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(Parenthesis ( ) Indicate Expenditure Decreases)

Conflicts with HB470, SB408, SB373

SOURCES OF INFORMATION

Attorney General's Office (AG)

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Senate Floor Amendments

The Senate floor amendments to SB374, as amended, provide for the following:

• 付he PRC, prior to December 31, 1999, shall commence and complete an investigation of the earnings of telecommunications corporations having more than 250,000 local exchange access lines in this state and of the fairness of rates charged customers of local exchange services by those telecommunications corporations;
• 不pecify the PRC shall promulgate rules and regulations by March 31, 2000, instead of September 30, 1999;
• 不pecify the PRC shall implement a state universal service fund no later than July 1, 2000 as opposed to the original date of January 1, 2000;
• 不pecify the PRC shall establish minimum retail and wholesale service quality standards applicable to telecommunications carriers on or before June 30, 2000 as opposed to the original date of December 31, 1999;
• 不pecify the effective date of Sections 2-18 of the bill is January 1, 2000.

Synopsis of SCORC Amendments

The Senate Corporations and Transportation Committee amendments to SB374 provide for clarification of carrier regulation; clarify the time period for the PRC to rule on a petition and that the detailed plan does not begin until case filing is complete consistent with case law; and correct technical errors.

Synopsis of Bill

The bill amends the New Mexico Telecommunications Act to make it consistent with federal law; to provide a framework for PRC rulemaking on consumer protection and telecommunications service quality issues; and to provide a framework for regulation of telecommunications carriers that is not solely based on rate-of-return.

Significant Issues

The bill adds to the definition of telecommunications services to includes wireless services including cellular phones, although federal law only requires the regulation of wireless entry and pricing.

The bill also proposes to put in place a legislative framework for PRC promulgation of service quality and consumer protection rules; and for PRC approval or rejection of a carrier's application to be regulated under an alternative form of regulation such as a price cap plan.

FISCAL IMPLICATIONS

Under the provisions of the bill, the PRC could require wireless service providers to contribute to the state universal service fund, thus having a potential positive impact on the general fund which is the recipient of universal service fund revenue.

The bill proposes to establish a new state universal service fund to provide support for high-cost service areas and for low-income customers. The existing state universal service fund has been inactive and is not consistent with current federal universal service funding.

Under the provisions of the bill, the PRC may impose a maximum administrative fine of $10.0 for each violation of the Act by a telecommunications provider subject to regulation or licensure pursuant to the Act; or for any act or omission that the telecommunications provider knew or should have known was a violation of any provision of the Act or rule or order of the PRC pursuant to the Act. Each day of a continuing violation shall be considered a separate violation. Additionally, the PRC may impose an additional administrative fine not to exceed $250.0 for a single violation that results in substantial harm to telecommunications customers, or for failure to obtain a certificate of public convenience and necessity as required by law. The increased fining authority granted to the PRC under the provisions of the bill could increase revenue to the general fund, thus having a potential positive effect on the general fund.

ADMINISTRATIVE IMPLICATIONS

Implementation of the bill could increase the workload and personnel requirements for the AG and PRC.

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