New Mexico 2023 Regular Session Status: Enacted Bipartisan · 1 D · 1 R cosponsors

SB 155 — USE OF TELECOMM FUND FOR BROADBAND

Last action — Signed

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 19, 2023. Enacted.

Signed by Governor Michelle Lujan Grisham (Democratic) on March 30, 2023.

Prognosis

Likely to advance 72% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 3 sponsors

    3 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 D · 1 R) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

294 added · 438 removed

Plain-language change summary

The recent amendment to SB 155 allows the State Rural Universal Service Fund to be used for consumer broadband services in addition to its existing purposes. This change is significant because it aims to support internet access in remote areas of New Mexico, helping to bridge the digital divide and ensure that more residents have access to essential online services. By expanding the Fund's scope, the legislation addresses the growing need for reliable internet connectivity in underserved communities.

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SENATE TAX, BUSINESS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR SENATE BILL 155 56TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2023 4 6 8 10 AN ACT RELATING TO TELECOMMUNICATIONS;
AN ACT RELATING TO TELECOMMUNICATIONS;
15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 63-9H-6 NMSA 1978 (being Laws 1999, e t 17 Chapter 295, Section 6, as amended by Laws 2021, Chapter 118, w l n d 18 Section 2 and by Laws 2021, Chapter 120, Section 9) is amended = = 19 a l to read:
Section 63-9H-6 NMSA 1978 (being Laws 1999, Chapter 295, Section 6, as amended by Laws 2021, Chapter 118, Section 2 and by Laws 2021, Chapter 120, Section 9) is amended to read:
i a e r 20 "63-9H-6.
"63-9H-6.
STATE RURAL UNIVERSAL SERVICE FUND-- a t m m 21 ESTABLISHMENT.-- d r e 22 A.
STATE RURAL UNIVERSAL SERVICE FUND-- ESTABLISHMENT.-- A.
The commission shall implement and maintain a c e s k 23 "state rural universal service fund" to maintain and support e a n b 24 universal service that is provided by eligible u [ telecommunications carriers, including commercial mobile radio .225662.2 STBTC/SB 155 services carriers, as are determined by the commission.
The commission shall implement and maintain a "state rural universal service fund" to maintain and support universal service that is provided by eligible telecommunications carriers, including commercial mobile radio services carriers, as are determined by the commission.
As used in this section, "universal service" means basic local exchange service, comparable retail alternative services at affordable rates, service pursuant to a low-income telephone assistance plan and broadband internet access service to unserved and underserved areas as determined by the commission.
As used in this section, "universal service" means basic local exchange service, comparable retail alternative services at affordable rates, service pursuant to a low- income telephone assistance plan and broadband internet access service to unserved and underserved areas as determined by the commission.
B.
STBTC/SB 155 B.
The fund shall be financed by a surcharge on intrastate retail public telecommunications services to be determined by the commission, excluding services provided pursuant to a low-income telephone assistance plan billed to end-user customers by a telecommunications carrier, and excluding all amounts from surcharges, gross receipts taxes, excise taxes, franchise fees and similar charges.
The fund shall be financed by a surcharge on Page 1 intrastate retail public telecommunications services to be determined by the commission, excluding services provided pursuant to a low-income telephone assistance plan billed to end-user customers by a telecommunications carrier, and excluding all amounts from surcharges, gross receipts taxes, excise taxes, franchise fees and similar charges.
For the purpose of funding the fund, the commission has the authority to apply the surcharge on intrastate retail public telecommunications services provided by telecommunications e t 17 carriers, including commercial mobile radio services and voice w l n d 18 over internet protocol services, at a competitively and = = 19 technologically neutral rate or rates to be determined by the a l i a e r 20 commission.
For the purpose of funding the fund, the commission has the authority to apply the surcharge on intrastate retail public telecommunications services provided by telecommunications carriers, including commercial mobile radio services and voice over internet protocol services, at a competitively and technologically neutral rate or rates to be determined by the commission.
The commission may establish the surcharge as a a t m m 21 percentage of intrastate retail public telecommunications d r e 22 services revenue or as a fixed amount applicable to each c e s k 23 communication connection.
The commission may establish the surcharge as a percentage of intrastate retail public telecommunications services revenue or as a fixed amount applicable to each communication connection.
For purposes of this section, a e a n b 24 "communication connection" means a voice-enabled telephone u [ access line, wireless voice connection, unique voice over .225662.2 - 2 - STBTC/SB 155 internet protocol service connection or other uniquely identifiable functional equivalent as determined by the commission.
For purposes of this section, a "communication connection" means a voice-enabled telephone access line, wireless voice connection, unique voice over internet protocol service connection or other uniquely identifiable functional equivalent as determined by the commission.
The commission shall not apply this surcharge to a private telecommunications network;
The commission shall not apply this surcharge to a private STBTC/SB 155 Page 2 telecommunications network;
The fund shall be competitively and technologically neutral, equitable and nondiscriminatory in its collection and distribution of funds, portable between eligible telecommunications carriers and additionally shall provide a e t 17 specific, predictable and sufficient support mechanism as w l n d 18 determined by the commission that ensures universal service in = = 19 the state.
The fund shall be competitively and technologically neutral, equitable and nondiscriminatory in its collection and distribution of funds, portable between eligible telecommunications carriers and additionally shall provide a specific, predictable and sufficient support mechanism as determined by the commission that ensures universal service in the state.
a l i a e r 20 D.
D.
a t m m 21 (1) establish eligibility criteria for d r e 22 participation in the fund consistent with federal law that c e s k 23 ensure the availability of universal service at affordable e a n b 24 rates.
(1) establish eligibility criteria for participation in the fund consistent with federal law that ensure the availability of universal service at affordable rates.
The eligibility criteria shall not restrict or limit an u [ eligible telecommunications carrier from receiving federal .225662.2 - 3 - STBTC/SB 155 universal service support;
The eligibility criteria shall not restrict or limit an eligible telecommunications carrier from receiving federal universal service support;
(4) provide for the separate administration and disbursement of federal universal service funds consistent with federal law;
(4) provide for the separate administration STBTC/SB 155 Page 3 and disbursement of federal universal service funds consistent with federal law;
All incumbent telecommunications carriers and competitive carriers already designated as eligible e t 17 telecommunications carriers for the fund shall be eligible for w l n d 18 participation in the fund.
All incumbent telecommunications carriers and competitive carriers already designated as eligible telecommunications carriers for the fund shall be eligible for participation in the fund.
All other carriers that choose to = = 19 become eligible to receive support from the fund may petition a l i a e r 20 the commission to be designated as an eligible a t m m 21 telecommunications carrier for the fund.
All other carriers that choose to become eligible to receive support from the fund may petition the commission to be designated as an eligible telecommunications carrier for the fund.
The commission may d r e 22 grant eligible carrier status to a competitive carrier in a c e s k 23 rural area upon a finding that granting the application is in e a n b 24 the public interest.
The commission may grant eligible carrier status to a competitive carrier in a rural area upon a finding that granting the application is in the public interest.
In making a public interest finding, the u [ commission may consider at least the following items:
In making a public interest finding, the commission may consider at least the following items:
.225662.2 - 4 - STBTC/SB 155 (1) the impact of designation of an additional eligible carrier on the size of the fund;
(1) the impact of designation of an additional eligible carrier on the size of the fund;
The commission shall adopt rules, including a provision for variances, for the implementation and administration of the fund in accordance with the provisions of this section.
The commission shall adopt rules, including a STBTC/SB 155 Page 4 provision for variances, for the implementation and administration of the fund in accordance with the provisions of this section.
The rules shall require that an eligible telecommunications carrier receiving support from the fund pursuant to Subsection K, L, [or] M or N of this section must expend no less than sixty percent of the support it receives to deploy and maintain broadband internet e t 17 access services in rural areas of the state.
The rules shall require that an eligible telecommunications carrier receiving support from the fund pursuant to Subsection K, L, M or N of this section must expend no less than sixty percent of the support it receives to deploy and maintain broadband internet access services in rural areas of the state.
The rules also w l n d 18 shall provide for annual reporting by eligible = = 19 telecommunications carriers verifying that the reporting a l i a e r 20 carrier continues to meet the requirements for designation as a t m m 21 an eligible telecommunications carrier for purposes of the fund d r e 22 and is in compliance with the commission's rules, including the c e s k 23 provisions regarding use of support from the fund.
The rules also shall provide for annual reporting by eligible telecommunications carriers verifying that the reporting carrier continues to meet the requirements for designation as an eligible telecommunications carrier for purposes of the fund and is in compliance with the commission's rules, including the provisions regarding use of support from the fund.
e a n b 24 G.
G.
The commission shall, upon implementation of the u [ fund, select a neutral third-party administrator to collect, .225662.2 - 5 - STBTC/SB 155 administer and disburse money from the fund under the supervision and control of the commission pursuant to established criteria and rules promulgated by the commission.
The commission shall, upon implementation of the fund, select a neutral third-party administrator to collect, administer and disburse money from the fund under the supervision and control of the commission pursuant to established criteria and rules promulgated by the commission.
For purposes of this subsection, the commission shall not be a neutral third-party administrator.
For STBTC/SB 155 Page 5 purposes of this subsection, the commission shall not be a neutral third-party administrator.
The commission shall ensure that intrastate e t 17 switched access charges are equal to interstate switched access w l n d 18 charges established by the federal communications commission as = = 19 of January 1, 2006.
The commission shall ensure that intrastate switched access charges are equal to interstate switched access charges established by the federal communications commission as of January 1, 2006.
Nothing in this section shall preclude the a l i a e r 20 commission from considering further adjustments to intrastate a t m m 21 switched access charges based on changes to interstate switched d r e 22 access charges.
Nothing in this section shall preclude the commission from considering further adjustments to intrastate switched access charges based on changes to interstate switched access charges.
c e s k 23 J.
J.
To ensure that providers of intrastate retail e a n b 24 communications service contribute to the fund and to further u [ ensure that the surcharge determined pursuant to Subsection B .225662.2 - 6 - STBTC/SB 155 of this section to be paid by the end-user customer will be held to a minimum, the commission shall adopt rules, or take other appropriate action, to require all such providers to participate in a plan to ensure accurate reporting.
To ensure that providers of intrastate retail communications service contribute to the fund and to further ensure that the surcharge determined pursuant to Subsection B of this section to be paid by the end-user customer will be held to a minimum, the commission shall adopt rules, or take other appropriate action, to require all such providers to participate in a plan to ensure accurate reporting.
The commission shall authorize payments from the fund to incumbent local exchange carriers, in combination with revenue-neutral rate rebalancing up to the affordability benchmark rates.
The commission shall authorize payments from the fund to incumbent local exchange carriers, in combination STBTC/SB 155 Page 6 with revenue-neutral rate rebalancing up to the affordability benchmark rates.
e t 17 L.
L.
Notwithstanding the provisions of Subsection K w l n d 18 of this section, the annual amount of access reduction support = = 19 payments for an eligible incumbent local exchange carrier in a l i a e r 20 2024, 2025 and 2026 shall be equal to the annual access a t m m 21 reduction support payments for that eligible incumbent local d r e 22 exchange carrier for the year 2023.
Notwithstanding the provisions of Subsection K of this section, the annual amount of access reduction support payments for an eligible incumbent local exchange carrier in 2024, 2025 and 2026 shall be equal to the annual access reduction support payments for that eligible incumbent local exchange carrier for the year 2023.
Access reduction support c e s k 23 payments shall be terminated after December 31, 2026.
Access reduction support payments shall be terminated after December 31, 2026.
e a n b 24 [L.] M.
M.
The commission shall determine the u [ methodology to be used to authorize payments to all other .225662.2 - 7 - STBTC/SB 155 carriers that apply for and receive eligible carrier status;
The commission shall determine the methodology to be used to authorize payments to all other carriers that apply for and receive eligible carrier status;
(1) an eligible incumbent telecommunications carrier that is not eligible for funding pursuant to rate rebalancing in Subsection K of this section and that has been previously authorized pursuant to Subsection [M] N of this section for need-based support may apply for ongoing fund support;
(1) an eligible incumbent telecommunications carrier that is not eligible for funding pursuant to rate rebalancing in Subsection K of this section and that has been previously authorized pursuant to Subsection N of this STBTC/SB 155 Page 7 section for need-based support may apply for ongoing fund support;
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provided that an eligible telecommunications carrier receiving fund support pursuant to this subsection shall not offer basic local exchange residential and business services at rate levels lower than the rates for such services charged by any of the comparable carriers used for the determination of the level of e t 17 support;
provided that an eligible telecommunications carrier receiving fund support pursuant to this subsection shall not offer basic local exchange residential and business services at rate levels lower than the rates for such services charged by any of the comparable carriers used for the determination of the level of support;
w l n d 18 (3) the commission shall act upon a request = = 19 for ongoing fund support within one hundred twenty days of the a l i a e r 20 filing of the request;
(3) the commission shall act upon a request for ongoing fund support within one hundred twenty days of the filing of the request;
and a t m m 21 (4) nothing in this section shall limit the d r e 22 commission's authority to adopt rules pursuant to Subsection F c e s k 23 of this section regarding appropriate uses of fund support and e a n b 24 any restrictions on the use of the fund support by eligible u [ telecommunications carriers.
and (4) nothing in this section shall limit the commission's authority to adopt rules pursuant to Subsection F of this section regarding appropriate uses of fund support and any restrictions on the use of the fund support by eligible telecommunications carriers.
.225662.2 - 8 - STBTC/SB 155 [M.] N.
N.
The commission may also authorize payments from the fund to incumbent rural telecommunications carriers or to telecommunications carriers providing comparable retail alternative services that have been designated as eligible telecommunications carriers serving in rural areas of the state upon a finding, based on factors that may include a carrier's regulated revenues, expenses or investment, by the commission that such payments are needed to ensure the widespread availability and affordability of universal service.
The commission may also authorize payments from the fund to incumbent rural telecommunications carriers or to telecommunications carriers providing comparable retail alternative services that have been designated as eligible telecommunications carriers serving in rural areas of the state upon a finding, based on factors that may include a STBTC/SB 155 Page 8 carrier's regulated revenues, expenses or investment, by the commission that such payments are needed to ensure the widespread availability and affordability of universal service.
e t 17 [N.] O.
O.
The commission shall adopt rules that w l n d 18 establish and implement a broadband program to provide funding = = 19 to eligible telecommunications carriers for the construction a l i a e r 20 and maintenance of broadband infrastructure.
The commission shall adopt rules that establish and implement a broadband program to provide funding to eligible telecommunications carriers for the construction and maintenance of broadband infrastructure.
Each year, [a a t m m 21 minimum of eight million dollars ($8,000,000) of the fund] an d r e 22 amount equal to thirty million dollars ($30,000,000) less the c e s k 23 amounts expended pursuant to Subsections K, L, M and N of this e a n b 24 section shall be dedicated to the broadband program.
Each year, an amount equal to thirty million dollars ($30,000,000) less the amounts expended pursuant to Subsections K, L, M and N of this section shall be dedicated to the broadband program.
u [ [O.] P.
P.
Rules adopted pursuant to Subsection [N] O .225662.2 - 9 - STBTC/SB 155 of this section shall require that the commission:
Rules adopted pursuant to Subsection O of this section shall require that the commission:
and (3) require that the awards of support be consistent with federal universal service support programs.
and STBTC/SB 155 Page 9 (3) require that the awards of support be consistent with federal universal service support programs.
[P.] Q.
Q.
The commission shall evaluate the amount of the cap in an appropriate proceeding to be completed by June 30, 2019 and consider whether, based on the then-current status of the fund, e t 17 the cap should be modified, maintained or eliminated.
The commission shall evaluate the amount of the cap in an appropriate proceeding to be completed by June 30, 2019 and consider whether, based on the then-current status of the fund, the cap should be modified, maintained or eliminated.
w l n d 18 [Q.] R.
R.
By October 1 of each year, the commission = = 19 shall make a report to the legislature regarding the status of a l i a e r 20 the fund, including:
By October 1 of each year, the commission shall make a report to the legislature regarding the status of the fund, including:
a t m m 21 (1) relevant data relating to implementation d r e 22 of the broadband program and the progress toward digital equity c e s k 23 and digital inclusion in rural areas of the state;
(1) relevant data relating to implementation of the broadband program and the progress toward digital equity and digital inclusion in rural areas of the state;
e a n b 24 (2) recommendations for changes to the u [ structure, size and purposes of the fund and whether the cap on .225662.2 - 10 - STBTC/SB 155 the fund provided for in Subsection [P] Q of this section should be modified, maintained or eliminated;
(2) recommendations for changes to the structure, size and purposes of the fund and whether the cap on the fund provided for in Subsection Q of this section should be modified, maintained or eliminated;
The 2025 annual report made pursuant to Subsection R of this section shall include an assessment of the state rural universal service fund that addresses:
The 2025 annual report made pursuant to Subsection R of this section shall include an assessment of STBTC/SB 155 Page 10 the state rural universal service fund that addresses:
e t 17 (4) criteria for awarding funding;
(4) criteria for awarding funding;
w l n d 18 (5) the impact of proposed changes on per- = = 19 connection assessments;
(5) the impact of proposed changes on per- connection assessments;
and a l i a e r 20 (6) whether all sellers of prepaid a t m m 21 telecommunications services should be required to collect state d r e 22 rural universal service fund assessments at the point of sale, c e s k 23 similar to the methodology for collecting 911 emergency e a n b 24 surcharges pursuant to Section 63-9D-5 NMSA 1978." u [ SECTION 2.
and (6) whether all sellers of prepaid telecommunications services should be required to collect state rural universal service fund assessments at the point of sale, similar to the methodology for collecting 911 emergency surcharges pursuant to Section 63-9D-5 NMSA 1978." SECTION 2.
EFFECTIVE DATE.--The effective date of the .225662.2 - 11 - STBTC/SB 155 provisions of this act is July 1, 2023.
EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.
- 12 - 4 6 8 10 12 14 16 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .225662.2
STBTC/SB 155 Page 11 25
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill expands the uses of the state rural universal service fund to include consumer broadband support in New Mexico.

  • 63-9H-6

    including broadband internet access service to unserved and underserved areas as determined by the commission.

    Adds broadband internet access service as an eligible use of the fund.

  • 63-9H-6

    Money deposited in the fund is not public money, and the administration of the fund is not subject to the provisions of law regulating public funds.

    Affirms that the fund is treated differently from public funds.

  • 63-9H-6

    The commission shall not apply this surcharge to → The commission shall not apply this surcharge to a private telecommunications network; to the state, a county, a municipality or other governmental entity; to a public school district; to a public institution of higher education; to an Indian nation, tribe or pueblo; or to Native American customers who reside on tribal or pueblo land.

    Specifies additional exemptions from the surcharge.

  • 63-9H-6

    the administration and disbursement of money from the fund; → and the rules shall require that an eligible telecommunications carrier receiving support from the fund must expend no less than sixty percent of the support it receives to deploy and maintain broadband internet access services in rural areas of the state.

    Imposes a requirement on how fund support must be utilized by carriers.

Action History

  1. Signed

  2. passed House

  3. withdrawn from committee

  4. DO PASS committee report adopted

  5. Sent to House Commerce & Economic Development Committee & House Appropriations & Finance Committee

  6. passed Senate

  7. DO NOT PASS, replaced with committee substitute

  8. DO PASS, as amended, committee report adopted

  9. Sent to Senate Indian, Rural and Cultural Affairs Committee & Senate Tax, Business and Transportation Committee

Sponsors

Sponsorship breakdown

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3 sponsors · 0 co-sponsors · 109 not signed on

Sponsors (3)

Co-sponsors (0)

None.

Not signed on (109)

109 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

finance technology
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Frequently asked questions

Who sponsors SB 155?
SB 155 is sponsored by Sariñana, Debra M., Michael Padilla (Democrat), and Joshua A. Sanchez (Republican).
What is the current status of SB 155?
This bill has been enacted into law. Introduced January 19, 2023. Enacted.
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