CHAPTER 101
S.P. 99 - L.D. 265
An Act To Promote Affordable Telephone Service for Business and Residential Customers in Rural Maine
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the Public Utilities Commission is proposing to adopt changes to its rules that will go into effect well before the Legislature adjourns and that are not designated as major substantive rules requiring approval by the Legislature before taking effect; and
Whereas, the proposed rule changes will require that the State's incumbent local exchange carriers reduce the level of their in-state access rates and, in most cases, significantly increase the level of their basic local exchange telephone rates; and
Whereas, as a result of federal and state access-rate policies, local customers are experiencing significant increases in local rates without corresponding reduction in toll rates; and
Whereas, the increases in local exchange rates increase the threat to the State's universal service priorities, particularly in rural areas of the State; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 35-A MRSA §7101-B, sub-§2, as enacted by PL 1997, c. 259, §1, is repealed and the following enacted in its place:
2. Access rates. After any decrease of interstate access rates by the Federal Government, the commission shall consider corresponding reductions in intrastate access rates, taking into account both the disadvantages to customers of intrastate access rates that exceed interstate access rates and the disadvantages to customers of increases in rates for local telephone service that may result from reductions in intrastate access rates.
A. By May 31, 2005, the commission shall ensure that intrastate access rates are equal to interstate access rates established by the Federal Communications Commission as of January 1, 2003.
B. If achieving the result required under paragraph A would result in an increase of more than 50% in the price of local telephone service, whether as a result of an increase in local service rates or an increase in universal service fund collections, the commission shall:
(1) Phase in intrastate access rate reductions through stepped reductions so as to produce as smooth a transition as possible; and
(2) To the maximum extent possible, keep increases in the price of local telephone service to no more than 50% for each stepped reduction in the intrastate access rate.
C. If interstate access rates are reduced by the Federal Communications Commission below the rates as of January 1, 2003, the commission may further require reductions in intrastate access rates beyond what is required under paragraph A, except that, within any 2-year period, the commission may not require such further access rate reduction if the result will be an increase of more than 50% in local service rates or an increase of more than 50% in the collection rate for the state universal service fund.
The commission may adopt rules to implement this subsection. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective May 2, 2003.
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