SENATE BILL REPORT

HB 2546

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

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 20, 1990; February 22, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Metcalf, Nelson, Owen, Patrick, Stratton, Williams.

Senate Staff:Phil Moeller (786-7445)

                  February 26, 1990

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, FEBRUARY 22, 1990

BACKGROUND:

The "lifeline" telephone assistance program was enacted by the Legislature in 1987.  The program is now referred to as the "telephone assistance program" (TAP) and is administered by the Department of Social and Health Services.  Benefits of the TAP include a 50 percent discount on connection fees, a waiver of deposit requirements and a discounted flat rate for service.  This rate is set by the Utilities and Transportation Commission (UTC) and is presently $10 per month.

The TAP is funded by a monthly surcharge of up to 16 cents on all business and residential telephone lines, except those residential lines on the TAP.  The surcharge, set by the UTC, was initially set at 12 cents and has subsequently been changed to 5 cents.

Persons enrolled in the following programs are eligible for TAP benefits:  aid to families with dependent children, chore services, family independence program, food stamps, supplemental security income, refugee assistance, and community options program entry system.

Present statutes require a program participant to subscribe to the lowest flat rate service.  This requires some participants to downgrade their service to a multiple party line.

The term "lifeline" is a registered trademark of a company that links medical agencies with outpatients.

The TAP is set to expire June 30, 1990.

SUMMARY:

The telephone assistance 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, and the potential clientele is increased to include recipients of general assistance with more general language.  The surcharge is changed to an excise tax with a ceiling of 14 cents per line per month.  The connection fee discount may exceed 50 percent if other funds are available.

DSHS is exempt from having to conclude a contract with a local exchange telephone company before reimbursing program costs to a local exchange company.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

A proposed striking amendment was adopted with the following changes:  The program is extended until June 30, 1993; low-income senior citizens 60 and older are eligible for single party service; the UTC is directed to apply for federal funds in a timely manner; DSHS is required to submit annually a report on the program; and the term "lifeline" is changed in an additional section.

Senate Committee - Testified: Bernice Morehead, DSHS (pro); Tom Walker, US West (pro); David Garard, Puget Sound Council of Senior Citizens (pro); William C. Crowell, AARP (pro); Arnold Livingston, Senior Lobby (pro); Raymond R. Day, Jr., WUTC (pro)