BILL REQ. #:  H-3981.2 

Prefiled 01/08/10. Read first time 01/11/10.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to telecommunications services; amending RCW 54.16.330 and 53.08.370; adding new sections to chapter 54.08 RCW; and adding a new section to chapter 54.16 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 54.16.330 and 2004 c 158 s 1 are each amended to read as follows:
     (1) A public utility district in existence on June 8, 2000, may construct, purchase, acquire, develop, finance, lease, license, handle, provide, add to, contract for, interconnect, alter, improve, repair, operate, and maintain any telecommunications facilities within or without the district's limits for the following purposes:
     (a) For the district's internal telecommunications needs; and
     (b) For the provision of wholesale telecommunications services within the district and by contract with another public utility district; and
     (c) For the provision of retail telecommunications services within the district, provided that the district:
     (i) Does not individually provide telecommunications services to the end user as part of its utility function but instead enters into a partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, for the joint provision of telecommunications services to the end user; and
     (ii) Secures the approval of the voters of the district.
     Except as provided in this subsection (1)(c), nothing in this subsection shall be construed to authorize public utility districts to provide telecommunications services to end users.
     (2) A public utility district providing wholesale telecommunications services or retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, shall ensure that rates, terms, and conditions for such services are not unduly or unreasonably discriminatory or preferential. Rates, terms, and conditions are discriminatory or preferential when a public utility district offering rates, terms, and conditions to an entity for wholesale telecommunications services does not offer substantially similar rates, terms, and conditions to all other entities seeking substantially similar services.
     (3) A public utility district providing wholesale telecommunications services shall not be required to but may establish a separate utility system or function for such purpose. In either case, a public utility district providing wholesale telecommunications services or retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, shall separately account for any revenues and expenditures for those services according to standards established by the state auditor pursuant to its authority in chapter 43.09 RCW and consistent with the provisions of this title. Any revenues received from the provision of wholesale telecommunications services or retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, must be dedicated to costs incurred to build and maintain any telecommunications facilities constructed, installed, or acquired to provide such services, including payments on debt issued to finance such services, until such time as any bonds or other financing instruments executed after June 8, 2000, and used to finance such telecommunications facilities are discharged or retired.
     (4) When a public utility district provides wholesale telecommunications services or retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, all telecommunications services rendered to the district for the district's internal telecommunications needs shall be allocated or charged at its true and full value. A public utility district may not charge its nontelecommunications operations rates that are preferential or discriminatory compared to those it charges entities purchasing wholesale or retail telecommunications services.
     (5) A public utility district shall not exercise powers of eminent domain to acquire telecommunications facilities or contractual rights held by any other person or entity to telecommunications facilities.
     (6) Except as otherwise specifically provided, a public utility district may exercise any of the powers granted to it under this title and other applicable laws in carrying out the powers authorized under this section. Nothing in chapter 81, Laws of 2000 limits any existing authority of a public utility district under this title.

NEW SECTION.  Sec. 2   A new section is added to chapter 54.08 RCW to read as follows:
     (1) A district that owns or operates electric facilities for the generation, transmission, or distribution of electric power may expand their operations to include the provision of retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, if the district secures the approval of such expansion by the voters of the district.
     (2) The proposal to expand operations to include retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, may be conducted at any general election held in an even-numbered year. The proposal may be submitted in one of two ways:
     (a) To the voters of the district by resolution of the governing board of the public utility district; or
     (b) To the voters of the district by the county legislative authority on petition of ten percent of the qualified electors of such a district, based on the total vote cast in the last general county election held in an even-numbered year.
     (3) A form of petition for the expansion of a public utility district's operations to include retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, must be submitted to the county auditor within ten months prior to the election at which such a proposition is to be submitted to the voters. Petitions must be filed with the county auditor not less than four months before such an election.
     (4) The county auditor must examine the signatures submitted within thirty days of the signatures being submitted and certify the sufficiency or insufficiency of the signatures. If the petition is found to be insufficient, it must be returned to the public utility district that filed the petition, who may amend and add names to the petition for up to ten days before returning the petition to the county auditor. Upon receipt of an amended petition, the county auditor shall have an additional fifteen days to examine the amended petition and attach a certificate to the petition if the signatures are found to be sufficient.
     (5) Any person who has signed such a petition may not withdraw his or her name from the petition after it has been filed with the county auditor, provided that each signature on the petition is dated and no signature dated prior to the date on which the form of petition was submitted to the county auditor is valid.
     (6) If the petition is certified to be sufficient, the county auditor shall transmit the petition, along with the attached certificate of sufficiency, to the county legislative authority.
     (7) Upon receipt of a petition and a certificate of sufficiency from the county auditor, the county legislative authority must submit the proposition to the voters of the district at the next general election in an even-numbered year according to RCW 29A.04.330. The notice of the election must state the object of such an election, and must in other respects conform to the requirements of the general laws of Washington, governing the time and manner of holding elections.
     (8) The proposal submitted to the voters for their approval or rejection must be expressed on the ballot substantially in the following terms:

     Shall Public Utility District No. . . . of . . . . . . County expand their operations to include retail telecommunications services in partnership with . . . .?

          Yes □
          No □

     (9) Within ten days after such an election, the election board of the county shall canvass the returns, and if at such an election a majority of the voters voting on such a proposition vote in favor of the district's proposal, the district is authorized to expand their operations to include retail telecommunications services.

Sec. 3   RCW 53.08.370 and 2000 c 81 s 7 are each amended to read as follows:
     (1) A rural port district in existence on June 8, 2000, may construct, purchase, acquire, develop, finance, lease, license, handle, provide, add to, contract for, interconnect, alter, improve, repair, operate, and maintain any telecommunications facilities within or without the district's limits for the following purposes:
     (a) For the district's own use; ((and))
     (b) For the provision of wholesale telecommunications services within the district's limits; and
     (c) For the provision of retail telecommunications services within the district, provided that the district:
     (i) Does not individually provide telecommunications services to the end user but instead enters into a partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, for the joint provision of telecommunications services to the end user; and
     (ii) Secures the approval of the voters of the district.
     Except as provided in this subsection (1)(c), nothing in this subsection shall be construed to authorize rural port districts to provide telecommunications services to end users.
     (2) A rural port district providing wholesale telecommunications services or retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, under this section shall ensure that rates, terms, and conditions for such services are not unduly or unreasonably discriminatory or preferential. Rates, terms, and conditions are discriminatory or preferential when a rural port district offering such rates, terms, and conditions to an entity for wholesale telecommunications services does not offer substantially similar rates, terms, and conditions to all other entities seeking substantially similar services.
     (3) When a rural port district establishes a separate utility function for the provision of wholesale telecommunications services or retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, it shall account for any and all revenues and expenditures related to its wholesale telecommunications facilities and services separately from revenues and expenditures related to its internal telecommunications operations. Any revenues received from the provision of wholesale telecommunications services or retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, must be dedicated to the utility function that includes the provision of wholesale telecommunications services for costs incurred to build and maintain the telecommunications facilities until such time as any bonds or other financing instruments executed after June 8, 2000, and used to finance the telecommunications facilities are discharged or retired.
     (4) When a rural port district establishes a separate utility function for the provision of wholesale telecommunications services, all telecommunications services rendered by the separate function to the district for the district's internal telecommunications needs shall be charged at its true and full value. A rural port district may not charge its nontelecommunications operations rates that are preferential or discriminatory compared to those it charges entities purchasing wholesale telecommunications services or retail telecommunications services offered in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision.
     (5) A rural port district shall not exercise powers of eminent domain to acquire telecommunications facilities or contractual rights held by any other person or entity to telecommunications facilities.
     (6) Except as otherwise specifically provided, a rural port district may exercise any of the powers granted to it under this title and other applicable laws in carrying out the powers authorized under this section. Nothing in chapter 81, Laws of 2000 limits any existing authority of a rural port district under this title.

NEW SECTION.  Sec. 4   A new section is added to chapter 54.08 RCW to read as follows:
     (1) A rural port district may expand its operations to include the provision of retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, if the district secures the approval of such an expansion by the voters of the district.
     (2) The proposal to expand operations to include retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, may be conducted at any general election held in an even-numbered year. The proposal may be submitted in one of two ways:
     (a) To the voters of the district by resolution of the governing board of the rural port district; or
     (b) To the voters of the district by the county legislative authority on petition of ten percent of the qualified electors of such a district, based on the total vote cast in the last general county election held in an even-numbered year.
     (3) A form of petition for the expansion of a rural port district's operations to include retail telecommunications services in partnership with a nonprofit organization, or a federally recognized tribe or its political subdivision, must be submitted to the county auditor within ten months prior to the election at which such a proposition is to be submitted to the voters. Petitions must be filed with the county auditor not less than four months before such an election.
     (4) The county auditor must examine the signatures submitted within thirty days of the signatures being submitted and certify the sufficiency or insufficiency of the signatures. If the petition is found to be insufficient, it must be returned to the rural port district that filed the petition, who may amend and add names to the petition for up to ten days before returning the petition to the county auditor. Upon receipt of an amended petition, the county auditor shall have an additional fifteen days to examine the amended petition and attach a certificate to the petition if the signatures are found to be sufficient.
     (5) Any person who has signed such a petition may not withdraw his or her name from the petition after it has been filed with the county auditor, provided that each signature on the petition is dated and no signature dated prior to the date on which the form of petition was submitted to the county auditor is valid.
     (6) If the petition is certified to be sufficient, the county auditor shall transmit the petition, along with the attached certificate of sufficiency, to the county legislative authority.
     (7) Upon receipt of a petition and a certificate of sufficiency from the county auditor, the county legislative authority must submit the proposition to the voters of the district at the next general election in an even-numbered year according to RCW 29A.04.330. The notice of the election must state the object of such an election, and must in other respects conform to the requirements of the general laws of Washington, governing the time and manner of holding elections.
     (8) The proposal submitted to the voters for their approval or rejection must be expressed on the ballot substantially in the following terms:

     Shall Rural Port District No. . . . of . . . . . . County expand their operations to include retail telecommunications services in partnership with . . . .?

          Yes □
          No □

     (9) Within ten days after such an election, the election board of the county shall canvass the returns, and if at such an election a majority of the voters voting on such a proposition vote in favor of the rural port district's proposal, the district is authorized to expand their operations to include retail telecommunications services.

NEW SECTION.  Sec. 5   A new section is added to chapter 54.16 RCW to read as follows:
     (1) By July 1, 2010, public utility districts that own, lease, or have rights to telecommunications infrastructure shall provide information as requested by the department of information services to the third party mapping vendor under contract with the department of information services, in conjunction with the department of information services' broadband mapping and planning grants from the federal department of commerce and the national telecommunications and information administration. This information must include, but not be limited to, the following information, to the extent available:
     (a) The location of middle mile and last mile infrastructure;
     (b) The location of dark fiber, including the location and use of nontelecommunications fiber, such as fiber used for traffic lights;
     (c) Identification of broadband service area;
     (d) The penetration and adoption rate of broadband in their services area;
     (e) The type of technology used; and
     (f) The advertised speeds.
     (2) For purposes of this section, "telecommunications infrastructure" includes conduits, wires, fiberoptic cable or lines, coaxial cable, copper twisted pair telephone lines, receivers, transmitters, and broadcast radio frequency bandwidth.

NEW SECTION.  Sec. 6   A new section is added to chapter 54.08 RCW to read as follows:
     (1) By July 1, 2010, rural port districts that own, lease, or have rights to telecommunications infrastructure shall provide information as requested by the department of information services to the third party mapping vendor under contract with the department of information services, in conjunction with the department of information services' broadband mapping and planning grants from the federal department of commerce and the national telecommunications and information administration. This information must include, but not be limited to, the following information, to the extent available:
     (a) The location of middle mile and last mile infrastructure;
     (b) The location of dark fiber, including the location and use of nontelecommunications fiber, such as fiber used for traffic lights;
     (c) Identification of broadband service area;
     (d) The penetration and adoption rate of broadband in their services area;
     (e) The type of technology used; and
     (f) The advertised speeds.
     (2) For purposes of this section, "telecommunications infrastructure" includes conduits, wires, fiberoptic cable or lines, coaxial cable, copper twisted pair telephone lines, receivers, transmitters, and broadcast radio frequency bandwidth.