PARRIS N. GLENDENING, Governor                              Ch. 629

[(5)] (4) "900", "976", "915", and other "900" type [telecommunications]
INFORMATION OR ENTERTAINMENT service;

[(6) custom calling service provided in connection with basic telephone
service;]

[(7)] (5) a telephone answering service;

[(8)] (6) pay per view television service THAT IS PROVIDED BY A CABLE
OPERATOR OVER A CABLE SYSTEM PURSUANT TO A FRANCHISE GRANTED BY A
LOCAL GOVERNMENT;

[(9)] (7)     credit reporting;

[(10)] (8)   a security service, including:

(i)     a detective, guard, or armored car service; and

(ii) a security systems service; or

[(11)](9) Internet access service by which a connection is provided between
a computer and the Internet.

SECTION 3. AND BE IT FURTHER ENACTED, That:

(1) The Public Service Commission shall require a reduction in local
telephone rates to be effective January 1, 1998, to fully reflect the elimination of the 2%
public service company franchise tax that was formerly included in the rates for the
telephone company; and

(2) Notwithstanding the provisions of § 8-409 of the Tax—General Article
as enacted under Section 1 of this Act, a local telephone service provider may not add the
public service company franchise tax to its charge to the customer for local telephone
service until the reduction in local telephone rates required under this section is effective.

SECTION 2. AND BE IT FURTHER ENACTED, That:

(a)     The Public Service Commission shall determine and require a reduction in
telephone rates to be effective January 1, 1998, to reflect the treatment of the 2% public
service company franchise tax pursuant to § 8-409 of the Tax - General Article as enacted
under Section 1 of this Act, the cost of which was formerly included in the telephone
rates;

(b)     Notwithstanding the provisions of § 8-409 of the Tax - General Article as
enacted under Section 1 of this Act, a local telephone service provider may not add the
public service company franchise tax to its charge to the customer for local telephone
service until the reduction in local telephone rates required under subsection (a) of this
section is effective; and

(c)     Beginning with the first monthly billing showing the public service company
franchise tax as a line item on the customer bill and for the next three billings thereafter,
a local telephone service provider shall provide the customer with information in the

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