Requires sellers of prepaid wireless telecommunications services to collect state and county 911 excise taxes. This act changes funding for the Washington telephone assistance program from an excise tax on all switched access lines to general fund appropriations. This act changes funding for the telecommunications relay service and equipment distribution program from an excise tax applied to each switched access line provided by the local exchange companies, to general fund appropriations. This act clarifies retroactively the residential telephone service sales tax exemption; allows fixed interconnected voice over internet protocol telecommunications service to qualify for the residential telephone service exemption for periods prior to the implementation of this act; and prospectively eliminates the sale tax exemptions for residential telephone service, coin-operated telephone service, and mobile telecommunications services provided to out of state customers.   Official Text and Analysis.

Eliminates the requirement that the state Program be implemented through a third-party administrator. It also requires the UTC to report back to the Legislature by December 1, 2017, as to the adequacy of funding under the Program and the potential impacts on carriers and customers when the Program terminates. The substitute bill specifies that state universal service funds can be used for broadband services. It also adds intent language related to the Program and makes a number of nonsubstantive, technical corrections.

Provides that a cable VoIP provider does not have to be directly subject to a local franchise fee, but must be affiliated with a company subject to a franchise fee.

Includes only access lines or equivalents located in Washington in the 40,000 access line or equivalent calculation. Eliminates the authority of the UTC to adopt rules with respect to broadband services for any provider receiving the new distributions.

Allows retailers to charge an additional five cents for each retail sale of prepaid wireless to compensate for the costs of administering the tax for five years. Changes the effective date for the provisions of the bill relating to prepaid wireless to January 1, 2014.

Requires retailers of prepaid wireless telephone service to collect and remit the Enhanced 911 tax. Allows a seller of prepaid wireless to charge an additional 5 cents per retail transaction to offset the cost of collecting the tax. Repeals the taxes funding the Washington Telephone Assistance and Telecommunications Relay Service programs and requires the programs to be funded by State General Fund appropriations. Repeals the state and local sales and use tax exemption for local residential landline service. Establishes a temporary state universal communications services program.

Adds an emergency clause in order for Part I to be effective August 1, 2013..

Repeals the state and local sales and use tax exemption for local residential landline service. It also requires retailers of prepaid wireless telephone service to collect and remit the Enhanced 911 tax. and allows a seller of prepaid wireless to charge an additional 5 cents per retail transaction to offset the cost of collecting the tax. The bill also repeals the taxes funding the Washington Telephone Assistance and Telecommunications Relay Service programs and requires the programs to be funded by State General Fund appropriations, and it establishes a temporary state universal communications services program. The bill has passed both houses of the legislature and has been delivered to the Governor.