Washington HB 1454: Concerning classification as a competitive telecommunications company for an incumbent local exchange carrier currently operating under an alternative form of regulation authorized by RCW 80.36.135.

Bill Text

AN ACT Relating to classification as a competitive 1
telecommunications company for an incumbent local exchange carrier 2
currently operating under an alternative form of regulation 3
authorized by RCW 80.36.135; and amending RCW 80.36.320.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 80.36.320 and 2008 c 181 s 408 are each amended to 6
read as follows:7
(1) The commission shall classify a telecommunications company as 8
a competitive telecommunications company if the services it offers 9
are subject to effective competition. Effective competition means 10
that the company's customers have reasonably available alternatives, 11
including alternatives that utilize technologies other than 12
traditional landline telephone service, and that the company does not 13
have a significant captive customer base. In determining whether a 14
company is competitive, factors the commission shall consider include 15
but are not limited to:16
(a) The number and sizes of alternative providers of service;17
(b) The extent to which services are available from alternative 18
providers in the relevant market;19
H-0462.1
HOUSE BILL 1454
State of Washington 68th Legislature 2023 Regular Session
By Representatives Ryu and Volz
Read first time 01/19/23. Referred to Committee on Innovation,
Community & Economic Development, & Veterans.
p. 1 HB 1454

(c) The ability of alternative providers to make functionally 1
equivalent or substitute services readily available at competitive 2
rates, terms, and conditions; and3
(d) Other indicators of market power which may include market 4
share, growth in market share, ease of entry, and the affiliation of 5
providers of services.6
The commission shall conduct the initial classification and any 7
subsequent review of the classification in accordance with such 8
procedures as the commission may establish by rule.9
(2) Competitive telecommunications companies shall be subject to 10
minimal regulation. The commission may waive any regulatory 11
requirement under this title for competitive telecommunications 12
companies when it determines that competition will serve the same 13
purposes as public interest regulation. The commission may waive 14
different regulatory requirements for different companies if such 15
different treatment is in the public interest. A competitive 16
telecommunications company shall at a minimum:17
(a) Keep its accounts according to regulations as determined by 18
the commission;19
(b) File financial reports with the commission as required by the 20
commission and in a form and at times prescribed by the commission; 21
and22
(c) Cooperate with commission investigations of customer 23
complaints.24
(3) The commission may revoke any waivers it grants and may 25
reclassify any competitive telecommunications company if it finds 26
that the company is no longer subject to effective competition and it 27
determines that the revocation or reclassification would protect the 28
public interest.29
(4) The commission may waive the requirements of RCW 80.36.170 30
and 80.36.180 in whole or in part for a competitive 31
telecommunications company if it finds that competition will serve 32
the same purpose and protect the public interest.33
(5) During a state of emergency declared under RCW 43.06.010(12), 34
the governor may waive or suspend the operation or enforcement of 35
this section or any portion of this section or under any 36
administrative rule, and issue any orders to facilitate the operation 37
of state or local government or to promote and secure the safety and 38
protection of the civilian population.39
p. 2 HB 1454

(6) In addition to the process in subsection (1) of this section, 1
an incumbent local exchange carrier may elect to be classified as a 2
competitive telecommunications company by providing written notice to 3
the commission if the carrier is operating under an alternative form 4
of regulation authorized by RCW 80.36.135 and the carrier does not 5
receive universal communications services program distributions under 6
RCW 80.36.650. Once competitive classification has been elected under 7
this subsection, the company's alternative form of regulation 8
automatically terminates.9
(7) Telecommunications companies identified in subsection (6) of 10
this section, as of the date they become competitively classified, 11
and for a period of three years after any election made pursuant to 12
subsection (6) of this section shall:13
(a) Not further geographically deaverage the nonrecurring and 14
monthly recurring rates for stand-alone business exchange service and 15
stand-alone residential exchange service in the state; and16
(b) Continue to tariff public safety network services to state 17
and county public safety entities necessary for routing and 18
transmission of emergency service (911) calls.19
(8) Telecommunications companies identified in subsection (6) of 20
this section, as of the date they become competitively classified, 21
and f