[atlas:bill]

AN ACT Relating to promoting the deployment of advanced telecommunications services and high bandwidth infrastructure; adding new sections to chapter 80.36 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature declares that changes in technology and the structure of the telecommunications industry have produced conditions under which traditional rate of return, rate base regulation of telecommunications companies is not the most efficient means of facilitating the broad deployment of advanced telecommunications services and high bandwidth infrastructure, while providing rate certainty to basic consumers. The legislature further declares that price cap regulation, as defined in this section, will reduce regulatory delay and costs, encourage innovation in services, promote efficiency, facilitate the broad dissemination of new technologies to all classes of ratepayers, enhance the ability of telecommunications companies to respond to competition, ensure that telecommunications companies do not have the opportunity to exercise substantial market power absent effective competition, and provide fair, just, and reasonable rates for all ratepayers.

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

(1) Any incumbent local exchange carrier may elect to have the rates, terms, and conditions for its telecommunications services determined under the provisions of this section. The provisions of RCW 80.36.135 are separate and distinct from this section and do not apply to companies regulated under this section.

(2) An incumbent local exchange carrier shall file a notice of its intent with the commission to be an electing company and to be regulated under this section. A company that so elects may not later rescind that election and return to its preelection form of regulation.

(3) Upon such a filing, all rates, terms, and conditions for the services provided by that incumbent local exchange carrier contained in the tariffs, price lists, or end-user contracts that were in effect on the date of election under this section shall be deemed fair, just, and reasonable.

(4) Nothing in this section shall restrict any customer's right to enforce any relevant quality of service rules and standards. Not later than one hundred eighty days from the effective date of this section, the commission shall complete a proceeding to ensure that all such rules and standards are applied equally to all telecommunications providers.

(5) Nothing in this section shall restrict any telecommunications company's right to petition the commission to enforce rules, standards, and prices related to the provision of wholesale services.

(6) The rates for basic telecommunications services, as defined in RCW 80.36.600(7)(b), that were in effect on the date of filing of a notice of election by a local exchange carrier under subsection (2) of this section, shall be the maximum that the local exchange carrier may charge for such services. The rates for other services offered by the company, in the exchange or wire center areas they are offered at the time of such filing, shall be the maximum that the local exchange carrier may charge for a period of three years after such a filing. Government mandated charges, including but not limited to those for excise or gross receipts taxes, 911 service, the Washington telephone assistance program, or universal service are not part of a local exchange carrier's rates. An electing company may adjust rates subject to this subsection effective on ten days' notice, without commission approval, so long as no rate exceeds the maximum set by this subsection.

(7) Subsection (6) of this section does not apply to services classified as competitive under RCW 80.36.330. Services shall be classified as competitive under RCW 80.36.330 in a geographic area such as a company's exchange or wire center serving area, or geographically defined subunit thereof, and for a specific customer class. The commission shall make a determination under this subsection within thirty days of receiving a petition from an electing company and shall give great weight to whether other telecommunications companies are offering or can easily offer like or similar services to a majority of customers within the relevant customer class and exchange or wire center serving areas.

(8) Price cap regulation shall replace the current rate base, rate of return form of regulation by the commission of an electing company. The commission shall not consider rate of return, rate base or the earnings of an electing company in connection with its oversight of an electing company's operations.

(9) In order to eliminate regulatory requirements not needed to implement this section, an electing company is not subject to the following statutory provisions: RCW 80.04.130 (1) and (2), 80.04.300 through 80.04.360, 80.36.110, 80.36.140, 80.36.150, and chapter 80.16 RCW.

(10) Electing companies are exempt from the provisions of RCW 80.36.170 and 80.36.180, and are instead subject to the provisions of sections 3 and 4 of this act.

(11) An electing company may establish rates for new services or existing services deployed in exchange or wire center serving areas where they are not deployed at the date of election by filing a tariff or price list with the commission. The tariff or price list shall be effective upon filing or at such future time as the company shall designate, and is not subject to commission approval. The tariffs or price lists shall be printed and kept open to public inspection at those locations the commission may designate. So long as rates for services are in accordance with this section, the rates are deemed just and reasonable.

(12) An electing company may package any of its services with any other service it or its affiliates may offer, with or without a discount, provided that services whose rates are capped under this section may be purchased separately at the existing tariff rate. An electing company shall not offer services at rates that are below cost except pursuant to a promotional offering.

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

No telecommunications company shall make or give any undue or unreasonable preference or advantage to any person, corporation, or locality, or subject any particular person, corporation, or locality to any undue or unreasonable prejudice or disadvantage in any respect whatsoever. The commission shall have primary jurisdiction to determine whether any rate, regulation, or practice of a telecommunications company violates this section. This section does not apply to contracts offered by a telecommunications company classified as competitive under RCW 80.36.320 or to services classified as competitive under RCW 80.36.330 or to new services or to existing services deployed in exchange or wire center serving areas where they are not deployed at the date of election offered under section 2(11) of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 80.36 RCW to read as follows:

No telecommunications company shall, directly or indirectly, or by any special rate, rebate, drawback, or other device or method, unduly or unreasonably charge, demand, collect, or receive from any person or corporation a greater or less compensation for any service rendered or to be rendered with respect to communication by telecommunications or in connection therewith, except as authorized in this title or Title 81 RCW than it charges, demands, collects, or receives from any other person or corporation for doing a like and contemporaneous service with respect to communication by telecommunications under the same or substantially the same circumstances and conditions. The commission shall have primary jurisdiction to determine whether any rate, regulation, or practice of a telecommunications company violates this section. This section does not apply to contracts offered by a telecommunications company classified as competitive under RCW 80.36.320 or for services classified as competitive under RCW 80.36.330 or to new services or to existing services deployed in exchange or wire center serving areas where they are not deployed at the date of election offered under section 2(11) of this act.