Bill Text: NJ S2374 | 2024-2025 | Regular Session | Introduced


Bill Title: Requires telecommunications companies to provide prorated refunds for service outages of longer than 72 hours.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-29 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S2374 Detail]

Download: New_Jersey-2024-S2374-Introduced.html

SENATE, No. 2374

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED JANUARY 29, 2024

 


 

Sponsored by:

Senator  JAMES BEACH

District 6 (Burlington and Camden)

 

 

 

 

SYNOPSIS

     Requires telecommunications companies to provide prorated refunds for service outages of longer than 72 hours.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning refunds for telecommunications service interruptions and amending P.L.1991, c.428 and P.L.2007, c.195.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

      1.   Section 4 of P.L.1991, c.428 (C.48:2-21.19) is amended to read as follows:

     4.    a.  (1) Notwithstanding the provisions of R.S.48:2-18, R.S.48:2-21, section 31 of P.L.1962, c.198 (C.48:2-21.2), R.S.48:3-1, or any other law to the contrary, the board shall not regulate, fix, or prescribe the rates, tolls, charges, rate structures, terms and conditions of service, rate base, rate of return, and cost of service, of competitive services.

     (2)   The board shall not require the local exchange telecommunications company or interexchange telecommunications carrier to file and maintain tariffs for retail competitive services, but shall require any terms and conditions of retail competitive services to be made available for public inspection on the Internet website of any local exchange telecommunications company or interexchange telecommunications carrier providing those services, and a printed copy of those terms and conditions shall be provided upon the request of a customer.  Nothing in this section shall affect the ability of a local exchange telecommunications company or interexchange telecommunications carrier, in their discretion, to file tariffs with the board.

     b.    The board is authorized to determine, after notice and public hearing, whether a telecommunications service is a competitive service.  In making that determination, the board shall develop standards of competitive service which, at a minimum, shall include: evidence of ease of market entry; presence of other competitors; and the availability of like or substitute services in the relevant geographic area.  A final decision or order pursuant to this subsection shall be made within 12 months of the final public hearing held to determine whether a telecommunications service is a competitive service. If the board has not adopted a final decision or order within 12 months of the final public hearing, the board shall hold an additional public hearing before adopting a final decision or order.  The board shall not make a determination pursuant to this subsection unless a public hearing has been held in the previous 12 months to determine whether a telecommunications service is a competitive service.

     c.     The board may determine, by rule, order, or in accordance with the provisions of a plan filed pursuant to subsection a. of section 3 of P.L.1991, c.428 (C.48:2-21.18), what reports are necessary to monitor the competitiveness of any telecommunications service.

     d.    The board shall have the authority to reclassify any telecommunications service that it has previously found to be competitive if, after notice and public hearing, it determines that sufficient competition is no longer present, upon application of the criteria set forth in subsection b. of this section.  Upon that reclassification, the provisions of subsection a. of this section shall no longer apply and the board may determine such rates for that telecommunications service which it finds to be just and reasonable.  The board, however, shall continue to monitor the telecommunications service and, whenever the board shall find that the telecommunications service has again become sufficiently competitive pursuant to subsection b. of this section, the board shall again apply the provisions of subsection a. of this section.  A final decision or order pursuant to this subsection shall be made within 12 months of the final public hearing held to determine whether a telecommunications service is a competitive service. If the board has not adopted a final decision or order within 12 months of the final public hearing, the board shall hold an additional public hearing before adopting a final decision or order.  The board shall not make a reclassification pursuant to this subsection unless a public hearing has been held in the previous 12 months to determine whether a telecommunications service is a competitive service.

     e.     Notwithstanding the provisions of subsection a. of this section, the following safeguards shall apply to the offering of any competitive service by a local exchange telecommunications company:

     (1)   the local exchange telecommunications company shall unbundle each noncompetitive service which is incorporated in the competitive service and shall make all noncompetitive services separately available to any customer under tariffed terms and conditions, including price, that are identical to those used by the local exchange telecommunications company in providing its competitive service;

     (2)   the rate which a local exchange telecommunications company charges for a competitive service shall exceed the rates charged to others for any noncompetitive services used by the local exchange telecommunications company to provide the competitive service;

     (3)   tariffs for competitive services that may be filed with the board shall either be in the public records, or, if the board determines that the rates are proprietary, shall be filed under seal and made available under the terms of an appropriate protective agreement, such as those used in cases before the board; [and]

     (4)   nothing in P.L.1991, c.428 (C.48:2-21.16 et seq.) shall limit the authority of the board, pursuant to R.S.48:3-1, to ensure that local exchange telecommunications companies do not make or impose unjust preferences, discriminations, or classifications for noncompetitive services; and

     (5)   the local exchange telecommunications company shall, on a prorated basis, adjust a customer's bill, or provide a credit to a customer, who has experienced a service interruption for a period of more than 72 hours.  The local exchange telecommunications company shall not require the customer to take any action in order to receive a bill adjustment or credit under this section.

     f.     The board shall require a public utility, as defined in R.S.48:2-13, that provides telephone service and is subject to regulation by the board, on a prorated basis, to adjust a customer's bill, or provide a credit to a customer, who has experienced a service interruption for a period of more than 72 hours.  The telephone public utility shall not require the customer to take any action in order to receive a bill adjustment or credit under this section.

(cf: P.L.2017, c.77, s.1)

 

     2.    Section 4 of P.L.2007, c.195 (C.48:17-35) is amended to read as follows:

     4.    a. Except as otherwise provided in [this act] P.L.2007, c.195 (C.48:17-32 et seq.), notwithstanding any other provision of law, rule, regulation, or order to the contrary, neither the State, nor any department, agency, board, or commission thereof, nor any political subdivision of the State shall enact, adopt, or enforce any law, ordinance, resolution, rule, regulation, order, standard, or other provision, either directly or indirectly, having the force and effect of law that regulates, or has the effect of regulating, the rates, terms, and conditions of VoIP service or IP-enabled service offered to customers.

     b.    Notwithstanding the provisions of subsection a. of this section, or any other law, rule, order, or regulation to the contrary, the Board of Public Utilities shall require a company that provides a VoIP service or IP-enabled service, on a prorated basis, to adjust a residential customer's bill, or provide a credit to a residential customer, who has experienced a service interruption for a period of more than 72 hours, except not including any service interruption that occurs during an event that causes significant damage to the electric grid, and subject to any other exceptions or limitations as may be established by the board.  The company shall not require the residential customer to take any action in order to receive a bill adjustment or credit under this section.

(cf: P.L.2007, c.195, s.4)

 

     3.    This act shall take effect immediately.

STATEMENT

 

      This bill directs the Board of Public Utilities (BPU) to require telecommunications companies and companies that offer Voice Over Internet Protocol or other Internet-based telephone services, to provide a bill adjustment or credit, on a prorated basis, to certain customers who experience a service interruption for more than 72 hours.  Under the bill, these companies may not require the customer to take any action in order to receive the bill adjustment or credit.

      In the case of companies that offer Voice Over Internet Protocol or other Internet-based telephone services, the provision of bill adjustments and credits is limited to residential customers and is not required when a customer's service interruption occurs during an event that causes significant damage to the electric grid.  The bill also permits the BPU to establish any other exceptions or limitations to the provision of bill adjustments and credits by these companies.

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