AN ACT Relating to continuation of the Washington telephone assistance program; amending RCW 80.36.420, 80.36.430, 80.36.440, 80.36.460, and 80.36.470; amending section 12, chapter 229, Laws of 1987 (uncodified); repealing RCW 80.36.480; and providing an expiration date.

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~~)) The Washington telephone assistance program shall be available to participants of department programs 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 or more 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~~)) telephone assistance rate for all local exchange companies operating in the state of Washington. The ((~~lifeline service~~)) telephone assistance 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~~)) telephone assistance 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~~)) telephone assistance 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~~)) telephone assistance rate. Low-income senior citizens sixty-five years of age and older and other low-income persons identified by the department as medically needy shall, where single-party service is available, be provided with single-party service as the lowest available local exchange flat rate service.

(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~~)) telephone assistance 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~~)) The Washington telephone assistance program shall be ((~~recovered through~~)) funded by a ((~~lifeline surcharge~~)) telephone assistance excise tax on all ((~~other~~)) switched access lines and by funds from any federal government or other programs for this purpose. Switched access lines are defined in RCW 82.14B.020. The ((~~lifeline surcharge~~)) telephone assistance excise tax shall be applied equally to all residential and business access lines not to exceed ((~~sixteen~~)) fourteen 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.~~)) The telephone assistance excise tax shall be separately identified on each ratepayer's bill as the "Washington telephone assistance program." All money collected from the ((~~lifeline surcharge~~)) telephone assistance excise tax shall be transferred to a ((~~lifeline~~)) telephone assistance fund administered by the department. Local exchange companies shall bill the fund for their expenses incurred in offering ((~~lifeline telecommunications services~~)) the telephone assistance program, including administrative and program expenses. The department shall disburse the money to the local exchange companies. The department is exempted from having to conclude a contract with local exchange companies in order to effect this reimbursement. The department shall recover its administrative costs from the fund.

Sec. 3. Section 6, chapter 229, Laws of 1987 and RCW 80.36.440 are each amended to read as follows:

The commission and the department may adopt any rules necessary to implement RCW 80.36.410 through ((~~80.36.480~~)) 80.36.470.

Sec. 4. Section 8, chapter 229, Laws of 1987 and RCW 80.36.460 are each amended to read as follows:

Local exchange companies shall file tariffs with the commission which waive deposits on local exchange service for eligible subscribers and which establish a fifty percent discount on service connection fees for eligible subscribers. Part or all of the remaining fifty percent of service connection fees may be paid by funds from federal government or other programs for this purpose. The remaining portion of the connection fee to be paid by the subscriber shall be expressly payable by installment fees spread over a period of months. A subscriber may, however, choose to pay the connection fee in a lump sum. Costs associated with the waiver and discount shall be accounted for separately and recovered from the ((~~lifeline~~)) telephone assistance fund. Eligible subscribers shall be allowed one waiver of a deposit and one discount on service connection fees per year.

Sec. 5. 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).)) Adult recipients of department-administered programs for the financially needy which provide continuing financial or medical assistance, food stamps, or supportive services to persons in their own homes are eligible for participation in the telephone assistance program. The department shall notify the participants of their eligibility.

Sec. 6. Section 12, chapter 229, Laws of 1987 (uncodified) is amended to read as follows:

RCW 80.36.410 through ((~~80.36.480~~)) 80.36.470 shall expire June 30, ((~~1990~~)) 1997, unless extended by the legislature.

NEW SECTION. Sec. 7. Section 10, chapter 229, Laws of 1987 and RCW 80.36.480 are each repealed.