Georgia CommonsHB 998: Public utilities; authorize certain Tier 2 local exchange companies to elect to become subject to rate of return regulation
Enrolled version, the latest LegiScan holds · Last action May 12, 2026 · Passed
The text as LegiScan holds it, read from the PDF the legislature publishes with its margin line numbers, running heads, and page footers removed. Line breaks are joined into paragraphs here; no word is changed.
Underlined words are what the bill adds to current law and struck-through words are what it removes, as the printed bill shows them.
House Bill 998 (AS PASSED HOUSE AND SENATE)
By: Representatives Leverett of the 123rd, Camp of the 135th, Powell of the 33rd, Jasperse of the 11th, Williams of the 168th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 4 of Chapter 5 of Title 46 of the Official Code of Georgia Annotated, relating to telecommunications and competition development, so as to authorize certain Tier 2 local exchange companies to elect to become subject to rate of return regulation; to extend the period of time certain distributions can be made from the Universal Access Fund; to require certain information from local exchange companies seeking reimbursement from the fund; to require the total amount of distributions not to exceed $50 million in the aggregate during any single fund year; to provide annual monetary limitations on certain distributions; to require annual reports on the Universal Access Fund; to provide for contents of such report; to provide for a definition; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 4 of Chapter 5 of Title 46 of the Official Code of Georgia Annotated, relating to telecommunications and competition development, is amended by revising Code Section 46-5-165, relating to alternative regulation of rates, terms, and conditions, as follows:
"46-5-165.
(a) Any Tier 1 local exchange company may elect to have its rates, terms, and conditions for its services determined pursuant to the alternative regulation described in this article, in lieu of other forms of regulation, including, but not limited to, rate of return or rate base monitoring or regulation, upon the filing of notice with the commission and committing to provide basic local exchange services upon reasonable request and to invest $500 million per year for five years to improve and strengthen telecommunications services in Georgia this state; provided, however, that, after the expiration of three years of such investments, the commission shall determine, after notice and opportunity for a Tier 1 local exchange company or other interested parties to be heard, whether such investment commitment should be continued for the remaining two years or whether such commitment should be reduced.
(b) Any Tier 2 local exchange company may elect to have the rates, terms, and conditions for its services determined pursuant to the alternative regulation described in this article upon the filing of notice with the commission and committing to provide basic local exchange services upon reasonable request.
(c) The alternative regulation under this article shall become effective on the date specified by the electing company but in no event sooner than 30 days after such notice is filed with the commission.
(d) On the date a telecommunications company elects the alternative regulation described in this article, all existing rates, terms, and conditions for the services provided by the electing company contained in the then existing tariffs and contracts are shall be deemed just and reasonable.
(e)(1) As used in this subsection, the term 'eligible Tier 2 local exchange company' means a Tier 2 local exchange company that:
(A) Is not affiliated, directly or indirectly, with any provider serving more than 50,000 access lines nation wide; and
(B) Is responsible for providing basic local exchange services upon reasonable request.
(2) Any eligible Tier 2 local exchange company that is an electing company may elect to become subject to rate of return regulation by certification to the commission of such election no later than August 1, 2026. An eligible Tier 2 local exchange company making such election shall be prohibited from making a subsequent election to have the rates, terms, and conditions for its services determined pursuant to the alternative regulation described in subsection (b) of this Code section prior to August 1, 2031.
(3) Nothing in this subsection shall be construed to limit any election to become subject to rate of return regulation made prior to July 1, 2026."
SECTION 2.
Said article is further amended in Code Section 46-5-166, relating to rates for switched access, by revising subsection (c) as follows:
"(c) Beginning January 1, 2011, and ending December 31, 2015, each Tier 2 local exchange company shall adjust in equal annual increments its intrastate switched access charges to parity with its similar interstate switched access rates. The commission shall have authority to govern the transition of Tier 2 local exchange company switched access rates to their corresponding interstate levels and the commission shall allow adjustment of basic local exchange services or universal access funds, as necessary to recover those revenues, based on calendar year 2008, lost through the concurrent reduction of the intrastate switched access rates. In the event that the rates for switched access cannot be negotiated in good faith between the parties, the commission shall determine the reasonable rates for switched access in accordance with the procedures provided in subsection (b) of this Code section. Any Tier 2 local exchange company that is an electing company may elect to become subject to rate of return regulation by certification to the commission of this election no later than December 31, 2010. A Tier 2 local exchange company making this election is prohibited from making a subsequent election to have the rates, terms, and conditions for its services determined pursuant to the alternative regulation described in subsection (b) of Code Section 46-5-165 prior to January 1, 2016."
SECTION 3.
Said article is further amended in Code Section 46-5-167, relating to Universal Access Fund, by revising subparagraph (d)(2)(B) and subsection (e) and by adding new subsections to read as follows:
"(B) Except for those distributions to Tier 2 local exchange companies that have reduced intrastate switched access charges pursuant to subsection (c) of Code Section 46-5-166, distributions to a Tier 2 local exchange carrier subject to rate of return regulation shall also be reduced by the amount per access line, which if added to the carrier's basic local exchange service rate, in accordance with a schedule established by the commission, results in an amount that would be equal to 110 percent of the July 1, 2009, residential state-wide weighted average rate for basic local exchange services imputed across all access lines and adjusted annually for inflation measured by the change in GDP-PI. The commission shall determine any such distributions upon application, demonstration, and good cause shown that the reasonable actual costs to provide basic local exchange services exceed the maximum fixed price permitted for such basic local exchange services; any distributions pursuant to this subparagraph shall be limited to a period of no more than 20 years.
(e) The commission shall require any local exchange company seeking reimbursement from the fund pursuant to subparagraph (d)(2)(B) of this Code section to file the information reasonably necessary to determine the actual and reasonable costs of providing basic local exchange services. Such information shall include, but not be limited to, the most recent unredacted audited financial reports with any accompanying notes for each company and its parent company. No distribution pursuant to this subsection shall be made for any expense incurred after December 31, 2040."
"(h)(1) Beginning with distributions made for approved costs incurred on or after July 1, 2026, the total amount of distributions from the fund pursuant to this Code section shall not exceed $50 million in the aggregate during any single fund year; provided, however, that, if the total amount of distributions authorized by the commission exceeds the annual monetary limitation, the commission shall reduce distributions on a proportional, pro rata basis so that the total distributions do not exceed such monetary limitation.
(2) For purposes of this subsection, the annual monetary limitation on distributions shall apply only to distributions attributable to costs incurred during fund years beginning on or after July 1, 2026, regardless of the date such distributions are disbursed.
(3) The commission shall continue to administer, review, approve, and disburse distributions as reimbursements for eligible costs incurred prior to July 1, 2026, in accordance with this Code section, without regard to the limitation established in paragraph (1) of this subsection.
(4) Nothing in this subsection shall be construed to impair or delay the payment of any distributions lawfully approved for costs incurred prior to July 1, 2026.
(i) The commission shall submit a written report on December 31, 2026, and every other year thereafter, concerning the Universal Access Fund to the Governor, the Lieutenant Governor, and the Speaker of the House of Representatives. Such report shall be submitted no later than December 31 of every even-numbered year and shall include the following information for the most recently completed Universal Access Fund year:
(1) The total amount of contributions collected for the Universal Access Fund, including the percentage rate charged to consumers for such contributions and the remaining balance of the fund as of the end of the reporting period;
(2) The total amount of fund requests and disbursements made from the Universal Access Fund and notable findings from annual audits;
(3) The total number of access lines providing basic local exchange service in the State of Georgia;
(4) The total number of access lines receiving support from the Universal Access Fund;
(5) The number of eligible local exchange companies receiving distributions from the Universal Access Fund; and
(6) Any other information determined by the commission to be material to describing the financial condition and operation of the Universal Access Fund, so long as such information does not disclose any trade secret or proprietary information of any specific provider."
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.