9Feb2005… 0111h

06/02/05 1602s

29Jun2005… 2060cofc

2005 SESSION

05-0300

09/10

HOUSE BILL 194

COMMITTEE: Science, Technology and Energy

AMENDED ANALYSIS

This bill establishes a committee to study regulatory practices pertaining to the telecommunications industry.

The bill also establishes procedures for alternative regulation of small incumbent local exchange carriers by the public utilities commission.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

9Feb2005… 0111h

06/02/05 1602s

29Jun2005… 2060cofc

05-0300

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

Be it Enacted by the Senate and House of Representatives in General Court convened:

263:1 Purpose and Findings. The general court finds that the growth of unregulated wireless and broadband telecommunications services has provided consumers alternatives to traditional telephone utility services. The policy of this state is to promote competition and the offering of new and alternative telecommunications services while preserving universal access to affordable basic telephone services. The continuation of full utility regulation of small incumbent local exchange carrier telephone utilities is not consistent with these objectives. In light of the rapid changes in the telecommunications industry, these policy objectives will best be achieved by implementing alternative regulation plans for small incumbent local exchange carriers that encourage competition, preserve universal telephone service, and provide incentives for innovation, new technology and new services. With regard to large incumbent local exchange carriers, a study committee is hereby established to determine the appropriate form of regulation in this changing environment.

263:2 Committee Established. Since incumbent local exchange carriers face competition from services that are not regulated, a committee is established to study regulatory practices pertaining to the telecommunications industry.

263:3 Membership and Compensation.

I. The members of the committee shall be as follows:

(a) Three members of the house of representatives, appointed by the speaker of the house of representatives.

(b) Three members of the senate, appointed by the president of the senate.

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

263:4 Duties. The committee shall examine regulatory practices as they pertain to:

I. The importance of basic telephone services offered by land line telephone companies to households and firms not served by the rapidly evolving unregulated telecommunication industries.

II. The cost of these services to their users and to the regulated telephone companies.

III. Innovative regulatory approaches, which have been implemented in other jurisdictions, which lessen business restrictions of the companies in return for price stability.

IV. The impact of competition and the potential for alternatives other than the typical rate of return regulation that will provide incentives for infrastructure investment and the offering of new and innovative services while preserving universal access to affordable basic telephone services.

V. Whether a small incumbent local exchange carrier’s alternative regulation plan should include a reasonable and timely transition of the small incumbent local exchange carrier’s intrastate access rates to the interstate level.

VI. Whether a small incumbent local exchange carrier should be required to agree to relinquish its rural exemption under the federal Telecommunications Act immediately upon approval of an alternative regulation plan.

VII. Whether an alternative regulation plan should include a proposed wholesale tariff setting forth the rates, terms, and conditions of service available to competitive carriers offering service in the small incumbent local exchange carriers’ service territory; including whether the tariff should be approved by the commission and made available on a nondiscriminatory basis to competitive carriers.

VIII. Whether RSA 374:22-f should apply to a small incumbent local exchange carrier with an approved alternative regulation plan.

263:5 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Four members of the committee shall constitute a quorum.

263:6 Report. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the senate president, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2005.

263:7 New Section; Alternative Regulation of Small Incumbent Local Exchange Carriers. Amend RSA 374 by inserting after section 3-a the following new section:

374:3-b Alternative Regulation of Small Incumbent Local Exchange Carriers.

I. In this section, “small incumbent local exchange carrier” means an incumbent local exchange carrier serving fewer than 25,000 access lines.

II. A small incumbent local exchange carrier subject to rate of return regulation may petition the public utilities commission for approval of an alternative form of regulation providing for regulation of such carrier’s retail operations comparable to the regulation applied to competitive local exchange carriers.

III. The commission shall approve the alternative regulation plan if it finds that:

(a) Competitive wireline, wireless, or broadband service is available to a majority of the retail customers in each of the exchanges served by such small incumbent local exchange carrier;

(b) The plan provides for maximum basis local service rates at levels prevailing throughout the state as of the effective date of this section plus allowances for inflation and adjustments to reflect changes in federal, state, or local government taxes, mandates, rules, regulations, or statutes; provided, that no small incumbent local exchange carrier may increase basic local service rates by more than 10 percent per year in each of the 4 years after a plan is approved;

(c) The plan promotes the offering of innovative telecommunications services in the state;

(d) The plan meets intercarrier service obligations under other applicable laws; and

(e) The plan preserves universal access to affordable basic telephone service.

IV. The alternative regulation plan may allow the small incumbent local exchange carrier to offer bundled services that include combinations of telecommunications, data, video, and other services.

V. Following approval of the alternative regulation plan, the small incumbent local exchange carrier shall no longer be subject to rate of return regulation or be required to file affiliate contracts or seek prior commission approval of financings or corporate organizational changes, including, without limitation, mergers, acquisitions, corporate restructurings, issuance or transfer of securities, or the sale, lease, or other transfer of assets or control.

263:8 Effective Date. This act shall take effect upon its passage.

(Approved: July 22, 2005)

(Effective Date: July 22, 2005)

• HB194 at GenCourtMobile

Bill Text Revisions

HB194 Revision: 8677 Date: Jan. 21, 2010, midnight

Docket

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