BILL REQ. #:  S-1560.1 

Read first time 02/19/2003.   Referred to Committee on Technology & Communications.

     AN ACT Relating to the provision of wholesale telecommunications services by public utility districts; amending RCW 54.16.330; and adding a new section to chapter 54.16 RCW.

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

Sec. 1   RCW 54.16.330 and 2000 c 81 s 3 are each amended to read as follows:
     (1) A public utility district in existence on June 8, 2000, 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: (i) Provide telecommunications services to end users, whether such end users are public or private entities; (ii) market the services provided by entities authorized to provide telecommunications and internet services to end users; and (iii) purchase programming or other content for resale to entities authorized to provide telecommunications and internet 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 provides wholesale telecommunications services, it shall create a separate utility function for the provision of such services and shall separately account for the revenues, expenses, property, allocation of costs to its internal telecommunications needs, and the amount of funds required from other utility functions to support the provision of wholesale telecommunications services.
     (4) A public utility district providing wholesale telecommunications services shall provide, at a just and reasonable rate, nondiscriminatory access for private providers of telecommunications services to poles, conduits, dark fiber optic cable, or other permanent distribution facilities owned by the public utility district unless the facilities have insufficient capacity for such access and additional capacity cannot reasonably be added to the facilities. Except as provided in a facilities use contract between a public utility district and a private telecommunications service provider, a public utility district shall not require the removal or prohibit the replacement of telecommunications facilities owned by private telecommunications service providers from its facilities.
     (5) 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 June 8, 2000, and used to finance the telecommunications facilities are discharged or retired.
     (((4))) (6) 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))) (7) 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))) (8) 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 chapter 81, Laws of 2000 limits any existing authority of a public utility district under this title.

NEW SECTION.  Sec. 2   A new section is added to chapter 54.16 RCW to read as follows:
     A public utility district providing wholesale telecommunications services shall submit a report to the appropriate committees of the legislature by December 1st of the first year of each biennium. The report must include, at a minimum: (1) A description of all activities relating to the construction, acquisition, operation, marketing, and leasing of telecommunications facilities and wholesale telecommunications services; and (2) a description of the number of new locations connected to the telecommunications facilities resulting from the provision of wholesale telecommunications services to internet service providers and entities authorized to provide telecommunications services to the general public.