6675-S AMH TTE AMH-5021.1

6675-S AMH TTE AMH-5021.1

SSB 6675 - H COMM AMD ADOPTED AS AMENDED 3/2/00

By Committee on Technology, Telecommunications & Energy

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature makes the following findings:

(1) Access to telecommunications facilities and services is essential to the economic well-being of both rural and urban areas.

(2) Many persons and entities, particularly in rural areas, do not have adequate access to telecommunications facilities and services.

(3) Public utility districts and rural port districts may be well-positioned to construct and operate telecommunications facilities.

NEW SECTION. Sec. 2. A new section is added to chapter 54.16 RCW to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Commission" means the Washington utilities and transportation commission.

(2) "Telecommunications" has the same meaning as that contained in RCW 80.04.010.

(3) "Telecommunications facilities" means lines, conduits, ducts, poles, wires, cables, crossarms, receivers, transmitters, instruments, machines, appliances, instrumentalities and all devices, real estate, easements, apparatus, property, and routes used, operated, owned, or controlled by any entity to facilitate the provision of telecommunications services.

(4) "Wholesale telecommunications services" means the provision of telecommunications services or facilities for resale by an entity authorized to provide telecommunications services to the general public and internet service providers.

NEW SECTION. Sec. 3. A new section is added to chapter 54.16 RCW to read as follows:

(1) A public utility district in existence on the effective date of this act 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.

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 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) When a public utility district establishes a separate utility function for the provision of wholesale telecommunications services, 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 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 the effective date of this act and used to finance the telecommunications facilities are discharged or retired.

(4) When a public utility 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 public utility district may not charge its nontelecommunications operations rates that are preferential or discriminatory compared to those it charges entities purchasing wholesale 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 this act limits any existing authority of a public utility district under this title.

NEW SECTION. Sec. 4. A new section is added to chapter 54.16 RCW to read as follows:

(1) Prior to financing or constructing telecommunications facilities for the provision of wholesale telecommunications services, a public utility district shall:

(a) Develop a written implementation plan stating the district's intent to provide wholesale telecommunications services which must include:

(i) A general description of how the district intends to engage in the provision of wholesale telecommunications services under section 3 of this act; and

(ii) A discussion of how the public interest shall be served by the provision of wholesale telecommunications services; and

(b) Present the implementation plan to the district's commission, and make the plan available to the general public. The commission shall conduct at least three public hearings throughout the district to take public comment on the implementation plan. At least two weeks prior to each public hearing, a notice that includes a general description of the implementation plan and the date and place of hearing shall be published in a newspaper of general circulation in the county in which the district is located.

(2) After the public hearings, the commission may adopt, alter, or reject the implementation plan by resolution. Within ninety days after the adoption of such resolution, a petition signed by at least ten percent of the registered voters in the district may be submitted to the commission requiring the subject of the resolution be put to a vote of the people in the district.

(3) If a petition meets the requirements of subsection (2) of this section, the commission shall submit the resolution to the legislative authority of the county in which the district is located. Upon receipt of the resolution, the legislative authority shall submit a proposal to the voters of the district at the next general election regarding the question of providing wholesale telecommunications services in the district in substantially the following terms:

Shall Public Utility District No. . . . . of . . . . . . . . County be authorized to provide wholesale telecommunications services within the boundaries of the district?

Yes . . .

No . . .

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 voters voting on the proposition shall vote in favor of such authority, the district shall have the authority to provide wholesale telecommunications services.

(4) A public utility district providing wholesale telecommunications services shall submit a report to the appropriate committees of the legislature by December 1st of the second year of each biennium. The report must include, at a minimum, a description of the following activities:

(a) All activities relating to the construction, acquisition, operation, marketing, and leasing of telecommunications facilities and wholesale telecommunications services; and

(b) The number of new locations connected to the telecommunications facilities resulting from the provision of wholesale telecommunications services to enhanced service providers and entities authorized to provide telecommunications services to the general public.

NEW SECTION. Sec. 5. A new section is added to chapter 54.16 RCW to read as follows:

(1) A person or entity that has requested wholesale telecommunications services from a public utility district providing wholesale telecommunications services under this chapter may petition the commission under the procedures set forth in RCW 80.04.110 (1) through (3) if it believes the district's rates, terms, and conditions are unduly or unreasonably discriminatory or preferential. The person or entity shall provide the public utility district notice of its intent to petition the commission and an opportunity to review within thirty days the rates, terms, and conditions as applied to it prior to submitting its petition. In determining whether a district is providing discriminatory or preferential rates, terms, and conditions, the commission may consider such matters as service quality, cost of service, technical feasibility of connection points on the district's facilities, time of response to service requests, system capacity, and other matters reasonably related to the provision of wholesale telecommunications services. If the commission, after notice and hearing, determines that a public utility district's rates, terms, and conditions are unduly or unreasonably discriminatory or preferential, it shall issue a final order finding noncompliance with this section and setting forth the specific areas of apparent noncompliance. An order imposed under this section shall be enforceable in any court of competent jurisdiction.

(2) The commission may order a public utility district to pay a share of the costs incurred by the commission in connection with adjudicating or enforcing the provisions of this section.

(3) Without limiting other remedies at law or equity, the commission and prevailing party may also seek injunctive relief to compel compliance with an order.

(4) Nothing in this section shall be construed to affect the commission's authority and jurisdiction with respect to actions, proceedings, or orders permitted or contemplated for a state commission under the federal telecommunications act of 1996, P.L. 104-104 (110 Stat. 56).

NEW SECTION. Sec. 6. A new section is added to chapter 53.08 RCW to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Commission" means the Washington utilities and transportation commission.

(2) "Rural port district" means a port district formed under chapter 53.04 RCW and located in a county with an average population density of fewer than one hundred persons per square mile.

(3) "Telecommunications" has the same meaning as contained in RCW 80.04.010.

(4) "Telecommunications facilities" means lines, conduits, ducts, poles, wires, cables, crossarms, receivers, transmitters, instruments, machines, appliances, instrumentalities and all devices, real estate, easements, apparatus, property, and routes used, operated, owned, or controlled by any entity to facilitate the provision of telecommunications services.

(5) "Wholesale telecommunications services" means the provision of telecommunications services or facilities for resale by an entity authorized to provide telecommunications services to the general public and internet service providers.

NEW SECTION. Sec. 7. A new section is added to chapter 53.08 RCW to read as follows:

(1) A rural port district in existence on the effective date of this act 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. 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 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, 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 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 the effective date of this act 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.

(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 this act limits any existing authority of a rural port district under this title.

NEW SECTION. Sec. 8. A new section is added to chapter 53.08 RCW to read as follows:

(1) Prior to financing or constructing telecommunications facilities for the provision of wholesale telecommunications services, a rural port district shall:

(a) Develop a written implementation plan stating the district's intent to provide wholesale telecommunications services which must include:

(i) A general description of how the district intends to engage in the provision of wholesale telecommunications services under section 7 of this act; and

(ii) A discussion of how the public interest shall be served by the provision of wholesale telecommunications services; and

(2) After the public hearings, the commission may adopt, alter, or reject the implementation plan by resolution. Within ninety days after adoption of such resolution, a petition signed by at least ten percent of the registered voters in the district may be submitted to the commission requiring the subject of the resolution be put to a vote of the people in the district.

Shall Port District No. . . . . of . . . . . . . . County be authorized to provide wholesale telecommunications services within the boundaries of the district?

Yes . . .

No . . .

(4) A rural port district providing wholesale telecommunications services shall submit a report to the appropriate committees of the legislature by December 1st of the second year of each biennium. The report must include, at a minimum, a description of the following activities:

(a) All activities relating to the construction, acquisition, operation, marketing, and leasing of telecommunications facilities and wholesale telecommunications services; and

NEW SECTION. Sec. 9. A new section is added to chapter 53.08 RCW to read as follows:

(1) A person or entity that has requested wholesale telecommunications services from a rural port district may petition the commission under the procedures set forth in RCW 80.04.110 (1) through (3) if it believes the district's rates, terms, and conditions are unduly or unreasonably discriminatory or preferential. The person or entity shall provide the district notice of its intent to petition the commission and an opportunity to review within thirty days the rates, terms, and conditions as applied to it prior to submitting its petition. In determining whether a district is providing discriminatory or preferential rates, terms, and conditions, the commission may consider such matters as service quality, technical feasibility of connection points on the district's telecommunications facilities, time of response to service requests, system capacity, and other matters reasonably related to the provision of wholesale telecommunications services. If the commission, after notice and hearing, determines that a rural port district's rates, terms, and conditions are unduly or unreasonably discriminatory or preferential, it shall issue a final order finding noncompliance with this section and setting forth the specific areas of apparent noncompliance. An order imposed under this section shall be enforceable in any court of competent jurisdiction.

(2) The commission may order a rural port district to pay a share of the costs incurred by the commission in adjudicating or enforcing this section.

(3) Without limiting other remedies at law or equity, the commission and prevailing party may also seek injunctive relief to compel compliance with an order.

NEW SECTION. Sec. 10. A new section is added to chapter 80.01 RCW to read as follows:

The commission is authorized to perform the duties required by sections 5 and 9 of this act."

Correct the title.