STATES
ARKANSAS -- Bill would require use tax on electronic transactions
VIRGINIA -- SCC enjoins Verizon from disconnecting CLEC's customers
KANSAS -- House OKs bill bringing broadband to schools, libraries,
hospitals
HAWAII -- Lawmaker proposes no-call list
MISSISSIPPI -- Bills would create emergency telephone service charge
MO. -- Bill would establish classroom technology trust fund and
commission
IOWA -- Board to rehear Qwest tariff
FLORIDA -- BellSouth says competition in the state is on the rise

INTERNET
ARKANSAS
Bill would require use tax on electronic transactions

Rep. Roger Smith (R., District 32) has introduced a bill that would
require out-of-state vendors with ties to Arkansas to collect a use tax
on sales made electronically to Arkansas consumers.  HB 1440 would amend
Arkansas Code 26-53-124 regarding the collection of use tax by
out-of-state vendors.

Under HB 1440, orders processed over the Internet, telephone, fax, or
other electronic means would be subject to the use tax if the vendor
held a "substantial ownership interest" in a retailer with a physical
presence in Arkansas.

The use tax also would apply if a "bricks-and-mortar" retailer based in
Arkansas owned a significant part of the out-of-state vendor.  In
addition, an out-of-state vendor would have to collect the use tax if
its offerings were "substantially similar" to an Arkansas retailer's
product line, or if the out-of-state vendor marketed its products using
an Arkansas retailer's workers or facilities.

HB 1440's text is available at
http://www.arkleg.state.ar.us/ftproot/bills/2001/htm/HB1440.pdf.

SECTION 251/252
VIRGINIA
SCC enjoins Verizon from disconnecting CLEC's customers

The State Corporation Commission has enjoined Verizon Virginia, Inc.,
from "unreasonably disconnecting service" to local exchange service
customers who switch from Verizon to competitive carrier Cavalier
Telephone LLC.

Cavalier petitioned the SCC for help last September, claiming Verizon
"unlawfully interrupted service" to hundreds of customers who chose to
migrate to Cavalier.  Verizon acknowledged that "premature
disconnections" led to 66 of the service outages but said that 43 of
those customers were reconnected either the same day they were reported
to Verizon or by the following day.  (11/8/00 p.m.)

After taking evidence during a November 2000 hearing, the SCC found that
although the number of premature disconnections was "unacceptable,"
there was no evidence that Verizon's disconnections were intentional.
"Nevertheless," the SCC said, "we cannot condone this inattention to
customer service."

The SCC directed the companies to file monthly reports, beginning Feb.
12, detailing any further unwarranted disconnections of service.
(Docket no. PUC000262, Petition of Cavalier Telephone LLC for Emergency
Relief to Halt Unlawful Customer Disconnects by Verizon Virginia, Inc.)

ADVANCED SERVICES
KANSAS
House OKs bill for broadband network for state's schools, libraries,
hospitals

The House of Representatives has approved a bill that would establish a
KAN-ED broadband network for Kansas schools, libraries, and hospitals.
(1/23/01 a.m.)  HB 2035 would require that the statewide network link
schools and libraries to the Internet by July 1, 2002.  Hospitals
wouldn't have to be connected until July 1, 2003.

HB 2035 was recommended by the State Education Technology-Based Network
Task Force.  Proponents of the legislation included the Commissioner of
Education, the Kansas National Education Association, the Kansas Cable
Telecommunications Association, the Kansas Telecommunications Industry
Association, Sprint Corp., and the Kansas Independent College
Association.  No opponents have surfaced.

The bill also would set up a KAN-ED board to govern the program and
establish a plan to ensure that all schools, libraries, and hospitals
have quality, affordable access to the Internet and distance learning.
HB 2035 would authorize the board to contract with telecom and cable TV
service providers to establish, operate, and maintain the network.
Additionally, the board would set the network's standards.

The House Utilities Committee sponsored HB 2035.  A similar measure, SB
48, sponsored by the Senate Education Committee, awaits consideration in
that committee.  HB 2035 also will be considered by the Senate Education
Committee.

CUSTOMER-AFFECTING
HAWAII
Lawmaker proposes no-call list

Rep. Sylvia Luke (D., District 26) has introduced a bill that would set
up a no-call list for citizens that don't want to receive telemarketing
phone calls.  The list would be established and maintained under the
auspices of the Public Service Commission.  HB 914 would require the
list to be operational by Jan. 1, 2002.

HB 914 would require local exchange companies to inform residential
customers of their right to be included on the no-call list.  Residents
would have to pay $5 to place their telephone numbers on the list.

The state's attorney general would have the authority under the bill to
initiate a proceeding against a telemarketer that violated the measure.
If found guilty, the telemarketer would face a fine of up to $2,000 for
each violation.

Additionally, any person on the list who received more than one
telephone solicitation within any 12-month period by or on behalf of the
same person or entity could bring an action to enjoin further
violations.  The person could recover an actual monetary loss, or
receive up to $2,000 in damages.

HB 914 awaits committee referral.

WIRELESS
MISSISSIPPI
Bills would create emergency telephone service charge

Rep. Tim Ford (D., District 18) and Sen. Thomas E. Robertson (R.,
District 51) are sponsoring similar bills, HB 469 and SB 2393, to
provide for a surcharge to fund emergency response telephone services.
HB 469 has passed the House Public Utilities Committee, and SB 2393 has
passed the Senate Public Utilities Committee.

The proposed bills would enact an emergency telephone service charge of
up to $1 per month for a residential telephone subscriber line and up to
$2 per month for a commercial telephone subscriber line for exchange
telephone service.

HB 469 and SB 2393 also would establish a Commercial Mobile Radio
Service (CMRS) Board.  The five-member board would require a CMRS
emergency telephone service charge of $1 per month for each CMRS
connection.  CMRS providers would collect the CMRS service charges as
part of their regular monthly billing process.  HB 469 and SB 2393 also
would require CMRS providers to offer wireless E911 service.

UNIVERSAL SERVICE
MISSOURI
Bill would establish classroom technology trust fund, commission

Rep. Tim Van Zandt (D., District 38) has introduced HB 559 to establish
a classroom technology trust fund and a commission to administer it.
The fund would receive all the money from state abandoned property funds
that otherwise would revert to general revenues.

The classroom technology commission would distribute money from the fund
to school districts to help bring technology into the classroom.  Money
from the fund could be used for technology expenditures for hardware,
software, Internet connections, teleconferencing, and training for
students and teachers.  The commission would forward recommendations to
the state treasurer on other uses of the fund.

HB 559's text is available at
http://www.arkleg.state.ar.us/ftproot/bills/2001/htm/HB1440.pdf.

TARIFFS
IOWA
Board to rehear Qwest tariff

The Iowa Utilities Board has decided to grant petitions for rehearing
filed by Qwest Corp. and the Consumer Advocate Division of the
Department of Justice regarding a Qwest tariff filing to reduce its
rates.

In December 2000 the board ordered Qwest to reduce its rates by 1.21%
and to reduce selected basic service rates.  The board also denied in
its December 2000 order a Qwest request to offset a previous CentrexPlus
rate reduction.  (Docket no. TF-00-250, In Re: Qwest Corporation, f/k/a
U S WEST Communications, Inc.)

COMPETITIVE LOCAL ENTRY
FLORIDA
BellSouth says competition on the rise in Florida

BellSouth Telecommunications Co. has told the Florida Public Service
Commission that telecom competition is growing throughout the state.
BellSouth said it now has competition in each of its 102 exchanges in
Florida.

In a report the company submitted to the commission on Friday, BellSouth
cited growth in both the number of resellers and facilities-based
carriers operating in the state.  In its Florida operating territory,
161 alternative local carriers are fully operational, with an estimated
800,000 customers, BellSouth said.  The report said 428 alternative
local carriers have applied for authority to do business in the state.
That level of applications indicates competition "will be getting more
intense throughout the state in the future," it said.

BellSouth spokesman Spero Canton said, "The statistics show that
competitors are still making a major effort to acquire business
customers, due to high revenue potentials, but we've also seen an
increase in the attrition of residential customers."

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