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CSHB 111(JUD) am: "An Act relating to policies in telecommunications regulations; extending the termination date of the Regulatory Commission of Alaska; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 111(JUD) am 01 "An Act relating to policies in telecommunications regulations; extending the 02 termination date of the Regulatory Commission of Alaska; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 44.66.010(a)(4) is amended to read: 06 (4) Regulatory Commission of Alaska (AS 42.04.010) -- June 30, 2007 07 [2003]; 08 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 REVIEW OF TELECOMMUNICATIONS REGULATION. (a) The Regulatory 11 Commission of Alaska shall thoroughly review its rules and regulations governing 12 telecommunications rates, charges between competing telecommunications companies, and 13 competition in telecommunications. As part of this review, the commission shall hold public 14 hearings and shall issue proposed regulations not later than November 15, 2003.

01 (b) In conducting the review required by (a) of this section, the commission shall be 02 guided by the following principles: 03 (1) the public shall be protected; 04 (2) the rates charged to the public shall be fair; 05 (3) the incumbent carrier may not be placed at an unfair competitive 06 disadvantage; 07 (4) businesses that provide local and long distance telecommunications 08 services shall be treated as fairly as possible; 09 (5) competition among telecommunications companies shall be encouraged; 10 (6) the development of a modern telecommunications infrastructure in the 11 state shall be encouraged; and 12 (7) it is desirable to promote competition and to take steps, if fair to the public, 13 to encourage more, rather than fewer, businesses to enter and remain in the 14 telecommunications business in the state. 15 (c) The review required by (a) of this section does not apply to current open dockets 16 pending review. 17 (d) The legislature does not take a position on the propriety of existing commission 18 rulings or regulations; however, regulations issued under (a) of this section may differ from 19 prior commission rulings and regulations. 20 (e) The proposed regulations required by (a) of this section must include regulations 21 to implement the following policies: 22 (1) there shall be fair payment by a user carrier for use of another carrier's 23 equipment and facilities, including existing and newly constructed equipment and facilities; 24 (2) in determining whether a carrier is the dominant carrier for the purposes of 25 setting consumer rates, it is not relevant that the carrier in a competitive market is the 26 incumbent carrier; 27 (3) all telecommunications carriers may unilaterally reduce consumer rates, 28 subject to state and federal antitrust laws; and 29 (4) a definition of "competitive service areas" shall take into account whether 30 actual competition exists in an area; 31 (5) any method of depreciation used by the commission shall consider the

01 actual useful life of depreciated equipment and facilities; 02 (6) when the commission approves a carrier's application for a certificate to 03 provide competitive local exchange telecommunications service in an incumbent local 04 exchange carrier's service area, in areas where the commission has determined there is 05 competition among carriers, the incumbent local exchange carrier shall be subject to the same 06 retail tariffing standards and regulations as the new carrier, but the incumbent local exchange 07 carrier remains the carrier of last resort in the relevant area until the commission orders 08 otherwise; 09 (7) the use of fill factors shall consider the application of the fill factors in 10 setting unbundled network element rates; 11 (8) in areas where significant competition exists between carriers, competitors 12 shall be allowed to increase rates under the same rules; and 13 (9) the commission may deny any rate increase to protect the public. 14 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).