STATES
NEW JERSEY -- Bill sets market share test for promoting local
competition
INDIANA -- URC to investigate Ameritech service quality
MISSOURI -- Bill targets Web sites that force computers to dial long
distance numbers
MONTANA -- Committee OKs Uniform Electronic Transactions Act
INDIANA -- URC gives interim approval to parts of Ameritech UNE tariff
CALIFORNIA -- PUC approves interim performance assessment plan
OREGON -- PUC wants contested cases to go to state appeals court
MONTANA -- Senate passes bill keeping '911' fund interest 'in the
system'
INDIANA -- URC seeks comment on scope of UNE proceeding
ARKANSAS -- Rep. Hunt seeks to clarify computer crime law
OHIO -- PUC to hold hearings on '614' area code relief proposals

SECTION 251/252
NEW JERSEY
Bill sets market share test for promoting local competition

Sen. Robert W. Singer (R., District 30) has introduced SB 1522 to
"establish conditions necessary for genuine competition to develop in
the local exchange telephone market."  The measure lays out standards
and procedures that would apply to each incumbent local exchange carrier
(ILEC) until its market share in its local service territory declined to
50% or below.

The Board of Public Utilities would have to hold a "cost-of-service"
hearing within 45 days of the law's effective date to determine an
ILEC's actual service costs, including costs of providing unbundled
network elements to competitors.  In analyzing costs, the BPU would have
to use "parameters consistent with those established by the FCC."

The BPU would have to hold subsequent cost-of-service hearings every two
years to provide for appropriate rate adjustments.  After each hearing,
the ILECs would have to file new rate tariffs with the BPU to reflect
"actual costs of service, plus an authorized rate of return up to a
maximum of 10%."  The bill includes provisions to make sure "ILECs offer
to lease network elements to competing local exchange carriers [CLECs]"
and "otherwise conduct their business in nondiscriminatory ways with
regard to CLECs."

"Immediately following" the law's effective date, the BPU would have to
order full testing of the ILEC's operations support systems (OSSs).  The
board couldn't certify an OSS as functional unless the testing
"unequivocally" demonstrated that it met the same standards as required
for systems used for switched interexchange service.  The OSS would have
to pass a 90-day commercial availability test before certification.

After the initial hearing, switched access rates would have to be
reduced to cost.  Unless cost data supported higher rates, the BPU would
have to set access rates at no higher than $.008 per minute for local
switching charges and $.00175 per minute for originating and terminating
nontraffic-sensitive switched usage rates.

Another provision of the bill deems local calls to Internet service
provider to be "local call[s] for reciprocal compensation purposes."

The bill aims to protect consumers by directing the BPU to establish a
universal service fund (USF) that would be funded by all telephone
service providers.  The USF would provide discounted service for
eligible schools and libraries and provide support for service in
high-cost areas.  The measure would require creation of a Lifeline
service program.

The BPU would have to develop comprehensive performance standards,
reporting requirements, service quality measurements, and enforcement
mechanisms to ensure that service isn't degraded, and competitors aren't
disadvantaged in the competitive marketplace.

SB 1522 has been referred to the Commerce Committee.  An identical
version (AB 3122) sponsored by Assemblywoman Rose Marie Heck (R.,
District 38) has been introduced in the Assembly.  The text of SB 1522
is available at
http://www.njleg.state.nj.us/2000/Bills/s2000/1522_i1.htm.

CUSTOMER-AFFECTING
INDIANA
URC to investigate Ameritech service quality

The Utility Regulatory Commission yesterday opened a formal
investigation of Ameritech-Indiana's service quality.  The commission
acknowledged that the company's service quality has improved during the
last few months but said it's concerned that during 2000 the company
didn't meet service quality standards required by law.  The URC said its
investigation will require Ameritech to "convince the commission why
enforcement action should not be taken."

According to the URC, Ameritech doesn't comply with the state law
requirement to restore all service outages within 24 hours of the time
they're reported.  (170 IAC 7-1.1-11(E)(1))  Ameritech managed to comply
with the requirement just 85.3% of the time during the first quarter of
2000, 81.4% of the time during the second quarter, and 66.2% during the
third quarter.

The URC said Ameritech's performance falls short of compliance with the
state law requirement that it fulfill at least 90% of all requests for
new primary service in any month within 5 days.  (170 IAC
7-1.1-11(A)(2))  Ameritech complied with the standard 86% of the time
during first quarter 2000, 85.5% during the second quarter, and 88.6%
during the third quarter.

It said Ameritech also fails to meet the standard requiring it to make
all reasonable efforts to provide adequate personnel so that under
normal operating conditions, at least 80% of calls to business office
and repair service are answered within 20 seconds after the beginning of
a ring, the URC said.  Ameritech's average response to answer phone
calls in 2000 ranged from a low of 62.5 seconds in January to a high of
222.7 seconds in August, it said.

INTERNET
MISSOURI
Bill targets Web sites that force computers to dial long distance
numbers

Sen. John Loudon (R., District 7) has proposed a bill to prohibit Web
site operators from causing users' computers to dial long distance
numbers without informing the users.  SB 70 would add a new section to
Chapter 570, RSMo.

Web site operators who violated the new section could be charged with a
"class A" misdemeanor if related long distance charges were $150 or
less.  If the charges totaled more than $150, the Web site operator
could be charged with a "class C" felony.

SB 70 has been referred to the Civil and Criminal Jurisprudence
Committee.  Its text is available at
http://www.senate.state.mo.us/01info/billtext/intro/SB070.htm.

INTERNET
MONTANA
Committee OKs Uniform Electronic Transactions Act

The state House Business and Labor Committee has approved a Uniform
Electronic Transaction Act to prohibit anyone from denying legal effect
or enforceability to a record or signature solely because it's in
electronic form.  (1/3/01 p.m.)

Each government agency would be able to determine whether and to what
extent it would send and accept electronic records and electronic
signatures.  The committee amended the bill to state that government
agencies wouldn't be limited to specific types of technologies.

HB 234 states that electronic signatures would be valid only if all
parties agreed to conduct a transaction electronically.  If a party
agreed to conduct one transaction by electronic means, the party could
refuse to conduct other transactions electronically.  This right to opt
out of electronic transactions couldn't be waived.

Secretary of State Mike Cooney (D.) is the sponsor of HB 234, which
awaits consideration on the House floor.

SECTION 251/252
INDIANA
URC gives interim approval to parts of Ameritech UNE tariff

The Utility Regulatory Commission yesterday gave interim approval to the
terms and conditions portion of Ameritech-Indiana's proposed unbundled
network element (UNE) tariff.  The interim approval is subject to
challenge in a formal pleading by any competitive local exchange
carrier, other party to the case, or the commission's own motion to
investigate a specific term or condition.  The URC gave final approval,
however, to the tariff's rates and charges..

The URC said it's concerned that "a tariff containing finally approved
terms and conditions may become not only the minimum conditions for
interconnection but also the maximum conditions any CLEC can negotiate.
We believe this result would improperly limit future negotiations
between [incumbent local exchange carriers] and CLECs to limit the
choice available under section 252 of [the federal Telecommunications
Act of 1996]."

The commission said it isn't sure how an interconnection agreement and
an interconnection service arrangement that is tariffed would interact.
For example, the URC questioned whether a CLEC could have an
interconnection agreement but still buy interconnection services out of
a tariff.

(Cause no. 40611 - In the Matter of the Commission Investigation and
Generic Proceeding on Ameritech-Indiana's Rates for Interconnection,
Service, Unbundled Elements, and Transport and Termination Under the
Telecommunications Act of 1996 and Related Indiana Statutes)

SECTION 251/252
CALIFORNIA
PUC approves interim performance assessment plan

The Public Utilities Commission has approved an interim performance
assessment plan for Pacific Bell and Verizon California, Inc., that
seeks to identify and prevent or remove any barriers to telecom
competition.  The federal Telecommunications Act of 1996 requires all
incumbent local exchange carriers to provide competing carriers access
to the incumbent's infrastructure, such as operation support systems
(OSSs).

Within the plan, the PUC created a set of procedures for assessing the
performance measurement results to identify competitive barriers.  The
commission also concluded that the interim pilot test period would
assist the PUC in determining the appropriate levels of long-term
economic incentives.

The plan's details are available at
http://www.cpuc.ca.gov/PUBLISHED/AGENDA_DECISION/4344.htm.  (Rulemaking
97-10-016 and Investigation 97-10-017)

FUTURE OF REGULATION
OREGON
PUC wants contested cases to go to appeals court

The Public Utility Commission has sponsored a bill to remove one layer
from the process parties encounter when contesting a PUC decision.  HB
2179 would require all cases challenging PUC decisions to go straight to
the appeals court, rather than first going to the circuit court and then
to the appeals court.  The PUC staff told TR that most public utility
commissions already operate in this manner.

The staff said that in supporting the legislation, the commission wants
to accelerate the review process and reduce unnecessary steps and
costs.  The staff said eliminating the circuit court level could make
for a more "stable" environment.

HB 2179 also could help the Marion County Circuit Court, which receives
the majority of cases contesting PUC decisions.  According to the PUC
staff, the circuit court is asking the county for more money, in part
because of all the cases it receives from the commission.  The
commission's headquarters is located in Marion County.

NETWORK MANAGEMENT
MONTANA
Senate passes bill keeping '911' fund interest 'in the system'

The state Senate has approved SB 112 to allow any interest earned on
funds deposited into a "911" account to be retained by the 911 system,
rather than being lumped into the state's general funds.  (12/19/00
p.m.)

According to a fiscal note on SB 112, the bill would conform the
statutes to current practice.  The measure, which was introduced by Sen.
Linda Nelson (D., District 49), awaits committee referral in the House.

SECTION 251/252
INDIANA
URC seeks comment on scope of UNE proceeding

The Utility Regulatory Commission has requested comments by Feb. 2 on
unbundled network element (UNE) issues it should address in a new
subdocket.  Replies are due Feb. 16.

The commission opened the subdocket in August 2000 to address the issue
of line sharing.  Covad Communications Co. and Rhythms Links, Inc., had
asked the URC to address the issue in its investigation of
Ameritech-Indiana's proposed UNE tariff, but the commission found it
wasn't appropriate to address it within that investigation.

The URC also has set other issues aside for the docket, such as shared
transport and loop conditioning.  (Cause no. 40611-S1 - In the Matter of
the Commission Investigation and Generic Proceeding on
Ameritech-Indiana's Rates for Interconnection, Service, Unbundled
Elements, and Transport and Termination Under the Telecommunications Act
of 1996 and Related Indiana Statutes)

INTERNET
ARKANSAS
Rep. Hunt seeks to clarify computer crime law

Rep. Russ Hunt (R., District 68) has introduced HB 1231 to amend the
state's computer crime law to define terms such as "computer virus" and
"aggravated computer trespass."  It would amend Arkansas Code 5-41-102.

The amendment would define a computer virus as "any computer
instruction, information, data or program that degrades the performance
of a computer resource; disables, damages or destroys a computer
resource; or attaches itself to another computer resource and executes
when the host computer program, data or instruction is executed or when
some other event takes place in the host computer resource, data or
instruction."

Aggravated computer trespass would be defined as the willful
introduction of a virus into a computer system or the dissemination of a
password or other sensitive computer-related information.  HB 1231 would
classify aggravated computer trespass as a "class D" felony.

The bill would specify the damages that a computer crime victim could
seek.  The term "damages" would include profits lost while a computer
system was down, the cost of restoring data, and the expenses incurred
in fixing or replacing any affected parts of the system.

HB 1231 has been referred to the House Judiciary Committee.  Its full
text is available at
http://www.arkleg.state.ar.us/ftproot/bills/2001/htm/HB1231.pdf.

NETWORK MANAGEMENT
OHIO
PUC to hold hearings on '614' area code relief proposals

The Public Utilities Commission yesterday scheduled two hearings for
Feb. 7 to receive public comment on proposals to relieve exhaustion of
the "614" area code.  The first hearing is scheduled for 10 a.m., and
the second is scheduled for 7 p.m.  Both will be held at the PUC's
offices in Columbus.

The "614" area code relief planning team has proposed either an
all-services "overlay" or a geographic "split" to relieve NXX code
exhaustion.  Under the geographic split option, all the exchanges
surrounding the Columbus exchange would be on one side, and only the
Columbus exchange would be on the other.  (Case no. 00-1260-TP-COI - In
the Matter of the Commission's Investigation into Exhaust Relief for
Area Code 614)

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