BILL REQ. #:  S-0577.3 

Read first time 01/30/13.   Referred to Committee on Energy, Environment & Telecommunications.

     AN ACT Relating to telecommunications tax parity; amending RCW 82.14B.040, 82.14B.042, 82.14B.030, 82.14B.200, 80.36.430, and 43.20A.725; and reenacting and amending RCW 82.14B.020 and 82.08.0289.

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

Sec. 101   RCW 82.14B.020 and 2010 1st sp.s. c 19 s 2 are each reenacted and amended to read as follows:
     As used in this chapter:
     (1) "Consumer" means a person who purchases a prepaid wireless telecommunications service in a retail transaction.
     (2) "Emergency services communication system" means a multicounty or countywide communications network, including an enhanced 911 emergency communications system, which provides rapid public access for coordinated dispatching of services, personnel, equipment, and facilities for police, fire, medical, or other emergency services.
     (((2))) (3) "Enhanced 911 emergency communications system" means a public communications system consisting of a network, database, and on-premises equipment that is accessed by dialing or accessing 911 and that enables reporting police, fire, medical, or other emergency situations to a public safety answering point. The system includes the capability to selectively route incoming 911 voice or data to the appropriate public safety answering point that operates in a defined 911 service area and the capability to automatically display the name, address, and telephone number of incoming 911 voice or data at the appropriate public safety answering point. "Enhanced 911 emergency communications system" includes the modernization to next generation 911 systems.
     (((3))) (4) "Interconnected voice over internet protocol service" has the same meaning as provided by the federal communications commission in 47 C.F.R. Sec. 9.3 on January 1, 2009, or a subsequent date determined by the department.
     (((4))) (5) "Interconnected voice over internet protocol service line" means an interconnected voice over internet protocol service that offers an active telephone number or successor dialing protocol assigned by a voice over internet protocol provider to a voice over internet protocol service customer that has inbound and outbound calling capability, which can directly access a public safety answering point when such a voice over internet protocol service customer has a place of primary use in the state.
     (((5))) (6) "Local exchange company" has the meaning ascribed to it in RCW 80.04.010.
     (((6))) (7) "Place of primary use" means the street address representative of where the subscriber's use of the radio access line or interconnected voice over internet protocol service line occurs, which must be:
     (a) The residential street address or primary business street address of the subscriber; and
     (b) In the case of radio access lines, within the licensed service area of the home service provider.
     (((7))) (8) "Prepaid wireless telecommunications service" means a telecommunications service that provides the right to use mobile wireless service as well as other nontelecommunications services including the download of digital products delivered electronically, content, and ancillary services, which must be paid for in full in advance and sold in predetermined units or dollars.
     (9) "Private telecommunications system" has the meaning ascribed to it in RCW 80.04.010.
     (((8))) (10) "Radio access line" means the telephone number assigned to or used by a subscriber for two-way local wireless voice service available to the public for hire from a radio communications service company. Radio access lines include, but are not limited to, radio-telephone communications lines used in cellular telephone service, personal communications services, and network radio access lines, or their functional and competitive equivalent. Radio access lines do not include lines that provide access to one-way signaling service, such as paging service, or to communications channels suitable only for data transmission, or to nonlocal radio access line service, such as wireless roaming service, or to a private telecommunications system.
     (((9))) (11) "Radio communications service company" has the meaning ascribed to it in RCW 80.04.010, except that it does not include radio paging providers. It does include those persons or entities that provide commercial mobile radio services, as defined by 47 U.S.C. Sec. 332(d)(1), and both facilities-based and nonfacilities-based resellers.
     (((10))) (12) "Retail transaction" means the purchase of prepaid wireless telecommunications service from a seller for any purpose other than resale.
     (13) "Seller" means a person who sells prepaid wireless telecommunications service to another person.
     (14)(a) "Subscriber" means, except as provided otherwise in (b) of this subsection, the retail purchaser of telecommunications service, a competitive telephone service, or interconnected voice over internet protocol service.
     (((11))) (b) The term "subscriber" does not include a consumer, as defined in this section.
     (15) "Switched access line" means the telephone service line which connects a subscriber's main telephone(s) or equivalent main telephone(s) to the local exchange company's switching office.

Sec. 102   RCW 82.14B.040 and 2010 1st sp.s. c 19 s 6 are each amended to read as follows:
     Subject to the enactment into law of the 2013 amendments to RCW 82.08.0289 in section 201 of this act, the 2013 amendments to RCW 80.36.430 in section 301 of this act, and the 2013 amendments to RCW 43.20A.725 in section 302 of this act:
     (1) Except as provided otherwise in subsection (2) of this section:
     (a) The state enhanced 911 excise tax and the county enhanced 911 excise tax on switched access lines must be collected from the subscriber by the local exchange company providing the switched access line.
     (((2))) (b) The state enhanced 911 excise tax and the county enhanced 911 excise tax on radio access lines must be collected from the subscriber by the radio communications service company, including those companies that resell radio access lines, providing the radio access line to the subscriber, and the seller of prepaid wireless telecommunications service.
     (((3))) (c) The state and county enhanced 911 excise taxes on interconnected voice over internet protocol service lines must be collected from the subscriber by the interconnected voice over internet protocol service company providing the interconnected voice over internet protocol service line to the subscriber.
     (((4))) (d) The amount of the tax must be stated separately on the billing statement which is sent to the subscriber.
     (2)(a) The state enhanced 911 excise tax and the county enhanced 911 excise tax must be collected by the seller of a prepaid wireless telecommunications service for each retail transaction occurring in this state at the point of sale. Such tax must be collected from those persons who are taxable by the state under chapter 82.08 RCW. For purposes of this subsection (2), the retail transaction occurs in this state if it is sourced to this state under the provisions of RCW 82.32.520(3)(c).
     (b) All administrative provisions in chapters 82.08 and 82.32 RCW applicable to sales taxes are also applicable to the administration, levy, collection, and remittance of the tax imposed under this subsection (2).
     (c) The department must transfer all tax proceeds remitted by a seller under this subsection (2) as provided in RCW 82.14B.030.
     (d) When practicable, the amount of the tax imposed under this subsection (2) must be separately stated on an invoice, receipt, or other similar document that is provided to the consumer by the seller. When a separate disclosure to the consumer is not practicable, the seller may prominently display a sign notifying consumers of the tax.

Sec. 103   RCW 82.14B.042 and 2010 1st sp.s. c 19 s 7 are each amended to read as follows:
     Subject to the enactment into law of the 2013 amendments to RCW 82.08.0289 in section 201 of this act, the 2013 amendments to RCW 80.36.430 in section 301 of this act, and the 2013 amendments to RCW 43.20A.725 in section 302 of this act:
     (1) Except as provided otherwise in subsection (2) of this section:
     (a) The state and county enhanced 911 excise taxes imposed by this chapter must be paid by the subscriber or consumer to the local exchange company providing the switched access line, the radio communications service company providing the radio access line, the seller of prepaid wireless telecommunications service, or the interconnected voice over internet protocol service company providing the interconnected voice over internet protocol service line. Each local exchange company, each radio communications service company, each seller of prepaid wireless telecommunications service, and each interconnected voice over internet protocol service company must collect from the subscriber the full amount of the taxes payable. The state and county enhanced 911 excise taxes required by this chapter to be collected by a company are deemed to be held in trust by the company until paid to the department. Any local exchange company, radio communications service company, seller of prepaid wireless telecommunications service, or interconnected voice over internet protocol service company that appropriates or converts the tax collected to its own use or to any use other than the payment of the tax to the extent that the money collected is not available for payment on the due date as prescribed in this chapter is guilty of a gross misdemeanor((.));
     (((2))) (b) If any local exchange company, radio communications service company, seller of prepaid wireless telecommunications service, or interconnected voice over internet protocol service company fails to collect the state or county enhanced 911 excise tax or, after collecting the tax, fails to pay it to the department in the manner prescribed by this chapter, whether such failure is the result of its own act or the result of acts or conditions beyond its control, the company is personally liable to the state for the amount of the tax, unless the company has taken from the buyer in good faith documentation, in a form and manner prescribed by the department, stating that the buyer is not a subscriber or consumer or is otherwise not liable for the state or county enhanced 911 excise tax((.));
     (((3))) (c) The amount of tax, until paid by the subscriber to the local exchange company, the radio communications service company, the interconnected voice over internet protocol service company, or to the department, constitutes a debt from the subscriber to the company. Any company that fails or refuses to collect the tax as required with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any subscriber who refuses to pay any tax due under this chapter is guilty of a misdemeanor. The state and county enhanced 911 excise taxes required by this chapter to be collected by the local exchange company, radio communications service company, or interconnected voice over internet protocol service company must be stated separately on the billing statement that is sent to the subscriber((.)); and
     (((4))) (d) If a subscriber or consumer has failed to pay to the local exchange company, radio communications service company, seller of prepaid wireless telecommunications service, or interconnected voice over internet protocol service company the state or county enhanced 911 excise taxes imposed by this chapter and the company has not paid the amount of the tax to the department, the department may, in its discretion, proceed directly against the subscriber or consumer for collection of the tax, in which case a penalty of ten percent may be added to the amount of the tax for failure of the subscriber or consumer to pay the tax to the company, regardless of when the tax is collected by the department. Tax under this chapter is due as provided under RCW 82.14B.061.
     (2) The state and county enhanced 911 excise taxes collected on the retail transaction of a prepaid wireless telecommunications service under RCW 82.14B.040(2), must be paid and collected as provided in RCW 82.14B.040(2).

Sec. 104   RCW 82.14B.030 and 2010 1st sp.s. c 19 s 3 are each amended to read as follows:
     Subject to the enactment into law of the 2013 amendments to RCW 82.08.0289 in section 201 of this act, the 2013 amendments to RCW 80.36.430 in section 301 of this act, and the 2013 amendments to RCW 43.20A.725 in section 302 of this act:
     (1) The legislative authority of a county may impose a county enhanced 911 excise tax on the use of switched access lines in an amount not exceeding seventy cents per month for each switched access line. The amount of tax must be uniform for each switched access line. Each county must provide notice of the tax to all local exchange companies serving in the county at least sixty days in advance of the date on which the first payment is due. The tax imposed under this subsection must be remitted to the department by local exchange companies on a tax return provided by the department. The tax must be deposited in the county enhanced 911 excise tax account as provided in RCW 82.14B.063.
     (2) The legislative authority of a county may also impose a county enhanced 911 excise tax on the use of radio access lines: (a) By subscribers whose place of primary use is located within the county in an amount not exceeding seventy cents per month for each radio access line; and (b) by consumers whose retail transaction occurs within the county in an amount not exceeding seventy cents per retail transaction. The amount of tax must be uniform for each radio access line. The county must provide notice of the tax to all radio communications service companies serving in the county at least sixty days in advance of the date on which the first payment is due. The tax imposed under this section must be remitted to the department by radio communications service companies, including those companies that resell radio access lines and sellers of prepaid wireless telecommunications services, on a tax return provided by the department. The tax must be deposited in the county enhanced 911 excise tax account as provided in RCW 82.14B.063.
     (3)(a) The legislative authority of a county may impose a county enhanced 911 excise tax on the use of interconnected voice over internet protocol service lines in an amount not exceeding seventy cents per month for each interconnected voice over internet protocol service line. The amount of tax must be uniform for each line and must be levied on no more than the number of voice over internet protocol service lines on an account that are capable of simultaneous unrestricted outward calling to the public switched telephone network.
     (b) The interconnected voice over internet protocol service company must use the place of primary use of the subscriber to determine which county's enhanced 911 excise tax applies to the service provided to the subscriber.
     (c) The tax imposed under this section must be remitted to the department by interconnected voice over internet protocol service companies on a tax return provided by the department.
     (d) The tax must be deposited in the county enhanced 911 excise tax account as provided in RCW 82.14B.063.
     (e) To the extent that a local exchange carrier and an interconnected voice over internet protocol service company contractually jointly provide a single service line, only one service company is responsible for remitting the enhanced 911 excise taxes, and nothing in this section precludes service companies who jointly provide service from agreeing by contract which of them ((shall)) must remit the taxes collected.
     (4) Counties imposing a county enhanced 911 excise tax must provide an annual update to the enhanced 911 coordinator detailing the proportion of their county enhanced 911 excise tax that is being spent on:
     (a) Efforts to modernize their existing enhanced 911 communications system; and
     (b) Enhanced 911 operational costs.
     (5) A state enhanced 911 excise tax is imposed on all switched access lines in the state. The amount of tax may not exceed twenty-five cents per month for each switched access line. The tax must be uniform for each switched access line. The tax imposed under this subsection must be remitted to the department by local exchange companies on a tax return provided by the department. Tax proceeds must be deposited by the treasurer in the enhanced 911 account created in RCW 38.52.540.
     (6) A state enhanced 911 excise tax is imposed on all radio access lines used: (a) By subscribers whose place of primary use is located within the state in an amount of twenty-five cents per month for each radio access line; and (b) by consumers whose retail transaction occurs within the state in an amount not exceeding twenty-five cents per retail transaction. The tax must be uniform for each radio access line. The tax imposed under this section must be remitted to the department by radio communications service companies, including those companies that resell radio access lines, on a tax return provided by the department. Tax proceeds must be deposited by the treasurer in the enhanced 911 account created in RCW 38.52.540. The tax imposed under this section is not subject to the state sales and use tax or any local tax.
     (7) A state enhanced 911 excise tax is imposed on all interconnected voice over internet protocol service lines in the state. The amount of tax may not exceed twenty-five cents per month for each interconnected voice over internet protocol service line whose place of primary use is located in the state. The amount of tax must be uniform for each line and must be levied on no more than the number of voice over internet protocol service lines on an account that are capable of simultaneous unrestricted outward calling to the public switched telephone network. The tax imposed under this subsection must be remitted to the department by interconnected voice over internet protocol service companies on a tax return provided by the department. Tax proceeds must be deposited by the treasurer in the enhanced 911 account created in RCW 38.52.540.
     (8) For calendar year 2011, the taxes imposed by subsections (5) and (7) of this section must be set at their maximum rate. By August 31, 2011, and by August 31st of each year thereafter, the state enhanced 911 coordinator must recommend the level for the next year of the state enhanced 911 excise tax imposed by subsections (5) and (7) of this section, based on a systematic cost and revenue analysis, to the utilities and transportation commission. The commission must by the following October 31st determine the level of the state enhanced 911 excise taxes imposed by subsections (5) and (7) of this section for the following year.

Sec. 105   RCW 82.14B.200 and 2010 1st sp.s. c 19 s 12 are each amended to read as follows:
     Subject to the enactment into law of the 2013 amendments to RCW 82.08.0289 in section 201 of this act, the 2013 amendments to RCW 80.36.430 in section 301 of this act, and the 2013 amendments to RCW 43.20A.725 in section 302 of this act:
     (1) Unless a seller, local exchange company, radio communications service company, or interconnected voice over internet protocol service company has taken from the buyer documentation, in a form and manner prescribed by the department, stating that the buyer is not a subscriber, consumer, or is otherwise not liable for the tax, the burden of proving that a sale of the use of a switched access line, radio access line, or interconnected voice over internet protocol service line was not a sale to a subscriber, consumer, or was not otherwise subject to the tax is upon the person who made the sale.
     (2) If a seller, local exchange company, radio communications service company, or interconnected voice over internet protocol service company does not receive documentation, in a form and manner prescribed by the department, stating that the buyer is not a subscriber, consumer, or is otherwise not liable for the tax at the time of the sale, have such documentation on file at the time of the sale, or obtain such documentation from the buyer within a reasonable time after the sale, the seller, local exchange company, radio communications service company, or interconnected voice over internet protocol service company remains liable for the tax as provided in RCW 82.14B.042, unless the seller, local exchange company, radio communications service company, or interconnected voice over internet protocol service company can demonstrate facts and circumstances according to rules adopted by the department that show the sale was properly made without payment of the state or county enhanced 911 excise tax.
     (3) The penalty imposed by RCW 82.32.291 may not be assessed on state or county enhanced 911 excise taxes due but not paid as a result of the improper use of documentation stating that the buyer is not a subscriber or consumer or is otherwise not liable for the state or county enhanced 911 excise tax. This subsection does not prohibit or restrict the application of other penalties authorized by law.

Sec. 201   RCW 82.08.0289 and 2007 c 6 s 1006 and 2007 c 6 s 1005 are each reenacted and amended to read as follows:
     Subject to the enactment into law of the 2013 amendments to RCW 82.14B.040 in section 102 of this act, the 2013 amendments to RCW 82.14B.042 in section 103 of this act, the 2013 amendments to RCW 82.14B.030 in section 104 of this act, the 2013 amendments to RCW 82.14B.200 in section 105 of this act, the 2013 amendments to RCW 80.36.430 in section 301 of this act, and the 2013 amendments to RCW 43.20A.725 in section 302 of this act:
     (1) The tax levied by RCW 82.08.020 shall not apply to sales of((:
     (a) Local service;
     (b) Coin-operated telephone service; and
     (c))) mobile telecommunications services, including any toll service, provided to a customer whose place of primary use is outside this state.
     (2)(a) The definitions in RCW 82.04.065, as well as the definition((s)) in this subsection, apply to this section.
     (((a) "Local service" means ancillary services and telecommunications service, as those terms are defined in RCW 82.04.065, other than toll service, provided to an individual subscribing to a residential class of telephone service.))
     (b) "Toll service" does not include customer access line charges for access to a toll calling network.
     (((c) "Coin-operated telephone service" means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate.))

Sec. 301   RCW 80.36.430 and 2011 1st sp.s. c 50 s 968 are each amended to read as follows:
     Subject to the enactment into law of the 2013 amendments to RCW 82.14B.040 in section 102 of this act, the 2013 amendments to RCW 82.14B.042 in section 103 of this act, the 2013 amendments to RCW 82.14B.030 in section 104 of this act, the 2013 amendments to RCW 82.14B.200 in section 105 of this act, and the 2013 amendments to RCW 82.08.0289 in section 201 of this act:
     (1) The Washington telephone assistance program shall be funded by ((a telephone assistance excise tax on all switched access lines)) the legislature by means of a biennial general fund appropriation to the department 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 department shall submit an approved annual budget for the Washington telephone assistance program to the department of revenue no later than March 1st prior to the beginning of each fiscal year. The department of revenue shall then determine the amount of telephone assistance excise tax to be placed on each switched access line and shall inform local exchange companies and the utilities and transportation commission of this amount no later than May 1st. The department of revenue shall determine the amount of telephone assistance excise tax by dividing the total of the program budget funded by the telephone assistance excise tax, as submitted by the department, by the total number of switched access lines in the prior calendar year. 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.))
     (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 commerce 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.
     (((4) During the 2009-2011 and 2011-2013 biennia, the department shall enter into an agreement with the WIN 211 organization for operational support. During the 2011-2013 biennium, the department shall provide five hundred thousand dollars per fiscal year for this purpose.
     (5) During the 2009-2011 biennium, the telephone assistance fund shall also be used in support of the economic services administration call centers and related operations.))

Sec. 302   RCW 43.20A.725 and 2011 1st sp.s. c 50 s 944 are each amended to read as follows:
     Subject to the enactment into law of the 2013 amendments to RCW 82.14B.040 in section 102 of this act, the 2013 amendments to RCW 82.14B.042 in section 103 of this act, the 2013 amendments to RCW 82.14B.030 in section 104 of this act, the 2013 amendments to RCW 82.14B.200 in section 105 of this act, and the 2013 amendments to RCW 82.08.0289 in section 201 of this act:
     (1) The department, through the sole authority of the office or its successor organization, shall maintain a program whereby an individual of school age or older who possesses a hearing or speech impairment is provided with telecommunications equipment, software, and/or peripheral devices, digital or otherwise, that is determined by the office to be necessary for such a person to access and use telecommunications transmission services effectively.
     (2) The department, through the sole authority of the office or its successor organization, shall maintain a program where telecommunications relay services of a human or electronic nature will be provided to connect hearing impaired, deaf-blind, or speech impaired persons with persons who do not have a hearing or speech impairment. Such telecommunications relay services shall provide the ability for an individual who has a hearing or speech impairment to engage in voice, tactile, or visual communication by wire or radio with a hearing individual in a manner that is functionally equivalent to the ability of an individual who does not have a hearing or speech impairment to communicate using voice or visual communication services by wire or radio subject to subsection (4)(b) of this section.
     (3) The telecommunications relay service and equipment distribution program may operate in such a manner as to provide communications transmission opportunities that are capable of incorporating new technologies that have demonstrated benefits consistent with the intent of this chapter and are in the best interests of the citizens of this state.
     (4) The office shall administer and control the award of money to all parties incurring costs in implementing and maintaining telecommunications services, programs, equipment, and technical support services according to this section. The relay service contract shall be awarded to an individual company registered as a telecommunications company by the utilities and transportation commission, to a group of registered telecommunications companies, or to any other company or organization determined by the office as qualified to provide relay services, contingent upon that company or organization being approved as a registered telecommunications company prior to final contract approval. The relay system providers and telecommunications equipment vendors shall be selected on the basis of cost-effectiveness and utility to the greatest extent possible under the program and technical specifications established by the office.
     (a) To the extent funds are available under the then-current rate and not otherwise held in reserve or required for other purposes authorized by this chapter, the office may award contracts for communications and related services and equipment for hearing impaired or speech impaired individuals accessing or receiving services provided by, or contracted for, the department to meet access obligations under Title 2 of the federal Americans with disabilities act or related federal regulations.
     (b) The office shall perform its duties under this section with the goal of achieving functional equivalency of access to and use of telecommunications services similar to the enjoyment of access to and use of such services experienced by an individual who does not have a hearing or speech impairment only to the extent that funds are available under the then-current rate and not otherwise held in reserve or required for other purposes authorized by this chapter.
     (5) The program shall be funded by ((a telecommunications relay service (TRS) excise tax applied to each switched access line provided by the local exchange companies. The office shall determine, in consultation with the office's program advisory committee, the budget needed to fund the program on an annual basis, including both operational costs and a reasonable amount for capital improvements such as equipment upgrade and replacement. The budget proposed by the office, together with documentation and supporting materials, shall be submitted to the office of financial management for review and approval. The approved budget shall be given by the department in an annual budget to the department of revenue no later than March 1st prior to the beginning of the fiscal year. The department of revenue shall then determine the amount of telecommunications relay service excise tax to be placed on each switched access line and shall inform local exchange companies and the utilities and transportation commission of this amount no later than May 1st. The department of revenue shall determine the amount of telecommunications relay service excise tax to be collected in the following fiscal year by dividing the total of the program budget, as submitted by the office, by the total number of switched access lines in the prior calendar year, as reported to the department of revenue under chapter 82.14B RCW, and shall not exercise any further oversight of the program under this subsection other than administering the collection of the telecommunications relay service excise tax as provided in RCW 82.72.010 through 82.72.090. The telecommunications relay service excise tax shall not exceed nineteen cents per month per access line. The telecommunications relay service excise tax shall be separately identified on each ratepayer's bill with the following statement: "Funds federal ADA requirement." All proceeds from the telecommunications relay service excise tax shall be put into a fund to be administered by the office through the department. During the 2009-2011 and 2011-2013 fiscal biennia, the funds may also be used to provide individualized employment services and employment-related counseling to people with disabilities, and technical assistance to employers about the employment of people with disabilities. "Switched access line" has the meaning provided in RCW 82.14B.020)) the legislature by means of a biennial general fund appropriation to the department for the purposes of the program.
     (6) The telecommunications relay service program and equipment vendors shall provide services and equipment consistent with the requirements of federal law for the operation of both interstate and intrastate telecommunications services for the hearing impaired or speech impaired. The department and the utilities and transportation commission shall be responsible for ensuring compliance with federal requirements and shall provide timely notice to the legislature of any legislation that may be required to accomplish compliance.
     (7) The department shall adopt rules establishing eligibility criteria, ownership obligations, financial contributions, and a program for distribution to individuals requesting and receiving such telecommunications devices distributed by the office, and other rules necessary to administer programs and services consistent with this chapter.