Telecommunications Reports presents . . . . . TR's State NewsWire
January 25, 2001 2 P.M. Edition


STATES
LOUISIANA -- PSC discusses creating a 'pool' of CLECs
KANSAS -- Arbitrators say SW Bell doesn't have to combine UNEs for
Sprint
KANSAS -- KCC to take a look at how USF dollars are spent
MISSOURI -- Sen. Kinder aims to enact UETA
NEW YORK -- Legislators wants rate disclosure and per-second billing
ILLINOIS -- Legislation would tax Internet sales
OKLAHOMA -- Bill allows state agencies to adopt digital signature rules
UTAH -- PSC seeks comments on service quality rules
MISSOURI -- Bill would exempt some interstate telecom services from
sales taxes
VIRGINIA -- Verizon requests collocation exemptions
MINNESOTA -- Rural carriers say governor's plan will lead to higher
rates
VIRGINIA -- House approves bill to eliminate certification hearings
NEW MEXICO -- Hearings on Qwest 'alt reg' plan to continue next week



CUSTOMER-AFFECTING
LOUISIANA
PSC discusses creating a 'pool' of CLECs

The Public Service Commission yesterday discussed a staff report on
creating a "pool" of competitive local exchange carriers (CLECs) to
provide service to CLEC customers whose providers are unable to pay
their debts to incumbent local exchange carriers (ILECs).  The pool aims
to enable CLEC customers to continue receiving reliable service without
having their business revert to ILECs such as BellSouth
Telecommunications, Inc.

The commission took no action on the issue at yesterday's session but
plans to discuss it again next month, a commission staff member told
TR.  Meanwhile, the state's CLECs are addressing the issue at a meeting
today in Baton Rouge, the staff member said.



SECTION 251/252
KANSAS
Arbitrators say SW Bell doesn't have to combine UNEs for Sprint

Two state Corporation Commission arbitrators have determined that the
law doesn't require Southwestern Bell Telephone Co. to combine unbundled
network elements (UNEs) at the request of Sprint Communications Co. L.P.
that aren't combined already.  Originally the arbitrators ruled that SW
Bell had to provide Sprint UNE combinations that SW Bell ordinarily
provides to itself when provisioning telecom services for its customers.

The arbitrators said they based their reversal on a U.S. District Court
for the Western District of Michigan (Grand Rapids) decision, which
stated, "Under the [federal Telecommunications Act of 1996] it is the
duty of the requesting carriers, not the incumbent [local exchange
carriers], to combine the elements."  The court explained that it
couldn't insert a bundling requirement and added that the state also was
precluded from imposing such a requirement.

The ruling will be sent to the KCC for action.  The arbitrator's ruling
is available at
http://www.kcc.state.ks.us/scan/200101/20010119165748.pdf.  (Docket no.
00-SCCC-1046-ARB)



UNIVERSAL SERVICE
KANSAS
KCC to take a look at how USF dollars are spent

The state Corporation Commission has determined that it needs to monitor
how nonrural and rural telecom carriers are using the universal service
funds they receive from the state and federal governments.  Carriers
must use the funds "only for the provision, maintenance, and upgrading
of facilities and services," according to section 254(e) of the federal
Telecommunications Act of 1996.

Parties must file comments by March 9 detailing any mechanisms the KCC
can use to monitor whether the support is being used appropriately.
Replies are due March 30.  (Docket no. O1-GIMT-595-GIT, In the Matter of
a General Investigation to Ensure Compliance with Section 254(e) of the
federal Telecommunications Act of 1996)



INTERNET
MISSOURI
Sen. Kinder aims to enact UETA

Sen. Peter D. Kinder (R., District 27) has introduced SB 220 to make
electronic transactions as legally binding as paper transactions if the
parties involved agree to conduct business electronically.  SB 220 also
would repeal the Missouri Digital Signatures Act.

Certain types of transactions still would have to occur manually.  The
proposed bill, for example, wouldn't supersede laws that govern the
creation and execution of certain types of documents, such as wills,
codicils, or testamentary trusts.

It has been referred to the Senate Committee on Commerce and
Environment.



CUSTOMER-AFFECTING
NEW YORK
Legislators wants rate disclosure and per-second billing

Assemblyman Scott M. Stringer (D., District 67) has introduced two bills
to modify telecom pricing practices.

AB 1968 would require long distance service providers that use access
codes to disclose their rates.  The carriers would have to provide
intrastate and interstate rates and "the effect of such variables as
time of day and call duration" each time a caller uses the access code.
The companies also would have to provide the rate information to local
exchange carriers, who would have to share the information with their
customers semiannually.

The second measure, AB 1668, would require all charges based on call
duration to be charged and prorated by the second.  The proposed law
would apply to charges for both landline and wireless calls and all
service providers and "aggregators," such as hotels and hospitals.

Both bills have been referred to the Committee on Corporations
Authorities and Commissions.  The text of AB 1968 is available at
http://assembly.state.ny.us/cgi-bin/showtext?billnum=A01968, and the
text of AB 1668 is available at
http://assembly.state.ny.us/cgi-bin/showtext?billnum=A01668.



INTERNET
ILLINOIS
Legislation would tax Internet sales

Rep. John (Jack) McGuire (D., Joliet) has filed HB 278 to subject
Internet purchases shipped to Illinois addresses to the state's sales
tax.  The measure was filed yesterday and hasn't been formally
introduced in the House yet.

INTERNET
OKLAHOMA
Bill allows state agencies to adopt digital signature rules

Rep. Fred Perry (R., District 69) has prefiled HB 1322 to allow state
agencies to adopt their own rules governing the use of digital
signatures.  The rules would have to meet or exceed the rules adopted by
the Secretary of State.  The bill wouldn't require any person to use or
permit the use of electronic or digital signatures.

HB 1322 would set up certain requirements for citizens to become
certification authorities in Oklahoma.  The applicant would need to
register with the Secretary of State and pay a filing fee.
Additionally, the applicant would need to provide the Secretary of State
a bond, certificate of insurance, or other evidence of financial
security in the amount of $100,000.



CUSTOMER-AFFECTING -- SERVICE QUALITY
UTAH
PSC seeks comments on service quality rules

The Public Service Commission has asked for comments by Jan. 29 on
proposed service quality rules, most of which would apply only to Qwest
Corp.  (1/11/01 p.m.)  The rules would require Qwest to install 90% of
all new, transfer, and change orders within three business days or on
the customer's requested due date.  Beginning in July, the company would
have to install 95%.

The draft rules also would allow Qwest to have a maximum of five held
orders per 1,000 new, transfer, and change orders at the end of any
month.  Beginning Jan. 1, 2002, the company could have only four such
held orders.  If it missed an installation commitment, residential
customers would receive a $10 credit, and small business customers would
receive a $40 credit.

Qwest would have to repair 80% of all out-of-service troubles within one
business day and repair 85% of them starting in July.  It would have to
repair 90% within two business days.  If Qwest missed a repair
commitment, it would have to credit residential customers $10 and
business customers $40.

The proposed rules also address reporting requirements, billing, and
disconnection.  The rules are scheduled to be submitted to
Administrative Rules for publication Jan. 31. (Docket no. 00-R340-01, In
the Matter of a Proceeding to Adopt Rules Governing Service Quality
Standards to End Users for All Tariffed Public Telecommunications
Services Pursuant to UCA 54-8b-3.3 (6)(a))



TAXATION
MISSOURI
Bill would exempt some interstate telecom services from sales taxes

Sen. Harry Wiggins (D., District 10) has introduced SB 234 to extend an
existing sales tax exemption on certain types of telecom services.  The
measure would extend the state's current exemption to include services
that are separately listed "on records of the seller maintained in the
ordinary course of business."  The existing exemption applies only to
services that are listed separately on the customer's bill.

SB 234 also would modify the list of nontaxable telecom services by
adding "interstate transmissions of information by wire, radio, optical
cable, coaxial cable, electronic impulses, or other similar means."

SB 234 has been referred to the Senate Ways and Means Committee.



SECTION 251/252
VIRGINIA
Verizon requests collocation exemptions

The State Corporation Commission has asked for comment on Verizon
Virginia, Inc.'s request for two collocation exemptions.  Verizon said
its Mason Cove and Hartwood central offices qualify for exemptions of
the general requirement to provide physical collocation.

The commission ordered its staff to investigate the request and report
its findings by March 19.  Comments from interested parties are due Feb.
19.  (Case no. PUC010006, Application of Verizon Virginia, Inc. for
Exemption for Physical Collocation at its Mason Grove and Hartwood
Central Offices)



FUTURE OF REGULATION
MINNESOTA
Rural carriers say governor's plan will lead to higher rates

The Minnesota Association for Rural Telecommunications has opposed Gov.
Jesse Ventura's (Independence Party, Minnesota) proposed telecom
legislation, saying it would bring drastically higher rates and stall
technological advancements.  The governor unveiled the plan during the
Jan. 23 presentation of his proposed 2002-2003 budget.  (1/24/00 p.m.)

The group, which says it represents the state's independent rural
telcos, says the governor's plan to reduce access charges would give
long distance companies a "windfall" in reduced costs without passing it
on to rural customers.  It said independent telephone companies use
access charges to keep basic telephone rates affordable, deploy advanced
technology, and reinvest in their communities.

According to the association, the governor's proposal "is built on the
false premise that independent telephone companies are not supplying
rural Minnesota with the most advanced technology.  The fact is by the
end of this year, all customers of independent telephone companies will
have access to [digital subscriber line] service, the same as the Twin
Cities."



FUTURE OF REGULATION
VIRGINIA
House approves bill to eliminate certification hearings

The House has approved HB 1902 to eliminate the requirement that the
State Corporation Commission conduct a hearing on every application for
a certificate to furnish local exchange service.  The bill provides that
the SCC could hold a hearing if one were requested.

The measure has been referred to the Senate Committee on Commerce and
Labor.  Del. Kenneth R. Plum (D., District 36) is the measure's
sponsor.  HB 1902's text is available at
http://leg1.state.va.us/cgi-bin/legp504.exe?011+ful+HB1902.



ALTERNATIVE REGULATION
NEW MEXICO
Hearings on Qwest 'alt reg' plan to continue next week

The Public Regulation Commission has announced that it will reconvene
its hearing on Qwest Corp.'s alternative form of regulation plan Jan.
31.  The hearing is scheduled for 9:30 a.m. at the PRC's office in Santa
Fe.

Earlier this week Qwest and the New Mexico Internet Service Providers
Group filed a proposed settlement on the plan.  (1/24/01 a.m.)  The
attorney general's office and e.spire Communications, Inc., remain
opposed to it.



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