Bill > S2664

Introduced Session

Designated as the "Market Competition and Consumer Choice Act," this bill alters State regulation of competitive services provided by telecommunications and cable television ("CATV") companies in New Jersey to ensure that such services are governed like other competitive services provided in the State. As part of the bill, generally applicable State consumer protection laws would still apply to such services, and Board of Public Utilities ("BPU") oversight would be retained in some areas, such as 9-1-1 funding and operations, federal discount telephone service programs designed to serve low-income State residents, and any other authority specifically delegated by the federal government. The bill removes the application of certain laws that address telephone and telegraph service in areas of the State (exchanges) where customers now have the choice of at least two providers of voice telecommunications service. Specifically, portions of chapters 2, 3, and 17 of Title 48 of the Revised Statutes, a number of which already do not apply to providers of other competitive telecommunications services, would not apply to telecommunications companies operating in competitive areas. For example, those provisions of chapter 2 of Title 48, including provisions under which the BPU sets rates for telecommunications companies and require such companies to provide detailed financial reports, would not apply to telecommunications companies operating in competitive areas. Similarly, those provisions of chapter 3 of Title 48, including statutory provisions that require BPU approval of various types of transactions and other agreements of telecommunications companies, would not apply to telecommunications companies operating in competitive areas. Certain provisions of chapter 17 of Title 48, which include provisions governing tickers and teleprinters of telegraph companies, also would not apply to telecommunications companies operating in competitive areas. The bill retains the application of State authority in enumerated areas in the interest of public safety, consumer protection and other federal requirements. For example, the following would be preserved by the bill: 1) municipal consents for rights-of-way and joint pole usage; 2) State enforcement of consumer protection and unfair or deceptive trade practices laws, including the New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.); 3) the enforcement of the "Underground Facility Protection Act," P.L.1994, c.118 (C.48:2-73 et seq.), also known as "One-Call Law," to ensure proper notification and mark-outs before a public utility, telecommunications, or CATV company digs in another companys service area; 4) the provision of telephone relay services for the hearing impaired, 9-1-1, and enhanced 9-1-1 service; 5) BPU authority over interconnection and intercarrier rights, duties, or obligations among telecommunications carriers; 6) intrastate switched access rates charged by a local exchange telecommunications company to other telecommunications providers; 7) prohibitions on disclosure by providers of the contents of communications transmitted over their network; and 8) federal Lifeline and Link-Up programs that provide discounts on telecommunications service to certain low-income residents and senior citizens. The bill also removes the application of certain laws concerning cable television ("CATV") in areas of the State where customers now have the choice of at least two providers of video service. In these competitive areas only, certain CATV-related laws and requirements would not apply, including the commitments to municipalities and BPU consumer protection regulations required of system-wide franchisees under subsections h. through n. of section 28 of P.L.1972, c.186 (C.48:5A-28). However, the bill would not affect the following: 1) the BPUs authority to issue or renew individual certificates of approval or system-wide franchises; 2) the rights of municipalities to manage their rights-of-way in a non-discriminatory manner, consistent with federal law; 3) the enforcement of the "Underground Facility Protection Act," P.L.1994, c.118 (C.48:2-73 et seq.), also known as "One-Call Law," to ensure proper notification and mark-outs before a provider digs in another providers service area; and 4) the existing structure that requires payment of higher franchise fees (four percent compared to two percent) by CATV providers to municipalities when a competitor certifies that it can serve 60% of a particular locality. Further, under the bill, CATV providers who have received a certificate of approval would no longer have the authority to petition the BPU for permission to charge a yearly franchise fee greater than the two percent allowed under current law.

AI Summary

Committee Categories

Tom Kean (R)*,  Raymond Lesniak (D)*,  Stephen Sweeney (D)*,  Christopher Bateman (R),  Anthony Bucco (R),  Andrew Ciesla (R),  Sean Kean (R),  Steven Oroho (R),  Bob Singer (R), 

Senate Amendment (26-1) (Lesniak) (on 02/17/2011)

Official Document