House committee hears bill to remove obsolete Montana telecom statutes, leave complaint powers intact

Representative Katie Solankoff, R-Billings, told the House Energy Committee that House Bill 45 would remove obsolete provisions of the Montana Telecommunications Law, including retail rate-setting for a small number of legacy landline providers, a state universal service fund and a performance-assurance plan state account.

"This is a code cleanup bill that seeks to remove obsolete and unused statutes from the Montana Telecommunications Law," Solankoff said. She told the committee the provisions dated to the Montana Telecommunications Act of 1997 and that federal law and market changes have largely preempted state rate regulation for modern services.

The bill, Solankoff said, "does not remove the existing statutes that allow the commission to retain their authority to ensure that reliable and safe service at reasonable charges is granted to all Montanans." She added the Public Service Commission would still be able to investigate customer complaints under Montana Code section 60-9-3201.

Trevor Graff, external affairs coordinator for the Public Service Commission, testified as a proponent and said the commission requested the bill. "This is the second try for this bill," Graff said, noting confusion when a similar measure was heard last session and that the bill "does remove the requirement of the commission to set rates for small local legacy landline providers of telecommunication service." Graff said the commission still can require registration, hold complaint proceedings and investigate providers. He referenced a recent commission settlement that provided what he described as a payment for underserved customers.

Bridger Mahlum, representing Broadband Montana, said locally owned providers and cooperatives support the cleanup. "We collectively employ more than a thousand Montanans and invest more than $100,000,000 annually in our networks to deliver high speed Internet, and phone service to our rural communities throughout the state," Mahlum said, and added the association worked with the PSC and the bill sponsor on prior drafts.

Committee members asked clarifying questions. Representative Carter asked for the purpose of repealing the rate-setting authority; Graff replied that the existing statutory process imposes recurring paperwork and workload while the tariff schedules have gone largely untouched for many years. When asked whether repeal of the state universal service fund would threaten federal support, Graff said the state program has never been enacted and federal programs remain in place.

No formal action or vote on HB 45 was recorded at the hearing. The committee concluded the hearing and took a brief recess.