ARIZONA STATE SENATE
RESEARCH STAFF
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ZACHARY DEAN |
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ASSISTANT RESEARCH ANALYST |
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JEFFREY ONG |
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LEGISLATIVE RESEARCH ANALYST GOVERNMENT COMMITTEE Telephone: (602) 926 -3171 |
GOVERNMENT COMMITTEE
DATE: March 19, 2018
SUBJECT: Strike everything amendment to H.B. 2209, relating to internet protocol; corporation commission
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Purpose
Prohibits the Arizona Corporation Commission (ACC) from regulating the entry, exit, rates, terms, conditions or service quality standards of internet protocol-enabled services or video over internet protocol services (VOIP).
Background
Internet protocol-enabled services and VOIP services enable the use of voice calls using a broadband internet connection instead of a regular phone line. This technology allows an individual to communicate with another via voice or video calls through a phone, computer or other appropriate device, typically in real time.
The ACC is currently allowed to supervise and regulate every public service corporation in the state, including electric, water, gas and telecommunications utilities. With regard to telecommunications corporations, the ACC is required to encourage competition and growth in the industry and promote economic development and investment in new technologies. In the furtherance of this, the ACC is required to establish procedures and standards for regulating competitive long-distance telecommunications markets (A.R.S. § 40-202). The ACC maintains jurisdiction over local telephone services and partial jurisdiction over long distance and wireless services, but does not have any jurisdiction over internet services.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits the ACC from regulating, either directly or indirectly, the entry, exit, rates, terms, conditions or service quality standards of internet protocol-enabled services or VOIP services.
2. States that a person who offers, furnishes or provides for profit internet protocol-enabled services or VOIP services is not providing a message transmission service and is not a public service corporation.
3. Stipulates that this prohibition does not affect or modify the following:
a) the ACC’s authority to enforce federal requirements on VOIP related to, including 911 and E911 fees, telecommunications relay services fess and universal service fees;
b) obligations or any right granted to a person by Tile 47, Sections 251 and 252 of the United States Code; and
c) the ACC’s jurisdiction over intrastate switched access rates.
4. Defines internet protocol-enabled service as a service, functionality or application that uses internet protocol or a successor protocol and enables an end user to send or receive a voice, data or video communication in internet protocol format or a successor format.
5. Defines video over internet protocol service as a service that enables real-time, two-way voice communication that originates from or terminates at the user’s location in internet protocol or a successor protocol, and uses a broadband connection from the user’s indeterminable location.
6. Becomes effective on the general effective date.