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Committee hears bill to remove outdated telecom retail rules and clarify PSC role
Summary
House Bill 45 would repeal certain state telecom statutes that the sponsor and utilities groups say are outdated, narrow retail rate regulation to legacy landline services, and remove an unfunded state universal service fund statute. PSC staff and rural broadband providers supported the changes with caveats about consumer protections.
Representative Braxton Mitchell, sponsor of House Bill 45, told the committee the bill repeals obsolete state statutes governing retail rate regulation and other legacy telecommunications items that predate modern services such as VoIP and broadband.
Mitchell said the 1996 federal Telecommunications Act and market changes make portions of Montana law outdated: “we are repealing statute that relates to VOIP service … and it hasn't been funded since then.” He said the state universal service fund statute exists but has never been operational and that the bill removes retail-rate regulation that only applied to a small number of legacy providers.
Trevor Graff of the Public Service Commission explained the practical role the PSC retains: the commission still may require telecom providers to register, hold complaint proceedings, regulate wholesale rates between providers and certify carriers; the commission has used those authorities to investigate poor service and secure remediation payments in past cases. Graff described the statewide universal service statute as unused and the performance-assurance account as an arcane, terminated docket created during earlier market conditions.
Bridger Mahlum of Broadband Montana, representing locally owned rural broadband providers, said the repeal aligns state law with current technology and competitive markets and affects only a very small number of retail-rate-regulated providers. The witnesses told committee members the PSC would retain the ability to investigate and address complaints and that the wholesale-rate regulatory authority would remain in place.
Committee members asked about the status of the federal Universal Service Fund and pending litigation. Witnesses noted the federal program remains in operation but that U.S. Supreme Court review could affect its mechanism; testimony said the complaint-driven PSC authority remains a backstop if federal funding arrangements evolve.
No committee vote on HB 45 was recorded in the hearing segment.
