S-4551

AN ACT Relating to the provision of telecommunications services by public utility districts and rural port districts; adding new sections to chapter 54.16 RCW; adding new sections to chapter 53.08 RCW; adding a new section to chapter 80.01 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

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

(1) Access to advanced telecommunications facilities and services is essential to the economic and educational well-being of all persons and entities in both rural and urban areas.

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

(3) Public utility districts and rural port districts are well-positioned to construct and operate advanced telecommunications facilities in a cost-effective manner, particularly in rural areas, because of existing rights-of-way, infrastructure ownership, experience delivering utility services, and economies of scale achieved by fully utilizing utility telecommunications systems.

(4) Provision of wholesale telecommunications services by public utility districts and rural port districts will stimulate competition among telecommunications providers, to the benefit of all telecommunications consumers and users.

(5) Economic development and educational opportunities, particularly in rural areas, will be increased by public utility districts and rural port districts providing cost-effective wholesale telecommunications services, thus reducing the economic and educational disparity between rural and urban areas.

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

(1) The definitions in this subsection apply throughout this section and section 3 of this act unless the context clearly requires otherwise.

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

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

(c) "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.

(d) "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 or an enhanced service provider.

(2) 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, alter, improve, repair, operate, and maintain any telecommunications facilities for its internal telecommunications needs and for the provision of wholesale telecommunications services within the district's limits, or by contract to other public utility districts.

(3) 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.

(4) A public utility district 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 reimbursing the district for costs incurred to build and maintain the excess telecommunications facilities until such time as any bonds or other financing instruments used to finance the excess telecommunications facilities are discharged or retired, after which such revenues must continue to support the ongoing maintenance of the excess telecommunications facilities.

(5) A public utility district shall not exercise powers of eminent domain granted under this title to acquire telecommunications facilities owned by any other person or entity 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 law in carrying out the powers authorized under this section.

NEW SECTION. Sec. 3. 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) The commission procedures exercised under this section shall be in accordance with the administrative procedure act, chapter 34.05 RCW, and a public utility district may obtain judicial review of the commission's actions under chapter 34.05 RCW. 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. 4. A new section is added to chapter 53.08 RCW to read as follows:

(1) The definitions in this subsection apply throughout this section and section 5 of this act unless the context clearly requires otherwise.

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

(b) "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.

(d) "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.

(e) "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 or an enhanced service provider.

(2) 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, alter, improve, repair, operate, and maintain any telecommunications facilities for its own use and for the provision of wholesale telecommunications services within the district's limits.

(3) 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.

(4) A rural port district 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 reimbursing the district for costs incurred to build and maintain the excess telecommunications facilities until such time as any bonds or other financing instruments used to finance the excess telecommunications facilities are discharged or retired, after which such revenues must continue to support the ongoing maintenance of the excess telecommunications facilities.

(5) A rural port district shall not exercise powers of eminent domain granted under this title to acquire telecommunications facilities owned by any other person or entity or contractual rights held by any other person or entity to telecommunications facilities.

(6) Except as otherwise provided, a rural port district may exercise any of the powers granted to it under this title and other applicable law in carrying out the powers authorized under this section.

NEW SECTION. Sec. 5. 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) The commission procedures exercised under this section shall be in accordance with the administrative procedure act, chapter 34.05 RCW, and a district may obtain judicial review of the commission's actions under chapter 34.05 RCW. The commission and prevailing party may also seek injunctive relief to compel compliance with an order.

NEW SECTION. Sec. 6. 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 3 and 5 of this act.