House Bill 1336 — State of Washington, 67th Legislature, 2021 Regular Session

Summary

House Bill 1336, State of Washington, 67th Legislature, 2021 Regular Session (H-0452.1), by Representatives Hansen, Ybarra, Berry, Simmons and others. It was read first time 01/21/21 and referred to the Committee on Community & Economic Development. The bill is an act relating to creating and expanding unrestricted authority for public entities to provide telecommunications services to end users, and it amends RCW 54.16.005, 54.16.330, 54.16.425, 35A.80.010, 53.08.005, and 53.08.370 and repeals RCW 54.16.420. It amends the powers of a public utility district to provide wholesale and retail telecommunications services, and says it may be known and cited as the public broadband act.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

     H-0452.1

                                 HOUSE BILL 1336


     State of Washington       67th Legislature           2021 Regular Session

     By Representatives Hansen, Ybarra, Berry, Simmons, Ramel,           Valdez,
     Leavitt, Morgan, Ryu, Peterson, Shewmake, Davis, Ormsby,            Gilday,
     Stonier, Eslick, Pollet, and Harris-Talley

     Read first time 01/21/21.      Referred   to   Committee   on   Community   &
     Economic Development.




1        AN ACT Relating to creating and expanding unrestricted authority
2    for public entities to provide telecommunications services to end
3    users; amending RCW 54.16.005, 54.16.330, 54.16.425, 35A.80.010,
4    53.08.005, and 53.08.370; adding a new section to chapter 35.92 RCW;
5    adding a new section to chapter 36.01 RCW; creating a new section;
6    and repealing RCW 54.16.420.


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


 8       Sec. 1. RCW 54.16.005 and 2000 c 81 s 2 are each amended to read
 9   as follows:
10       The definitions in this section apply throughout this chapter
11   unless the context clearly requires otherwise.
12       (1) "Broadband infrastructure" means networks of deployed
13   telecommunications equipment and technologies necessary to provide
14   high-speed internet access and other advanced telecommunications
15   services.
16       (2)   "Commission"    means   the    Washington  utilities   and
17   transportation commission.
18       (((2))) (3) "District commission" means the governing board of a
19   public utility district.



                                      p. 1                               HB 1336
 1       (4) "Retail telecommunications services" means the sale, lease,
 2   license, or indivisible right of use of telecommunications services
 3   or telecommunications facilities directly to end users.
 4       (5)   "Telecommunications"   has   the   same    meaning  as   ((that
 5   contained)) in RCW 80.04.010.
 6       (((3)))    (6)   "Telecommunications   facilities"     means   lines,
 7   conduits,   ducts,   poles,   wires,   cables,    crossarms,   receivers,
 8   transmitters, instruments, machines, appliances, instrumentalities
 9   and all devices, real estate, easements, apparatus, property, and
10   routes used, operated, owned, or controlled by any entity to
11   facilitate the provision of telecommunications services.
12       (((4))) (7) "Wholesale telecommunications services" means the
13   provision   of   telecommunications   services    or   telecommunications
14   facilities for resale by an entity ((authorized to provide)) that
15   provides retail telecommunications services ((to the general public
16   and internet service providers)).


17       Sec. 2.   RCW 54.16.330 and 2019 c 365 s 9 are each amended to
18   read as follows:
19       (1)(((a))) A public utility district in existence on June 8,
20   2000, may construct, purchase, acquire, develop, finance, lease,
21   license, handle, provide, add to, contract for, interconnect, alter,
22   improve, repair, operate, and maintain any telecommunications
23   facilities within or ((without)) outside of the district's limits for
24   any or all of the following purposes:
25       (((i))) (a) For the district's internal telecommunications needs;
26       (((ii))) (b) For the provision of wholesale telecommunications
27   services within the district and by contract with another public
28   utility district or with any federally recognized tribe located in
29   the state of Washington;
30       (c) For the provision of retail telecommunications services and
31   telecommunications facilities within the district; or
32       (d) For the provision of retail telecommunications services or
33   telecommunications facilities outside of the district by contract
34   with another public utility district, any political subdivision of
35   the state authorized to provide retail telecommunications services in
36   the state, or with any federally recognized tribe located in the
37   state of Washington.
38       (((b) Except as provided in subsection (8) of this section,
39   nothing in this section shall be construed to authorize public
                                       p. 2                           HB 1336
 1   utility districts to provide telecommunications services to end
 2   users.))
 3       (2) A public utility district providing wholesale or retail
 4   telecommunications services shall ensure that rates, terms, and
 5   conditions for such services are not unduly or unreasonably
 6   discriminatory or preferential. Rates, terms, and conditions are
 7   discriminatory or preferential when a public utility district
 8   offering rates, terms, and conditions to an entity for wholesale or
 9   retail telecommunications services does not offer substantially
10   similar rates, terms, and conditions to all other entities seeking
11   substantially similar services.
12       (3) A public utility district providing wholesale or retail
13   telecommunications services shall not be required to, but may,
14   establish a separate utility system or function for such purpose. In
15   either case, a public utility district providing wholesale or retail
16   telecommunications services shall separately account for any revenues
17   and   expenditures  for   those  services   according   to  standards
18   established by the state auditor pursuant to its authority in chapter
19   43.09 RCW and consistent with the provisions of this title. Any
20   revenues received from the provision of wholesale or retail
21   telecommunications services must be dedicated to costs incurred to
22   build and maintain any telecommunications facilities constructed,
23   installed, or acquired to provide such services, including payments
24   on debt issued to finance such services, until such time as any bonds
25   or other financing instruments executed after June 8, 2000, and used
26   to finance such telecommunications facilities are discharged or
27   retired.
28       (4) When a public utility district provides wholesale or retail
29   telecommunications services, all telecommunications services rendered
30   to the district for the district's internal telecommunications needs
31   shall be allocated or charged at its true and full value. A public
32   utility district may not charge its nontelecommunications operations
33   rates that are preferential or discriminatory compared to those it
34   charges entities purchasing wholesale or retail telecommunications
35   services.
36       (5) If a person or entity receiving retail telecommunications
37   services from a public utility district under this section has a
38   complaint   regarding  the   reasonableness  of  the   rates,  terms,
39   conditions, or services provided, the person or entity may file a
40   complaint with the district commission.
                                     p. 3                          HB 1336
 1       (6) A public utility district shall not exercise powers of
 2   eminent   domain   to     acquire    telecommunications  facilities or
 3   contractual   rights    held   by   any   other  person  or  entity to
 4   telecommunications facilities.
 5       (7) Except as otherwise specifically provided, a public utility
 6   district may exercise any of the powers granted to it under this
 7   title and other applicable laws in carrying out the powers authorized
 8   under this section. Nothing in chapter 81, Laws of 2000 limits any
 9   existing authority of a public utility district under this title.
10       (((8)(a)   If    an    internet   service   provider  operating on
11   telecommunications facilities of a public utility district that
12   provides wholesale telecommunications services but does not provide
13   retail telecommunications services, ceases to provide access to the
14   internet to its end-use customers, and no other retail service
15   providers are willing to provide service, the public utility district
16   may provide retail telecommunications services to the end-use
17   customers of the defunct internet service provider in order for end-
18   use customers to maintain access to the internet until a replacement
19   internet service provider is, or providers are, in operation.
20       (b) Within thirty days of an internet service provider ceasing to
21   provide access to the internet, the public utility district must
22   initiate a process to find a replacement internet service provider or
23   providers to resume providing access to the internet using
24   telecommunications facilities of a public utility district.
25       (c) For a maximum period of five months, following initiation of
26   the process begun in (b) of this section, or, if earlier than five
27   months, until a replacement internet service provider is, or
28   providers are, in operation, the district commission may establish a
29   rate for providing access to the internet and charge customers to
30   cover expenses necessary to provide access to the internet.
31       (9) The tax treatment of the retail telecommunications services
32   provided by a public utility district to the end-use customers during
33   the period specified in subsection (8) of this section must be the
34   same as if those retail telecommunications services were provided by
35   the defunct internet service provider.))


36       Sec. 3.   RCW 54.16.425 and 2018 c 186 s 3 are each amended to
37   read as follows:
38       (1) Property owned by a public utility district that is exempt
39   from property tax under RCW 84.36.010 is subject to an annual payment
                                     p. 4                          HB 1336
 1   in lieu of property taxes if the property consists of a broadband
 2   ((network)) infrastructure used in providing retail ((internet
 3   service)) telecommunications services.
 4       (2)(a) The amount of the payment must be determined jointly and
 5   in good faith negotiation between the public utility district that
 6   owns the property and the county or counties in which the property is
 7   located.
 8       (b) The amount agreed upon may not exceed the property tax amount
 9   that would be owed on the property comprising the broadband
10   ((network)) infrastructure used in providing retail ((internet
11   service)) telecommunications services as calculated by the department
12   of revenue. The public utility district must provide information
13   necessary for the department of revenue to make the required
14   valuation under this subsection. The department of revenue must
15   provide the amount of property tax that would be owed on the property
16   to the county or counties in which the broadband ((network))
17   infrastructure is located on an annual basis.
18       (c) If the public utility district and a county cannot agree on
19   the amount of the payment in lieu of taxes, either party may invoke
20   binding arbitration by providing written notice to the other party.
21   In the event that the amount of payment in lieu of taxes is submitted
22   to binding arbitration, the arbitrators must consider the government
23   services available to the public utility district's broadband
24   ((network)) infrastructure used in providing retail ((internet
25   service)) telecommunications services. The public utility district
26   and county must each select one arbitrator, the two of whom must pick
27   a third arbitrator. Costs of the arbitration, including compensation
28   for the arbitrators' services, must be borne equally by the parties
29   participating in the arbitration.
30       (3) By April 30th of each year, a public utility district must
31   remit the annual payment to the county treasurer of each county in
32   which   the    public  utility    district's   broadband    ((network))
33   infrastructure   used  in   providing   retail   ((internet   service))
34   telecommunications services is located in a form and manner required
35   by the county treasurer.
36       (4) The county must distribute the amounts received under this
37   section to all property taxing districts, including the state, in
38   appropriate tax code areas in the same proportion as it would
39   distribute property taxes from taxable property.


                                      p. 5                          HB 1336
1        (5) By December 1, 2019, and annually thereafter, the department
2    of revenue must submit a report to the appropriate legislative
3    committees detailing the amount of payments made under this section
4    and the amount of property tax that would be owed on the property
5    comprising the broadband ((network)) infrastructure used in providing
6    retail ((internet service)) telecommunications services.
7        (((6) The definitions in RCW 54.16.420 apply to this section.))

 8       NEW SECTION.   Sec. 4.   A new section is added to chapter 35.92
 9   RCW to read as follows:
10       (1) A city or town may construct, purchase, acquire, develop,
11   finance, lease, license, provide, contract for, interconnect, alter,
12   improve, repair, operate, and maintain telecommunications services or
13   telecommunications facilities for the purpose of furnishing the city
14   or town and its inhabitants with telecommunications services. The
15   city or town has full authority to regulate and control the use,
16   distribution, and price of the services.
17       (2) For purposes of this section, "telecommunications" has the
18   same meaning as in RCW 80.04.010.


19       Sec. 5.   RCW 35A.80.010 and 1988 c 127 s 2 are each amended to
20   read as follows:
21       (1) A code city may provide utility service within and
22   ((without)) outside of its limits and exercise all powers to the
23   extent authorized by general law for any class of city or town. The
24   cost of such improvements may be financed by procedures provided for
25   financing local improvement districts in chapters 35.43 through 35.54
26   RCW and by revenue and refunding bonds as authorized by chapters
27   35.41, 35.67 and 35.89 RCW and Title 85 RCW. A code city may protect
28   and operate utility services as authorized by chapters 35.88, 35.91,
29   35.92, and 35.94 RCW and may acquire and damage property in
30   connection therewith as provided by chapter 8.12 RCW and shall be
31   governed by the regulations of the department of ecology as provided
32   in RCW 90.48.110.
33       (2) For the purposes of this section:
34       (a) "Telecommunications" has the same meaning as in RCW
35   80.04.010; and
36       (b) "Utility services" may include water, sewer, solid waste,
37   electricity, or telecommunications services.


                                     p. 6                          HB 1336
 1       NEW SECTION.   Sec. 6.   A new section is added to chapter 36.01
 2   RCW to read as follows:
 3       (1) A county may construct, purchase, acquire, develop, finance,
 4   lease, license, provide, contract for, interconnect, alter, improve,
 5   repair,   operate,  and   maintain   telecommunications services  or
 6   telecommunications facilities for the purpose of furnishing the
 7   county and its inhabitants with telecommunications services. The
 8   county has full authority to regulate and control the use,
 9   distribution, and price of the services.
10       (2) For purposes of this section, "telecommunications" has the
11   same meaning as in RCW 80.04.010.

12       Sec. 7.   RCW 53.08.005 and 2018 c 169 s 1 are each amended to
13   read as follows:
14       The definitions in this section apply throughout this chapter
15   unless the context clearly requires otherwise.
16       (1)    "Commission"    means    the    Washington     utilities    and
17   transportation commission.
18       (2) "Retail telecommunications services" means the sale, lease,
19   license, or indivisible right of use of telecommunications services
20   or telecommunications facilities directly to end users.
21       (3) "Telecommunications" has the same meaning as contained in RCW
22   80.04.010.
23       (((3)))    (4)   "Telecommunications    facilities"     means   lines,
24   conduits,   ducts,   poles,   wires,    cables,   crossarms,    receivers,
25   transmitters, instruments, machines, appliances, instrumentalities
26   and all devices, real estate, easements, apparatus, property, and
27   routes used, operated, owned, or controlled by any entity to
28   facilitate the provision of telecommunications services.
29       (((4))) (5) "Wholesale telecommunications services" means the
30   provision   of   telecommunications   services    or   telecommunications
31   facilities   for   resale   by   an   entity    authorized    to   provide
32   telecommunications services ((to the general public and internet
33   service providers)). Wholesale telecommunications services includes
34   the provision of unlit or dark optical fiber for resale, but not the
35   provision of lit optical fiber.


36       Sec. 8.   RCW 53.08.370 and 2019 c 365 s 10 are each amended to
37   read as follows:


                                       p. 7                            HB 1336
 1       (1) A port district in existence on June 8, 2000, may construct,
 2   purchase, acquire, develop, finance, lease, license, handle, provide,
 3   add to, contract for, interconnect, alter, improve, repair, operate,
 4   and maintain any telecommunications facilities within or ((without))
 5   outside the district's limits for any or all of the following
 6   purposes:
 7       (a) For the district's own use; ((and))
 8       (b) For the provision of wholesale telecommunications services
 9   within or ((without)) outside the district's limits((. Nothing in
10   this subsection shall be construed to authorize port districts to
11   provide telecommunications services to end users)); or
12       (c) For the provision of retail telecommunications services
13   within or outside the district's limits.
14       (2) ((Except as provided in subsection (9) of this section, a)) A
15   port district providing wholesale or retail telecommunications
16   services under this section shall ensure that rates, terms, and
17   conditions for such services are not unduly or unreasonably
18   discriminatory or preferential. Rates, terms, and conditions are
19   discriminatory or preferential when a port district offering such
20   rates, terms, and conditions to an entity for wholesale or retail
21   telecommunications services does not offer substantially similar
22   rates, terms, and conditions to all other entities seeking
23   substantially similar services.
24       (3) When a port district establishes a separate utility function
25   for the provision of wholesale or retail telecommunications services,
26   it shall account for any and all revenues and expenditures related to
27   its wholesale or retail telecommunications facilities and services
28   separately from revenues and expenditures related to its internal
29   telecommunications operations. Any revenues received from the
30   provision of wholesale or retail telecommunications services must be
31   dedicated to the utility function that includes the provision of
32   wholesale or retail telecommunications services for costs incurred to
33   build and maintain the telecommunications facilities until such time
34   as any bonds or other financing instruments executed after June 8,
35   2000, and used to finance the telecommunications facilities are
36   discharged or retired.
37       (4) When a port district establishes a separate utility function
38   for the provision of wholesale or retail telecommunications services,
39   all telecommunications services rendered by the separate function to
40   the district for the district's internal telecommunications needs
                                     p. 8                          HB 1336
 1   shall be charged at its true and full value. A port district may not
 2   charge   its   nontelecommunications   operations   rates   that  are
 3   preferential or discriminatory compared to those it charges entities
 4   purchasing wholesale or retail telecommunications services.
 5       (5) A port district shall not exercise powers of eminent domain
 6   to acquire telecommunications facilities or contractual rights held
 7   by any other person or entity to telecommunications facilities.
 8       (6) Except as otherwise specifically provided, a port district
 9   may exercise any of the powers granted to it under this title and
10   other applicable laws in carrying out the powers authorized under
11   this section. Nothing in chapter 81, Laws of 2000 limits any existing
12   authority of a port district under this title.
13       (7) ((A port district that has not exercised the authorities
14   provided in this section prior to June 7, 2018, must develop a
15   business case plan before exercising the authorities provided in this
16   section. The port district must procure an independent qualified
17   consultant to review the business case plan, including the use of
18   public funds in the provision of wholesale telecommunications
19   services. Any recommendations or adjustments to the business case
20   plan made during third-party review must be received and either
21   rejected or accepted by the port commission in an open meeting.
22       (8))) A port district with telecommunications facilities for use
23   in the provision of wholesale or retail telecommunications in
24   accordance with subsection (1)(((b))) of this section may be subject
25   to local leasehold excise taxes under RCW 82.29A.040.
26       (((9))) (8)(a) A port district under this section may select a
27   telecommunications company to operate all or a portion of the port
28   district's telecommunications facilities.
29       (b) For the purposes of this section "telecommunications company"
30   means   any  for-profit   entity  owned   by   investors   that sells
31   telecommunications services to end users.
32       (c) Nothing in this subsection (((9))) (8) is intended to limit
33   or otherwise restrict any other authority provided by law.


34       NEW SECTION.   Sec. 9.   This act may be known and cited as the
35   public broadband act.




                                     p. 9                          HB 1336
1      NEW SECTION.   Sec. 10.   RCW 54.16.420 (Retail internet service—
2   Definitions—Authority—Requirements)     and   2018   c   186   s   1   are   each
3   repealed.

                                 --- END ---




                                    p. 10                                   HB 1336


File and source

File

2021-01-27_a28393_bill_1336.pdf

Size

122,722 bytes

SHA-256

a0afc635fdc60cb611b9b21c0210d79f9c0829d57a4763e2a4f8685a148ecd8d

Our copy

2021-01-27_a28393_bill_1336.pdf

Original

No public link identified.