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Montgomery, Alabama
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Montgomery, Alabama
United States
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AARP Alabama
AARP Alabama
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Montgomery, Huntsville, Mobile
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My Journals (36)
The Alabama legislature returned to Montgomery Thursday, May 14th for their final two days of the 2009 regular session. The biggest news of the day on Thursday was when the Senate overrode the Governor’s executive changes to the General Fund budget. As you recall, the legislature passed the General Fund budget funding non-education agencies before the last week of the session, but the Governor sent it back to legislators requesting additional support for prisons while eliminating certain projects to make up for the $4.2 million request. When it became evident from legislators, members of the media and others that nearly $1 million was going to be stripped from senior services, AARP activated our e-activists. Thanks to the hundreds of calls and emails, we were heard loud and clear. The executive branch and legislators responded and restored our funding. Congratulations on your success and thank you for taking time to volunteer for AARP! Also, the AARP state office wishes to extend a special heart felt thanks to all of you who took the time to fight for those 50 and older by calling and emailing your legislator. We are very proud to say we won the battle thanks to your outstanding effort!!
Also on Thursday, the House of Representatives gave final approval to the AARP supported legislation sponsored by the Banking and Insurance Chairman, Senator Bobby Denton, The Secure and Fair Enforcement for Mortgage Licensing Act, THE SAFE ACT. This legislation cracks down on the mortgage loan originators by requiring background checks, license fees, surety bonds, and the measure calls for civil penalties for wrong doing. Another bill that AARP played a key role in that received final passage on the second to the last day of the session was SB 233, the Residential Mortgage Fraud Act. This legislation establishes a crime for residential mortgage fraud allowing the DA’s and AG’s to conduct investigations. The banking department and others recognized AARP on several occasions in committee meetings as being helpful.
On the final legislative day of the 2009 session, members of the House gave final approval to SJR 84, “The Long Term Care Rebalancing Advisory Committee Resolution.” Through this resolution, an advisory committee will be created to provide advice and recommendations to the Governor, the Legislature, and the Alabama Medicaid Commissioner regarding the establishment and implementation of a long term care system, a continuum of care, which enables the elderly, the disabled, and people with fragile health to live at the most appropriate level of care given their medical needs. The committee shall make comprehensive and continuous study of the planning, development, and management of the long term care system in the state and make recommendations for legislation and administrative initiatives. The committee will submit its recommendations by the 10th legislative day of the 2010 regular legislative session. ** AARP played a key role getting SJR 84 up for a final vote in the House of Representatives
AARP Highlights during the 2009 Regular Legislative Session
SB 89 Mike Denton Infection Act
SB 249 Secure and Fair Enforcement Act “SAFE ACT”
SB 233 Residential Mortgage Fraud Act
SJR 84 Long Term Care Rebalancing Committee Resolution
HJR 92 Statewide Public Transit Commission Resolution
SB 88 The Missing Senior Alert Act
HB 267 The Alabama Military Hall of Honor Act
Funding For Senior Programs in the General Fund Budget
Added: May 27, 2009
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AARP has made
guaranteeing access to affordable health coverage for people
aged 50-64 an essential element of health reform. Why? Americans aged
50-64-- who make up nearly half of AARP’s 40 million members --
are taking a hard hit in these times of shrinking employer-sponsored
health coverage. They have become the fastest growing group of uninsured.
The rate at which they have
been losing coverage is really alarming -- 36 percent between 2000 and
2009. This problem is becoming more serious because, thanks to the
aging of the baby boomers, our 50-64 population is growing rapidly.
Nearly one of every five Americans will be 50-64 by 2015. So, AARP is
pressing Congress to find a common-sense solution to the coverage gap
for 50-64-year-olds. For information on AARP’s efforts to help
people in this age group – and on ways you can help
– please check out AARP's new web page for health reform.
Added: May 8, 2009
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The Alabama legislature returned to Montgomery on Tuesday for their 24th legislative work day of the 2009 regular session. As the members of the House and Senate convened Tuesday afternoon, both chambers appeared to move fairly slowly spending most of the day in a delay mode.
The House of Representatives spent the majority of the day debating the $6.2 billion education budget and before they adjourned for the day, the members voted to approve the measure 103-0. The education budget now goes to the Senate for consideration.
Also on Tuesday, the Senate confirmed four trustees to the University of Alabama system. The Senate voted 30-0 to approve Jim Wilson III of Montgomery, Davis Malone of Dothan, William Britt Sexton of Decatur and Ronald Gray of Huntsville. After approval, the Senate spent a major portion of the day in a filibuster over legislation that would increase the alcohol content in certain beer from 6 percent to 13.9 percent. After adjournment, the Senate and the House squared off in “The Battle of Lawmakers” softball game. Even though the House rallied late in the game, the Senate won the annual event 28-15.
On Thursday, after 4 hours of passionate debate on the House floor, the members gave final passage to legislation that deregulates basic telephone service. AARP fought extremely hard against this bill which removes any oversight of rate increases by the Alabama Public Service Commission. The legislation also removes the Consumer Price Index Cap that is currently in place to protect consumers from potential rate increases for basic landline telephone service. We had so many legislators taking the microphone fighting for AARP, but in the end, the special interests won the battle. Representative Mac Gipson offered the AARP amendment that was fought aggressively by AT&T. This amendment required the Alabama Public Service Commission to conduct a study/investigation to determine whether Alabama indeed has sufficient competition to deregulate basic telephone service and report back to the legislature in 2013. Our amendment was defeated, 41-25 with an amazing 39 legislators not voting. AARP wants to personally thank everyone for coming together and working so hard in opposition to this legislation!! Our multi-faceted effort managed to drive thousands of calls and emails into the House and Senate member’s offices.
On a positive note, before the House members adjourned for the week, they unanimously approved the “Mike Denton Infection Act”. This legislation requires hospitals and other health care facilities to report to the state health department when patients acquire infections while being treated inside the facilities. AARP supported this legislation and worked so hard on its passage. We want to thank all of you who made calls and sent emails from around Alabama on this bill as well!
In the upper chamber, the members of the Senate failed to have sufficient support on a procedural vote to consider legislation that would expand Alabama’s unemployment compensation program with $100 million in stimulus funds. The vote was one vote short of the necessary 18 to begin debate on the legislation. Opponents of the bill say Alabama businesses would have to pay higher taxes to maintain the benefits once the stimulus funds run out. The Senate also voted to give final approval to the changes in the $6.2 billion Education budget made by the House of Representatives. It will now go to the Governor for his signature.
Added: May 7, 2009
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The Alabama legislature reconvened on Tuesday for their 22nd legislative day with both chambers appearing eager to pass the state’s budgets.
The members of the upper chamber started the day working at a fast and furious pace. After a few hours of debate, the Senator’s voted 32-0 to approve the $6.3 billion education budget for the 2009-2010 year. This budget is up 7 percent from the 2008-2009 fiscal year and will receive $513 million in federal stimulus money. On Tuesday afternoon, the members approved a measure that would create a system to determine how hospitals are reimbursed for Medicaid patients. Later that evening, the Senate approved the 2009 Breast and Cervical Cancer Prevention and Treatment Act. Under current law, the sponsor of the bill, Senator Kim Benefield said, “women diagnosed at a county health center are eligible for Medicaid, but those being treated at their gynecologist or another health care provider are not.” This legislation should close that loophole currently existing in state law.
Also on Tuesday, the members of the House of Representatives started the day addressing the general fund budget and managed to move at a fairly fluid pace until stalling tactics developed over the money Governor Bob Riley planned to set aside for emergencies in his discretionary account. The general fund budget funds all non-educational services.
On Thursday, after patching up their differences, members of the House of Representatives convened at 10:00AM and passed the general fund budget 101-0 by 11:00AM. The budget covers all non–education agencies including Medicaid, Department of Human Resources, and Department of Corrections. The budget that covers our next fiscal year would spend $1.52 billion from the state general fund and $1.022 billion in federal stimulus money for a total of $2.546 billion, a 29 percent increase over this year’s spending. On Thursday afternoon, the members of the house approved a bill authorizing the Alabama Board of Veteran Affairs to develop a veteran’s cemetery near Spanish Fort in Baldwin County. They also managed to approve legislation that expands Alabama’s hate crime law to protecting those people who suffer hate crimes due to their sexual orientation on a 46-41 vote. The members of the house continued their work efforts late Thursday night despite delay tactics by the black caucus over the failure of the House to reconsider legislation that would remove the 4 percent state sales tax on food.
In the Senate, the members of the Senate approved an appropriation for Tuskegee University, Talladega College, and Lyman Ward Military Academy. Before adjourning for the week, the members passed a resolution on a 16-3 vote renaming the ASU Acadome to the Joe L. Reed Acadome. Confirmations included former State Banking Superintendent, Anthony Humphries to the Ethics Commission. Four members of the Troy University Board were reconfirmed and Randy Hillman was approved as a trustee for University of West Alabama.
Added: May 7, 2009
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The following is a legislative wrap-up for the week of April 13-16 from Conwell Hooper, associate state director for advocacy.
10th Legislative Report for the 2009 Regular Session
The Alabama legislature reconvened on Tuesday for their 20th legislative day, with both chambers intent on spending the day in a filibuster mode. As it turned out, neither chamber managed to pass any legislation. In the House of Representatives, the House Republicans spent the day using stalling tactics, after their perceived mistreatment over placement of some of their bills on the agenda. The black caucus continued their delaying tactics over failure of the legislation that would remove the tax on food items. In the upper chamber, Senator Phil Poole of Tuscaloosa continued his efforts to stall any legislation on the calendar.
As it turned out, the filibuster in the House prevented legislators from voting on Tuesday’s third bill on the calendar, SB 89. This is a measure requiring the submission of patient infections by hospitals and other health care facilities to the Department of Health. THE MIKE DENTON INFECTION ACT is named in honor of the son of Senate Banking and Insurance Committee Chairman, Senator Bobby Denton, who passed away at age 30 from an infection after going through routine knee surgery. AARP supports this legislation and continues to work hard on its final passage.
On Wednesday, the House Government Appropriations Committee approved a General Fund budget for the 2009-2010 fiscal year that will go to the floor for consideration. The Government Operations Committee approved a measure that would allow the Legislative Building Authority to use land and arrange financing for new legislative offices behind the State Capitol.
Sadly, the Government Operations Committee approved the AT&T deregulation legislation on a clever voice vote, ending the Public Service Commission’s oversight of basic telephone service. Without sufficient basic wire line competition in the market place, SB 373 removes the rate hike cap currently in place giving AT&T the ability to raise rates as high as they wish.
This measure will now go to the House of Representatives for a final passage. We want to thank Representative Jody Letson, of Moulton, for standing strong with consumers and voting against this legislation. As you know, AARP has strongly opposed this legislation since its introduction. We want to thank all of you for your thousands of calls, emails and messages to your House and Senate members. In fact, one legislator was angry that we called her and emailed her regarding our opposition. I promise, our presence is being felt, but we are up against the big money special interests. We may not have the money and resources, but we all vote and we will remember. We will continue to keep you informed on the House vote for final passage.
Also on Wednesday, the Senate Finance and Taxation-Education Committee approved the education budget for the 2009-2010 fiscal year. The Senate Finance and Taxation-General Fund Committee approved a bill that would help bail out the Alabama Prepaid College Tuition Plan, and approved a Medicaid funding bill. The Senate Judiciary Committee approved legislation to expand the number of people who can witness an execution on death row.
Senator Linda Coleman brought all stakeholders together and appears to have reached common ground on a resolution she introduced that would create a long-term care rebalancing committee. AARP was tapped to serve as a member of this committee.
On Thursday, the House of Representatives started the day in a filibuster mode, but just before lunchtime, they managed to work out their differences for a short time and passed a few bills. On a bill sponsored by Representative Jimmy Martin, the members voted 89-3 to approve a measure that would allow Alabama citizens overseas to cast their ballots over secure internet connections.
The House approved a bill requiring restaurants to disclose the country of origin of seafood. They also passed legislation allowing public colleges and universities to waive tuition and fees for recipients of the Purple Heart
The Senate spent the entire day continuing their filibuster tactics, but did come together briefly to give final approval to legislation creating the Alabama Interagency Autism Coordinating Council that will go to the Governor for his signature.
Added: April 17, 2009
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House Government Operations Committee Votes 6-1 to Approve SB373
MONTGOMERY, Ala. – This week the House Government Operations committee voted 6-1 to allow for telephone de-regulation in Alabama, a vote AARP believes is against the best interest the Alabamians who put them in office.
Under Senate Bill 373, the price of basic residential service and optional services, such as call waiting, will be completely deregulated as of January 2011. Currently, the Alabama Public Service Commission (PSC) has oversight over telephone service in the state, and rate hikes are tied to the rate of inflation. When service is deregulated, the PSC will have no oversight, leaving these service providers with no price controls, and even in areas where no competition exists, providers will set their own rates.
AARP is opposed to SB373 because AT&T and other incumbent carriers could price stand-alone basic service at any level, despite the lack of competitive alternatives for many customers, especially those in rural areas with competition is limited, if non-existent.
According to the Public Service Commission, more than 240,000 telephone lines, in 47 of Alabama’s 67 counties, are currently provided by telephone companies with monopolies in their areas.
AARP State Director Joan Carter said, “Telephone communication is a basic necessity that allows older people to maintain social contact, preserve health and safety, and gain assistance in an emergency. Many of our 515,000 members are age 65 and older, and that is the segment of the population most likely to have traditional wire-line telephone service.
“In areas where there is no competition, older Alabamians will have no choice. They will have to pay what the carrier is charging or be without this vital service,” Carter said.
AARP has proposed an amendment to the bill which delays the price deregulation of basic service until after December 31, 2013. In the interim, the amendment calls for an investigation into telephone service competition in the state, including optional features that are available and comparable in service, quality, and price to that provided by the incumbent local exchange carriers.
“Our amendment lets the Alabama Public Service Commissioners do the jobs they were elected to do. The PSC would look at competition and report to the Legislature on whether consumers have alternatives to turn to if prices charged by AT&T and other carriers are raised too high.
“If the Commission does not find sufficient competition, the Legislature would have the opportunity during the 2013 session to extend the price cap,” Carter said.
Added: April 16, 2009
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8th Legislative Report for the 2009 Regular Session
The Alabama legislature returned to Montgomery this week for a three-day legislative work session. Typically the members meet on Tuesday and Thursday and reserve Wednesday for committee day. However, to expedite their pace, the legislature decided to meet all three days this week.
For a third consecutive legislative day, the members of the Senate started the day debating the AT&T deregulation, but due to a filibuster by several members of the Senate, the body adjourned for the day. AARP continues to have major concerns that Alabama lacks significant competition for basic telephone service and we have utilized our Capitol Advocacy Team, our 65,000 E-Activists to oppose this measure. Our national utilities analyst, Janee Breismeister, assists us daily on this complex legislation and has prepared us with powerful amendments as well.
The House of Representatives started the week by debating legislation that would remove state sales tax on food items, but the bill failed to be considered on a procedural vote. Members of the black caucus were upset and used the rest of the day to delay other legislation.
On Wednesday, before starting their 16th legislative day, the House Appropriations committee approved a bill that would set aside $150 million over the next five years from the Oil and Gas reserve fund to bail out the Alabama Prepaid Affordable Tuition Program.
Later that morning, the Lt. Governor along with several members of the House and Senate held a press conference to bring attention to the looming crisis facing the state meals program for seniors. Estimates have our seniors losing over 200,000 meals under the current budget proposals. AARP assisted in orchestrating the press conference and our members helped pack the committee room showing our support of the legislator’s efforts.
With the AT&T deregulation legislation being placed on the House Government Operations committee agenda for Wednesday, AARP wrote the chairman and asked for a public hearing to address our concerns. The Chairman granted our request, but only allowed two minutes of testimony per opponent. In a room packed with AT&T lobbyists, consultants, and employees, AARP had staff and members in attendance to speak against the legislation. Sadly, with a gallant effort by AARP, the bill made it out of committee on a voice vote. We owe a great big special thanks to Capitol Advocacy Team members, Mr. and Mrs. Harold Hammond, Shirlie Jensen, and Gloria Walker for speaking against the bill.
When the members of the House convened for the day, they passed a resolution encouraging Alabama to accept all of the unemployment compensation money available from the federal stimulus package. The members also gave final approval to legislation setting sentencing standards previously approved by the legislature.
In the upper chamber, several members of the Senate continued their filibuster on Wednesday over the AT&T deregulation legislation. After a few members continued their delaying tactics, the Senate decided to adjourn.
On Thursday, the members of the House of Representatives tried to bring the food tax bill up for debate, but again, the procedural vote failed. Every Republican and one Democrat in the House voted against the proposal, but according to the Republicans, they plan to offer their own version next week. The members of the black caucus continued using stalling tactics to prevent passage of other legislation in protest. The House did manage to pass a resolution requiring the governor to give the legislature reports on the spending of federal stimulus funds. Also, the members held a ceremony honoring the Butler High basketball team for winning the state 5A championship.
The Senate started out Thursday morning debating the AT&T deregulation legislation, but decided to carry the bill over after dealing with it for 5 consecutive days. When they return Tuesday, the members will continue the debate over deregulation. The Senate did manage to pass “The Alabama Safe Mortgage Act, which AARP supports and has worked in conjunction with the Alabama Banking Department. This legislation requires testing, licensing and training for mortgage loan originators. The members delayed action on legislation allowing voters in small towns in dry counties to vote to legalize liquor sales. They also delayed action on an anti-smoking bill after several amendments were added in opposition to the measure.
Added: April 7, 2009
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The Alabama Legislature reconvened on Tuesday for their 7th legislative day for the 2009 regular session. Both chambers showed up ready to get down to work from the moment they arrived at the statehouse.
The House of Representatives approved a bill that would allow Alabama Revenue Department to collect severance tax based on the proceeds of the sale of oil and gas. The members passed a measure that would allow the probate judges to redact social security numbers and birth dates from the official records published on the internet. Later in the day, the House passed legislation that allowing officials to charge an individual for using a computer to lure a child for sexual purposes even though the child was an undercover police officer. All of these bills will now go to the Senate for final approval.
In the upper chamber, the Senate passed several measures that would continue the existence of state regulatory boards including the Board of Nursing, the Board of Funeral Service and the Licensure Board for Interpreter and Translators. They also approved legislation extending the Real Estate Appraisers Board and the Assisted Living Administrators Board.
On Wednesday, the Senate Judiciary Committee approved a bill requiring automated external defibrillators to be placed in schools. The Senate Banking and Insurance Committee passed several bills supported by AARP that would improve our Mortgage and Foreclosure laws. The committee voted 6-0 to support SB 249, the Alabama Safe and Fair Enforcement for Mortgage Licensing Act. This bill will establish a system of supervision and enforcement over mortgage loan originators operating in Alabama. The committee also voted 6-0 to approve legislation that would establish a state crime of residential mortgage fraud. The committee approved another measure that would increase the time before a lender can foreclose on a homeowner for not paying their mortgage.
In the House Boards and Commissions Committee, they carried over Senator Quinton Ross’s legislation that would place regulations on commercial tax preparers. The House Judiciary Committee approved a bill requiring legislators to receive ethics training and to make it easier for the commission to initiate its own investigations. The House Health Committee passed HB 565, a measure requiring information on infections in hospitals to be recorded. This legislation would be named in honor of the son of Senate Banking and Insurance Committee, Senator Bobby Denton. Senator Denton’s son passed away at age 30 from an infection after going through surgery for routine knee surgery.
Before the Senate convened on Thursday, the Commerce, Utilities, and Transportation Committee completed a public hearing and passed SB 373, the AT&T deregulation legislation. This legislation would remove the Public Service Commission oversight and allow AT&T to raise rates as high as they wish on basic telephone service starting in 2010. AARP opposes this bill since so many of our members purchase basic telephone service.
When the House convened, the members passed a bill to appropriate $8 million to build a school that was damaged by a tornado in Oakman, Alabama. Also, they passed legislation limiting the liability of owners leasing their land for fishing and hunting and approved legislation that would punish teenagers for causing discipline problems in school by delaying their driver’s license.
The Senate passed over 17 bills on Thursday extending the existence of state regulatory boards including the Board of Physical Therapy, Home Builders Licensure Board, Manufactured Housing Commission, Chiropractic Examiners and Veterinary Medical Examiners.
The House and Senate will return for business on Tuesday, March 3rd.
4th Legislative Report for the 2009 Regular Session
The Alabama Legislature reconvened on Tuesday for their 7th legislative day for the 2009 regular session. Both chambers showed up ready to get down to work from the moment they arrived at the statehouse.
The House of Representatives approved a bill that would allow Alabama Revenue Department to collect severance tax based on the proceeds of the sale of oil and gas. The members passed a measure that would allow the probate judges to redact social security numbers and birth dates from the official records published on the internet. Later in the day, the House passed legislation that allowing officials to charge an individual for using a computer to lure a child for sexual purposes even though the child was an undercover police officer. All of these bills will now go to the Senate for final approval.
In the upper chamber, the Senate passed several measures that would continue the existence of state regulatory boards including the Board of Nursing, the Board of Funeral Service and the Licensure Board for Interpreter and Translators. They also approved legislation extending the Real Estate Appraisers Board and the Assisted Living Administrators Board.
On Wednesday, the Senate Judiciary Committee approved a bill requiring automated external defibrillators to be placed in schools. The Senate Banking and Insurance Committee passed several bills supported by AARP that would improve our Mortgage and Foreclosure laws. The committee voted 6-0 to support SB 249, the Alabama Safe and Fair Enforcement for Mortgage Licensing Act. This bill will establish a system of supervision and enforcement over mortgage loan originators operating in Alabama. The committee also voted 6-0 to approve legislation that would establish a state crime of residential mortgage fraud. The committee approved another measure that would increase the time before a lender can foreclose on a homeowner for not paying their mortgage.
In the House Boards and Commissions Committee, they carried over Senator Quinton Ross’s legislation that would place regulations on commercial tax preparers. The House Judiciary Committee approved a bill requiring legislators to receive ethics training and to make it easier for the commission to initiate its own investigations. The House Health Committee passed HB 565, a measure requiring information on infections in hospitals to be recorded. This legislation would be named in honor of the son of Senate Banking and Insurance Committee, Senator Bobby Denton. Senator Denton’s son passed away at age 30 from an infection after going through surgery for routine knee surgery.
Before the Senate convened on Thursday, the Commerce, Utilities, and Transportation Committee completed a public hearing and passed SB 373, the AT&T deregulation legislation. This legislation would remove the Public Service Commission oversight and allow AT&T to raise rates as high as they wish on basic telephone service starting in 2010. AARP opposes this bill since so many of our members purchase basic telephone service.
When the House convened, the members passed a bill to appropriate $8 million to build a school that was damaged by a tornado in Oakman, Alabama. Also, they passed legislation limiting the liability of owners leasing their land for fishing and hunting and approved legislation that would punish teenagers for causing discipline problems in school by delaying their drivers license.
The Senate passed over 17 bills on Thursday extending the existence of state regulatory boards including the Board of Physical Therapy, Home Builders Licensure Board, Manufactured Housing Commission, Chiropractic Examiners and Veterinary Medical Examiners.
The House and Senate will return for business on Tuesday, March 3rd.
Added: February 27, 2009
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My name is Joan Carter. Thank you for this opportunity to express our comments on SB 373 which would allow price deregulation for basic phone service.
AARP has more than 216,00 members in Alabama, most of whom purchase their residential local telephone service from AT&T, the largest telecommunications provider in the state. AARP opposes those provisions of SB 373 which will completely deregulate the price of basic residential service and optional services, such as call waiting, as of January 2011. Currently, the price of basic local service is capped. This bill would allow AT&T and other incumbent carriers to price stand alone basic service at any level, despite the lack of competitive alternatives for many customers. Our members and others who rely on basic service and who do not want or can’t afford extra bells and whistles are sure to see significant price increases. AARP supports the provisions that would expand the Lifeline phone discount, but we do not agree that these are sufficient to offset the very negative impact of complete price deregulation.
Basic phone service is a necessity
SB 373 will disproportionately impact AARP members and older Alabamans, as well as all lower income households who rely on basic stand alone telephone service. Telephone communication is a basic necessity that allows older people to maintain social contact, preserve health and safety, and gain assistance in an emergency. In fact, people age 65 and older are more likely than any other age group to have traditional wireline telephone service. At the same time, older and lower income households are less likely to be able to have phone service at all. Alabama ranks near the bottom when it comes to the percentage of households with phone service. Just under 92% of Alabama households have phone service, compared with a national average of 95.2%. [1]
There are no comparable alternatives to basic local service
Residential customers have a limited choice of providers—usually the incumbent phone company, the cable TV provider, and if they already subscribe to broadband from the telephone or cable company, internet-based services may be an option.
In the 13 years since Congress passed the Telecommunications Act of 1996, most of the current competitive offerings available to residential customers exist only for consumers who are interested in purchasing a package of multiple services, such as phone service with additional features, video and Internet. Those who rely on stand alone basic service have little or no price comparable options. Yet, here in Alabama as in other states, the incumbent carriers are seeking deregulation of the most basic, barebones service, for which there are no alternatives than the incumbent provider. Lawmakers should be very skeptical of this claim of competitive threats to basic service.
For example, wireless is often cited as a competitive alternative to local phone service, based on the growth of the service. While some wireless carriers may be marketing their service as a competitive local service alternative, the high majority of consumers use wireless much more as a supplement to, not an alternative for wireline local service. Although the number of homes that have “cut the cord” and rely totally on wireless service is growing, those who rely on wireless are primarily younger households.
Among young adults age 25 to 29, 35.7 percent live in households with only wireless phones. Nevertheless, the vast majority of older adults continue to depend on their landline phone. Indeed, the older the phone user, the less likely they were to do away with the wire-line phone. Only 9.2 percent of adults aged 45 to 64 years and 2.8 percent of those 65 and older did not use a landline. Further, those 95.6% of adults aged 65 and older who have both a wireless phone and landline report receiving most of their calls on the landline. [2] It’s also important to bear in mind that, in contrast to basic local telephone service, wireless service is generally more expensive, the service quality is not nearly as good, and consumers are charged for incoming as well as outgoing calls.
Similarly, Voice over Internet Protocol (VoIP) service is not a true competitor to basic local phone service either, particularly because the service is not comparable. VoIP is inherently more expensive than local telephone service, since a consumer must first have a computer and pay for a monthly broadband connection in order to subscribe to VoIP. Consumers have to put up with additional hassles that are not an issue for wireline subscribers, such as the risk that VoIP service will not function during a power outage, a nuisance that does not happen with wireline service.
Finally, wireline service provided by competitive local exchange service providers is also not a viable option for those who seek only basic service. Competitors typically offer residential customers only high priced packages of services or perhaps high cost pre-paid service, such as services that had to be purchased through rent to own centers. These are not at all comparable to basic service offerings of AT&T.
The deregulation permitted in this bill is not justified by current market conditions and will have a detrimental impact on consumers who are on lower and fixed incomes. If this bill passes it will allow incumbent carriers to price basic service and features such as call waiting and Caller ID at any level, despite the lack of competitive alternatives. Our members and others who rely on basic service are sure to see significant price increases. Providers currently have complete pricing flexibility on packages, which is where consumers can find competitive alternatives. The price cap on basic service provides an affordable option for service for those who cannot afford the expensive packages. SB 373 will remove this affordable option.
Lifeline Provisions are necessary, but no substitute for continued protection of basic service
The bill also seeks to increase enrollment in the Lifeline discount program through a mechanism called “automatic enrollment” which has been successfully used in other states to enroll existing customers who are eligible for the discount. Data shows that only 10-20% of the eligible customers in Alabama are receiving the Lifeline discount. AARP strongly supports automatic enrollment. With automatic enrollment Alabama could increase its enrollment of eligible Lifeline participants and receive additional federal universal service funds that could help make phone service more affordable for our neediest consumers.
However, in Alabama, customers are eligible for Lifeline if their household income does not exceed 135% of the federal poverty level. In 2009, a family income of $24,719 for a family of four is equal to 135% of the federal poverty level. Thus, a large number of lower income households will not qualify for Lifeline in Alabama. These are the very households who will be most harmed by escalating prices for deregulated basic phone service.
Even for those customers who do receive the Lifeline discount, SB 373 will result in a rate increase. In Alabama the Lifeline discount is $13.50 per month. This discount will not increase as the price of basic service rises. Thus, consumers who are very low income and on Lifeline will experience net increases in the monthly phone bills.
Conclusion:
This is a bill whose time has not yet come. AARP asks that you consider the actual level of competition in the market, particularly for stand alone basic local service. Consumers will be best served by rejecting the deregulatory provisions of this bill and continuing capped rates for basic local service. AARP supports efforts to implement automatic enrollment for clients of social service programs into the Lifeline program, but we do not agree that expanded Lifeline mitigates the very negative impact that price deregulation will have on Alabama’s low income and senior households.
Thank you.
[1] Belinfante, Alexander. 2008. Telephone Subscribership in the United States (Data throughMarch 2008). Federal Communications Commission, Wireline Competition Bureau, Industry Analysis Division. Available at: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-284923A1.pdf
[2] Blumberg SJ, Luke JV. Wireless substitution: Early release of estimates based on data from the National Health Interview Survey, July – June 2008. National Center for Health Statistics. December 10 , 2007.
Added: February 27, 2009
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Four Alabamians were recently appointed to the AARP Executive Council, the group given the task of providing big-picture thinking about the association’s vision and mission and allotting AARP resources to carry out the state plan.
Bob Boothe of Dothan has almost 25 years of experience working with professional organizations, most recently as president and CEO of Dr. J. Robert Boothe Jr. and Associates, a governmental relations firm. He has also been interim president of Chattahoochee Valley Community College and Opelika State Technical College{, and was assistant to the chancellor of the Alabama College System}. Boothe holds a doctorate in law from the University of West Alabama.
Deatsville resident Jack Bradford retired from the University of Alabama at Birmingham, where he was director of development and training{, providing training courses to the university’s 16,500 employees}. Since retiring, he has served on the boards of directors for Leadership Elmore County and the Millbrook Chamber of Commerce. Bradford holds a doctorate in zoology from the University of Missouri at Columbia.
Gwen Lipscomb of Montgomery presently serves as director of the Office of Minority Health at the Alabama Department of Public Health. In that role, she works to provide effective health services for the state’s underserved ethnic and racial populations. A health professional for the past 40 years, Lipscomb earned one bachelor’s degree from Georgia State University, and a second along with a master’s degree from Troy State University.
For the past 17 years before retiring, Connie Walden of Killen worked with the Alabama Legislature and other government agencies, most recently as director of Government Relations for the University of North Alabama. Walden also helped found the group Caring for Elderly and Disabled (CFED), which pushed for the rights of individuals to choose alternatives to a nursing home. She holds a business administration degree from Larimore Business College.
Added: January 28, 2009
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