the electing carrier is the provider of last resort,

6-8 as determined pursuant to regulations adopted by the commission, or

6-9 within such other smaller geographic area as the commission deems

6-10 appropriate to balance the interests of all customers and providers.

6-11 Sec. 21. The intrastate access prices charged by an electing carrier

6-12 must not exceed the interstate access prices charged by the electing

6-13 carrier as authorized by the Federal Communications Commission for

6-14 corresponding elements, and any resulting reductions must be offset on a

6-15 revenue-neutral basis with adjustments to other essential retail services

6-16 subject to regulation by the commission.

6-17 Sec. 22. The provisions of sections 2 to 22, inclusive, of this act do

6-18 not:

6-19 1. Apply to the commission in connection with any actions or

6-20 decisions required or permitted by the Telecommunications Act of 1996,

6-21 Public Law 104-104, 110 Stat. 56-161; or

6-22 2. Limit or modify the duties of an electing carrier to a competitive

6-23 supplier regarding the provision of network interconnection, unbundled

6-24 network elements and resold services under the provisions of the

6-25 Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161.

6-26 Sec. 23. The commission shall, by regulation:

6-27 1. Establish standards of performance and reporting regarding the

6-28 provision of interconnection, unbundled network elements and resold

6-29 services, which encourage competition and discourage discriminatory

6-30 conduct in the provision of local telecommunication services; and

6-31 2.  Notwithstanding the provisions of NRS 703.320 to the contrary,

6-32 establish penalties and expedited procedures for imposing penalties upon

6-33 a provider of telecommunication services for actions that are inconsistent

6-34 with the standards established by the commission pursuant to subsection

6-35 1. Such penalties may include financial payment to the complaining

6-36 provider of telecommunication services for a violation of the standards

6-37 established by the commission pursuant to subsection 1, provided that

6-38 any penalty paid must be deducted, with interest, from any other award

6-39 under any other judicial or administrative procedure for the same

6-40 conduct in the same reporting period. Any penalty imposed pursuant to

6-41 this subsection is in lieu of the civil penalties set forth in NRS 703.380

6-42 and must be:

6-43 (a) Imposed for violating a standard or standards established by

6-44 regulations of the commission pursuant to subsection 1;

7-1 (b) Determined by the commission to further the goal of encouraging

7-2 competition or discouraging discriminatory conduct; and

7-3 (c) In an amount reasonable to encourage competition or discourage

7-4 discriminatory conduct.

7-5 Sec. 24. Notwithstanding the provisions of NRS 703.310 and

7-6 703.320, the commission shall establish by regulation expedited

7-7 procedures for complaints filed by a provider of telecommunication

7-8 services against another provider of telecommunication services for any

7-9 dispute arising under chapter 703 or 704 of NRS, including specific

7-10 procedures for interim relief that may include a preliminary decision by a

7-11 single commissioner except as to the imposition of monetary penalties.

7-12 Sec. 25. Any judicial review of a decision by the commission

7-13 pursuant to sections 23 and 24 of this act must be made in accordance

7-14 with NRS 703.373 to 703.376, inclusive.

7-15 Sec. 26. The provisions of sections 23 to 26, inclusive, of this act

7-16 must not be construed to exempt providers of telecommunication services

7-17 from any other applicable statute of this state or the United States

7-18 relating to consumer and antitrust protections. The exemption provided

7-19 in paragraph (c) of subsection 3 of NRS 598A.040 does not apply to

7-20 conduct of, or actions taken by, a provider of telecommunication services

7-21 in violation of the standards established pursuant to subsection 1 of

7-22 section 23 of this act.

7-23 Sec. 27. NRS 704.640 is hereby amended to read as follows:

7-24 704.640 [Any] Except as otherwise provided in sections 23 to 26,

7-42 perform as a public utility in violation of any of the provisions of NRS

8-1 704.005 to 704.751, inclusive, and sections 23 to 26, inclusive, of this act,

8-2 and NRS 704.993 to 704.999, inclusive,

8-3 shall be fined not more than $500.

8-4 Sec. 28. Section 27 of this act is hereby amended to read as follows:

8-5 Sec. 27. NRS 704.640 is hereby amended to read as follows:

8-6 704.640 Except as otherwise provided in sections 23 to 26,

8-7 inclusive, of this act, any person who:

8-8 1. Operates any public utility to which NRS 704.005 to

8-9 704.751, inclusive, and sections [23] 2 to 26, inclusive, of this act,

8-10 and NRS 704.993 to 704.999, inclusive, apply without first

8-11 obtaining a certificate of public convenience and necessity or in

8-12 violation of its terms;

8-13 2. Fails to make any return or report required by NRS 704.005

8-14 to 704.751, inclusive, and sections [23] 2 to 26, inclusive, of this

8-15 act, and NRS 704.993 to 704.999, inclusive, or by the commission

8-16 pursuant to NRS 704.005 to 704.751, inclusive, and sections [23] 2

8-17 to 26, inclusive, of this act, and NRS 704.993 to 704.999, inclusive;

8-18 3. Violates, or procures, aids or abets the violating of any

8-19 provision of NRS 704.005 to 704.751, inclusive, and sections [23]

8-20 2 to 26, inclusive, of this act, and NRS 704.993 to 704.999,

8-21 inclusive;

8-22 4. Fails to obey any order, decision or regulation of the

8-23 commission;

8-24 5. Procures, aids or abets any person in his failure to obey the

8-25 order, decision or regulation; or

8-26 6. Advertises, solicits, proffers bids or otherwise holds himself

8-27 out to perform as a public utility in violation of any of the

8-28 provisions of NRS 704.005 to 704.751, inclusive, and sections [23]

8-29 2 to 26, inclusive, of this act, and NRS 704.993 to 704.999,

8-30 inclusive,

8-31 shall be fined not more than $500.

8-32 Sec. 29. 1. This section and sections 1 and 23 to 27, inclusive, of

8-33 this act become effective upon passage and approval.

8-34 2. Sections 2 to 22, inclusive, and 28 of this act become effective on

8-35 October 1, 1999.