Telecommunications Reports presents . . . . . TR's State NewsWire
February 6, 2001 2 P.M. Edition


STATES
OREGON -- PUC doesn't need structural changes, according to report
MINNESOTA -- Democrats unveil privacy legislation
MISSISSIPPI -- UETA bill passes Senate
MINNESOTA -- Senate committee to discuss telecom bill this week
ILLINOIS -- Certain property purchased by carriers would be exempt from
tax under bill
TEXAS -- Bill would exempt certain fees from telecom sales tax
ARKANSAS -- Sen. Trusty aims to improve telecom network access for the
disabled
MASS. -- Representative aims to protect consumers from wireless phone
emissions
ALASKA -- GCI increases Internet backbone capacity



STATE & LOCAL GOVERNMENT
OREGON
PUC doesn't need structural changes, according to report

A legislative task force appointed by Gov. John Kitzhaber (D.) to study
the Public Utility Commission's structure has concluded that no
fundamental structural changes are necessary.  (11/22/00 a.m.)  The task
force, however, identified several concerns involving the commission's
processes and definition of roles, particularly the PUC staff's role.

The task force's report, which was submitted to the Legislature late
last week, stated that the staff's role "generated the most heated
exchanges and diverse opinions."  The task force said it found there was
"inadequate" distinction between the staff that presents testimony and
the staff that advises the commissioners.

The task force proposed that the PUC draw a "brighter line" between the
staff involved in promoting its side of a case and the staff assisting
the commission.  The task force proposed using methods such as (1)
gathering information through other means if technical assistance is
need in a contested case that can't be provided by a staff member who
isn't promoting a position and (2) adopting internal operating
guidelines as administrative rules.

The report's recommendations include (1) increasing the commissioners'
involvement in proceedings and (2) sending appeals of PUC orders
directing to the Court of Appeals.  The report is available at
http://www.puc.state.or.us/tforce/fullrpt.pdf.



CUSTOMER-AFFECTING
MINNESOTA
Democrats unveil privacy legislation

Several House Democrats have introduced HF 580 to require telecom
companies to obtain permission before selling or sharing customer
information.  The measure is part of the Democrats' privacy agenda for
this session; they also have introduced measures to protect financial
and medical privacy.

HF 580 would prohibit telecom companies from disclosing or permitting
access to customer information to or by any other person, except as
required otherwise by law or with the specific, express, prior consent
of the customer.  The companies could disclose customer information if
necessary to (1) initiate, render, bill, or collect for services; (2)
protect the rights or property of the telecom provider or other
customers; or (3) accommodate a government agency's request.

Before initially requesting customers for consent to release their
information and annually thereafter, a telecom carrier would have to
notify customers in writing of their right to control disclose or and
control access to their information.

If the Public Utilities Commission found it necessary to access customer
information to promote local competition, it could allow a carrier to
access a list of telecom services a customer subscribes to and the
characteristics and capabilities of telecom facilities used to serve the
customer.

HF 580 was referred to the House Commerce, Jobs, and Economic
Development Committee yesterday.  The Senate version of the measure, SF
565, has been referred to the Senate Telecommunications, Energy, and
Utilities Committee.



FUTURE OF REGULATION
MISSISSIPPI
UETA bill passes Senate

A bill designed to enact the Uniform Electronic Transactions Act (UETA)
has cleared the Senate.  SB 2678, sponsored by Sen. Neely C. Carlton
(D., District 22), aims to facilitate e-commerce by giving electronic
records and signatures the same legal effect as their pen and paper
counterparts.  (1/19/01 p.m.)

In addition to enacting the UETA, SB 2678 would repeal the sections of
Mississippi Code that make up the Digital Signature Act of 1997.



FUTURE OF REGULATION
MINNESOTA
Senate committee to discuss telecom bill this week

The Senate Telecommunications, Energy, and Utilities Committee has
scheduled a Feb. 8 hearing for a general overview of Gov. Jesse
Ventura's (Independence Party, Minnesota) proposed telecom legislation.
Either the bill's author, Sen. Steve Kelley (D., District 44), or a
Department of Commerce representative will make a presentation on SF
554, a legislative staff member told TR.  The meeting is scheduled for 1
p.m. in Room 15 of the State Capitol.

The committee doesn't want to "rush" the bill and likely won't take any
action on it until sometime in March, the staff member explained.
Action on the House version (HF 510) of the legislation isn't expected
until March either, a House staff member said last week.  (2/2/01 p.m.)



TAXATION
ILLINOIS
Certain property purchased by carriers would be exempt from tax under
bill

Rep. J. Philip Novak (D., Bradley) has introduced HB 539 to exempt
telecom carriers from the taxes required by the state's Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act for the purchase
of tangible personal property and its component parts.  The exemption
would be effective Jan. 1, 2002.

To receive the exemption, the property and its parts would have to be
used "directly and primarily in transmitting, receiving, switching, or
recording any interactive, two-way electromagnetic communications,
including voice, image, data, and information, through the use of any
medium, including, but not limited to, poles, wires, cables, switching
equipment, computers, and record storage devices and media."

The measure was referred to the House Rules Committee yesterday.



TAXATION
TEXAS
Bill would exempt certain fees from telecom sales tax

Rep. Carl Isett (R., District 84) has introduced a bill to ensure that
for purposes of the state sales tax, certain fees and assessments
wouldn't be included when the sales price for a telecom service was
imputed.  The exemption would occur only if those assessments or fees
were passed on to the consumer.

The fees and assessments that would be affected by HB 1025 are the
utility gross receipts assessment, the state universal service fund
assessment, the federal universal service fund charge, the telecom
infrastructure fund assessment, and any municipal franchise fee or
rights-of-way fee.

The portion of consumers' bills assessed for sales tax purposes wouldn't
include the various fees imposed by state, federal, and municipal
governments.  HB 1025 awaits committee referral.



CUSTOMER-AFFECTING
ARKANSAS
Sen. Trusty aims to improve telecom network access for the disabled

Sen. Sharon Trusty (R., District 12) has introduced SB 396 to expand an
existing program that provides telecom equipment to disabled
individuals.  The program currently provides access to public telecom
services for residents who are deaf, deaf and blind, hearing impaired,
or speech impaired.  SB 396 would expand the program to serve
individuals "who have other disabilities that impair their ability to
effectively access the telecommunication network."

The bill also would specify that the program "will enable these
individuals to access specialized devices or services for
telecommunication network access that is functionally equivalent to that
enjoyed by individuals without disabilities."  Equipment purchased for
the program would become the property of recipients after two years
under SB 396, whereas the equipment remains state property under current
law.

SB 396 has been referred to the Joint Committee on Budget.  Its text is
available at
http://www.arkleg.state.ar.us/ftproot/bills/2001/htm/SB396.pdf.



CUSTOMER-AFFECTING
MASSACHUSETTS
Representative aims to protect consumers from wireless phone emissions

Rep. George Rogers (D., New Bedford) has introduced a bill to require
wireless phones sold in the state to come equipped with "wave shields."
A wave shield is a device meant to prevent the phone's signal from being
transmitted into the user's head.  HB 1537 has been referred to the
Commerce and Labor Committee.



ADVANCED SERVICES
ALASKA
GCI increases Internet backbone capacity

General Communication, Inc., d/b/a GCI, has increased its Internet
connection capacity between Alaska and the lower 48 states by 33%,
increasing capacity from 135 megabits per second (Mbps) to 180 Mbps.
The company said that during the past year, its cable modem subscriber
base has grown 182%.  GCI today has more than 16,000 subscribers.

GCI provides cable modem service to the Anchorage, Fairbanks, Juneau,
and Valdez areas.



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