REPORT TITLE:
Telecommunications


DESCRIPTION:
Allows the PUC to provide an alternative provider when it
determines that an area of the State has less than adequate
service and the existing provider has failed to satisfy its
burden in response to an order to show cause why the commission
should not authorize an alternative provider for that area.
Allows a provider to negotiate the sale or use of its
infrastructure in the decertified area to the State or to another
carrier.  (HB247, HD1)

 
a                                                      99-1778-1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        247
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO TELECOMMUNICATIONS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to clarify and
 
 2 confirm the legislature's intent in enacting Act 80, Session Laws
 
 3 of Hawaii 1994.  Specifically, this Act provides that when:
 
 4      (1)  The public utilities commission determines that an area
 
 5           of the State has less than adequate telecommunications
 
 6           service; and
 
 7      (2)  The existing telecommunications provider fails to
 
 8           satisfy its burden of proof in response to an order to
 
 9           show cause as to why the commission should not
 
10           authorize an alternative telecommunications provider
 
11           for that area;
 
12 the incumbent carrier may be decertified by the commission in
 
13 that area.
 
14      The decertified carrier shall not be barred from reapplying
 
15 to the commission for the right to serve that area.
 
16      SECTION 2. Section 269-16.9, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§269-16.9  Telecommunications providers and services.(a)
 
19 Notwithstanding any provision of this chapter to the contrary,
 

 
a                                                      99-1778-1
Page 2                                                     247
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 the commission, upon its own motion or upon the application of
 
 2 any person, and upon notice and hearing, may exempt a
 
 3 telecommunications provider or a telecommunications service from
 
 4 any or all of the provisions of this chapter, except the
 
 5 provisions of section 269-34, upon a determination that the
 
 6 exemption is in the public interest.  In determining whether an
 
 7 exemption is in the public interest, the commission shall
 
 8 consider whether the exemption promotes state policies in
 
 9 telecommunications, the development, maintenance, and operation
 
10 of effective and economically efficient telecommunications
 
11 services, and the furnishing of telecommunications services at
 
12 just and reasonable rates and in a fair manner in view of the
 
13 needs of the various customer segments of the telecommunications
 
14 industry.  Among the specific factors the commission may consider
 
15 are:
 
16      (1)  The responsiveness of the exemption to changes in the
 
17           structure and technology of the State's
 
18           telecommunications industry;
 
19      (2)  The benefits accruing to the customers and users of the
 
20           exempt telecommunications provider or service;
 
21      (3)  The impact of the exemption on the quality, efficiency,
 
22           and availability of telecommunications services;
 
23      (4)  The impact of the exemption on the maintenance of fair,
 

 
a                                                      99-1778-1
Page 3                                                     247
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           just, and reasonable rates for telecommunications
 
 2           services;
 
 3      (5)  The likelihood of prejudice or disadvantage to
 
 4           ratepayers of basic local exchange service resulting
 
 5           from the exemption;
 
 6      (6)  The effect of the exemption on the preservation and
 
 7           promotion of affordable, universal, basic
 
 8           telecommunications services as those services are
 
 9           determined by the commission;
 
10      (7)  The resulting subsidization, if any, of the exempt
 
11           telecommunications service or provider by nonexempt
 
12           services;
 
13      (8)  The impact of the exemption on the availability of
 
14           diversity in the supply of telecommunications services
 
15           throughout the State;
 
16      (9)  The improvements in the regulatory system to be gained
 
17           from the exemption, including the reduction in
 
18           regulatory delays and costs;
 
19     (10)  The impact of the exemption on promoting innovations in
 
20           telecommunications services;
 
21     (11)  The opportunity provided by the exemption for
 
22           telecommunications providers to respond to competition;
 
23           and
 

 
a                                                      99-1778-1
Page 4                                                     247
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1     (12)  The potential for the exercise of substantial market
 
 2           power by the exempt provider or by a provider of the
 
 3           exempt telecommunications service.
 
 4      (b)  The commission shall expedite, where practicable, the
 
 5 regulatory process with respect to exemptions and shall adopt
 
 6 guidelines under which each provider of an exempted service shall
 
 7 be subject to similar terms and conditions.
 
 8      (c)  The commission may condition or limit any exemption as
 
 9 the commission deems necessary in the public interest.  The
 
10 commission may provide a trial period for any exemption and may
 
11 terminate the exemption or continue it for such period and under
 
12 such conditions and limitations as it deems appropriate.
 
13      (d)  The commission may require a telecommunications
 
14 provider to apply for a certificate of public convenience and
 
15 necessity pursuant to section 269-7.5; provided that the
 
16 commission may waive any application requirement whenever it
 
17 deems the waiver to be in furtherance of the purposes of this
 
18 section.  The exemptions under this section may be granted in a
 
19 proceeding for certification or in a separate proceeding.
 
20      (e)  The commission may waive other regulatory requirements
 
21 under this chapter applicable to telecommunications providers
 
22 when it determines that competition will serve the same purpose
 
23 as public interest regulation.
 

 
a                                                      99-1778-1
Page 5                                                     247
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (f)  If any provider of an exempt telecommunications service
 
 2 or any exempt telecommunications provider elects to terminate its
 
 3 service, it shall provide notice of this to its customers, the
 
 4 commission, and every telephone public utility providing basic
 
 5 local exchange service in this State.  The notice shall be in
 
 6 writing and given not less than six months before the intended
 
 7 termination date.  Upon termination of service by a provider of
 
 8 an exempt service or by an exempt provider, the appropriate
 
 9 telephone public utility providing basic local exchange service
 
10 shall ensure that all customers affected by the termination
 
11 receive basic local exchange service.  The commission [shall],
 
12 upon notice and hearing or by rule, shall determine the party or
 
13 parties who shall bear the cost, if any, of access to the basic
 
14 local exchange service by the customers of the terminated exempt
 
15 service.
 
16      (g)  Upon the petition of any person or upon its own motion,
 
17 the commission may rescind any exemption or waiver granted under
 
18 this section if, after notice and hearing, it finds that the
 
19 conditions prompting the granting of the exemption or waiver no
 
20 longer apply, or that the exemption or waiver is no longer in the
 
21 public interest, or that the telecommunications provider has
 
22 failed to comply with one or more of the conditions of the
 
23 exemption or applicable statutory or regulatory requirements.
 

 
a                                                      99-1778-1
Page 6                                                     247
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (h)  For purposes of this section, the commission, upon
 
 2 determination that any area of the State has less than adequate
 
 3 telecommunications service, shall require the existing
 
 4 telecommunications provider to show cause as to why the
 
 5 commission should not authorize an alternative telecommunications
 
 6 provider for that area under the terms and conditions of this
 
 7 section.
 
 8      (i)  Upon determination by the commission under subsection
 
 9 (h) that an alternative telecommunications provider should be
 
10 authorized for an area of the State that has less than adequate
 
11 telecommunications service, the commission may decertify the
 
12 existing telecommunications provider for the area.  As used in
 
13 this section, "decertify" means to modify, amend, or revoke the
 
14 registration, charter, or certificate of a telecommunications
 
15 provider for a particular area of the State such that the
 
16 "decertified" provider is no longer authorized to provide local
 
17 exchange service in that area.  The decertified
 
18 telecommunications provider shall not be barred from reapplying
 
19 for the right to serve that area.
 
20      (j)  Any telecommunications provider decertified under
 
21 subsection (i) may negotiate for the sale or use of its
 
22 infrastructure in the decertified area to the State or to another
 
23 telecommunications provider."
 

 
a                                                      99-1778-1
Page 7                                                     247
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      SECTION 3.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 4.  This Act shall take effect upon its approval.
 

 
a                                                      99-1778-1