BILL REQ. #:  S-2122.3 

READ FIRST TIME 03/05/03.   

     AN ACT Relating to the provision of wholesale telecommunications services by public utility districts; amending RCW 54.16.005 and 54.16.330; adding new sections to chapter 54.16 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The purpose of this act is to adopt in statute the conclusions of attorney general opinion, number 3 (2001).

Sec. 2   RCW 54.16.005 and 2000 c 81 s 2 are each amended 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) "End user" means a retail customer, whether a person or public or private entity, that purchases telecommunications services.
     (3) "Telecommunications" has the same meaning as that contained in RCW 80.04.010, and includes internet services.
     (((3))) (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.
     (((4))) (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.

Sec. 3   RCW 54.16.330 and 2000 c 81 s 3 are each amended to read as follows:
     (1) A public utility district in existence on June 8, 2000, 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)) shall not: (i) Provide telecommunications services to end users; or (ii) market the services provided by entities authorized to provide telecommunications services to end users, except that information provided by a district describing the capabilities of the district's network and a listing of private providers may be marketed.
     Public utility districts shall not provide wholesale telecommunications services to public agencies, as defined in RCW 39.34.020, unless the agencies are authorized by statute 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)) providing wholesale telecommunications services shall separately account for any ((and all)) revenues ((and)), expenditures ((related to its)), property, allocation of costs to its internal communications needs, and amount of funds required from other utility functions to support the provision of 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 June 8, 2000, 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)) provides 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 chapter 81, Laws of 2000 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:
     A public utility district providing wholesale telecommunications services shall provide, at a just and reasonable rate, nondiscriminatory access for private providers of telecommunications services to poles, conduits, or other permanent distribution facilities owned by the public utility district unless the facilities have insufficient capacity for such access and additional capacity cannot reasonably be added to the facilities or such access would violate standard industry safety and operational requirements. Except as provided in a facilities use contract between a public utility district and a private telecommunications service provider, a public utility district shall not require the removal or prohibit the replacement of telecommunications facilities owned by private telecommunications service providers from its facilities.

NEW SECTION.  Sec. 5   A new section is added to chapter 54.16 RCW to read as follows:
     When the state auditor makes a finding that a public utility district providing wholesale telecommunications services has violated RCW 54.16.330 or section 4 of this act, the district shall submit a report to the appropriate committees of the legislature within thirty days of the issue date of the finding. The report must include, at a minimum: (1) A description of all activities relating to the construction, acquisition, operation, marketing, and leasing of telecommunications facilities and wholesale telecommunications services; and (2) a description of the number of new locations connected to the telecommunications facilities resulting from the provision of wholesale telecommunications services to internet service providers and entities authorized to provide telecommunications services to the general public.