S-2025

AN ACT Relating to intercarrier relations between telecommunications companies and the authority of the utilities and transportation commission to resolve intercarrier disputes; amending RCW 80.01.060; adding new sections to chapter 80.36 RCW; creating a new section; prescribing penalties; and declaring an emergency.

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

PART I

CARRIER-TO-CARRIER SERVICE QUALITY

NEW SECTION. Sec. 1. FINDINGS AND INTENT. (1) The legislature finds that:

(a) Congress has required, through the telecommunications act of 1996, P.L. 104-104 (110 Stat. 56), incumbent carriers to make available to new entrants in a nondiscriminatory and just and reasonable manner the services and facilities incumbent carriers use to provide retail services to their own customers; and

(b) In order to take advantage of the service and facility offerings that congress requires incumbent carriers to provide: (i) New entrants must receive a level of interconnection that is at least equal in quality to that provided by an incumbent carrier to itself; and (ii) new entrants must have access to the operations support systems that incumbent carriers use to process orders from their own customers.

(2) The legislature further finds that:

(a) Unlike robust wholesale markets where market forces furnish wholesalers with the necessary incentive to provide timely and quality services to their buyers, as the single supplier of wholesale facilities and services in the local market, incumbent telecommunications carriers have no such incentive particularly when purchasers of their wholesale offerings are also their retail competitors; and

(b) Carrier-to-carrier service quality standards are a fair and objective mechanism through which competing carriers can monitor incumbent carriers' compliance, and incumbent carriers can demonstrate their compliance, with statutory obligations thereby: (i) Creating an important incentive for compliance; (ii) reducing the need for regulatory oversight by encouraging self-policing; and (iii) providing necessary information to facilitate timely and fair resolution of complaints when regulatory intervention is required.

(3) The legislature therefore intends to:

(a) Promote more efficient competition between incumbent carriers and new entrants by requiring carrier-to-carrier service quality standards related to access to interconnection and operations support systems;

(b) Direct the commission to establish carrier-to-carrier service quality standards in such a way as to accomplish the following goals: (i) Promote more efficient and effective communication between incumbent carriers and competing carriers; (ii) make more transparent the extent to which incumbent carriers are meeting their statutory obligations to provide to competing carriers, in a nondiscriminatory and just and reasonable manner, the services and facilities incumbent carriers use to provide retail services to their own customers; and (iii) fairly balance the need for information about an incumbent carrier's performance against the burdens imposed on an incumbent carrier in generating and distributing this information.

NEW SECTION. Sec. 2. DEFINITIONS. The definitions in this section apply throughout this act unless the context clearly requires otherwise.

(1) "Efficient and effective communication" means communication that allows a competing carrier to: (a) Access the customer data necessary to sign up customers; (b) place orders for services or facilities with the incumbent; (c) track the progress of those orders to completion; (d) receive relevant billing information from the incumbent; and (e) obtain prompt repair and maintenance for the elements and services it obtains from the incumbent.

(2) "Incumbent carrier" means an incumbent local exchange carrier, as that term is defined in the telecommunications act of 1996, P.L. 104-104 (110 Stat. 56).

(3) "Operations support systems" means the computer systems, data bases, and personnel that incumbent carriers rely upon to discharge the internal functions, including: (a) Preordering; (b) ordering; (c) provisioning; (d) maintenance and repair; and (e) billing, necessary to provide service to their customers.

(4) "Performance measurements" means the measures used to collect data regarding an incumbent carrier's performance, such as the period of time it takes to order and provision a resold service.

(5) "Performance standards" means specific performance goals or benchmarks, such as a requirement that an incumbent carrier complete all or some percentage of its resale orders for residential service within a specified period of time.

(6) "Reporting requirements" means the obligations of incumbent carriers to collect performance measurements and provide the results of those measurements to other parties.

(7) "Technical standards" means the establishment of industry-wide operations support systems interface specifications.

NEW SECTION. Sec. 3. INCUMBENT CARRIER DUTIES. (1) An incumbent carrier has a duty to provide interconnection between its network and that of a requesting carrier that is at least equal in quality to that which the incumbent provides itself, a subsidiary, an affiliate, or any other party.

(2)(a) For those operations support systems provided to competing carriers that are analogous to functions that an incumbent carrier provides itself in connection with retail service offerings, an incumbent carrier has a duty to provide access to competing carriers that is equivalent to the level of access that the incumbent provides itself in terms of quality, accuracy, and timeliness; and (b) for those operations support system functions that have no direct retail analog, an incumbent carrier has a duty to provide access sufficient to allow an efficient competitor a meaningful opportunity to compete.

NEW SECTION. Sec. 4. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION RULES REGARDING INTERCONNECTION AND OPERATIONS SUPPORT SYSTEMS. (1) Not later than December 1, 1999, the commission shall adopt by rule performance measurements that gauge the timeliness and quality of an incumbent carrier's interconnection with competing carriers.

(2) Not later than December 1, 1999, the commission shall adopt by rule performance measurements that gauge an incumbent carrier's ability to provision operations support systems to competing carriers in terms of timeliness, quality, and accuracy.

(3) The rules adopted under this section shall not include technical standards.

(4) For each of the performance measurements adopted under this section, the commission rules may specify which incumbent carriers must make performance measurement reports and under what circumstances, who may receive performance measurement reports and under what circumstances, the frequency with which reports must be generated and distributed, and appropriate auditing procedures.

(5) The rules shall not require performance measurement reports by any rural telephone company that is exempt from section 251(c) of the telecommunications act of 1996, P.L. 104-104 (110 Stat. 56), unless and until the commission has terminated the exemption pursuant to section 251(f) of the telecommunications act of 1996, P.L. 104-104 (110 Stat. 56).

(6) The rules shall address the circumstances under which competing carriers, the commission, and the general public may receive copies of the reports.

(7) In adopting its carrier-to-carrier service quality rules, the commission shall consider all practical methodologies that would increase the consistency and predictability of determining whether an incumbent carrier is meeting its statutory obligations to provide interconnection and operations support systems. Wherever possible, the rules shall also identify performance standards for evaluating when an incumbent carrier's performance warrants further regulatory scrutiny.

(8) The commission shall consider, and periodically review, the performance measurements and performance standards adopted and proposed by the federal communications commission and other state commissions in an effort to promote regional consistency and reduce unnecessarily duplicative or inconsistent requirements.

PART II

INTERCONNECTION ENFORCEMENT AND EXPEDITED DISPUTE RESOLUTION

NEW SECTION. Sec. 5. (1) The commission is authorized and directed to handle on an expedited basis, as provided in this section and by rule of the commission, any complaint by a telecommunications company that another telecommunications company has violated:

(a) Any duty or obligation imposed upon telecommunications carriers under 47 U.S.C. Sec. 251 (a) through (c);

(b) Any agreement approved by the commission under 47 U.S.C. Sec. 252(e); or

(c) Any act or practice which the commission may identify by rule as serving as a barrier to competitive entry into the telecommunications market.

The powers authorized in this section are in addition to, and not exclusive of, any other powers granted to the commission. The remedies authorized in this section are in addition to, and not exclusive of, any other remedies available at law to the parties.

(2) Upon the filing of a complaint seeking expedited relief under this section, the complainant may petition the commission for emergency relief. The commission may grant a petition for emergency relief at any time with or without an evidentiary hearing. The commission may grant a petition for emergency relief if it finds that:

(a) The complainant is likely to succeed on the merits;

(b) The complainant is likely to suffer irreparable harm if emergency relief is not granted;

(d) An order granting emergency relief is in the public interest.

(3) An order granting emergency relief shall direct the respondent telecommunications company to act or refrain from acting as the commission finds necessary to avoid, prevent, or mitigate the complained-of harm. Violation of an order granting emergency relief shall subject the respondent telecommunications company to penalties under section 6 of this act. An order granting emergency relief shall set a deadline for compliance with the order before such penalties are imposed against the respondent telecommunications company. An order granting emergency relief without a hearing shall remain in effect for no more than ten days but may be extended once for an additional ten-day period. An order granting emergency relief after a hearing shall remain in effect until the commission issues a final order on the complaint filed under subsection (1) of this section.

(4) As a condition to the issuance of any emergency order, the commission may require the party requesting the emergency relief to provide an appropriate bond or security.

NEW SECTION. Sec. 6. (1) Every telecommunications company shall comply with all terms of an interconnection agreement to which it is a party, that has been approved by the commission under 47 U.S.C. Sec. 252(e). Any telecommunications company that fails to comply with the terms of such an agreement, or any of its duties or obligations arising under 47 U.S.C. Sec. 251 (a) through (c) shall be subject to a penalty of not more than ten thousand dollars for each and every violation. Each violation of such an interconnection agreement or obligation is a separate and distinct offense and, in the case of a continuing violation, every day's continuance is a separate and distinct offense.

(2) Any telecommunications company that violates an order of the commission issued to enforce the terms of an interconnection agreement approved under 47 U.S.C. Sec. 252(e) or to enforce duties or obligations arising under 47 U.S.C. Sec. 251 (a) through (c), including an order granting emergency relief under section 5 of this act, shall be subject to a penalty of up to twenty-five thousand dollars for each and every violation. Each violation of such an order shall be a separate and distinct offense and, in the case of a continuing violation, every day's continuance shall be a separate and distinct offense.

(3) Payment of penalties imposed under this section shall be paid into the public service revolving fund within thirty days of issuance by the commission of an order imposing penalties. The commission may petition a court of competent jurisdiction for enforcement of its order requiring payment of penalties imposed under this section.

Sec. 7. RCW 80.01.060 and 1995 c 331 s 3 are each amended to read as follows:

(1) The commission may designate employees of the commission as hearing examiners, administrative law judges, and review judges when it deems such action necessary for its general administration. The designated employees have power to administer oaths, to issue subpoenas for the attendance of witnesses and the production of papers, waybills, books, accounts, documents, and testimony, to examine witnesses, and to receive testimony in any inquiry, investigation, hearing, or proceeding in any part of the state, under such rules as the commission may adopt.

(2) In general rate increase filings by a natural gas, electric, or telecommunications company, the designated employee may preside, but may not enter an initial order unless expressly agreed to in writing by the company making the filing. In all other cases, the designated employee may enter an initial order including findings of fact and conclusions of law in accordance with RCW 34.05.461(1)(a) and (c) and (3) through (9) or 34.05.485. RCW 34.05.461 (1)(b) and (2) do not apply to entry of orders under this section.

(3) The designated employee may not enter final orders, except that the commission may designate persons by rule to preside and enter final orders in emergency adjudications under RCW 34.05.479 and expedited dispute resolution proceedings under section 4 of this act.

((~~(3)~~)) (4) If the designated employee does not enter an initial order as provided in subsection (2) of this section, then a majority of the members of the commission who are to enter the final order must hear or review substantially all of the record submitted by any party.

PART III

MISCELLANEOUS

NEW SECTION. Sec. 8. Section captions and part headings used in this act are not any part of the law.

NEW SECTION. Sec. 9. Sections 1 through 6 of this act are each added to chapter 80.36 RCW.

NEW SECTION. Sec. 10. 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.

NEW SECTION. Sec. 11. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.