44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TELECOMMUNICATIONS; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 8-8-6 NMSA 1978 (being Laws 1998, Chapter 108, Section 6) is amended to read:

"8-8-6. COMMISSION--DIVISIONS.--The commission shall include the following organizational units:

A. the administrative services division;

B. the consumer relations division;

C. the insurance division;

D. the legal division;

E. the telecommunications complaints division;

[E.] F. the transportation division; and

[F.] G. the utility division."

Section 2. A new section of the Public Regulation Commission Act is enacted to read:

"[NEW MATERIAL] TELECOMMUNICATIONS COMPLAINTS DIVISION.--

A. The telecommunications complaints division shall:

(1) review complaints concerning interconnection between carriers;

(2) review alleged violations of the rules governing the provision of public telecommunication services;

(3) investigate each complaint on an expedited basis; and

(4) recommend actions to the commission.

B. Each complaint shall be resolved by the commission within thirty days unless extended for good cause by an order of the commission that states with specificity the reason for and length of the extension."

Section 3. Section 63-9A-2 NMSA 1978 (being Laws 1985, Chapter 242, Section 2, as amended) is amended to read:

"63-9A-2. PURPOSE.--The legislature declares that it remains the policy of the state of New Mexico to maintain the availability of access to telecommunications services at affordable rates. Furthermore, it is the policy of this state to have comparable message telecommunications service rates, as established by the commission, for comparable markets or market areas. To the extent that it is consistent with maintaining availability of access to service at affordable rates and comparable message telecommunications service rates, it is further the policy of this state to encourage competition in the provision of public telecommunications [industry] services, thereby allowing access by the public to resulting rapid advances in telecommunications technology. [It is the purpose of the New Mexico Telecommunications Act to permit a regulatory framework that will allow an orderly transition from a regulated telecommunications industry to a competitive market environment] It is further the intent of the legislature that the encouragement of competition in the provision of public telecommunications services will result in greater investment in the telecommunications infrastructure in the state, improved service quality and operations and lower prices for such services."

Section 4. A new section of the New Mexico Telecommunications Act is enacted to read:

"[NEW MATERIAL] IDENTIFYING SUBSIDIES--REGULATIONS--PRICE CAPS.--

A. No later than October 1, 2000, the commission shall review existing rates for public telecommunications services offered by incumbent local exchange carriers with more than fifty thousand access lines and identify all subsidies that are included in the rates. The commission shall issue rules requiring that the identified subsidies appear on customer bills and establish a schedule whereby implicit subsidies be eliminated through implementation of the state rural universal service fund or through revenue-neutral rate rebalancing. For purposes of this section, "subsidies" means a rate that is priced above the cost of providing a service and that is used to maintain the rate in an area where the cost for the same or another service is higher.

B. No later than January 1, 2001, the commission shall issue rules that:

(1) establish quality of service standards;

(2) ensure adequate investment in the telecommunications infrastructure of the state;

(3) promote availability and deployment of high-speed data services;

(4) ensure the accessibility of interconnection by competitive local exchange carriers; and

(5) establish an expedited regulatory process for considering matters related to telecommunications services that are pending before the commission.

C. No later than April 1, 2001, the commission shall eliminate rate of return regulation of telecommunications carriers with more than fifty thousand access lines and implement an alternative form of regulation that establishes reasonable price caps for basic residence and business local exchange services."

Section 5. APPROPRIATION.--Five hundred thousand dollars ($500,000) is appropriated from the general fund to the public regulation commission for expenditure in fiscal year 2001 to carry out the provisions of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 shall revert to the general fund.