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House passes telecommunications bill to speed interconnection and raise penalties for noncompliance
Summary
The House approved a telecommunications bill creating expedited hearings, interconnection rules and stepped civil penalties for carriers that fail to implement interconnection agreements. Sponsors said stronger penalties were needed to deter delay; opponents warned costs might fall to residential customers.
After more than two hours of floor debate, the House on Feb. 27 passed a second-substitute telecommunications bill intended to fast-track interconnection disputes and deter intentional obstruction by incumbent carriers.
Representative James Stevens, sponsor, said the bill provides an expedited hearing process, clearer guidelines for interconnection and a two-tier penalty structure that distinguishes non-willful from willful violations. "If the commission finds that the violation was not willful or intentional ... the penalty period shall commence on the day after the deadline for compliance in the commission's order," Stevens said while explaining negotiated amendments. He also cited an example from Iowa where the utilities board assessed civil penalties in the range of $10,000 per day for willful violations.
Opponents questioned whether higher fines would ultimately be borne by residential customers. Representative Bigelow asked whether the raised caps were necessary; Stevens responded that, in past cases, compounding statutory fines had produced multimillion-dollar penalties and that the new structure targets the contracting party rather than compounding per-customer counts.
Floor amendments clarified timelines and allowed the Public Service Commission discretion in extraordinary circumstances. Another floor amendment to lower the caps (from $10,000/day to $5,000/day and scaled reductions of escalations) failed on the floor following recorded division votes.
The bill passed the House by roll call, 40 yes to 30 no, and will proceed to the Senate for consideration.
