New State Laws Cover Deregulation, Muni Telecom Entry, Building Access, E-911

Governors around the U.S. have signed telecom bills on phone deregulation, municipal telecom entry, building access, wireless E-911 and other wireless services. And more legislation is pending on video franchising, competition and PSC powers.

Tenn. Gov. Phil Bredesen (D) signed a phone deregulation bill (SB-182) that deregulates retail rates for telecom service bundles. The new law retains the Tenn. Regulatory Authority’s jurisdiction over retail stand-alone service rates. The law also deregulates promotional rates for all retail services, provided promotions don’t extend beyond 6 months. Bredesen also signed a carphone safety bill (SB-36) that makes it a civil misdemeanor for any person on a learner’s permit or intermediate young-driver license to use a handheld mobile phone while driving, except in an emergency. Offenders face a $50 fine and a 90-day delay in the date they'd otherwise be eligible for an unrestricted license. The legislature sent Bredesen another telecom bill (SB-184) that would require the Tenn. Regulatory Authority to study how state policy could encourage telecom providers to promote technology advances and achieve business parity among the providers. The study would be submitted to the legislature by March 2006.

Colo. Gov. Bill Owens (R) signed a municipal telecom bill that would set certain conditions for municipal broadband entry, and prohibit municipal broadband service to customers outside the locality’s borders. The law (SB- 152) requires public hearings and a municipal voter referendum before a locality can provide broadband service to the public. The referendum requirement is waived in unserved communities if an incumbent provider has no near- term intent to provide broadband service. The law also grandfathers municipal broadband projects where substantial implementation action already has begun. Meanwhile, Owens vetoed a bill (SB-223) that would have created a new state authority to advise on development and funding of a statewide public safety radio communications system. The new agency was to be a vehicle for seeking federal grants and for evaluating the most efficient means of implementing the digital trunked radio system. Owens said the agency wouldn’t do anything for public safety and security existing agencies can’t do. He also said the bill would have conferred broad implementation powers to this entity without suitable accountability mechanisms.

S.C. Gov. Mark Sanford (R) signed a building access bill (HB-3840) that bars any kind of right-of-way or building access agreements between telecom carriers and property owners that limits other carriers’ ability to access the property. The new law also prohibits carriers from offering property owners any incentives to refuse or restrict other carriers’ access to the property. Violators face a $5,000 fine per offense. The new law explicitly includes VoIP and video service providers within its protections. It also relieves incumbents of their carrier-of-last-resort obligations to serve multi- tenant properties whose owners discourage competing providers to install facilities.

Okla. Gov. Brad Henry (D) signed a wireless E-911 bill (HB-1751) that will give rural counties more time to implement wireless E-911 systems. Under old laws, counties had to deploy wireless E-911 within 24 months after starting to collect the surcharge on phone bills. The new law gives 36 months for counties with populations under 30,000. The new law also lets wireless carriers recover E-911 implementation costs from customers through surcharges or “any other lawful means.” The Fla. legislature passed a bill (SB-620) to prohibit local govts. from using revenue from 911 phone bill fees to support “311” systems or any other non-emergency calling system. The measure sent to Gov. Jeb Bush (R) also would give local governments authority to review the placement, construction or modification of wireless facilities needed to provide wireless E-911 service. It also would require counties to set up separate accounts for funds from wireless E-911 surcharges and would provide for state grants to rural areas to upgrade or install wireless E-911 systems.

Conn. Gov. Jodi Rell R) signed a wireless bill (SB- 1283) making it a misdemeanor for anyone to possess a mobile phone within jails or prisons without explicit permission from corrections authorities. The new law also makes it illegal to pass a mobile phone to an inmate, even outside the grounds. N.H. Gov. John Lynch (D) signed a taxation bill (SB-117) that requires property tax appeals by telecom, energy and other utilities to be heard first by the state Dept. of Revenue Administration before the matter can be taken to the Board of Tax & Land Appeals and the state courts. Previously, assessment appeals went directly to the tax board and/or the courts.

Neb. Gov. Dave Neineman (R) signed a public safety communications bill (LB-343) that will reform the state advisory panel on public safety wireless communications infrastructure. The new law dissolved the old Public Safety Wireless Communications Board, creating a new Regional Interoperability Advisory Board. The old board was to develop specific proposals for ensuring compatibility among wireless communications systems of all public safety agencies, but the state found it didn’t have enough money to do so. Besides serving more as a clearinghouse for communications technology developments, the new agency will develop a long-range plan for an eventual overhaul of the public safety communications infrastructure. The new agency will sunset at the end of 2008.

In pending legislation, Verizon’s hopes for a bill that would move video franchising from municipalities in N.J. to the state level may have dimmed. Verizon had hoped to see introduction soon of statewide video franchising legislation, possibly as early as this week, but lobbyists said the issue may have become a political football in budget negotiations between key lawmakers and Acting Gov. Richard Codey (D). Lobbyists also said the proposed legislation has drawn the ire of Comcast, the state’s largest cable company, and some N.J. cities. Meanwhile, some lawmakers questioned the wisdom of taking up a politically touchy issue like video franchising during a major state election year when the governor’s office and many legislative seats will be contested. Verizon said any delay in introducing its legislation would serve entrenched cable interests: “Statewide franchising will speed up the day that New Jersey consumers have another choice while also providing more revenue for municipalities.” SBC made like arguments in Tex. in a failed bid this year to get statewide video franchising legislation passed there.

The La. Senate passed a municipal broadband bill that would free incumbent cable or broadband service providers from municipal franchise or ordinance obligations -- such as fees, public access and build-out requirements -- if the municipality becomes a competing service provider. The measure (SB-126) also would require approval of local voters before a municipality could enter the market. That approval could come either by a direct question or by a bond-issue referendum to finance the project. The bill is pending in the House Commerce Committee, where it’s due to be heard June 13. The legislature is set to adjourn June 23.

The Conn. Senate made major changes to competition legislation (SB-1097) addressing how regulators determine whether a telecom service is competitive enough for rate deregulation, before passing it on to the House. The bill would give the Dept. of Public Utility Control 90 days to decide on petitions to declare a service competitive. The agency would have to decide based on the number of competitors, availability of functionally equivalent services and any barriers to competitive entry. The bill in its original form would have made the test for competition the presence of 3 rivals to the incumbent in a market, including intermodal competitors like wireless, cable or VoIP providers.

The Mich. Senate passed a bill (SB-551) that would eliminate a July 1 sunset date on the PSC’s power to issue rules. The PSC’s authority is tied to the Mich. Telecom Act, due to expire at year’s end, but the PSC would have lost its rulemaking authority early as the incidental byproduct of amendments growing out of litigation over the original law’s treatment of service quality. This bill would let the PSC keep functioning while the legislature continues deliberations on a new telecom statute.