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                                                   HOUSE BILL NO. 2526

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                                                           AS AMENDED BY THE SENATE

                                                                          C 247 L 90 PV

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Jacobsen, Miller, Nelson and May; by request of Washington Utilities and Transportation Commission

Read first time 1/15/90 and referred to Committee on Energy & Utilities.

AN ACT Relating to registration of telecommunication companies; amending RCW 80.36.350 and 80.36.530; adding new sections to chapter 80.36 RCW; and prescribing penalties.

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

        Sec. 1.  Section 7, chapter 450, Laws of 1985 and RCW 80.36.350 are each amended to read as follows:

          Each telecommunications company not operating under tariff in Washington on January 1, 1985, shall register with the commission before beginning operations in this state.  The registration shall be on a form prescribed by the commission and shall contain such information as the commission may by rule require, but shall include as a minimum the name and address of the company; the name and address of its registered agent, if any; the name, address, and title of each officer or director; its most current balance sheet; its latest annual report, if any; and a description of the telecommunications services it offers or intends to offer.

          The commission may require as a precondition to registration the procurement of a performance  bond sufficient to cover any advances or deposits the telecommunications company may collect from its customers, or order that such advances or deposits be held in escrow or trust.

          The commission may deny registration to any telecommunications company which:

          (1) Does not provide the information required by this section;

          (2) Fails to provide a performance bond, if required;

          (3) Does not possess adequate financial resources to provide the proposed service; or

          (4) Does not possess adequate technical competency to provide the proposed service.

          The commission shall take action to approve or issue a notice of hearing concerning any application for registration within thirty days after receiving the application.  The commission may approve an application with or without a hearing.  The commission may deny an application after a hearing.

A telecommunications company may also submit a petition for competitive classification under RCW 80.36.310 at the time it applies for registration.  The commission may act on the registration application and the competitive classification petition at the same time.

NEW SECTION. Sec. 2.  A new section is added to chapter 80.36 RCW to read as follows:

          All alternate operator service companies providing services within the state shall register with the commission as a telecommunications company before providing alternate operator services.  The commission may deny an application for registration of an alternate operator services company if, after a hearing, it finds that the services and charges to be offered by the company are not for the public convenience and advantage.  The commission may suspend the registration of an alternate operator services company if, after a hearing, it finds that the company does not meet the service or disclosure requirements of the commission.  Any alternate operator services company that provides service without being properly registered with the commission shall be subject to a penalty of not less than five hundred dollars and not more than one thousand dollars for each and every offense.  In case of a continuing offense, every day's continuance shall be a separate offense.  The penalty shall be recovered in an action as provided in RCW 80.04.400.

NEW SECTION. Sec. 3.  A new section is added to chapter 80.36 RCW to read as follows:

          The commission may adopt rules that provide for minimum service levels for telecommunications companies providing alternate operator services.  The rules may provide a means for suspending the registration of a company providing alternate operator services if the company fails to meet minimum service levels or if the company fails to provide appropriate disclosure to consumers of the protection afforded under this chapter.

        Sec. 4.  Section 3, chapter 91, Laws of 1988 and RCW 80.36.530 are each amended to read as follows:

          In addition to the penalties provided in this title, a violation of RCW 80.36.510 ((or)), 80.36.520 , or section 3 of this act constitutes ((a)) an unfair or deceptive act in trade or commerce in violation of chapter 19.86 RCW, the consumer protection act.  Acts in violation of RCW 80.36.510, 80.36.520, or section 3 of this act are not reasonable in relation to the development and preservation of business, and constitute matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.  It shall be presumed that damages to the consumer are equal to the cost of the service provided plus two hundred dollars. Additional damages must be proved.

                                                                                                                           Passed the House March 5, 1990.

                                                                                                                                         Speaker of the House.

                                                                                                                           Passed the Senate March 2, 1990.

                                                                                                                                       President of the Senate.