H-4671              _______________________________________________

                                                   HOUSE BILL NO. 1984

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Todd, Jacobsen, Nelson, Unsoeld and Wineberry

Read first time 2/3/88 and referred to Committee on Energy & Utilities.

AN ACT Relating to the legislative review of chapter 450, Laws of 1985; amending RCW 80.36.901; and making an appropriation.

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

        Sec. 1.  Section 44, chapter 450, Laws of 1985 and RCW 80.36.901 are each amended to read as follows:

          The legislature shall conduct an intensive review of chapter 450, Laws of 1985 during the ((1989-1991 biennium)) 1988 legislative interim to determine whether the purposes of chapter 450, Laws of 1985 have been achieved and if further relaxation of regulatory requirements is in the public interest.  This review shall address the current, rate base, rate of return method of determining rates and whether such a method is still effective for today's changing telecommunications industry.  The review should address whether rates should be determined utilizing incentive regulation, price caps, automatic formula, or other methodology.  The review should examine the course of rates since divestiture, and the predicted direction in rate trends, costs in the telecommunications industry, and the impact of technology on employment levels.  The review should examine how labor costs, taxes, and accounting changes are tracked by regulation.  The review shall also examine whether the design of and response time of the competitive classification under RCW 80.36.330 has been effective in the competitive telecommunications environment.

The review shall be conducted by a joint select committee on telecommunications which shall consist of eight members of the legislature, four members from the house of representatives appointed by the speaker of the house of representatives, and four members from the senate appointed by the president of the senate.  The committee shall have its own staff and budget.  The committee shall exist through the 1987-1989 biennium, but shall present its first report to the legislature on these issues in January 1989.

NEW SECTION. Sec. 2.     The sum of one hundred fifty thousand dollars, or so much thereof as may be necessary, is appropriated for the biennium ending June 30, 1989, from the public service revolving fund to the joint select committee on telecommunications for the purposes of this act.