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SPONSOR: |
Marquardt |
DATE TYPED: |
|
HB |
639/aHBIC |
||
SHORT TITLE: |
Wireless Carriers Regulatory Act |
SB |
|
||||
|
ANALYST: |
Maloy |
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REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
$1.0 |
See
Narrative |
Recurring |
General
Fund |
|
|
|
|
|
Responses
Received From
Public
Regulatory Commission (PRC)
Office
of the Attorney General (AGO)
SUMMARY
Synopsis
of HBIC Amendment
The House Business and
Industries Committee has amended House Bill 639 as
follows:
1.
The addition of a new provision requiring
that, as part of the registration process, the carrier provide the name,
address, telephone, and e-mail contact information for the entity/person
responsible for payment of the carrier inspection fee; and
2.
The addition of a provision clearly
stating that, once the commission makes a determination that competition exists
in the wireless carrier service industry, the commission
may reduce, or all together eliminate, regulatory requirements.
Synopsis
of Original Bill
House Bill 639 creates the Wireless Carriers Regulatory Act to provide
improved regulation of wireless telecommunications services. The regulatory body responsible for administration
of the Act is the PRC.
HB 639 sets forth the
following:
1. Section 3 requires a “wireless carrier,” as
defined in Section 2 of the Bill, to file an informational form with the PRC,
and pay a registration fee of not more than $50 before operating in
2. Section 5 directs the PRC to create rules
setting forth Quality of Service Standards for wireless carriers operating in
3. Section 6 of the Bill authorizes the PRC to
impose an administrative fine on any wireless carrier that violates the
provisions of the Wireless Carriers Regulatory Act.
1.
This Bill should be read in conjunction
with the Cellular Telephone Services Act, NMSA 1978, §§ 63-9b-1 et. seq. (repealed effective
2.
Repeal of the Repealer: The Cellular Telephone Services Act, NMSA
1978, §§ 63-9b-1 et. seq.
is repealed as of
3. Wireless Regulation: The federal communications commission (FCC) regulates the entry and rates charged by wireless carriers. 42 U.S.C. § 332(c)(3)(A) (2001). Though federal regulation preempts state regulation of entry and rates charged, states are permitted to regulate other “terms and conditions”. Further, state law causes of action for damages have not been pre-empted. See 47 USC § 332(c)(3). Causes of action for damages arising under state law could include, but are not limited to, fraud in the inducement, negligent misrepresentation, deceptive trade practices, or breach of contract.
4. According to the PRC, others states have litigated the extent of the federal entry preemption and the courts have concluded that states do have authority to require telecommunications service providers doing business in the state to contribute annually to state-run universal service programs, holding that this form of regulation is not rate regulation.
5. The
Cellular Telephone Services Act, among other things, authorizes the PRC to
issue “reasonable rules” governing cellular phone service (NMSA 1978, §
63-9B-4), hold administrative hearings on complaints alleging violations of the
Act or rules issued thereunder (NMSA 1978, § 63-9B-5), levy administrative
fines, (NMSA 1978, § 63-7-23). To that
end, the PRC has issued a consumer protection rule, 17.11.16 NMAC, that
provides for the PRC’s regulatory authority over wireless carriers’ fair
marketing practices, policies regarding disconnection of service, consumer
access to pricing information, and a carrier’s duty to investigate complaints.
6. This
bill would require the PRC to create rules setting forth quality of service standards. Establishing quality of service standards
would establish certainty for wireless carriers in that they would know the
standards to which they will be accountable.
Certainty is a benefit to any company.
For the consumers, meaningful quality of service rules should result in
better service being offered.
FISCAL IMPLICATIONS
The PRC will be collecting a $50 registration
fee for every wireless carrier to operate within
Fees and penalties assessed by the PRC for
violations of the Act will also go to the general fund.
It is unclear if the $50 fee is intended to be a
one-time registration, or a renewal fee.
Will the PRC have discretion regarding the fee in the rule making
process? This will dictate how much
revenue will be recurring to the general fund.
ADMINISTRATIVE IMPLICATIONS
The PRC will use existing FTE and budget
resources in the administration of this program.
This Bill has a relationship with the Cellular Telephone
Services Act, NMSA 1978, §§ 63-9b-1 et. seq.
(repealed as of
AMENDMENTS
The Attorney General’s Office recommends the following
amendments:
1. Amend Section 2.B. of the Bill, which
provides the definition of wireless carriers should be amended as follows:
B.
"wireless carrier" means a person offering mobile radio or telephony service,
radio paging service or wireless telecommunications service for a fee in
This proposal is
intended to eliminate any ambiguity that all types of mobile services are
subject to the provisions of this Bill.
2. Amend NMSA 1978, § 63-7-23 (A)(2)
(repealed effective July 1, 2003) such that the definition of
“telecommunications provider” includes “wireless carriers,” as defined in this
Bill, and bring “wireless carriers” within the scope of the administrative
fines that may be imposed by the PRC.
3. Amend NMSA 1978, § 63-9G-2.G such that
the definition of “provider” includes “wireless carriers,” as defined in this
Bill, such that “wireless carriers” are subject to the Cramming and Slamming
Act, NMSA 1978, §§ 63-9G-1 et. seq.
The PRC recommends the
following amendments:
4. The bill does not
specify any standards for imposing administrative fines. Section 6 should cross reference NMSA 1978,
§63-7-23 and its standards for imposing fines on telecommunications carriers by
inserting the clause “pursuant to NMSA 1978, § 63-7-23” after the word “fine”
and before the words “any wireless carrier” on page 3, line 10, so that the
sentence reads: “The commission may administratively
fine pursuant to NMSA 1978, §63-7-23 any wireless carrier that violates the
provisions of the Wireless Carriers Regulatory Act.”
5. Add a new number (4) under Section 4.A
on p. 2 that says, “the name, address, telephone
number and email address of a contact person concerning payment of the Utility
and Carrier Inspection Fee as described in 63-7-20 NMSA 1978.”
SJM/njw:sb:yr