Georgia House of Representatives - 1995/1996 Sessions

HB 190 - Telephone serv; toll free within 21 miles; Universal Service Fund

Page Numbers - 1/ 2/ 3

Code Sections - 46-2-25.2

1. Holland  157th


House Comm: Ind        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
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               House          Action         Senate                                                 
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              1/12/95  Read 1st Time                                                                
              1/13/95  Read 2nd Time                                                                
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Code Sections amended: 46-2-25.2, 50-5-200                                                          


HB 190                                            LC 21 3029






                        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, so as
  1- 4  to provide for toll free telephone service between
  1- 5  telephones where the central offices serving the telephones
  1- 6  are within 21 miles of each other; to amend Code Section
  1- 7  50-5-200 of the Official Code of Georgia Annotated, relating
  1- 8  to the use of funds in Universal Service Fund, so as to
  1- 9  delete an obsolete reference; to repeal conflicting laws;
  1-10  and for other purposes.
HB 190
  1-11       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-12  Article 2 of Chapter 2 of Title 46 of the Official Code of
  1-13  Georgia Annotated, relating to the jurisdiction, powers, and
  1-14  duties of the Public Service Commission, is amended by
  1-15  striking in its entirety Code Section 46-2-25.2, relating to
  1-16  sixteen mile toll free telephone calling and inserting in
  1-17  lieu thereof the following:

  1-18    "46-2-25.2. (Index)

  1-19    (a) It is the goal of this Code section to provide for
  1-20    require toll free calling between two telephones where the
  1-21    central offices serving such telephones are within 16 21
  1-22    miles of each other.

  1-23    (b) Except as provided in subsection (e) of this Code
  1-24    section, on On and after July 1, 1992 1995, the Public
  1-25    Service Commission shall not approve any new rate schedule
  1-26    which authorizes a long-distance charge for calls between
  1-27    two telephones where the central offices serving such
  1-28    telephones are within 16 21 miles of each other.

  1-29    (c) Except as provided in subsection (e) of this Code
  1-30    section, on On and after July 1, 1992 1995, rate schedules
  1-31    approved by the Public Service Commission prior to July 1,
  1-32    1992 1995, shall be amended so as to reduce by one-half



                                 -1- (Index)

                                                  LC 21 3029

  2- 1    eliminate the long-distance charge for calls between two
  2- 2    telephones where the central offices serving such
  2- 3    telephones are within 16 21 miles of each other.

  2- 4    (d) On or before July 1, 1993, the Public Service
  2- 5    Commission shall conduct hearings and accept evidence and
  2- 6    upon consideration of such evidence shall determine any
  2- 7    further reductions in long-distance charges for calls
  2- 8    between two telephones where the central offices serving
  2- 9    such telephones are within 16 miles of each other.  Such
  2-10    determination shall consider the availability of funds and
  2-11    other revenue sources to affected companies to offset the
  2-12    costs associated with such further reductions. 

  2-13    (e) All rate schedules approved pursuant to this Code
  2-14    section may be modified at the discretion of the Public
  2-15    Service Commission upon a good and sufficient showing of
  2-16    geographic, economic, or technological infeasibility by a
  2-17    telephone company. 

  2-18    (f) All rate schedules approved pursuant to this Code
  2-19    section shall take into account the following: 

  2-20      (1) The reasonable cost of providing such service to
  2-21      customers of the telephone company throughout the entire
  2-22      service area of such telephone company and the increased
  2-23      value resulting from such expanded calling areas; and 

  2-24      (2) The reasonable rate of return on investment
  2-25      authorized in the rate schedule approved by the Public
  2-26      Service Commission for such telephone company. 

  2-27    (g)(d) Any telephone company seeking to recover any
  2-28    portion of its expenses or lost toll revenues resulting
  2-29    from the implementation of the 16 21 mile toll free
  2-30    calling plan requirement contained in this Code section
  2-31    shall demonstrate its financial hardship to the Public
  2-32    Service Commission before such recovery shall be allowed.
  2-33    It shall be within the discretion of the Public Service
  2-34    Commission to determine the methodology and source of
  2-35    recovery for any such affected telephone company. In
  2-36    determining the method of offsetting the costs associated
  2-37    with the 16 21 mile plan, the Public Service Commission
  2-38    shall first utilize any available earnings at the
  2-39    telephone companies seeking assistance in excess of those
  2-40    authorized in their respective tariffs.  Such methodology
  2-41    and source for offsetting costs shall include but not be
  2-42    limited to recovery from the Universal Service Fund as
  2-43    permitted under Code Section 50-5-200.


                                 -2- (Index)

                                                  LC 21 3029

  3- 1    (h)(e) Nothing in this Code section shall be interpreted
  3- 2    as amending, modifying, or repealing Code Section 46-2-23,
  3- 3    relating to the rate-making power of the Public Service
  3- 4    Commission generally and special provisions concerning
  3- 5    telecommunications companies."

                         SECTION 2.

  3- 6  Code Section 50-5-200 of the Official Code of Georgia
  3- 7  Annotated, relating to the use of funds in the Universal
  3- 8  Service Fund, is amended by striking in its entirety
  3- 9  subsection (b) and inserting in lieu thereof the following:

  3-10    "(b) For a period of three years after March 20, 1992, an
  3-11    amount not to exceed $23 million may be used from the
  3-12    Universal Service Fund for the purpose of offsetting
  3-13    transitional expenses and costs associated with the 16
  3-14    mile calling radius as permitted under subsection (g) of
  3-15    Code Section 46-2-25.2. The Department of Administrative
  3-16    Services, as sole administrator of the Universal Service
  3-17    Fund, is authorized to make disbursements from the
  3-18    Universal Service Fund for such purposes upon proper
  3-19    certification of same by the Public Service Commission.
  3-20    Any portion of the $23 million not so disbursed by the
  3-21    Department of Administrative Services for said purposes
  3-22    within three years after March 20, 1992, shall become Any
  3-23    moneys remaining in the Universal Service Fund after July
  3-24    1, 1995, shall be available solely for the purpose of
  3-25    funding awards by the governing board and the other
  3-26    distance learning and telemedicine purposes provided for
  3-27    in this part."

                         SECTION 3.

  3-28  All laws and parts of laws in conflict with this Act are
  3-29  repealed.















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