CERTIFICATION OF ENROLLMENT
SECOND SUBSTITUTE SENATE BILL 5383
Chapter 293, Laws of 2021
67th Legislature
2021 Regular Session
PUBLIC UTILITY DISTRICTS—RETAIL TELECOMMUNICATIONS SERVICES—UNSERVED
AREAS
EFFECTIVE DATE: July 25, 2021
Passed by the Senate April 23, 2021 CERTIFICATE
Yeas 40 Nays 9
I, Brad Hendrickson, Secretary of
the Senate of the State of
DENNY HECK Washington, do hereby certify that
President of the Senate the attached is SECOND SUBSTITUTE
SENATE BILL 5383 as passed by the
Senate and the House of
Representatives on the dates hereon
Passed by the House April 11, 2021 set forth.
Yeas 62 Nays 36
BRAD HENDRICKSON
LAURIE JINKINS
Secretary
Speaker of the House of
Representatives
Approved May 13, 2021 11:33 AM FILED
May 13, 2021
Secretary of State
JAY INSLEE State of Washington
Governor of the State of Washington
 SECOND SUBSTITUTE SENATE BILL 5383
AS AMENDED BY THE HOUSE
Passed Legislature - 2021 Regular Session
State of Washington 67th Legislature 2021 Regular Session
By Senate Ways & Means (originally sponsored by Senators Wellman,
Short, Hunt, King, Lovelett, Nguyen, Randall, Saldaña, Warnick,
Wilson, C., and Wilson, L.)
READ FIRST TIME 02/22/21.
1 AN ACT Relating to authorizing public utility districts and port
2 districts to provide retail telecommunications services in unserved
3 areas under certain conditions; amending RCW 54.16.330, 53.08.370,
4 and 43.330.538; and creating a new section.
5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
6 NEW SECTION. Sec. 1. The legislature finds that the COVID-19
7 pandemic has made it clear that equitable access to education can
8 only happen with equitable access to reliable broadband. Increasing
9 broadband access to unserved areas of the state is of vital
10 importance to increasing quality of life, broadening educational
11 opportunities, and promoting economic inclusion in the parts of our
12 state that, without broadband access, cannot fully participate in
13 modern society. The legislature further finds that one of the most
14 effective tools to ensure all Washingtonians have an opportunity to
15 equitably access education, the job market, and health care resources
16 is to allow our public utility districts and port districts to
17 provide retail telecommunications services.
18 Sec. 2. RCW 54.16.330 and 2019 c 365 s 9 are each amended to
19 read as follows:
p. 1 2SSB 5383.SL
 1 (1)(a) A public utility district in existence on June 8, 2000,
2 may construct, purchase, acquire, develop, finance, lease, license,
3 handle, provide, add to, contract for, interconnect, alter, improve,
4 repair, operate, and maintain any telecommunications facilities
5 within or without the district's limits for the following purposes:
6 (i) For the district's internal telecommunications needs;
7 (ii) For the provision of wholesale telecommunications services
8 ((within)) as follows:
9 (A) Within the district and by contract with another public
10 utility district;
11 (B) Within an area in an adjoining county that is already
12 provided electrical services by the district; or
13 (C) Within an adjoining county that does not have a public
14 utility district providing electrical or telecommunications services
15 headquartered within the county's boundaries, but only if the
16 district providing telecommunications services is not authorized to
17 provide electrical services((.
18 (b) Except as provided in subsection (8) of this section, nothing
19 in this section shall be construed to authorize public utility
20 districts to provide telecommunications services to end users)); or
21 (iii) For the provision of retail telecommunications services as
22 authorized in this section.
23 (2) A public utility district providing wholesale or retail
24 telecommunications services shall ensure that rates, terms, and
25 conditions for such services are not unduly or unreasonably
26 discriminatory or preferential. Rates, terms, and conditions are
27 discriminatory or preferential when a public utility district
28 offering rates, terms, and conditions to an entity for wholesale or
29 retail telecommunications services does not offer substantially
30 similar rates, terms, and conditions to all other entities seeking
31 substantially similar services.
32 (3) A public utility district providing wholesale or retail
33 telecommunications services shall not be required to, but may,
34 establish a separate utility system or function for such purpose. In
35 either case, a public utility district providing wholesale or retail
36 telecommunications services shall separately account for any revenues
37 and expenditures for those services according to standards
38 established by the state auditor pursuant to its authority in chapter
39 43.09 RCW and consistent with the provisions of this title. Any
40 revenues received from the provision of wholesale or retail
p. 2 2SSB 5383.SL
 1 telecommunications services must be dedicated to costs incurred to
2 build and maintain any telecommunications facilities constructed,
3 installed, or acquired to provide such services, including payments
4 on debt issued to finance such services, until such time as any bonds
5 or other financing instruments executed after June 8, 2000, and used
6 to finance such telecommunications facilities are discharged or
7 retired.
8 (4) When a public utility district provides wholesale or retail
9 telecommunications services, all telecommunications services rendered
10 to the district for the district's internal telecommunications needs
11 shall be allocated or charged at its true and full value. A public
12 utility district may not charge its nontelecommunications operations
13 rates that are preferential or discriminatory compared to those it
14 charges entities purchasing wholesale or retail telecommunications
15 services.
16 (5) If a person or entity receiving retail telecommunications
17 services from a public utility district under this section has a
18 complaint regarding the reasonableness of the rates, terms,
19 conditions, or services provided, the person or entity may file a
20 complaint with the district commission.
21 (6) A public utility district shall not exercise powers of
22 eminent domain to acquire telecommunications facilities or
23 contractual rights held by any other person or entity to
24 telecommunications facilities.
25 (7) Except as otherwise specifically provided, a public utility
26 district may exercise any of the powers granted to it under this
27 title and other applicable laws in carrying out the powers authorized
28 under this section. Nothing in chapter 81, Laws of 2000 limits any
29 existing authority of a public utility district under this title.
30 (8)(a) If an internet service provider operating on
31 telecommunications facilities of a public utility district that
32 provides wholesale telecommunications services but does not provide
33 retail telecommunications services, ceases to provide access to the
34 internet to its end-use customers, and no other retail service
35 providers are willing to provide service, the public utility district
36 may provide retail telecommunications services to the end-use
37 customers of the defunct internet service provider in order for end-
38 use customers to maintain access to the internet until a replacement
39 internet service provider is, or providers are, in operation.
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 1 (b) Within thirty days of an internet service provider ceasing to
2 provide access to the internet, the public utility district must
3 initiate a process to find a replacement internet service provider or
4 providers to resume providing access to the internet using
5 telecommunications facilities of a public utility district.
6 (c) For a maximum period of five months, following initiation of
7 the process begun in (b) of this section, or, if earlier than five
8 months, until a replacement internet service provider is, or
9 providers are, in operation, the district commission may establish a
10 rate for providing access to the internet and charge customers to
11 cover expenses necessary to provide access to the internet.
12 (9) The tax treatment of the retail telecommunications services
13 provided by a public utility district to the end-use customers during
14 the period specified in subsection (8) of this section must be the
15 same as if those retail telecommunications services were provided by
16 the defunct internet service provider.
17 (10)(a) A public utility district may provide retail
18 telecommunications services to end users in unserved areas.
19 (b) A public utility district must notify and consult with the
20 governor's statewide broadband office within 30 days of its decision
21 to provide retail telecommunications services to unserved areas. The
22 governor's statewide broadband office must post notices received from
23 a public utility district pursuant to this subsection on its public
24 website.
25 (c) Any public utility district that intends to provide retail
26 telecommunications services to unserved areas must submit a
27 telecommunications infrastructure and service plan to the governor's
28 statewide broadband office that will be published on the office's
29 website. Submission of plans will enable the governor's statewide
30 broadband office: (i) To better understand infrastructure deployment;
31 (ii) to potentially allocate funding for unserved areas; (iii) to
32 advance the state policy objectives; (iv) to determine whether the
33 plan aligns with state policy objectives and broadband priorities;
34 (v) to measure progress toward serving those in unserved areas; (vi)
35 to report on the feasibility and sustainability of the project; and
36 (vii) to confirm that the project is within an unserved area. The
37 telecommunications infrastructure and service plans shall include,
38 but not be limited to, the following:
39 (A) Map and description of how the deployment of proposed
40 broadband infrastructure will achieve at a minimum 100 megabits per
p. 4 2SSB 5383.SL
 1 second download speed and at a minimum 20 megabits per second upload
2 speed and then increases to be consistent with the stated long-term
3 state broadband speed goals for unserved areas;
4 (B) Project timeline prioritization of unserved areas; and
5 (C) Description of potential state and federal funding available
6 to provide service to the unserved area.
7 (d) A public utility district that exercises its authority under
8 (a) of this subsection to provide retail telecommunications services
9 may use state funds, federal funds appropriated through the state, or
10 federal funds dedicated for projects in unserved areas to fund
11 projects identified in the submitted telecommunications
12 infrastructure and service plan required in (c) of this subsection.
13 (e) A public utility district providing retail telecommunications
14 services under this subsection must operate an open access network.
15 (f) This section does not apply to retail internet services
16 provided by a public utility district under RCW 54.16.420.
17 (g) Provisions in this subsection do not apply to the provision
18 of wholesale telecommunications services authorized in this section.
19 (h) For the purposes of this subsection:
20 (i) "Open access network" means a network that, during the useful
21 life of the infrastructure, ensures service providers may use network
22 services and facilities at rates, terms, and conditions that are not
23 discriminatory or preferential between providers, and employs
24 accountable interconnection arrangements published and available
25 publicly.
26 (ii) "Unserved areas" means areas of Washington in which
27 households and businesses lack access to broadband service of speeds
28 at a minimum of 100 megabits per second download and at a minimum 20
29 megabits per second upload.
30 Sec. 3. RCW 53.08.370 and 2019 c 365 s 10 are each amended to
31 read as follows:
32 (1) A port district in existence on June 8, 2000, may construct,
33 purchase, acquire, develop, finance, lease, license, handle, provide,
34 add to, contract for, interconnect, alter, improve, repair, operate,
35 and maintain any telecommunications facilities within or without the
36 district's limits for the following purposes:
37 (a) For the district's own use; ((and))
38 (b) For the provision of wholesale telecommunications services
39 within or without the district's limits((. Nothing in this subsection
p. 5 2SSB 5383.SL
 1 shall be construed to authorize port districts to provide
2 telecommunications services to end users)); or
3 (c) For the provision of retail telecommunications services as
4 authorized in this section.
5 (2) Except as provided in subsection (9) of this section, a port
6 district providing wholesale telecommunications services under this
7 section shall ensure that rates, terms, and conditions for such
8 services are not unduly or unreasonably discriminatory or
9 preferential. Rates, terms, and conditions are discriminatory or
10 preferential when a port district offering such rates, terms, and
11 conditions to an entity for wholesale telecommunications services
12 does not offer substantially similar rates, terms, and conditions to
13 all other entities seeking substantially similar services.
14 (3) When a port district establishes a separate utility function
15 for the provision of wholesale telecommunications services, it shall
16 account for any and all revenues and expenditures related to its
17 wholesale telecommunications facilities and services separately from
18 revenues and expenditures related to its internal telecommunications
19 operations. Any revenues received from the provision of wholesale
20 telecommunications services must be dedicated to the utility function
21 that includes the provision of wholesale telecommunications services
22 for costs incurred to build and maintain the telecommunications
23 facilities until such time as any bonds or other financing
24 instruments executed after June 8, 2000, and used to finance the
25 telecommunications facilities are discharged or retired.
26 (4) When a port district establishes a separate utility function
27 for the provision of wholesale telecommunications services, all
28 telecommunications services rendered by the separate function to the
29 district for the district's internal telecommunications needs shall
30 be charged at its true and full value. A port district may not charge
31 its nontelecommunications operations rates that are preferential or
32 discriminatory compared to those it charges entities purchasing
33 wholesale telecommunications services.
34 (5) A port district shall not exercise powers of eminent domain
35 to acquire telecommunications facilities or contractual rights held
36 by any other person or entity to telecommunications facilities.
37 (6) Except as otherwise specifically provided, a port district
38 may exercise any of the powers granted to it under this title and
39 other applicable laws in carrying out the powers authorized under
p. 6 2SSB 5383.SL
 1 this section. Nothing in chapter 81, Laws of 2000 limits any existing
2 authority of a port district under this title.
3 (7) A port district that has not exercised the authorities
4 provided in this section prior to June 7, 2018, must develop a
5 business case plan before exercising the authorities provided in this
6 section. The port district must procure an independent qualified
7 consultant to review the business case plan, including the use of
8 public funds in the provision of wholesale telecommunications
9 services. Any recommendations or adjustments to the business case
10 plan made during third-party review must be received and either
11 rejected or accepted by the port commission in an open meeting.
12 (8) A port district with telecommunications facilities for use in
13 the provision of wholesale telecommunications in accordance with
14 subsection (1)(b) of this section may be subject to local leasehold
15 excise taxes under RCW 82.29A.040.
16 (9)(a) A port district under this section may select a
17 telecommunications company to operate all or a portion of the port
18 district's telecommunications facilities.
19 (b) For the purpos