AN ACT Relating to lifeline telephone services; amending RCW 80.36.420, 80.36.430, and 80.36.470; and adding new sections to chapter 80.36 RCW.

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

Sec. 1. Section 4, chapter 229, Laws of 1987 and RCW 80.36.420 are each amended to read as follows:

Lifeline assistance shall be available to ((~~participants of department programs~~)) persons as set forth in RCW 80.36.470. Lifeline assistance shall consist of the following components:

(1) A discount on service connection fees of fifty percent as set forth in RCW 80.36.460.

(2) A waiver of deposit requirements on local exchange service, as set forth in RCW 80.36.460.

(3) A discounted flat rate lifeline service rate for local exchange service, which shall be subject to the following conditions:

(a) The commission shall establish a single lifeline service rate for all local exchange companies operating in the state of Washington. The lifeline service rate shall include any federal end user access charges and any other charges necessary to obtain local exchange service.

(b) The commission shall, in establishing the lifeline service rate, consider all charges for local exchange service, including federal end user access charges, mileage charges, extended area service, and any other charges necessary to obtain local exchange service.

(c) The lifeline service rate shall only be available to eligible customers subscribing to the lowest available local exchange flat rate service, where the lowest local exchange flat rate, including any federal end user access charges and any other charges necessary to obtain local exchange service, is greater than the lifeline service rate.

(d) The cost of providing the lifeline service shall be paid, to the maximum extent possible, by a waiver of all or part of the federal end user access charge and, to the extent necessary, from the lifeline fund created by RCW 80.36.430.

Sec. 2. Section 5, chapter 229, Laws of 1987 and RCW 80.36.430 are each amended to read as follows:

Costs associated with lifeline telephone service shall be ((recovered through a lifeline surcharge on all other switched access lines. The lifeline surcharge shall be applied equally to all residential and business access lines not to exceed sixteen cents per month. The surcharge collected by the telecommunications companies shall not be construed as gross income or gross receipts for purposes of state, county or municipal public utility taxes. All money collected from the lifeline surcharge shall be transferred to a lifeline fund administered by the department)) paid for by the lifeline fund surplus. When the lifeline fund surplus, in the discretion of the department, is within six months of exhaustion, costs associated with the lifeline service shall be recovered as provided for in sections 4 and 5 of this 1988 act. Local exchange companies shall bill the fund for their expenses incurred in offering lifeline telecommunications services, including administrative and program expenses. The department shall disburse the money to the local exchange companies. The department shall recover its reasonable and necessary administrative costs from the fund, provided such costs do not exceed twenty percent of the money disbursed to the local exchange companies.

Sec. 3. Section 9, chapter 229, Laws of 1987 and RCW 80.36.470 are each amended to read as follows:

((Participants in the following department programs are eligible for lifeline assistance: Aid to families with dependent children, chore services, food stamps, supplemental security income, refugee assistance, and community options program entry system (COPES). The department shall notify the participants of their eligibility.)) Persons eligible for the property tax exemption as provided for in RCW 84.36.381 are eligible for lifeline assistance.

NEW SECTION. Sec. 4. A new section is added to chapter 80.36 RCW to read as follows:

The commission shall require all local exchange telecommunications companies to include along with, or as part of their regular customer billings, a request for voluntary contributions to assist qualified persons as provided for in section 3 of this act. All funds received by the company in response to such requests shall be transmitted to a charitable organization within the company's service area. All such funds shall be used solely to supplement assistance to the company's customers as provided for in section 3 of this act in paying their telephone bills.

NEW SECTION. Sec. 5. A new section is added to chapter 80.36 RCW to read as follows:

All assistance provided under this chapter shall be disbursed by the charitable organization. Where possible the local exchange company will be paid on behalf of the customer by the charitable organization. When direct vendor payment is not feasible, a check will be issued jointly payable to the customer and the company. The charitable organization shall provide the company with a quarterly report on January 15th, April 15th, July 15th, and October 15th which includes information concerning the total amount of funds received from the company, the names of all recipients of assistance from these funds, the amount received by each recipient, and the amount of funds received from the company currently on hand and available for future low-income assistance.