5156-S AAS 3/8/95

SSB 5156 - S AMD   051

By Senators Gaspard, Hochstatter, Sutherland, Long and Loveland

                                                                     ADOPTED 3/8/95

     Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1.  The legislature finds that:

     (1) It is the declared policy of the state of Washington in RCW 80.36.300(5) to promote diversity in the supply of telecommunications services and products in telecommunications markets throughout the state.

     (2) In 1984, a federal court ordered the divestiture of the Bell System separating the system into:  (a) Local service companies, limited to service within defined geographic areas called local access transport areas, known as LATAs; and (b) an interexchange or inter-LATA company, which is free to provide any lawful service, but cannot purchase the operations of its divested operating companies.  The local service companies expected to be permitted to compete for inter-LATA services as soon as interexchange providers could legally compete with intra-LATA dialing parity.

     (3) It has been lawful in Washington since 1985 for any company to provide any telecommunications service so long as the company is properly registered with the Washington utilities and transportation commission.  Two exceptions to this freedom to compete in all markets exist.  The carrier that serves most of the state's citizens and the largest geographic area is prohibited from providing inter-LATA telecommunications services.  The second largest exchange company in the state may only provide inter-LATA services through a separate subsidiary.

     (4) Competition in the telecommunications services industry has intensified with the fast pace of changes in telecommunications technology in recent years.  The effect of increased competition for customers on the affordability of service for consumers cannot be determined without further review by the utilities and transportation commission.

NEW SECTION. Sec. 2.  A new section is added to chapter 80.36 RCW to read as follows:

     In order to promote diversity of supply and competition in the provision of all services in the state:

     (1) The commission shall require all carriers registered to provide service in this state to allow their customers to individually choose an authorized carrier to provide one plus dialed service;

     (2) The commission shall not require any change in intra-LATA one plus dialing patterns existing on January 1, 1995, under subsection (1) of this section until all carriers are permitted to provide inter-LATA service on an integrated basis, or June 30, 1998, whichever is earlier; and

     (3) Nothing in this section shall preclude the commission from engaging in a fact-finding investigation in anticipation of the requirement that all carriers provide one plus presubscription.

NEW SECTION. Sec. 3.  The commission shall submit to the legislature no later than December 1, 1997, a study of the intra-LATA telephone market in the state of Washington as it exists at that time.  This study shall analyze the nature and extent of competition in the intra-LATA and inter-LATA markets, including local exchange operators' market power in the inter-LATA market and long distance carriers' market power in the intra-LATA market; the impact of proposed changes in intra-LATA dialing patterns on local business and residential basic rates; the ability of telecommunications companies to meet universal service obligations in light of proposed changes in intra-LATA one plus dialing patterns; all relevant state and federal enactments and court and regulatory decisions made after the effective date of this act which affect intra-LATA services by telecommunications companies in the state of Washington.  This study shall objectively set forth policy options regarding intra-LATA dialing patterns, and shall make recommendations based upon those options.  Nothing in this section shall prohibit the commission from engaging in an inquiry proceeding or other fact-finding investigation in anticipation of issuing orders regarding intra-LATA one plus dialing.

NEW SECTION. Sec. 4.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995."

SSB 5156 - S AMD

By Senators Gaspard, Hochstatter, Sutherland, Long and Lovelan

                                                                     ADOPTED 3/8/95

     On page 1, line 2 of the title, after "telecommunications;" strike the remainder of the title and insert "adding a new section to chapter 80.36 RCW; creating new sections; providing an effective date; and declaring an emergency."

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