WSR 02-03-017

PERMANENT RULES

UTILITIES AND TRANSPORTATION

COMMISSION

[ Docket No. UT-003074, General Order No. R-492 -- Filed January 4, 2002, 10:05 a.m. , effective February 28, 2002 ]

     In the matter of amending and repealing rules in chapter 480-122 WAC, relating to Washington telephone assistance program (WTAP).

     1 STATUTORY OR OTHER AUTHORITY: The Washington Utilities and Transportation Commission takes this action under Notice No. WSR 01-16-152, filed with the code reviser on August 1, 2001. The commission brings this proceeding pursuant to RCW 80.01.040 and 80.04.160.

     2 STATEMENT OF COMPLIANCE: This proceeding complies with the Open Public Meetings Act (chapter 42.30 RCW), the Administrative Procedure Act (chapter 34.05 RCW), the State Register Act (chapter 34.08 RCW), the State Environmental Policy Act of 1971 (chapter 43.21C RCW), and the Regulatory Fairness Act (chapter 19.85 RCW).

     3 DATE OF ADOPTION: The commission adopts this rule to be effective February 28, 2002.

     4 CONCISE STATEMENT OF PURPOSE AND EFFECT OF THE RULE: RCW 34.05.325 requires that the commission prepare and provide to commenters a concise explanatory statement about an adopted rule. The statement must include the identification of the reasons for adopting the rule, a summary of the comments received regarding the proposed rule, and responses reflecting the commission's consideration of the comments.

     5 The commission often includes a discussion of those matters in its rule adoption order. In addition, most rule-making proceedings involve extensive work by commission staff that includes summaries in memoranda of stakeholder comments, commission decisions, and staff recommendations in each of those areas.

     6 In this docket, to avoid unnecessary duplication, the commission designates the discussion in this order as its concise explanatory statement, supplemented where not inconsistent by the staff memoranda presented at the adoption hearing and at the open meetings where the commission considered whether to begin this rule making and whether to adopt the specific language proposed by staff. Together, the documents provide a complete but concise explanation of the agency's actions and the agency's reasons for taking those actions.

     7 REFERENCE TO AFFECTED RULES: This rule repeals and amends the following sections of the Washington Administrative Code:

     WAC 480-122-010 Definitions. Amended to clarify definitions used throughout the chapter, eliminates definitions not pertinent to the commission's jurisdiction.

     WAC 480-122-020 Washington telephone assistance program rate. Amended to clarify when telecommunications carriers are required to offer telephone assistance rates and discounts.

     WAC 480-122-030 Connection fees. Repealed, falls under the jurisdiction of the Department of Social and Health Services ("DSHS").

     WAC 480-122-040 Deposit waiver. Repealed, falls under the jurisdiction of DSHS.

     WAC 480-122-060 Telephone assistance excise tax. Amended to clarify that only wireline carriers will collect the excise tax, and eliminates a set rate to allow flexibility to adjust the rate within the statutory amount by order, at the request of DSHS.

     WAC 480-122-070 Recovery of costs. Repealed, falls under the jurisdiction of DSHS.

     WAC 480-122-080 Accounting. Amended to eliminate language that is no longer necessary, and that was confusing to carriers.

     WAC 480-122-090 Administration. Repealed, falls under the jurisdiction of DSHS.

     8 PREPROPOSAL STATEMENT OF INQUIRY: The commission filed a preproposal statement of inquiry (CR-101) on August 23, 2000, at WSR 00-17-167.

     9 ADDITIONAL NOTICE AND ACTIVITY PURSUANT TO PREPROPOSAL STATEMENT: The preproposal statement of inquiry advised interested persons that the commission was considering entering a rule making on rules relating to the Washington telephone assistance program to review them for content and readability pursuant to Executive Order 97-02, with attention to the rules' need, effectiveness and efficiency, clarity, intent and statutory authority, coordination, cost, and fairness. The review included consideration of whether substantive changes or additions were required.

     10 The commission also informed persons of the inquiry into this matter by providing notice of the subject and the CR-101 to all persons on the commission's list of persons requesting such information pursuant to RCW 34.05.320(3), to all registered telecommunications companies, and to the commission's list of telecommunications attorneys. Pursuant to the notice, the commission:

Held two interested person/stakeholder meetings.
Conducted numerous meetings with DSHS to coordinate related rule makings underway at both agencies.
Circulated working drafts to stakeholders for comment.
Revised drafts based on stakeholder comments.
     11 On April 17, 2001, the commission sent a small business economic impact statement ("SBEIS") to all registered telecommunications companies in the state of Washington. Based on responses received, commission staff concluded in a report dated May 14, 2001, that the expected costs caused by the proposed rules are negligible for all telecommunications companies.

     12 NOTICE OF PROPOSED RULE MAKING: The commission filed a notice of proposed rule making (CR-102) on August 1, 2001, at WSR 01-16-152. The notice provided interested persons the opportunity to submit written comments to the commission.

     13 WRITTEN COMMENTS: Verizon Northwest, Inc. ("Verizon"), Qwest Corporation ("Qwest"), Public Counsel, Verizon, Low Income Telecommunications Project ("LITE"), and United States Cellular Corporation submitted written comments. Numerous comments regarding the administration of WTAP by DSHS are not within the jurisdictional authority of the commission. Accordingly, commission staff was unable to directly address or resolve these issues. However, DSHS agreed to reopen its WTAP rule making to address interagency discrepancies raised in comments, and staff recommended that the commission's rules become effective on February 28, 2002, in order to allows DSHS sufficient time to amend their rules.

     14 Other comments focused on outreach activities to promote the availability of WTAP and the proposed establishment of threshold criteria for mandatory participation in WTAP. After considering these other comments, staff recommended proceeding with adoption of the rule as drafted.

     15 RULE-MAKING HEARING: The commission scheduled this matter for oral comment and adoption under Notice No. WSR 01-16-152 at a rule-making hearing during the commission's regularly scheduled open public meeting on Wednesday, September 12, 2001, at 9:30 a.m., at the commission's offices in Olympia, Washington. Chairwoman Marilyn Showalter, Commissioner Richard Hemstad, and Commissioner Patrick Oshie considered the rule proposal for adoption at the September 12, 2001, open meeting pursuant to notice. The commission heard oral comments from Kristen Russell on behalf of commission staff and from representatives of Spokane Neighborhood Action Program, Qwest, and Verizon.

     16 SUGGESTIONS FOR CHANGE THAT ARE REJECTED: The commission rejected the Spokane Neighborhood Action Program's proposal to include language requiring specific outreach activities by carriers participating in WTAP. The goal to improve outreach efforts is being addressed by the Washington Utilities and Transportation Commission, DSHS, and the Federal Communications Commission. The commission presently is planning workshops to review efforts to comply with federal outreach requirements by carriers. The conduct of these workshops conveys the commission's serious concern regarding the development of effective outreach programs. Moreover, the workshops will provide an opportunity for carriers to share information with each other regarding their compliance efforts. Future workshops may lead to further review of the need for specific outreach requirements in the commission's WTAP rule.

     17 The commission also rejected Qwest's suggestion that rule language requiring WTAP participation by carriers serving 100 or more residential access lines be eliminated, and that waiver provisions be added to proposed language in the commission's competitive classification rule making that is underway. The commission favors addressing this issue in the substantive rule section itself, so that the rule is structured in such a way that does not require subsequent waiver. The 100-or-more access line requirement is a low threshold, and it achieves the same result as the suggested waiver provisions but in a more direct manner.

     18 COMMISSION ACTION: After considering all of the information regarding this proposal, the commission repealed and amended the rules as proposed in the CR-102 at WSR 01-16-152.

     19 CHANGES FROM PROPOSAL: The commission adopted the proposal without changes to the text noticed at WSR 01-16-152.

     20 STATEMENT OF ACTION; STATEMENT OF EFFECTIVE DATE: In reviewing the entire record, the commission determines that WAC 480-122-030, 480-122-040, 480-122-070, and 480-122-090 should be repealed.

     21 The commission further determines that WAC 480-122-010, 480-122-020, 480-122-060, and 480-122-080 should be amended to read as set forth in Appendix A, as rules of the Washington Utilities and Transportation Commission, to take effect on February 28, 2002.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 4, Repealed 4.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

ORDER

    
     22 THE COMMISSION ORDERS That:

     23 WAC 480-122-030, 480-122-040, 480-122-070, and 480-122-090 are repealed.

     24 WAC 480-122-010, 480-122-020, 480-122-060, and 480-122-080 are amended to read as set forth in Appendix A, as rules of the Washington Utilities and Transportation Commission, to take effect on February 28, 2002.

     25 This order and the rules set out on [at] Appendix A, after being recorded in the register of the Washington Utilities and Transportation Commission, shall be forwarded to the code reviser for filing pursuant to chapters 80.01 and 34.05 RCW and chapter 1-21 WAC.

     DATED at Olympia, Washington, this 2nd day of January, 2002.

Washington Utilities and Transportation Commission

Marilyn Showalter, Chairwoman

Richard Hemstad, Commissioner

Patrick J. Oshie, Commissioner

OTS-5046.2


AMENDATORY SECTION(Amending Order R-328, filed 9/11/90, effective 10/12/90)

WAC 480-122-010   Definitions.   For purposes of this chapter:

     (1) "Local exchange company" means a telecommunications company providing local exchange telecommunications service.

     (2) "Department" means the department of social and health services.

     (3) "Washington telephone assistance program" means((:

     (a) A discount on residential service connection fees of fifty percent;

     (b) A waiver of the deposit on local residential exchange service;

     (c) A discounted flat rate on one access line for local residential exchange service for eligible persons subscribing to the lowest available local exchange flat rate service, where that rate, including any federal end user access charge or other charge necessary to obtain local exchange service, is greater than the telephone assistance rate set by the commission. Where available, single-party service shall qualify as the lowest available flat rate for persons otherwise eligible, who are sixty years of age or older, or who receive medical assistance.

     (4) "Eligible person" means an adult recipient 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. The department shall notify the participants of their eligibility.

     (5) "Eligibility period" means a one-year period of eligibility as certified by the department. The eligibility period shall run from July 1 through June 30 of the succeeding year.

     (6) "Charge necessary to obtain local exchange service" means the charge for the lowest available grade of residential flat rate service, any federal end user access charge, any charge for nonoptional extended area service and any charge for nonoptional mileage. It does not include any charge for customer premises equipment or any applicable taxes)) the program of local exchange service discounts administered by the department.

     (((7))) (4) "Switched access line" means, for the purpose of applying the telephone assistance program excise tax, a communication facility extending from a serving central office to a customer's premises to provide access to and from the switched telecommunications network for message toll service and local calling. When used with PBX or Centrex-CU a switched access line may also be referred to as a trunk.

     (((8) "Connection fees" means any service charge applicable to the connection of a switched access line to establish new service, but not including line extension charges or any delinquent balance owed to the local exchange company.)) (5) Radio communications service company has the meaning found in RCW 80.04.010, except that for the purposes of this section it includes only those companies providing two-way voice communication as a common carrier.

     (6) "Eligible telecommunications carrier" (ETC) means a carrier designated as an ETC pursuant to 47 U.S.C. 214(e).

[Statutory Authority: RCW 80.01.040. 90-19-020 (Order R-328, Docket No. UT-900462), § 480-122-010, filed 9/11/90, effective 10/12/90; 87-20-043 (Order R-277, Cause No. U-87-1102-R), § 480-122-010, filed 10/1/87.]


AMENDATORY SECTION(Amending Order R-449, filed 9/2/98, effective 10/3/98)

WAC 480-122-020   Washington telephone assistance program rate.   The commission shall set by order the telephone assistance rate to be paid by program participants for local service. Every eligible telecommunications carrier (ETC) must offer the telephone assistance rates and discounts in accordance with RCW 80.36.410 through 80.36.475. Every non-ETC local exchange company must offer the telephone assistance rates and discounts in accordance with RCW 80.36.410 through 80.36.475 when one hundred or more of its access lines are subscribed to for residential service. Radio communications service companies that are not ETCs may offer the telephone assistance rates and discounts in accordance with RCW 80.36.410 through 80.36.475.

[Statutory Authority: RCW 80.01.040. 98-18-106 (Order R-449, Docket No. UT-971664), § 480-122-020, filed 9/2/98, effective 10/3/98; 90-19-020 (Order R-328, Docket No. UT-900462), § 480-122-020, filed 9/11/90, effective 10/12/90; 87-20-043 (Order R-277, Cause No. U-87-1102-R), § 480-122-020, filed 10/1/87.]


AMENDATORY SECTION(Amending Order R-377, filed 9/28/92, effective 10/29/92)

WAC 480-122-060   Telephone assistance excise tax.   ((Beginning November 1, 1992,)) Wireline local exchange companies shall collect a telephone assistance excise tax on all switched access lines ((of thirteen cents per month)) in an amount set by the commission by order at the request of the department. Each party line ((subscriber)) customer shall be assessed the telephone assistance excise tax in full. The telephone assistance excise tax shall be separately identified on each ratepayer's bill as the "Washington telephone assistance program." Money collected from the telephone assistance excise tax shall be transferred to a telephone assistance fund administered by the department.

[Statutory Authority: RCW 80.01.040. 92-20-031 (Order R-377, Docket No. UT-920696), § 480-122-060, filed 9/28/92, effective 10/29/92; 90-19-020 (Order R-328, Docket No. UT-900462), § 480-122-060, filed 9/11/90, effective 10/12/90; 89-11-020 (Order R-300, Docket No. U-89-2754-R), § 480-122-060, filed 5/11/89; 87-20-043 (Order R-277, Cause No. U-87-1102-R), § 480-122-060, filed 10/1/87.]


AMENDATORY SECTION(Amending Order R-328, filed 9/11/90, effective 10/12/90)

WAC 480-122-080   Accounting.   Local exchange companies shall maintain their accounting records so that expenses associated with the telephone assistance program can be separately identified. ((Only the unwaived portion of the federal end user access charge shall be shown on the ratepayer's bill.))

[Statutory Authority: RCW 80.01.040. 90-19-020 (Order R-328, Docket No. UT-900462), § 480-122-080, filed 9/11/90, effective 10/12/90; 87-20-043 (Order R-277, Cause No. U-87-1102-R), § 480-122-080, filed 10/1/87.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 480-122-030 Connection fees.
WAC 480-122-040 Deposit waiver.
WAC 480-122-070 Recovery of costs.
WAC 480-122-090 Administration.

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