New law to help poor with phone bills

CARSON CITY -- Gov. Kenny Guinn Thursday signed a bill that could lower basic telephone rates for up to 140,000 low-income families.

Senate Bill 487 gives a $5.25 a month subsidy on basic service to families that qualify. There is also financial help for poor families to pay for telephone hook-up service. Federal funds will reimburse the telephone companies for their loss, estimated to be $6 million a year.

Currently, customers have to ask to be enrolled in the "lifeline" reduced-rate program, but the new law requires the state set the guidelines and give telephone companies a list of people every six months who qualify with low incomes. The telephone companies would then notify the potential customers they are eligible.

The state Bureau of Consumer Protection estimated less than 10,000 families, or about 7 percent, now receive lifeline rates. It says there are 150,000 eligible households -- the largest number in Las Vegas where less than 5 percent of those eligible are presently signed up.

The law also protects telephone companies, public safety centers or manufacturers from suits filed if there is a malfunction in the operation of a 911 emergency system.

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