12. California High Cost Fund-B
Section 276 creates, among other things, a committee to advise the Commission on the development, implementation, and administration of a program to provide for transfer payments to telephone corporations providing local exchange services in high-cost areas.121 The program is referred to as the California High Cost Fund-B. Section 276 also delegates to the Commission the responsibility to develop a funding mechanism for this program.
The pertinent statutory language provides as follows: "[a]ll revenues collected by telephone corporations in rates authorized by the commission to fund the program...shall be submitted to the commission pursuant to a schedule established by the commission."122
In D.96-10-066, the Commission implemented a funding mechanism for the California High Cost Fund-B, finding that "all end-users of every LEC, IEC, cellular, and paging company in the state..."(including all CMRS providers, except for one way paging) should be included in the billing base...."123
Similar to the universal lifeline surcharge and the other surcharges, discussed above, the Commission in D.96-10-066 explicitly included cellular service, such as TracFone's, as one of the services subject to the California High Cost Fund-B.
TracFone argues that it is not responsible for the payment of the California High Cost Fund-B surcharge for the same reasons that it is not responsible for the universal lifeline surcharge. TracFone's central argument is that the debit card exemption, discussed above, serves to exempt its prepaid wireless services from the California High Cost Fund-B surcharge. TracFone makes other more minor arguments as well. These arguments are all addressed above. We disagree with TracFone's reasoning.
We find that TracFone is ultimately responsible for payment of the surcharge to fund the California High Cost Fund-B set forth in §§ 276 et seq. The relevant statutory framework for the universal lifeline surcharge and the California High Cost Fund-B are the same. As a result, our decision finding TracFone's service subject to the California High Cost Fund-B surcharge and responsible for payment of this surcharge is based on the reasoning set forth above regarding the universal lifeline surcharge. We further find TracFone acted unlawfully by failing to pay this California High Cost Fund-B surcharge.
121 § 276(a).
122 § 276(b).
123 D.96-10-066, 1996 Cal. PUC LEXIS 1046 *288.
