Original Notice.

Preproposal statement of inquiry was filed as WSR 00-02-010.

Title of Rule: Chapter 480-121 WAC, Registration, competitive classification, and initial price lists of telecommunications companies, WAC 480-120-052 Prepaid calling services and 480-120-058 Protection of customer prepayments.

Purpose: The proposed rules would streamline the filing process for applications for registration, petitions for competitive classification, and initial price lists, and allow for electronic filings. The proposal would also substantially reduce the requirements to offer prepaid calling services. Finally, the proposal would implement the requirements of the Governor's Executive Order 97-02 by reviewing the rules for need, effectiveness and efficiency, clarity, intent and statutory authority, and cost and fairness.

Statutory Authority for Adoption: RCW 80.01.040 and 80.04.160.

Summary: See Explanation of Rule below.

Name of Agency Personnel Responsible for Drafting: Teri Wallace, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, (360) 664-4891; Implementation and Enforcement: Carole J. Washburn, Secretary, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, (360) 664-1174.

Name of Proponent: Washington Utilities and Transportation Commission, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The proposed rules would implement requirements under the Governor's Executive Order 97-02, and would eliminate obsolete rules, reduce preparation time by the applicant and the commission, express the rules in a clear and concise manner and would allow for new technology that is more efficient and effective. Among other improvements, the proposal would streamline the filing process for applications for registration, petitions for competitive classification, and initial price lists, and allow for electronic filings. In addition, the proposal would substantially reduce the requirements to offer prepaid calling services.

Proposal Changes the Following Existing Rules: The proposal would change the title of chapter 480-121 WAC, Registration, competitive classification and price lists of telecommunications companies to Registration, competitive classification, and initial price lists of telecommunications companies.

The proposal would delete WAC 480-121-023 When a supplemental application is required. An applicant would not need to file a supplemental application under the proposed rules.

In addition, the proposal renumbers certain existing rules as follows:

Repealed		Same Language Adopted as
WAC 480-121-010	Filing of registration application, competitive classification petition, and price list.	WAC 480-121-020	Requirements for applications for registration, petitions for competitive classification, and initial price lists.
WAC 480-121-030	Additional information.	WAC 480-121-016	Additional requirements.
WAC 480-121-050	Cancellations.	WAC 480-121-026	Rejecting a filing.
WAC 480-121-070	Petition for competitive classification.	WAC 480-121-061	General requirements to classify a telecommunications company as competitive or to classify a service provided by a telecommunications company as competitive.

The proposal would delete WAC 480-121-023 When a supplemental application is required. Accordingly, an applicant would not need to file a supplemental application under the proposed rules.

The proposal would add WAC 480-121-011 Application of rules, 480-121-016 Additional requirements, 480-121-017 Severability, and 480-121-018 Delivery of a filing.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rules implement state law, limit the companies that must file, and reduce the amount of information to be filed. Further, the proposed rules eliminate obsolete rules, modify rules to reduce preparation time, and express the rules in clear and concise language. Because there will not be any increase in cost resulting from these proposed rules, a small business economic impact statement is not required.

RCW 34.05.328 does not apply to this rule adoption. The commission is not an agency to which RCW 34.05.328 applies. The proposed rules are not significant legislative rules as referenced in RCW 34.05.328(5).

Hearing Location: Commission Hearing Room, Second Floor, Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, on December 12, 2001, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Mary DeYoung by Monday, December 10, 2001, TDD (360) 586-8203, or (360) 664-1133.

Submit Written Comments to: Secretary, Docket No. UT-991922, Washington Utilities and Transportation Commission, 1300 South Evergreen Park Drive S.W., P.O. Box 47250, Olympia, WA 98504-7250, fax (360) 586-1150, by November 28, 2001.

Date of Intended Adoption: December 12, 2001.

November 7, 2001

Carole J. Washburn

Secretary

OTS-5315.2

NEW SECTION
WAC 480-121-011   Application of rules.   (1) The rules in this chapter apply to any telecommunications company that is subject to the jurisdiction of the commission as to rates and services under the provisions of RCW 80.04.010 and chapter 80.36 RCW.

(2) The price list provisions filed by the telecommunications company must conform with these rules. If the commission accepts a price list that conflicts with these rules, the acceptance does not constitute a waiver of these rules unless the commission specifically approves the variation consistent with WAC 480-121-015. Price lists that conflict with these rules without approval are superseded by these rules.

(3) Any affected person may ask the commission to review the interpretation of these rules by a telecommunications company or customer by posing an informal complaint under WAC 480-09-150 (Informal complaints) or by filing a formal complaint under WAC 480-09-420 (Pleadings and briefs -- -Applications for authority -- Protests).

(4) No deviation from these rules is permitted without written authorization by the commission. Violations will be subject to penalties as provided by law.

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(2) To request a rule exemption, a person must file with the commission a written request identifying the rule for which an exemption is sought ((and)), giving a full explanation of the reason for requesting the exemption ((is requested)).

(3) The commission will assign the request a docket number, if ((needed,)) it does not arise in an existing docket, and will schedule the request for consideration at one of its regularly scheduled open meetings or, if appropriate under chapter 34.05 RCW, in an adjudication. The commission will notify the person requesting the exemption, and other interested persons, of the date of the hearing or open meeting when the commission will consider the request.

(4) In determining whether to grant the request, the commission may consider whether application of the rule would impose undue hardship on the petitioner, of a degree or a kind different from hardship imposed on other similarly situated persons, and whether the effect of applying the rule would be contrary to the purposes of the rule.

(5) The commission will enter an order granting or denying the request or setting it for hearing, pursuant to chapter 480-09 WAC.

[Statutory Authority: RCW 80.01.040. 99-13-097 (Order R-464, Docket No. UT-980083), 480-121-015, filed 6/15/99, effective 7/16/99.]

(2) The commission retains the authority to impose additional or different requirements on any telecommunications company in appropriate circumstances, consistent with the requirements of law.

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(2) In person or by mail.

(a) In order to be deemed received on a given day, the commission records center must receive an original and two copies of the filing by 5:00 p.m., Pacific time.

(b) A filing delivered by mail must be free from all charges for postage. The commission records center will return any postage-due filing to the sender.

(3) Fax filing.

(a) The commission must receive an original and two copies of the filing the following business day.

(b) The commission will use the date and time the fax filing is received and printed at the records center as the official file date.

(c) The commission records center must receive a faxed filing in its entirety by 5:00 p.m., Pacific time, Monday through Friday, except on state holidays, to be considered received on that business day.

(4) Electronic filing.

(a) An electronic filing must conform to commission procedures for electronic filing.

(b) After accepting an electronic filing, the commission will return an electronic mail message noting the receipt date.

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(c) Be accompanied by the applicant's current balance sheet, latest annual report, if any, and a description of the telecommunications service it intends to offer)) and petitions for competitive classification must be in the form prescribed by the commission.

(2) ((Petitions for competitive classification must meet the requirements of WAC 480-120-023)) Applications for registration:

(a) Must be filed with a petition for competitive classification and an initial price list;

(b) Must comply with the rules set forth in chapters 480-80 and 480-120 WAC;

(c) Must be filed at the office of the commission in Olympia, Washington;

(d) Must include a declaration signed and dated by the applicant or its attorney certifying the accuracy of the filing; and

(e) Will be assigned a docket number. All documents subsequently filed in the matter must bear that docket number.

(3) ((Price lists must meet the requirements of WAC 480-120-027.)) The commission may require, with or without hearing, that an applicant for registration clearly show:

(a) Adequate financial resources to provide the proposed service;

(b) Adequate technical competence to provide the proposed service; and

(c) Compliance with all applicable federal, state, and local telecommunications technical and business regulations.

(4) ((As a condition to registration, with or without hearing,)) The commission may ((require)) request that an applicant ((clearly show that:

(a) The applicant possesses adequate financial resources to provide the proposed service;

(b) The applicant possesses adequate technical competence to provide the proposed service;

(c) The applicant is in compliance with all applicable federal, state and local telecommunications technical and business regulations.

(5) The commission may request an applicant to provide information regarding the applicant's regulatory performance in other states in which it operates.

(6) Applicants intending to collect customer prepayments must meet the requirements of WAC 480-120-058.

(7) Applicants collecting customer deposits pursuant to WAC 480-120-056 may be required to procure a bond or establish a federally insured interest-bearing trust account)) provide information regarding the applicant's regulatory performance in other states where it operates.

[Statutory Authority: RCW 80.01.040. 99-13-097 (Order R-464, Docket No. UT-980083), 480-121-020, filed 6/15/99, effective 7/16/99. Statutory Authority: RCW 80.01.040. 85-20-002 (Order R-237, Cause No. U-85-43), 480-121-020, filed 9/19/85.]

[Statutory Authority: RCW 80.01.040. 99-13-097 (Order R-464, Docket No. UT-980083), 480-121-026, filed 6/15/99, effective 7/16/99.]

(2) The commission ((will)) may deny an application for registration ((submitted by an alternate operator services provider)) if, after hearing, the commission finds that the ((operator services offered by the company or the charges for those services are)) application is not consistent with the public interest or that the applicant:

(a) Failed to provide the information required by RCW 80.36.350;

(b) Failed to provide the performance bond described in RCW 80.36.350 and WAC 480-120-058, if required;

(c) Does not possess adequate financial resources to provide the proposed service; or

(d) Does not possess adequate technical competency to provide the proposed service.

(3) The commission may deny an application for registration submitted by an alternate operator services company if, after hearing, the commission finds that the services or charges offered by the company are not consistent with the public convenience and advantage.

[Statutory Authority: RCW 80.01.040. 99-13-097 (Order R-464, Docket No. UT-980083), 480-121-040, filed 6/15/99, effective 7/16/99. Statutory Authority: RCW 80.01.040 and chapter 80.36 RCW. 90-24-090 (Order R-332, Docket No. UT-900733), 480-121-040, filed 12/5/90, effective 1/5/91. Statutory Authority: RCW 80.01.040. 85-20-002 (Order R-237, Cause No. U-85-43), 480-121-040, filed 9/19/85.]

(((1))) (a) File an annual report;

(((2))) (b) Pay regulatory fees;

(((3) Comply with the requirements of WAC 480-120-058;

(4))) (c) Provide adequate service;

(((5))) (d) Maintain ((correct contact information, including)) the telecommunications company's current address and telephone number; or

(((6))) (e) Comply with all applicable federal, state, and local telecommunications ((and)) business and technical regulations((; or)).

(((7))) (2) Comply with applicable federal, state, and local technical regulations imposed on the carrier.

[Statutory Authority: RCW 80.01.040. 99-13-097 (Order R-464, Docket No. UT-980083), 480-121-060, filed 6/15/99, effective 7/16/99.]

(2))) Initiation of classification proceedings. A telecommunications company ((shall initiate a)) requesting competitive classification ((proceeding by filing)) must file a petition with the commission. The petition must state the effective date of the requested classification, which must be at least thirty days after the filing date. The commission may initiate a competitive classification proceeding on its own motion by order instituting investigation.

(((3) Notice to affected companies and public counsel. The commission shall serve a copy of the petition or its order upon all telecommunications companies which may be affected by the proceeding, and upon the public counsel section of the office of the attorney general. Service by the commission shall be made as provided in WAC 480-08-060(4). Alternatively, the commission may direct petitioner to serve a copy of the petition upon such parties as the commission directs. Service by petitioner shall be made in accordance with WAC 480-08-060(3).

(4) Notice to customers of classification proceeding. The commission may require a telecommunications company to give notice of the pendency of the classification proceeding. The commission shall determine the manner and distribution of notice.

(5) Appearances and)) (2) Intervention. Any person desiring to participate in a competitive classification proceeding may petition to intervene as provided in WAC ((480-08-070)) 480-09-430.

(((6) Commission may require appearance.)) (3) Additional parties. In any competitive classification proceeding the commission may require all regulated telecommunications companies potentially affected by the proceeding to appear as parties to determine ((their)) the proper classification of the affected companies.

(((7))) (4) Burden of proof. In any competitive classification proceeding, the telecommunications company ((shall have)) has the burden of demonstrating that the company or ((services at issue are)) specific service(s) is subject to effective competition. ((Effective competition means that customers of the service have reasonably available alternatives and that the service is not provided to a significant captive customer base. In determining whether a service is competitive, factors the commission shall consider include, but are not limited to:

(a) The number and size of alternative providers of services;

(b) The extent to which services are available from alternative providers in the relevant market;

(c) The ability of alternative providers to make functionally equivalent or substitute services readily available at competitive rates, terms, and conditions; and

(d) Other indicators of market power, which may include market share, growth in market share, ease of entry, and the affiliation of providers of services.

A telecommunications company will not be classified as competitive unless it demonstrates that the telecommunications services it offers are subject to)) (5) Effective competition. Effective competition means that customers of the service(s) have reasonably available alternatives and that the company does not have a significant captive customer base for the service(s). The commission will consider the factors outlined in RCW 80.36.320 (1)(a) through (d) when determining whether a company is competitive.

(6) The competitive classification becomes effective on the stated effective date unless the commission suspends the proposed classification. If the commission suspends a proposed classification, it will enter a final order within six months from the date the petition was filed.

[Statutory Authority: RCW 80.04.160 and 80.01.040. 01-09-002 (Docket No. U-991301, General Order No. R-481), 480-121-061, filed 4/4/01, effective 5/5/01.]

(1) The name and address of the ((petitioner)) petitioning company;

(2) The name and telephone number of regulatory contact;

(3) A description of the services it offers;

(((3))) (4) The names and addresses of any entities ((which)) that would be classified as "affiliated interests" of the petitioner ((pursuant to)) as defined in RCW 80.16.010; and

(((4) A statement of the services the petitioner contends are subject to effective competition, and with respect to each such service the following information shall be provided:)) (5) A description of the service the petitioner proposes to classify as competitive. With respect to each service, the petitioner must provide the following information:

(a) A description((s)) of all functionally equivalent or substitute services in the ((petitioner's definition of the)) relevant market ((for the service));

(b) The names and addresses of all providers of ((such)) the services known or reasonably knowable to the petitioner;

(c) The prices, terms, and conditions under which ((such)) the services are offered by competitors to the extent known or reasonably knowable to the petitioner;

(d) A geographical ((delineation)) description of the relevant market;

(e) An estimate of the petitioner's market share ((and any past or projected change in market share));

(f) A description of ease of entry into the market; and

(g) A statement of whether the petitioner has a significant captive customer base and the basis for any contention that it does not((;

(h) A verifiable cost of service study supporting the contention that the price or rate charged for the service covers its cost. A petition which contends that all of a company's services are competitive and does not seek classification for some services if others are denied classification is exempted from this requirement;

(i) The manner by which notice of price list changes will be provided to customers and the commission)).

[Statutory Authority: RCW 80.04.160 and 80.01.040. 01-09-002 (Docket No. U-991301, General Order No. R-481), 480-121-062, filed 4/4/01, effective 5/5/01.]

(2) ((Any telecommunications company seeking competitive classification shall include as part of its petition for classification any requests for waivers of regulatory requirements. Requests for waiver not included in a classification petition shall be granted or denied in writing. The commission reserves the right to set any such request for hearing at its discretion. Any request for waiver of regulatory requirements must include a statement as to how competition will serve the same purposes as public interest regulation.

(3))) By order, the commission may revoke waivers of regulatory requirements ((in the same manner in which they were granted)) if ((such)) it determines that revocation ((would)) is necessary to protect the public interest.

(3) Unless otherwise determined by commission order, the following regulatory requirements are waived for competitively classified companies:

(a) RCW 80.04.300 (Budgets to be filed by companies -- Supplementary budgets);

(b) RCW 80.04.310 (Commission's control over expenditures);

(c) RCW 80.04.320 (Budget rules);

(d) RCW 80.04.330 (Effect of unauthorized expenditure -- Emergencies);

(e) RCW 80.04.360 (Earnings in excess of reasonable rate -- Consideration in fixing rates);

(f) RCW 80.04.460 (Investigation of accidents);

(g) RCW 80.04.520 (Approval of lease of utility facilities);

(h) RCW 80.36.100 (Tariff schedules to be filed and open to public);

(i) RCW 80.36.110 (Tariff changes -- Statutory notice -- Exception);

(j) Chapter 80.08 RCW (Securities) (except RCW 80.08.140, State not obligated);

(k) Chapter 80.12 RCW (Transfers of property);

(l) Chapter 80.16 RCW (Affiliated interests);

(m) Chapter 480-80 WAC (Utilities general -- Tariffs, price lists, and contracts) (except WAC 480-80-201 Use of price lists through WAC 480-80-242 Using contracts for services classified as competitive);

(n) Chapter 480-140 WAC (Commission general -- Budgets);

(o) Chapter 480-143 WAC (Commission general -- Transfers of property);

(p) Chapter 480-146 WAC (Commission general -- Securities, liens, affiliated interests, refunding of notes, lease of utility facilities);

(q) WAC 480-120-031 (Accounting);

(r) WAC 480-120-032 (Expenditures for political or legislative activities);

(s) WAC 480-120-043 (Notice to the public of tariff changes);

(t) WAC 480-120-046 (Service offered);

(u) WAC 480-120-131 (Reports of accidents);

(v) WAC 480-120-541 (Access charges);

(w) WAC 480-120-542 (Collective consideration of Washington intrastate rate, tariff, or service proposals); and

(x) WAC 480-120-544 (Mandatory cost changes for telecommunications companies).

[Statutory Authority: RCW 80.04.160 and 80.01.040. 01-09-002 (Docket No. U-991301, General Order No. R-481), 480-121-063, filed 4/4/01, effective 5/5/01.]

(2) Reclassification.)) After notice and hearing, the commission may reclassify any competitive telecommunications company or service if ((such)) it determines that reclassification would protect the public interest. ((In any such hearing the burden shall rest on)) The telecommunications company ((to)) must demonstrate that the existing competitive classification is proper and consistent with the public interest.

(((3) Refunds. If the commission finds after notice and hearing that any class of subscribers to a noncompetitive telecommunications service has paid excessive rates because of below cost pricing of competitive telecommunications services, the commission may order refunds or credits.))

[Statutory Authority: RCW 80.04.160 and 80.01.040. 01-09-002 (Docket No. U-991301, General Order No. R-481), 480-121-064, filed 4/4/01, effective 5/5/01.]

     The following sections of the Washington Administrative Code are repealed:

WAC 480-121-010	Filing of registration application, competitive classification petition, and price list.
WAC 480-121-023	When a supplemental application is required.
WAC 480-121-030	Additional information.
WAC 480-121-050	Cancellations.
WAC 480-121-070	Petition for competitive classification.

OTS-5314.1

AMENDATORY SECTION(Amending Order R-462, filed 4/26/99, effective 8/18/99)

WAC 480-120-052   Prepaid calling services.   (((1) Prepaid calling services - Defined.

(a) Prepaid calling services (PPCS) means any transaction in which a consumer pays for service prior to use and the prepaid account is depleted as a consumer uses the service. Prepaid calling services may require the use of an access number or authorization code. The transaction often includes an object the size of a credit card which displays relevant information about the service. These objects are defined as prepaid calling cards.

(b) This section excludes credit cards and cash equivalent cards. Services provided at pay telephones using these cards are regulated under the provisions of WAC 480-120-138.

(i) Credit cards: Cards that can be used to make consumer purchases utilizing preapproved bank credit (e.g., Visa, MasterCard). Consumers utilizing such cards to complete pay telephone calls are charged the applicable tariffed coin operator rates on file with the commission for pay phone provider service at that location.

(ii) Cash equivalent cards: Are cards that may either be purchased for exclusive use at card reader pay telephones or may be used both for consumer purchases and use at card reader pay telephones. Cash equivalent cards are not purchased for the exclusive use through an individual telecommunications provider. Consumers utilizing such cards to complete pay telephone calls are charged the applicable tariffed coin operator rates on file with the commission for pay phone provider service at that location.

(2) Business office requirements for providers of prepaid calling services. A company offering prepaid calling services must provide consumers a without charges telephone number staffed by live personnel during regular business hours. The personnel must be sufficient to respond to all service related inquires and must be capable of answering general account related questions. The without charge number business office number may be the same as the technical assistance number required in subsection (3) of this section.

(3) Technical assistance requirements when providing prepaid calling services. A company offering prepaid calling services must provide consumers a without charge number staffed by live personnel twenty-four hours a day, seven days a week. The personnel must be sufficient to respond to all inquires and must be capable of assisting consumers with technical problems or questions related to their service. The without charge number for technical assistance may be the same as the business office number required in subsection (2) of this section as long as the number is staffed twenty-four hours a day.

(4) Billing requirements for prepaid calling services.

(a) Billing increments must be defined in the company's price list, or tariff and presale document. If a company uses an increment based on a time measurement, the increments must not exceed one minute. If the company bills usage in "unit" measurements, units must clearly be defined using both equivalent dollar amounts and time measurement. Unit billing increments can not exceed the equivalent one minute rate.

(b) Service may be rated only for the actual time a circuit is open that allows for conversation. Conversation time of less than a full billing increment shall not be rounded up beyond that full increment.

(c) Companies may not reduce the value of a PPCS account by more than the charges specified on the prepaid calling card; prepaid calling card packaging; visible display at the point of sale; rates specified in the presale document; or the rate authorized by the commission at the time of purchase. The PPCS may, however, be recharged by the consumer at a rate different from that specified in the initial presale agreement or the last recharge information so long as the rate and surcharges conform with the company's tariff or price list at the time of purchase. The consumer must be informed of the new rates at the time of recharge.

(d) Companies providing prepaid calling services must be capable of providing consumers, upon request, call detail reports at no charge.

(i) Companies may establish verification procedures to confirm the person requesting the call detail was the actual user of the service.

(ii) Call detail reports may be provided orally to a consumer. The company will only be required to provide a written call detail report at no charge if the user requests the information in writing.

(e) Companies providing prepaid calling services must maintain call data for a minimum of thirty months. The data must include the following:

(i) Dialing and signaling information that identifies the inbound access number called or the access identifier;

(ii) The number of the originating phone when the information is passed to the prepaid calling provider;

(iii) The date and time the call was originated;

(iv) The duration or termination time of the call;

(v) The called number; and

(vi) The personal identification number (PIN) and/or account number.

(5) Written disclosure requirements for prepaid calling services - Prepaid calling cards.

(a) Information required on prepaid calling cards. At a minimum the cards must contain the following information:

(i) The company's name as registered with the commission. A "doing business as" name may only be used if officially filed with the commission. The language must clearly indicate that the company is providing the prepaid telecommunication services.

(ii) The toll-free or without charge number to reach the company's business office;

(iii) The toll-free or without charge number to reach the company's technical assistance office, if different than the business office number;

(iv) The company's toll-free or without charge number used to access the company's service, if applicable;

(v) Authorization code, if required to access the service or if applicable the toll-free number user is required to call to establish access capability;

(vi) Expiration date, if applicable. If a card expires after a set period of time from activation, (e.g., ninety days after first use) the company must place a general statement on the card outlining this expiration policy. If an expiration date or expiration policy is not disclosed on the card it will be considered live indefinitely; and

(vii) Cards must be voided or otherwise physically marked if they were produced as a "nonlive" card so that it is clear to the user that the card is only a sample and is not active. If the card is not disclosed as a nonoperative card, the card is considered live and the issuing company must honor it.

(b) Prepaid calling card - Presale or point of sale documents. The following information must be legibly printed on the card, packaging, or display visible in a prominent area at the point of sale of the prepaid calling card in such a manner that the consumer may make an informed decision prior to purchase. If the information below is to be provided on a visible display at the point of sale the company must ensure by contract with its retailers or distributors that the information is provided to the consumer.

(i) Maximum charge per billing increment for prepaid calling card service. If a company charges varying rates for intrastate and interstate calls all applicable rates must be provided. The rates displayed must be no more than those approved in the tariff or price list of the company at the time of retail purchase;

(ii) Approved charges for all services, and surcharges, fees, and taxes, if applicable and the method of application;

(iii) Expiration policy, if applicable. If an expiration date is not disclosed the service will be considered live until the prepaid balance is depleted;

(iv) Recharge policy, if applicable. If an expiration date is not disclosed at the time service is recharged the service will be considered live indefinitely; and

(6) Written disclosure requirement for prepaid calling service - Other than prepaid calling cards. Presale agreement. The following information shall be provided in a presale document to an applicant prior to consumer prepayment and initiation of service:

(i) The company's name as registered with the commission. A "doing business as" name may only be used if officially filed with the commission. The language must clearly indicate that the company is providing the prepaid telecommunication services.

(ii) The toll-free or without charge number to reach the company's business office;

(iii) The toll-free or without charge number to reach the company's technical assistance office, if different than the business office number;

(iv) The company's toll-free or without charge number used to access the company's network, if applicable;

(v) Authorization code, if required to access the service;

(vi) Maximum charge per billing increment for prepaid calling service. If a company charges varying rates for intrastate and interstate calls all applicable rates must be provided. The rates displayed shall be no more than those approved in the tariff or price list of the company at the time of retail purchase;

(vii) Approved charges for all services, and surcharges, fees, and taxes if applicable, and the method of application;

(viii) Expiration date, if applicable;

(ix) Recharge policy, if applicable.

(7) Verbal disclosure requirements for prepaid calling services.

(a) Companies offering prepaid calling service must:

(i) Provide an announcement at the beginning of each call indicating the time remaining on the prepaid account or prepaid calling card;

(ii) Provide an announcement when the prepaid account or prepaid calling card balance is about to be depleted. This announcement must be made at least one minute prior to depletion.

(iii) When requested by a Washington state consumer, the company's business office and technical assistance office must provide the consumer the number for the Washington utilities and transportation commission consumer services line; and

(iv) Company supervisory personnel must provide dissatisfied applicants or subscribers the commission's toll-free number and address in conformance with WAC 480-120-101.

(8) Requirements for refund of unused balances.

(a) When a company has failed to provide service at rates provided in presale documentation or quoted at the time an account is recharged, or that the company has failed to meet technical standards, companies offering prepaid calling services must provide refunds for any unused service or provide equivalent credit in services offered when requested by a customer. Refunds must equal the value remaining on the prepaid calling account or prepaid card. The customer is allowed to choose either the refund or equivalent service option.

(b) Refund requests received from consumers for reasons other than improper rates or failure to meet technical standards may be made at the sole discretion of and in a form prescribed by the company.

(9) Performance standards for prepaid calling services. Each company shall ensure that:

(a) A minimum of ninety-eight percent of all call attempts are completed to the called party's number. Station busies and unanswered calls will be considered completed calls.

(b) A minimum of ninety-eight percent of all call attempts are completed to a company's business office number. Station busies and unanswered calls will not be counted as completed calls.

(c) A minimum of ninety-eight percent of all call attempts are completed to the company's technical assistance number. Station busies and unanswered calls will not be counted as completed calls.

(10) Requirements when a company ceases operations in the state of Washington. When a company ceases operations in the state, the company must:

(a) Provide the commission with thirty days advance notice in writing.

(b) At least twenty-one days before termination, provide written notice to customers at the address on file with the company, if applicable, indicating that service will be ending, and explain how customers may receive a refund on any unused service.

(c) Beginning at least fifteen days before termination, provide oral notice of termination at the beginning of each call originated in Washington, including the date of termination and a number to call for more information.

(d) Provide information to consumers via its customer service number outlining the procedure for obtaining refunds and continue to provide this information for sixty days from the date company ceases operations.

(e) Within twenty-four hours after ceasing operations, provide the commission and the company's bonding agent a list of all account numbers with unused balances. The list must include the following:

(i) The identification number used by the company on each account for billing/debit purposes;

(ii) The unused portion of any prepaid monthly fee on each account;

(iii) The unused time, stated in units or minutes as applicable on each account and the equivalent dollar amount.

(11) Compliance requirements for prepaid calling services.

(a) Printed materials including prepaid calling cards, presale documents, and point of sale documents.

(i) All materials printed ninety days after the effective date of the rule must comply with provisions of this rule;

(ii) All printed materials in circulation must comply with this rule within nine months of the effective date of this rule.

(b) Rules requirements - excluding printed material. Companies providing prepaid calling services within the state of Washington must be in compliance with this rule within ninety days of the effective date of this rule.

(12) Other regulatory requirements. Companies providing prepaid calling services must comply with all other laws and commission rules relating to provision of telecommunications services unless the company has filed for and received waiver from the commission.

(13) Penalties for provision of service by an unregistered telecommunications company. When a penalty is imposed upon finding that an unregistered company has provided prepaid calling services within the state of Washington, the commission may assess penalties of up to one hundred dollars per day per violation under RCW 80.04.405 and/or up to one thousand dollars per day per violation under RCW 80.04.380.)) (1) For the purposes of this section, prepaid calling services (PPCS) means any transaction in which a customer pays for service prior to use and applies only to those services where the number of available minutes decreases as the customer uses the service. Prepaid calling services do not include flat-rated basic local service that is billed in advance of use.

(a) PPCS may require the use of an access number or authorization code.

(b) This section excludes credit cards and cash equivalent cards. Services provided at pay telephones using these cards are regulated under the provisions of WAC 480-120-138.

(2) PPCS providers must provide customers a without-charge telephone number staffed by personnel capable of:

(a) Responding to technical problems or questions related to their service twenty-four hours a day, seven days a week;

(b) Responding to general account-related questions during regular business hours; and

(c) Providing the commission's toll-free number and address to dissatisfied customers as required by WAC 480-120-101.

(3) Billing requirements for PPCS.

(a) A PPCS provider may charge only for the actual time a circuit is open for conversation. The price list or tariff and presale document must define billing increments. The provider must not round up the length of conversation time for less than a full billing increment beyond that full increment.

(i) If a PPCS provider uses an increment based on a time measurement, the increment must not exceed one minute.

(ii) If a PPCS provider bills usage in "unit" measurements, it must clearly define units using both equivalent dollar amounts and time measurement. Unit billing increments cannot exceed the equivalent one minute rate.

(b) At the customer's request, a PPCS provider may add additional time to an existing account in exchange for an additional payment at a rate not to exceed those on file with the commission. The PPCS provider must inform the customer of the new rates at the time of the recharge request.

(4) PPCS providers must maintain the following call-data for a minimum of twenty-four months:

(a) Dialing and signaling information that identifies the inbound access number called or the access identifier;

(b) The number of the originating phone when the information is passed to the PPCS provider;

(c) The date and time the call was originated;

(d) The duration or termination time of the call;

(e) The called number; and

(f) The personal identification number (PIN), or account number.

(5) Disclosure requirements - Prepaid calling services.

(a) A PPCS provider must disclose, prior to the sale, the following information:

(i) The PPCS provider's name as registered with the commission;

(ii) The "doing business as" name as registered with the commission, if applicable;

(iii) The maximum charge per billing increment. A PPCS provider charging varying rates for intrastate and interstate calls must provide all applicable rates. The rates disclosed must be no more than those in its price list or tariff on file with the commission at the time of purchase;

(iv) Charges for all services, including any applicable surcharges, fees, or taxes, and the method of application;

(v) Expiration date, if applicable. If a card expires after a set period of time from activation, the PPCS provider must specify the expiration date on the card. If an expiration date is not disclosed on the card it will be considered unexpired indefinitely; and

(vi) Recharge policy, if applicable. If a PPCS provider does not disclose the expiration date at the time service is recharged, the service will be considered unexpired indefinitely.

(b) A PPCS provider must disclose, at the time of purchase, the following information:

(i) The without-charge telephone number(s) a customer may use to resolve technical problems, service-related questions, and general account-related questions; and

(ii) Authorization code, if required, to access the service or, if applicable, the without-charge telephone number used to establish access capability.

(c) If the PPCS provider is not the entity that packages the services for sale to the public, it must require the company that does so, through a written agreement, to comply with the disclosure requirements of this section.

(6) Time of use disclosure requirements. The PPCS provider must:

(a) Announce at the beginning of each call the time remaining on the prepaid account or prepaid calling card; and

(b) Announce the time remaining at least one minute before the prepaid account balance is depleted.

(7) When a PPCS provider has failed to provide service at rates disclosed prior to the sale or quoted at the time an account is recharged, or the PPCS provider has failed to meet performance standards, it must provide refunds for any unused service or provide equivalent service credit when requested by a customer. Refunds or credits must equal the value remaining on the prepaid calling account. The customer may choose either the refund or equivalent service credit option.

(8) Performance standards for prepaid calling services. Each PPCS provider must ensure that:

(a) Customers can complete a minimum of ninety-eight percent of all call attempts to the called party's number. The PPCS provider will consider any busy signals or unanswered calls as completed calls.

(b) Customers can complete a minimum of ninety-eight percent of all call attempts to the PPCS provider. The PPCS provider will not consider any busy signals or unanswered calls as completed calls.

[Statutory Authority: RCW 80.36.140. 99-10-013 (Order R-462, Docket No. UT-971469), 480-120-052, filed 4/26/99, effective 8/18/99.]

(e) Other evidence demonstrating that consumer interests will be adequately protected.)) As a precondition to registration, the commission may require a telecommunications company to file a performance bond sufficient to cover any prepayments it may collect from its customers, or order that such prepayments be held in escrow or trust, as stated in RCW 80.36.350.

[Statutory Authority: RCW 80.36.140. 99-10-013 (Order R-462, Docket No. UT-971469), 480-120-058, filed 4/26/99, effective 8/18/99.]

Washington State Code Reviser's Office