SENATE BILL REPORT

SB 6770

BYSenators Benitz, Sutherland and Williams

Provisions affecting alternate operator services companies and providing consumer protection penalties.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):January 25, 1990; January 30, 1990

Majority Report:     That Substitute Senate Bill No. 6770 be substituted therefor, and the substitute bill do pass.

     Signed by Senators Benitz, Chairman; Metcalf, Owen, Patrick, Stratton.

Senate Staff:Phil Moeller (786-7455)

                February 5, 1990

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, JANUARY 30, 1990

BACKGROUND:

Alternate operator services are provided by companies as an alternative to traditional long distance telecommunication carriers.  In 1988 the Legislature enacted provisions that directed the Washington Utilities and Transportation Commission (WUTC) to require minimum disclosure guidelines for these services (RCW 80.36.520).  A violation of these provisions is covered under the Consumer Protection Act.

Complaints have been registered contending that many telephones in public places are served by alternate operator services but that disclosure rules are not followed.  The WUTC appears to lack adequate enforcement power to force these companies to comply with disclosure requirements.

SUMMARY:

The definition of alternate operator services is modified so as to exclude local exchange companies.  Companies providing alternate operator services are required to register with the WUTC prior to providing those services.  The WUTC may deny or suspend registration for an alternate operator services company if it fails to meet service or disclosure requirements set by the WUTC.

Penalties up to $1,000 per day may be assessed on alternate operator services companies providing services while not registered with the WUTC.

Alternate operator services companies are required to list all locations within the state where they provide services.

EFFECT OF PROPOSED SUBSTITUTE:

The definition of alternate operator services is further clarified so as to exclude the affiliates of local exchange companies as well as facility-based long distance providers and their affiliates.

The commission is directed to require alternate operator services to orally inform customers on the procedure to access a facility-based long distance provider.

It is clarified that an alternate operator service must provide beneficial telecommunications service to citizens of the state.

Appropriation:  none

Revenue:   none

Fiscal Note:    requested January 24, 1990

Senate Committee - Testified:   Raymond Day, Jr., WUTC; Mike Woodin, AT&T (pro); Paula Selis, Attorney General's Office (pro)