S-1272               _______________________________________________

                                                   SENATE BILL NO. 5687

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Sutherland and Bauer

Read first time 2/2/89 and referred to Committee on  Energy & Utilities.

AN ACT Relating to lifeline telecommunications services; amending RCW 80.36.430; and declaring an emergency.

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

        Sec. 1.  Section 5, chapter 229, Laws of 1987 and RCW 80.36.430 are each amended to read as follows:

(1) 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.  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 administrative costs from the fund.

(2) The lifeline surcharge shall not be applied to access lines in exchange areas where the lowest local exchange flat rate is equal to or less than the lifeline service rate established by the commission.

(3) By June 30, 1989, and at least annually thereafter the commission shall review the amount of the lifeline surcharge.  If a surplus exists in the lifeline fund, the commission shall recalculate the surcharge in an amount which, combined with the surplus, will generate adequate funds to cover the next year's anticipated costs.

NEW SECTION. Sec. 2.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.