BILL REQ. #:  S-0631.1 

Read first time 01/24/2007.   Referred to Committee on Water, Energy & Telecommunications.

     AN ACT Relating to the modernization of the regulation of telecommunications; amending RCW 80.24.010; adding a new section to chapter 80.04 RCW; adding a new section to chapter 80.08 RCW; adding a new section to chapter 80.12 RCW; adding a new section to chapter 80.16 RCW; adding a new section to chapter 80.20 RCW; adding a new section to chapter 80.36 RCW; and adding a new chapter to Title 80 RCW.

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

NEW SECTION.  Sec. 1   The legislature finds that the competitiveness of the telecommunications marketplace has created consumer choice and strengthened the state's position as a national leader in the area of technology services and infrastructure. The legislature finds that the state's leadership in technology and communications provides the foundation for economic activity throughout the whole state and it is the goal of the legislature to extend the benefits of this activity to as many of the state's citizens as possible. The legislature further finds that the competitiveness of telecommunications services makes regulatory modernization necessary to ensure fair regulatory treatment of telecommunications service providers who provide similar services.
     The legislature recognizes that it is vital to achieve regulatory modernization for telecommunications service providers who are responding to consumer choice by investing in infrastructure, which directly benefits consumers and the state. Therefore, it is the intent of the legislature to maintain and strengthen consumer choice, provide incentive for increased private investment in technology infrastructure, and provide regulatory fairness among competitive telecommunications service providers by modernizing the state's telecommunications laws.

NEW SECTION.  Sec. 2   A telecommunications company may elect to be regulated by the commission exclusively under this chapter by filing written notice with the commission, stating an effective date not sooner than five days after filing. No provision of any other chapter of this title applies to a telecommunications company making an election under this section unless such provision is specifically set forth in this chapter, and such provisions are as existing on the effective date of this act.

NEW SECTION.  Sec. 3   The rates, terms, and conditions of an electing company's services shall not be regulated by the commission except as specifically set forth in this section.
     (1) For a period of five years after an election, the rates for basic telecommunications services, as defined by RCW 80.36.600(6)(b) as of the filing of an election, shall not be increased by more than one dollar in any twelve-month period.
     (a) This limitation does not apply to packaged or bundled offerings that include basic telecommunications service.
     (b) Basic telecommunications service shall include mandatory extended area service in effect for the electing company as of the filing of its election.
     (c) Rates for basic telecommunications service shall not be more than twenty percent higher than the rate charged for such service in the company's exchange that has the greatest number of basic telecommunications service lines in service.
     (2) Notwithstanding this section, any limitation on rate changes for any service to which an electing company has agreed and which the commission has approved prior to the filing of an election shall apply according to the terms of such agreement.
     (3) An electing company that is designated an eligible telecommunications carrier in this state pursuant to 47 U.S.C. Sec. 214(e) shall not require that basic telecommunications services be purchased only as part of a package or bundled offering.
     (4) For a period of two years after the effective date of an election, an electing company's rates for any telecommunications services other than basic telecommunications services that would be subject to regulation by the commission but for the company's election shall not be more than fifty percent higher than the rate charged for such service in the company's exchange in which the greatest quantity of such service is being provided.
     (5) For a period of not less than one hundred eighty days and not more than two years from the effective date of its election under this section, an electing company shall continue to maintain and continue to file with the commission schedules setting forth the rates, terms, and conditions of its telecommunications services that would be subject to regulation by the commission but for the company's election. No more than thirty days before the withdrawal of such a schedule, or part of it, the company shall provide each customer of an affected service with information about the rates, terms, and conditions under which the service will continue to be provided. If the rates, terms, and conditions do not change upon withdrawal of the schedule, such rates, terms, and conditions shall be binding to the same extent as under the filed schedule. If any of the rates, terms, and conditions do change upon withdrawal, the company must provide each affected customer with a reasonable opportunity to decide whether to accept the changed rate, term, or condition. If a customer does not cancel service within thirty days after notice of the change is given, the customer will be deemed to have accepted all the rates, terms, and conditions offered by the company.
     (6) Other than the schedules described in subsection (5) of this section, electing companies shall not file with the commission contracts for telecommunications services.

NEW SECTION.  Sec. 4   The operations of an electing company shall not be regulated by the commission except as specifically set forth in this section.
     (1) An electing company that is designated an eligible telecommunications carrier in this state pursuant to 47 U.S.C. Sec. 214(e) is subject to RCW 80.36.500 and to competitively neutral rules of the commission necessary to implement the same.
     (2) An electing company is subject to RCW 80.36.225 and to competitively neutral rules of the commission necessary to implement the same.
     (3) An electing company is subject to RCW 80.36.390(7) and to competitively neutral rules of the commission necessary to implement the same.
     (4) An electing company that is designated an eligible telecommunications carrier in this state pursuant to 47 U.S.C. Sec. 214(e) is subject to RCW 80.36.410 through 80.36.475 and to competitively neutral rules of the commission necessary to implement the same.
     (5) An electing company is subject to chapter 80.54 RCW and to competitively neutral rules of the commission necessary to implement the same.
     (6) The following provisions of chapter 80.36 RCW and competitively neutral rules of the commission necessary to implement the same apply to the operations of electing companies: RCW 80.36.010, 80.36.020, 80.36.030, 80.36.040, 80.36.050, 80.36.060, 80.36.070, 80.36.145, 80.36.360, 80.36.370, 80.36.400, and 80.36.520.

NEW SECTION.  Sec. 5   The provisions of chapter 80.04 RCW other than RCW 80.04.080, 80.04.090, 80.04.100, 80.04.270, 80.04.280, 80.04.290, 80.04.300 through 80.04.330, 80.04.350, and 80.04.360 apply to electing companies, but only to the extent that they are competitively neutral and consistent and compatible with the authority of the commission as set forth in this chapter.

NEW SECTION.  Sec. 6   The commission may informally or upon formal complaint by an affected person resolve disputes concerning an electing company's adherence to the rates, terms, or conditions of its services that would be subject to commission regulation but for its election, or its compliance with applicable commission rules or Washington statutes.

NEW SECTION.  Sec. 7   The commission is authorized to take actions, conduct proceedings, and enter orders as to an electing company as permitted or contemplated for a state commission under the federal telecommunications act of 1996, P.L. 104-104 (11 Stat. 56).

NEW SECTION.  Sec. 8   A new section is added to chapter 80.04 RCW to read as follows:
     This chapter applies to telecommunications companies electing to operate under chapter 80.-- RCW (sections 1 through 7 of this act) only to the extent provided in section 5 of this act.

NEW SECTION.  Sec. 9   A new section is added to chapter 80.08 RCW to read as follows:
     This chapter does not apply to telecommunications companies electing to operate under chapter 80.-- RCW (sections 1 through 7 of this act).

NEW SECTION.  Sec. 10   A new section is added to chapter 80.12 RCW to read as follows:
     This chapter does not apply to telecommunications companies electing to operate under chapter 80.-- RCW (sections 1 through 7 of this act).

NEW SECTION.  Sec. 11   A new section is added to chapter 80.16 RCW to read as follows:
     This chapter does not apply to telecommunications companies electing to operate under chapter 80.-- RCW (sections 1 through 7 of this act).

NEW SECTION.  Sec. 12   A new section is added to chapter 80.20 RCW to read as follows:
     This chapter does not apply to telecommunications companies electing to operate under chapter 80.-- RCW (sections 1 through 7 of this act).

NEW SECTION.  Sec. 13   A new section is added to chapter 80.36 RCW to read as follows:
     This chapter applies to telecommunications companies electing to operate under chapter 80.-- RCW (sections 1 through 7 of this act) only to the extent provided in section 4 of this act.

Sec. 14   RCW 80.24.010 and 2003 c 296 s 1 are each amended to read as follows:
     (1) Except as set forth in subsection (2) of this section, every public service company subject to regulation by the commission shall, on or before the date specified by the commission for filing annual reports under RCW 80.04.080, file with the commission a statement on oath showing its gross operating revenue from intrastate operations for the preceding calendar year or portion thereof and pay to the commission a fee equal to one-tenth of one percent of the first fifty thousand dollars of gross operating revenue, plus two-tenths of one percent of any gross operating revenue in excess of fifty thousand dollars: PROVIDED, That the commission may, by rule, set minimum fees that do not exceed the cost of collecting the fees. The commission may by rule waive any or all of the minimum fee established pursuant to this section.
     The percentage rates of gross operating revenue to be paid in any year may be decreased by the commission for any class of companies subject to the payment of such fees, by general order entered before March 1st of such year, and for such purpose such companies shall be classified as follows:
     Electrical, gas, water, telecommunications, and irrigation companies shall constitute class one. Every other company subject to regulation by the commission, for which regulatory fees are not otherwise fixed by law shall pay fees as herein provided and shall constitute additional classes according to kinds of businesses engaged in.
     Any payment of the fee imposed by this section made after its due date shall include a late fee of two percent of the amount due. Delinquent fees shall accrue interest at the rate of one percent per month.
     (2) A telecommunications company electing regulation under chapter 80.-- RCW (sections 1 through 7 of this act) shall pay a regulatory fee as follows:
     (a) For the calendar year in which it makes its election and for the first calendar year after its election, such company shall pay a fee in the same amount as its fee paid for the year immediately preceding its election.
     (b) For the next three calendar years such company shall pay a fee in the amount of two-thirds of the fee paid under (a) of this subsection.
     (c) Thereafter, such company shall pay a fee that is the lesser of (i) the amount of the fee paid under (b) of this subsection; or (ii) two-tenths of one percent of any gross operating revenue for basic telecommunications service provided in this state during such period as such company is an eligible telecommunications carrier in this state pursuant to 47 U.S.C. Sec. 214(e).

NEW SECTION.  Sec. 15   Sections 1 through 7 of this act constitute a new chapter in Title 80 RCW.