Telecommunications Reports presents . . . . . TR's State NewsWire
January 22, 2001 2 P.M. Edition


STATES
PENNSYLVANIA -- State court says FCC should hear privacy claim against
Sprint
INDIANA -- Hearings on Ameritech alt reg plan settlement to begin
tomorrow
ARKANSAS -- Gov. Huckabee signs bill changing committee's membership
OKLAHOMA -- OCC takes a look at its telecom rules
UTAH -- Committee OKs bill closing cell tower zoning loop hole
MISSOURI -- Bill would create new e-commerce committee
MISSOURI -- Rep. Gratz wants to amend 'no-call' database law
INDIANA -- Legislator wants URC to adopt service quality rules
INDIANA -- Small business utility advocate would be created under bill
N.D. -- Senate OKs bill allowing state to collect delinquent telecom
taxes
WASHINGTON -- WUTC sets hearing on telecom operations rule changes


WIRELESS
PENNSYLVANIA
State court says FCC should hear privacy claim against Sprint

A three-judge panel of the Superior Court of Pennsylvania, the state's
intermediate appeals court, has rejected an appeal by two Sprint
Spectrum L.P. customers who want their invasion of privacy claim to be
heard in state court.  The opinion, penned by Judge John T. J. Kelly,
found that the trial court properly dismissed the claim for lack of
jurisdiction.

The customers brought the claim in 1999, alleging their privacy had been
infringed because their personal account information could be accessed
easily by anyone with a Sprint network wireless phone or anyone who
called Sprint's toll-free customer service number.  While Internet
access to account information was protected by a personal identification
number, the customers claimed, anyone who knew a customer's zip code
could access account information for a Sprint phone number using the
toll-free number or a wireless phone.

The trial court dismissed the complaint for lack of subject matter
jurisdiction.  The customers argued the trial court had jurisdiction
because the state Public Utility Commission regulates Sprint.  They said
Pennsylvania law gives the state's courts jurisdiction over claims
against PUC-regulated entities.

The Superior Court rejected the customers' reasoning, finding that
although the PUC regulates Sprint's wireline operations, it doesn't
regulate its wireless service provider arm.  The court said, "A wireless
telephone service provider does not become a regulated public utility
simply because the commission regulates a related entity."

The court said section 222 (c)(1) of the federal Telecommunications Act
of 1996 requires specific telecom privacy standards.  It concluded,
"Although couched in terms of a state law cause of action for invasion
of privacy, [the customers'] claim falls squarely within the conduct
prohibited by section 222 of the [Act]."  The court added that the
customers "may wish to raise the matter in a complaint with the FCC."

Judge Kelly also noted that the customers can't rely solely on the state
law privacy claim because they haven't shown that their particular
private information has been "disseminated to the public at large" and
that they have "suffered harm by this dissemination."

Judges John L. Musmanno and Joan Orie Melvin joined Judge Kelly's
opinion.  (Case no. 928 WDA 2000, Mark B. Aronson and Joseph G. Kanfoush
v. Sprint Spectrum, L.P., et al.)



ALTERNATIVE REGULATION
INDIANA
Hearings on Ameritech alt reg plan settlement to begin tomorrow

The Utility Regulatory Commission is scheduled to begin hearings
tomorrow on a $1 billion settlement reached on Ameritech-Indiana's
Opportunity Indiana alternative regulation plan.  The Office of Utility
Consumer Counsel, the Indiana Intelenet Commission, AT&T Corp., and
Ameritech are parties to the settlement.  The hearings are scheduled to
run from 9 a.m. until 9 p.m. tomorrow through Thursday.

Under the settlement, Ameritech would invest at least $7 million per
year through Dec. 31, 2003, for schools, libraries, hospitals, rural
health care providers, and major government centers to provide digital
switching and transport facilities to support broadband data and video
services.  Ameritech also would provide $5 million per year for three
years to the Corporation for Educational Communications for grants to
schools, libraries, and rural health care providers for educational
efforts focusing on broadband and other new technologies.

Ameritech would provide $1 million for consumer education programs to
protect against "slamming" and "cramming."  The company would maintain
total Indiana employment on Oct. 8, 2002, at or above 3,683 employees,
which is the same as total Ameritech employment on the closing date of
the SBC-Ameritech merger.

Ameritech would upgrade all analog central offices to digital switches
and upgrade additional central office switches to provide high-speed
Internet access.  The company would provide infrastructure to support
digital subscriber line (DSL) technology to the majority of Ameritech's
customer locations and provide alternative Internet access where DSL
isn't deployed.

Beginning Oct. 1, residential rates would decrease by $62 million, and
business rates would decrease by $106 million.  Residential customers
would see a $20 million rate credit, and there would be a $55 million
reduction in access charges.  Customers would receive two free directory
assistance calls per month, and the extended area service surcharge
would be eliminated.



FUTURE OF REGULATION
ARKANSAS
Gov. Huckabee signs bill changing committee's membership

Gov. Mike Huckabee (R.) has enacted a bill that changes the membership
of the Joint Committee on Advanced Communications and Information
Technology.  (1/16/01 p.m.)  HB 1143 raises the number of House members
serving on the committee from seven to 10.

HB 1143 also establishes a House Committee on Advanced Communications
and Information Technology, which consists of the House members of the
Joint Committee on Advanced Communications and Information Technology.
The new committee will address bills that relate to the Department of
Information Systems, advanced communications and learning technology,
public information access, distance learning, and telemedicine.

Reps. Jim Magnus (R., District 55) and Shane Broadway (D., District 46)
introduced the measure.  Its full text is available at
http://www.arkleg.state.ar.us/ftproot/bills/2001/htm/HB1143.pdf.



CUSTOMER-AFFECTING
OKLAHOMA
OCC takes a look at its telecom rules

The state Corporation Commission has scheduled a March 8 hearing to
examine several changes it has proposed making to the state telecom
rules regarding "slamming," billing, and "911."  The rules the
commission plans to alter govern telecom service providers,
interexchange resellers, and interexchange carriers.

The commission proposed amending the rules to require all applicants for
telecom certificates to comply with the state's 911 requirements.  The
OCC added that it was considering amending the rules to ensure that 911
and E911 services are available.

The OCC also proposed changing its slamming rules to mirror the FCC's
slamming rules and remedies.  The commission must make this change
because it recently opted in to administer the FCC's slamming rules.
The issues the new slamming rules will address include establishing
carrier liability, absolution procedures, and procedures for informal
complaints.

The billing issues addressed within the proposed amendments include
truth-in-billing, allowing customers to receive bills over the Internet,
and providing credit for partial payments.

The commission scheduled technical conferences for Jan. 25 and Feb. 15
to discuss the proposals.  During those conferences, interested parties
may address the rule changes and propose any additional changes.
Initial comments on the proposed rule changes are due Feb. 8.  The
proposed rules can be downloaded from
http://www.occ.state.ok.us/TEXT_FILES/wordnotc.htm.  (Cause nos. RM
200000015 and RM 200000014)



STATE & LOCAL GOVERNMENT
UTAH
Committee OKs bill closing cell tower zoning loop hole

The Senate Energy, Natural Resources, and Agriculture Committee has
approved SB 98 to close a loophole regarding the placement of an
unmanned telecom, microwave, fiber optic, or electrical facility.  If
citizens choose to place such a facility on their property, the property
wouldn't be considered a subdivision under the state's zoning laws, the
bill's sponsor, Sen. Ron Allen (D., District 13), explained to TR.

The legislative staff further explained that people sometimes try to
subdivide their property to receive a tax break.  She added that closing
this loophole probably wouldn't act as a deterrent for anyone looking to
place a cell tower on their property because of the large sums of money
most landowners receive from companies for renting out their land.

The staff also said the bill would help keep the matter out of the
courts.  Because there was no strict rule regarding the issue of whether
these facilities subdivided property, the matter has been left to
judicial review, the staff said.



FUTURE OF REGULATION
MISSOURI
Bill would create new e-commerce committee

Rep. Bill Luetkenhaus (D., District 12) has introduced a bill to create
the Advisory Committee for Electronic Commerce to advise state agencies
on electronic commerce issues.  The committee would have 11 members,
each of whom would serve a two-year term.  The director of the
Department of Economic Development would chair the new committee and
select the other members as outlined in the proposed bill.  The
committee would meet at least twice a year.

The full text of HB 447 is available at
http://www.house.state.mo.us/bills01/biltxt01/intro01/HB0447I.htm.



CUSTOMER-AFFECTING
MISSOURI
Rep. Gratz wants to amend 'no-call' database law

Rep. William Gratz (D., District 113) has introduced a bill to allow any
entity that purchased "no-call" database lists from the state's attorney
general to distribute the lists to their employees and independent
contractors.  HB 443 would allow an entity to distribute the database to
any independent contractor that is "regularly associated with the entity
and is engaged in the same or similar business as the entity."

Last year former Missouri Gov. Mel Carnahan (D.) signed SB 763,
requiring the attorney general to create the no-call database for
residential consumers who don't want to receive telemarketing calls.
The attorney general also must promulgate rules governing the database.
Under SB 763, any person on the no-call list who was called more than
twice by the same telemarketer in a 12-month period could file a civil
action to stop the calls and seek as much as $5,000 in damages.

HB 443's full text is available at
http://www.house.state.mo.us/bills01/biltxt01/intro01/HB0443I.htm.



CUSTOMER-AFFECTING
INDIANA
Legislator wants URC to adopt service quality rules

State Rep. Russ Stilwell (D., District 74) has introduced HB 1983 to
require the Utility Regulatory Commission to adopt service quality rules
for public utilities.  The measure has been referred to the House
Committee on Commerce, Economic Development, and Technology.

The rules would require utilities to (1) meet performance levels
established in the rules, (2) inspect and conduct periodic maintenance
of their equipment and facilities, (3) immediately report any
significant service disruptions, and (4) maintain sufficient personnel
in strategic locations.  The URC also would have to require public
utilities to report to the commission on its compliance with the rules
and provide a description of each interruption of service.  The report
would include the public utility's plans to improve its performance.

After notice and hearing, the URC would be able to impose a civil
penalty of up to $25,000 for each noncompliance with the rules or a
penalty of up to 15% of the public utility's annual gross intrastate
operating revenue.

HB 1983 is the seventh bill introduced this session to authorize the URC
to penalize utilities.  (1/18/01 a.m.)



CUSTOMER-AFFECTING
INDIANA
Small business utility advocate would be created under bill

Reps. Earl Harris (D., District 2) and Scott Pelath (D., District 9)
have introduced HB 1779 to create the office of the small business
advocate to "represent, protect, and promote" the interests of small
business utility customers.  The governor would appoint the advocate to
a four-year term.

Small businesses would include (1) wholesale businesses with annual
sales of $4 million or less for the most recently completed fiscal year,
(2) construction businesses with average annual receipts for the
proceeding four years of $4 million, (3) retail businesses or businesses
selling service with average annual sales receipts of less than
$500,000, and (4) manufacturing businesses with less than 100 employees.

The advocate would have to solicit the needs and opinions of small
business utility customers, educate them about utility conservation
measures, and notify them about proceedings before the Utility
Regulatory Commission and other regulatory bodies.  The advocate would
be required to establish a toll-free hotline for inquiries, comments,
and suggestions from consumers.

HB 1779 would require the advocate to report to the governor, the URC,
and the General Assembly by Nov. 1 of each year on any recommendations
for legislative or administrative action.  The measure has been referred
to the House Committee on Commerce, Economic Development, and
Technology.



TAXATION
NORTH DAKOTA
Senate OKs bill allowing state to collect delinquent telecom taxes

The Senate has passed SB 2058, which would authorize the state to
collect delinquent telecom carrier taxes from taxpayers who don't reside
or maintain domiciles in the state.  A delinquent tax is identified as a
tax liability that is due for longer than six months and for which the
taxpayer has been given at least three notices in writing requesting
payment.

The Senate Finance and Taxation Committee introduced SB 2058 at the
request of the tax commissioner.  It hasn't been assigned to a House
committee yet.



FUTURE OF REGULATION
WASHINGTON
WUTC sets hearing on telecom operations rule changes

The state Utilities and Transportation Commission has scheduled a March
14 hearing to consider proposed changes to its telecom operations rules,
which seek to improve the effectiveness of the rules and ensure that the
rules are serving their purposes.  The text of the proposed amendments
was drafted over five stakeholder workshops held in May 1999, March
2000, April 2000, and May 2000.

In total, 16 rules are being proposed for amendment, repeal, or
adoption.  The amended rules would clarify the rule language, include a
cross-reference, and define reporting requirements for competitively
classified companies.  The majority of the repealed rules were no longer
applicable in today's telecom environment.  The new sections being
proposed for adoption include guidelines for rule exemption requests,
rules governing how the telecom industry can access customer premises,
and language clarifying industry emergency requirements.

The draft rules are available at
http://www.wutc.wa.gov/webdocs.nsf/be4e5cc09d8c87408825650200778c6b/b0077eb0fd
610044882569d9007f341f/$FILE/Rules+990146.pdf.




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