S 0422

S‑0422.2 _____________________________________________

SENATE BILL 5124

_____________________________________________

State of Washington 57th Legislature 2001 Regular Session

By Senator Jacobsen

Read first time 01/11/2001. Referred to Committee on Economic Development & Telecommunications.

_1 AN ACT Relating to customer notice requirements for competitive

_2 telecommunications companies and services; and amending RCW

_3 80.36.320 and 80.36.330.

_4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5 Sec. 1. RCW 80.36.320 and 1998 c 337 s 5 are each amended to read

_6 as follows:

_7 (1) The commission shall classify a telecommunications company

_8 as a competitive telecommunications company if the services it

_9 offers are subject to effective competition. Effective competition

10 means that the company's customers have reasonably available

11 alternatives and that the company does not have a significant

12 captive customer base. In determining whether a company is

13 competitive, factors the commission shall consider include but are

14 not limited to:

15 (a) The number and sizes of alternative providers of service;

16 (b) The extent to which services are available from alternative

17 providers in the relevant market;

18 (c) The ability of alternative providers to make functionally

p. 1 SB 5124

_1 equivalent or substitute services readily available at competitive

_2 rates, terms, and conditions; and

_3 (d) Other indicators of market power which may include market

_4 share, growth in market share, ease of entry, and the affiliation

_5 of providers of services.

_6 The commission shall conduct the initial classification and any

_7 subsequent review of the classification in accordance with such

_8 procedures as the commission may establish by rule.

_9 (2) Competitive telecommunications companies shall be subject

10 to minimal regulation. Minimal regulation means that competitive

11 telecommunications companies may file, instead of tariffs, price

12 lists that shall be effective after ten days' notice to the

13 commission and customers. The commission shall prescribe the form

14 of notice. The commission may also waive other regulatory

15 requirements under this title for competitive telecommunications

16 companies when it determines that competition will serve the same

17 purposes as public interest regulation. The commission may waive

18 different regulatory requirements for different companies if such

19 different treatment is in the public interest. A competitive

20 telecommunications company shall at a minimum:

21 (a) Keep its accounts according to regulations as determined by

22 the commission;

23 (b) File financial reports with the commission as required by

24 the commission and in a form and at times prescribed by the

25 commission;

26 (c) Keep on file at the commission such current price lists and

27 service standards as the commission may require; ((~~and~~))

28 (d) Notify, in writing, each affected customer, in a manner

29 prescribed by the commission, at least ten days prior to the

30 effective date of a change in price or any other material term or

31 condition of a customer's service agreement; and

32 (e) Cooperate with commission investigations of customer

33 complaints.

34 (3) When a telecommunications company has demonstrated that the

35 equal access requirements ordered by the federal district court in

36 the case of U.S. v. AT&T, 552 F. Supp. 131 (1982), or in

37 supplemental orders, have been met, the commission shall review

38 the classification of telecommunications companies providing inter-

SB 5124 p. 2

_1 LATA interexchange services. At that time, the commission shall

_2 classify all such companies as competitive telecommunications

_3 companies unless it finds that effective competition, as defined

_4 in subsection (1) of this section, does not then exist.

_5 (4) The commission may revoke any waivers it grants and may

_6 reclassify any competitive telecommunications company if the

_7 revocation or reclassification would protect the public interest.

_8 (5) The commission may waive the requirements of RCW 80.36.170

_9 and 80.36.180 in whole or in part for a competitive

10 telecommunications company if it finds that competition will serve

11 the same purpose and protect the public interest.

12 Sec. 2. RCW 80.36.330 and 1998 c 337 s 6 are each amended to read

13 as follows:

14 (1) The commission may classify a telecommunications service

15 provided by a telecommunications company as a competitive

16 telecommunications service if the service is subject to effective

17 competition. Effective competition means that customers of the

18 service have reasonably available alternatives and that the

19 service is not provided to a significant captive customer base. In

20 determining whether a service is competitive, factors the

21 commission shall consider include but are not limited to:

22 (a) The number and size of alternative providers of services;

23 (b) The extent to which services are available from alternative

24 providers in the relevant market;

25 (c) The ability of alternative providers to make functionally

26 equivalent or substitute services readily available at competitive

27 rates, terms, and conditions; and

28 (d) Other indicators of market power, which may include market

29 share, growth in market share, ease of entry, and the affiliation

30 of providers of services.

31 (2) When the commission finds that a telecommunications company

32 has demonstrated that a telecommunications service is competitive,

33 the commission may permit the service to be provided under a price

34 list effective on ten days notice to the commission and

35 customers. A telecommunications company providing a competitive

36 telecommunications service shall notify, in writing, each affected

37 customer at least ten days prior to the effective date of a change

p. 3 SB 5124

_1 in price or any other material term or condition of a customer's

_2 service agreement. The commission shall prescribe the form of

_3 notice. The commission may adopt procedural rules necessary to

_4 implement this section.

_5 (3) Prices or rates charged for competitive telecommunications

_6 services shall cover their cost. The commission shall determine

_7 proper cost standards to implement this section, provided that in

_8 making any assignment of costs or allocating any revenue

_9 requirement, the commission shall act to preserve affordable

10 universal telecommunications service.

11 (4) The commission may investigate prices for competitive

12 telecommunications services upon complaint. In any complaint

13 proceeding initiated by the commission, the telecommunications

14 company providing the service shall bear the burden of proving

15 that the prices charged cover cost, and are fair, just, and

16 reasonable.

17 (5) Telecommunications companies shall provide the commission

18 with all data it deems necessary to implement this section.

19 (6) No losses incurred by a telecommunications company in the

20 provision of competitive services may be recovered through rates

21 for noncompetitive services. The commission may order refunds or

22 credits to any class of subscribers to a noncompetitive

23 telecommunications service which has paid excessive rates because

24 of below cost pricing of competitive telecommunications services.

25 (7) The commission may reclassify any competitive

26 telecommunications service if reclassification would protect the

27 public interest.

28 (8) The commission may waive the requirements of RCW 80.36.170

29 and 80.36.180 in whole or in part for a service classified as

30 competitive if it finds that competition will serve the same

31 purpose and protect the public interest.

‑‑‑ END ‑‑‑

SB 5124 p. 4