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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
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