Case Background
Section
364.01, Florida Statutes (F.S.), grants the Commission jurisdiction to regulate
telecommunications companies. In accordance with Section 364.33, F.S., a person
may not provide telecommunications services without a certificate of necessity
or a certificate of authority granted by the Commission. Section 364.335, F.S., prescribes the
required elements of an application for a certificate of authority, including
information demonstrating the applicant’s managerial, technical, and financial
ability to provide telecommunications service.
Rule
25-4.004, Florida Administrative Code (F.A.C.), Certificate of Necessity or
Authority; Application, and Rule 25-4.005, F.A.C., Transfer of Certificate of
Authority, describe the required elements of an application for an original
certificate of necessity or authority and the transfer of the certificate of
necessity or authority to provide telecommunication service. Staff initiated rulemaking in this docket to
modify, streamline and clarify the application, assist in avoiding applicant
confusion, and eliminate redundancy in the rules.
On
October 10, 2017, a Notice of Development of Rulemaking was published in the
Florida Administrative Register Vol. 43, No. 196, on the amendment of Rule
25-4.004, F.A.C., and the repeal of Rule 25-4.005, F.A.C. The Commission Notice stated that written
requests for a rule development workshop must be submitted by October 24,
2017. No requests for a workshop were
received.
This
recommendation addresses whether the Commission should propose the amendment of
Rule 25-4.004, F.A.C., and the repeal of Rule 25-4.005, F.A.C. The Commission has jurisdiction pursuant to
Section 120.54, F.S., and Chapter 364, F.S.
Discussion
of Issues
Issue 1:
Should the Commission
propose the amendment of Rule 25-4.004, F.A.C., Certificates of Necessity or
Authority; Application and the repeal of Rule 25-4.005, F.A.C., Transfer of
Certificate of Necessity or Authority?
Recommendation:
Yes, the Commission should
propose the amendment of Rule 25-4.004, F.A.C., and the repeal of Rule
25-4.005, F.A.C., as set forth in Attachment A. Staff recommends that the
Commission certify amended Rule 25-4.004, F.A.C., as a minor violation rule. (Fogleman,
Page, Ollila)
Staff Analysis:
Staff recommends the
amendment of Rule 25-4.004, F.A.C., and the repeal of Rule 25-4.005, F.A.C., as
set forth in Attachment A. Rule
25-4.004, F.A.C., establishes the requirements and the necessary process to
apply for a certificate to provide telecommunications service. Rule 25-4.005, F.A.C., sets forth the
requirements for the transfer of a telecommunications service certificate.
The staff recommended amendments
to Rule 25-4.004, F.A.C., incorporate the requirements of Rule 25-4.005,
F.A.C., which would be repealed. Both
rules require a nonrefundable application fee of $500. The rule amendments update and streamline the
procedures for obtaining an original telephone certificate or the transfer of
the certificate. The recommended amendments to Rule 25-4.004, F.A.C., will
prevent confusion regarding the documentation provided by the applicant, avoid
redundancy, and clarify the application process. The amount of the application fee is
unchanged in the proposed amendments.
There are sections of the
application form for a certificate that applicants frequently do not answer
completely, which leads to the necessity of follow-up questions and additional
processing time. Staff has observed that the required financial information is
frequently not provided by the applicants.
The recommended changes to the
new application form specify that financial statements demonstrating financial
ability must be included and that if the applicant does not have audited
financial statements, it must be stated and signed by either the applicant’s
chief executive officer or chief financial officer affirming that the financial
statements are true and correct. The new application form now requires that if
a full three years of historical data is not available, the application must
include “both historical financial data and pro forma data” to supplement the
application. Staff believes that these recommended changes in the form may help
limit the number of incomplete forms submitted to the Commission, thus, making
the process more efficient.
Statement of Estimated Regulatory Costs
Pursuant to Section 120.54, F.S., agencies are encouraged
to prepare a statement of estimated regulatory costs (SERC) before the
adoption, amendment, or repeal of any rule. The SERC is appended as Attachment
B to this recommendation. The SERC analysis also includes whether the rule
amendment is likely to have an adverse impact on growth, private sector job
creation or employment, or private sector investment in excess of $1 million in
the aggregate within five years after implementation.
The SERC concludes that applicants may see cost savings
because the proposed amendments clarify the process, eliminate redundancy, and
streamline the process. The SERC states
that there is no change in the filing fee.
Staff believes that the rule amendments will not likely directly or
indirectly increase regulatory costs in excess of $200,000 in the aggregate in
Florida within one year after implementation.
Further, the SERC concludes that the rule amendments will
not likely have an adverse impact on economic growth, private-sector job
creation or employment, private sector investment, business competitiveness,
productivity, or innovation in excess of $1 million in the aggregate within
five years of implementation. Thus, the rule amendments do not require
legislative ratification pursuant to Section 120.541(3), F.S.
In addition, the SERC states that the rule amendments may
bring cost savings to small businesses, small cities and small counties. No
regulatory alternatives were submitted pursuant to paragraph 120.541(1)(a),
F.S. None of the impact/cost criteria established in paragraph 120.541(2)(a),
F.S., will be exceeded as a result of the recommended revisions.
Minor Violation Rules Certificate
Pursuant to Section 120.695, F.S., beginning July 1, 2017,
for each rule filed for adoption, the Commission is required to certify whether
any part of the rule is designated as a rule the violation of which would be a
minor violation. A list of Commission
rules designated as minor violation rules is published on the Commission’s
website, as required by Section 120.569(2), F.S. If the Commission proposes the amendment of
Rule 25-4.004, F.A.C., the rule would continue to be considered a minor
violation rule. Therefore, for purposes
of filing an amended rule for adoption with the Department of State, staff
recommends that the Commission certify proposed amended Rule 25-4.004, F.A.C.,
as a minor violation rule. If the Commission
proposes the repeal of Rule 25-4.005, F.A.C., the rule will be deleted from the
Commission’s list of rules designated as minor violation rules.
Conclusion
For the reasons described above, staff recommends that the
Commission should propose the amendment of Rule 25-4.004, F.A.C., and the
repeal of Rule 25-4.005, F.A.C., as set forth in Attachment A. Staff recommends that the Commission certify
the proposed amended Rule 25-4.004, F.A.C., as a minor violation rule.
Issue 2:
Should this docket be closed?
Recommendation:
Yes, if no requests for hearing or comments are
filed, the rules as proposed should be filed for adoption with the Secretary of
State and the docket should be closed.
Staff Analysis:
If no requests for hearing or comments are filed,
the rules as proposed should be filed for adoption with the Secretary of State
and the docket should be closed.
25-4.004 Application for Original Certificates
Necessity or Transfer of Certificate of Authority; Application.
(1)
In order to No person shall provide telecommunications service
services to the public without either a certificate of
necessity issued prior to July 1, 2011, or a certificate of authority issued
after July 1, 2011, is required. Service Services
may not be provided, nor may deposits or payment for service services
be collected, until the effective date of a certificate or transfer of a certificate.
However, marketing and development activities may begin prior to the effective
date of the certificate at the applicant’s risk that the certificate may not be
granted. Prior to certification, the applicant must advise the public in any
customer contacts or advertisements that certification has not and may not be
granted.
(2)
Each An applicant for a certificate of authority shall apply
by using submit an application on Form PSC 1020 (1/18) PSC/TEL
162 (12/12), entitled “Application Form for Original Authority or
Transfer of Authority to Provide Telecommunications Company Service In
Within the State of Florida.,” The application which
is incorporated into this rule by reference and which is available at [Dept.
of State hyperlink], http://www.flrules.org/Gateway/reference.asp?No=Ref-02034,
and from the Florida Public Service Commission’s website at www.floridapsc.com/utilities/TelecomCLECApplication/
www.floridapsc.com/utilities/telecomm/,
or from by contacting the Florida
Public Service Commission’s Office of Industry Development and Market
Analysis Telecommunications.
Except as provided in Section 364.33, F.S., a certificate holder and the
person seeking to obtain the certificate by transfer from the holder shall
submit a joint application using form PSC1020 (1/18). A non-refundable application
or transfer fee of $500.00 must accompany the filing of each
application. The Commission’s
acceptance of the application fee does not imply that the application,
transfer, or sale of a certificate will be granted.
(3)
The company transferring the certificate shall pay to the Florida Public
Service Commission all regulatory assessment fees owed pursuant to Section 364.336,
F.S., and Rule 25-4.0161, F.A.C.
(4)(3)
The An application for certificate of authority or transfer
shall be filed with the Office of Commission Clerk, Florida Public
Service Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850.
(4)
Each holder of a certificate of necessity or authority shall file with the
Commission’s Office of Commission Clerk updated information for the following
items within ten days after a change occurs:
(a)
The street address of the certificate holder including number, street name,
city, state and zip code, and the mailing address if it differs from the street
address.
(b)
Name, title, and phone number of the individual responsible for contact with
the Commission.
Rulemaking
Authority 350.127(2) FS. Law Implemented 350.113 350.127(1), 364.32,
364.33, 364.335 364.336, FS. History–New 12-1-68, Formerly 25-4.04,
Amended 12-16-12, ____________.
25-4.005 Transfer of Certificate of
Necessity or Authority.
(1)
Except as provided in Section 364.33, F.S., a certificate holder and the person
seeking to obtain the certificate by transfer from the holder shall submit a
joint application on Commission Form PSC/TEL 162 (12/12), entitled “Application
Form for Authority to Provide Telecommunications Company Service Within the
State of Florida,” incorporated by reference into Rule 25-4.004, F.A.C. The
application shall be filed with the Office of Commission Clerk. A nonrefundable
application fee of $500.00 must accompany the filing of each application to
cover processing costs. The Commission’s acceptance of the application fee does
not imply that the application for transfer of a certificate will be granted.
(2)
The company transferring the certificate shall pay to the Commission all
regulatory assessment fees owed pursuant to Sections 350.113 and 364.336, F.S.
and Rule 25-4.0161, F.A.C.
Rulemaking
Authority 350.127(2) FS. Law Implemented 350.113, 364.335, 364.336 FS.
History–New 12-1-68, Amended 5-4-81, Formerly 25-4.05, Amended 9-16-99,
12-16-12, Repealed___________
