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State Bills Address Deregulation, Privacy, Wireless, Video

State lawmakers are starting 2006 with a slew of bills on telecom deregulation and taxes, privacy, carphone safety, 911, telemarketing, video franchising and wireless issues.

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A Miss. bill would deregulate telecom services other than single-line basic exchange and switched access service. Under SB-2606, basic exchange also would be deregulated if sold in a bundle. The PSC would retain full complaint jurisdiction only over regulated basic exchange and access. On other services, the PSC’s complaint power would be limited to interpreting and enforcing service agreements; it couldn’t alter or reject contract provisions. Participation in complaint cases would be limited to plaintiff, defendant and their attorneys. For BellSouth, the bill would remove caps holding rate hikes on most services to 20% annually. For other incumbents, the bill would free them from rate-of- return regulation.

A Ky. bill (HB-337) proposes an alternative regulatory program incumbent telcos could opt into. The system would cap basic exchange for 12 months at the rate in effect on the date of election, allowing annual rate changes equal to the annual average Consumer Price Index. Rates for other retail services would be deregulated. The bill would preserve PSC control over consumer service and billing complaints, service quality, 911 and universal service programs. The bill, which wouldn’t affect the PSC’s wholesale jurisdiction, is in the Tourism, Development & Energy Committee. BellSouth already operates under an alternative regulation system akin to the bill’s, so its passage mainly would affect the other 18 incumbent telcos.

A Colo. bill (SB-91) would bar sale, purchase or disclosure of telecom customer account information without the customer’s prior consent. The bill would outlaw unauthorized possession of telephone account records with the intent to do harm to another person. It’s pending in the Senate Business, Labor & Technology Committee. An Ill. telecom privacy bill (SB-2486) would ban telecom service providers from selling or disclosing customer account information without the customer’s prior consent. Exceptions: Disclosures required by state or federal laws or regulations, or in response to court orders. Violations would be a civil misdemeanor.

Telecom tax bills include SB-103 in Colo., which would exempt equipment, fixtures, machinery and tools used directly to provide telecom service from sales and use taxes. The bill is in the Senate State, Veterans & Military Affairs Committee. A similar 2005 bill failed to pass. A wireless telecom tax bill in Miss. (HB-1356) would let cities and towns levy a 2% local gross receipts tax on wireless telecom providers. The tax would be based on gross receipts from customers whose billing addresses are located within a municipality’s borders. Providers could pass the tax along to customers. It’s in the House Municipalities & Public Utilities Committee. A N.J. Senate resolution (SR-22) urging Congress to repeal the U.S. telecom excise tax is in the Senate Economic Growth Committee.

More carphone safety bills addressing use by minors have appeared. The S.D. Senate Transportation Committee advanced a bill (SB-17) to bar holders of learner’s permits or restricted minor’s licenses from using any 2- way communications device while driving, except to report emergencies. Violations would be a civil misdemeanor. HB-1824 in Hawaii would bar drivers on a learner’s permit or minors on provisional licenses from using any kind of wireless phone while driving.

Parallel Ohio telemarketing bills (HB-470/SB-253) would require telemarketers to disclose on request the physical location where sales calls originate or the location where inbound sales calls are received. Violations would be deemed an unfair and deceptive sales practice. A Kan. junk fax bill would create a state “no fax” list, akin to the state no-call telemarketing list. HB-2599 would direct the Attorney Gen. Office to set rules and penalties for the no-fax list. It’s in the House Utilities Committee.

Another state has fielded statewide video franchising legislation. Parallel bills in the S.C. legislature (SB- 1053/HB-4428) would preempt municipal video franchising and authorize the Secy. of State to issue statewide video franchises. Municipal franchises already in effect would stay in place until expiration, but holders could apply for a state franchise to enter new markets. State franchise holders would have the right to access public rights of way, paying either the same municipal franchise fee as incumbents or 5% if there are no incumbents. They could recover franchise fees as a separate line item on customer bills. Franchise fees would be paid directly to each municipality in a provider’s service area. The bill would bar imposition of build-out requirements on state franchise holders. State video franchise holders would have to match the number of public access channels that incumbents provide. If no incumbent exists, they would have to provide 2 public access channels in rural markets and 3 in urban markets. Statewide video franchise bills are pending in several other states.

Other legislation includes a Neb. E-911 bill to double the E-911 surcharge to $1 monthly per line or number, and specify that the charge applies to any terrestrial, wireless, cable or Internet phone service able to connect with 911. LB-1222 would make the PSC responsible for setting standards for basic and enhanced 911 services and equipment, and require the PSC to name a 911 coordinator. It would limit rural counties to a single 911 answering point. The bill is in the Transportation & Telecom Committee.

An Okla. wireless tower bill (HB-2422) would make towers a permitted use in commercial and mixed-use zones, but limit tower height to 200 ft. and require at least a 50 ft. setback from property lines. Towers could be built in residential zones if on vacant land and at least 300 ft. from the nearest dwelling. Towers in residential zones would have to be removed within 12 months after they stop providing wireless service. Towers would have to be spaced a half-mile apart. The bill would allow mounting of additional antennas on any existing tower without restriction, but additional antennas couldn’t up tower height more than 20 ft. or make a tower higher than 200 ft.

A Miss. wireless service bill (HB-1254) would require all wireless service providers to make their service available statewide and to file an action plan with the PSC describing how and when they will meet the mandate. The PSC would have power to hold firms to their filed plans. Companies failing to file plans would face fines of up to $50,000. It’s in the House Public Utilities Committee. A Miss. wireless tower bill (HB-1103) would require wireless carriers to file an annual report with the House Public Utilities Committee giving the location of each wireless tower they own or share. The bill is in the House Public Utilities Committee.