H-827                _______________________________________________

                                                    HOUSE BILL NO. 717

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Todd, Isaacson, D. Nelson, Schmidt, Unsoeld, Long, Van Luven, Cole, Crane, Brough, Allen, Thomas and Wineberry

Read first time 2/8/85 and referred to Committee on Energy & Utilities.

AN ACT Relating to pricing of local telephone service; adding a new section to chapter 80.36 RCW; creating a new section; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 80.36 RCW to read as follows:

          (1) The commission shall not approve a tariff filed by a telephone company which imposes mandatory local measured service on any customer or class of customers.

          (2) The commission shall not approve a tariff filed by a telephone company which permits optional local measured service unless:

          (a) The rate proposed for optional local measured service is sufficient to cover all costs associated with the service, including the costs of measuring and billing; and

          (b) The rate differential between the optional local measured service rate and the flat rate is based on verifiable differences in the costs of providing those services.

          (3) For the purposes of this section, "local measured service" means a rate structure for telephone service which requires a telephone customer to pay for local telephone calls based on one or more of the following elements:  Frequency of calls, duration, time of day, or distance.

          (4) This section does not apply to land, air, or marine mobile service, or any like service which has traditionally been offered on a mandatory measured service basis.

          (5) This section shall expire June 30, 1990.

NEW SECTION. Sec. 2.     The commission shall study the need for, design of, and alternative funding mechanisms for lifeline telephone rates for low-income subscribers.  The commission shall report its findings to the legislature by November 1, 1985.  In performing its study, the commission shall seek the cooperation of the appropriate legislative committees as well as representatives of the telephone industry, business interests, consumer groups, senior citizen groups, community service groups, social service agencies, and all other interested parties.

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.