BILL NUMBER: SB 1276	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Bowen

                        FEBRUARY 13, 2004

   An act to amend Section 874 of the Public Utilities Code, relating
to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1276, as introduced, Bowen.    Telecommunications:  lifeline
telephone service rates.
   The Moore Universal Telephone Service Act established the
Universal Lifeline Telephone Service (ULTS) program in order to
provide low-income households with access to affordable basic
residential telephone service.  ULTS rates are required to be set at
no more than 50% of either the basic rate for measured service or the
basic flat rate service, as applicable, exclusive of federally
mandated end user access charges, that are available to the
residential subscriber.
   This bill would specify that ULTS rates are required to be set at
no more than 50% of the basic rate for measured service or the basic
flat rate service, as applicable, exclusive of federally mandated end
user access charges, that are available to the residential
subscriber from the telephone corporation offering the service.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 874 of the Public Utilities Code is amended to
read:
   874.  The lifeline telephone service rates and charges shall be as
follows:
   (a) In a residential subscriber's service area where measured
service is not available, the lifeline telephone service rates shall
not be more than 50 percent of the rates for basic flat rate service,
exclusive of federally mandated end user access charges, available
to the residential subscriber  from the telephone corporation
offering the service  .
   (b) In a residential subscriber's service area where measured
service is available, the subscriber may elect either of the
following:
   (1) A lifeline telephone service measured rate of not more than 50
percent of the basic rate for measured service, exclusive of
federally mandated end user access charges, available to the
residential subscriber  from the telephone corporation offering
the service  .
   (2) A lifeline flat rate of not more than 50 percent of the rates
for basic flat rate service, exclusive of federally mandated end user
access charges, available to the residential subscriber  from
the telephone corporation offering the service  .
   (c) The lifeline telephone service installation or connection
charge, or both, shall not be more than 50 percent of the charge for
basic residential service installation or connection, or both.  The
commission may limit the number of installation and connection
charges, or both, that may be incurred at the reduced rate in any
given period.
   (d) There shall be no charge to the residential customer who has
filed a valid eligibility statement for changing out of lifeline
service.
   (e) The commission shall assess whether there is a problem with
customers who fraudulently obtain lifeline telephone service.  If the
commission determines that there is a problem, it shall recommend
and promulgate appropriate solutions.  This assessment and the
solutions determined by the commission shall not, in and of
themselves, change the procedures developed pursuant to Section 876.