ARIZONA STATE SENATE
Phoenix, Arizona
antitrust
exemption; telecommunications services
Most Arizona corporations not subject to regulation by the Arizona Corporation Commission (ACC) are subject to the provisions of the Uniform State Antitrust Act. The Act contains exemptions, which include any conduct or activity of a public service corporation. These corporations used to include providers of electric generation service and may currently include telecommunication services. The 1998 Legislature passed a measure requiring public power entities to open their service territories to competition in the sale of electric generation service and exempting competitive electric generation service entities from the exemptions of the Uniform State Antitrust Act. This bill also exempted “other services” from the exemptions.
According to the Attorney General’s (AG) office, the phrase “other services” is vague, and could arguably apply to nonelectric competitive services. However, since “other services” were exempted within the electric competition bill, and there are competitive electric services in addition to generation services, a court may interpret the phrase as applying only to electric services.
Much of the telecommunication industry is currently not regulated by the ACC and the AG’s office anticipates that more and more competitive telecommunication entities will enter into the market. The AG’s office indicates that under current law, two or more of these deregulated entities might enter into a contract to monopolize an area of the state. H.B. 2447 removes competitive telecommunication service companies from those companies that are exempted from the Uniform State Antitrust Act.
There is no anticipated fiscal impact to the state general fund associated with this measure.
1. Specifies that the exemption from antitrust statutes does not apply to the provisions of competitive telecommunication services.
2. Stipulates that the removal from exemption of competitive telecommunications services does not alter, modify or affect applicable federal or state law regarding the rights of an owner of private property relative to provisions of or access to telecommunication services on or for that private property.
3. Contains a statement of purpose.
4. Provides for a general effective date.
CED 2/26/01 DPA 9-0-0-1
3rd Read 3/7/01 59-0-1-0
Prepared by Senate Staff
March 19, 2001