BILL REQ. #:  H-3577.2 

Prefiled 01/08/10. Read first time 01/11/10.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to reviewing the telecommunications regulatory structure; and creating new sections.

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

NEW SECTION.  Sec. 1   The legislature finds that recent changes in technology have fundamentally changed the telecommunications industry. In past decades, telecommunications companies retained monopolies in their service areas and states traditionally regulated them to ensure that their rates were fair, just, and reasonable. In today's marketplace, these same telecommunications companies face increasing competition from cable, wireless, internet, and other companies for the same or functionally equivalent services. In light of increasing competition in an ever-changing telecommunications industry, the legislature intends to review the sufficiency of the current rate-of-return regulation model, the current tax structure for various telecommunications services, and the role the state's utilities and transportation commission should play in regulating telecommunications services in the future.

NEW SECTION.  Sec. 2   (1) The technology law and public policy clinic at the University of Washington school of law shall prepare a comprehensive report identifying and analyzing trends in the telecommunications industry and pathways for telecommunications regulatory reform. The report must include, but not be limited to, a review of the following issues:
     (a) The taxation treatment of all telecommunications services that provide the same or functionally equivalent services;
     (b) The character and degree of competition in the telecommunications market;
     (c) The regulatory, legal, and economic barriers to adequate competition, actual or perceived, that exist;
     (d) What changes could be made in policy, law, or administrative rule to address any actual or perceived barriers to competition; and
     (e) The role of the utilities and transportation commission in the oversight and regulation of telecommunications services.
     (2) The technology law and public policy clinic shall consult with telecommunications service providers in preparing its analysis and report.
     (3) By December 1, 2011, the technology law and public policy clinic shall issue a report to the legislature with recommendations on legislative action that may be necessary in order to effectuate telecommunications regulatory reform in Washington.