A JOINT MEMORIAL

REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL TO DIRECT THE APPROPRIATE INTERIM LEGISLATIVE COMMITTEE TO STUDY THE INCONSISTENCY BETWEEN STATE AND FEDERAL LAW WHEREBY AN INCUMBENT LOCAL EXCHANGE CARRIER PROVIDING SERVICES IN THE STATE MEETS THE DEFINITION OF A RURAL TELEPHONE COMPANY UNDER FEDERAL LAW BUT DOES NOT MEET THE DEFINITION OF AN INCUMBENT RURAL TELECOMMUNICATIONS CARRIER UNDER STATE LAW.

WHEREAS, an incumbent local exchange carrier is either regulated under the Rural Telecommunications Act of

New Mexico if the carrier has fewer than fifty thousand access lines or regulated under the New Mexico Telecommunications Act if the carrier has more than fifty thousand access lines; and

WHEREAS, if a local exchange carrier is regulated under the Rural Telecommunications Act of New Mexico, it is considered an incumbent rural telecommunications carrier and is subject to relaxed regulation; and

WHEREAS, if a local exchange carrier is regulated under the New Mexico Telecommunications Act, it is essentially considered a large incumbent carrier regardless of whether it has fifty thousand one access lines or hundreds of thousands of access lines; and

WHEREAS, a large incumbent carrier is subject to an alternate form of regulation, as approved by the public regulation commission, which includes price caps for residential and business local exchange service as well as quality of service and consumer protection standards; and

WHEREAS, local exchange carriers in the state range in size from a small carrier with a few hundred access lines, to a medium size carrier of approximately ninety-seven thousand access lines, to the largest carrier with more than seven hundred thousand access lines; and

WHEREAS, in some cases, an incumbent local exchange carrier in the state that does not meet the definition of an incumbent rural telecommunications carrier under New Mexico law is considered a rural telephone company under federal law; and

WHEREAS, the levels of regulation differ significantly for those incumbent local exchange carriers regulated under the Rural Telecommunications Act of New Mexico and those regulated under the New Mexico Telecommunications Act; and

WHEREAS, no middle tier of regulation exists under

New Mexico law; and

WHEREAS, the legislature has declared, specifically in the Rural Telecommunications Act of New Mexico, that rural carriers should be subject to more relaxed regulation and that the cost of regulation should be reduced; and

WHEREAS, the legislature has also declared in the

Rural Telecommunications Act of New Mexico that in helping to create a competitive telecommunications environment in the state, there should be consistency with the federal Telecommunications Act of 1996; and

WHEREAS, under the New Mexico Telecommunications Act, the legislature has declared not only the need to create a competitive telecommunications environment, but also the need to encourage investment in telecommunications infrastructure; and

WHEREAS, the role of government and the legislature should be to help achieve those objectives and to fashion a regulatory environment that not only streamlines regulation, but also enhances economic development and encourages investment in the state, and further promotes the value that telecommunications services bring to the citizens of the state of New Mexico, particularly in rural areas;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the New Mexico legislative council be requested to direct the appropriate interim legislative committee to study the most appropriate means to address the situation where an incumbent local exchange carrier does not meet the definition of an incumbent rural telecommunications carrier under New Mexico law but does meet the definition of a rural telephone company under federal law; as it considers changes in law to create consistency in regulation, to consider issues such as the need for relaxed regulation, reduction of regulatory costs, certainty of regulatory requirements, quality of service, consumer protection, the characteristics of the service area and the encouragement of economic development; and to report its findings to the first session of the forty-seventh legislature; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the co-chairs of the New Mexico legislative council and the members of the public regulation commission.