AN
ACT Relating to the implementation of the federal telecommunications act of
1996, P.L. 104-104 (110 Stat. 56); amending RCW 80.36.310, 80.36.320, and
80.36.330; adding new sections to chapter 80.36 RCW; and providing a contingent
expiration date.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. (1)
The commission shall plan and prepare to implement a program for the
preservation and advancement of universal telecommunications service which
shall not take effect until the legislature approves the program. The purpose
of the universal service program is to benefit telecommunications ratepayers in
the state by minimizing implicit sources of support and maximizing explicit
sources of support that are specific, sufficient, competitively neutral, and
technologically neutral to support basic telecommunications services for
customers of telecommunications companies in high-cost locations.
(2)
In preparing a universal service program for approval by the legislature, the
commission shall:
(a)
Estimate the cost of supporting all lines located in high-cost locations and
the cost of supporting one primary telecommunications line for each residential
or business customer located in high-cost locations;
(b)
Determine the assessments that must be made on all telecommunications carriers,
and the manner of collection, to provide support for:
(i)
All residential and business lines located in high-cost locations;
(ii)
Only one primary line for each residential or business customer located in
high-cost locations;
(c)
Designate those telecommunications carriers serving high-cost locations that are
eligible to receive support for the benefit of their customers in those
locations;
(d)
Adopt or prepare to adopt all necessary rules for administration of the
program; and
(e)
Provide a schedule of all fees and payments proposed or expected to be proposed
by the commission under subsection (4)(d) of this section.
(3)
The commission shall report by November 1, 1998, to the legislature on these
steps taken to prepare for implementation and shall inform the legislature of
the estimated cost to support all lines located in high-cost locations and the
estimated cost to support only one primary line for each residential or
business customer located in high-cost locations under a universal service
program.
(4)
Once a program is approved by the legislature and subsequently established, the
following provisions apply unless otherwise directed by the legislature:
(a)
All transfers of money necessary to provide the support shall be outside the
state treasury and not be subject to appropriation;
(b)
The commission may delegate to the commission secretary or other staff the
authority to resolve disputes or make other decisions necessary to the
administration of the program;
(c)
The commission may contract with an independent program administrator subject
to the direction and control of the commission and may authorize the
establishment of an account or accounts in independent financial institutions
should that be necessary for administration of the program;
(d)
The expenses of an independent program administrator shall be authorized by the
commission and shall be paid out of contributions by the telecommunications
carriers participating in the program;
(e)
The commission may require the carriers participating in the program, as part
of their contribution, to pay into the public service revolving fund the costs
of the commission attributable to supervision and administration of the program
that are not otherwise recovered through fees paid to the commission.
(5)
The commission shall establish standards for review or testing of all
telecommunications carriers' compliance with the program for the purpose of
ensuring the support received by a telecommunications carrier is used only for
the purposes of the program and that each telecommunications carrier is making
its proper contribution to the program. The commission may conduct the review
or test, or contract with an independent administrator or other person to
conduct the review or test.
(6)
The commission shall coordinate administration of the program with any federal
universal service program and may administer the federal fund in conjunction
with the state program if so authorized by federal law.
(7)
The definitions in this subsection apply throughout this section unless the
context clearly requires otherwise.
(a)
"Telecommunications carrier" has the same meaning as defined in 47
U.S.C. Sec. 153(44).
(b)
"Basic telecommunications services" means the following services:
(i)
Single-party service;
(ii)
Voice grade access to the public switched network;
(iii)
Support for local usage;
(iv)
Dual tone multifrequency signaling (touch-tone);
(v)
Access to emergency services (911);
(vi)
Access to operator services;
(vii)
Access to interexchange services;
(viii)
Access to directory assistance; and
(ix)
Toll limitation services.
(c)
"High-cost location" means a location where the cost of providing
telecommunications services is greater than a benchmark established by the
commission by rule.
(8)
Each telecommunications carrier that provides intrastate telecommunications
services shall provide whatever information the commission may reasonably
require in order to fulfill the commission's responsibilities under subsection
(2) of this section.
NEW
SECTION. Sec. 2. (1)
The commission is authorized to take actions, conduct proceedings, and enter
orders as permitted or contemplated for a state commission under the federal
telecommunications act of 1996, P.L. 104-104 (110 Stat. 56), but the
commission's authority to either establish a new state program or to adopt new
rules to preserve and advance universal service under section 254(f) of the
federal act is limited to the actions expressly authorized by section 1 of this
act. The commission may establish by rule fees to be paid by persons seeking
commission action under the federal act, and by parties to proceedings under
that act, to offset in whole or part the commission's expenses that are not
otherwise recovered through fees in implementing the act, but new fees or
assessments charged telecommunications carriers to either establish a state
program or to adopt rules to preserve and advance universal service under
section 254(f) of the federal act do not take effect until the legislature has
approved a state universal service program.
(2)
The legislature intends that under the future universal service program
established in this state:
(a)
Every telecommunications carrier that provides intrastate telecommunications
services shall contribute, on an equitable and nondiscriminatory basis, to the
preservation and advancement of universal service in the state;
(b)
The contributions shall be competitively and technologically neutral; and
(c)
The universal service program to be established in accordance with section 1 of
this act shall not be inconsistent with the requirements of 47 U.S.C. Sec. 254.
NEW
SECTION. Sec. 3. Any
rules regarding universal service adopted by the utilities and transportation
commission shall comply with the purpose, as stated in section 1 of this act,
for establishing a program for the preservation and advancement of universal
telecommunications service. Services to be supported are only those basic
services defined in section 1(7) of this act.
Sec.
4. RCW
80.36.310 and 1989 c 101 s 14 are each amended to read as follows:
(1)
Telecommunications companies may petition to be classified as competitive
telecommunications companies under RCW 80.36.320 or to have services classified
as competitive telecommunications services under RCW 80.36.330. The commission
may initiate classification proceedings on its own motion. The commission may
require all regulated telecommunications companies potentially affected by a
classification proceeding to appear as parties for a determination of their
classification.
(2)
Any company petition or commission motion for competitive classification shall
state an effective date not sooner than thirty days from the filing date. The
company must provide notice and publication of the proposed competitive
classification in the same manner as provided in RCW 80.36.110 for tariff
changes. The proposed classification shall take effect on the stated effective
date unless suspended by the commission and set for hearing under chapter 34.05
RCW or set for a formal investigation and fact-finding under RCW 80.36.145.
The commission shall enter its final order with respect to any suspended
classification within ((ten)) six months from the date of filing
of a company's petition or the commission's motion.
Sec.
5. RCW
80.36.320 and 1989 c 101 s 15 are each amended to read as follows:
(1)
The commission shall classify a telecommunications company ((providing
service in a relevant market)) as a competitive telecommunications company
if ((it finds, after notice and hearing, that the telecommunications company
has demonstrated that)) the services it offers are subject to effective
competition. Effective competition means that the company's customers have
reasonably available alternatives and that the company does not have a
significant captive customer base. In determining whether a company is
competitive, factors the commission shall consider include but are not limited
to:
(a)
The number and sizes of alternative providers of service;
(b)
The extent to which services are available from alternative providers in the
relevant market;
(c)
The ability of alternative providers to make functionally equivalent or
substitute services readily available at competitive rates, terms, and
conditions; and
(d)
Other indicators of market power which may include market share, growth in
market share, ease of entry, and the affiliation of providers of services.
The
commission shall conduct the initial classification and any subsequent review
of the classification in accordance with such procedures as the commission may
establish by rule.
(2)
Competitive telecommunications companies shall be subject to minimal
regulation. Minimal regulation means that competitive telecommunications
companies may file, instead of tariffs, price lists ((which)) that
shall be effective after ten days' notice to the commission and customers. The
commission shall prescribe the form of notice. The commission may also waive
other regulatory requirements under this title for competitive
telecommunications companies when it determines that competition will serve the
same purposes as public interest regulation. The commission may waive
different regulatory requirements for different companies if such different
treatment is in the public interest. A competitive telecommunications company
shall at a minimum:
(a)
Keep its accounts according to regulations as determined by the commission;
(b)
File financial reports with the commission as required by the commission and in
a form and at times prescribed by the commission;
(c)
Keep on file at the commission such current price lists and service standards
as the commission may require; and
(d)
Cooperate with commission investigations of customer complaints.
(3)
When a telecommunications company has demonstrated that the equal access
requirements ordered by the federal district court in the case of U.S. v.
AT&T, 552 F. Supp. 131 (1982), or in supplemental orders, have been met,
the commission shall review the classification of telecommunications companies
providing inter-LATA interexchange services. At that time, the commission
shall classify all such companies as competitive telecommunications companies
unless it finds that effective competition, as defined in subsection (1) of
this section, does not then exist.
(4)
The commission may revoke any waivers it grants and may reclassify any
competitive telecommunications company if ((such)) the revocation
or reclassification would protect the public interest.
(5)
The commission may waive the requirements of RCW 80.36.170 and 80.36.180 in
whole or in part for a competitive telecommunications company if it finds that
competition will serve the same purpose and protect the public interest.
Sec.
6. RCW
80.36.330 and 1989 c 101 s 16 are each amended to read as follows:
(1)
The commission may classify a telecommunications service provided by a
telecommunications company as a competitive telecommunications service if ((it
finds, after notice and hearing, that)) the service is subject to effective
competition. Effective competition means that customers of the service have
reasonably available alternatives and that the service is not provided to a
significant captive customer base. In determining whether a service is
competitive, factors the commission shall consider include but are not limited
to:
(a)
The number and size of alternative providers of services;
(b)
The extent to which services are available from alternative providers in the
relevant market;
(c)
The ability of alternative providers to make functionally equivalent or
substitute services readily available at competitive rates, terms, and
conditions; and
(d)
Other indicators of market power, which may include market share, growth in
market share, ease of entry, and the affiliation of providers of services.
(2)
When the commission finds that a telecommunications company has demonstrated
that a telecommunications service is competitive, the commission may permit the
service to be provided under a price list effective on ten days notice to the
commission and customers. The commission shall prescribe the form of notice.
The commission may adopt procedural rules necessary to implement this section.
(3)
Prices or rates charged for competitive telecommunications services shall cover
their cost. The commission shall determine proper cost standards to implement
this section, provided that in making any assignment of costs or allocating any
revenue requirement, the commission shall act to preserve affordable universal
telecommunications service.
(4)
The commission may investigate prices for competitive telecommunications
services upon complaint. In any complaint proceeding initiated by the
commission, the telecommunications company providing the service shall bear the
burden of proving that the prices charged cover cost, and are fair, just, and
reasonable.
(5)
Telecommunications companies shall provide the commission with all data it
deems necessary to implement this section.
(6)
No losses incurred by a telecommunications company in the provision of
competitive services may be recovered through rates for noncompetitive
services. The commission may order refunds or credits to any class of
subscribers to a noncompetitive telecommunications service which has paid
excessive rates because of below cost pricing of competitive telecommunications
services.
(7)
The commission may reclassify any competitive telecommunications service if
reclassification would protect the public interest.
(8)
The commission may waive the requirements of RCW 80.36.170 and 80.36.180 in
whole or in part for a service classified as competitive if it finds that
competition will serve the same purpose and protect the public interest.
NEW
SECTION. Sec. 7.
Sections 1 through 3 of this act are each added to chapter 80.36 RCW.
NEW
SECTION. Sec. 8. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
