PROPOSED STATE BILLS FOR 2003 AFFECT REGULATORY POWERS, TAXES

Prefiled bill for 2003 Ind. legislature (SB-95) would authorize Ind. Utility Regulatory Commission to impose fines and take other actions to enforce state utility laws and its orders. IURC would be allowed to impose fine of up to $25,000 per violation, issue cease-and-desist orders or orders for corrective action and revoke intrastate operating authority of offenders. Agency also would be empowered to order utilities to provide or restore service to customers within 24 hours in emergency situations. Bill would authorize state Attorney Gen. to prosecute parties that didn’t obey IURC sanctions. Under current law, IURC must ask state courts to enforce its orders, rules and regulations because it has virtually no enforcement power of its own.

Two prefiled Utah bills would affect state telecom taxation. First measure (SB-22) would expand application of state’s telecom sales tax to include interstate, international and roaming wireless charges that are billed to Utah address. Bill also would dedicate portion of telecom sales tax collections to support state’s adaptive telecom equipment program for handicapped consumers, replacing current phone bill surcharge that supports program. Bill also would require that sales tax be applied to entire purchase price of bundled telecom services unless carrier separately identifies nontaxable components of bundle on customer bills or can identify in its books and records portion of total charge attributable to nontaxable components of service bundle.

Second prefiled Utah tax measure (SB-23) would authorize municipal govts. to levy telecom license tax by ordinance. Utah State Tax Commission would be able to collect, administer and enforce tax on behalf of municipality. But localities would have to exempt from local taxation any telecom product or service that wasn’t subject to state’s telecom sales tax.

N.C. Attorney Gen. Roy Cooper urged state lawmakers to move ahead with legislation in 2003 session to create state no-call telemarketing list even though FTC was in process of offering national no-call list. Cooper said FTC’s national list might not be able to stop telemarketing calls from intrastate sellers so state list was needed to close potential loophole. When FTC unveiled its national no-call list Dec. 18, it decided not to preempt state no-call list laws. It allowed states to have no-call programs that were stronger than federal one and to separately enforce no-call laws.

Pa. Gov. Mark Schweiker (R) signed antispam bill passed in final days of 2002 session. Under HB-2614, it will be unlawful to send unsolicited advertising messages to fax machines or to wireless messaging units unless recipient is established customer of sender. Bill also bans advertising e-mails that contain false, misleading or deceptive source addresses or subject lines. Penalty is $100 fine per offending message. Bill allows ISPs to block spam e-mails at will. Still pending on Schweiker’s desk is bill (HB-1331) that would require partisan balance on PUC by providing that no more than 3 members of 5-member PUC could be from same political party. Agency now is all-Republican. If signed, bill would prevent PUC Comr. Aaron Wilson from being appointed to another term in April.

Mich. Gov. John Engler (R) signed telecom tax bill (SB- 1238) that changes how telephone company property is assessed for tax purposes. Bill amends utility property tax law so telephone company property tax assessments will be made only on tangible real and personal property. Starting in 2005 tax year, quantifiable intangible assets that contributed to business’s value no longer will be taxed. Change was delayed to give local assessors time to make changes in assessment formula. Impact of new law isn’t clear because of various factors that could affect new assessments. Estimates are for tax collections to decline 5-30%, or $6-$45 million annually. Still on Engler’s desk is no-call telemarketing bill (HB- 4042) that would authorize Mich. PSC to establish state no- call list. But Dec. 18 decision by FTC to establish national no-call list might have made state bill moot. Bill would require establishment of list within 4 months of effective date unless federal govt. created national no-call list by that time.

Wis. legislative study panel considering broadband- related measures for 2003 session voted 9-2 against draft bill that would have required Wis. PSC to impose identical regulation on all providers of broadband service. Panel composed of lawmakers and private industry experts concluded legislation would have impaired PSC’s authority to regulate access to network elements of incumbent telcos used by broadband competitors. Study panel, on 7-4 vote, also opposed draft bill to deny PSC any jurisdiction over broadband services. Panel’s actions made it highly unlikely that either bill would be introduced.