PASSED
in the State House of Representatives
on February 16, 2018, by a vote of
109-27
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Purpose: To increase the Universal Service Charge (the surcharge on retail telecommunications services) for four years and use the additional funds raised to support the Connectivity Initiative.
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Analysis: This bill would raise the surcharge that appears on Vermonters’ telecommunications bills from 2 to 2.5 percent, which amounts an estimated $6.3 million fee increase. The raise would sunset in four years (2022). The money collected from this increase will be transferred to the Connectivity Fund, which distributes grants to internet service providers that expand networks in underserved areas.
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Those voting YES believe these additional funds are necessary to connect all Vermonters to the internet.
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Those voting NO believe that Vermonters cannot afford any more taxes/fees, note that the Connectivity Fund has a history of being raided for other purposes, and that there is no clear plan for how the money would be spent to achieve the objective.
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The Connectivity Fund and the Universal Service Charge have been in place since 1994.
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As Recorded in the House Journal, Friday, February 16, 2018: “Shall the bill be read a third time? was decided in the affirmative. Yeas, 109. Nays, 27.” ( Read the Journal, p. 398-401.)
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