March 10, 1999

SENATE FLOOR AMENDMENT number ______ to SENATE BILL 569, as amended

Amendment sponsored by Senator Manny M. Aragon

1. On page 4, line 19, strike "F" and insert in lieu thereof "E".

2. On page 5, line 2, after "density" insert "or high cost".

3. On page 5, line 5, strike "and", on line 8, strike the period and insert in lieu thereof "; and" and between lines 8 and 9, insert the following paragraph:

"(6) determine which telecommunications carriers meet the eligibility criteria for participation in the low-income telephone service assistance program in the Low Income Telephone Service Assistance Act and provide for payment to those telecommunications carriers for reduced-rate assistance that is provided pursuant to Section 63-9C-4 NMSA 1978 and that is not otherwise supported by federal or state funding.".

4. On page 6, lines 19 and 20, strike "and business dial tone access line services" and insert in lieu thereof a comma and "among other retail public telecommunications services except residence dial tone access line service,".

5. On page 6, between lines 22 and 23, insert the following sections:

"Section 4. Section 63-9C-4 NMSA 1978 (being Laws 1987, Chapter 197, Section 4) is amended to read:

"63-9C-4. LOW-INCOME ASSISTANCE RATES--COMMISSION AUTHORITY.--

A. A local exchange company [may] shall provide assistance in the form of reduced rates to [those persons] residential customers who meet the eligibility criteria of one or more need-based assistance programs administered by the department or by the federal government.

B. The commission shall promulgate rules [and regulations] for the implementation of the Low Income Telephone Service Assistance Act for [those] local exchange companies who provide such assistance. The commission shall adopt a delivery structure for its program that is cost effective and coordinated with the department.

C. The commission shall structure the implementation of the Low Income Telephone Service Assistance Act in a manner that will result in funding of low-income programs in an amount at least equal to what is necessary to secure the maximum amount of federal matching funds for low-income telephone assistance programs. A local exchange company may obtain support from the state universal service fund pursuant to the State Universal Service Fund Act for reduced-rate assistance that is provided pursuant to this section and that is not otherwise supported by federal or state funding."

Section 5. Section 63-9C-5 NMSA 1978 (being Laws 1987, Chapter 197, Section 5) is amended to read:

"63-9C-5. [FEDERAL WAIVER] WAIVERS.--

A. In addition to any reduced rates provided by local exchange companies [on behalf of] that provide residential local exchange service to low-income New Mexicans, the commission shall apply to the [federal communications commission] appropriate governmental agency for a waiver of the federal end user common line charges and any other assessments or surcharges that, pursuant to federal or state law and rules, are at any time, subject to waiver with respect to recipients of low-income telephone service assistance. Upon receipt of [the] a waiver, the commission shall notify the local exchange companies providing low-income telephone service assistance and the monthly telephone bill shall reflect the waiver of the federal end user common line charges or other assessments or surcharges.

B. Recipients of low-income telephone service assistance shall not be surcharged or otherwise pay assessments that contribute to the state universal service fund pursuant to the State Universal Service Fund Act."".

6. Renumber the succeeding section accordingly.

__________________________________

Manny M. Aragon

Adopted ___________________ Not Adopted ___________________________

 (Chief Clerk) (Chief Clerk)

Date ________________