WSR 20-12-021

PERMANENT RULES

UTILITIES AND TRANSPORTATION

COMMISSION

[Docket UT-190437, General Order R-598—Filed May 27, 2020, 10:13 a.m., effective June 27, 2020]

In the matter of amending chapter 480-123 WAC, Universal service, to implement legislation amending and extending the state universal communications service program.

1 STATUTORY OR OTHER AUTHORITY: The Washington utilities and transportation commission (commission) takes this action under Notice No. WSR 20-05-040, filed with the code reviser on February 12, 2020. The commission has authority to take this action pursuant to RCW 80.01.040, 80.04.160, 80.36.630, 80.36.650, 80.36.660, 80.36.670, 80.[3]6.680, 80.36.690, and 80.36.700.

2 STATEMENT OF COMPLIANCE: This proceeding complies with the Administrative Procedure Act (chapter 34.05 RCW), the State Register Act (chapter 34.08 RCW), the State Environmental Policy Act of 1971 (chapter 43.21C RCW), and the Regulatory Fairness Act (chapter 19.85 RCW).

3DATE OF ADOPTION: The commission adopts this rule on the date this order is entered.

4CONCISE STATEMENT OF PURPOSE AND EFFECT OF THE RULE: RCW 34.05.325(6) requires the commission to prepare and publish a concise explanatory statement about an adopted rule. The statement must identify the commission's reasons for adopting the rule, describe the differences between the version of the proposed rules published in the register and the rules adopted (other than editing changes), summarize the comments received regarding the proposed rule changes, and state the commission's responses to the comments reflecting the commission's consideration of them.

5 To avoid unnecessary duplication in the record of this docket, the commission designates the discussion in this order, including appendices, as its concise explanatory statement. This order provides a complete but concise explanation of the agency's actions and its reasons for taking those actions.

6REFERENCE TO AFFECTED RULES: This order amends the following sections of the Washington Administrative Code: Amending WAC 480-123-020 Definitions, 480-123-030 Contents of petition for eligible telecommunications carriers, 480-123-070 Annual certifications and reports, 480-123-100 Prerequisites for requesting program support, 480-123-110 Petitions for eligibility to receive program support, 480-123-120 Eligibility and distributions from the program, 480-123-130 Reporting requirements, 480-123-150 Advisory board, and 480-123-160 Resolution of disputes.

7 PREPROPOSAL STATEMENT OF INQUIRY AND ACTIONS THEREUNDER: The commission filed a Preproposal statement of inquiry (CR-101) on August 8, 2019, at WSR 19-17-008. The statement advised interested persons that the commission was considering entering a rule making concerning the possible adoption of proposed revisions to chapter 480-123 WAC, Universal service, to implement the provisions of sections 11 through 18 of 2SSB 5511 (Broadband bill), enacted in the 2019 legislative session. The commission also informed persons of this inquiry by providing notice of the subject and the CR-101 to everyone on the commission's list of persons requesting such information pursuant to RCW 34.05.320(3) and by sending notice to all registered telecommunications companies and the commission's list of telecommunications attorneys. Pursuant to the notice, the commission received comments on September 9, 2019. The commission issued draft rules on November 15, 2019, and received comments on December 16, 2019.

8SMALL BUSINESS ECONOMIC IMPACT ANALYSIS:On November 15, 2019, the commission issued a small business economic impact questionnaire to all interested persons. The commission received no responses to this questionnaire. The proposed rules implement the Broadband bill and provide the opportunity for eligible telecommunications companies to obtain state universal service support. The commission has no basis to find that any costs businesses will incur to comply with the rules will be more than minor. Pursuant to RCW 19.85.030 (1)(a), therefore, no small business economic impact statement is required.

9NOTICE OF PROPOSED RULE MAKING: The commission filed a notice of Proposed rule making (CR-102) on February 12, 2020, at WSR 20-05-040. The commission scheduled this matter for oral comment and adoption under Notice No. WSR 20-05-04[0] at 9:30 a.m. on March 30, 2020, in the Commission's Richard Hemstad Hearing Room, 621 Woodland Square Loop S.E., Lacey, WA. The notice provided interested persons the opportunity to submit written comments to the commission. On February 21, 2019, the commission issued a notice rescheduling the adoption hearing to May 7, 2020, at 1:30 p.m., and on April 3, 2020, due to the COVID-19 public health crisis, the commission issued a notice converting the hearing to a virtual hearing, requiring telephonic or online participation.

10WRITTEN COMMENTS:The commission received written comments in response to the CR-102 from the Washington Independent Telecommunications Association (WITA). A matrix summarizing those comments and the responses of commission staff (staff) is attached as Appendix A to this order.

11RULE-MAKING HEARING: The commission considered the proposed rules for adoption at a rule-making hearing on May 7, 2020, before Chair David W. Danner, Commissioner Ann E. Rendahl, and Commissioner Jay M. Balasbas. The commission heard oral comments from Sean Bennett, regulatory analyst, representing staff; Richard A. Finnigan on behalf of WITA; and Lisa Gafken from the Public Counsel Unit of the Washington Attorney General's Office (public counsel). WITA reiterated its written suggestions for the changes to the proposed rules that staff recommends the commission not adopt. Public counsel stated its support for the proposed rules and staff's recommendations.

12SUGGESTIONS FOR CHANGES THAT ARE REJECTED/ACCEPTED:Written and oral comments suggested changes to the proposed rules. The suggested changes and staff's recommendations for rejecting or accepting the suggested changes are included in Appendix A. The commission accepts and adopts staff's recommendations as its own. The accepted changes provide greater clarity and consistency with the intent of the proposed rules.

13 With respect to changes the commission does not accept, we agree with staff and public counsel that including a buildout requirement for companies that claim eligibility for funding under Criterion One pursuant to WAC 480-123-110 (1)(j)(i) and 480-123-120(2) (described in paragraph 19, following) is reasonable and consistent with the legislature's intent in the Broadband bill to promote greater access to broadband services. This is largely a theoretical issue, moreover, given that WITA is unaware of any company that will petition for eligibility under this criterion. In a similar vein, we also agree with staff that the rules appropriately leave to the advisory board the future determination of eligibility and distribution calculations for other providers. It is unknown whether any such providers will seek state universal service funding, much less the nature of any such provider or its operations, and any attempt to establish baseline requirements at this point would be inefficient at best.

14COMMISSION ACTION:After considering all of the information regarding this proposal, the commission finds and concludes that it should amend and adopt the rules as proposed in the CR-102 at WSR 20-05-040 with the minor changes described in paragraph 26 of this order. The Broadband bill amends the state universal service fund program (program) to support broadband in addition to basic local telecommunications services. Eligible providers may now receive a distribution from the program if they have adopted a plan to provide, enhance, or maintain broadband services in their service areas. The proposed rules implement this legislative directive.

15 Broadband Definition. The proposed rules first define "broadband." Federal law defines advanced telecommunications capability as "high-speed, switched broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology."1 The proposed rules mirror this definition. The rules do not specify download and upload speeds, providing instead that the commission will establish appropriate minimums by order to more easily reflect the rapid advancement of internet access technology. In this order, we establish initial minimum standards of 25 megabits per second download and 3 megabits per second upload (25/3) for service to be considered high-speed broadband for purposes of these rules. This standard was supported by staff, WITA, and public counsel, and is consistent with the minimum speeds established in the definition of "broadband" in RCW 42.330.530(2). The commission will review and update these standards as technology advances and consumer demand changes.

1	47 U.S.C. § 706.

16 Eligibility Criteria. Consistent with the Broadband bill, the rules also revise the eligibility criteria for telecommunications carriers seeking support. Rather than focus on a company's overall rate of return as the commission has done previously, the proposed rules establish four different eligibility criteria for determining the extent to which a petitioning company will use the requested funds to promote and sustain the deployment of broadband in rural areas while continuing to provide basic telecommunications services. A company may petition for funding under any one of the four criteria and must satisfy only that criterion to receive program support.

17 Staff has developed benchmarks for the number of locations to which each company should deploy broadband and the costs to build to such locations. Staff's cost benchmarks are based on the Federal Communications Commission (FCC) Alternative Connect America Cost Model (A-CAM) analysis and are set out for each WITA company in the chart below:2

Staff has calculated the benchmarks using the company-specific A-CAM cost per location and a company's estimated program support through fiscal year 2024. Staff estimates total program support, based on the current fund balance and an annual $5 million appropriation (less administrative expenses) to be $6,078,083 in fiscal year 2021 and $4,850,000 annually for fiscal years 2022-2024. If program support increases or decreases, a company's broadband deployment obligation will be adjusted proportionately.

Company	Annual CAM Cost per* Location		Category One/Three Broadband Deployment Obligation	Category Two Broadband Deployment Obligation
Asotin	$	3,082.67	13	26
Consolidated	$	2,876.66	199	398
Hat Island	$	810.27	1	2
Hood Canal	$	1,884.18	39	78
Inland	$	1,678.16	127	254
Kalama	$	2,145.80	61	122
Lewis River	$	695.76	132	264
McDaniel	$	718.37	175	350
Pend Oreille	$	1,653.83	114	228
Pioneer	$	3,635.10	22	44
Ranier Connect	$	1,706.91	50	100
Skyline	$	5,133.44	12	24
St. John	$	4,145.62	11	22
Tenino	$	5,926.93	21	42
Toledo	$	7,803.78	20	40
Wahkiakum	$	5,954.35	20	40
Westgate (Weavtel)	$	1,562.67	35	70
Whidbey	$	365.39	1139	2278
Total	$	2,876.66	2192	4384

*	Carrier Cost is found from one of two FCC Public Notices. Seehttps://docs.fcc.gov/public/attachments/DA-19-373A1.pdf or https://docs.fcc.gov/public/attachments/DA-16-1141A1.doc.

18 We will rely on these benchmarks when determining company eligibility, obligations, and levels of program support. Some companies may contend that staff's benchmark cost per location is too low and therefore produces more locations than is realistically appropriate given the actual cost per location. In such circumstances, the petitioner may provide evidence of its actual cost of deploying 25/3 locations or propose an alternative approach for estimating the cost of deploying 25/3 locations as a substitute mechanism to calculate the applicable requirement. Staff will review a company's proposed alternative methodology and provide a recommendation to the commission.3

For example, Consolidated Communications of Washington (Consolidated) is a price cap company. The FCC's current cost information per location for price cap companies is premised on a 10/1 build, not 25/3. Accordingly, Consolidated and Staff have agreed, subject to Commission approval, to use the statewide average A-CAM cost per location at 25/3 for all other WITA members as a surrogate.

19 Criterion One. Rate of return review was the hallmark of the program prior to passage of the Broadband bill. The revised rules retain such a review, coupled with an obligation to build out broadband infrastructure, as one eligibility option. To encourage companies qualifying under this criterion to deploy broadband more extensively, the commission will divide the distribution of funds for the program into two parts. One part will be funds for maintenance of the existing network (including traditional telephony) and one part for construction.4 A company that satisfies both the rate of return and buildout requirements will receive the full distribution. If an otherwise eligible petitioner does not satisfy the rate of return requirements,5 but commits to deploying broadband to the number of locations identified in staff's benchmark, the company will receive a partial allocation for construction but will not obtain funds for maintenance of its existing network.

This distinction is for eligibility and distribution purposes. Actual expenditures may differ. The recipient of program funds will need to explain how the funds were spent in its compliance report. The allocation for distribution purposes is not intended to limit a company's flexibility on how it spends the funds as long as they are used for their intended purpose.

Consistent with how the commission has acted in the past in analyzing rate of return review under the program, the review will be flexible to take into account individual company circumstances. For example, it may be that a company undertook a construction program during the test year that resulted in the allocation of employee time to plant that is not yet in service, which resulted in a corresponding reduction to operating expenses. This type of activity can produce a rate of return that is higher than it would be under normal operations. The commission will take such circumstances into account in its evaluation of a company's eligibility.

20 Criterion Two. This criterion provides a direct incentive to petitioners to construct broadband infrastructure to additional 25/3 locations. The company must commit to deploy broadband to the number of locations in staff's benchmark, and has the option to commit to meeting twice the level of the staff benchmark over the remaining life of the program.6 If a petitioner relying on this criterion commits to construct 25/3 locations to twice the number of locations in the staff benchmark through a statement signed by a company officer, the company will be entitled to its full distribution from the program each year without a rate of return review.

6	The program currently expires on July 1, 2025. RCW 80.36.650(9).

21 Criterion Three. The FCC has established goals for virtually all carriers for the deployment of 25/3 service, which they must meet under timelines that vary by the category of carrier. The chart in paragraph 17 above reflects the number of locations staff has developed (above and beyond the FCC goals) to which 25/3 service should be deployed for purposes of the program. Some companies have already constructed broadband infrastructure to the number of locations specified in the FCC goals and staff's benchmark. For these companies, an officer must certify that the number of locations within the applicant's service area to which 25/3 service can be deployed within ten business days (and without an extraordinary commitment of resources or construction costs exceeding an ordinary service activation fee) meets or exceeds the FCC goal plus staff's benchmark. With that certification, a petitioner will be eligible for the full distribution and will not be subject to a rate of return review. This approach recognizes that these companies are making substantial progress in the deployment of broadband consistent with the 25/3 standard.

22 Criterion Four. Many of the companies have undertaken aggressive construction programs that have resulted in the availability of 25/3 service to the entirety of the company's existing customer base. The only location-based condition for receipt of the program distribution for these petitioners is that a company officer certify that 25/3 service is available to all active customers who request the service within the company's service area. If a petitioner makes this certification and is otherwise eligible, the company will not be subject to a rate of return review and is eligible for the full amount of its distribution.

23 Other Eligibility Factors. The statute establishes eligibility requirements which are also included in the proposed rules. Only certain carriers are eligible, and they must file a broadband plan with their petition.7 WITA observes that it is very difficult to prepare plans that exceed a twelve to eighteen month planning horizon except in very general ways. We generally agree. Accordingly, we expect the broadband plan of petitioners eligible under Criterion One or Two to be detailed as to the coming year, but more general as to the timeframe beyond that period. Carriers eligible under Criterion Three or Four have already deployed 25/3 capable networks to most or all current customer locations so the commission expects their broadband plans to be less specific with respect to construction activities. WITA has also expressed concern about the timing for which locations can be counted for Criterion Two and Three eligibility. The commission adopts January 1, 2018, as the start date to meet staff location benchmarks.

7	RCW 80.36.650 (3)(ii).

24 Consolidated Petitions. Some companies have requested that the commission allow affiliated companies the option of submitting a collective petition covering all affiliated companies as a means of reducing costs. Staff is concerned that companies filing such petitions might seek to build to staff location benchmarks in the exchange of the affiliate that has the lowest costs to build, rather than throughout all of their service territories. To address both concerns, we will allow, but not require, affiliated companies to submit a consolidated petition, but the location benchmarks will remain specific to each affiliated operating company.

25 Compliance Reporting. The rules also require carriers to file broadband availability data. They must file company-specific FCC Form 477 data with the commission until the Digital Opportunity Data Collection polygons are available.8 Carriers are required to file this data annually with the FCC (or the entity the FCC designates).9 Companies must file the same data with the commission within fourteen calendar days of the date the data is required to be filed with the FCC (or its designated entity) and in the same format.10 Upon receiving program support, a company must also file its broadband availability polygons annually with the commission throughout the program's operation, even if the company no longer receives program support.

8	The FCC requires companies to provide polygons, or shapes, with metadata for geographic areas for which a company makes broadband available at different speeds and technology types.
9	The FCC currently requires such data to be filed with USAC, the Universal Service Administrative Company.
10	After their initial filing, companies must recertify their maps by June 30 each year and update their maps within six months of completing new broadband deployments (buildout or acquisition). Accordingly, a company receiving program support may file this data more than once in a particular year and each time must file it with both the FCC (or its designated entity) and the commission.

26CHANGES FROM PROPOSAL: The commission adopts the proposed rules with the following changes from the text noticed at WSR 20-05-040:

WAC 480-123-020, delete "speed" in the fifth sentence of the definition of "Broadband service."

WAC 480-123-110 (1)(h), insert ", or its affiliate, if appropriate," after "the provider" and before "will continue."

WAC 480-123-120(1), replace "category" with "criterion" and "and" with "or" in the third sentence.

WAC 480-123-120(6), after the first sentence, add the following sentence: "If there is a pro rata reduction or increase in support, the company's broadband buildout obligation will be adjusted proportionately."

WAC 480-123-130 (1)(b), delete everything after "support" and add "during the preceding year to maintain, provide, or enhance telecommunications services."

WAC 480-123-130 (1)(c), replace "United States" with "Universal Service" in the second sentence.

27STATEMENT OF ACTION; STATEMENT OF EFFECTIVE DATE: After reviewing the entire record, the commission determines that WAC 480-123-020, 480-123-030, 480-123-070, 480-123-100, 480-123-110, 480-123-120, 480-123-130, 480-123-150, and 480-123-160 should be amended to read as set forth in Appendix B, as rules of the Washington utilities and transportation commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 9, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 9, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 9, Repealed 0.

ORDER

THE COMMISSION ORDERS:

28 (1) The commission amends and adopts WAC 480-123-020, 480-123-030, 480-123-070, 480-123-100, 480-123-110, 480-123-120, 480-123-130, 480-123-150, and 480-123-160 to read as set forth in Appendix B, as rules of the Washington utilities and transportation commission, to take effect on the thirty-first day after the date of filing with the code reviser pursuant to RCW 34.05.380(2).

29 (2) This order and the rule set out below, after being recorded in the commission's register, shall be forwarded to the code reviser for filing pursuant to chapters 80.01 and 34.05 RCW and 1-21 WAC.

DATED at Olympia, Washington, May 27, 2020.

Washington Utilities and

Transportation Commission

David W. Danner, Chair

Ann E. Rendahl, Commissioner

Jay M. Balasbas, Commissioner

Appendix A

(Comment Summary Matrix)

OVERVIEW COMMENTS	WITA	STAFF RESPONSE
WAC 480-123-110 (1)(j)(i) and 480-123-120(2), companies that elect Criterion One have both a rate-of-return review and are subject to meeting the commission's broadband buildout obligation. Fifty percent of funds are based on the rate of return review and the remaining fifty percent is based on a companies [company's] commitment and progress, towards meeting the commission's buildout requirement.	With this eligibility criterion, companies are not relieved of rate-of-return review and could lose half of its support. Since no reliefe [relief] from rate-of-return review, it is not fair to require buildout to additional locations.	This structure was designed to promote broadband buildout while also recognizing that companies need to maintain their existing network. Under sole rate-of-return review, either a company receives one hundred percent of funding or zero funding. The current proposed approach will allow a company to receive one hundred percent funding, or fifty percent of its funding if it has either, an excessive rate of return, or, if it is unable to commit to the commission's broadband buildout requirement (based on the A-CAM cost or a companies [company's] actual cost of delivering service). Considering the programs, goals, making a determination based solely on a backward looking regulated basis is not pragmatic.
WAC 480-123-020 broadband service definition. Second to last sentence, speed standards language.	"speed" should be removed from standards that a company must meet. Standards should not be limited to speed.	Staff agrees. Simply remove the word "speed" from the fifth sentence. The revised sentence will read "Any broadband standards that are established in these rules or by commission order may be met by the communications provider or its affiliate or a combination of both.["]
WAC 480-123-110 (1)(h)	WITA believes language should be adjusted to include affiliate langauge [language] as not all companies provide retail broadvand [broadband] services directly to end users. Adjust language to read "and the provider will continue to provide broadband services" should be changed to "and the provider through itself or its affilitiate will continue to provide broadband services."	Staff agrees. Edit the language to read "and the provider, or its affiliate if appropriate, will continue to provide broadband services."
WAC 480-123-120(1)	Language should be adjusted to read "the provider's plan to provide, maintain, or enchance [enhance]" to be consistent with statute and rule language. Additionally, "eligibility category" should be "eligibility criterion."	Staff agrees. Adjust language to read "provide, maintain, or enhance" and change the word "category" to "criterion."
WAC 480-123-120(6)	If a pro rata reduction in support, there should be a corresponding reduction in the number of locations required to meet the broadband obligation. Add this language to the rule.	Staff agrees in part. Language should be edited to provide that if there is a pro rata change (increase or decrease) the number of locations should be adjusted accordingly. After the first sentence, add "If there is a pro rata reduction or increase in support, the company's broadband buildout obligation will be adjusted proportionately."
WAC 480-123-130 (1)(b)	"telecommunication services" should be inserted to differentiate from subsection (1)(c).	Staff agrees. Edit language to read "Detailed information on how the provider used program support during the preceding year to maintain, provide, or enhance telecommunications services."
WAC 480-123-120(4) leaves much of the development of eligibility and distribution calculations to the advisory board.	Believes there should be a baseline and that the "other commuincations provider" must commit to provide broadband service to at least the designated speed and to at lease those numbers of locations that the incumbent local exchange carrier would provide under federal and state standards.	Staff disagrees. Without knowing the specifics, i.e. what company is seeking support, support amount, the area served, or the technology used and speeds offered, staff believes setting a baseline is premature.
Buildout requirement confirmation.	See WITA's Comment Table.	Staff and WITA have tentatively confirmed the current FCC's and UTC's buildout requirements. The number of locations for buildout are shown on the attached document entitled "Broadband Deployment Methodology." The specific locations for buildout are tentative because they are estimated based on the amount of support each company will receive over the next four years and the amount will be divided by the annual A-CAM cost per location (or other commission approved cost factor). If a company's support ultimately is increased or decreased, the buildout requirement would be adjusted accordingly.

Appendix B

WAC 480-123—AMENDED RULES

AMENDATORY SECTION(Amending WSR 15-08-043, filed 3/26/15, effective 4/26/15)

WAC 480-123-020Definitions.

As used in this chapter:

"Applicant" means any person applying to an ((ETC))eligible telecommunications carrier for new service or reconnection of discontinued service.

"Broadband service" means any service providing advanced telecommunications capability, including internet access and access to high quality voice, data, graphics or video. To be considered advanced telecommunications, broadband must be at, or above, a minimum download speed and a minimum upload speed. The commission will establish a minimum upload speed standard and a minimum download speed standard for broadband service to be considered advanced telecommunications. The commission will take federal and state standards into consideration when it sets the standard. Any broadband standards that are established in these rules or by commission order may be met by the communications provider or its affiliate or a combination of both. The affiliate cannot be receiving support from this program.

"Communications provider" or "provider" means a company providing communications service that assigns a working telephone number to a final consumer for intrastate wireline or wireless communications services or interconnected voice over internet protocol service, and includes local exchange carriers.

"Communications services" includes telecommunications services and information services and any combination of these services.

"Eligible telecommunications carrier" and "ETC" means a carrier designated by the commission as eligible to receive support from federal universal service mechanisms in exchange for providing services supported by federal universal service mechanisms.

"Facilities" means for the purpose of WAC 480-123-030 (1)(b) any physical components of the telecommunications network that are used in the transmission or routing of the services that are supported by federal universal service mechanisms.

".shp format" means the format used for creating and storing digital maps composed of shape files capable of being opened by the computer application ArcGIS™.

"Program" means the state universal communications services program created in RCW 80.36.650.

"Service area" means all of the designated exchanges served by a company in the state.

"Service outage" means a significant degradation in the ability of an end user to establish and maintain a channel of voice communications as a result of failure or degradation in the performance of a communications provider's network.

"Substantive" means sufficiently detailed and technically specific to permit the commission to evaluate whether federal universal service support has had, or will have, benefits for customers. For example, information about investments and expenses that will provide, increase, or maintain service quality, signal coverage, or network capacity, and information about the number of customers that benefit, and how they will benefit is sufficient to enable evaluation.

"Sworn statement" means a statement made under penalty of perjury, as set forth in RCW 9A.72.085.

"Telecommunications" has the same meaning as defined in 47 U.S.C. Sec. 153(43).

AMENDATORY SECTION(Amending WSR 15-08-043, filed 3/26/15, effective 4/26/15)

WAC 480-123-030Contents of petition for eligible telecommunications carriers.

(1) Petitions for designation as an ETC must contain:

(a) A description of the area or areas for which designation is sought;

(b) A statement that the carrier will offer the services supported by federal universal service support mechanisms throughout the area for which it seeks designation, either using its own facilities or a combination of its own facilities and resale of another carrier's services (including the services offered by another ETC);

(d) A substantive plan of the investments to be made with initial federal support during the first two years in which support is received and a substantive description of how those expenditures will benefit customers;

(e) A statement that the carrier will advertise the availability of services supported by federal universal service mechanisms, including advertisement of applicable telephone assistance programs, such as Lifeline, that is reasonably calculated to reach low-income consumers not receiving discounts;

(f) For wireless petitioners, a map in .shp format of proposed service areas (exchanges) with existing and planned locations of cell sites and shading to indicate where the carrier provides and plans to provide commercial mobile radio service signals;

(g) Information that demonstrates its ability to remain functional in emergency situations including a description of how it complies with WAC 480-120-411 or, for a wireless carrier, information that demonstrates that, when commercial power is not available, it has a reasonable amount of backup power (fixed, portable or other backup power source) for its cell sites, and backup power for its switches ((is)) as prescribed in WAC 480-120-411(3) for LEC central offices; and cell sites do not include any small cell facility as defined in RCW 80.36.375 (2)(d) or any in building wireless installation; and

(h) Information that demonstrates that it will comply with the applicable consumer protection and service quality standards of chapter 480-120 WAC or, for a wireless carrier, a commitment to comply with the Cellular Telecommunications and Internet Association's (CTIA) Consumer Code for Wireless Service. Information regarding the version of the CTIA code adopted and where to obtain it is set forth in WAC 480-123-999.

(2) A company officer must submit the petition in the manner required by RCW 9A.72.085.

AMENDATORY SECTION(Amending WSR 15-08-043, filed 3/26/15, effective 4/26/15)

WAC 480-123-070Annual certifications and reports.

Not later than July 1st of each year, every ETC that receives federal support from any category in the federal high-cost fund must certify or report as described in this section. The certifications and reports are for activity related to Washington state in the period January 1st through December 31st of the previous year. A company officer must submit the certifications in the manner required by RCW 9A.72.085.

(1) Report on use of federal funds and benefits to customers.

(a) The report must provide a substantive description of investments made and expenses paid with support from the federal high-cost fund.

The report must include the company's gross capital expenditures and operating expenses made with federal high-cost support received by the ETC in the preceding calendar year along with a description of major projects and affected exchanges. A rate of return wireline ETC must also include a copy of its NECA-1 report for the preceding calendar year.

(b) Every ETC must provide a substantive description of the benefits to consumers that resulted from the investments and expenses reported pursuant to (a) of this subsection.

(2) Local service outage report.

(a) The report must include detailed information on any outage in the service area (during the prior calendar year) of at least thirty minutes in duration in which the ETC owns, operates, leases, or otherwise utilizes facilities, that potentially affect:

(i) At least ten percent of the end users; or

(ii) A 911 special facility, as defined in 47 C.F.R. Sec. 4.5(e).

(b) Specifically, the ((eligible telecommunications carrier's))ETC's annual report must include information detailing:

(i) The date and time of onset and duration of the outage;

(ii) A brief description of the outage and its resolution;

(iii) The particular services affected;

(iv) The geographic areas affected by the outage;

(v) Steps taken to prevent a similar situation in the future; and

(vi) The number of customers affected.

(3) Report on failure to provide service. The report must include the number of requests for service from potential customers within its designated service area that were unfulfilled during the prior calendar year. The ETC must also detail how it attempted to provide service to those potential customers.

(4) Report on complaints per one thousand connections (fixed or mobile). The report must provide separate totals for the number of complaints that the ETC's customers made to the Federal Communications Commission and the consumer protection division of the office of the attorney general of Washington. The ETC must also report the number of consumer complaints in each general category (for example, billing disputes, service quality).

(5) Certification of compliance with applicable service quality standards and consumer protection rules. Certify that it met substantially the applicable service quality standards and consumer protection rules found in WAC 480-123-030 (1)(h).

(6) Certification of ability to function in emergency situations. Certify that it had the ability to function in emergency situations based on continued adherence to the standards found in WAC 480-123-030 (1)(g).

(7) Advertising certification, including advertisement on Indian reservations. Certify it has publicized the availability of its applicable telephone assistance programs, such as Lifeline, in a manner reasonably designed to reach those likely to qualify for service, including residents of federally recognized Indian reservations within the ETC's designated service area. Such publicity should include advertisements likely to reach those who are not current customers of the ETC within its designated service area.

(8) Report filing alternatives. To the extent the company has filed a report with a federal agency that provides the data requested by the commission, the company can refer to that docket number and the date the information was filed with the ((commission))federal agency.

AMENDATORY SECTION(Amending WSR 14-21-045 and WSR 14-12-008, filed 10/7/14 and 5/22/14, effective 6/22/14)

WAC 480-123-100Prerequisites for requesting program support.

(1) Wireline communications providers. A wireline communications provider may seek support for telecommunications and broadband services from the program if the provider satisfies all of the following requirements:

(a) The provider is a local exchange company as defined in WAC 480-120-021 that serves ((less))fewer than forty thousand access lines within the state;

(b) The provider is an incumbent local exchange carrier as defined in 47 U.S.C. Sec. 251(h) or has been designated as an incumbent local exchange carrier by the Federal Communications Commission;

(c) The provider offers basic residential and business exchange telecommunications services as set forth in WAC 480-120-021 and RCW 80.36.630;

(d) The ((provider's rates for residential local exchange service, plus mandatory extended area service charges, are no lower than the local urban rate floor established by the commission as the benchmark rate based on the Federal Communications Commission's most current calculation of a national local urban rate floor pursuant to 47 C.F.R. Sec. 54.318 in the year in which the provider files a petition for support; provided that, if the provider's rates exceed the benchmark, the provider may not seek support from the program for the purpose of reducing those rates towards or to the benchmark))provider has established a plan, as described in WAC 480-123-110, to provide, maintain, or enhance broadband service; and

(e) The provider has been designated by the commission as an ((eligible telecommunications carrier))ETC for purposes of receiving federal universal service support pursuant to 47 C.F.R. Part 54 Subpart D – Universal Service Support for High Cost Areas, with respect to the service areas for which the provider is seeking program support.

(2) Wireless communications providers. A wireless communications provider may seek support for telecommunications and broadband services from the program if the provider satisfies all of the following requirements:

(a) The provider is licensed by the Federal Communications Commission to offer commercial mobile radio service within the state of Washington;

(b) The provider serves fewer than the equivalent of forty thousand access lines in Washington; ((and))

(c) The provider has established a plan, as described in WAC 480-123-110, to provide, maintain, or enhance broadband service; and

(d) The provider has been designated by the commission as an ((eligible telecommunications carrier))ETC for purposes of receiving federal universal service support pursuant to 47 C.F.R. Part 54 Subpart D – Universal Service Support for High Cost Areas, with respect to the service areas for which the provider is seeking program support.

(3) Other communications providers. A communications provider other than a provider specified in subsection (1) or (2) of this section may seek support for telecommunications and broadband services from the program if the provider satisfies all of the following requirements:

(a) The provider is authorized by both the Federal Communications Commission and the commission to provide telecommunications service within the state of Washington;

(b) The provider demonstrates that it can provide the same or comparable services at the same or similar service quality standards at a lower price;

(c) The provider demonstrates it can provide telecommunications and broadband services to all residential and business locations within the exchange or exchanges for which it requests program support and irrevocably commits to maintain that capability for as long as it receives support and to serve all persons requesting such service within such exchange or exchanges;

(d) The provider submits to the commission's regulation of its service as if it were the incumbent local exchange company serving the exchange or exchanges for which it seeks support from the program;

(e) The provider has established a plan, as described in WAC 480-123-110, to provide, maintain, or enhance broadband service;

(f) The provider offers basic residential and business exchange telecommunications services as set forth in WAC 480-120-021 and RCW 80.36.630; and

(g) The provider has been designated by the commission as an ETC for purposes of receiving federal universal service support pursuant to 47 C.F.R. Part 54 Subpart D – Universal Service Support for High Cost Areas, with respect to the service areas for which the provider is seeking program support.

(4) In calculating access lines or equivalents under this section, the access lines or equivalents of all affiliates must be counted as a single threshold, if the lines or equivalents are located in Washington; provided that only the wireline access lines of the affiliates of a provider seeking support as a wireline carrier will count toward the single threshold for that provider, and only the wireless access line equivalents of the affiliates of a provider seeking support as a wireless carrier will count toward the single threshold for that provider.

AMENDATORY SECTION(Amending WSR 14-21-045 and WSR 14-12-008, filed 10/7/14 and 5/22/14, effective 6/22/14)

WAC 480-123-110Petitions for eligibility to receive program support.

(1) Wireline communications providers. A wireline communications provider that satisfies the prerequisites in WAC 480-123-100 may petition the commission to receive support from the program. The provider must petition the commission each year to be eligible to receive support from the program the following year. The petition must include the following information:

(a) The name of the legal entity that provides communications services and is seeking program support;

(b) A corporate organization chart showing the relationship between the legal entity identified in (a) of this subsection and all affiliates as defined in RCW 80.16.010 and a detailed description of any transactions between the provider and those affiliates recorded in the provider's operating accounts;

(c) A service area map or detailed reference to any maps on file with the commission showing the provider's Washington service area;

(d) ((A demonstration that the provider's customers are at risk of rate instability or service interruptions or cessation in the absence of support from the program;))The provider's broadband plan to provide, maintain, or enhance broadband services in its service area should include the following elements, to the extent applicable to the broadband plan:

(i) Multiyear investment plan;

(ii) Specific project(s) that are projected to provide or enhance broadband services at speeds required by the commission or the Federal Communications Commission. Project information will include an estimated timeline, geographic location, number of locations passed, and upload and download speeds;

(iii) A plan for maintenance of broadband services in the provider's service area;

(iv) A description for how the provider will enhance broadband services in its service area; and

(v) Any supporting information that the commission requests to assist its review and analysis of the provider's broadband plan.

(e) For a provider that is seeking support under (j)(i) of this subsection, detailed financial information and supporting documentation in a form prescribed by the commission for the provider's total Washington regulated operations for the two calendar years prior to the year in which the provider is filing the petition including, but not limited to, the following:

(i) The provider's balance sheet and statements of income and retained earnings or margin from, or in the same format and detail required in, Rural Utilities Service (RUS) Form 479;

(ii) The provider's consolidated audited financial statements; if the provider does not have consolidated audited financial statements prepared in the normal course of its business, the provider must submit financial statements reviewed by a certified public accountant;

(iii) Information demonstrating the provider's earned rate of return on a total Washington unseparated regulated operations basis for each of the two prior years;

(iv) Information demonstrating the provider's earned return on equity on a total company (regulated and nonregulated) Washington basis for each of the two prior years;

(v) Information detailing all of the provider's revenues from the statements of income and retained earnings or margin section of RUS Form 479 for the two prior years; if the provider does not submit RUS Form 479, the provider must file with the commission the same revenue information specified in this subsection that is required to complete the applicable portion of that form;

(vi) Information ((detailing))summarizing the amounts of any corporate operations adjustments to existing high-cost loop and interstate common line support mechanisms the Federal Communications Commission required of the provider for the two prior years or a sworn statement ((under penalty of perjury from))by a company officer ((of the provider with personal knowledge and responsibility)) certifying that no such adjustments apply to the provider; and

(vii) Any additional supporting information the commission requests to enable it to analyze the provider's financial results for program purposes((; and

(viii) A statement under penalty of perjury from a company officer of the provider with personal knowledge and responsibility certifying that the provider complies with state and federal accounting, cost allocation, and cost adjustment rules pertaining to incumbent local exchange companies;

(f) A complete copy of the FCC Form 481 the provider filed with the Federal Communications Commission for the calendar year preceding the year in which the provider is filing the petition; if the provider does not submit FCC Form 481 to the Federal Communications Commission, the provider must file with the commission the same information required to complete that form)).

(f) A sworn statement by a company officer certifying that the company complies with state and federal accounting, cost allocation, and cost adjustment rules pertaining to incumbent local exchange carriers;

(g) Information detailing the number of residential and business local exchange access lines and broadband connections the provider or its affiliate served as of December 31st for each of the prior two years, and the unbundled monthly basic rate(s)((charged))or charge(s) applicable to each customer ((category; and))class;

(h) A sworn statement ((under penalty of perjury from))by a company officer ((of the provider)) certifying that if ((it))the provider receives program support ((the provider))it will continue to provide communications services ((pursuant to its tariffs on file with the commission)) throughout its service territory in Washington for which it is seeking and receives program support and the provider, or its affiliate if appropriate, will continue to provide broadband services during the entirety of the year in which the provider is applying for support from the program;

(i) A sworn statement by a company officer certifying that the provider is in compliance with the Federal Communications Commission's obligations for deployment of broadband at speeds specified by the Federal Communications Commission that apply to the provider; and

(j) Satisfaction of at least one of the following eligibility criteria:

(i) Eligibility criterion one: A sworn statement by a company officer certifying that the provider commits to the deployment of broadband to the number of locations the commission has determined by order. Such deployment obligations are in addition to any Federal Communications Commission deployment requirements. Additionally, a provider that elects to petition the program for support under this category is subject to review of its rate of return and financial reporting requirements as described in (e) of this subsection.

(ii) Eligibility criterion two: A sworn statement by a company officer certifying that the provider commits to the deployment of broadband to the number of locations the commission has determined by order. Such deployment obligations are in addition to any Federal Communications Commission deployment requirements.

(iii) Eligibility criterion three: A sworn statement by a company officer certifying that the provider has already met the Federal Communications Commission's total deployment obligations associated with federal high-cost program support as of the date of the petition and that since January 1, 2018, the provider has deployed broadband to the number of locations the commission has determined by order. If a company has deployed broadband to a number of locations less than the number required by commission order, the company certifies that it will deploy broadband to the remaining number of locations.

(iv) Eligibility criterion four: A sworn statement by a company officer certifying that broadband service is available to one hundred percent of locations within the provider's service area, and commits to making broadband service available to any new locations.

(2) Wireless communications providers. A wireless communications provider that meets the requirements in WAC 480-123-100 may petition the commission to receive support from the program. The provider must petition the commission each year to be eligible to receive support from the program the following year. The petition must include the same type of information for the same periods required of wireline communications providers in subsection (1) of this section. The first time a wireless communications provider seeks to file such a petition, the provider must first submit its request ((to file the petition)) to the advisory board, pursuant to any guidelines the advisory board will adopt, detailing how the provider will compile and supply the information required by this rule. The advisory board will make a recommendation to the commission, and the commission will determine the precise information the provider must file in support of its petition.

(3) Other communications providers. A communications provider other than a provider specified in subsection (1) or (2) of this section that meets the requirements of RCW 80.36.650 (3)(b) and WAC 480-123-100(3) may petition the commission to receive support from the program. The provider must petition the commission each year to be eligible to receive support from the program the following year. The petition must include the same type of information for the same periods required of communications providers in subsection (1) of this section. The first time a communications provider seeks to file such a petition under this section, the provider must first submit its request to the advisory board, pursuant to any guidelines the advisory board will adopt, detailing how the provider will compile and supply the information required by this rule. The advisory board will make a recommendation to the commission, and the commission will determine the information the provider must file in support of its petition.

(4)Information already on file with the commission. To the extent that the provider has filed with the commission any of the information required under this rule, the provider need not include that same information in its petition so long as the provider identifies the docket number, documents, and location within those documents in which the provider included that information.

(((4)))(5)Timing of petitions. A provider must file a complete petition that fully complies with this section no later than August ((1st))2nd if the company seeks support from the program for the following calendar year((. Program support is available annually until the expiration of the program on June 30, 2019)).

(((5)))(6)Certification. One or more company officers responsible for the provider's business and financial operations must certify in the form of a sworn statement ((under penalty of perjury)) that the information and representations made in the petition are accurate and that the provider has not knowingly withheld any information required to be provided to the commission pursuant to the rules governing the program. The provider must file this certification with its petition.

(7) Affiliated companies may submit a combined petition for support.

AMENDATORY SECTION(Amending WSR 14-21-045 [and 14-12-008], filed 10/7/14 and 5/22/14, effective 6/22/14)

WAC 480-123-120Eligibility and distributions from the program.

The commission will authorize distributions from the program on an annual basis. Each eligible provider will receive a single distribution for the year after January 1st of each year of eligibility, except as otherwise authorized by the commission.

(1) Eligibility determination. A wireline communications provider that complies with the requirements in ((this chapter))WAC 480-123-110 is eligible to receive distributions from the program ((if the provider demonstrates that its financial circumstances are such that its customers are at risk of rate instability or service interruptions or cessations absent a distribution to the provider that will allow the provider to maintain rates reasonably close to the benchmark the commission has established. In making that determination, the commission will consider the provider's earned rate of return on a total Washington company books and unseparated regulated operations basis, the provider's return on equity, the status of the provider's existing debt obligations, and other relevant factors including, but not limited to, the extent to which the provider is planning or implementing operational efficiencies and business plan modifications to transition or expand from primary provision of legacy voice telephone service to broadband service or otherwise reduce its reliance on support from the program)). The commission will make a final eligibility determination in its order granting or denying a provider's petition to receive program support. The eligibility criterion that a provider elects will be used in analyzing the provider's plan to provide, maintain, or enhance broadband services in its service area. The commission will consider the information filed by the provider in accordance with WAC 480-123-110.

(2) Calculation of support amount. The amount that a wireline communications provider eligible to receive support from the program may receive in a calendar year shall ((not exceed the sum of the following:

(a) The amount the provider received in 2012 from the former traditional USF fund established in Docket U-85-23, et al., and administered by the Washington exchange carrier association; and

(b) The cumulative reduction in support from the Connect America Fund incurred by the provider up through and including the year for which program support is distributed to the provider to the extent the program contains sufficient funds))be no greater than its pro rata share of the cumulative reduction in support from the Connect America Fund Intercarrier Compensation incurred by the provider, up through and including the fiscal year ending June 30, 2020. A provider that seeks a distribution under eligibility criteria two, three, or four will receive support based on their broadband plan and other applicable eligibility requirements. For distribution under eligibility criterion one, the commission will distribute fifty percent of a provider's pro rata share of program support if the provider does not exceed a reasonable rate-of-return threshold applicable to the provider's circumstances and will distribute the remaining fifty percent if the provider commits and demonstrates progress in deploying broadband in accordance with the commission's deployment plan. A company's pro rata share of available funds is calculated after commission expenses.

(3) Distribution to wireless communications providers. The advisory board will make a recommendation to the commission on eligibility and distribution calculations for any wireless communications provider that seeks support from the program, and the commission will determine that provider's eligibility and the amount of support, if any, the provider may receive consistent with RCW 80.36.650 and commission rules.

(4) Distribution to other communications providers. The advisory board will make a recommendation to the commission on eligibility and distribution calculations for any other communications provider that seeks support from the program, and the commission will determine that provider's eligibility and the amount of support, if any, the provider may receive consistent with RCW 80.36.650 and commission rules.

(5) Broadband commitment. To receive support from the program, a communications provider must commit to deploying broadband to at least those locations comprising the broadband deployment obligation determined by the commission. Such deployment obligation is in addition to any Federal Communications Commission deployment requirements.

(6)Total requests in excess of available funds. If the total requests for support for a calendar year exceed the program funds available for that year, the commission will distribute the available funds to eligible carriers on a pro rata basis. If there is a pro rata reduction or increase in support, the company's broadband buildout obligation will be adjusted proportionately. The commission may seek a recommendation from the advisory board on the best pro rata distribution methodology to use.

(((5)))(7)Commission determination. The commission will consider petitions from companies seeking support from the program and will make the necessary eligibility and distribution determinations in response to those petitions prior to January 1st of the calendar year in which funds from the program will be distributed.

AMENDATORY SECTION(Amending WSR 14-12-008, filed 5/22/14, effective 6/22/14)

WAC 480-123-130Reporting requirements.

(1) Wireline communications provider reports. A wireline communications provider that receives program support must submit the following information and reports to the commission on or before July 1st of the year following each calendar year in which the provider receives that support unless a different date is specified below:

(a) The number of residential and business access lines and broadband connections served within the state of Washington for which the provider used program support during the preceding calendar year in the provision of basic telecommunications and broadband service (broken down to reflect beginning and end of year quantities);

(b) Detailed information on how the provider used program support ((the provider received)) during the preceding year to maintain, provide, or enhance telecommunications services;

(c) Detailed information on how the provider used program support during the preceding year to meet the provider's broadband buildout requirement. Information must include location information in the same format that broadband specific location data is filed with the Federal Communications Commission or the Universal Service Administrative Company. If the data format or reporting data fields change, the providers and commission staff will work together to revise the requirements and format;

(d) A list with detailed information of all consumer requests for new basic telecommunications service in the area for which the provider received program support during the preceding year that the provider denied or did not fulfill for any reason;

(((d)))(e) A sworn statement ((under penalty of perjury)) from a company officer of the provider ((with personal knowledge and responsibility)) certifying that, during the preceding year, the provider materially complied with all commission rules in chapter 480-120 WAC that are applicable to the provider and its provision of service within the area for which the provider received program support;

(((e) Complete copies of the FCC Form 477 for the state of Washington that the provider filed with the Federal Communications Commission during and for the calendar year in which the provider receives support at the same time the provider submits those forms to the Federal Communications Commission; if the provider does not submit FCC Form 477 to the Federal Communications Commission, the provider must file with the commission the same information required to complete that form at the same time carriers that file FCC Form 477 are required to submit that form;))

(f) A sworn statement by a company officer certifying that during the preceding year, the provider met the requirements of WAC 480-123-120(5);

(g) Broadband availability data as required by the commission;

(h) A report on operational efficiencies and business plan modifications for the area for which the provider receives program support during the preceding year that the provider has undertaken to transition or expand from primary provision of legacy voice telephone service to broadband service or otherwise reduce its reliance on support from the program, and whether and how disbursements from the program were used to accomplish such outcomes;

(((g)))(i) The provider's Form 477 Subscription Data at the census tract level on a Washington state basis that provides data in the same format and within fourteen calendar days of the dates the data is provided to the Federal Communications Commission;

(j) Detailed information on any other efforts the provider made to use program support to advance universal service and the public interest in Washington; and

(((h)))(k) Any other information or reports the commission requires including, but not limited to, information the commission needs to provide a report to the legislature concerning the program.

(2) Wireless communications provider reports. The advisory board will make a recommendation to the commission on the information and reports that any wireless communications provider that receives support from the program should provide, and the commission will determine the information and reports ((that))the provider must provide consistent with RCW 80.36.650 and commission rules.

(3) Other communications provider reports. The advisory board will make a recommendation to the commission on the information and reports that any communications provider other than a provider specified in subsections (1) and (2) of this section that receives support from the program should provide, and the commission will determine the information and reports the provider must provide consistent with RCW 80.36.650 and commission rules.

(4)Information already on file with the commission. To the extent that the provider has filed with the commission any of the information required under this rule in conjunction with its application for certification as an ((eligible telecommunications carrier))ETC, the provider need not include that same information in its report so long as the provider identifies the docket number, documents, and location within those documents in which the provider included that information.

(((4)))(5)Comments from stakeholders. Interested persons may submit information or comments on any of the issues on which the providers must report under this rule. Persons must submit such information or comments by July 1st of the year following each calendar year in which the commission distributes program support.

AMENDATORY SECTION(Amending WSR 14-21-045 and WSR 14-12-008, filed 10/7/14 and 5/22/14, effective 6/22/14)

WAC 480-123-150Advisory board.

(1) Establishment. The commission will establish an industry and consumer advisory board to provide recommendations to the commission on the implementation and management of the program.

(2) Membership. The commission secretary is authorized to solicit nominations ((and)), approve membership on the board, and determine and modify the number of seats on the board.

(a) The board will be comprised of members representing the following interests:

(i) One from incumbent local exchange companies serving fewer than forty thousand access lines in Washington;

(ii) One from incumbent local exchange companies serving more than forty thousand access lines in Washington;

(iii) One from competitive local exchange companies serving customers in Washington;

(iv) One from wireless communications providers offering service in Washington;

(v) One from the governor's state broadband office;

(vi) One from the public counsel ((section))unit of the office of the attorney general of Washington; and

(((vi)))(vii) One from the commission staff.

(b) Commission staff and public counsel shall have permanent membership on the board. The commission will appoint industry members for a term of three years, at the expiration of which the industry members are eligible for appointment to ((a))two subsequent three-year terms.

(3) Duties. The board shall:

(a) Have a consultative role on matters directly referred to it by the commission;

(b) Conduct meetings no less frequently than once per year;

(d) Prepare and submit to the commission a written report on matters brought to it for consideration including, where appropriate, a recommendation to the commission on potential resolution of such matters.

(4) Initiating board action. The commission alone may initiate board action other than the execution of administrative duties, which the board may conduct on its own initiative. Any person who seeks board participation ((in))on program issues or matters must petition the commission to initiate board action.

AMENDATORY SECTION(Amending WSR 14-12-008, filed 5/22/14, effective 6/22/14)

WAC 480-123-160Resolution of disputes.

An affected provider may petition the commission to resolve any disputed matter concerning the program including, but not necessarily limited to, the provider's eligibility to receive program support, the amount or timing of any distribution of support, and calculations of the provider's revenues and earnings levels. The commission may refer such requests to the advisory board as the initial point of review and consideration of the matter for which a ((carrier))provider seeks resolution. The commission will make the final determination on any petition.