Georgia House of Representatives - 1995/1996 Sessions

HB 121 - Telephone service; toll free calling

Page Numbers - 1/ 2/ 3

Code Sections - 46-2-25.2

1. Snow  2nd              2. Ray  128th              3. Golden  177th
4. Channell  111th


House Comm: Ind        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
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               House          Action         Senate                                                 
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              1/10/95  Read 1st Time                                                                
              1/11/95  Read 2nd Time                                                                
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Code Sections amended: 46-2-25.2, 50-5-200                                                          


HB 121                                            LC 10 1011






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Article 2 of Chapter 2 of Title 46 of the Official
  1- 2  Code of Georgia Annotated, relating to the jurisdiction,
  1- 3  powers, and duties of the Public Service Commission
  1- 4  generally, so as to provide for toll free calling between
  1- 5  two telephones where the central offices serving such
  1- 6  telephones are within 22 miles of each other; to provide for
  1- 7  modification of rate schedules; to provide for recovery of
  1- 8  expenses or lost revenue by telephone companies; to provide
  1- 9  that the rate-making power of the Public Service Commission
  1-10  shall not be affected; to amend Code Section 50-5-200 of the
  1-11  Official Code of Georgia Annotated, relating to the use of
  1-12  funds in Universal Service Fund not used for qualifying
  1-13  hardship assistance filings, so as to provide for the use of
  1-14  funds in the Universal Service Fund to facilitate toll free
  1-15  calling between two telephones where the central offices
  1-16  serving such telephones are within 22 miles of each other;
  1-17  to repeal conflicting laws; and for other purposes.

  1-18       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-19  Article 2 of Chapter 2 of Title 46 of the Official Code of
  1-20  Georgia Annotated, relating to the jurisdiction, powers, and
  1-21  duties of the Public Service Commission generally, is
  1-22  amended by striking in its entirety Code Section 46-2-25.2,
  1-23  relating to 16 mile toll free telephone calling, and
  1-24  inserting in lieu thereof a new Code Section 46-2-25.2 to
  1-25  read as follows:

  1-26    "46-2-25.2. (Index)

  1-27    (a) It is the goal purpose of this Code section to provide
  1-28    for toll free calling between two telephones where the
  1-29    central offices serving such telephones are within 16 22
  1-30    miles of each other.

  1-31    (b) On Except as provided in subsection (e) of this Code
  1-32    section, on and after July 1, 1992 January 1, 1996, the
  1-33    Public Service Commission shall not approve any new rate


                                 -1- (Index)

                                                  LC 10 1011

  2- 1    schedule which authorizes a long-distance charge for calls
  2- 2    between two telephones where the central offices serving
  2- 3    such telephones are within 16 22 miles of each other.

  2- 4    (c) On Except as provided in subsection (e) of this Code
  2- 5    section, on and after July 1, 1992 January 1, 1996, rate
  2- 6    schedules approved by the Public Service Commission prior
  2- 7    to July 1, 1992 January 1, 1996, shall be amended so as to
  2- 8    reduce by one-half the long-distance charge for calls
  2- 9    between two telephones where the central offices serving
  2-10    such telephones are within 16 22 miles of each other.

  2-11    (d) On or before July 1, 1993 January 1, 1996, the Public
  2-12    Service Commission shall conduct hearings and accept
  2-13    evidence with respect to previously approved rate
  2-14    schedules and upon consideration of such evidence shall
  2-15    determine any further reductions in long-distance charges
  2-16    for calls between two telephones where the central offices
  2-17    serving such telephones are within 16 22 miles of each
  2-18    other.  Such determination shall consider the availability
  2-19    of funds and other revenue sources to affected companies
  2-20    to offset the costs associated with such further
  2-21    reductions. 

  2-22    (e) All rate schedules approved pursuant to this Code
  2-23    section may be modified at the discretion of the Public
  2-24    Service Commission upon a good and sufficient showing of
  2-25    geographic, economic, or technological infeasibility by a
  2-26    telephone company.

  2-27    (f)(e) All rate schedules approved pursuant to this Code
  2-28    section shall take into account the following:

  2-29      (1) The reasonable cost of providing such service to
  2-30      customers of the telephone company throughout the entire
  2-31      service area of such telephone company and the increased
  2-32      value resulting from such expanded calling areas; and

  2-33      (2) The reasonable rate of return on investment
  2-34      authorized in the rate schedule approved by the Public
  2-35      Service Commission for such telephone company.

  2-36    (g)(f) Any telephone company seeking to recover any
  2-37    portion of its expenses or lost toll revenues resulting
  2-38    from the required implementation of the 16 22 mile toll
  2-39    free calling plan contained in this Code section shall
  2-40    demonstrate its financial hardship to the Public Service
  2-41    Commission before such recovery shall be allowed.  It
  2-42    shall be within the discretion of the Public Service



                                 -2- (Index)

                                                  LC 10 1011

  3- 1    Commission to determine the methodology and source of
  3- 2    recovery for any such affected telephone company. In
  3- 3    determining the method of offsetting the costs associated
  3- 4    with the 16 22 mile plan, the Public Service Commission
  3- 5    shall first utilize any available earnings at the
  3- 6    telephone companies seeking assistance in excess of those
  3- 7    authorized in their respective tariffs.  Such methodology
  3- 8    and source for offsetting costs shall include but not be
  3- 9    limited to recovery from the Universal Service Fund as
  3-10    permitted under Code Section 50-5-200.

  3-11    (h)(g) Nothing in this Code section shall be interpreted
  3-12    as amending, modifying, or repealing Code Section 46-2-23,
  3-13    relating to the rate-making power of the Public Service
  3-14    Commission generally and special provisions concerning
  3-15    telecommunications companies."

                         SECTION 2.

  3-16  Code Section 50-5-200 of the Official Code of Georgia
  3-17  Annotated, relating to the use of funds in Universal Service
  3-18  Fund not used for qualifying hardship assistance filings, is
  3-19  amended by striking subsection (b) in its entirety and
  3-20  inserting in lieu thereof a new subsection (b) to read as
  3-21  follows:

  3-22    "(b) For a period of three years after March 20, 1992
  3-23    January 1, 1996, an amount not to exceed $23 $25 million
  3-24    may be used from the Universal Service Fund for the
  3-25    purpose of offsetting transitional expenses and costs
  3-26    associated with the 16 22 mile calling radius as permitted
  3-27    under subsection (g) (f) of Code Section 46-2-25.2. The
  3-28    Department of Administrative Services, as sole
  3-29    administrator of the Universal Service Fund, is authorized
  3-30    to make disbursements from the Universal Service Fund for
  3-31    such purposes upon proper certification of same by the
  3-32    Public Service Commission.  Any portion of the $23 $25
  3-33    million not so disbursed by the Department of
  3-34    Administrative Services for said purposes within three
  3-35    years after March 20, 1992 January 1, 1996, shall become
  3-36    available solely for the purpose of funding awards by the
  3-37    governing board and the other distance learning and
  3-38    telemedicine purposes provided for in this part."

                         SECTION 3.

  3-39  All laws and parts of laws in conflict with this Act are
  3-40  repealed.



                                 -3- (Index)