Bill Text: NJ A3346 | 2010-2011 | Regular Session | Introduced
Bill Title: Concerns State regulation of certain telecommunications services.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-10-07 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A3346 Detail]
Download: New_Jersey-2010-A3346-Introduced.html
Sponsored by:
Assemblyman UPENDRA J. CHIVUKULA
District 17 (Middlesex and Somerset)
Assemblywoman ALISON LITTELL MCHOSE
District 24 (Sussex, Hunterdon and Morris)
SYNOPSIS
Concerns State regulation of certain telecommunications services.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the regulation of certain telecommunications and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Access charge" means any charge incurred for services and facilities provided for the origination or termination of any intrastate communication subject to the board's jurisdiction.
"Basic local service default package" means the services designated by the Federal Communications Commission as eligible for support pursuant to 47U.S.C. s.254(c).
"Board" means the New Jersey Board of Public Utilities or any successor agency.
"Cable telephony" means the transmission of voice and data services over a co-axial cable network which may include, but not limited to, the capacity to provide voice over internet protocol services.
"Carrier of last resort" means an eligible carrier that is required to serve any customer, upon request, located within a study area designated by the board.
"Certificate of operation" means a certificate issued by the board authorizing an entity to provide communications services within the State.
"Competitive local exchange carrier" means any facilities-based or non-facilities-based local exchange carrier that is not an incumbent local exchange carrier.
"Consumer" means any retail end-user of a communications service, including business and residential subscribers, other than a purchaser and provider of communications service at wholesale or resale rates.
"Cramming" means the practice of placing unauthorized, misleading or deceptive charges on a consumer's telephone bill for any communications service subject to the board's jurisdiction, which service the consumer did not order or authorize in advance.
"Economic regulation" means the setting of rates for recurring and non-recurring communications service; mandating incentive regulation and establishing price caps, price floors or bands limitations for pricing flexibility; mandating infrastructure investments; placing limitations on promotional discounts or "win-back" offers; establishing service quality regulations; mandating tariff filing requirements; or taking any other regulatory action to define communications services or the rates that may be charged for such services.
"Eligible carrier" means a carrier authorized by the board to serve consumers in a designated study area and receive State universal service support.
"Enhanced 9-1-1" or "E-9-1-1" means a service consisting of telephone network features and public safety answering points provided for users of the public telephone system which enables such users to reach public safety answering points by dialing the digits "9-1-1" including, but not limited to, the ability to provide automatic numbering information that enables a public safety answering point to contact a calling party if a call is disconnected, and automatic location information, that permits emergency service providers to identify the geographic location of the calling party.
"Incumbent local exchange carrier" means, with respect to a given geographic area, a facilities-based local exchange carrier that:
(1) On the date of enactment of the federal Telecommunications Act of 1996, Pub. L.104-104, 110 Stat.56 (1996), provided basic local exchange service in such area; and
(2) On such date of enactment, was (a) deemed to be a member of the exchange carrier association pursuant to 47 C.F.R. s.69.601(b), as effective on November 1, 2002; or is a person or entity that, on or after such date of enactment, became a successor or assignee of a member described in 47U.S.C. s.251(h)(1)(B)(i); or
(3) Any carrier or class of carrier that is designated by the Federal Communications Commission as an incumbent local exchange carrier pursuant to 47U.S.C. s.251(h)(2).
"Intrastate communication" means any communication or transmission that occurs between end points within this State, subject to the board's jurisdiction.
"Interexchange carrier" means a communications carrier that provides landline telephone service exclusively between local exchange areas as defined by the board for the incumbent local exchange carrier.
"Local exchange carrier" means any incumbent local exchange carrier or competitive local exchange carrier that provides basic local exchange services to consumers.
"Public safety answering point" or "PSAP" has the same meaning as that term is given by subsection l. of section 1 of P.L. 1989, c.3 (C.52:17C-1).
"Non-rural local exchange carrier" means any local exchange carrier which is not a rural local exchange carrier.
"Rural local exchange carrier" means any "rural telephone company" as that term is defined under 47U.S.C. s.153(37).
"Slamming" means the changing of a communications service provider, subject to the board's jurisdiction, including a customer's telephone service provider, whether for long distance, regional toll or local calls, without the customer's knowledge or permission.
"Study area" means a geographic area established by the board for the purpose of determining universal service obligations and support mechanisms.
"Telecommunications relay service" means a telephone transmission service that provides the ability for an individual who has a hearing impairment or speech impairment to engage in communication with a hearing individual in a manner that is functionally equivalent to the ability of an individual who does not have a hearing impairment or speech impairment to communicate using voice communication services.
"Universal service fund" or "USF" means the fund created pursuant to section 6 of P.L. , c. (C. )(pending before Legislature as this bill) and administered by the board.
"Voice over Internet Protocol service" or "VoIP service" means any Internet Protocol-enabled service that offers real-time, multidirectional voice functionality including, but not limited to, services that are comparable to traditional wireline service.
"Wireless services" means mobile telephone, mobile cellular telephone, paging, personal communications services, fixed wireless, specialized mobile radio service, or the functional equivalent of any of these services that is:
(1) provided with the intent of receiving compensation or pecuniary gain; and
(2) available to the public, or to such classes of eligible users as to be effectively available to a substantial portion of the public.
"Wireline services" means traditional voice communications that are transmitted over the public-switched telephone network (PSTN).
"9-1-1" means a service that permits a telecommunications user to call emergency services through a public safety answering point operated by the local government.
2. a. The board's jurisdiction is limited to those functions affirmatively authorized under P.L. , c. (C. )(pending before the Legislature as this bill) or those functions expressly delegated to the board under State or federal laws or regulations.
b. The board's authority to engage in the economic regulation of incumbent local exchange carriers is limited to those functions affirmatively authorized under section 4 of P.L. , c. (C. )(pending before the Legislature as this bill).
c. The board is prohibited from engaging in the economic regulation of cable telephony, competitive local exchange carriers, interexchange carriers, VoIP services and wireless services.
d. The board is prohibited from regulating the retail service quality of all forms of communications service, unless the service quality offered by any communications provider adversely affects the completion of 9-1-1 calls to public safety answering points.
e. The board is prohibited from engaging in the economic regulation of any communications service left undefined under P.L. , c. (C. )(pending before the Legislature as this bill) unless, after a hearing, the board deems that service to be a basic local service default package.
3. a. The board may require all local exchange carriers to obtain a certificate of operation. The information required to be included in an application for a certificate of operation shall be limited to information necessary to meet the following objectives:
(1) the administration of universal service fund distributions, including carrier of last resort obligations;
(2) determining qualification as a rural or non-rural local exchange carrier for the purpose of determining the level of access charges under section 5 of P.L. , c. (C. )(pending before the Legislature as this bill);
(3) consumer protection with respect to billing disputes that may arise under section 8 of P.L. , c. (C. )(pending before the Legislature as this bill), but not with respect to making before-the-fact judgments about a carrier's qualifications to enter the market; and
(4) public safety requirements under section 9 of P.L. , c. (C. )(pending before the Legislature as this bill).
b. The board may adopt any other reporting requirements for local exchange carriers necessary to assist in the board's administrative proceedings or ministerial functions.
c. With the exception of local exchange carriers, the board is prohibited from adopting and enforcing certification and reporting requirements for the purposes listed under subsections a. and b. of this section against any service provider, unless such jurisdictional authority is expressly delegated by any State or federal laws or regulations.
d. The board is authorized to seek injunctive relief from a court of competent jurisdiction to enjoin any local exchange carrier or carrier subject to the board's jurisdiction under subsection c. of this section that is operating within the State without a certificate of operation.
e. With the exception of tariffs and exchange maps for the provision of a basic local service default package under paragraph (1) of subsection a. of section 4 of P.L. , c. (C. )(pending before the Legislature as this bill), the board is prohibited from requiring any tariff and exchange map filing from any service provider.
4. a. An incumbent local exchange carrier shall make available to any customer, upon request, a basic local service default package.
(1) The board may require the filing of tariffs and exchange maps to the extent that such filings are required for the maintenance of a basic local service default package.
(2) The rate charged and local calling area for the basic local service default package shall be the basic local service rate and local calling area as of the effective date of P.L. , c. (C. )(pending before the Legislature as this bill). Any local exchange carrier may petition the board to adjust the rate for the basic local service default package.
(3) The requirement of offering a basic local service default package shall expire five years following the effective date of P.L. , c. (C. )(pending before the Legislature as this bill).
(4) The rate charged for fixed dial-tone service, either alone or as part of a package, shall include the rate that is charged as the federal subscriber line charge.
b. The economic regulation that exists for any local exchange carrier on the effective date of P.L. , c. (C. )(pending before the Legislature as this bill) shall remain in effect through the last day of the sixth calendar month following that effective date.
c. On the first day of the seventh calendar month following the effective date of P.L. , c. (C. )(pending before the Legislature as this bill) and thereafter, the rates for any other service and package offerings offered by any local exchange carrier, including any package offering which includes a local service component, shall be exempt from economic regulation.
d. During the period prior to the end of economic regulation of rates under subsection c. of this section, the board shall engage in a consumer awareness and education campaign.
5. a. In order to promote consistency and reduce opportunities for arbitrage, the access charges for all non-rural local exchange carriers shall be equal to the interstate rates established by the Federal Communications Commission for these carriers, including any federal intercarrier compensation scheme that also incorporates reciprocal compensation.
b. Within 90 days of the effective date of P.L. , c. (C. )(pending before the Legislature as this bill), the board shall initiate a proceeding to determine a uniform rate for access services to be charged by all rural local exchange carriers operating within this State. The board shall issue an order in this proceeding not later than the first day of the 16th calendar month following the effective date of P.L. , c. (C. )(pending before the Legislature as this bill).
c. Rural local exchange carriers shall reduce their respective access charge rates by a proportion of the difference between the existing access rate and the uniform access rate determined by the board within the eight-year period beginning with the effective date of the board's final order, as follows:
(1) 12.5 percent of the difference within one year;
(2) 25 percent of the difference within two years;
(3) 37.5 percent of the difference within three years;
(4) 50 percent of the difference within four years;
(5) 62.5 percent of the difference within five years;
(6) 75 percent of the difference within six years;
(7) 87.5 percent of the difference within seven years; and
(8) 100 percent of the difference within eight years.
d. Non-rural exchange carriers shall reduce their respective access charge rates by a proportion of the difference between the existing access rate and the interstate rates established by the Federal Communications Commission for these carriers within the five-year period beginning with the effective date of P.L. , c. (C. )(pending before the Legislature as this bill), as follows:
(1) 20 percent of the difference within one year;
(2) 40 percent of the difference within two years;
(3) 60 percent of the difference within three years;
(4) 80 percent of the difference within four years; and
(5) 100 percent of the difference within five years.
e. For incumbent local exchange carriers, the loss of revenues through access charge reform may be recovered from end-users through the charge for a basic local service default package. The maximum allowable amount for this charge shall be set by the board, through a hearing, upon the receipt of a petition by any affected carrier.
f. This section shall not be interpreted to prohibit intercarrier compensation agreements between carriers that involve positive compensation rates.
g. Consistent with federal law, nothing in this section shall affect the rights and obligations of any carrier related to the payment of access charges or other intercarrier compensation related to VoIP services.
6. a. The Universal Service Fund is hereby established. The board shall administer the USF with funds appropriated to it from the General Fund pursuant to P.L. , c. (C. )(pending before the Legislature as this bill).
b. On an annual basis, the board shall report and make recommendations to the Legislature on the administration of the USF.
c. The board is authorized to establish study areas to assist in the determination of USF distribution mechanisms.
d. The board shall, upon request, designate a communications carrier as an eligible carrier for each service area designated by the board, and shall adopt eligibility criteria and review procedures and determine, subject to administrative review, which carriers meet the eligibility criteria.
e. The board is authorized to adopt and enforce rules to facilitate USF assistance for incumbent local exchange carriers that are designated as eligible carriers to provide the basic local service default package.
f. The board is authorized to adopt and enforce rules to facilitate USF assistance for any other communications carrier that is designated as an eligible carrier, regardless of the technology offered, in providing services to consumers in high-cost areas.
g. Not later than the 90th day following the effective date of P.L. , c. (C. )(pending before the Legislature as this bill), the board shall initiate a rule-making process to examine reforms for the distribution of USF support. The board shall issue an order in this proceeding not later than the first day of the 16th calendar month following the effective date of P.L. , c. (C. )(pending before the Legislature as this bill).
h. In adopting mechanisms for the distribution of USF assistance, the board shall:
(1) utilize a formula based upon the forward-looking cost methodology used by the Federal Communications Commission to determine levels of support;
(2) study the feasibility and competitive impact of distributing funds through a bid-based auction system in study areas; and
(3) study the feasibility and competitive impact of allowing customers to choose which eligible carrier receives USF assistance through the use of vouchers.
7. a. An eligible carrier that is designated by the board to receive USF assistance shall also be subject to carrier of last resort obligations in any study area where it receives USF assistance.
b. A carrier that elects to terminate the provision of service in any study area for which it receives USF assistance, or a carrier that relinquishes its status as an eligible carrier, may petition the board to relinquish its status as a carrier of last resort.
(1) The board shall automatically approve a petition for such relinquishment in any study area where another carrier of last resort is furnishing service.
(2) If the petitioning carrier seeks relinquishment due to the termination of service, the board may require the petitioning carrier to file a plan of transfer.
(3) If the petitioning carrier seeks relinquishment due to the termination of service, and no other carrier of last resort is available for transfer, the board may designate a carrier of last resort, including the petitioning carrier.
8. a. The board is authorized to adopt those rules and procedures necessary to protect consumers against cramming and slamming, consistent with federal law.
b. The board is authorized to adopt any other rules and procedures to protect consumers against fraud or deceptive trade practices, consistent with the application of general consumer protection laws of this State.
c. The board shall have remedial authority over any carrier with a certificate of operation consistent with, and to the fullest extent of, the State's consumer protection laws.
9. a. Consistent with federal laws or regulations, the board is authorized to require any communications carrier to provide access to 9-1-1 and E- 9-1-1 services and make rules to ensure consumer access to such services.
b. Consistent with federal laws or regulations, the board is authorized to grant a waiver of compliance with any 9-1-1 or E-9-1-1 mandate or mandates upon a showing by a petitioning carrier that its customers and potential customers are informed of any limits in access to 9-1-1 or E-9-1-1 services.
c. Consistent with federal laws or regulations, and to the extent that is technically feasible, the board may require any communications carrier to provide access to telecommunications relay service and make rules to ensure consumer access to such service.
d. The board shall allow carriers to recover all prudently incurred costs associated with providing telecommunications relay service and access to 9-1-1 and E-9-1-1 services through the imposition of a recurring surcharge.
10. This act shall take effect immediately.
STATEMENT
This bill is based on a national model state communications act which is intended to prohibit economic regulation by state utility commissions of new and emerging communications services and to prescribe certain requirements applicable to access charges, universal service support, carrier of last resort obligations, and consumer protection and public safety issues.
The bill is intended to provide greater economic incentive for new and emerging services to develop by restricting regulatory oversight of such services in their early stages before there are market power or monopoly rationales for subjecting them to state administrative regulation.
Section 2 of the bill sets forth various limitations on the economic regulation of emerging telecommunications services by the Board of Public Utilities (the "board"), including restrictions on the economic regulation of incumbent local exchange carriers, prohibitions on the economic regulation of cable telephony, competitive local exchange carriers, interexchange carriers, VoIP services and wireless services, prohibitions on regulation of retail service quality of communications service, unless it adversely affects the completion of calls to emergency 9-1-1 services, and prohibitions on the regulation of any other communications service unless the board, after holding a hearing, deems such service to be a basic local service default package.
Section 3 of the bill authorizes the board to require all local exchange carriers to obtain a certificate of operation and to impose such other reporting requirements as the board may deem necessary. Section 3 also clarifies that the board is prohibited from adopting and enforcing certification and reporting requirements against any other service provider for the purposes set forth in section 3 unless such jurisdiction is expressly delegated by a State or federal law. Section 3 also authorizes the board to seek injunctive relief against any carrier subject to the board's jurisdiction that is operating within this State without such a certificate of operation.
Section 4 of the bill requires an incumbent local exchange carrier to make available a basic local service default package to any customer, upon request, for no more than five years following the effective date of this bill and sets forth various filing obligations, and rate and local calling area requirements applicable to the basic local service default package.
Section 5 requires that access charges for all non-rural local exchange carriers be equal to the interstate rates established by the Federal Communications Commission (the "FCC") for these carriers and requires the board to initiate proceedings within three months of the effective date of this bill to determine a uniform rate for access charges applicable to rural local exchange carriers operating within this State. Section 5 also sets forth an eight-year and five-year schedule for rural local exchange and non-rural local exchange carriers, respectively, to phase out existing access rates in accordance with schedules established either by the board or the FCC, as appropriate.
Section 6 of the bill establishes a Universal Service Fund ("USF") and directs the board to administer the USF with funds appropriated by the General Fund. In addition, section 6 requires the board to report and make recommendations annually on the administration of the USF, and authorizes the board to establish study areas to assist in the determination of USF distribution mechanisms. Section 6 also authorizes the board to adopt and enforce rules to facilitate USF assistance for certain incumbent local exchange carriers and any other communications carrier designated as eligible carriers to provide the default local basic service package to consumers in high-cost areas.
Section 7 of the bill requires an eligible carrier that is designated by the board to receive USF assistance to also be subject to carrier of last resort obligations in any study area where it receives USF assistance.
Section 8 of the bill authorizes the board to adopt those rules and procedures necessary to protect consumers against cramming and slamming, consistent with federal law and to adopt any other rules and procedures to protect consumers against fraud or deceptive trade practices, consistent with the application of general consumer protection laws of this State.
Section 9 of the bill authorizes the board, consistent with federal law and regulations, to: (1) require any communications carrier to provide access to 9-1-1 and E- 9-1-1 services and make rules to ensure consumer access to such services; and (2) require any communications carrier to provide access to telecommunications relay service and make rules to ensure consumer access to such service, to the extent that such access is technically feasible. Section 9 also requires the board to allow carriers to recover all prudently incurred costs associated with telecommunications relay service, and 9-1-1 and E-9-1-1 services through the imposition of a recurring surcharge.
