House Bill 1738 — State Universal Communication Services Program (Washington, 2023 Regular Session)

Summary

House Bill 1738 of the State of Washington, 2023 Regular Session, sponsored by Representatives Ryu and Pollet. It was read first time on February 2, 2023 and referred to the Committee on Innovation, Community & Economic Development, & Veterans. The title describes an act relating to the state universal communication services program, amending RCW 80.36.630, 80.36.650, 80.36.660, 80.36.670, 80.36.680, 80.36.690, and 80.36.700 and providing expiration dates. Section 1 amends the definitions, including basic telecommunications services such as single-party service. Section 7, amending RCW 80.36.700, addresses termination of the universal communications services program and expiration of the section.

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Full text

     H-0993.1

                                HOUSE BILL 1738


     State of Washington       68th Legislature       2023 Regular Session

     By Representatives Ryu and Pollet

     Read first time 02/02/23.      Referred to Committee   on   Innovation,
     Community & Economic Development, & Veterans.




1        AN ACT Relating to the state universal communication services
2    program; amending RCW 80.36.630, 80.36.650, 80.36.660, 80.36.670,
3    80.36.680, 80.36.690, and 80.36.700; and providing expiration dates.


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


 5       Sec. 1.   RCW 80.36.630 and 2019 c 365 s 11 are each amended to
 6   read as follows:
 7       (1) The definitions in this section apply throughout this section
 8   and RCW 80.36.650 through 80.36.690 and 80.36.610 unless the context
 9   clearly requires otherwise.
10       (a) "Basic residential service" means those services set out in
11   47 C.F.R. Sec. 54.101(a) (2011), as it existed on May 13, 2019, and
12   mandatory extended area service approved by the commission.
13       (b) "Basic telecommunications services" means the following
14   services:
15       (i) Single-party service;
16       (ii) Voice grade access to the public switched network;
17       (iii) Support for local usage;
18       (iv) Dual tone multifrequency signaling (touch-tone);
19       (v) Access to emergency services (911);
20       (vi) Access to operator services;
21       (vii) Access to interexchange services;
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 1       (viii) Access to directory assistance; and
 2       (ix) Toll limitation services.
 3       (c) "Broadband service" means any service providing advanced
 4   telecommunications capability, including internet access and access
 5   to high quality voice, data, graphics, or video.
 6       (d) "Communications provider" means a provider of communications
 7   services that assigns a working telephone number to a final consumer
 8   for intrastate wireline or wireless communications services or
 9   interconnected voice over internet protocol service, and includes
10   local exchange carriers.
11       (e)   "Communications   services"    includes   telecommunications
12   services and information services and any combination thereof.
13       (f) "Incumbent local exchange carrier" has the same meaning as
14   set forth in 47 U.S.C. Sec. 251(h).
15       (g) "Incumbent public network" means the network established by
16   incumbent local exchange carriers for the delivery of communications
17   services to customers that is used by communications providers for
18   origination or termination of communications services by or to
19   customers.
20       (h) "Interconnected voice over internet protocol service" means
21   an interconnected voice over internet protocol service that: (i)
22   Enables real-time, two-way voice communications; (ii) requires a
23   broadband connection from the user's location; (iii) requires
24   internet protocol-compatible customer premises equipment; and (iv)
25   permits users generally to receive calls that originate on the public
26   network and to terminate calls to the public network.
27       (i) "Program" means the state universal communications services
28   program created in RCW 80.36.650.
29       (j) "Telecommunications" has the same meaning as defined in 47
30   U.S.C. Sec. 153(43).
31       (k) "Telecommunications act of 1996" means the telecommunications
32   act of 1996 (P.L. 104-104, 110 Stat. 56).
33       (2) This section expires July 1, ((2025)) 2035.


34       Sec. 2.   RCW 80.36.650 and 2019 c 365 s 12 are each amended to
35   read as follows:
36       (1) A state universal communications services program is
37   established. The program is established to protect public safety and
38   welfare   under   the    authority  of   the   state   to   regulate
39   telecommunications under Article XII, section 19 of the state
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 1   Constitution. The purpose of the program is to support continued
 2   provision of basic telecommunications services under rates, terms,
 3   and conditions established by the commission and the provision,
 4   enhancement, and maintenance of broadband services, recognizing that,
 5   historically, the incumbent public network functions to provide all
 6   communications services including, but not limited to, voice and
 7   broadband services.
 8       (2) Under the program, eligible communications providers may
 9   receive distributions from the universal communications services
10   account created in RCW 80.36.690 in exchange for the affirmative
11   agreement to provide continued telecommunications services under the
12   rates, terms, and conditions established by the commission under this
13   chapter, and broadband services, for the period covered by the
14   distribution. The commission must implement and administer the
15   program under terms and conditions established in RCW 80.36.630
16   through 80.36.690. Expenditures for the program may not exceed ((five
17   million dollars)) $5,000,000 per fiscal year; provided, however, that
18   if less than ((five million dollars)) $5,000,000 is expended in any
19   fiscal year, the unexpended portion must be carried over to
20   subsequent fiscal years and, unless fully expended, must be available
21   for program expenditures in such subsequent fiscal years in addition
22   to the ((five million dollars)) $5,000,000 allotted for each of those
23   subsequent fiscal years.
24       (3)   A   communications   provider   is   eligible  to   receive
25   distributions from the account if:
26       (a)(i) The communications provider is: (A) An incumbent local
27   exchange carrier serving fewer than ((forty thousand)) 40,000 access
28   lines in the state; or (B) a radio communications service company
29   providing wireless two-way voice communications service and broadband
30   services to less than the equivalent of ((forty thousand)) 40,000
31   access lines in the state. For purposes of determining the access
32   line threshold in this subsection, the access lines or equivalents of
33   all wireline affiliates must be counted as a single threshold, if the
34   lines or equivalents are located in Washington;
35       (ii) The communications provider has adopted a plan to provide,
36   enhance, ((or)) and maintain broadband services in its service area;
37   and
38       (iii) The communications provider meets any other requirements
39   established by the commission pertaining to the provision of


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 1   communications services, including basic telecommunications services;
 2   or
 3       (b) The communications provider demonstrates to the commission
 4   that the communications provider is able to provide the same or
 5   comparable services at the same or similar service quality standards
 6   at a lower price; and: (i) Will provide communications services to
 7   all customers in the exchange or exchanges in which it will provide
 8   service; and (ii) submits to the commission's regulation of its
 9   service as if it were the incumbent local exchange company serving
10   the exchange or exchanges for which it seeks distribution from the
11   account.
12       (4)(a) Distributions to eligible communications providers are
13   based on criteria established by the commission.
14       (b) If the program does not have sufficient funds to fully fund
15   the distribution formula set out in (a) of this subsection,
16   distributions must be reduced on a pro rata basis using the amounts
17   calculated for that year's program support as the basis of the pro
18   rata calculations.
19       (c) To receive a distribution under the program, an eligible
20   communications provider must affirmatively consent to continue
21   providing communications services to its customers under rates,
22   terms, and conditions established by the commission pursuant to this
23   chapter for the period covered by the distribution.
24       (5) The program is funded from amounts deposited by the
25   legislature   in   the  universal   communications  services  account
26   established in RCW 80.36.690. The commission must operate the program
27   within amounts appropriated for this purpose and deposited in the
28   account.
29       (6) The commission must periodically review the accounts and
30   records of any communications provider that receives distributions
31   under the program to ensure compliance with the program and monitor
32   the providers' use of the funds.
33       (7) The commission must establish an advisory board, consisting
34   of a reasonable balance of representatives from different types of
35   stakeholders, including but not limited to communications providers
36   and consumers, to advise the commission on any rules and policies
37   governing the operation of the program.
38       (8) The program terminates on June 30, ((2024)) 2034, and no
39   distributions may be made after that date.
40       (9) This section expires July 1, ((2025)) 2035.
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 1       Sec. 3.   RCW 80.36.660 and 2019 c 365 s 13 are each amended to
 2   read as follows:
 3       (1) To implement the program, the commission must adopt rules for
 4   the following purposes and review them no less than every five years:
 5       (a) Operation of the program, including criteria for: Eligibility
 6   for distributions; use of the funds; identification of any reports or
 7   data that must be filed with the commission, including, but not
 8   limited to, how a communication provider used the distributed funds;
 9   and the communications provider's infrastructure;
10       (b) Operation of the universal communications services account
11   established in RCW 80.36.690;
12       (c)   Establishment   of   the   criteria    used   to   calculate
13   distributions; and
14       (d) Readoption, amendment, or repeal of any existing rules
15   adopted pursuant to RCW 80.36.610 as necessary to be consistent with
16   RCW 80.36.630 through 80.36.690 and 80.36.610.
17       (2) This section expires July 1, ((2025)) 2035.


18       Sec. 4.   RCW 80.36.670 and 2019 c 365 s 14 are each amended to
19   read as follows:
20       (1) In addition to any other penalties prescribed by law, the
21   commission may impose penalties for failure to make or delays in
22   making or filing any reports required by the commission for
23   administration of the program. In addition, the commission may
24   recover amounts determined to have been improperly distributed under
25   RCW 80.36.650. For the purposes of this section, the provisions of
26   RCW 80.04.380 through 80.04.405, inclusive, apply to all companies
27   that receive support from the universal communications services
28   account created in RCW 80.36.690.
29       (2) Any action taken under this section must be taken only after
30   providing the affected communications provider with notice and an
31   opportunity for a hearing, unless otherwise provided by law.
32       (3) Any amounts recovered under this section must be deposited in
33   the universal communications services account created in RCW
34   80.36.690.
35       (4) This section expires July 1, ((2025)) 2035.


36       Sec. 5.   RCW 80.36.680 and 2019 c 365 s 15 are each amended to
37   read as follows:


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1        (1) The commission may delegate to the commission secretary or
2    other staff the authority to resolve disputes and make other
3    administrative   decisions  necessary   to   the  administration and
4    supervision of the program consistent with the relevant statutes and
5    commission rules.
6        (2) This section expires July 1, ((2025)) 2035.

 7       Sec. 6.   RCW 80.36.690 and 2019 c 365 s 16 are each amended to
 8   read as follows:
 9       (1) The universal communications services account is created in
10   the custody of the state treasurer. Revenues to the account consist
11   of moneys deposited in the account by the legislature and any
12   penalties or other recoveries received pursuant to RCW 80.36.670.
13   Expenditures from the account may be used only for the purposes of
14   the universal communications services program established in RCW
15   80.36.650 and commission expenses related to implementation and
16   administration of the provisions of RCW 80.36.630 through 80.36.690
17   and section 212, chapter 8, Laws of 2013 2nd sp. sess. Only the
18   secretary of the commission or the secretary's designee may authorize
19   expenditures from the account. The account is subject to allotment
20   procedures under chapter 43.88 RCW, but an appropriation is not
21   required for expenditures.
22       (2) This section expires July 1, ((2025)) 2035.


23       Sec. 7.   RCW 80.36.700 and 2019 c 365 s 17 are each amended to
24   read as follows:
25       (1) The universal communications services program established in
26   RCW 80.36.630 through 80.36.690 terminates on June 30, ((2024)) 2034.
27       (2) This section expires July 1, ((2025)) 2035.

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