0001| SENATE BILL 850
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| BEN D. ALTAMIRANO
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO TELECOMMUNICATIONS; AMENDING AND ENACTING SECTIONS
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0012| OF THE NMSA 1978 TO MODIFY THE NEW MEXICO TELECOMMUNICATIONS
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0013| ACT.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 63-9A-1 NMSA 1978 (being Laws 1985,
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0017| Chapter 242, Section 1) is amended to read:
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0018| "63-9A-1. SHORT TITLE. [Sections 1 through 21 of this
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act] Chapter 63, Article 9A NMSA 1978 may be cited as the
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0020| "New Mexico Telecommunications Act"."
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0021| Section 2. Section 63-9A-2 NMSA 1978 (being Laws 1985,
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0022| Chapter 242, Section 2, as amended) is amended to read:
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0023| "63-9A-2. PURPOSE AND FINDINGS.--
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0024| A. The legislature declares that it remains the
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0025| policy of the state [of New Mexico] to maintain the
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0001| availability of access to telecommunications services at
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0002| affordable rates. Furthermore, it is the policy of [this]
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0003| the state to have comparable message telecommunications
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0004| service rates, as established by the commission, for comparable
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0005| markets or market areas. To the extent that it is consistent
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0006| with maintaining availability of access to service at
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0007| affordable rates and comparable message telecommunications
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0008| service rates, it is further the policy of [this] the state
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0009| to encourage competition in the telecommunications industry,
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0010| thereby allowing access by the public to [resulting] rapid
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0011| advances in telecommunications technology. It is the purpose
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0012| of the New Mexico Telecommunications Act to permit a regulatory
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0013| framework that will allow an orderly transition from a
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0014| regulated telecommunications industry to a competitive market
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0015| environment.
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0016| B. The purposes of the New Mexico
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0017| Telecommunications Act are intended to be consistent with the
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0018| federal Telecommunications Act of 1996, and to provide for the
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0019| transition to a competitive telecommunications industry and to
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0020| provide the commission guidance during this transition. A
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0021| competitive market environment is intended, among other
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0022| benefits, to encourage continued investment in the state's
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0023| infrastructure and to allow cost recovery for this investment.
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0024| C. The legislature finds that consumers demand
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0025| choice and variety in telecommunications services. No single
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0001| telecommunications company, unless designated as a carrier of
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0002| last resort, shall be singly responsible for providing
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0003| telecommunications services in an area. Wholesale regulation
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0004| pursuant to the federal Telecommunications Act of 1996 and end-
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0005| user choice of services from multiple companies will promote
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0006| the availability of affordable telecommunications services.
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0007| D. The legislature finds that access by all New
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0008| Mexico consumers, including low-income consumers and those in
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0009| rural, insular and high-cost areas, to an evolving level of
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0010| telecommunications services, including interexchange services
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0011| and advanced telecommunications and information services, that
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0012| are reasonably comparable to those services and rates available
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0013| in urban areas, is in the public interest and should be
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0014| encouraged to be available to all residents."
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0015| Section 3. Section 63-9A-3 NMSA 1978 (being Laws 1985,
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0016| Chapter 242, Section 3, as amended) is amended to read:
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0017| "63-9A-3. DEFINITIONS.--As used in the New Mexico
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0018| Telecommunications Act:
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0019| A. "actual costs" means total costs incurred, as
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0020| reflected on the books of account of a telecommunications
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0021| company, to provide a service, including a reasonable profit,
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0022| and a proportionate share of joint and common costs of the
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0023| telecommunications company, as well as depreciation lives used
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0024| for financial reporting purposes;
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0025| B. "affiliate" means a person that directly or
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0001| indirectly owns or controls, is owned or controlled by or is
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0002| under common ownership or control with another person. For
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0003| purposes of this subsection, "own" means to own a ten-percent
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0004| or greater equity or equivalent interest;
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0005| [A.] C. "affordable rates" means local exchange
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0006| service rates that promote universal service within a local
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0007| exchange service area, giving consideration to the economic
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0008| conditions and actual costs of the telecommunications
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0009| company to provide service in [such] the area;
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0010| D. "affordability threshold" means the statewide
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0011| price established by the commission as the maximum amount that
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0012| a telecommunications company may charge an end-user for
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0013| universal service that qualifies for New Mexico universal
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0014| service fund reimbursement to the telecommunications company;
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0015| [B.] E. "cable television service" means the
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0016| one-way transmission to subscribers of video programming or
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0017| other programming service and subscriber interaction, if any,
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0018| [which] that is required for the selection of such video
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0019| programming or other programming service;
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0020| [C.] F. "commission" means the state
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0021| corporation commission;
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0022| [D. "competitive telecommunications service" means
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a service which has been determined to be subject to effective
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competition pursuant to Section 63-9A-8 NMSA 1978;
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E. "effective competition" means that the customers
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of the service have reasonably available and comparable
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alternatives to the service;]
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0003| G. "eligible telecommunications company" means a
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0004| telecommunications company determined to be eligible for
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0005| reimbursement from the New Mexico universal service fund;
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0006| H. "end-user" means a subscriber-customer who
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0007| purchases telecommunications services from a telecommunications
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0008| company for personal use and not for resale, directly or
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0009| indirectly, to others;
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0010| I. "enhanced services" means services offered over
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0011| common carrier transmission facilities that employ computer
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0012| processing applications that act on format, content, code,
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0013| protocol or similar aspects of the end-user's transmitted
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0014| information; provide the end-user additional different or
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0015| restructured information; or involve end-user interaction with
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0016| stored information. "Enhanced services" are not regulated;
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0017| [F.] J. "fund" means the New Mexico universal
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0018| service fund;
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0019| K. "incumbent telecommunications company" means a
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0020| telecommunications company that on February 8, 1996 provided
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0021| local exchange service in New Mexico and was deemed to be a
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0022| member of the exchange carrier association pursuant to 47
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0023| C.F.R. 69.601 (b) or is a person or entity that, on or after
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0024| February 8, 1996, became a successor or assign of such a
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0025| member;
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0001| [G.] L. "local exchange area" means a
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0002| geographic area encompassing one or more local communities, as
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0003| described in maps, tariffs or rate schedules filed with the
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0004| commission, where local exchange rates apply;
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0005| [H.] M. "local exchange service" means the
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0006| transmission of two-way interactive switched voice
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0007| communications furnished by a telecommunications company within
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0008| a local exchange area;
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0009| [I.] N. "message telecommunications service"
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0010| means telecommunications service between local exchange areas
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0011| within the state for which charges are made on a per-unit
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0012| basis, not including wide area telecommunications service, or
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0013| its equivalent, or individually negotiated contracts for
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0014| telecommunications services;
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0015| [J. "noncompetitive telecommunications service"
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means a service which has not been determined to be subject to
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effective competition pursuant to Section 63-9A-8 NMSA 1978;
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K.] O. "private telecommunications service"
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0019| means a system, including the construction, maintenance or
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0020| operation thereof, for the provision of telecommunications
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0021| service, or any portion of such service, by a person or entity
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0022| for the sole and exclusive use of that person or entity and not
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0023| for resale, directly or indirectly. For purposes of this
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0024| definition, the person or entity [which] that may use such
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0025| service includes any affiliates of the person or entity,
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0001| provided that at least eighty percent of the assets or voting
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0002| stock of the affiliates is owned by the person or entity. If
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0003| any other person or entity uses the telecommunications service,
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0004| whether for hire or not, the private telecommunications service
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0005| is a public telecommunications service;
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0006| [L.] P. "public telecommunications service"
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0007| means the transmission of signs, signals, writings, images,
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0008| sounds, messages, data or other information of any nature by
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0009| wire, radio, lightwaves or other electromagnetic means
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0010| originating and terminating in [this] the state regardless
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0011| of actual call routing. "Public telecommunications service"
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0012| does not include the provision of terminal equipment used to
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0013| originate or terminate such service; private telecommunications
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0014| service; broadcast transmissions by radio, television and
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0015| satellite broadcast stations regulated by the federal
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0016| communications commission; radio common carrier services,
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0017| including but not limited to commercial mobile [telephone]
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0018| radio service and radio paging; or one-way cable television
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0019| service; [and]
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0020| Q. "retail telecommunications service" means
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0021| telecommunications services offered for sale to an end-user;
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0022| R. "rural area" means any study area as referenced
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0023| in the federal Telecommunications Act of 1996 that does not
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0024| include any incorporated place of ten thousand inhabitants or
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0025| more;
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0001| S. "rural telephone company" means "rural telephone
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0002| company", as defined in the federal Telecommunications Act of
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0003| 1996;
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0004| T. "small telephone company" means a
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0005| telecommunications company providing local exchange service
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0006| having fewer than fifty thousand access lines in service in New
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0007| Mexico and that has fewer than two percent of the nation's
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0008| subscriber lines installed in the aggregate nationwide;
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0009| [M.] U. "telecommunications company" means an
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0010| individual, corporation, partnership, joint venture, company,
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0011| firm, association, proprietorship or other entity [which]
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0012| that provides public telecommunications service;
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0013| V. "telecommunications service" is that service
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0014| offered for a fee directly to the public, or to such classes of
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0015| users as to be effectively available directly to the public,
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0016| regardless of the facilities used, and does not include
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0017| telecommunications services that are deregulated as of July 1,
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0018| 1997 or enhanced services;
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0019| W. "universal service" means one-party; voice-
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0020| grade; touch-tone; access to telephone relay systems; access to
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0021| directory assistance; access to interchange carriers; access to
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0022| emergency services, including 911 and E911; listings; and those
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0023| telecommunications services that the commission may determine
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0024| from time to time are essential for education, public health or
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0025| public safety, including access to emergency services, services
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0001| for the deaf and disabled, services to schools, health care
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0002| services and library services;
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0003| X. "wholesale regulation" means regulation that
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0004| applies only to the sale of wholesale telecommunications
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0005| services;
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0006| Y. "wholesale telecommunications service" means a
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0007| telecommunications service offered for resale or unbundled
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0008| network elements offered by a telecommunications company
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0009| pursuant to the federal Telecommunications Act of 1996;
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0010| Z. "wire center" means the location where the
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0011| telephone company terminates outside plant cables and connects
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0012| lines to switching equipment, also called a switch. A wire
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0013| center may have more than one switch serving the same area; and
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0014| AA. "wire center serving area" means the area of an
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0015| exchange served by a single wire center."
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0016| Section 4. Section 63-9A-5 NMSA 1978 (being Laws 1985,
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0017| Chapter 242, Section 5) is amended to read:
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0018| "63-9A-5. REGULATION BY COMMISSION.--Except as otherwise
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0019| provided in the New Mexico Telecommunications Act or the
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0020| federal Telecommunications Act of 1996, each public telecommu-
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0021|
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0022| nications service is declared to be affected with the public
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0023| interest and, as such, is subject to the provisions and
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0024| regulation of [that act] those acts [including the regula-
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tion thereof as hereinafter provided]."
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0002| Section 5. Section 63-9A-6 NMSA 1978 (being Laws 1985,
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0003| Chapter 242, Section 6, as amended) is amended to read:
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0004| "63-9A-6. CERTIFICATE REQUIRED.--
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0005| A. No public telecommunications service shall be
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0006| offered in this state except in accordance with the provisions
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0007| of the New Mexico Telecommunications Act.
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0008| B. No public telecommunications service shall be
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0009| offered within this state without the telecommunications company
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0010| first having obtained from the commission a certificate
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0011| declaring that the operation is in the present or future public
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0012| convenience and necessity, unless the operation is otherwise
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0013| authorized by the New Mexico Telecommunications Act.
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0014| C. The commission shall have full power and
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0015| authority to determine matters of public convenience and
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0016| necessity relating to the issuance of a certificate of public
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0017| convenience and necessity to a [provider of public
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telecommunications service] telecommunications company;
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0019| provided, however, that in keeping with the purposes of the New
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0020| Mexico Telecommunications Act, the commission shall not deny an
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0021| applicant a certificate on the grounds of need if it is shown
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0022| that the applicant possesses adequate financial resources and
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0023| technical competency to provide the service. It shall be within
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0024| the discretion of the commission to determine when and upon what
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0025| conditions plant, equipment or services may be provided under
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0001| certificates of public convenience and necessity, by more than
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0002| one [person] telecommunications company, and the commission
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0003| may attach to the exercise of rights granted by the certificate
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0004| such terms and conditions as, in its judgment, the public con-
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0005|
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0006| venience and necessity may require or as otherwise authorized.
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0007| [D. Notwithstanding the provisions of Subsection C
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of this section, any telecommunications company with less than
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one hundred thousand access lines holding a certificate of
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public convenience and necessity to provide local exchange
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service to the public shall have the exclusive right to provide
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local exchange service within its certificated service territory
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and shall not be subject to competition in the provision of
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local exchange service in its certificated service territory
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unless the commission determines that public convenience and
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necessity require additional plant or equipment for the
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provision of local exchange service within the certificated
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service territory of the existing telecommunications company and
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a certificate of public convenience and necessity is granted
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pursuant to Subsection E of this section.
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E.] D. In determining whether [public
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convenience and necessity require an additional] to issue a
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0023| certificate to provide [local exchange] a public
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0024| telecommunications service [in a certificated service
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territory], the commission shall [in a proceeding in which the
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telecommunications company certificated in the affected area is
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a party] consider [and determine upon substantial evidence
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that] the following: [conditions exist
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(1) the existing telecommunications company is
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inadequate to meet the reasonable needs and convenience of the
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public;
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(2) the proposed second plant or equipment
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would eliminate such inadequacy;
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(3) it is economically feasible to operate the
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proposed second plant or equipment successfully and continuously
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for the furnishing of local exchange service;
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(4)] (1) whether the applicant [for the
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second plant or equipment] has sufficient financial resources
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0014| to provide the proposed [local exchange] service properly and
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0015| continuously;
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0016| [(5)] (2) whether the applicant [for the
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second plant or equipment] has competent and experienced
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0018| management and personnel to provide the proposed [local
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exchange] service;
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0020| [(6)] (3) whether the applicant [for the
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second plant or equipment] is willing and able to conform to
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0022| [the constitution of New Mexico and] all applicable laws of
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0023| New Mexico and the rules and regulations of the commission;
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0024| and
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0025| [(7) the applicant for the second plant or
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equipment is in every respect willing and able to provide the
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proposed local exchange service properly; and
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(8) granting the additional certificate to the
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applicant shall not have a significant adverse impact on the
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existing telecommunications company]
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0006| (4) if any exemption, suspension or
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0007| modification is available to any telecommunications company
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0008| providing the service in the area.
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0009| [F.] E. All certificates of public convenience
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0010| and necessity shall:
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0011| (1) continue in force, notwithstanding the
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0012| provisions of this section [63-9A-2 NMSA 1978]; and
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0013| (2) remain subject to all terms and conditions
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0014| imposed by statute or commission order at the time of issuance
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0015| or in connection with any subsequent amendment, notwithstanding
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0016| the provisions of [that] this section."
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0017| Section 6. Section 63-9A-6.1 NMSA 1978 (being Laws 1987,
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0018| Chapter 21, Section 4, as amended) is amended to read:
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0019| "63-9A-6.1. NEW MEXICO UNIVERSAL SERVICE FUND--
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0020| ESTABLISHMENT [BOARD] AND USE.--
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0021| A. The commission shall establish [a] and use
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0022| the "New Mexico universal service fund" to maintain [existing
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residential] local exchange service at affordable rates, to
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0024| protect universal service and to preserve the ubiquity of the
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0025| local exchange network for all consumers and competitors,
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0001| according to the following standards:
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0002| (1) the fund shall be used to provide
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0003| reimbursement to:
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0004| (a) all authorized telecommunications
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0005| companies for the difference between the regular price and the
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0006| discounted price for single-line, voice-grade local exchange
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0007| residential service offered at a discount to low-income end-
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0008| users;
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0009| (b) all authorized telecommunications
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0010| companies for approved discounts to schools, libraries and rural
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0011| health care providers to the extent reimbursement is not
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0012| provided by the federal government or another separately
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0013| established state fund;
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0014| (c) all authorized telecommunications
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0015| companies for telecommunications services to the deaf and
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0016| hearing impaired, including telephone relay service, if such
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0017| services are not funded through a separately established state
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0018| fund;
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0019| (d) eligible telecommunications companies
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0020| for the actual costs of providing eligible services that exceed
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0021| an affordability threshold, to the extent reimbursement is not
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0022| provided by the federal government; and
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0023| (e) authorized telecommunications
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0024| companies for the reimbursement of the difference between actual
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0025| costs and price for wholesale services provided by the incumbent
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0001| telecommunications company, in the event that wholesale prices
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0002| do not cover costs for unbundled network elements or
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0003| telecommunications services for resale, to the extent this
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0004| funding is not provided by direct federal reimbursement or a
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0005| separately established state fund; and
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0006| (2) the prices paid for services
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0007| described in this section and the sums received from federal
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0008| reimbursement, other separately established state funds and from
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0009| the universal service fund shall reimburse the
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0010| telecommunications company providing the service for its actual
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0011| costs, determined without a rate case.
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0012| [B. The fund shall be financed by a uniform
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surcharge on all local exchange service customers at a rate to
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be determined by the commission. Money deposited in the fund is
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not public money and the administration of the fund is not
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subject to the provisions of law regulating public funds.
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C. The commission shall:
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(1) establish eligibility criteria for
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participation in the fund which assure the availability of
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service at affordable rates without unreasonably increasing
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rates to local exchange service and message telecommunications
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service customers;]
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0023| B. The fund shall be financed by a statewide
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0024| uniform percentage surcharge on telecommunications services
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0025| provided in the state, except on service provided pursuant to a
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0001| low-income telephone assistance plan, and shall be reflected as
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0002| a separate line item on each end-user bill and trued-up
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0003| annually. Money currently or subsequently deposited in the fund
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0004| is not public money. The fund is not subject to the provisions
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0005| of law applicable to public funds.
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0006| C. The commission shall:
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0007| (1) establish eligibility criteria for payment
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0008| to and disbursement from the fund that assures the availability
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0009| of service at affordable prices without unreasonably increasing
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0010| prices to local exchange service and message telecommunications
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0011| service end-users and does not disadvantage any
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0012| telecommunications company by requiring the company to directly
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0013| reduce revenues by an amount more than the amount withdrawn from
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0014| the fund;
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0015| (2) determine which telecommunications
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0016| companies and services meet the eligibility criteria
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0017| established in Paragraph (1) of this subsection; and
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0018| (3) [provide for the collection of the
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surcharge and the administration and disbursement of money
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from] oversee the universal service fund.
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0021| D. The commission shall adopt rules and regulations
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0022| for the implementation and administration of the fund in
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0023| accordance with the provisions of this section, including:
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0024| (1) determination of the costs of service in
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0025| designated geographic areas within the state that shall be
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0001| smaller than a wire center serving area as determined by the
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0002| commission, except rural and small telephone companies may
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0003| designate their own geographic area as equal to or larger than a
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0004| wire center serving area. High-cost areas are those designated
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0005| geographic areas in the state in which the average cost per end-
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0006| user of providing universal service exceeds the commission-
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0007| approved statewide affordability threshold; and
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0008| (2) procedures for the collection of the
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0009| surcharge from all telecommunications companies and disbursement
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0010| from the fund to eligible telecommunications companies providing
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0011| local exchange service.
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0012| E. To collect, administer and disburse the fund,
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0013| the commission shall [establish a board composed of
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representatives from the providers of local exchange service]
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0015| designate an independent third-party fund administrator to
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0016| collect surcharge remittances and to administer and disburse
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0017| money from the fund to eligible telecommunications companies
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0018| monthly under the supervision and control of the commission
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0019| pursuant to [the] established criteria and the rules and
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0020| regulations promulgated by the commission. Reasonable expenses
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0021| incurred by the fund administrator in administering the fund
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0022| shall be recovered from the fund.
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0023| F. The universal service surcharge shall be applied
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0024| to any sale of telecommunications service that originates or
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0025| terminates in the state and is billed to an end-user in the
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0001| state, or that both originates and terminates in the state
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0002| regardless of billing address, but not to sales of wholesale
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0003| telecommunications services.
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0004| G. Collection of the surcharge to fund the New
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0005| Mexico universal service fund shall be the responsibility of all
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0006| telecommunications companies offering telecommunications
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0007| services to end-users.
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0008| H. The surcharge shall be calculated by the fund
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0009| administrator as follows:
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0010| (1) by June 1 of each year, retail revenues
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0011| subject to the surcharge and received by each telecommunications
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0012| company during the preceding calendar year shall be totaled;
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0013| (2) the amount needed for anticipated
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0014| distributions from the fund during the next year shall be
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0015| determined;
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0016| (3) the percentage of the amount totaled
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0017| pursuant to Paragraph (1) of this subsection that will produce
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0018| the amount determined pursuant to Paragraph (2) of this
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0019| subsection shall be computed;
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0020| (4) the percentage computed in Paragraph (3) of
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0021| this subsection shall be adjusted to recover and reimburse any
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0022| fund shortfalls or excesses from the previous year; and
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0023| (5) the uniform percentage multiplier and the
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0024| remittance process shall be distributed to each
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0025| telecommunications company by September 1 of each year.
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0001| I. Telecommunications companies shall remit to the
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0002| fund administrator on a monthly basis the difference between the
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0003| fund surcharge collected and the amount of disbursement from the
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0004| fund the company is qualified to receive based on the annual
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0005| amount due the company, as calculated by the fund administrator.
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0006| The fund administrator shall disburse monthly from the fund the
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0007| excess due to an eligible company over the amount of the
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0008| surcharge collected by that company.
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0009| J. The fund administrator may audit, at the expense
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0010| of the fund, any telecommunications company to ensure compliance
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0011| with the New Mexico Telecommunications Act. Findings of any
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0012| audit shall be reported to the commission."
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0013| Section 7. Section 63-9A-6.2 NMSA 1978 (being Laws 1987,
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0014| Chapter 21, Section 5) is amended to read:
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0015| "63-9A-6.2. CARRIER OF LAST RESORT.--
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0016| A. The commission shall establish rules for
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0017| designating carriers of last resort and for removing such
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0018| designation. Before designating an additional carrier of last
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0019| resort for an area served by a rural telephone company, the
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0020| commission shall find that the designation is in the public
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0021| interest. Any telecommunications company [which] that has
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0022| a certificate of public convenience and necessity permitting it
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0023| to provide message telecommunications service between or among
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0024| local exchange areas and has been designated a carrier of last
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0025| resort in a particular area shall not be allowed to terminate
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0001| or withdraw from providing message telecommunications service
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0002| between or among local exchange areas in the subject area
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0003| without an order of the commission upon a finding that there is
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0004| another telecommunications company in place capable of providing
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0005| service without interruption.
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0006| B. When two or more telecommunications companies
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0007| are certificated in an area to provide local exchange service,
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0008| the commission shall designate two companies in each designated
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0009| geographic area to serve as carriers of last resort for local
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0010| exchange service. Carriers of last resort shall be responsible
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0011| for providing universal service. This service obligation may be
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0012| met through a combination of the company's facilities and resale
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0013| of the other company's facilities when such facilities are
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0014| available. When such other facilities are not available, the
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0015| serving carrier of last resort shall provide necessary
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0016| facilities within the time frames established and in the manner
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0017| directed by the commission."
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0018| Section 8. Section 63-9A-7 NMSA 1978 (being Laws 1985,
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0019| Chapter 242, Section 7) is amended to read:
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0020| "63-9A-7. MANNER OF REGULATION. Except as otherwise
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0021| provided in the New Mexico Telecommunications Act, the granting
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0022| of any certificate of public convenience and necessity to
|
0023| provide a public telecommunications service shall not be deemed
|
0024| to require the holder [thereof] to provide other
|
0025| telecommunications services under regulation [which] that
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0001| are otherwise subject to competition."
|
0002| Section 9. Section 63-9A-8 NMSA 1978 (being Laws 1985,
|
0003| Chapter 242, Section 8, as amended) is amended to read:
|
0004| "63-9A-8. REGULATION OF RATES AND CHARGES.--
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0005| A. In accordance with the [policy] policies
|
0006| established in the New Mexico Telecommunications Act and the
|
0007| federal Telecommunications Act of 1996, the commission shall,
|
0008| by its own motion or upon petition by any interested party, hold
|
0009| hearings to determine if any public telecommunications service
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0010| is [subject to effective competition] being provided by more
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0011| than one company in the relevant market area whether through
|
0012| the company's own facilities, resale or through a mix of both.
|
0013| When the commission has made a determination that a service or
|
0014| part of a service is [subject to effective competition]
|
0015| provided by more than one company in the relevant market area
|
0016| as defined by the petitioner, the commission shall, consistent
|
0017| with the purposes of the New Mexico Telecommunications Act,
|
0018| modify, reduce or eliminate rules, regulations and other
|
0019| requirements applicable to the provision of such service,
|
0020| including the fixing and determining of specific rates, tariffs
|
0021| or fares for the service to achieve a competitive market
|
0022| environment. The commission's action may include the
|
0023| detariffing of service, the deregulation of services or the
|
0024| establishment of minimum rates [which] that will cover the
|
0025| costs for the service. Such modification shall be consistent
|
0001| with the maintenance of the availability of access to local
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0002| exchange service at affordable rates and comparable message
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0003| [telecommunication] telecommunications service rates, as
|
0004| established by the commission, for comparable markets or market
|
0005| areas, except that volume discounts or other discounts based on
|
0006| reasonable business purposes shall be permitted. Upon petition
|
0007| or request of an affected telecommunications company, the
|
0008| commission, upon a finding that the requirements of Subsection C
|
0009| of this section are met, shall modify the same or similar
|
0010| regulatory requirements for those providers of comparable public
|
0011| telecommunications services in the same relevant markets so that
|
0012| there shall be parity of regulatory standards and requirements
|
0013| for all such providers.
|
0014| B. In determining whether a service is [subject to
|
effective competition] provided by more than one company, the
|
0016| commission shall consider the following:
|
0017| (1) the extent to which services are reasonably
|
0018| available from an alternate [providers] provider in the
|
0019| relevant market area regardless of whether the alternate
|
0020| provider is reselling the service or providing the service
|
0021| through its own facilities, in whole or in part;
|
0022| (2) the ability of alternate providers to make
|
0023| functionally equivalent or substitute services readily available
|
0024| at competitive rates, terms and conditions; [and]
|
0025| (3) existing economic or regulatory barriers;
|
0001| (4) whether there is more than one provider in
|
0002| the relevant market area as defined by the petitioner; and
|
0003| (5) whether there is an alternate provider of
|
0004| similar or substitute services in the relevant market area as
|
0005| defined by the petitioner.
|
0006| C. [No provider of public telecommunications service
|
may use current revenues earned or expenses incurred in
|
conjunction with any noncompetitive service to subsidize
|
competitive public telecommunications services. In order to
|
avoid cross-subsidization of competitive services by
|
noncompetitive telecommunications services] Prices [or rates]
|
0012| charged for a [competitive telecommunications] service
|
0013| provided by more than one telecommunications company shall
|
0014| cover the cost for the provision of the service. In any
|
0015| proceeding held pursuant to this section, the party providing
|
0016| the service shall bear the burden of proving that the prices
|
0017| charged for [competitive telecommunications] the services
|
0018| cover cost.
|
0019| [D. The commission may, upon its own motion or on the
|
petition of an interested party and after notice to all
|
interested parties and customers and a hearing, reclassify any
|
service previously determined to be a competitive
|
telecommunications service if after a hearing the commission
|
finds that a service is not subject to effective competition.]"
|
0025| Section 10. A new section of the New Mexico
|
0001| Telecommunications Act is enacted to read:
|
0002| "[NEW MATERIAL] WHOLESALE REGULATION--STANDARDS.--
|
0003| A. In setting prices for wholesale telecommunications
|
0004| services, the commission shall consider the following standards:
|
0005| (1) unbundled network elements offered by
|
0006| incumbent local exchange telecommunications companies shall be
|
0007| subject to price regulation. For purposes of this section,
|
0008| "network element" means a facility or equipment used in the
|
0009| provision of a telecommunications service, including features,
|
0010| functions and capabilities provided by means of the facility or
|
0011| equipment, including subscriber numbers, databases, signaling
|
0012| systems or information sufficient for billing and collection or
|
0013| used in the transmission, routing or other provision of a
|
0014| telecommunications service. The price for unbundled network
|
0015| elements shall be at a level sufficient to recover the total
|
0016| costs of providing the unbundled network elements. "Total costs
|
0017| of an unbundled network element" means all of the actual costs
|
0018| incurred to provide the unbundled network element, as reflected
|
0019| in the books of account of the telecommunications company
|
0020| providing the network element. Prices shall be established
|
0021| using state-specific cost data, including depreciation lives as
|
0022| used for financial reporting purposes, and the reserve
|
0023| deficiency resulting from previously under-depreciated plant.
|
0024| If the books of accounts do not contain depreciation lives used
|
0025| for financial reporting purposes, then for purposes of pricing,
|
0001| the costs in the books of accounts shall be modified so the
|
0002| price for unbundled network elements includes recovery of
|
0003| depreciation lives used for financial reporting purposes. In
|
0004| establishing prices, the commission shall include recovery of a
|
0005| proportionate share of joint and common costs of the
|
0006| telecommunications company and a fair return on investment; and
|
0007| (2) consistent with the federal Telecommunications
|
0008| Act of 1996, wholesale prices for telecommunications services
|
0009| for resale shall be computed based on retail prices charged to
|
0010| end-users of the telecommunications service requested, excluding
|
0011| costs avoided by the telecommunications company. Actual retail
|
0012| avoided costs for the purpose of establishing wholesale rates
|
0013| for telecommunications services for resale are limited to retail
|
0014| advertising and promotions, retail billing, retail order taking
|
0015| and retail marketing expense. Prices for each wholesale
|
0016| telecommunications service shall be established to permit
|
0017| recovery of the actual costs associated with providing the
|
0018| wholesale service.
|
0019| B. The actual capital and other nonrecurring costs of
|
0020| expansion, extension, enhanced functionality or modification of
|
0021| a telecommunications company's network requested by another
|
0022| telecommunications company, to the extent the requested work
|
0023| exceeds the currently available facilities, shall be paid for in
|
0024| full in advance by the requesting telecommunications company
|
0025| before such work is undertaken.
|
0001| C. The commission shall not use external or internal
|
0002| subsidies and adjustments or the imputation of revenues in
|
0003| calculating any wholesale price.
|
0004| D. The commission shall not de-average wholesale rates
|
0005| to reflect costs until retail rates are similarly de-averaged."
|
0006| Section 11. A new section of the New Mexico
|
0007| Telecommunications Act is enacted to read:
|
0008| "[NEW MATERIAL] ADDITIONAL ASSURANCE OF SERVICE
|
0009| AVAILABILITY.--In order to assure availability of investment
|
0010| capital for telecommunications companies, the following costs
|
0011| and investments must be recovered by the telecommunications
|
0012| company providing the service and may take the form of a
|
0013| surcharge on the provision by the company of retail services and
|
0014| on the provision of wholesale services if the wholesale rate for
|
0015| the service is determined by a discount from the retail rate:
|
0016| A. unrecovered historical costs of operation of the
|
0017| network of a telecommunications company regulated by the
|
0018| commission; and
|
0019| B. investments made by a telecommunications company
|
0020| while under regulation that become stranded subsequent to the
|
0021| federal Telecommunications Act of 1996. In conjunction with its
|
0022| determinations required by Section 13 of this 1997 act, the
|
0023| commission shall allocate the amount of investment stranded for
|
0024| each telecommunications company annually and amortize its
|
0025| recovery over twelve months."
|
0001| Section 12. A new section of the New Mexico
|
0002| Telecommunications Act is enacted to read:
|
0003| "[NEW MATERIAL] TIME LIMITS.--The commission shall
|
0004| complete any action required or permitted pursuant to its
|
0005| authority granted or directed pursuant to the New Mexico
|
0006| Telecommunications Act within six months of the initiation of
|
0007| the matter to which the required or permitted action is
|
0008| responsive."
|
0009| Section 13. A new section of the New Mexico Telecommunications
|
0010| Act is enacted to read:
|
0011| "[NEW MATERIAL] COST REVIEW.--By January 1, 1999, the
|
0012| commission shall conclude a proceeding other than a rate case
|
0013| that establishes the cost of providing a regulated wholesale
|
0014| telecommunications service hereunder and identify for
|
0015| appropriate recovery under Section 11 of this 1997 act, the
|
0016| unrecovered historical cost of regulated service and all
|
0017| stranded investment associated with such service for each
|
0018| telecommunications company."
|
0019| Section 14. A new section of the New Mexico Telecommunications
|
0020| Act is enacted to read:
|
0021| "[NEW MATERIAL] COMPETITION.--In order to advance the
|
0022| legislative purposes of this 1997 act, maintain stability in the
|
0023| provision of services, avoid abrupt and potentially disruptive
|
0024| changes and allow small and rural telephone companies a
|
0025| sufficient period to transition into the competitive market, the
|
0001| commission shall make no finding that subjects small or rural
|
0002| telephone companies to competition prior to July 1, 2000, unless
|
0003| the small or rural telephone company has been granted a
|
0004| certificate of registration by the commission to provide
|
0005| competitive services and is engaged in providing competitive
|
0006| services outside its local exchange area."
|
0007| Section 15. TEMPORARY PROVISION.--The state corporation
|
0008| commission and universal service fund administrator shall
|
0009| establish time frames for 1997 to implement the collection of
|
0010| the universal service fund surcharge beginning January 1, 1998.
|
0011| Calculations of the surcharge for 1997 shall include the
|
0012| existing universal service fund balance.
|
0013| Section 16. SEVERABILITY.--If any part or application of
|
0014| the New Mexico Telecommunications Act is held invalid, the
|
0015| remainder or its application to other situations or persons
|
0016| shall not be affected.
|
0017| Section 17. EFFECTIVE DATE.--The effective date of the
|
0018| provisions of this act is July 1, 1997.
|
0019|
|
0020|
|
0021| FORTY-THIRD LEGISLATURE
|
0022| FIRST SESSION, 1997
|
0023|
|
0024|
|
0025| March 7, 1997
|
0001|
|
0002| Mr. President:
|
0003|
|
0004| Your PUBLIC AFFAIRS COMMITTEE, to whom has been referred
|
0005|
|
0006| SENATE BILL 850
|
0007|
|
0008| has had it under consideration and reports same WITHOUT
|
0009| RECOMMENDATION, and thence referred to the CORPORATIONS &
|
0010| TRANSPORTATION COMMITTEE.
|
0011|
|
0012| Respectfully submitted,
|
0013|
|
0014|
|
0015|
|
0016| __________________________________
|
0017| Shannon Robinson, Chairman
|
0018|
|
0019|
|
0020| Adopted_______________________ Not Adopted_______________________
|
0021| (Chief Clerk) (Chief Clerk)
|
0022|
|
0023|
|
0024| Date ________________________
|
0025|
|
0001|
|
0002| The roll call vote was 4 For 3 Against
|
0003| Yes: 4
|
0004| No: Adair, Ingle, Robinson
|
0005| Excused: Boitano, Feldman
|
0006| Absent: None
|
0007|
|
0008|
|
0009|
|
0010| S0850PA1
|
0011|
|
0012|
|
0013|
|
0014| FORTY-THIRD LEGISLATURE
|
0015| FIRST SESSION, 1997
|
0016|
|
0017|
|
0018| March 12, 1997
|
0019|
|
0020| Mr. President:
|
0021|
|
0022| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to whom
|
0023| has been referred
|
0024|
|
0025| SENATE BILL 850
|
0001|
|
0002| has had it under consideration and reports same WITHOUT
|
0003| RECOMMENDATION.
|
0004|
|
0005| Respectfully submitted,
|
0006|
|
0007|
|
0008|
|
0009| __________________________________
|
0010| Roman M. Maes, III, Chairman
|
0011|
|
0012|
|
0013|
|
0014| Adopted_______________________ Not Adopted_______________________
|
0015| (Chief Clerk) (Chief Clerk)
|
0016|
|
0017|
|
0018|
|
0019| Date ________________________
|
0020|
|
0021|
|
0022| The roll call vote was 6 For 1 Against
|
0023| Yes: 6
|
0024| No: Maloof
|
0025| Excused: Fidel, Griego, Robinson
|
0001| Absent: None
|
0002|
|
0003|
|
0004| S0850CT1
|