AN
ACT Relating to the provision of telecommunications services by public utility
districts and rural port districts; adding new sections to chapter 54.16 RCW;
adding new sections to chapter 53.08 RCW; adding a new section to chapter 80.01
RCW; and creating a new section.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature makes the following findings:
(1)
Access to telecommunications facilities and services is essential to the economic
well-being of both rural and urban areas.
(2)
Many persons and entities, particularly in rural areas, do not have adequate
access to telecommunications facilities and services.
(3)
Public utility districts and rural port districts may be well-positioned to
construct and operate telecommunications facilities.
NEW
SECTION. Sec. 2. A
new section is added to chapter 54.16 RCW to read as follows:
The
definitions in this section apply throughout this chapter unless the context
clearly requires otherwise.
(1)
"Commission" means the Washington utilities and transportation
commission.
(2)
"Telecommunications" has the same meaning as that contained in RCW
80.04.010.
(3)
"Telecommunications facilities" means lines, conduits, ducts, poles,
wires, cables, crossarms, receivers, transmitters, instruments, machines,
appliances, instrumentalities and all devices, real estate, easements,
apparatus, property, and routes used, operated, owned, or controlled by any
entity to facilitate the provision of telecommunications services.
(4)
"Wholesale telecommunications services" means the provision of
telecommunications services or facilities for resale by an entity authorized to
provide telecommunications services to the general public and internet service
providers.
NEW
SECTION. Sec. 3. A
new section is added to chapter 54.16 RCW to read as follows:
(1)
A public utility district in existence on the effective date of this act may
construct, purchase, acquire, develop, finance, lease, license, handle,
provide, add to, contract for, interconnect, alter, improve, repair, operate,
and maintain any telecommunications facilities within or without the district's
limits for the following purposes:
(a)
For the district's internal telecommunications needs; and
(b)
For the provision of wholesale telecommunications services within the district
and by contract with another public utility district.
Nothing
in this subsection shall be construed to authorize public utility districts to
provide telecommunications services to end users.
(2)
A public utility district providing wholesale telecommunications services shall
ensure that rates, terms, and conditions for such services are not unduly or
unreasonably discriminatory or preferential. Rates, terms, and conditions are
discriminatory or preferential when a public utility district offering rates,
terms, and conditions to an entity for wholesale telecommunications services
does not offer substantially similar rates, terms, and conditions to all other
entities seeking substantially similar services.
(3)
When a public utility district establishes a separate utility function for the
provision of wholesale telecommunications services, it shall account for any and
all revenues and expenditures related to its wholesale telecommunications
facilities and services separately from revenues and expenditures related to
its internal telecommunications operations. Any revenues received from the
provision of wholesale telecommunications services must be dedicated to the
utility function that includes the provision of wholesale telecommunications
services for costs incurred to build and maintain the telecommunications
facilities until such time as any bonds or other financing instruments executed
after the effective date of this act and used to finance the telecommunications
facilities are discharged or retired.
(4)
When a public utility district establishes a separate utility function for the
provision of wholesale telecommunications services, all telecommunications
services rendered by the separate function to the district for the district's
internal telecommunications needs shall be charged at its true and full value.
A public utility district may not charge its nontelecommunications operations
rates that are preferential or discriminatory compared to those it charges
entities purchasing wholesale telecommunications services.
(5)
A public utility district shall not exercise powers of eminent domain to
acquire telecommunications facilities or contractual rights held by any other
person or entity to telecommunications facilities.
(6)
Except as otherwise specifically provided, a public utility district may
exercise any of the powers granted to it under this title and other applicable
laws in carrying out the powers authorized under this section. Nothing in this
act limits any existing authority of a public utility district under this
title.
NEW
SECTION. Sec. 4. A
new section is added to chapter 54.16 RCW to read as follows:
(1)
Prior to financing or constructing telecommunications facilities for the
provision of wholesale telecommunications services, a public utility district
shall:
(a)
Develop a written implementation plan stating the district's intent to provide
wholesale telecommunications services which must include:
(i)
A general description of how the district intends to engage in the provision of
wholesale telecommunications services under section 3 of this act; and
(ii)
A discussion of how the public interest shall be served by the provision of
wholesale telecommunications services; and
(b)
Present the implementation plan to the district's commission, and make the plan
available to the general public. The commission shall conduct at least three
public hearings throughout the district to take public comment on the
implementation plan. At least two weeks prior to each public hearing, a notice
that includes a general description of the implementation plan and the date and
place of hearing shall be published in a newspaper of general circulation in
the county in which the district is located.
(2)
After the public hearings, the commission may adopt, alter, or reject the
implementation plan by resolution. Within ninety days after the adoption of
such resolution, a petition signed by at least ten percent of the registered
voters in the district may be submitted to the commission requiring the subject
of the resolution be put to a vote of the people in the district.
(3)
If a petition meets the requirements of subsection (2) of this section, the
commission shall submit the resolution to the legislative authority of the
county in which the district is located. Upon receipt of the resolution, the
legislative authority shall submit a proposal to the voters of the district at
the next general election regarding the question of providing wholesale
telecommunications services in the district in substantially the following
terms:
Shall Public Utility District No. . . . .
of . . . . . . . . County be authorized to
provide wholesale telecommunications services within the boundaries of the
district?
Yes
. . .
No
. . .
Within
ten days after such an election, the election board of the county shall canvass
the returns, and if at such an election a majority of voters voting on the
proposition shall vote in favor of such authority, the district shall have the
authority to provide wholesale telecommunications services.
(4)
A public utility district providing wholesale telecommunications services shall
submit a report to the appropriate committees of the legislature by December
1st of the second year of each biennium. The report must include, at a
minimum, a description of the following activities:
(a)
All activities relating to the construction, acquisition, operation, marketing,
and leasing of telecommunications facilities and wholesale telecommunications
services; and
(b)
The number of new locations connected to the telecommunications facilities
resulting from the provision of wholesale telecommunications services to
enhanced service providers and entities authorized to provide
telecommunications services to the general public.
NEW
SECTION. Sec. 5. A
new section is added to chapter 54.16 RCW to read as follows:
(1)
A person or entity that has requested wholesale telecommunications services
from a public utility district providing wholesale telecommunications services
under this chapter may petition the commission under the procedures set forth
in RCW 80.04.110 (1) through (3) if it believes the district's rates, terms,
and conditions are unduly or unreasonably discriminatory or preferential. The
person or entity shall provide the public utility district notice of its intent
to petition the commission and an opportunity to review within thirty days the
rates, terms, and conditions as applied to it prior to submitting its
petition. In determining whether a district is providing discriminatory or
preferential rates, terms, and conditions, the commission may consider such
matters as service quality, cost of service, technical feasibility of
connection points on the district's facilities, time of response to service
requests, system capacity, and other matters reasonably related to the
provision of wholesale telecommunications services. If the commission, after
notice and hearing, determines that a public utility district's rates, terms,
and conditions are unduly or unreasonably discriminatory or preferential, it
shall issue a final order finding noncompliance with this section and setting
forth the specific areas of apparent noncompliance. An order imposed under
this section shall be enforceable in any court of competent jurisdiction.
(2)
The commission may order a public utility district to pay a share of the costs
incurred by the commission in connection with adjudicating or enforcing the
provisions of this section.
(3)
Without limiting other remedies at law or equity, the commission and prevailing
party may also seek injunctive relief to compel compliance with an order.
(4)
Nothing in this section shall be construed to affect the commission's authority
and jurisdiction with respect to actions, proceedings, or orders permitted or
contemplated for a state commission under the federal telecommunications act of
1996, P.L. 104-104 (110 Stat. 56).
NEW
SECTION. Sec. 6. A
new section is added to chapter 53.08 RCW to read as follows:
The
definitions in this section apply throughout this chapter unless the context
clearly requires otherwise.
(1)
"Commission" means the Washington utilities and transportation
commission.
(2)
"Rural port district" means a port district formed under chapter
53.04 RCW and located in a county with an average population density of fewer
than one hundred persons per square mile.
(3)
"Telecommunications" has the same meaning as contained in RCW
80.04.010.
(4)
"Telecommunications facilities" means lines, conduits, ducts, poles,
wires, cables, crossarms, receivers, transmitters, instruments, machines,
appliances, instrumentalities and all devices, real estate, easements,
apparatus, property, and routes used, operated, owned, or controlled by any
entity to facilitate the provision of telecommunications services.
(5)
"Wholesale telecommunications services" means the provision of
telecommunications services or facilities for resale by an entity authorized to
provide telecommunications services to the general public and internet service
providers.
NEW
SECTION. Sec. 7. A
new section is added to chapter 53.08 RCW to read as follows:
(1)
A rural port district in existence on the effective date of this act may
construct, purchase, acquire, develop, finance, lease, license, handle,
provide, add to, contract for, interconnect, alter, improve, repair, operate,
and maintain any telecommunications facilities within or without the district's
limits for the following purposes:
(a)
For the district's own use; and
(b)
For the provision of wholesale telecommunications services within the
district's limits. Nothing in this subsection shall be construed to authorize
rural port districts to provide telecommunications services to end users.
(2)
A rural port district providing wholesale telecommunications services under
this section shall ensure that rates, terms, and conditions for such services
are not unduly or unreasonably discriminatory or preferential. Rates, terms,
and conditions are discriminatory or preferential when a rural port district
offering such rates, terms, and conditions to an entity for wholesale
telecommunications services does not offer substantially similar rates, terms,
and conditions to all other entities seeking substantially similar services.
(3)
When a rural port district establishes a separate utility function for the
provision of wholesale telecommunications services, it shall account for any
and all revenues and expenditures related to its wholesale telecommunications
facilities and services separately from revenues and expenditures related to
its internal telecommunications operations. Any revenues received from the provision
of wholesale telecommunications services must be dedicated to the utility
function that includes the provision of wholesale telecommunications services
for costs incurred to build and maintain the telecommunications facilities
until such time as any bonds or other financing instruments executed after the
effective date of this act and used to finance the telecommunications
facilities are discharged or retired.
(4)
When a rural port district establishes a separate utility function for the
provision of wholesale telecommunications services, all telecommunications
services rendered by the separate function to the district for the district's
internal telecommunications needs shall be charged at its true and full value.
A rural port district may not charge its nontelecommunications operations rates
that are preferential or discriminatory compared to those it charges entities
purchasing wholesale telecommunications services.
(5)
A rural port district shall not exercise powers of eminent domain to acquire
telecommunications facilities or contractual rights held by any other person or
entity to telecommunications facilities.
(6)
Except as otherwise specifically provided, a rural port district may exercise
any of the powers granted to it under this title and other applicable laws in
carrying out the powers authorized under this section. Nothing in this act
limits any existing authority of a rural port district under this title.
NEW
SECTION. Sec. 8. A
new section is added to chapter 53.08 RCW to read as follows:
(1)
Prior to financing or constructing telecommunications facilities for the
provision of wholesale telecommunications services, a rural port district
shall:
(a)
Develop a written implementation plan stating the district's intent to provide
wholesale telecommunications services which must include:
(i)
A general description of how the district intends to engage in the provision of
wholesale telecommunications services under section 7 of this act; and
(ii)
A discussion of how the public interest shall be served by the provision of
wholesale telecommunications services; and
(b)
Present the implementation plan to the district's commission, and make the plan
available to the general public. The commission shall conduct at least three
public hearings throughout the district to take public comment on the
implementation plan. At least two weeks prior to each public hearing, a notice
that includes a general description of the implementation plan and the date and
place of hearing shall be published in a newspaper of general circulation in
the county in which the district is located.
(2)
After the public hearings, the commission may adopt, alter, or reject the
implementation plan by resolution. Within ninety days after adoption of such
resolution, a petition signed by at least ten percent of the registered voters
in the district may be submitted to the commission requiring the subject of the
resolution be put to a vote of the people in the district.
(3)
If a petition meets the requirements of subsection (2) of this section, the
commission shall submit the resolution to the legislative authority of the
county in which the district is located. Upon receipt of the resolution, the
legislative authority shall submit a proposal to the voters of the district at
the next general election regarding the question of providing wholesale
telecommunications services in the district in substantially the following
terms:
Shall Port District No. . . . . of
. . . . . . . . County be authorized to
provide wholesale telecommunications services within the boundaries of the
district?
Yes . . .
No . . .
Within
ten days after such an election, the election board of the county shall canvass
the returns, and if at such an election a majority of voters voting on the
proposition shall vote in favor of such authority, the district shall have the
authority to provide wholesale telecommunications services.
(4)
A rural port district providing wholesale telecommunications services shall
submit a report to the appropriate committees of the legislature by December
1st of the second year of each biennium. The report must include, at a
minimum, a description of the following activities:
(a)
All activities relating to the construction, acquisition, operation, marketing,
and leasing of telecommunications facilities and wholesale telecommunications
services; and
(b)
The number of new locations connected to the telecommunications facilities
resulting from the provision of wholesale telecommunications services to
enhanced service providers and entities authorized to provide
telecommunications services to the general public.
NEW
SECTION. Sec. 9. A
new section is added to chapter 53.08 RCW to read as follows:
(1)
A person or entity that has requested wholesale telecommunications services
from a rural port district may petition the commission under the procedures set
forth in RCW 80.04.110 (1) through (3) if it believes the district's rates,
terms, and conditions are unduly or unreasonably discriminatory or
preferential. The person or entity shall provide the district notice of its
intent to petition the commission and an opportunity to review within thirty
days the rates, terms, and conditions as applied to it prior to submitting its
petition. In determining whether a district is providing discriminatory or
preferential rates, terms, and conditions, the commission may consider such
matters as service quality, technical feasibility of connection points on the
district's telecommunications facilities, time of response to service requests,
system capacity, and other matters reasonably related to the provision of
wholesale telecommunications services. If the commission, after notice and
hearing, determines that a rural port district's rates, terms, and conditions
are unduly or unreasonably discriminatory or preferential, it shall issue a
final order finding noncompliance with this section and setting forth the
specific areas of apparent noncompliance. An order imposed under this section
shall be enforceable in any court of competent jurisdiction.
(2)
The commission may order a rural port district to pay a share of the costs
incurred by the commission in adjudicating or enforcing this section.
(3)
Without limiting other remedies at law or equity, the commission and prevailing
party may also seek injunctive relief to compel compliance with an order.
(4)
Nothing in this section shall be construed to affect the commission's authority
and jurisdiction with respect to actions, proceedings, or orders permitted or
contemplated for a state commission under the federal telecommunications act of
1996, P.L. 104-104 (110 Stat. 56).
NEW
SECTION. Sec. 10. A
new section is added to chapter 80.01 RCW to read as follows:
The
commission is authorized to perform the duties required by sections 5 and 9 of
this act.
