SENATE BILL REPORT

SB 6566

BYSenators Zimmerman, Cantu and Smith

Creating a voluntary telephone assistance program.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):January 29, 1988

Senate Staff:Phil Moeller (786-7455)

AS OF FEBRUARY 1, 1988

BACKGROUND:

In 1987 the Legislature created the lifeline telephone assistance program (SB 5097, Chapter 229).  The program is available to participants in the following aid programs:  aid to families with dependent children, chore service, food stamps, supplemental security income, refugee assistance, and community options program entry system.  The program is administered by the Department of Social and Health Services (DSHS).

Benefits of the program include a 50 percent discount on connection charges for new service, a waiver of deposits, and a lifeline service rate of $10 per month.  The program is funded by a surcharge tax, presently set at the rate of 12 cents per month for each access line in the state.  The surcharge tax is deposited in a lifeline fund.  The Department as well as telephone companies may be reimbursed from the fund for lifeline administrative costs.

The program has been in operation for approximately six months.  According to DSHS, the latest available data show that services are being provided to over 29,000 clients.  Over $1.4 million has been collected by the surcharge.  Start up costs totalled $227,647 and ongoing expenses are estimated to total about $51,000 per month.  Over 200,000 households are estimated to be eligible for the program.

SUMMARY:

The lifeline telephone assistance program is repealed, and a voluntary telephone assistance program is created.  The Utilities and Transportation Commission shall require all telephone companies to request voluntary contributions to assist residential customers in paying telephone bills.  A charitable organization within the company's service area shall receive the funds from the company, disperse the funds, and determine eligibility and type of assistance.  The charitable organization shall report to the company on a quarterly basis regarding the implementation of the program.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested