Date: 03/25/2014

Final
BILL SUMMARY for HB14-1331

HOUSE COMMITTEE ON BUSINESS, LABOR, ECONOMIC, & WORKFORCE DEVELOPMENT

Votes: View--> Action Taken:
Adopt amendment L.001. The motion passed without o
Refer House Bill 14-1331, as amended, to the Commi		Pass Without Objection
PASS



03:09 PM -- HB 14-1331

Representative Murray presented House Bill 14-1331, concerning the regulation of basic local exchange service as it affects effective competition. This bill modifies the statutory framework for the regulation of local telephone service. The bill limits, but retains, authority for the PUC to regulate basic emergency service (emergency service) and the providers of basic local exchange service (basic service). Emergency service is subject to regulation unless the PUC approves a reclassification. In the case of basic service, the bill provides that:

With the exception of wholesale telecommunications regulation, dispute resolution between carriers, and requirements related to emergency service, the bill eliminates the PUC's authority to regulate:
• the white page directory and other listed telephone number services; • advanced features (e.g., call waiting, three-way calling) and premium services; • telecommunications services and products not otherwise classified under PUC statutes.

Funding from the HCSM is available for any provider of local landline service in areas without effective competition, and HCSM funding may be used only to provide support for basic service in these areas. An eligible provider may receive the difference between the reasonable cost to provide service and, as determined by the PUC, a reasonable benchmark price for basic service.

The following individuals testified on the bill:

03:12 PM -- Greg Glischinski, representing AARP, testified in opposition to the bill. He discussed his personal appreciation of technology. He stated his concern with the bill is that it deregulates basic exchange and puts consumers at the risk of rate increases. Mr. Glischinski discussed the fixed incomes of most of AARP's membership, and how a rate increase would be a burden to seniors in the state. He discussed examples in other states of rate increases after deregulation and responded to questions from the committee.

03:18 PM -- Margaret Hughes, representing herself, testified in opposition to the bill. She discussed her consumer experience in Californian after telecommunications deregulation. She said the telecommunications companies promised that rates would remain the same, but the rates continued to increase. Ms. Hughes discussed the issues the bill raised for seniors and people with disabilities, and reminded the committee that a lot of people need a landline, like her daughter who is on-call in the medical profession.

03:21 PM -- Betty Proctor, representing the Colorado Senior Lobby and herself, testified in opposition to the bill. Ms. Proctor stated that she valued her landline. She stated that her organization opposes the threat the legislation poses to 9-1-1 and the likelihood of rate increases. She responded to a question from Representative Ryden on whether the testimony made her feel better about keeping her landline.

03:24 PM -- Lynne Smith, representing herself, testified in opposition to the bill. Ms. Smith stated that cellphones are fun and innovative machines, but that they do not provide reliable phone service. On the other hand, she said that her landlines work 100 percent of the time. She stated that until cellphones can provide reliable phone service, they are not legitimate substitutes for landlines. She discussed how the PUC assisted her with prior issues related to cellphone contracts.

03:28 PM -- Patty Stein, representing the 60 Plus Association, testified in support of the bill. Ms. Stein provided an overview of her organization. She stated that today's seniors are adopting technology and embracing new communications devices. She stated that greater connectivity allowed seniors to keep in touch with family and health providers. She cited a 2012 Pew Research study that showed 69 percent of seniors use a cellphone and 50 percent use the internet. She stated that the current state regulations over telecommunications were written in another era. Ms. Stein responded to questions from the committee.

03:33 PM

Representative Williams responded to a question from Representative Kraft-Tharp about consumer protections. She referenced the various "clawback" provisions in the bill. Representative Murray stated that the goal of the bill was to build in as many consumer protections as possible.

03:36 PM

Representative Williams distributed and discussed Amendment L.001 (Attachment B), which clarified a line in Section 9 of the bill about providers exempt from regulation.

140325 AttachB.pdf140325 AttachB.pdf
BILL:HB14-1331
TIME: 03:37:56 PM
MOVED:Williams
MOTION:Adopt amendment L.001. The motion passed without objection.
SECONDED:Holbert
VOTE
Exum
Hamner
Holbert
Navarro
Nordberg
Rosenthal
Ryden
Szabo
Wright
Kraft-Tharp
Williams
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection



03:38 PM

Representative Murray made closing comments on the bill. She said that the bill amends a 20-year-old law, while preserving consumer protections. She said that the regulation of carriers must reflect the changing technology, and that the bill would create a level playing field for the industry.

BILL:HB14-1331
TIME: 03:40:02 PM
MOVED:Williams
MOTION:Refer House Bill 14-1331, as amended, to the Committee on Appropriations. The motion passed on a vote of 10-1.
SECONDED:Holbert
VOTE
Exum
Yes
Hamner
Yes
Holbert
Yes
Navarro
Yes
Nordberg
Yes
Rosenthal
No
Ryden
Yes
Szabo
Yes
Wright
Yes
Kraft-Tharp
Yes
Williams
Yes
Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS