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SPONSOR: |
Sharer |
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HB |
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SHORT TITLE: |
Poor Telecommunications Service |
SB |
103 |
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ANALYST: |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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Substantial – See Narrative |
Recurring |
General
Fund |
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SOURCES OF INFORMATION
Responses
Received From
Public
Regulation Commission (PRC)
SUMMARY
Synopsis
of Bill
Senate Bill 103 requires the Public Regulation
Commission to enact rules to allow businesses to recover
revenues due to poor public telecommunications service.
Significant
Issues
SB 103 provisions will only cover businesses
that purchase service from a telecommunications provider with over 50,000 lines
which in
Quality of Service Standards for both companies
with more than 50,000 access lines are already defined in the current law,
Alternative Forms of Regulation, that sets rates, terms and conditions of
service for 5 years. AFOR is a form of “contract” where breaches in Quality of
Service Standards trigger remedies as set forth in the contract, including
individuals and businesses, but these remedies do not cover the loss of
business revenues.
Private causes of action involving loss of
business revenues are normally handled in judicial court where the burden of
proof is on the complainant who is in a better position to determine the amount
of business revenues lost.
The PRC claims that its expertise is in
determining issues of public convenience and necessity, establishing rates and
standards for telecommunications companies, not litigating a “private causes of
action” as implied in SB 103.
FISCAL IMPLICATIONS
The PRC estimates that they will need four new
FTEs at an estimated cost of $300,000 to
implement the provisions of SB 103.
These FTEs will be used to settle additional adjudications before the PRC and to
handle those that would affect the Commission in other courts.
ADMINISTRATIVE IMPLICATIONS
The PRC notes that currently it does not have
expertise in the area of lost business revenues and that the additional
workload from the provisions of SB 103 could be substantial.
DW/njw