SB 387 — Provides for the regulation of certain suppliers that provide an inmate calling service. (BDR 58-1015)

(ReprintedSenate withBill amendmentsNo. adopted on April 13, 2021) FIRST REPRINT S.B.

387387–Senator SENATED. BILL NO .

387–SENATORHarris D.Joint Sponsors:

HARRISAssemblymen MC.H. ARCH 26, 2021 ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Provides for the regulation of certain suppliers that provide an inmate calling service.

(BDRMiller, 58-1015)Summers-Armstrong FISCALand NOTE:Watts CHAPTER..........

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law requires the Public Utilities Commission of Nevada to regulate certain utilities.

(Chapter 704 of NRS) Under existing law, all telecommunication providers, with the exception of certain small-scale providers of last resort, are classified as competitive suppliers and subject to reduced regulation by the theCommission. Federal Communications Commission establish rate caps and certain otherby limitations on charges that may be imposed by a provider of an inmate calling service for interstate or international calls.

(NRS 704.68861-704.68887) Existing federal regulations adopted by the Federal Communications Commission establish rate caps and certain other limitations on charges that may be imposed by a provider of an inmate calling service for interstate or international calls.

§§ 64.6000 et seq.) Section 3 of this bill defines “inmate calling service” to mean a calling service that allows a person confined in a correctional facility to make intrastate calls to personsSection outside2 theof correctionalthis facilitybill indefines which“correctional thefacility” personto isinclude beinga confined.public or private correctional facility.

Section 2 of this bill defines “correctional facility” to include a public or private corSection 5 of this bill requires the Commission to adopt by regulation procedures to:

Commission,Section and4 obtainof approvalthis for,bill requires a schedulecompetitive orsupplier tariffto thatfile specifieswith the rates, terms and conditions applicable to an inmate calling service before providing thethes, service.

Section 4 requires the Commission to approve any schedule or tariff that specifies rates, terms and conditions that do not exceed a rate cap prescribed by the - *SB387_R1* – 2 – Commission and that comply with any limitation prescribed by the Commission.

Section 4 authorizes the Commission to approve a schedule or tariff that exceeds a rate cap or fails to comply with a limitation prescribed by the Commission pursuant competitive supplier to submit a revised schedule or tariff if the Commissionprocedure revisesadopted apursuant rate cap or limitation and the schedule or tariff on file with the Commission exceeds the revised rate cap or fails to complysection with5. the revised limitation.

Section 124 ofalso thisrequires bill authorizes a competitive supplier whoto providessubmit ana inmaterevised callingschedule serviceor beforetariff Octoberif 1,the 2021,Commission torevises continuea torate providecap suchor servicelimitation ifand bythe sectionschedule 4or bytariff aon certainfile date.with the limitation.

SectionsSection 1012 and 11 of this bill makeauthorizes conformingreda changescompetitive supplier who provides an inmate calling service before October 1, 2021, to removecontinue certainto exemptionsprovide fromsuch regulationservice byif the competitive supplier files with the Commission forthe competitivetariff suppliersor thatschedule providerequired anby inmatesection calling4 service.by a certain date.

Sections 10 and 11 of this bill make conforming changes to remove certain exemptions from regulation by the Commission for competitive suppliers that provide an inmate calling service.

Sections 6-9 of this - 81st Session (2021) – 2 – the Nevada Revised Statutes.

to indicate the proper placement of sections 2-5 in THEEXPLANATION PEOPLE– OFMatter THEin STATEbolded OFitalics NEVADA,is REPRESENTEDnew; IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

“Correctional facility” means a local detention facility,detention county,of cityjuvenile oroffenders, town jail, state prison, reformatory or other correctionalcorrectionale facility, including, without limitation, a facility where a prisoner is housed by a private entity with which the Department of Corrections has contracted to perform core correctional services pursuant to NRS 208.175.

- *SB387_R1* – 3 – (b) May approve a schedule or tariff that specifies rates, terms and conditions that exceed a rate cap or fail to comply with a limitation prescribed by the Commission pursuant to the procedure for approval prescribed by regulations adopted by the Commission pursuant to section 5 of this act.

- 81st Session (2021) – 3 – (a) A statement that demonstrates that the rate cap or limitation is not a just or reasonable rate or limitation for the competitive supplier;

and (b) Proof that the competitive supplier participated in a public hearing conducted by the Commission for the purposes of establishing the rate cap or limitation.limitation.the purposes of 4.

4.

(c) Limiting the taxes or fees that providers may charge users of inmate calling services in a manner consistent with any limitations on the collection of any taxes or fees prescribed by the Federal Communications Commission for providers of interstate or international(d) inmateApproving callinga services;schedule or tariff that exceeds a rate cap or fails to comply with a limitation established by the Commission in accordance with this subsection.

and (d) Approving a schedule or tariff that exceeds a rate cap or fails to comply with a limitation established by the Commission in accordance with this subsection.

- *SB387_R1* – 4 – 3.

- 81st Session (2021) – 4 – Sec.

Except as otherwise provided in NRS 704.68861 to 704.68887, inclusive, and sections 4 and 5 of this act, it is unlawful for any public utility to discontinue, modify or restrict service to any city, town, municipality, community or territory theretofore serviced by it, except upon 30 days’ notice filed with the Commission, specifying in detail the character and nature of the discontinuance or restriction of the service intended, and upon order of the Commission, made after hearing, permitting such discontinuance, modification or restriction of service.

A small-scale provider of last resort is not a competitive supplier that is subject to the provisions of NRS 704.68861 to 704.68887, inclusive, and sections 4 and 5 of this act, unless the small-scale provider of last resort is authorized by the Commission pursuant to NRS 704.68869 to be regulated as a competitivecompetitiveommission supplier.

- *SB387_R1* – 5 – (a) The duties of a competitive supplier that is an incumbent local exchange carrier regarding the provision of network interconnection, unbundled network elements and resold services under the provisions of the Telecommunications Act of 1996, Public Law 104-104, 110 Stat.

or - 81st Session (2021) – 5 – (b) The authority of the Commission to act pursuant to NRS 704.6881 and 704.6882.

704.68871of 1.this act, a competitive supplier is not subject to any review of earnings or monitoring of the rate base or any other regulation by the Commission relating to the net income or rate of return of the competitive supplier, and the Commission shall not consider the rate of return, the rate base or any other earnings of the competitive supplier in carrying out the provisions of NRS 704.68861 to 704.68887, inclusive [.] , and sections 4 and 5 of this act.