Agenda Date: July 8, 1998    
Item Number:


Docket:  UT-971664
   Rulemaking concerning the Washington Telephone Assistance     Program (WTAP) 
client mechanisms.
    
Company Name: Telecommunications Companies - General

Staff:    Rebecca Beaton, Regulatory Consultant
    Bob Shirley, Regulatory Consultant
    Bob Wallis, Review Judge

Recommendation: 

Adopt rule language governing administration of the Washington Telephone 
Assistance Program in Docket UT-971664.  Direct the Secretary to file the rules 
with the Code Reviser.

Discussion:

On May 8, 1997, the Federal Communications Commission (FCC) issued its Report 
and Order, FCC Order No.97-157 (FCC Order) implementing key portions of Section 
254 of the Telecommunications Act of 1996 (the Federal Act), which addresses 
universal service.  Among other matters, the order identified services to be 
supported by federal universal service funds and the mechanisms whereby such 
funding will be provided.   Funding support for state telephone assistance 
programs and LIFELINE services were among the items earmarked for federal 
funding.  A revised LIFELINE program was made available to all states with 
matching support funds available beginning January 1, 1998.

The Department of Social and Health Services (DSHS) has, by legislative 
mandate, the jurisdiction and responsibility of funding the state telephone 
assistance and federal LIFELINE programs.  DSHS informed the Washington 
Commission that the agency intends to accept additional funding and will 
implement such through various options.  Due to the dynamic nature of the 
program and the federal and state support mechanisms, the method of revising 
the client base must be flexible to assure continued universal service 
discounts are passed through to clients without delay as they become 
available.  The increasing competition in the telecommunications industry may 
require innovative and rapid revisions to support programs. This action is 
consistent with Washington’s telecommunications policy goal of preservation of 
affordable universal service as enunciated in RCW 80.36.300.  It is further 
noted that RCW 80.36.410-475 adequately addresses the specifics for WTAP 
program implementation, client base and administrative requirements. 

On March 25, 1998, the Commission ordered a Preproposal statement of inquiry 
(CR-101) issued to the Code Reviser to begin the process of adopting rule 
revisions.  The Department of Social and Health Services (DSHS), WTAP 
administrators filed comments in support of the proposal and no opposition was 
filed.  DSHS has, under RCW 80.36.410-475, the Docket UT-971664
June 8, 1998
Page 2
jurisdiction and responsiblity for administration of many aspects of the state 
telephone assistance and LIFELINE programs.  

On May 28, 1998, Staff proposed administrative amendments to WAC 480-122-020 
(Washington Telephone Assistance Program Rate) and WAC 480-120-070 (Recovery of 
Costs). The Commission issued a Proposed Rulemaking (CR-102) with rule language 
to the Code Reviser. The Washington Independent Telephone Association filed 
comments in support of the proposal to amend WAC 480-12-020 and 070. Once 
again, no opposition to the proposed rules was received.

The proposed rule revisions before the Commission are for the purpose of 
reducing the administrative effort and time needed to respond to changes in 
state and federal telephone assistance policies.  

Staff recommends that the Commission adopt these rules on a permanent basis.



Attachment