The law created a Universal Service Fund to finance the improvements in service necessary in rural areas. But it led to charges on monthly phone bills and new cellular telephone fees, as well as an increase in the cost of pay telephone calls to 35 cents from 25 cents. The House Utilities and Senate Commerce committees have drafted and endorsed different proposals for changing the 1996 law. Each chamber could debate its bills on Tuesday. Walker Hendrix, consumer counsel for the Citizens' Utility Ratepayers Board, said consumers are benefiting because legislators are keeping the telecommunications debate alive.
CURB represents residential customers and small businesses in regulatory cases.
Legislators expect a busy week, because they are approaching their scheduled first adjournment April 9. The Senate expects to take up a bill on corporate hog farming, and two of its committees have scheduled hearings on a House-approved plan to restructure the higher education system. The Senate Commerce Committee endorsed its telecommunications bill on an 11-0 vote Friday, three days after the House committee endorsed its proposal. A key issue for legislators is what to do with the Universal Service Fund. The law led to a surcharge of 9.89 percent on long-distance phone calls within the state.