Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
SYNOPSIS
Requires BPU to regulate rates and terms and conditions of service of alternate operator telephone service providers to protect users of those services.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning alternate operator telephone service providers and amending P.L.1995, c.172.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1995, c.172 (C.48:2-21.22) is amended to read as follows:
1. The Legislature finds and declares that:
a. In 1991, the Legislature acted to exempt competitive telecommunications services from traditional public utility regulation upon a finding that [such] this type of regulation is generally not necessary to protect the public interest in the competitive marketplace. However, in its report to the Governor and Legislature on the implementation of P.L.1991, c.428 (C.48:2-21.16 et seq.) the Board of Public Utilities [has] found that where a captive market exists for competitive telecommunications services, market conditions are not always able to protect the public interest.
b. In particular, the board [has] received many complaints concerning "alternate operator service" [(AOS) companies] providers, which provide operator assistance for collect, third-party billed, and credit card calls, usually at pay phones on the premises of hotels, restaurants, hospitals, or airports, with [such] these establishments receiving a commission for calls placed through the [AOS] alternate operator service arrangement. Given the provisions of P.L.1991, c.428 (C.48:2-21.16 et seq.), there has been some debate on the extent of the board's authority to protect consumers' interests with regard to [AOS companies] alternate operator service providers.
c. It is appropriate, therefore, that the Legislature act to clarify the powers of the board with regard to [AOS companies] alternate operator service providers, and to specifically [authorize] require the board to take appropriate action, including, but not limited to, rate and terms and conditions of service regulation, to protect the interests of consumers of alternate operator [services upon a finding of the board that such action is necessary to protect the users of those services] service providers.
(cf: P.L.1995, c.172, s.1)
2. Section 2 of P.L.1995, c.172 (C.48:2-21.23) is amended to read as follows:
2. Notwithstanding the provisions of P.L.1991, c.428 (C.48:2-21.16 et seq.) or any other law to the contrary, the Board of Public Utilities, [upon a finding by the board that such measures are necessary to protect the users of alternate operator service providers, may] shall regulate the rates and terms and conditions of service of [those providers] an alternate operator service provider, in a manner consistent with federal law, and use any other means necessary pursuant to law, rule, or regulation to protect the users of [those] the services of an alternate operator service provider.
As used in this section, "alternate operator service provider" means a non-facilities based telecommunications carrier who is a reseller leasing lines from a local exchange [carriers] telecommunications company and an interexchange [carriers] telecommunications carrier, as those terms are defined in section 2 of P.L.1991, c.428 (C.48:2-21.17), and who, using these leased facilities along with its own operators, provides operator-assisted services.
(cf: P.L.1995, c.172, s.2)
3. This act shall take effect immediately.
STATEMENT
This bill requires the Board of Public Utilities (BPU) to regulate, in a manner consistent with federal law, the rates and terms and conditions of service of alternate operator service providers. Under the bill, "alternate operator service providers" are non-facilities-based telecommunications carriers which lease telephone lines from local and long distance telecommunications companies to provide operator-assisted telephone services. Current law authorizes, but does not require, the BPU to regulate alternate operator service providers.