SB400_EN

Senate Bill No. 400–Committee on Commerce and Labor

CHAPTER..........

AN ACT relating to communication services; enacting provisions relating to the regulation of telecommunication service and broadband service; revising certain provisions relating to incumbent local exchange carriers that are regulated under a plan of alternative regulation; amending certain requirements and procedures relating to those carriers; revising provisions relating to the classification of certain telecommunication services; revising provisions relating to flexibility in the pricing and terms of certain telecommunication services; prohibiting the Public Utilities Commission of Nevada from regulating broadband service under certain circumstances; requiring a consumer to be notified of the duration of a call under certain circumstances; 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 8, inclusive, of this

act.

Sec. 2. “Affiliate of an incumbent local exchange carrier” or

“affiliate” means a competitive provider of telecommunication

service that is controlled by or under common control with an

incumbent local exchange carrier to the extent the competitive

provider of telecommunication service is doing business within

any service territory in which its affiliated incumbent local

exchange carrier has been designated by the Commission as the

provider of last resort of basic service.

Sec. 3. “Deregulated service” means:

1. Any voice messaging service or other information service;

2. Any telecommunication service that the Commission

classifies as a deregulated service pursuant to NRS 704.6896.

Sec. 4. 1. “PAR carrier” means an incumbent local

exchange carrier that is regulated under a plan of alternative

regulation approved by the Commission pursuant to subsection 4

of NRS 704.040.

2. The term includes, but is not limited to, an electing PAR

carrier.

Sec. 5. “Telecommunication” means the transmission,

between or among points specified by the user, of information of

the user’s choosing, without change in the form or content of the

information sent and received, regardless of the facilities used.

Sec. 6. “Telecommunication service” means the offering of

telecommunication for a fee directly to the public, or such classes

of users as to be effectively available directly to the public,

regardless of the facilities used.

Sec. 7. In exercising flexibility in the pricing or terms of its

services pursuant to NRS 704.68904 to 704.68984, inclusive, and

sections 2 to 7, inclusive, of this act, a PAR carrier shall not

engage in any anticompetitive act or practice or unreasonably

discriminate among similarly situated customers.

Sec. 7.5. 1. Except as otherwise provided in subsection 2,

each public utility which provides telecommunication services

shall provide timely written notice to a customer of the duration of

each call that is billed to the customer, reported in minutes,

seconds or any fraction thereof, if the charges for the

telecommunication services are calculated, in whole or in part, on

the basis of the duration of the call.

2. The provisions of this section do not apply to measured

rate service that is regulated by the Commission.

Sec. 8. 1. Except as otherwise provided in subsection 2 and

NRS 704.68984, the Commission shall not regulate any

broadband service, including imposing any requirements relating

to the terms, conditions, rates or availability of broadband service.

2. The provisions of subsection 1 do not limit or modify the

authority of the Commission to:

(a) Consider any revenues, costs and expenses that a public

utility derives from providing a broadband service, if the

Commission is determining the rates of the public utility under a

general rate application that is filed pursuant to subsection 3 of

NRS 704.110;

(b) Act on a complaint filed pursuant to NRS 703.310, if the

complaint relates to a broadband service that is provided by a

public utility;

public utility derives from providing broadband service when the

Commission calculates the gross operating revenue of the public

utility for the purposes of levying and collecting the annual

assessment in accordance with the provisions of NRS 704.033; or

(d) Determine the rates, terms and conditions of intrastate

special access services.

3. As used in this section:

(a) “Affiliate of an incumbent local exchange carrier” has the

meaning ascribed to it in section 2 of this act.

(b) “Broadband service” means any two-way service that

transmits information at a rate that is generally not less than 200

kilobits per second in at least one direction.

ascribed to it in NRS 704.68932.

Sec. 9. NRS 704.020 is hereby amended to read as follows:

704.020 1. “Public utility” or “utility” includes:

(a) Any person who owns, operates, manages or controls any

railroad or part of a railroad as a common carrier in this state, or

cars or other equipment used thereon, or bridges, terminals, or

sidetracks, or any docks or wharves or storage elevators used in

connection therewith, whether or not they are owned by the

railroad.

(b) [Telephone companies and other companies which provide

telecommunication or a related] Any telephone company that

provides a telecommunication service to the public, but only with

regard to those operations of the telephone company which

consist of providing a telecommunication service to the public.

providing] company or instrumentality that provides a common or

contract service.

(d) [All companies which own] Any company that owns cars of

any kind or character, used and operated as a part of railroad trains,

in or through this state. All duties required of and penalties imposed

upon any railroad or any officer or agent thereof are, insofar as

applicable, required of and imposed upon the owner or operator of

any telephone[, radio and broadcasting companies, companies

providing telecommunication or related services] company that

provides a telecommunication service to the public , any radio or

broadcasting company or instrumentality that provides a common

or contract service and [companies which own] any company that

owns cars of any kind or character, used and operated as a part of

railroad trains in or through this state, and their officers and agents,

and the Commission may supervise and control all such companies

, instrumentalities and persons to the same extent as railroads.

2. “Public utility” or “utility” also includes:

(a) Any person who owns, operates or controls any ditch, flume,

tunnel or tunnel and drainage system, charging rates, fares or tolls,

directly or indirectly.

(b) Any plant or equipment, or any part of a plant or equipment,

within this state for the production, delivery or furnishing for or to

other persons, including private or municipal corporations, heat,

gas, coal slurry, light, power in any form or by any agency, water

for business, manufacturing, agricultural or household use, or

sewerage service, whether or not within the limits of municipalities.

10 or more users.

The Commission may supervise, regulate and control all such

utilities, subject to the provisions of this chapter and to the

exclusion

of the jurisdiction, regulation and control of such utilities by any

municipality, town or village, unless otherwise provided by law.

3. The provisions of this chapter and the term “public utility”

apply to all railroads, express companies , car companies and all

associations of persons, whether or not incorporated, that do any

business as a common carrier upon or over any line of railroad

within this state.

Sec. 10. NRS 704.040 is hereby amended to read as follows:

704.040 1. Every public utility shall furnish reasonably

adequate service and facilities, and the charges made for any

service rendered or to be rendered, or for any service in connection

therewith or incidental thereto, must be just and reasonable.

2. Every unjust and unreasonable charge for service of a public

utility is unlawful.

3. The Commission may exempt, to the extent it deems

reasonable, services related to telecommunication or public utilities

which provide telecommunication services from any or all of the

provisions of this chapter, upon a determination after hearing that

the services are competitive or discretionary and that regulation

thereof is unnecessary. For the purposes of this subsection, basic

local exchange service and access services provided to

interexchange carriers are not discretionary.

4. The Commission shall adopt regulations necessary to

establish [an alternative] a plan of alternative regulation [of] for a

public utility that provides telecommunication services. The

[alternative] plan of alternative regulation may include, but is not

limited to, provisions that:

(a) Allow adjustment of the rates charged by a public utility that

provides telecommunication services during the period in which the

utility elects the [alternative] plan of alternative regulation.

(b) Provide for flexibility of pricing for discretionary services

and services that are competitive.

NRS that do not apply to a public utility that elects to be regulated

under the [alternative plan.] plan of alternative regulation.

(d) Except as otherwise provided in this paragraph and NRS

704.68952, if the public utility is an incumbent local exchange

carrier, allow the incumbent local exchange carrier to select the

duration of the period in which the incumbent local exchange

carrier is to be regulated under the plan of alternative regulation.

The incumbent local exchange carrier may not select a period

that is less than 3 years or more than 5 years. The provisions of

this paragraph do not apply to a plan of alternative regulation of

an incumbent local exchange carrier regulated under a plan of

alternative regulation that was approved by the Commission

before the effective date of this act.

5. A public utility that elects to be regulated under [the

alternative] a plan of alternative regulation established pursuant to

subsection 4 is not subject to the remaining provisions of this

chapter or chapter 707 of NRS to the extent specified pursuant to

paragraph (c) of subsection 4.

6. All providers of telecommunication services which offer the

same or similar service must be subject to fair and impartial

regulation, to promote adequate, economical and efficient service.

7. The Commission may provide for the levy and collection of

an assessment, in an amount determined by the Commission, from

a public utility that provides telecommunication services in order to

maintain the availability of telephone service. Assessments levied

pursuant to this subsection must be maintained in a separate fund

established by the Commission. The Commission shall contract

with an independent administrator to administer the fund pursuant

to open competitive bidding procedures established by the

Commission. The independent administrator shall collect the

assessments levied and distribute them from the fund pursuant to a

plan which has been approved by the Commission. Money in the

fund must be used for the sole purpose of maintaining the

availability of telephone service.

8. [For the purposes of] As used in this section [,

“interexchange] :

(a) “Incumbent local exchange carrier” has the meaning

ascribed to it in NRS 704.68932.

(b) “Interexchange carrier” means any person providing

intrastate telecommunications service for a fee between two or

more exchanges.

Sec. 11. NRS 704.100 is hereby amended to read as follows:

704.100 Except as otherwise provided in NRS 704.075 and

704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive,

of this act or as may otherwise be provided by the Commission

pursuant to NRS 704.095 or 704.097[:] or pursuant to the

regulations adopted by the Commission in accordance with

subsection 4 of NRS 704.040:

1. A public utility shall not make changes in any schedule,

unless the public utility:

(a) Files with the Commission an application to make the

proposed changes and the Commission approves the proposed

changes pursuant to NRS 704.110; or

(b) Files the proposed changes with the Commission using a

letter of advice in accordance with the provisions of subsection 4.

2. A public utility shall post copies of all proposed schedules

and all new or amended schedules in the same offices and in

substantially the same form, manner and places as required by NRS

704.070 for the posting of copies of schedules that are currently in

force.

3. A public utility may not set forth as justification for a rate

increase any items of expense or rate base that previously have

been considered and disallowed by the Commission, unless those

items are clearly identified in the application and new facts or

considerations of policy for each item are advanced in the

application to justify a reversal of the prior decision of the

Commission.

4. Except as otherwise provided in subsection 5, if the

proposed change in any schedule does not change any rate or will

result in an increase in annual gross operating revenue, as certified

by the public utility, in an amount that does not exceed $2,500:

(a) The public utility may file the proposed change with the

Commission using a letter of advice in lieu of filing an application;

and

(b) The Commission shall determine whether it should dispense

with a hearing regarding the proposed change.

5. If the applicant is a public utility furnishing telephone

service and the proposed change in any schedule will result in an

increase in annual gross operating revenue, as certified by the

applicant, in an amount that does not exceed $50,000 or 10 percent

of the applicant’s annual gross operating revenue, whichever is less,

the Commission shall determine whether it should dispense with a

hearing regarding the proposed change.

6. In making the determination pursuant to subsection 4 or 5,

the Commission shall first consider all timely written protests, any

presentation that the regulatory operations staff of the Commission

may desire to present, the application of the public utility and any

other matters deemed relevant by the Commission.

Sec. 12. NRS 704.110 is hereby amended to read as follows:

704.110 Except as otherwise provided in NRS 704.075 and

704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive,

of this act or as may otherwise be provided by the Commission

pursuant to NRS 704.095 or 704.097[:] or pursuant to the

regulations adopted by the Commission in accordance with

subsection 4 of NRS 704.040:

1. If a public utility files with the Commission an application to

make changes in any schedule, including, without limitation,

changes that will result in a discontinuance, modification or

restriction of service, the Commission shall investigate the

propriety of the proposed changes to determine whether to approve

or disapprove the proposed changes. If an electric utility files such

an application and the application is a general rate application or an

application to clear its deferred accounts, the Consumer’s Advocate

shall be deemed a party of record.

2. Except as otherwise provided in [subsection 3,] subsections

3 and 11, if a public utility files with the Commission an application

to make changes in any schedule, not later than 180 days after the

date on which the application is filed, the Commission shall issue a

written order approving or disapproving, in whole or in part, the

proposed changes.

3. If a public utility files with the Commission a general rate

application, the public utility shall submit with its application a

statement showing the recorded results of revenues, expenses,

investments and costs of capital for its most recent 12 months for

which data were available when the application was prepared. In

determining whether to approve or disapprove any increased rates,

the Commission shall consider evidence in support of the increased

rates based upon actual recorded results of operations for the same

12 months, adjusted for increased revenues, any increased

investment in facilities, increased expenses for depreciation, certain

other operating expenses as approved by the Commission and

changes in the costs of securities which are known and are

measurable with reasonable accuracy at the time of filing and which

will become effective within 6 months after the last month of those

12 months, but the public utility shall not place into effect any

increased rates until the changes have been experienced and

certified by the public utility to the Commission and the

Commission has approved the increased rates. The Commission

shall also consider evidence supporting expenses for depreciation,

calculated on an annual basis, applicable to major components of

the public utility’s plant placed into service during the recorded test

period or the period for certification as set forth in the application.

Adjustments to revenues, operating expenses and costs of securities

must be calculated on an annual basis. Within 90 days after the date

on which the certification required by this subsection is filed with

the Commission, or within 180 days after the date on which the

general rate application is filed with the Commission, whichever

time is longer, the Commission shall make such order in reference

to the increased rates as is required by this chapter. An electric

utility shall file a general rate application pursuant to this

subsection at least once every 24 months.

4. If a public utility files with the Commission an application to

make changes in any schedule and the Commission does not issue a

final written order regarding the proposed changes within the time

required by this section, the proposed changes shall be deemed to

be approved by the Commission.

5. If a public utility files with the Commission a general rate

application, the public utility shall not file with the Commission

another general rate application until all pending general rate

applications filed by that public utility have been decided by the

Commission unless, after application and hearing, the Commission

determines that a substantial financial emergency would exist if the

public utility is not permitted to file another general rate application

sooner. The provisions of this subsection do not prohibit the public

utility from filing with the Commission, while a general rate

application is pending, an application to recover the increased cost

of purchased fuel, purchased power, or natural gas purchased for

resale pursuant to subsection 6 or an application to clear its deferred

accounts pursuant to subsection 7, if the public utility is otherwise

authorized by those provisions to file such an application.

6. A public utility may file an application to recover the

increased cost of purchased fuel, purchased power, or natural gas

purchased for resale once every 30 days. The provisions of this

subsection do not apply to an electric utility using deferred

accounting pursuant to NRS 704.187.

7. Except as otherwise provided in subsection 8 and subsection

4 of NRS 704.100, if an electric utility using deferred accounting

pursuant to NRS 704.187 files an application to clear its deferred

accounts and to change one or more of its rates based upon changes

in the costs for purchased fuel or purchased power, the

Commission, after a public hearing and by an appropriate order:

(a) Shall allow the electric utility to clear its deferred accounts

by refunding any credit balance or recovering any debit balance

over a period not to exceed 3 years, as determined by the

Commission.

(b) Shall not allow the electric utility to recover any debit

balance, or portion thereof, in an amount that would result in a rate

of return during the period of recovery that exceeds the rate of

return authorized by the Commission in the most recently

completed rate proceeding for the electric utility.

8. Before allowing an electric utility to clear its deferred

accounts pursuant to subsection 7, the Commission shall determine

whether the costs for purchased fuel and purchased power that the

electric utility recorded in its deferred accounts are recoverable and

whether the revenues that the electric utility collected from

customers in this state for purchased fuel and purchased power are

properly recorded and credited in its deferred accounts. The

Commission shall not allow the electric utility to recover any costs

for purchased fuel and purchased power that were the result of any

practice or transaction that was undertaken, managed or performed

imprudently by the electric utility.

9. If an electric utility files an application to clear its deferred

accounts pursuant to subsection 7 while a general rate application is

pending, the electric utility shall:

(a) Submit with its application to clear its deferred accounts

information relating to the cost of service and rate design; and

(b) Supplement its general rate application with the same

information, if such information was not submitted with the general

rate application.

10. A utility facility identified in a 3-year plan submitted

pursuant to NRS 704.741 and accepted by the Commission for

acquisition or construction pursuant to NRS 704.751 and the

regulations adopted pursuant thereto shall be deemed to be a

prudent investment. The utility may recover all just and reasonable

costs of planning and constructing such a facility.

11. A PAR carrier may, in accordance with this section and

NRS 704.100, file with the Commission a request to approve or

change any schedule to provide volume or duration discounts to

rates for telecommunication service for an offering made to all or

any class of business customers. The Commission may conduct a

hearing relating to the request, which must occur within 45 days

after the date the request is filed with the Commission. The

request and schedule shall be deemed approved if the request and

schedule are not disapproved by the Commission within 60 days

after the date the Commission receives the request.

12. As used in this section [, “electric] :

(a) “Electric utility” has the meaning ascribed to it in

NRS 704.187.

(b) “PAR carrier” has the meaning ascribed to it in section 4

of this act.

Sec. 13. NRS 704.68904 is hereby amended to read as

follows:

704.68904 As used in NRS 704.68904 to 704.68984, inclusive,

and sections 2 to 7, inclusive, of this act, unless the context

otherwise requires, the words and terms defined in NRS 704.68908

to 704.68944, inclusive, and sections 2 to 6, inclusive, of this act,

have the meanings ascribed to them in those sections.

Sec. 14. NRS 704.68908 is hereby amended to read as

follows:

704.68908 “Affected person” means:

1. A public utility affected by an action of [an electing] a PAR

carrier or an action of the Commission relating to [an electing] a

PAR carrier;

2. A person whose utility service or rates are affected by an

action of [an electing] a PAR carrier or an action of the

Commission relating to [an electing] a PAR carrier;

3. A competitive supplier; or

4. The Bureau of Consumer Protection in the Office of the

Attorney General.

Sec. 15. NRS 704.68912 is hereby amended to read as

follows:

704.68912 “Basic network service” means the provision of any

of the following services, unless the [service has been] Commission

has reclassified the service as a competitive[,] service, a

deregulated service, a discretionary service or an other essential

service [by the Commission] pursuant to NRS 704.6896:

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. 16. NRS 704.6892 is hereby amended to read as follows:

704.6892 “Competitive supplier” means a person who:

1. Is a competitor of [an electing] a PAR carrier with respect to

a service performed by the [electing] PAR carrier; or

2. Wants to enter into competition with [an electing] a PAR

carrier.

Sec. 17. NRS 704.68924 is hereby amended to read as

follows:

704.68924 “Discretionary service” means any

telecommunication service which is not otherwise classified as a

basic network service, a competitive service , a deregulated service

or [any] an other essential service, or which is reclassified as a

discretionary service pursuant to NRS 704.6896.

Sec. 18. NRS 704.68928 is hereby amended to read as

follows:

704.68928 “Electing PAR carrier” means [an incumbent local

exchange carrier regulated under an alternative plan of regulation

pursuant to NRS 704.040 that has elected also to be regulated

pursuant to NRS 704.68904 to 704.68984, inclusive, by filing with

the Commission a statement] a PAR carrier which:

1. Makes an election to become an electing PAR carrier

pursuant to NRS 704.68948[.] ; and

2. Is regulated in the manner described in that section.

Sec. 19. NRS 704.68948 is hereby amended to read as

follows:

704.68948 [An incumbent local exchange carrier that is

regulated under an alternative plan of regulation pursuant to NRS

704.040 may elect also to be]

1. A PAR carrier may make an election to become an electing

PAR carrier that is regulated pursuant to NRS 704.68952,

704.68956 and 704.6898. Such regulation is in addition to any

other regulation that otherwise applies to the PAR carrier

pursuant to NRS 704.68904 to 704.68984, inclusive, [by filing]

and sections 2 to 7, inclusive, of this act.

2. To make an election pursuant to this section, the PAR

carrier must file with the Commission a written statement of its

election to [be so regulated.] become an electing PAR carrier. The

written statement must:

(a) Identify the PAR carrier; and

(b) Include the date that its election becomes effective.

Sec. 20. NRS 704.68952 is hereby amended to read as

follows:

704.68952 1. [An] Except as otherwise provided in this

section, if a PAR carrier makes an election to become an electing

PAR carrier pursuant to NRS 704.68948, on and after the date

that the election becomes effective:

(a) The electing PAR carrier is not subject to any review of

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

Commission relating to the net income or rate of return of

the electing PAR 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

pursuant to NRS 704.040.

2. Except as otherwise provided in subsection 1, the] ;

(b) The Commission shall not consider the rate of return, rate

base or any other earnings of the electing PAR 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] ;

network service provided by the electing PAR carrier unless the

electing PAR carrier agrees to the decrease in the rate[.

4. Except for a telecommunication service reclassified pursuant

to NRS 704.6896, or except where an electing carrier elects to

continue participation in an alternative plan of regulation pursuant

to paragraph (b) of subsection 1, an] ; and

(d) The electing PAR carrier shall not , during the term of its

plan of alternative regulation, increase any rate that the electing

PAR carrier charges for a basic network [services.

5.] service, other than the rate for a telecommunication service

that is:

(1) Reclassified pursuant to NRS 704.6896; or

(2) Offered by the electing PAR carrier pursuant to NRS

704.68964, 704.68968 or 704.68972.

2. An electing PAR carrier may terminate its plan of

alternative regulation at any time by filing with the Commission a

notice of its intention to terminate the plan. The termination is

effective on the date the electing PAR carrier specifies in the

notice.

3. If an electing PAR carrier terminates its plan of alternative

regulation pursuant to subsection 2, the electing PAR carrier

shall file with the Commission a general rate application

pursuant to subsection 3 of NRS 704.110 not later than 180 days

after the date that the termination of its plan of alternative

regulation becomes effective.

4. If an electing PAR carrier does not terminate its plan of

alternative regulation pursuant to subsection 2, the plan

terminates at the end of the first 5-year period after the date the

plan becomes effective and at the end of each successive 5-year

period after that date unless:

(a) Not later than 180 days before the end of the first 5-year

period after the date the plan becomes effective and at the end of

each successive 5-year period after that date, the electing PAR

carrier files with the Commission a written request to continue its

participation in the plan of alternative regulation for another

5-year period; and

(b) The Commission grants the written request of the electing

PAR carrier to continue its participation in the plan of alternative

regulation for another 5-year period in accordance with the

provisions of this section.

5. If an electing PAR carrier files a written request pursuant

to subsection 4, the written request must be accompanied by a

written report prepared in a form prescribed by the Commission.

The written report must:

(a) Contain a summary of the operations of the electing PAR

carrier for the period covering the immediately preceding 5 fiscal

years; and

(b) Include, but is not limited to, the rate of return and

earnings of the electing PAR carrier for the period specified in

paragraph (a), other than the rate of return and earnings

obtained from deregulated services.

6. Not later than 180 days after the date that an electing PAR

carrier files a written request pursuant to subsection 4, the

Commission shall conduct and complete a proceeding to review

the written request and report. The Commission shall not allow

any person to be a party to the proceeding other than the electing

PAR carrier, the regulatory operations staff of the Commission

and the staff of the Bureau of Consumer Protection in the Office

of the Attorney General.

7. In the proceeding, the Commission shall:

(a) Determine whether the existing rates of the electing PAR

carrier for basic network services are just and reasonable

pursuant to subsection 1 of NRS 704.040; and

(b) Based upon that determination, issue an order which:

(1) Grants the written request of the electing PAR carrier

and authorizes the electing PAR carrier to participate in the plan

of alternative regulation for another 5 years; or

(2) Denies the written request of the electing PAR carrier

and directs the electing PAR carrier to file with the Commission a

general rate application pursuant to subsection 3 of NRS 704.110

not later than 180 days after the date the Commission issues the

order.

8. 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 PAR carrier is not

eligible to receive money from the fund created pursuant to

subsection 7 of NRS 704.040.

9. For the purposes of this section:

(a) The plan of alternative regulation for an electing PAR

carrier shall be deemed to have a term of 5 years.

(b) If a PAR carrier is operating as an electing PAR carrier on

July 1, 2003, the first 5-year term for its plan of alternative

regulation shall be deemed to begin on July 1, 2003.

PAR carrier after July 1, 2003, the first 5-year term for its plan of

alternative regulation shall be deemed to begin on the date that its

election becomes effective.

Sec. 21. NRS 704.68956 is hereby amended to read as

follows:

704.68956 [Nothing in] The provisions of NRS 704.68904 to

704.68984, inclusive, [authorizes] and sections 2 to 7, inclusive, of

this act do not authorize an electing PAR 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 NRS

704.68912, as set forth in the tariffs of the electing PAR carrier that

are in effect on October 1, 1999.

Sec. 22. NRS 704.6896 is hereby amended to read as follows:

704.6896 1. The Commission may, at any time, upon its own

motion or 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.

3. If the Commission receives a written request for

reclassification from a PAR carrier, the Commission shall act

upon the request not later than 120 days after the date the

Commission receives the request.

Sec. 23. NRS 704.68964 is hereby amended to read as

follows:

704.68964 1. [An electing] A PAR carrier may, pursuant to

this section and in accordance with NRS 704.68976, exercise

flexibility in the pricing , the terms or both the pricing and terms

of:

(a) [Competitive services and discretionary services.] Any

competitive service or discretionary service. The Commission shall

not specify a maximum rate for any competitive [services] service

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] service provided by the PAR carrier.

(b) Any package of services, which may include basic network

services, competitive services, discretionary services , [and] other

essential services[.] and services and products that are not subject

to the jurisdiction of the Commission. The Commission shall not

specify a maximum rate for a package of services provided by the

PAR carrier.

flexibility in the pricing, the terms or both the pricing and terms

of the tariffed service in a contract for service to an individual

customer, to respond to competition by one or more competitive

suppliers in the market for telecommunication service for

business customers. The flexibility exercised by the PAR carrier

pursuant to this paragraph:

(1) May include, but is not limited to, using volume or term

discounts, and modifications to tariffed terms and conditions; and

(2) May not be used to provide volume or duration

discounts to rates or modifications to tariffed terms and conditions

for telecommunication service for an offering made to all or any

class of business customers.

2. Except as otherwise provided in this subsection, [an

electing] a PAR carrier may, upon [30-days’] 20-days’ notice to the

Commission in writing, exercise flexibility in the pricing , the

terms or both the pricing and terms of [its] any service or package

of services that may be subject to such flexibility pursuant to

subsection 1 , and the PAR carrier is exempt, with respect to the

pricing of [its] each such service or package of services, from

the provisions of NRS 704.100 and 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] each service or package of

services that will be subject to such flexibility ; [in pricing;]

(b) The terms and conditions applicable to [the] each service or

package of services;

availability of [the] each service or package of services;

(d) The price or prices of [the services or packages] each service

or package of services; [and]

(e) A certificate which provides that [the electing] :

(1) The PAR carrier has prepared a cost study of the price

floor to support the price or prices [for] of each service that will be

subject to such flexibility or each service included in the package

of services that will be subject to such flexibility; and [that, on]

(2) 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 service or package of services [.] ; and

(f) A form of notice that will be posted by the

Commission.

The notice requirements of this subsection do not apply to [an

electing] a PAR carrier with respect to the pricing or terms of any

competitive service or any package of services [or for packages]

comprised exclusively of competitive services.

3. The price or prices of each service that is subject to

flexibility pursuant to this section must not be lower than the

price floor for that service. The price [for a] or prices of each

package of services that is subject to flexibility pursuant to this

section must not be lower than the lesser of:

(a) The sum of the price floors for each [of the services

contained] service included in the package; or

(b) The sum of the prices of the basic network services, as set

forth in the tariffs of the [electing] PAR carrier, and the price floors

for each of the other services [contained] included in the package.

4. [The Commission shall not specify a maximum rate for a

package of services.

5. Each of the services] Each service included in a package

[pursuant to paragraph (b) of subsection 1] of services that is

subject to flexibility pursuant to this section must be made

available on an individual basis.

[6. An electing]

5. A PAR carrier must provide [30-days’] 20-days’ notice to

the Commission in writing before the [electing] PAR carrier may

implement any amendment or change to [an existing service

noticed] a service or package of services which is subject to

flexibility pursuant to this section and for which the PAR carrier

had previously provided notice to the Commission pursuant to

subsection 2.

6. Notwithstanding any other provision of law, if a PAR

carrier charges a customer a fixed price or amount for a package

of services that is subject to flexibility pursuant to this section, the

PAR carrier, in any bill or statement for the package of services,

is permitted to specify only the fixed price or amount for the

package of services and is not required to:

(a) Identify each separate service or component included in

the package of services; or

(b) Specify the unit price or amount charged for each separate

service or component included in the package of services.

Sec. 24. NRS 704.68968 is hereby amended to read as

follows:

704.68968 [An electing] A PAR carrier may establish

promotional price reductions 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] PAR carrier, where facilities permit, on a

nondiscriminatory basis during the 12-month period.

Sec. 25. NRS 704.68972 is hereby amended to read as

follows:

704.68972 1. [An electing] A PAR carrier may introduce new

services upon [30-days’] 10-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;

availability of each new service;

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

(e) A certificate [that] which provides that [the electing] :

(1) The PAR carrier has prepared a cost study of the price

floor to support the price or prices [for] of each new service ; and

[that, on]

(2) 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

NRS 704.68964.

3. Each new service is exempt from the provisions of NRS

704.100 and 704.110 and the regulations of the Commission

relating thereto.

4. Unless otherwise classified by the Commission as a

[competitive] deregulated service pursuant to its regulations, a new

service must be classified as a [discretionary] competitive service

for which the Commission shall not specify a maximum rate. The

[electing] PAR carrier shall set the price of the new service above

the price floor [of the] for that service.

5. As used in this section, a “new service” means a

telecommunication 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. 26. NRS 704.68976 is hereby amended to read as

follows:

704.68976 The rates charged by [an electing] a PAR carrier for

services, except for competitive services, must be geographically

averaged throughout the service territory in which the [electing]

PAR 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. 27. NRS 704.6898 is hereby amended to read as follows:

704.6898 The intrastate access prices charged by an electing

PAR carrier must not exceed the interstate access prices charged by

the electing PAR 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. 28. NRS 704.68984 is hereby amended to read as

follows:

704.68984 The provisions of section 8 of this act and NRS

704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive,

of this act do not:

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] :

(a) The duties of [an electing] a PAR 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 [.] ; or

(b) The authority of the Commission to act pursuant to NRS

704.281 and 704.282.

Sec. 29. This act becomes effective upon passage and

approval.

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