House Bill Analysis — SSB 5600, Universal Communications Services Program (Hearing 3/17/23)

Summary

A House Bill Analysis of SSB 5600 prepared by the Office of Program Research for the Innovation, Community & Economic Development, & Veterans Committee, with a hearing date of 3/17/23 and staff Emily Poole. The brief description is extending the expiration date for the state universal communications services program. The background says the Program was established in 2014 and now expires June 30, 2024. The summary of the bill changes the termination date from June 30, 2024, to June 30, 2034. The analysis lists Appropriation: None and says a fiscal note is available.

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Washington State                  BILL
House of Representatives
Office of Program Research   ANALYSIS
Innovation, Community & Economic
Development, & Veterans Committee
                                       SSB 5600
Brief Description: Extending the expiration date for the state universal communications
     services program.

Sponsors: Senate Committee on Environment, Energy & Technology (originally sponsored by
    Senators Wellman, Braun, Lovick, Schoesler and Short).


                               Brief Summary of Substitute Bill
          • Extends the expiration date of the state Universal Communications
            Services Program by ten years, to June 30, 2034.


Hearing Date: 3/17/23

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.



     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-                                        SSB 5600
A communications provider is eligible to receive distributions from the Program if:
   • 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 termination date of the Program is changed from June 30, 2024, to June 30, 2034.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.




House Bill Analysis                            -2-                                        SSB 5600


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