BILL REQ. #: H-0625.6
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/26/11. Referred to Committee on Technology, Energy & Communications.
AN ACT Relating to preserve and advance telecommunications service and connectivity in the state through regulatory parity for incumbent local exchange companies; amending RCW 80.36.610 and 80.36.450; adding new sections to chapter 80.36 RCW; creating a new section; and repealing RCW 80.36.135.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that changes in
technology and the structure of the telecommunications industry have
produced conditions under which traditional regulation of local
exchange companies may not in all cases provide the most efficient and
effective means of achieving the public policy goals of universal
service as declared in RCW 80.36.300. In light of these changes, the
legislature finds and declares that local exchange companies should
have the option to elect to be regulated under the optional form of
regulation and pricing flexibility contained in this act.
NEW SECTION. Sec. 2 (1)(a) A local exchange company serving two
percent or more of the access lines in the state of Washington may
elect to be regulated under the minimal form of regulation set forth in
this section by filing with the commission a "notice of election of
minimal regulation" and specifying an effective date for the election,
which may not be less than sixty days from the date the notice is filed
with the commission. The local exchange company shall file supporting
data with the notice to demonstrate that it meets the public interest
test. If the election of minimal regulation meets the public interest
test set out in (b) of this subsection, the commission shall approve
the election within the sixty-day review period.
(b) The election of minimal regulation is deemed to be in the
public interest if the local exchange company demonstrates that:
(i) Its number of access lines served has decreased over the
preceding five calendar years when comparing the first and fifth years;
and
(ii) The number of access lines the company serves has decreased
over the same comparison period as a percentage of the population of
the zip codes, looking at whole zip codes, associated in whole or in
part with exchanges served by that local exchange company, taking into
account transfers and acquisitions during that period.
(2) Except as provided in subsection (3) of this section, a local
exchange company electing under this section is subject to the same
level of regulation as companies classified as competitive under RCW
80.36.320. In approving an election, the commission shall grant the
local exchange company the same waivers from regulatory requirements
that are granted to companies classified as competitive under RCW
80.36.320, other than a waiver from chapter 80.12 RCW. After the
approval of the election of minimal regulation, the local exchange
company is not required to file reports or data with the commission,
except the company must file an annual report that allows for
calculation of the annual regulatory fee.
(3) A local exchange company that has made an election under this
section shall offer basic residential service throughout the area in
which the company has served as an incumbent local exchange company as
of the date the notice is filed under this section.
(4)(a) Until July 1, 2013, the local exchange company may not
increase its monthly charge for basic residential service above the
charge existing in tariff as of July 1, 2010, unless there has been:
(i) A change in local calling areas; (ii) a change in access charges;
or (iii) other changes affecting basic residential service, in which
case the local exchange carrier may increase the monthly charge for
basic residential service if the increase is approved by the
commission.
(b) After July 1, 2013, upon request by a local exchange company,
the commission shall review whether any person is offering a service
that includes, alone or as part of a bundle or package of services, the
essential components of basic residential service that is comparable to
the local exchange company's basic residential service in an exchange
served by the local exchange company. The commission shall consider
intermodal forms of competition including, but not limited to, wireless
service, cable telephony, and interconnected voice over internet
protocol service. If the commission determines that a person is
offering a service that includes, alone or as part of a bundle or
package of services, the essential components of basic residential
service comparable to the local exchange company's basic residential
service in the exchange served by the local exchange company, then
basic residential service for that area is subject to minimal
regulation as set forth in this section.
(5) The commission shall retain full authority to regulate the
local exchange company's applicable wholesale obligations under 47
U.S.C. Secs. 251 and 252.
(6) The commission may terminate minimal regulation under this
section in full or in part for a specific service, and may impose
conditions on a local exchange company's pricing flexibility for that
service only if it determines, after notice and hearing, that the local
exchange company has materially violated statutes or rules applicable
to the specific service and that revocation of or the imposition of
conditions or restrictions on the local exchange company's pricing
flexibility is in the public interest. In such a proceeding, the
complainant bears the burden of proving the allegations in the
complaint.
(7)(a) A local exchange company serving two percent or more of the
access lines in the state of Washington shall reduce its intrastate
switched access rates to the level of its interstate switched access
rates in equal twenty-five percent increments, regardless of whether
such a local exchange company has elected to file a notice under this
section. The first reduction must occur one hundred eighty days after
the effective date of this section with additional twenty-five percent
reductions occurring in annual increments over the following three
years.
(b) All originating access minutes of use associated with calls to
800-type numbers must be treated as terminating switched access minutes
of use for the purpose of intrastate switched access compensation.
(8) Notwithstanding the provisions of this section, the commission
retains authority to consider and resolve individual customer
complaints for a local exchange company subject to minimal regulation
under this section, and a local exchange company subject to minimal
regulation under this section shall cooperate with any commission
investigations of customer complaints. Except for basic residential
service as provided in subsection (3) of this section or wholesale
obligations as provided in subsection (5) of this section, actions or
transactions for a local exchange company subject to minimal regulation
under this section may not be deemed actions or transactions otherwise
permitted, prohibited, or regulated by the commission for the purposes
of RCW 19.86.170.
NEW SECTION. Sec. 3 (1) A local exchange company serving less
than two percent of the access lines in the state of Washington may
elect pricing flexibility as set forth in this section. The local
exchange company shall notify the commission of its election by filing
with the commission a notice of election of pricing flexibility. Such
a notice will serve to transfer the local exchange company to pricing
flexibility on the thirtieth day after filing with the commission.
(2) Upon election of pricing flexibility, a local exchange company
may file changes to its retail tariff on not less than three calendar
days' prior notice. Notwithstanding other provisions to the contrary
in this title, such tariff filings may not be subject to rejection,
suspension, or modification by the commission. However, if an increase
is proposed to basic residential service, the local exchange company
shall provide its retail subscribers to such a service written notice
of the proposed increase at least thirty days prior to the effective
date. If a petition, brought by ten percent of the then current
subscribers, or five hundred subscribers, whichever is less, to the
basic residential service, is filed with the commission at least ten
days prior to the proposed effective date of the proposed increase to
basic residential service, the commission may exercise all or part of
the powers and procedures under RCW 80.04.130 and 80.36.110(1) for such
a filing. The local exchange company may withdraw the proposed
increase to basic residential service at any time prior to the
commission's issuance of a final determination on whether the proposed
increase to basic residential service rates is fair, just, reasonable,
and sufficient.
(3) In addition to the authority specified in RCW 80.36.332
regarding packaging or bundling of telecommunications services, a local
exchange company making an election under subsection (1) of this
section may package or bundle any tariffed service with any nontariffed
service or any combination of services as long as the tariffed services
in the package or bundle are readily and separately available to
customers at the separately tariffed rates and the availability and
rates of the tariffed services on a stand-alone basis are displayed in
the company's tariff and on its web site consistent with commission
rules.
(4) The pricing flexibility provided under this section does not
extend to the access charges assessed by a local exchange company under
its tariffs or the tariffs of the Washington exchange company
association in which it concurs or for any applicable wholesale
obligations under 47 U.S.C. Secs. 251 and 252.
NEW SECTION. Sec. 4 The commission shall not enter any order
requiring any reduction to any access charges assessed by a local
exchange company serving less than two percent of the access lines in
the state of Washington without the prior written consent of such a
company, unless or until such time as there is adopted, implemented,
and funded an explicit state universal service program that includes
all incumbent local exchange companies serving less than two percent of
the access lines in the state of Washington. Such a state universal
service program must meet and fulfill the purposes of RCW 80.36.300(1)
through (3) and be consistent with 47 U.S.C. Sec. 254. Nothing in this
section may be construed as limiting the commission's authority over
tariff filings that have the effect of increasing access rates or
limiting any person's ability to intervene in such a proceeding.
Sec. 5 RCW 80.36.610 and 1998 c 337 s 2 are each amended to read
as follows:
(1) The commission is authorized to take actions, conduct
proceedings, and enter orders as permitted or contemplated for a state
commission under the federal telecommunications act of 1996, P.L. 104-104 (110 Stat. 56), but the commission's authority to either establish
a new state program or to adopt new rules to preserve and advance
universal service under section 254(f) of the federal act is limited to
the actions expressly authorized by RCW 80.36.600. The commission may
establish by rule fees to be paid by persons seeking commission action
under the federal act, and by parties to proceedings under that act, to
offset in whole or part the commission's expenses that are not
otherwise recovered through fees in implementing the act, but new fees
or assessments charged telecommunications carriers to either establish
a state program or to adopt rules to preserve and advance universal
service under section 254(f) of the federal act do not take effect
until the legislature has approved a state universal service program.
(2) The legislature intends that under the future universal service
program established in this state:
(a) Every telecommunications carrier that provides intrastate
telecommunications services shall contribute, on an equitable and
nondiscriminatory basis, to the preservation and advancement of
universal service in the state;
(b) The contributions shall be competitively and technologically
neutral; and
(c) The universal service program to be established in accordance
with RCW 80.36.600 shall not be inconsistent with the requirements of
47 U.S.C. Sec. 254.
(3) The commission is authorized to accept and exercise any
authority delegated to it from the federal communications commission
arising out of the national broadband plan, or any successor plan, and
to implement rules and orders of the federal communications commission,
but only to the extent necessary to implement such delegated authority.
Sec. 6 RCW 80.36.450 and 2003 c 134 s 6 are each amended to read
as follows:
The Washington telephone assistance program shall limit
reimbursement to one residential switched access line per eligible
household, which may be part of a package or bundle of services offered
by a provider, or one discounted community service voice mailbox per
eligible person.
NEW SECTION. Sec. 7 Sections 2 through 4 of this act are each
added to chapter
NEW SECTION. Sec. 8 RCW 80.36.135 (Alternative regulation of
telecommunications companies -- Waiver of provisions during state of
emergency) and 2008 c 181 s 414, 2000 c 82 s 1, 1995 c 110 s 5, & 1989
c 101 s 1 are each repealed.
NEW SECTION. Sec. 9 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.