REPORT TITLE:
Public Utilities


DESCRIPTION:
Makes optional the PUC's decertification of telecommunications
provider and selection of alternative provider in area with
inadequate service.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        785
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC UTILITIES.



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

 1      SECTION 1.  Section 269-16.9, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§269-16.9  Telecommunications providers and services.(a)
 
 4 Notwithstanding any provision of this chapter to the contrary,
 
 5 the commission, upon its own motion or upon the application of
 
 6 any person, and upon notice and hearing, may exempt a
 
 7 telecommunications provider or a telecommunications service from
 
 8 any or all of the provisions of this chapter, except [the
 
 9 provisions of] section 269-34, upon a determination that the
 
10 exemption is in the public interest.  In determining whether an
 
11 exemption is in the public interest, the commission shall
 
12 consider whether the exemption promotes state policies in
 
13 telecommunications, the development, maintenance, and operation
 
14 of effective and economically efficient telecommunications
 
15 services, and the furnishing of telecommunications services at
 
16 just and reasonable rates and in a fair manner in view of the
 
17 needs of the various customer segments of the telecommunications
 
18 industry.  Among the specific factors the commission may consider
 
19 are:
 

 
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 1      (1)  The responsiveness of the exemption to changes in the
 
 2           structure and technology of the State's
 
 3           telecommunications industry;
 
 4      (2)  The benefits accruing to the customers and users of the
 
 5           exempt telecommunications provider or service;
 
 6      (3)  The impact of the exemption on the quality, efficiency,
 
 7           and availability of telecommunications services;
 
 8      (4)  The impact of the exemption on the maintenance of fair,
 
 9           just, and reasonable rates for telecommunications
 
10           services;
 
11      (5)  The likelihood of prejudice or disadvantage to
 
12           ratepayers of basic local exchange service resulting
 
13           from the exemption;
 
14      (6)  The effect of the exemption on the preservation and
 
15           promotion of affordable, universal, basic
 
16           telecommunications services as those services are
 
17           determined by the commission;
 
18      (7)  The resulting subsidization, if any, of the exempt
 
19           telecommunications service or provider by nonexempt
 
20           services;
 
21      (8)  The impact of the exemption on the availability of
 
22           diversity in the supply of telecommunications services
 
23           throughout the State;
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (9)  The improvements in the regulatory system to be gained
 
 2           from the exemption, including the reduction in
 
 3           regulatory delays and costs;
 
 4     (10)  The impact of the exemption on promoting innovations in
 
 5           telecommunications services;
 
 6     (11)  The opportunity provided by the exemption for
 
 7           telecommunications providers to respond to competition;
 
 8           and
 
 9     (12)  The potential for the exercise of substantial market
 
10           power by the exempt provider or by a provider of the
 
11           exempt telecommunications service.
 
12      (b)  The commission shall expedite, where practicable, the
 
13 regulatory process with respect to exemptions and shall adopt
 
14 guidelines under which each provider of an exempted service shall
 
15 be subject to similar terms and conditions.
 
16      (c)  The commission may condition or limit any exemption
 
17 [as] that the commission deems necessary in the public interest.
 
18 The commission may provide a trial period for any exemption and
 
19 may terminate the exemption or continue it for [such] a period
 
20 and under [such] conditions and limitations [as] that it deems
 
21 appropriate.
 
22      (d)  The commission may require a telecommunications
 
23 provider to apply for a certificate of public convenience and
 

 
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 1 necessity pursuant to section 269-7.5; provided that the
 
 2 commission may waive any application requirement whenever it
 
 3 deems the waiver to be in furtherance of the purposes of this
 
 4 section.  The exemptions under this section may be granted in a
 
 5 proceeding for certification or in a separate proceeding.
 
 6      (e)  The commission may waive other regulatory requirements
 
 7 under this chapter applicable to telecommunications providers
 
 8 when it determines that competition will serve the same purpose
 
 9 as public interest regulation.
 
10      (f)  If any provider of an exempt telecommunications service
 
11 or any exempt telecommunications provider elects to terminate its
 
12 service, it shall provide a notice of [this] termination to its
 
13 customers, the commission, and every telephone public utility
 
14 providing basic local exchange service in this State.  The notice
 
15 shall be in writing and given not less than six months before the
 
16 intended termination date.  Upon termination of service by a
 
17 provider of an exempt service or by an exempt provider, the
 
18 appropriate telephone public utility providing basic local
 
19 exchange service shall ensure that all customers affected by the
 
20 termination receive basic local exchange service.  The commission
 
21 [shall], upon notice and hearing or by rule, shall determine the
 
22 party or parties who shall bear the cost, if any, of access to
 
23 the basic local exchange service by the customers of the
 

 
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 1 terminated exempt service.
 
 2      (g)  Upon the petition of any person or upon its own motion,
 
 3 the commission may rescind any exemption or waiver granted under
 
 4 this section if, after notice and hearing, it finds that the
 
 5 conditions prompting the granting of the exemption or waiver no
 
 6 longer apply, or that the exemption or waiver is no longer in the
 
 7 public interest, or that the telecommunications provider has
 
 8 failed to comply with one or more of the conditions of the
 
 9 exemption or applicable statutory or regulatory requirements.
 
10      (h)  For purposes of this section, the commission, upon
 
11 determination that any area of the State has less than adequate
 
12 telecommunications service, shall require the existing
 
13 telecommunications provider to show cause as to why the
 
14 commission should not authorize an alternative telecommunications
 
15 provider for that area under the terms and conditions of this
 
16 section.
 
17      (i)  If the existing telecommunications provider fails to
 
18 show cause as required by subsection (h), the commission may:
 
19      (1)  Select an alternative telecommunications provider to
 
20           replace the existing telecommunications provider for
 
21           that area; and
 
22      (2)  Decertify the existing telecommunications provider for
 
23           providing service in that area.
 

 
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 1      A telecommunications provider that has been decertified
 
 2 pursuant to this subsection shall not be barred from reapplying
 
 3 for the right to serve that area in the future.
 
 4      (j)  As used in this section, "decertify" means to modify,
 
 5 amend, or revoke the registration, charter, or certificate of a
 
 6 telecommunications provider for a particular area of the State
 
 7 following a determination by the commission pursuant to
 
 8 subsection (h) that an alternative telecommunications provider
 
 9 should be authorized for that area of the State because it has
 
10 less than adequate telecommunications service, such that the
 
11 "decertified" provider is no longer authorized to provide service
 
12 in that area."
 
13      SECTION 2.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 3.  This Act shall take effect upon its approval.