DEPARTMENT OF BUDGET AND FINANCE

Adoption of Chapter 6-82

Hawaii Administrative Rules

August 29, 1997

SUMMARY

Chapter 6-82, Hawaii Administrative Rules, entitled "Pay Telephone Service", is adopted.

HAWAII ADMINISTRATIVE RULES

TITLE 6

DEPARTMENT OF BUDGET AND FINANCE

CHAPTER 82

PAY TELEPHONE SERVICE

Subchapter 1 General Provisions

'6-82-1 Purpose and scope of rules; non-application of chapter 6-82

'6-82-2 Application of additional sources

'6-82-3 Definitions

'6-82-4 Enforcement of chapter 6-82; pay telephone service provider enforcement program

'6-82-5 Pay telephone service provider - public

utility

'6-82-6 Obligations of incumbent telecommunications

carrier

'6-82-7 Severability clause

''6-82-8 to 10 (Reserved)

Subchapter 2 Certification of Pay

Telephone Service Providers

'6-82-11 Certification

'6-82-12 Terms and conditions of certification

''6-82-13 to 17 (Reserved)

Subchapter 3 Location Contracts and Carrier Selection

'6-82-18 Non-impairment of existing contracts

'6-82-19 Location contracts - limitations

'6-82-20 Right to negotiate carrier selection

'6-82-21 Report on location of pay telephones

''6-82-22 to 26 (Reserved)

Subchapter 4 Rates and Charges

'6-82-27 Subsidy prohibited

'6-82-28 Pay telephone - user rates and charges

'6-82-29 No user charge for certain access

'6-82-30 Refund for uncompleted call

'6-82-31 User charge for directory assistance service

'6-82-32 Compensation for access code, 800, and debit

card calls

''7-82-33 to 37 (Reserved)

Subchapter 5 Pay Telephone Service

Standards

'6-82-38 Pay telephone service standards - general

'6-82-39 Pay telephone service standards - operations

'6-82-40 Interconnection with the public switched network

'6-82-41 Operator services

'6-82-42 Required user information at the pay telephone station

''6-82-43 to 47 (Reserved)

Subchapter 6 Public Interest Pay Telephone

'6-82-48 Public interest pay telephone - defined

'6-82-49 Installation of public interest pay telephone

'6-82-50 Funding for public interest pay telephone

'6-82-51 Cost verification

'6-82-52 User rates for public interest pay telephone

''6-82-53 to 57 (Reserved)

Subchapter 7 Institutional Pay Telephone Service

'6-82-58 Institutional pay telephone - defined

'6-82-59 Use limitations

'6-82-60 Institutional pay telephone service - user rates

'6-82-61 Applicability of other pay telephone requirements

''6-82-62 to 66 (Reserved)

'6-82-2

SUBCHAPTER 1

GENERAL PROVISIONS

'6-82-1 Purpose and scope of rules; non-application of chapter 6-82. (a) The purpose of this chapter is to adopt procedures and standards for pay telephone service that will:

(1) Foster competition in the provisioning of pay telephone service;

(2) Ensure the payment of fair compensation to providers of pay telephone service; and

(3) Protect the interests of users of pay telephones.

(b) This chapter does not apply to:

(1) International or interstate pay telephone service; or

(2) In-room telephones provided by an aggregator in a hotel, motel, hospital, school dormitory, or other such similar facility for use by the facility's guests, patients, students, or other transient (non-permanent) residents. [Eff               ] (Auth: HRS ''269‑6, 269-16.9, 269-34) (Imp: HRS ''269‑16.9, 269-34, 47 U.S.C. '276)

'6-82-2 Application of additional sources. This chapter:

(1) Shall be read in context with any applicable:

(A) Federal law and regulation, including any FCC order and regulation implementing 47 U.S.C. '276; and

'6-82-2

(B) State law and commission order and rule, including chapter 269, HRS, and chapters 6-61, 6-80, and

6-81; and

(2) Supersedes any conflicting commission order or rule that may be in effect on the effective date of this chapter. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: HRS ''269-16.9, 269-34, 47 U.S.C. '276)

'6-82-3 Definitions. As used in this chapter, unless the context clearly requires otherwise:

"Aggregator" means the same as in '269-16.8, HRS.

"ANI" means automatic number identification.

"Call" means a customer's telecommunications message attempted.

"Certificate of authority" or "COA" means the certificate issued pursuant to chapter 6-80, subchapter 2.

"Certificate of public convenience and necessity" or "CPCN" means the certificate issued pursuant to '269‑7.5, HRS.

"Certificate of registration" or "COR" means the certificate issued pursuant to chapter 6-80, subchapter 2.

"Commission" means the public utilities commission of the State.

"Completed call" means a call answered by the called party. A call is answered by a called party when the call is answered by a human recipient, an answering device, or a call processing device. A call is not a completed call when it reaches a telecommunications carrier's platform for routing to a called party.

"Consumer advocate" means the department of commerce and consumer affairs, division of consumer advocacy, of the State.

"CFR" means the Code of Federal Regulations.

'6-82-3

"FCC" means the Federal Communications Commission.

"HRS" means the Hawaii Revised Statutes.

"Incumbent telecommunications carrier" or "incumbent carrier" means the telecommunications carrier referred to in '269-7.5(c), HRS.

"Independent pay telephone service provider" means a pay telephone service provider other than the incumbent telecommunications carrier and includes both a telecommunications carrier and a non-telecommunications carrier.

"Interisland" means between and among the islands of the State.

"Interstate" means between and among the states of the United States, the territories of the United States, and the District of Columbia.

"Intrastate" means within the State.

"LATA" means local access and transport area.

"Local call" means a call within the same island, as opposed to an interisland call.

"Long distance" includes interisland, interstate, and international telecommunications service.

"Operator service" means a service provided by a telecommunications carrier to assist a customer to complete a telephone call.

"Pay telephone" means a telephone that is accessible by the public for use on a fee per call basis, independent of any other commercial transaction, and is activated for placing telephone calls by inserting a coin, calling collect, or using a calling card or by any other means. It includes a public pay telephone (i.e., a pay telephone installed in a public place), semi-public pay telephone (i.e., a pay telephone installed in a semi-public place, such as a store, restaurant, bar, and government facilities), and institutional pay telephone; provided that the term does not include the in-room telephone service described in '6‑82‑1(b)(2).

"Pay telephone service" means the provision of a pay telephone and any ancillary services.

'6-82-3

"Pay telephone service provider" or "provider" means any person that provides pay telephone service. It includes the incumbent telecommunications carrier and independent pay telephone service providers.

"Person" includes individuals, partnerships, corporations, associations, joint stock companies, public trusts, organized groups of persons, whether incorporated or not, receivers or trustees of the foregoing, municipalities, including cities, counties, or other political subdivisions of the State, or any agency, authority, or instrumentality of the State, or any one or more of the foregoing.

"Rules" means the Hawaii Administrative Rules.

"State" means the State of Hawaii.

"Tariff" means the documents that describe the service or product offered by the pay telephone service provider and prescribe the terms and conditions and the schedule of rates and charges under which the service or product is offered.

"Telecommunications carrier" means the same as in '269-1, HRS, and includes the incumbent telecommunications carrier.

"Telecommunications relay service" means the same as relay services for the deaf, hearing-impaired, and speech-impaired, under '269-16.6, HRS.

"Telecommunications service" means the same as in '269-1, HRS.

"User" means a person who uses a pay telephone to initiate a call.

"U.S.C." means the United States Code. [Eff               ] (Auth: HRS ''269‑6, 269-16.9, 269-34) (Imp: HRS ''269-16.9, 269‑34, 47 U.S.C. '276)

'6-82-4 Enforcement of chapter 6-82; pay telephone service provider enforcement program.

(a) Chapter 269, HRS, and any other applicable State law and commission rule and order apply to the enforcement of this chapter.

(b) Upon consultation with the consumer advocate, pay telephone service industry, and any

'6-82-6

other person designated by the commission, the commission may develop and maintain a pay telephone service provider enforcement program. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269‑34) (Imp: HRS ''269-16.9, 269‑34, 47 U.S.C. '276)

'6-82-5 Pay telephone service provider - public utility. Unless otherwise ordered or exempted by the commission, a pay telephone service provider is a public utility within the meaning of '269-1, HRS. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269‑34) (Imp: HRS ''269-16.9, 269‑34, 47 U.S.C. '276)

'6-82-6 Obligations of incumbent telecommunications carrier. Consistent with the purpose of fostering competition in the provisioning of pay telephone service, the incumbent telecommunications carrier shall:

(1) Offer to independent pay telephone service providers, on an unbundled basis and under a nondiscriminatory public, tariffed offering, any individual central office coin transmission service that the incumbent carrier provides to its own pay telephone operations;

(2) Offer to independent pay telephone service providers on a nondiscriminatory basis such other services that the incumbent carrier provides to its own pay telephone operations, including, as applicable:

(A) Fraud protection;

(B) Special numbering assignments;

(C) Installation and maintenance of basic pay telephone lines; and

(D) Billing and collection services where the basic, tariffed pay telephone services offered to other pay telephone service providers function only in

'6-82-6

conjunction with billing and collection services, such as where coin services require the incumbent carrier to monitor coin deposits and such information is not otherwise available to third parties for billing and collection;

(3) Establish the demarcation point for the incumbent carrier's pay telephones at the same demarcation point as that for independent pay telephone service providers;

(4) Discontinue all intrastate and interstate carrier access charge pay telephone service elements and payments and all intrastate and interstate pay telephone subsidies from basic exchange and exchange access revenues; and

(5) Extend dialing parity to all pay telephones.

[Eff               ] (Auth: HRS ''269-6, 269-16.9, 269‑34) (Imp: HRS ''269-16.9, 269‑34, 47 U.S.C. '276)

'6-82-7 Severability clause. If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: HRS ''269‑16.9, 269-34)

''6-82-8 to 10 (Reserved)

'6-82-12

SUBCHAPTER 2

CERTIFICATION OF PAY TELEPHONE SERVICE PROVIDERS

'6-82-11 Certification. (a) A telecommunications carrier granted a CPCN, COA, or COR authorizing the provision of telecommunications service in the State need not apply for an additional COA or COR in order to offer or provide intrastate pay telephone service. Any such telecommunications carrier, however, before adding or expanding the nature or scope of its telecommunications services beyond that authorized in its existing CPCN, COA, or COR, to include intrastate pay telephone service, shall file a separate tariff for its new service, unless ordered otherwise by the commission.

(b) Any person, other than a telecommunications carrier covered by subsection (a), seeking to offer, initiate, or provide intrastate pay telephone service shall apply in writing to the commission for a certificate of registration. The application shall comply with the applicable provisions of chapter 6-80, subchapter 2.

(c) The provisions of chapter 6-80, subchapter 2, govern the issuance or denial of any certificate authorizing pay telephone service. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: HRS ''269-16.9, 269-34, 47 U.S.C. '276)

'6-82-12 Terms and conditions of certification. Any certificate issued authorizing pay telephone service and any holder of such certificate are subject to the terms and conditions enumerated in chapter 6‑80, subchapter 2, including those relating to suspension and revocation of certificates. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: HRS ''269‑7.5, 269-16.9, 269-34, 47 U.S.C. '276)

'6-82-13

''6-82-13 to 17 (Reserved)

SUBCHAPTER 3

LOCATION CONTRACTS AND CARRIER SELECTION

'6-82-18 Non-impairment of existing contracts. Nothing in this chapter affects any contract between a location provider and a pay telephone service provider or interLATA or intraLATA telecommunications carrier entered into before February 8, 1996, the date of the enactment of the Federal Telecommunications Act of 1996. [Eff               ] (Auth: HRS ''269-6, 269.9, 269‑34) (Imp: 47 U.S.C. '276)

'6-82-19 Location contracts - limitations. (a) No location contract between a location provider and a pay telephone service provider may:

(1) Impose premature contract termination penalties or termination liability, unless a premature termination penalty or liability provision is clearly and plainly set forth in the:

(A) Contract with the location provider; and

(B) Pay telephone service provider's tariff.

(2) Grant to the pay telephone service provider an exclusive right to place pay telephones on the location provider's premises; or

(3) Restrict the location provider from using the pay telephones of any other pay telephone service provider.

(b) Notwithstanding subsection (a)(1), a pay telephone service provider may not enforce any premature termination penalty or liability provision

'6-82-21

included in any location contract entered into on or after February 8, 1996, for any premature termination occurring between January 31, 1997 and one year after the effective date of this chapter.

[Eff ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: HRS '269-16.9, 269-34, 47 U.S.C. '276)

'6-82-20 Right to negotiate carrier selection. A pay telephone service provider has the right to negotiate with the location provider on the location provider's selecting and contracting with and, subject to the terms of any agreement with the location provider, to select and contract with the carriers that carry interLATA and intraLATA calls from the pay telephone service provider's pay telephone.

[Eff ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: 47 U.S.C. '276)

'6-82-21 Report on location of pay telephones. Each pay telephone service provider, on an annual basis, shall submit to the commission a description of:

(1) The current locations of its pay telephone stations, by exchange or geographical areas; and

(2) The changes from its previous filing, noting the deletions and additions of pay telephone stations.

In addition to the annual filing, the commission may, at any time, require a pay telephone service provider to submit its current, updated listing of its pay telephone stations. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: HRS ''269-16.9, 269‑34, 47 U.S.C. '276)

'6-82-22

''6-82-22 to 26 (Reserved)

SUBCHAPTER 4

RATES AND CHARGES

'6-82-27 Subsidy prohibited. The cross-subsidization of pay telephone service by basic exchange service or any local access charge or any other telecommunications service is prohibited. [Eff ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: HRS ''269-16.9, 269-34, 47 U.S.C. '276)

'6-82-28 Pay telephone - user rates and charges. (a)  Unless demonstrated that market failures do not allow for market-based rates, a pay telephone service provider shall provide its service to users of its pay telephone at the rates and on the terms and conditions as the market may determine. The rate for local calls shall be at a flat fee per call. No limitation may be placed on the duration of a call, except that, if required by the public interest, the commission, by order, may impose or allow the imposition of a limitation.

(b) A pay telephone service provider shall file tariffs with the commission, setting forth the rates, terms, and conditions of its pay telephone service. The tariffs shall be processed in compliance with the applicable provisions of:

(1) The commission's orders and rules, including chapter 6-80, subchapter 4;

(2) The terms and conditions of the provider's CPCN, COA, or COR; and

(3) Federal law and regulation, including:

(A) 47 U.S.C. '276; and

'6-82-29

(B) Any FCC order and regulation implementing 47 U.S.C. '276.

Where it is demonstrated that market failures do not allow for market-based rates, the commission shall determine the rates for pay telephone service.

(c) Where locational monopoly in the provision of pay telephone service occurs as a result of market failure, whether due to the size of the location or the caller's lack of time to identify potential substitute pay telephones or any other factor, the commission may impose limitations and conditions, including capping the number of calls subject to

compensation that may be made from a particular pay telephone, to limit the exercise of locational market power. [Eff               ] (Auth: HRS ''269-6, 269‑16.9, 269-34) (Imp: HRS ''269-8, 269-16, 269‑16.9, 269-34, 47 U.S.C. '276)

'6-82-29 No user charge for certain access. A pay telephone service provider shall provide access to the user of the pay telephone, at no charge and without the necessity of inserting a coin or any other access device, to the following:

(1) Dial tone;

(2) The operator or telecommunications carrier of the user's choice;

(3) Telecommunications relay service via 511 and 711 dialing;

(4) Toll-free numbers;

(5) The long distance carrier of the user's choice;

(6) The telecommunications carrier's facilities, through which the user can:

(A) Report service trouble or complaints; or

(B) Request refunds or general assistance;

(7) Emergency services via 911 dialing; and

(8) Repair service. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp:

'6-82-29

HRS ''269-8, 269‑16, 269-16.9, 269-34, 47 U.S.C. '276)

'6-82-30 Refund for uncompleted call. Each pay telephone must be programmed to return, promptly after the user hangs up, the coins or money deposited by the user in an attempted but uncompleted call. Attempted but uncompleted calls include calls that result in the user encountering a:

(1) Busy signal;

(2) Ring but no answer; or

(3) Network recording, such as a recording informing the user that the dialed telephone number has been disconnected. [Eff               ] (Auth: HRS ''269-6, 269‑16.9, 269-34) (Imp: HRS ''269-8, 269‑16, 269-16.9, 269-34, 47 U.S.C. '276)

'6-82-31 User charge for directory assistance service. (a) A pay telephone service provider may charge the user of its pay telephone a market-based rate for directory assistance service.

(b) If the incumbent telecommunications carrier imposes a charge on a pay telephone service provider for directory assistance service made from that provider's pay telephone, the incumbent carrier must impute the same charge for directory assistance service to its own pay telephones. [Eff               ] (Auth: HRS ''269-6, 269‑16.9, 269-34) (Imp: 47 U.S.C. '276)

'6-82-32 Compensation for access code, 800, and debit card calls. (a) A pay telephone service provider shall be fairly compensated for each completed compensable call from the carrier to whom the call is routed. As used in this section, a

'6-82-38

"compensable call" means access code calls, subscriber 800 and other toll free calls, and debit card calls. It also includes 0+ calls in the absence of a contract providing compensation to the pay telephone service provider.

(b) The applicable FCC orders and regulations, as they may be amended from time to time, govern compensation for compensable calls.

[Eff ] (Auth: HRS ''269-6, 269-16.9, 269-34) (Imp: 47 U.S.C. '276)

''6-82-33 to 37 (Reserved)

SUBCHAPTER 5

PAY TELEPHONE SERVICE STANDARDS

'6-82-38 Pay telephone service standards - general. A pay telephone service provider shall:

(1) Offer or provide pay telephone service according to its tariff on file with the commission;

(2) Not unreasonably discriminate between and among customers in providing pay telephone service;

(3) Not unreasonably discriminate between and among localities in providing pay telephone service;

(4) Comply with all federal laws and regulations relating to pay telephone service, including any FCC order and regulation implementing 47 U.S.C. '276; and

(5) To the extent applicable, comply with the telecommunications standards set forth in chapter 6-80, subchapters 8, 9, and 11. [Eff               ] (Auth: HRS ''269-6,

'6-82-38

269‑16.9, 269-34) (Imp: HRS ''269-16.9, 269‑34, 47 U.S.C. '276)

'6-82-39 Pay telephone service standards - operations. The following minimum operating standards apply:

(1) A pay telephone station shall be adequately lighted so that its placards and touch tone dials are easily visible;

(2) Unless otherwise ordered or exempted by the commission, pay telephones shall be capable of completing both local and long distance calls;

(3) Pay telephone equipment shall be maintained in a clean and operable manner;

(4) Pay telephone equipment connection to the public switched network shall comply with any applicable:

(A) FCC regulations under 47 CFR Part 68, unless exempted by 47 CFR '68.2(a)(1) or any other applicable exemption under 47 CFR Part 68;

(B) National Electrical Safety Code standards; and

(C) National Electrical Code standards;

(5) Pay telephones shall offer or provide single‑line dial tone with touch tone dialing. In addition, pay telephones shall provide dial tone first, without charge, to allow free access to the services listed in '6‑82‑29;

(6) Pay telephones shall be configured and programmed so as not to require the payment of a higher charge than is tariffed by the pay telephone provider;

(7) Pay telephones shall be configured and programmed to charge only for completed calls. Pay telephones shall be programmed to return all coins or money used to make calls that are not completed;

'6-82-40

(8) Coin operated pay telephones shall be capable of receiving nickels, dimes, and quarters;

(9) Pay telephones operated by credit cards or other access methods shall clearly identify all credit cards or access methods that may be used;

(10) The provisioning of pay telephone service shall comply with any applicable:

(A) Federal law and regulation, including provisions of the Americans with Disabilities Act; and

(B) State statutes and rules pertaining to the access or use of pay telephones by the disabled; and

(11) A pay telephone keypad shall contain both alphabetic and numeric characters. The use of a letterless keypad for a pay telephone is prohibited. [Eff               ] (Auth: HRS ''269-6, 269-16.9, 269‑34) (Imp: HRS ''269-16.9, 269-34, 47 U.S.C. '276)

'6-82-40 Interconnection with the public switched network. (a) All pay telephones shall be interconnected with the public switched network in accordance with applicable:

(1) Federal law and regulation;

(2) State law and commission order and rule; and

(3) Tariffs and interconnection agreements.

(b) Pay telephone service providers shall enter into any necessary access, interconnection, and network termination agreements, consistent with chapter 6-80.

(c) A telecommunications carrier furnishing access necessary for a pay telephone to be interconnected with the public switched network shall provide such access at a flat rate. [Eff               ] (Auth: HRS ''269‑6, 269-16.9, 269‑34) (Imp: HRS ''269-16.9, 269‑34, 47 U.S.C. '276)

'6-82-41

'6-82-41 Operator services. A pay telephone service provider: