HB 998: Public utilities; authorize certain Tier 2 local exchange companies to elect to become subject to rate of return regulation

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Discussed in meetings (13)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

1. House Energy, Utilities & Telecommunications Committee, January 27, 2026 (part 2)

   From 0:54:44 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said the bill would remove the fund’s 2030 deadline and reopen enrollment for eligible Tier 2 telephone companies. The sponsor argued that gaps in cellular coverage still make landlines essential for rural residents, including for emergency calls, and that the approaching deadline threatens providers’ financing. Members asked about customer charges, declining landline use, federal funding overlap and the number of customers served. A Georgia Broadband and Telecom Association witness supported the bill, saying state and federal funds cover separate costs and that losing support could mean higher rates or reduced maintenance. The witness could not provide an overall cost per line or funding share of company revenue. An AT&T witness said the company’s Georgia landline customer base had declined 94% since 2012 and requested data identifying customers without reliable alternatives. Georgia Cable Association witnesses warned that growing payments and a shrinking contributor base could undermine the fund. Both organizations raised concerns about removing the deadline entirely. Public Service Commission staff said the assessment rate was 5.25%, requests totaled $43.8 million, and audits can reduce payments. Staff said roughly 14 or 15 additional companies could qualify, but could not estimate added costs. A member proposed ending distributions after December 31, 2038. Supporters said this would preserve legislative review; the sponsor objected over financing concerns. The amendment failed, and the committee approved the bill without it. No vote counts were stated.

2. House Energy, Utilities & Telecommunications Committee, January 27, 2026 (part 1)

   From 1:20:39 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said HB 998 would remove the fund’s 2030 expiration and reopen enrollment for eligible smaller telephone companies. The sponsor said the approaching deadline was already complicating financing and threatened affordable rural service where cellular coverage remained unreliable. A Georgia Broadband and Telecom Association witness supported predictable funding and said state and federal reimbursements cover separate costs, rather than duplicate payments. An AT&T witness said the company’s Georgia landline customer base had declined 94% since 2012 while fund payments had more than doubled over the past decade. The witness urged identifying customers without reliable alternatives before removing the expiration. Georgia Cable Association witnesses also requested more study, warning that growing payments and a shrinking contributor base could undermine the fund. Members asked about customer charges, usage, construction costs, alternatives and new recipients. Public Service Commission staff said the assessment was 5.25% of covered revenues, current requests totaled $43.8 million, and roughly 14 or 15 additional companies could enroll. Staff said audited requests can be reduced and future costs were unknown. Some requested figures and enrollment timing remained unanswered. A member proposed ending payments after December 31, 2038, to preserve legislative review. The sponsor objected, citing financing concerns. The amendment failed, and the committee approved the bill without announced vote totals.

3. House Rules Committee, February 11, 2026

   From 0:48:26 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 568

   Summary by Georgia Commons: The presenter offered a Rules substitute for HB 998, describing the Universal Access Fund as support for affordable basic telephone service in rural areas where service may not be economical. The presenter said the fund's scheduled 2030 expiration was limiting some providers' financing. Rather than remove the expiration entirely, the substitute would extend it to December 31, 2040. The presenter said it would also narrow eligibility for smaller providers opting in by August 1, impose a $50 million annual disbursement cap, require audits already requested by the Public Service Commission, and require commission reports to state leaders about the fund. The presenter said these changes responded to concerns and requests for more information about payments into and out of the fund. The committee approved the substitute with a do-pass recommendation and no opposition voiced. It then placed the substituted bill on Thursday's calendar, again without voiced opposition.

4. House floor session, February 12, 2026 (legislative day 18)

   From 1:55:47 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 576

   Summary by Georgia Commons: The clerk described HB 998 as allowing certain local telephone companies to choose regulation based on their rate of return. The sponsor said the Rules Committee substitute would extend the Universal Access Program and Fund from 2030 to 2040 to support affordable basic telephone service in sparsely populated areas. The sponsor said residents without reliable cell coverage need landlines, including for 911 calls. The sponsor described safeguards limiting yearly distributions and eligible companies, requiring audits and requiring Public Service Commission reports every two years. One member asked about service in mountainous Dade County, and the sponsor agreed the bill would help. A second member emphasized its importance to companies in Brantley and Bacon counties and said one had provided countywide internet without state assistance. Another supporter said independent rural telephone companies depended on the program and that compromises had addressed concerns. No opposing speech occurred. The House adopted the Rules Committee substitute without objection and passed the bill, 161 to 2. Afterward, another member jokingly questioned how constituents would communicate without the service.

5. Senate Economic Development and Tourism Committee, March 10, 2026

   From 0:12:29 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said the bill would extend Universal Access Fund payments from 2030 through 2040 and let qualifying small telephone companies elect to participate by August 1, 2026. The sponsor said participating companies must provide basic telephone service upon reasonable request, including where service would not otherwise be economical. The sponsor cited gaps in cellular coverage, access to 911 and financing concerns as reasons for extending the fund. The sponsor described a $50 million annual payment limit, a statutory audit requirement and twice-yearly reports to lawmakers. Members asked about fiber technology, funding, fees and the consequences of ending support. A GTBA witness said voice service delivered over fiber qualifies, but reimbursement covers only the voice-service share of costs. The witness reported roughly $43 million in payments in the past year and said the current assessment is 5.25% of fixed-voice bills, not cellular bills. The witness said the fund balance was not public and warned that ending support could lead companies to raise rates, stop serving some customers or reduce network upkeep. One member emphasized landlines' importance to rural businesses. The committee approved the bill unanimously.

6. Senate Rules Committee, March 16, 2026

   From 0:26:56 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said HB 998 would extend the Universal Access Program for about 10 years and add safeguards. The sponsor said the program supports basic telephone service, particularly in rural areas where providing service may not otherwise be economical. There were no substantive questions. The committee later unanimously included the bill on the next day's floor calendar.

7. Senate floor session, March 18, 2026 (legislative day 33)

   From 1:56:36 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Third Read)

   Summary by Georgia Commons: The sponsor said HB 998 would extend rural telephone support from 2030 to 2040, require participating companies to use Public Service Commission rate-of-return oversight, establish annual audits, and allow three additional companies to opt in by August 1, 2026. The sponsor said 19 of Georgia's 22 smaller telephone companies already participate and argued that landlines remain essential where cell coverage fails. Several senators cited emergencies and rural service gaps. An opposing senator argued that installed lines remain profitable, broadband and satellites offer alternatives, and extending support now would prolong what the senator described as a $2.60 monthly charge. The opponent also disputed claims about cellphones' inability to locate emergency callers. Two amendments proposed restoring an independent utility consumer advocate and preventing data-center electricity costs from falling on other customers. Their presenter cited rising power bills and financial risks from new generation. The chair ruled both amendments out of order under rules limiting substitute amendments. Senators challenged that ruling, arguing the amendments offered alternatives rather than cumulative additions. The Senate sustained the chair 31-21, voted 31-20 to end debate, and passed the bill 50-2.

• Read aloud: House floor session, January 16, 2026 (legislative day 5), 0:55:18
• Read aloud: House floor session, January 27, 2026 (legislative day 7), 0:41:20
• Read aloud: House floor session, January 28, 2026 (legislative day 8), 0:48:28
• Read aloud: Senate floor session, February 17, 2026 (legislative day 19), 0:32:24
• Read aloud: Senate floor session, March 12, 2026 (legislative day 31), 0:25:23
• Read aloud: Senate floor session, March 16, 2026 (legislative day 32), 0:29:20

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