SENATE BILL REPORT

SB 6596

BYSenators Stratton and West

Reestablishing regulation by the utilities and transportation commission to all telecommunications companies.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 2, 1988

Senate Staff:Glenn Blackmon (786-7455)

AS OF JANUARY 29, 1988

BACKGROUND:

In 1985 the Legislature enacted the Regulatory Flexibility Act (Chapter 450, Laws of 1985).  The act gave the Utilities and Transportation Commission authority to reduce the regulation of telecommunications companies and services where effective competition exists.

The Commission has allowed for minimal regulation of companies that provide long-distance service but no local exchange service and for minimal regulation of some services provided by a local exchange company.

In some cases, such as long distance service within the 206 and 509 area codes, services are provided by some companies that are subject to traditional regulation and by other companies that are subject to little or no regulation.

SUMMARY:

The following provisions of the Regulatory Flexibility Act are repealed:  (1) declaring state policy to encourage diversity of telecommunications supply and flexible regulation, (2) allowing classification of competitive telecommunications services and companies, (3) allowing the use of banded rates, and (4) deregulating broadcast and cable service, private telecommunications systems, telegraph services, customer premises equipment, and private shared telecommunications services.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested