House Bill Analysis — HB 1738, State Universal Communication Services Program (2/7/23)

Summary

House Bill Analysis of HB 1738 concerning the state universal communication services program, prepared by the Washington State House of Representatives Office of Program Research for the Innovation, Community & Economic Development, & Veterans Committee, with a hearing date of 2/7/23. The brief summary states that the bill extends the expiration date of the State Universal Communications Services Program to June 30, 2034. The background states that the program was established in 2014 and now expires June 30, 2024, and describes the eligibility criteria for communications providers. It lists Appropriation: None and a fiscal note requested on February 6, 2023. The sponsors are Representatives Ryu and Pollet.

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Full text

Washington State                  BILL
House of Representatives
Office of Program Research   ANALYSIS
Innovation, Community & Economic
Development, & Veterans Committee
                                        HB 1738
Brief Description: Concerning the state universal communication services program.

Sponsors: Representatives Ryu and Pollet.


                                     Brief Summary of Bill
          • Extends the expiration date of the State Universal Communications
            Services Program to June 30, 2034.


Hearing Date: 2/7/23

Staff: Emily Poole (786-7106).

Background:

The State Universal Communications Services Program (Program) was established in 2014 to
provide temporary support to Washington's smaller incumbent telephone companies. The
Program originally expired in 2019 but was extended and now expires June 30, 2024.

The Program supports continued provision of basic telecommunication services under rates,
terms, and conditions established by the Utilities and Transportation Commission (UTC) and the
provision, enhancement, and maintenance of broadband services. Under the Program, eligible
communications providers may receive distributions from the Program in exchange for an
agreement to provide continued telecommunications services under the rates, terms, and
conditions established by the UTC, and broadband services, for the period covered by the
distribution.

A communications provider is eligible to receive distributions from the Program if:



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

House Bill Analysis                             -1-                                         HB 1738
    • the provider is an incumbent local exchange carrier and has fewer than 40,000 lines in the
      state or is a radio communications service company providing wireless two-way voice
      communications service and broadband services to less than the equivalent of 40,000
      access lines in the state;
    • the provider has adopted a plan to provide, enhance, or maintain broadband services in its
      service area; and
    • the provider meets any other criteria established by the UTC.

A communications provider other than a provider meeting the criteria above is eligible to receive
distributions from the program if the provider:
    • demonstrates to the UTC that the provider is able to provide the same or comparable
       services at the same or similar service quality standards at a lower price;
    • will provide communications services to all customers in the exchange or exchanges in
       which it will provide service; and
    • submits to the UTC's regulation of its service as if it were the incumbent local exchange
       company serving the exchange or exchanges for which it seeks distribution from the
       account.

To receive a distribution from the Program, the eligible communications provider must
affirmatively consent to continue providing services to its customers under rates, terms, and
conditions established by the UTC for the period covered by the distribution. Distribution
amounts to eligible communications providers are based on criteria established by the UTC.

Expenditures from the Program may not exceed $5 million per fiscal year. If less than $5 million
is expended in any fiscal year, the unexpended portion must be carried over to subsequent fiscal
years and be available for program expenditures in subsequent fiscal years in addition to the $5
million allotted for each of the subsequent fiscal years. The Program is funded from amounts
deposited by the Legislature into the Universal Communications Services Account. The UTC
must operate the Program within amounts appropriated.

Summary of Bill:

The Program terminates on June 30, 2034.

The UTC must review rules adopted to implement the program no less than every five years.

A communications provider is eligible to receive distributions from the Program if, in addition to
other criteria, the provider has adopted a plan to provide, enhance, and maintain broadband
services in its service area.

Appropriation: None.

Fiscal Note: Requested on February 6, 2023.



House Bill Analysis                            -2-                                        HB 1738
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.




House Bill Analysis                            -3-                                         HB 1738


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