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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." 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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