STATES
CONNECTICUT -- Draft decision would let SNET drop cable TV business
PENNSYLVANIA -- AG brings suit against telemarketing firm for deceiving
customers
WYOMING -- Senate to take up rights-of-way bill
NEBRASKA -- Governmental bodies would be able to lease dark fiber under
bill
OREGON -- E-commerce businesses could get tax breaks under bill
INDIANA -- Rep. Crawford seeks to reduce mobile telephone use while
driving
NEBRASKA -- Legislators aim to prevent unsolicited telemarketing calls,
faxes
MISSISSIPPI -- Rep. Franks seeks to update child exploitation law for
Internet age
MISSISSIPPI -- Legislation aims to allow states to tax Internet sales
OKLAHOMA -- Bill would take wireless fee to the voters
MISSISSIPPI -- Senate bill would raise tax on interstate telecom
services
WYOMING -- Verizon Wireless brings digital service to Cheyenne

VIDEO
CONNECTICUT
Draft decision would let SNET drop cable TV business

The Department of Public Utility Control has released a draft decision
to grant a request by Southern New England Telephone Co. and its video
service subsidiary, SNET Personal Vision, Inc., to exit the cable TV
business in Connecticut.  The draft decision concludes that the
department doesn't have the statutory authority to require SNET to
continue providing service.  It says the department also lacks the
authority to force the transfer of SNET's franchise or video assets to
another company.

Last August SNET requested permission to abandon its cable TV franchise,
after finding that it couldn't turn a profit selling video service over
its hybrid fiber coaxial (HFC) network.  In September Connecticut
Telephone & Communications Systems, Inc. (CTTEL) asked the department to
transfer SNET's cable TV franchise to CTTEL and also proposed "the
transfer of [SNET's] hybrid fiber coaxial network to Connecticut
Telephone."  (9/22/00 a.m.)

The DPUC's draft decision notes that the "forced transfer" of SNET's
modified franchise agreement would violate "level playing field
requirements" in the state's cable TV law.  In 1999 the DPUC modified
SNET's franchise to give it time to find a way to continue providing
video service.

Standard cable TV franchises require companies to construct their
systems to serve an entire franchise territory and to serve multiple
dwelling units.  According to the draft decision, the DPUC couldn't
transfer SNET's modified franchise to CTTEL without running afoul of the
level playing field requirement.

Regarding the HFC network, the draft decision accepts SNET's position
that aside from coaxial cable and some video-only portions of the
network, there's no "cable TV 'network' to transfer to a third party,
and no pole attachment rights to provide."  It says that "any such
action by the department would almost certainly invoke claims of
taking."

The decision would "strongly" urge SNET to make its video-related
network elements available to cable TV providers, either by tariff or
"special arrangement that would advance the competitive provisioning of
video services, including considering requests by providers of video
services to co-locate facilities."

Joe Mazzarella, CTTEL's president, told TR his company is encouraged by
the department's apparent commitment to ensuring that SNET provides
cable TV companies nondiscriminatory access to its video network
elements.  Still, Mazzarella said CTTEL likely will file written
exceptions to the draft before a final version is adopted.

The draft decision also would modify SNET's exit plan to make the
"cessation of operations as fair and as nondisruptive as possible to its
customers."  It would order SNET to credit each subscriber $50 to defray
the expense of connecting to another video provider.  SNET had offered
to pay $40.

SNET would have to provide two separate notices to notify each customer
of the last day of service and how to contact their incumbent cable TV
provider.  The department said it would accept SNET's proposal to fund
its community access providers for one additional year.

Written exceptions to the draft are due Jan. 26.  The department will
hold a Feb. 5 hearing, if one is requested.  A final decision is
expected Feb. 14.  (Docket no. 00-08-14, Application of Southern New
England Telecommunications Corp. and SNET Personal Vision, Inc., to
Relinquish SNET Personal Vision, Inc.'s Certificate of Convenience and
Necessity)

CUSTOMER-AFFECTING
PENNSYLVANIA
AG brings suit against telemarketing firm for deceiving customers

Attorney General Mike Fisher (R.) has filed a lawsuit against Pittsburgh
telemarketing firm Liberty Publishing Co. and its president, George W.
Lee, for allegedly deceiving phone customers while soliciting more than
$3 million in donations for law enforcement groups.

Fisher's complaint accuses Lee and his company of numerous violations of
the state's Telemarketing Act, Charities Act, and Consumer Protection
Law, including employing convicted felons as professional telemarketers
and misleading consumers about how their donations would be spent.

Fisher said Liberty's telemarketing campaign began in June 1996 and
raised more than $3 million for law enforcement organizations, including
the state Fraternal Order of Police, the Central Pennsylvania Chiefs of
Police Association, and the County and State Detective Association of
Pennsylvania.

The complaint, filed in the Commonwealth Court, alleges that Liberty
violated state laws by employing convicted felons as professional
telemarketers, implying that telemarketers were police officers,
offering stickers, decals, and membership cards, and implying that those
items would result in special treatment by law enforcement officials.

The suit seeks restitution for affected consumers, a civil penalty of
$1,000 per violation of the Charities Act, a civil penalty of $1,000 per
violation of the Unfair Trade Practices and Consumer Protection Law, and
attorneys' fees, investigative costs, and filing fees.

STATE & LOCAL GOVERNMENT
WYOMING
Senate to take up rights-of-way bill

The state Senate is expected to vote tomorrow on a bill to give the
state authority to require companies desiring to lay fiber on state
highways to pay one-time or annual fees.  SF 76 would apply to any
company that wanted to set its "fixtures and facilities along, across,
or under any controlled access highway" under the jurisdiction of the
state's transportation commission.

The fee described in the bill would pay for a license to dig in the
specified area.  SF 76 would require the commission to consider the
market value of the license when determining the amount of the fee.  The
commission also would be able to ask for in-kind facilities in exchange
for the license.

Half the revenues from the fees would go into the state highway fund,
and half would go into the general fund.  Sen. Cale Case (R., District
25) is the measure's sponsor.

STATE & LOCAL GOVERNMENT
NEBRASKA
Governmental bodies would be able to lease dark fiber under bill

A bill introduced in the Legislature would allow any agency or political
subdivision of the state to own, sell, and lease dark fiber.  LB 827
would prohibit agencies or political subdivisions from providing telecom
service for a fee or from becoming certified as contract or common
telecom carriers.

The Public Service Commission would have to approve the lease price and
profit distribution for governmental bodies leasing dark fiber.  The PSC
would be prohibited from approving any lease price greater than the
market rate for leasing such fiber, as determined by the commission.

The market rate would be the cost associated with similar unbundled
network elements that may be available from the incumbent local exchange
carrier serving the same territory where the leased equipment is
located.

Any profit earned by the agency or subdivision from a lease would be
remitted to the state universal service fund.  Any decision by the PSC
regarding a lease price wouldn't be appealable.

Sens. Curt Bromm (Ind., District 23) and Bob Wickersham (Ind., District
49) introduced the measure, which has been referred to the
Transportation and Telecommunications Committee.

INTERNET
OREGON
E-commerce businesses could get tax breaks under bill

State Rep. Jim Hill (R., District 5) has introduced HB 2488 to authorize
the Economic and Community Development Department to establish up to six
electronic commerce zones throughout the state.  Businesses operating
within one of the zones with primary activities related to e-commerce
would be eligible for a lower section 1231 gains tax.  Section 1231 of
the Internal Revenue Code relates to depreciable property used in a
trade or business, such as equipment, vehicles, and rental real estate.
The specific rate isn't included in the bill yet.

The bill would require a city, county, or department to apply for
designation of an area as an e-commerce zone.  All applications would be
reviewed by the department director and acted on within 60 days.  All
decisions would be final.

Communities in which 50% of more of the households have incomes below
80% of the state's median income would be eligible.  Additionally, the
unemployment rate in the community would have to be at least 2% higher
than the statewide unemployment rate.  If these statistics changed, the
e-commerce zone status would be terminated.  Termination of an
e-commerce zone wouldn't affect taxation of section 1231 gains for any
business if the sale or property exchange in which the business invested
occurred before the zone was terminated.

For a business to be certified to receive the tax incentive, it would
need to hire a specific number of employees at a minimum salary.  The
specific number and salary aren't included in the bill yet but will be
added later.

The measure awaits committee referral.

WIRELESS
INDIANA
Rep. Crawford seeks to reduce mobile phone use while driving

Rep. William A. Crawford (D., District 98) has introduced HB 1681 to
require drivers and law enforcement officers reporting motor vehicle
accidents to the state police department to include information about
whether mobile telephones were being used when the accident occurred.
The measure has been referred to the House Committee on Judiciary.

Earlier this month another measure was introduced in the House to
restrict the use of mobile telephones while driving.  (1/16/01 p.m.)  HB
1446 would make driving while using a mobile telephone a class D
infraction.  Reps. Matthew D. Whetsone (R., District 40), Jeff Thompson
(R., District 28), and Clyde Kersey (D., District 43) sponsored the
measure.  It has been referred to the House Committee on Courts and
Criminal Code.

CUSTOMER-AFFECTING
NEBRASKA
Legislators aim to prevent unsolicited telemarketing calls, faxes

Sens. Mike Foley (Ind., District 29) and Chris Beutler (Ind., District
28) have introduced LB 839 to require all local exchange carriers (LECs)
to provide to residential subscribers annually information about
unsolicited telemarketing calls and faxes.  The LECs would have to
provide the information either as an insert in the residential
subscriber's billing statement or as a separate written communication.

The communication would include a brief description of language covering
unsolicited telemarketing calls or faxes that was included in the
federal Telephone Consumer Protection Act of 1991 and the federal
Telemarketing and Consumer Fraud and Abuse Prevention Act.  It also
would include the names and addresses of all entities identified by the
Public Service Commission as maintaining a comprehensive national
no-call database.

The PSC would promulgate rules to implement the proposed legislation.
It has been referred to the Transportation and Telecommunications
Committee.

INTERNET
MISSISSIPPI
Rep. Franks seeks to update child exploitation law for Internet age

Rep. Jamie Franks Jr. (D., District 19) has introduced a bill to
prohibit using the Internet for the sexual exploitation of children.  HB
1140 would ban the use of the Internet to transport visual depictions of
children engaging in sexually explicit acts.  The measure aims to
clarify section 97-5-33 of the Mississippi Code of 1972, which prohibits
sending or transporting sexually explicit images of children but doesn't
mention the Internet specifically.

An Internet service provider that wasn't aware of a subscriber's
violation of HB 1140 wouldn't be liable for the activity under the
proposed amendment.  HB 1140 also would prohibit using telecom devices
or the Internet to commit credit card fraud.  It has been referred to
the House Judiciary Committee.

INTERNET
MISSISSIPPI
Legislation aims to allow states to tax Internet sales

Sen. Clem M. Nettles (D., District 97) has introduced a concurrent
resolution to urge the U.S. Congress to allow states to tax Internet and
mail order sales.  HC 30 would ask Congress to end the moratorium on
Internet sales tax because of the tremendous growth in electronic
commerce over the past two years.

The resolution says e-commerce makes it difficult for states to
administer taxes fairly.  It contends that if the moratorium on Internet
tax continues, states might be forced to compensate for lost revenues by
overhauling their tax systems.

HC 30 has been referred to the House Rules Committee.

WIRELESS
OKLAHOMA
Bill would take wireless fee to the voters

A bill introduced in the House would authorize boards of county
commissioners to submit to voters the question of whether an E911
wireless telephone fee should be imposed on wireless telephone
subscribers.  The fee couldn't exceed 50 cents.

The proceeds of the fee would pay for the operation of emergency
wireless services.  According to the HB 1691, the Board of County
Commissioners would distribute the money to each public agency within
the county that has established a wireless emergency telephone service.

The bill also would call on the wireless carriers to collect the fee.
Rep. James Dunegan (D., District 21) introduced the measure.

TAXATION
MISSISSIPPI
Senate bill would raise tax on interstate telecom services

Sen. Hob Bryan (D., District 7) has introduced SB 2134 to raise the
sales tax on the provision of interstate telecom services from 5.5% to
7%.

The measure also would require that any money remaining in the
Telecommunications Ad Valorem Tax Reduction Fund at the end of the state
fiscal year that wasn't necessary to pay refunds to telecom providers
under the Mississippi Telecommunications Tax Reform Act go to the
state's general revenue fund.

It has been referred to the Senate Finance Committee.

WIRELESS
WYOMING
Verizon Wireless brings digital service to Cheyenne

Verizon Wireless has launched its digital service in Cheyenne, the first
city in the state to receive digital service from the company.
Previously Verizon Wireless offered only analog service in the area.
Marni Walden, regional president, plans to bring digital service to
other Wyoming communities later this year.

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

TR 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

Editor: George E. Brandon, E-mail: gbrandon@tr.com
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
Research Analyst: Brandi Kerns, E-mail: bkerns@tr.com
Account Services: Eileen Callahan (202) 312-6116, (202) 842-3023 (fax)
E-mail: ecallahan@tr.com