First Special Legislative Session: Rural Broadband Passes

On June 24, Oregon Governor Kate Brown called the Legislature to return to Salem for the “First Special Legislative Session of 2020.” Note the “first” designation; media reports indicate that at least one more session to address state budget issues will occur at some point this summer.

This first special session focused on police accountability reforms in response to public outcry over inequities in the policing of communities of color, as well as proposals linked to the COVID-19 public health and economic crisis. Wrenching testimony from renters across the state urging legislators to extend the current moratorium on evictions starkly illustrated the pandemic’s economic devastation, which has disproportionately affected low-income and other already vulnerable populations.

Anticipating the special session, CUB advocated for consideration of two bills that had failed earlier this year due to the regularly scheduled 2020 legislative session ending early, when House and Senate Republicans walked out over objections to proposed climate change legislation. Both proposals were all the more important due to COVID-19.

• The Rural Telecommunication Investment Act (RTIA) resolves a fairness issue within the Oregon Universal Service Fund (OUSF) and establishes a sustainable fund for a broadband (high-speed internet access service) infrastructure and community planning grants program for underserved and unserved rural communities.
• Energy equity and affordability legislation addresses the energy burden on low-income and other vulnerable households. It authorizes the Oregon Public Utility Commission (PUC) to establish a low-income rate class, and to facilitate participation from low-income and environmental justice customer advocate groups in public proceedings before the PUC.

Unfortunately, for CUB and environmental justice allies, the energy and equity and affordability proposal did not make the final list of first special session bills. CUB and the coalition of supporters will continue to advocate for this urgently needed legislation.

CUB is pleased, however, to share better news regarding the RTIA legislation. Led by the bill’s champion, Representative Pam Marsh (District 5, Ashland), supporters entered the special session cautiously optimistic that the proposal (now designated SB 1603) would find its way to the Governor’s desk for her signature. After a tense and confusing week in terms of process, with votes that stretched until late in the day on Friday June 26, SB 1603 will soon become law.

The OUSF fairness issue mentioned above results from technology advances since the 1999 Legislature created the Fund to ensure safe, reliable, and affordable advanced communications across Oregon. Twenty years ago, “advanced communications” referred mostly to traditional landline telephone. This is why the legislation establishing the OUSF exempted the wireless industry.

The PUC oversees the OUSF and, prior to passage of SB 1603, applied an 8.5 percent surcharge on intrastate calls (calls delivered and received within state boundaries) of only landline and certain voice over internet protocol (VoIP) customers. This was unfair because both wireless and VoIP carriers use the networks largely paid for and maintained by regulated telephone utilities and their customers, many of whom are older, rural, and low-income.

SB 1603 finally resolved this longstanding fairness issue by changing the existing surcharge to a lower, six percent surcharge that will be spread across the intrastate voice portion of all customer bills. This stabilizes and caps the existing OUSF, and will generate up to $5 million annually for rural broadband infrastructure and community planning.

This last point is critical. As Oregon battles COVID-19 and further attempts to address the economic destruction left in its wake, there is no questioning the importance of broadband service. Tens of thousands of Oregonians have limited or no service availability. Spotty infrastructure and low subscription rates, particularly in rural communities, reflect this troubling digital divide.

SB 1603’s passage represents a positive step toward addressing Oregon’s digital divide. The bill is a significant and timely victory for all Oregonians, but for traditional telecommunications customers in particular.

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