HOUSE BILL REPORT

HB 2546

As Amended by the Senate

BYRepresentatives Phillips, Hankins, Nelson, May, R. Meyers, Miller, Jacobsen, Brooks, Todd, Anderson, Jesernig and Jones

Renewing the Washington telephone assistance program.

House Committe on Energy & Utilities

Majority Report:  Do pass.  (11)

      Signed by Representatives Nelson, Chair; Hankins, Ranking Republican Member; Brooks, Cooper, Gallagher, Jacobsen, Jesernig, May, Miller, H. Myers and S. Wilson.

House Staff:Fred Adair (786-7113)

AS PASSED HOUSE FEBRUARY 6, 1990

BACKGROUND:

Telephone costs have increased significantly, in part due to the AT&T divestiture which resulted in some long distance costs being transferred to local costs.  State policy is that every home should be able to have a telephone, but local rates became unaffordable for some low-income people.  Accordingly, an assistance program was established in 1987 for low-income persons which discounted service connection fees, waived service deposit requirements, and directed the Utilities and Transportation Commission to establish a single monthly flat rate above which low-income persons would not pay. Participants in the assistance program were required to take the least expensive service which, in some cases, is multi-party service.  A surcharge, set by the Commission and not to exceed 16 cents per month, is applied to each subscriber access line to fund the program.

The program expires June 30, 1990, but the need for the assistance has not diminished.

SUMMARY:

The program is continued until June 30, 1997 with the following changes:  Low-income senior citizens 65 and older plus low-income medically needy are entitled to single party service when available, the excise tax ceiling is lowered to 14 cents per month, and the potential clientele is slightly increased.

EFFECT OF SENATE AMENDMENTS:  The program termination date is changed from 1997 to 1993; the eligibility age for seniors to have single party services is lowered from 65 to 60; the Department of Social and Health Services shall make annual reports to the Energy & Utilities Committees of both houses; the department shall make timely application for available federal programs; and the department may specify, by rule, the range and extent of administrative expenses that will be reimbursed to local exchange telephone companies.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Bernice Morehead, Director, Division of Income Services, Department of Social and Health Services; David Girard, Evergreen Legal Services; Jack Doyle, Washington Independent Telephone Association; Hal Lincoln, Continental Telephone Company of the Northwest; Dale Vincent, U.S. West; Phil Kaplan, Washington Poverty Law Advocates; and Bethany Weidner, Utilities & Transportation Commission (answer questions only).

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The testifiers support renewal of the assistance program.  They recommend rewording to enable input of federal or other moneys.  Also, they recommend the charge on each switched access line be designated an excise tax rather than a surcharge for simpler administration.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 97; Excused 1

Excused:    Representative Miller