From: sarlowe@tr.com
To: cwall@tr.com
Date: 2001-02-06 09:46:00+00:00
Subject: TR's State NewsWire 2/6/01 8 A.M. Edition

Telecommunications Reports presents . . . . . TR's State NewsWire
February 6, 2001 8 A.M. Edition


STATES
ARIZONA -- Bill would end antitrust exemption for competitive services
CONN. -- DPUC nixes service reclassification, OKs rest of Verizon `alt
reg' plan
TEXAS -- Counties would gain authority over wireless telecom facilities
under bill
TENNESSEE -- Bill would limit utilities' charges for pole attachments
NORTH DAKOTA -- Legislators fight extension of Internet tax moratorium
OREGON -- House OKs digital signature bill
MICHIGAN -- Local calling areas to become larger for Ameritech, Verizon
customers
KENTUCKY -- PSC plans meeting to discuss `N11' pricing issues
ILLINOIS -- Rep. Franks takes aim at telemarketers
MISSISSIPPI -- Internet child protection bills advance
ARIZONA -- Bill would change excise tax that funds emergency telecom
services


COMPETITIVE LOCAL ENTRY
ARIZONA
Bill would end antitrust exemption for competitive services

The Arizona Legislature is considering a bill that would remove any
competitive telecom service from an exemption of the Uniform State
Antitrust Act.  Current law exempts any conduct or activity of a public
service corporation holding a certification of public convenience and
necessity from the Act.

The staff of the Democratic Caucus explained to TR that HB 2447 would
apply only to competitive services, not to the companies as a whole.
For example, the bill would affect services like Caller ID, call
waiting, and three-way calling.

The staff added that a similar bill that passed last year that removed
competitive electricity generation service from the antitrust exemption.

HB 2447, which was introduced by Rep. Bill Brotherton (D., District 20),
awaits consideration by the House Energy, Utilities, and Technology
Committee, the House Commerce and Economic Development Committee, and
the House Rules Committee.



ALTERNATIVE REGULATION
CONNECTICUT
DPUC nixes service reclassification, OKs rest of Verizon `alt reg' plan

The Department of Public Utility Control has approved Verizon New York,
Inc.'s revised proposed alternative regulation plan on the condition
that the company remove certain service reclassification provisions.

Connecticut law requires an incumbent local exchange carrier's (ILEC's)
services to be classified as competitive, noncompetitive, or
emerging-competitive.  Verizon had proposed that all new services and
new service packages offered during the plan would be "proposed as
competitive, subject to the department's acceptance."  Verizon also
suggested designating its toll service offerings as competitive because
the department already has classified such services as competitive for
the Southern New England Telephone Co. (SNET), the state's other ILEC.

The DPUC said the statute requires specific notice and hearing
procedures before it can change the classification of an ILEC's
service.  The department decided it couldn't roll the statutory
reclassification procedure into its tariff procedures.

Turning to the reclassification of toll services, the department said
that "although Verizon's presence in Connecticut is dwarfed by SNET's
presence," Verizon is the incumbent telco in its two territories and
"arguably maintains the same presence as SNET when compared to
competitive local exchange companies."  The DPUC concluded that Verizon
can't use its revised "alt reg" plan to "circumvent" the statutory
reclassification requirements.  It also concluded that Verizon hadn't
provided any evidence detailing the status and level of competition in
its territories.

The department found the rest of the plan acceptable, including the
elimination of the $2.07 touch tone charge for residential customers,
representing a $830,000 revenue reduction over the 3-year life of the
plan.  The revised plan also commits Verizon to previously established
service-quality requirements.

The department told Verizon to resubmit the plan, minus the service
reclassification provisions, by Feb. 15.  (Docket no. 99-03-06,
Application of the New York Telephone Co. for Alternative Regulation)



STATE & LOCAL GOVERNMENT
TEXAS
Counties would gain authority over wireless telecom facilities under
bill

Rep. Robert Cook (D., District 28) has introduced a bill that would give
counties authority to regulate wireless communications facilities,
including collocated or shared facilities.  HB 1148 would allow the
counties to require companies to seek permits for constructing,
expanding, or removing a tower or other facility.  The bill also would
authorize the counties to impose fees to cover the cost of regulating
the facilities.

The counties would be able to regulate the height, lighting, location,
and removal of the towers or other facilities.  HB 1148 additionally
establishes a set of procedures a person must complete before
constructing a wireless communications facility.



FUTURE OF REGULATION
TENNESSEE
Bill would limit utilities' charges for pole attachments

Sen. William C. Clabough (R., District 8) has introduced SB 1217 to
restrict the amount utilities could request or receive from telephone
companies or cable TV providers for attaching facilities to the
utilities' poles.  Utilities would have to comply with SB 1217 and other
applicable laws in granting permission for pole attachments.

The bill also would require utilities to offer access to their poles and
conduits located in public rights-of-way to any telephone company or
cable TV provider that requested such access.  Utilities could deny
requests for pole attachments only if access wasn't technically viable.
Telephone companies and cable TV providers that were refused permission
to attach facilities to a utility's poles could file a lawsuit for a
declaratory judgment or injunction, or both.

The bill's text is available at
http://www.legislature.state.tn.us/bills/currentga/BILL/SB1217.pdf.



INTERNET
NORTH DAKOTA
Legislators fight extension of Internet tax moratorium

A resolution introduced in the House would urge the U.S. Congress to
reject any attempt to extend the Internet Tax Freedom Act's moratorium
on state and local taxes on Internet access and electronic commerce
transactions.  The moratorium expires Oct. 21.

Reps. Francis Wald (R., District 37), George Keiser (R., District 47),
and Mike Timm (R., District 5) and Sens. Judy Lee (R., District 13), Tim
Mathern (D., District 11), and Herb Urlacher (R., District 36)
introduced HCR 3012.



INTERNET
OREGON
House OKs digital signature bill

The House has approved a bill to require the Department of
Administrative Services to adopt rules for the use of digital signature
by state agencies.  HB 2040 would require the adoption of rules to
ensure adequate integrity, security, and confidentiality of state agency
e-commerce transactions.  The rules also would need to ensure that
transactions could be audited.

The Joint Legislative Committee on Information Management and Technology
requested the introduction of HB 2040 on behalf of the Oregon Internet
Commission.



NETWORK MANAGEMENT
MICHIGAN
Local calling areas to become larger for Ameritech, Verizon customers

The Public Service Commission yesterday determined that local calling
area should be defined as the "home exchange to which a customer's local
access line is assigned as specified in the maps and boundary
descriptions of the incumbent local telephone service provider's
tariffs."

The commission adopted the definition pursuant to a provision of a
recent amendment to the Michigan Telecommunications Act.  (7/7/00 p.m.)
The provision requires calls made to calling areas adjacent to the
caller's local calling area to be considered and billed as local calls.

The PSC determined that the statutory provision doesn't create a new
service and thus prohibits setting a rate for expanded local calling as
a new service.  Carriers must charge the same rate that they have been
charging for local calls.  They may make adjustments in customers'
access areas (and thus the associated access charges) or rate groups for
basic local exchange service.

The commission's order is available at
http://cis.state.mi.us/cgi-bin/mpsc/vieworder.cgi?filename=/mpsc/orders/comm/2
001/u-12515b.htm.
(Case nos. U-12515, U-12528)



CUSTOMER-AFFECTING
KENTUCKY
PSC plans meeting to discuss `N11' pricing issues

The Public Service Commission has scheduled a Feb. 13 conference with
Cincinnati Bell Telephone Co. and the Kentucky Transportation Cabinet to
discuss pricing issues related to "N11" abbreviated dialing codes.
Specifically, the PSC intends to address the proposed contract between
Cincinnati Bell and the Transportation Cabinet for converting access to
travel and information services from the "211" code to "511" code.  In
addition, Cincinnati Bell will be expected to defend its proposed price
for providing 511 service to the cabinet.

In November 1997 the PSC required Cincinnati Bell to allocate the 211
dialing code to the cabinet for a trial period.  Then, in July 2000 the
FCC ruled that the 511 dialing code should be used for travel
information.  Last fall the PSC assigned the 511 dialing code in
Cincinnati Bell's service area to the state's transportation cabinet to
serve as a travel and safety information service.  (11/1/00 a.m.)

In January the PSC reopened its investigation into the allocation of N11
dialing codes in response to BellSouth Telecommunications, Inc.'s Dec.
11, 2000, filing of tariffs to provide 511, 211, and "711" services.
(1/16/01 a.m.)

(Administrative case no. 343 - In the Matter of Investigation into the
Assignment of Abbreviated N11 Dialing Codes)



CUSTOMER-AFFECTING
ILLINOIS
Rep. Franks takes aim at telemarketers

Rep. Jack D. Franks (D., Woodstock) has introduced HB 570 to require
telemarketers to register with the attorney general, obtain a surety
bond, and maintain certain business records.  The measure would require
the AG to charge "reasonable" application and renewal fees.

Telemarketers would have to disclose their identity, purpose for
calling, and the nature of the goods or services being offered during a
telephone solicitation.  They would have to provide written notice to
customers 10 days after completing a sale.

The AG would have the authority to enforce any provisions of the
legislation as an unawful act under the state's Consumer Fraud and
Deceptive Business Practices Act.



INTERNET
MISSISSIPPI
Internet child protection bills advance

Two bills that aim to protect children from sexual exploitation over the
Internet have passed their first hurdles in the Legislature.  HB 1140,
introduced by Rep. Jamie Franks Jr. (D., District 19), has passed the
House.  The bill would ban the use of the Internet to transport visual
depictions of children engaging in sexually explicit acts.  (1/22/01
a.m.)

SB 2146, sponsored by Sen. Terry C. Burton (D., District 31), has
cleared the Senate.  The bill would prohibit using the Internet to
distribute "indecent materials" with the intent of seducing a minor.
(1/23/01 a.m.)



NETWORK MANAGEMENT
ARIZONA
Bill would change excise tax that funds emergency telecom services

Sen. Susan Gerard (R., District 18) has introduced a bill that would
alter the tax levied to fund the state emergency telecom services fund.
SB 1504 would levy a tax of 37.5 cents per month for each activated
wireline and wireless service account.

Under current law, the tax on wireline carriers is a percentage of their
gross proceeds, and wireless carriers are assessed a flat tax.  SB 1504
awaits consideration by the Senate Finance Committee and the Senate
Rules Committee.



Federal law prohibits duplication in any form, including electronic,
without permission of the publisher.

TR's State NewsWire Copyright 1998, 1999, 2000 Telecommunications
Reports International, Inc. (ISSN 1082-9350) is transmitted each
business day at 8 a.m. and 2 p.m., except holidays.
Telecommunications Reports International, Inc.
1333 H St. NW, Suite 100-E
Washington, DC 20005-4707

Associate Editor for Online Publications: Jennifer Erschen, E-mail:
jerschen@tr.com
Senior Legislative & Regulatory Analyst: Gayle Kansagor, E-mail:
gkansagor@tr.com
Senior Research Analyst: Steve Arlowe, E-mail: sarlowe@tr.com
Senior Analyst: Barney McManigal, E-mail: bmcmanigal@tr.com
Account Services: Eileen Callahan (202) 312-6116, (202) 842-3023 (fax)
E-mail: ecallahan@tr.com