HOUSE BILL REPORT

ESB 5097

As Amended by the House

BYSenator Williams

Modifying provisions relating to utility regulation.

House Committe on Energy & Utilities

Majority Report:  Do pass with amendments.  (14)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Barnes, Brooks, Gallagher, Hankins, Jacobsen, Jesernig, Madsen, May, Miller, Sutherland, Unsoeld and S. Wilson.

House Staff:Fred Adair (786-7113) and Deborah Senn (786-7198)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:  Do pass with amendments by Committee on Energy & Utilities.  (18)

      Signed by Representatives Locke, Chair; Belcher, Bristow, Ebersole, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver, L. Smith, H. Sommers and Sprenkle.

Minority Report:  Do not pass.  (1)

      Signed by Representative Fuhrman.

House Staff:      Ron Morrison (786-7178)

AS PASSED HOUSE APRIL 9, 1987

BACKGROUND:

Three chapters of the Laws of 1985 amended RCW 80.04.010, definitions relating to the Utilities and Transportation Commission.  Three chapters of the Laws of 1985 also amended RCW 80.04.130, relating to utility tariffs for water and telecommunications service.  Because of variations, each section appears in statute three times.

Since the break-up of AT&T, rates for local telephone service have fluctuated with some local ratepayers experiencing increases.  In 1985 the legislature, in enacting the regulatory flexibility bill, made a commitment to universal telephone service in the state.  A partial lifeline assistance program for low-income households, funded by the federal government, is designed to maintain those currently on the telephone system and make telephone service affordable.  However, this assistance program does not reach all persons in need.

SUMMARY:

In each section, RCW 80.04.010 and RCW 80.04.130, the amendments are reenacted and merged.  Also, new definitions are added.

A statewide lifeline assistance program is established to maintain service for low-income households that currently have phone service and make telephone service affordable to those that do not presently have service.

This program is made available to participants in already existing aid programs--aid to families with dependent children, chore service, food stamps, supplemental security income, refugee assistance, and community options program entry system (COPES).  The program will be administered by the Department of Social and Health Services (DSHS).  The department shall notify clients in these programs of their eligibility for lifeline telephone service.  The benefits include a 50 percent discount on connection charges for those who do not have telephone service, a waiver of deposits, and a lifeline service rate established by the Utilities and Transportation Commission.  The lifeline service rate will apply to eligible customers whose lowest available rate is greater than the lifeline rate. 

The program is funded through a surcharge tax not to exceed 16 cents per month on the access lines of local ratepayers.  The expected surcharge will average about 9 cents.  A lifeline fund is created for use by DSHS in administering the program.  The legislature will review the program by December 15, 1989.  The act expires June 30, 1990.

Telephone solicitation law is changed in that civil action is conditioned on repeated rather than single violation of solicitation law.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    (Energy & Utilities)  Barbara Baker, Elder Citizens Coalition; Phil Prettyman, King County United Way; Art Butler, TRACER; Steve McLellan, Utilities and Transportation Commission; Arnold Livingston, Senior Citizens Lobby; Mike Woodin, AT&T; Beth Juntti, Council of Organizations of the Physically Handicapped; Mike Rendish, American Association of Retired Persons; Dale Vincent, Pacific Northwest Bell.

(Ways & Means/Appropriations)  Representative Dick Nelson; Debra Senn, Joint Committee on Telecommunications; Barbara Baker, Elder Citizens Coalition; Phil Prettyman, King County United Way; Arnold Livingston, Senior Citizens Lobby; Stan Enebo, American Association of Retired Persons; Steve McLellan, Utilities and Transportation Committee; Veeta Marchette, Pacific Lutheran University.

House Committee - Testified Against:      (Energy & &Utilities)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:    (Energy & Utilities)  The lifeline rate is needed to make essential telephone services affordable for low-income citizens.  It is to all customers' benefit to keep as many customers on the network as possible.  This bill is a good compromise.

The solicitation law change is to avoid civil action for occasional inadvertent double calling, especially by charities with volunteers who must adjust to the recent law.

(Ways & Means/Appropriations)  A telephone is an essential tool for the unemployed in seeking and finding employment.

House Committee - Testimony Against:      (Energy & Utilities)  None Presented.

(Ways & Means/Appropriations)  None Presented.