BILL REQ. #:  Z-1054.3 

Read first time 01/28/2004.   Referred to Committee on Technology, Telecommunications & Energy.

     AN ACT Relating to the Washington telephone assistance program; amending RCW 80.36.410, 80.36.420, 80.36.430, 80.36.450, 80.36.460, 80.36.470, 80.36.475, and 80.36.005; adding new sections to chapter 80.36 RCW; repealing RCW 80.36.440; and providing an effective date.

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

Sec. 1   RCW 80.36.410 and 2003 c 134 s 2 are each amended to read as follows:
     (1) The legislature finds that universal telephone service is an important policy goal of the state. The legislature further finds that: (a) Recent changes in the telecommunications industry((, such as federal access charges,)) raise concerns about the ability of low-income persons to continue to afford access to ((local exchange telephone)) basic telecommunications service; and (b) many low-income persons making the transition to independence from receiving supportive services through community agencies do not qualify for economic assistance from the department of social and health services.
     (2) Therefore, the legislature finds that: (a) It is in the public interest to take steps to mitigate the effects of these changes on low-income persons; and (b) advances in telecommunications technologies, such as community service voice mail provide new and economically efficient ways to secure many of the benefits of universal service to low-income persons who are not customers of ((local exchange telephone)) basic telecommunications service.
     (3) The legislature also finds that in providing assistance with telecommunications needs to low-income persons, the means employed should be competitively and technologically neutral; that is, the law should neither favor any carrier or technology nor disfavor any carrier or technology.

Sec. 2   RCW 80.36.420 and 2003 c 134 s 3 are each amended to read as follows:
     The Washington telephone assistance program shall be available to participants of programs set forth in RCW 80.36.470 who receive basic telecommunications service from a telecommunications carrier designated pursuant to section 3 of this act. Assistance shall consist of the following components:
     (1) A discount on service connection fees ((of fifty percent or more)) as set forth in RCW 80.36.460.
     (2) A waiver of deposit requirements on ((local exchange)) basic telecommunications service, as set forth in RCW 80.36.460.
     (3) A ((discounted flat rate service)) discount on the monthly charges for ((local exchange)) basic telecommunications service, which shall be subject to the following conditions:
     (a) The commission shall by order or rule establish ((a single telephone assistance rate for all local exchange companies operating in the state of Washington. The telephone assistance rate shall include any federal end user charges and any other charges necessary to obtain local exchange service)) the amount of the monthly discount. The commission may establish different discounts for different geographic areas or service types if the resulting schedule of discounts is competitively and technologically neutral.
     (b) The commission shall, in establishing the ((telephone assistance rate)) monthly discount, consider all ((charges for local exchange service, including federal end user charges, mileage charges, extended area service, and any other)) charges necessary to obtain ((local exchange)) basic telecommunications service.
     (((c) The telephone assistance rate shall only be available to eligible customers subscribing to the lowest priced local exchange flat rate service, where the lowest priced local exchange flat rate service, including any federal end user charges and any other charges necessary to obtain local exchange service, is greater than the telephone assistance rate.
     (d) The cost of providing the service shall be paid, to the maximum extent possible, by a waiver of all or part of federal end user charges and, to the extent necessary, from the telephone assistance fund created by RCW 80.36.430.))
     (4) A discount on a community service voice mailbox that provides recipients with (a) an individually assigned telephone number; (b) the ability to record a personal greeting; and (c) a secure private security code to retrieve messages.

NEW SECTION.  Sec. 3   A new section is added to chapter 80.36 RCW to read as follows:
     (1) The commission must on request or may on its own motion designate a telecommunications carrier that meets the requirements of this section as an eligible telecommunications carrier for a service area designated by the commission. The commission may designate more than one telecommunications carrier as eligible telecommunications carriers for a service area. Before designating an additional eligible telecommunications carrier for an area served by a rural telephone company, as defined by 47 U.S.C. 153(37), the commission must find that the designation is in the public interest.
     (2) An eligible telecommunications carrier must: (a) Offer basic telecommunications service and the discounts and waivers established under RCW 80.36.420 throughout the service area for which it is designated by the commission; and (b) advertise the availability and charges of such services using media of general distribution.
     (3) An eligible telecommunications carrier may relinquish its designation upon reasonable notice to the commission and its program participants. The commission may after notice and for good cause revoke the designation of an eligible telecommunications carrier.
     (4) The commission must, to the extent reasonably feasible, coordinate the designation of eligible telecommunications carriers under this section with its designation of eligible telecommunications carriers, pursuant to 47 U.S.C. 214(e), for the federal universal service program.

Sec. 4   RCW 80.36.430 and 2003 c 134 s 4 are each amended to read as follows:
     (((1))) The Washington telephone assistance program shall be funded by a telephone assistance excise tax on all switched access lines and by funds from any federal government or other programs for this purpose. Switched access lines are defined in RCW 82.14B.020. The telephone assistance excise tax shall be applied equally to all residential and business access lines not to exceed fourteen cents per month. The telephone assistance excise tax shall be separately identified on each ratepayer's bill as the "Washington telephone assistance program." All money collected from the telephone assistance excise tax shall be transferred to a telephone assistance fund administered by the ((department)) commission.
     (((2) Local exchange companies shall bill the fund for their expenses incurred in offering the telephone assistance program, including administrative and program expenses. The department shall disburse the money to the local exchange companies. The department is exempted from having to conclude a contract with local exchange companies in order to effect this reimbursement. The department shall recover its administrative costs from the fund. The department may specify by rule the range and extent of administrative and program expenses that will be reimbursed to local exchange companies.
     (3) The department shall enter into an agreement with the department of community, trade, and economic development for an amount not to exceed eight percent of the prior fiscal year's total revenue for the administrative and program expenses of providing community service voice mail services. The community service voice mail service may include toll-free lines in community action agencies through which recipients can access their community service voice mailboxes at no charge.))

NEW SECTION.  Sec. 5   A new section is added to chapter 80.36 RCW to read as follows:
     (1) Each eligible telecommunications carrier may recover from the telephone assistance program fund its cost of providing the program benefits as described in RCW 80.36.420 and administering the program. Each carrier must account separately for costs associated with the deposit waiver, the discount on connection charges, the discount on monthly charges, and program administration. The commission shall disburse the money to an eligible telecommunications carrier upon adequate evidence submitted by the eligible telecommunications carrier that it has provided qualifying service.
     (2) Each eligible telecommunications carrier must make reasonable efforts to obtain available funds for the provision of basic telecommunications service to low-income households through the federal universal service program. An eligible telecommunications carrier shall not seek to recover from the telephone assistance program fund any costs that are eligible for recovery through the federal universal service program.
     (3) The commission is exempted from having to conclude a contract with eligible telecommunications carriers to effect the reimbursement provided for in this section. The commission shall recover its costs to administer the Washington telephone assistance program from the fund. The commission may specify by rule the range and extent of program expenses that will be reimbursed to eligible telecommunications carriers.
     (4) The commission shall enter into an agreement with the department of community, trade, and economic development for an amount not to exceed eight percent of the prior fiscal year's total revenue for the administrative and program expenses of providing community service voice mail services. The community service voice mail service may include toll-free lines in community action agencies through which recipients can access their community service voice mailboxes at no charge.

Sec. 6   RCW 80.36.450 and 2003 c 134 s 6 are each amended to read as follows:
     The Washington telephone assistance program shall limit reimbursement to one residential ((switched access line)) basic telecommunications service from one eligible telecommunications carrier per eligible household((,)) or one discounted community service voice mailbox per eligible person. Program participants may subscribe to other services such as long distance service or bundled services, however, only they are responsible for all additional charges for such services.

Sec. 7   RCW 80.36.460 and 2003 c 134 s 7 are each amended to read as follows:
     ((Local exchange companies shall waive deposits on local exchange service for eligible subscribers and)) (1) Eligible telecommunications carriers must waive for Washington telephone assistance program participants any requirement for a customer deposit that would otherwise be necessary to obtain basic telecommunications service. Eligible telecommunications carriers may apply customary deposit requirements for any service other than basic telecommunications service provided to the program participant.
     (2) Eligible telecommunications carriers must provide a ((fifty percent)) discount on the company's customary charge for commencing telecommunications service for ((eligible subscribers. Part or all of the remaining fifty percent of service connection fees may be paid by funds from federal government or other programs for this purpose. The commission or other appropriate agency shall make timely application for any available federal funds. The remaining portion of the connection fee to be paid by the subscriber shall be expressly payable by installment fees spread over a period of months. A subscriber may, however, choose to pay the connection fee in a lump sum. Costs associated with the waiver and discount shall be accounted for separately and recovered from the telephone assistance fund)) Washington telephone assistance program participants. The commission must establish by order or rule the amount of the discount. The eligible telecommunications carrier must provide the program participant with the option to pay the discounted connection fee in installments over a period of months.

Sec. 8   RCW 80.36.470 and 2003 c 134 s 8 are each amended to read as follows:
     (1) Adult recipients of ((department-administered)) programs administered by the department of social and health services for the financially needy which provide continuing financial or medical assistance, food stamps, or supportive services to persons in their own homes are eligible for participation in the telephone assistance program. The department of social and health services shall notify the participants of their eligibility.
     (2) Participants in community service voice mail programs are eligible for participation in services available under RCW 80.36.420 (1), (2), and (3) after completing use of community service voice mail services. Eligibility shall be for a period including the remainder of the current service year and the following service year. Community agencies shall notify the department of social and health services of participants eligible under this subsection.
     (3) The department of social and health services must maintain a list of eligible participants and must make the list readily available to the commission. Eligible telecommunications carriers and the commission shall use the information only to operate and administer the Washington telephone assistance program. The commission may enter into an agreement with the department of social and health services to reimburse the department from the telephone assistance fund for reasonable costs incurred in providing the eligibility information required by this subsection.

Sec. 9   RCW 80.36.475 and 2003 c 134 s 9 are each amended to read as follows:
     The ((department)) commission shall report to the appropriate committees of the house of representatives and the senate by December 1 of each year on the status of the Washington telephone assistance program. The report shall include the number of participants by qualifying social service programs receiving benefits from the telephone assistance program and the type of benefits participants receive. The report shall also include a description of the eligible telecommunications carriers designated to offer the program, the geographical distribution of participants, the program's annual revenue and expenditures, and any recommendations for legislative action.

Sec. 10   RCW 80.36.005 and 2003 c 134 s 1 are each amended to read as follows:
     The definitions in this section apply throughout RCW 80.36.410 through 80.36.475, unless the context clearly requires otherwise.
     (1) "Community agency" means local community agencies that administer community service voice mail programs.
     (2) "Community service voice mail" means a computerized voice mail system that provides low-income recipients with: (a) An individually assigned telephone number; (b) the ability to record a personal greeting; and (c) a private security code to retrieve messages.
     (3) (("Department" means the department of social and health services.
     (4))) "Service year" means the period between July 1st and June 30th.
     (((5))) (4) "Community action agency" means local community action agencies or local community service agencies designated by the department of community, trade, and economic development under chapter 43.63A RCW.
     (5) "Telecommunications carrier" has the same meaning as defined in 47 U.S.C. Sec. 153(44).
     (6) "Basic telecommunications services" means the following services:
     (a) Single-party service;
     (b) Voice grade access to the public switched network;
     (c) Support for local usage;
     (d) Dual tone multifrequency signaling (touch-tone);
     (e) Access to emergency services (911);
     (f) Access to operator services;
     (g) Access to interexchange services;
     (h) Access to directory assistance; and
     (i) Toll limitation services.

NEW SECTION.  Sec. 11   RCW 80.36.440 (Washington telephone assistance program -- Rules) and 2003 c 134 s 5, 1990 c 170 s 4, & 1987 c 229 s 6 are each repealed.

NEW SECTION.  Sec. 12   This act takes effect July 1, 2004.