SENATE BILL REPORT

SB 5687

BYSenators Sutherland and Bauer

Limiting the application of the lifeline telecommunication service surcharge.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):January 31, 1989

Senate Staff:Paul Parker (786-7447)

AS OF FEBRUARY 27, 1989

BACKGROUND:

A surcharge tax, currently 12 cents a month per telephone line, funds a telephone assistance program that aids low-income households in obtaining and maintaining telephone service. Eligible households may obtain lower connection charges, a deposit waiver and a monthly "lifeline" rate established by the Utilities and Transportation Commission.

SUMMARY:

The surcharge is eliminated in telephone exchange areas where the lifeline rate established by the UTC exceeds the lowest rate available.  The UTC is required to review annually the surcharge amount and adjust it to eliminate any surplus in the lifeline account.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 30, 1989

Effective Date:The bill contains an emergency clause and takes effect immediately.