Original Notice.

Preproposal statement of inquiry was filed as WSR 00-17-167.

Title of Rule: Chapter 480-122 WAC, Washington telephone assistance program.

Purpose: To implement the requirements of Executive Order 97-02, requiring agencies to review significant rules for need; effectiveness and efficiency; clarity; intent and statutory authority; cost and fairness. The proposal would repeal several existing rules which are duplicative of rules under the jurisdiction of the Department of Social and Health Services, adds and clarifies definitions, and includes a new requirement defining when local exchange carriers must begin offering telephone assistance rates and discounts.

Statutory Authority for Adoption: RCW 80.01.040, 80.36.410, 80.66.010, 80.04.160, 80.36.420.

Summary: See Explanation of Rules below.

Name of Agency Personnel Responsible for Drafting: Kristen Russell, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504, (360) 664-1281; Implementation and Enforcement: Carole J. Washburn, Secretary, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504, (360) 664-1174.

Name of Proponent: Washington Utilities and Transportation Commission, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: To implement the requirements of Executive Order 97-02, requiring agencies to review significant rules for need; effectiveness and efficiency; clarity; intent and statutory authority; cost and fairness. The proposal would repeal several existing rules which address the criteria for consumer participation, and benefits received by participants. These rules are duplicative of rules under the jurisdiction of the Department of Social and Health Services. The rule redraft adds a definition for radio communications service company and clarifies existing definitions, and includes a new requirement defining when local exchange carriers must begin offering telephone assistance rates and discounts.

Proposal Changes the Following Existing Rules: WAC 480-122-010, clarifies definitions used throughout the chapter, eliminates definitions not pertinent to the commission's jurisdiction.

WAC 480-122-020, clarifies when telecommunications carriers are required to offer telephone assistance rates and discounts.

WAC 480-122-030, 480-122-040, 480-122-070, and 480-122-090, repealed, falls under the jurisdiction of DSHS.

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

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

A small business economic impact statement has been prepared under chapter 19.85 RCW.

Summary of the Proposed Changes: The proposed changes to the rules specify when non-ETC local exchange carriers must offer WTAP to customers, eliminates rules relating to benefits, which are covered in DSHS's rule and fall under their jurisdiction, and allows non-ETC wireless carriers to offer WTAP.

Purpose and Process: RCW 19.85.040 requires that the economic impacts of proposed rules on small companies be compared with the economic impacts on the largest companies, or those which comprise the top 10% of the affected industry. RCW 19.85.020 defines small companies as those that have fifty or fewer employees.

On April 17, 2001, commission staff sent out a small business economic impact statement questionnaire and a notice to file written comments to all telecommunications companies registered in the state.

Responses were requested by May 4, 2001. The commission received responses from fifteen telecommunications companies, three of which are small businesses. Two companies supplied only comments; eight companies provided minimal operations or have not begun operations in Washington, and therefore were unable to answer the SBEIS. Five companies filled out the SBEIS, one company does not provide service in Washington, and another provides only DSL, thus the changes to the rule would have no impact to their respective companies. The remaining three responded that a majority of the changes would cause minimal impact.

Cost of Compliance: Of the five companies that filled out the SBEIS questionnaire, only two responded that the changes would have any monetary impact. Both indicated the cost would result from the preparation and filing of a price list, for one the expected cost would be minimal, for the other the expected cost would be $1000.00.

Comparison of Costs: The cost of implementation of the proposed rules were indicated to be small or nonexistent for both small and large businesses. Nothing in the responses indicated a disproportionate impact on small businesses.

Lost Sales or Revenue: None of the respondents indicated that the changes proposed would lead to loss of sales or revenues.

Impact of Proposed Changes: The proposed changes received little comment and the responses to the SBEIS questionnaire indicated that all companies consider the impact to be negligible.

Conclusion: Fifteen companies, out of over six hundred registered companies that were sent the SBEIS, responded to the SBEIS questionnaire and notice to file written comments. The ascertainable impact from the responses is that the expected costs are negligible for all telecommunications companies.

Commission staff contacted companies seeking data regarding whether the proposed rules would impose increased costs. The responses indicate that affected companies have not identified such increased costs. The commission analyzed the rules to identify those that impose requirements that are new or differ from current requirements. The commission analysis identified only minor costs.

A copy of the statement may be obtained by writing to Carole J. Washburn, Secretary, P.O. Box 47250, Olympia, WA 98504-7250, phone (360) 664-1174, fax (360) 586-1150.

RCW 34.05.328 does not apply to this rule adoption. The commission is not an agency to which RCW 34.05.328 applies. The proposed rules are not significant legislative rules as referenced in RCW 34.05.328(5).

Hearing Location: Commission Hearing Room 206, 2nd Floor, Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, on September 12, 2001, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Mary DeYoung by Monday, September 10, 2001, TDD (360) 586-8203, or (360) 664-1133.

Submit Written Comments to: Carole J. Washburn, Secretary P.O. Box 47250, Olympia, WA 98504-7250 or e-mail to <records@wutc.wa.gov>, fax (360) 586-1150, by August 22, 2001. Please include Docket No. UT-003074 in your communication.

Date of Intended Adoption: September 1, 2001.

August 1, 2001

Paul Curl

for Carole J. Washburn

Secretary

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.]

[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.]

[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.]

[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.]

     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.

Washington State Code Reviser's Office