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2001 Telecommunications LawsInformation Policy and Technology SeriesContents Also available in 
format
Please contact our Publications department if you would like to order a hard copy.
This report was developed for and under the auspices of the National Conference
of State Legislatures' (NCSL) Communications and Information Technology
Committee. The 2001-2002 officers are:
|
| Chair:
Senator Steve Kelley Minnesota Vice Chairs:
Representative Jeff Hatch-Miller
|
Staff Chair:
Daniel Schmidt Wisconsin Staff Vice Chairs:
James G. Gilles
|
This report was submitted for review to all Communications and Information Policy Committee members. Thanks go to all the individuals who took time to examine and comment on the publication. We also thank NCSL staff Leann Stelzer who edited the report.
The publication of this report was overseen by Jo Anne Bourquard, group director, Legislative Information Services program in Denver. Jeff Dale, policy specialist, Fiscal Affairs program in Denver, also contributed to the report.
Although others contributed to the report, any errors or oversights
are solely the responsibility of the authors.
Introduction
When President Clinton signed into law the Telecommunications Act of 1996,
state legislatures were at the forefront of change in state telecommunications
policy. That trend continued during the past five years. For example, more
than 250 telecommunications bills were passed in 2001, at least 100 more
than in 2000.
At least 36 electronic surveillance measures were considered before and after the events of September 11, and at least 13 states passed related acts. A significant number of state legislatures also passed measures dealing with the funding or establishment of 911 and enhanced 911 systems.
Telemarketing continued to be the focus of legislative attention in 2001. Nearly half the states require some form of licensing for telemarketers. In 2001, 18 states enacted additional regulations pertaining to telemarketing and consumer rights. Arizona and Virginia passed measures that regulate the time that telemarketers may call residents of the state. Colorado, Louisiana, Oregon and Wyoming created or modified state do-not-call list acts, bringing to 26 the total number of states with telemarketing laws.
Barely visible in states during 2001 (in contrast to previous years) was telephone card regulation-only North Carolina (H.B. 571) passed a measure. Many industry analysts predicted that rights-of-way issues would be at the forefront of telecommunications policy debates throughout the country in 2000 and 2001. Three states passed relevant legislation in 2000 and five states-including Arizona, Indiana, Kansas, Louisiana and Minnesota-passed such legislation in 2001.
Wireless text messaging in 2001 was considered in several states and
it likely will be the subject of state legislation in 2002. Currently,
marketing firms can send unsolicited e-mail messages by cellular telephones.
With more than 100 million wireless subscriptions in the nation this potentially
could become a national issue. Federal lawmakers have introduced legislation
that would make it illegal to send advertisements to a wireless telephone.
State legislatures likely will consider related legislation in 2002.
911
In the late 1960s, the President's Commission on Law Enforcement recommended
that an emergency telephone number be established. The number sequence
911 was established and saved by AT&T for this purpose. The Office
of Telecommunications Policy issued a national policy statement in 1973
that recognized the benefits of 911 and encouraged nationwide adoption
of this number. The first call on 911 was made on Feb. 16, 1968, in Haleyville,
Alabama.
Telephone companies currently are required to maintain a subscriber database that includes every assigned telephone number and the name, address and billing information for every subscriber. In most states, 911 operators are provided with guidelines and offered training in the procedures for responding to these calls.
In 2001, California (S.C.R. 31), recognized the importance of the 911 system by declaring May 14 through May 18 as "911 for Kids Week." Two states-Kentucky (H.B. 99) and Montana (S.B. 112)-provided for or clarified funding for the state 911 systems. Florida (H.B. 399) passed legislation that reenacts the state public records exemption for 911 information, and Illinois (H.B. 1694) required public service agencies to establish methods that ensure the confidentiality of the information. North Dakota (H.B. 1409) offers additional operator guidelines and Mississippi (H.B. 819) prohibits companies from not paying a salary to an operator who has not met minimum training standards.
Arizona, Arkansas, Illinois, Nevada, Oregon, Tennessee and West Virginia
also passed measures in 2001 that amend previous emergency telephone acts,
define emergency calls, fund emergency systems, provide emergency operator
training and regulate state emergency telephone agencies. For example,
Nevada (S.B. 569) requires counties to place surcharges on telephone services
in order to enhance county emergency telephone systems. West Virginia (H.B.
2329) authorizes a fee on the use of local exchange services for an enhanced
emergency telephone system.
Enhanced 911
The definition of 911 is inconsistent from state to state, and not
all areas of the country currently are served by a universal 911 telephone
number system. Enhanced 911 (or E 911) is an advanced emergency telephone
system that automatically provides selective routing to the closest public
safety answering point. Unfortunately, with the recent increase in availability
and use of wireless telephones, not all emergency calls can be traced to
the source of the wireless telephone. State legislatures addressed a variety
of these and other E 911 related issues in 2001.
Delaware (H.B. 283) passed legislation that provides funding for an
integrated wireline and wireless E 911 program. It provides for development
of an emergency system for the entire state. Montana (S.B. 112), Nebraska
(L.B. 585), New Mexico (H.B. 339), North Dakota (S.B. 2067), and Washington
(S.B. 5335) also clarified or provided funding sources, including surcharges,
for state programs. Illinois (H.B. 476) lawmakers exempted state correctional
institutions from the state's enhanced 911 provisions.
Broadband
Broadband access to the Internet is "always on" and provides data nearly
2,000 times faster than current dial-up modems. Some observers offer the
promise of this technology as a solution to closing the "digital divide."
A limited number of subsidies and tax credits have been offered to companies
that provide this technology. Now, more than 11 million households have
broadband service through cable television lines, satellite television
hook-ups or telephone wires that have been transformed into digital subscriber
lines. According to some industry analysts, 54 million homes will have
the service by 2006, even without state incentives.
Idaho, Kansas, Maine and Nebraska passed related broadband legislation
in 2001. The Idaho law provides credits for installation of broadband communications
equipment and for investing in counties with high unemployment or low personal
income. The Kansas law provides for establishment and maintenance of a
broadband technology-based network for hospitals, libraries and schools.
The Maine Legislature created the Telecommunications Working Group, which
is directed to establish the challenges and opportunities for deployment
of broadband technology infrastructure to all parts of Maine. Nebraska
(L.B. 827) provided funding to counties and municipalities to deliver broadband
Internet service, with particular emphasis on areas of sparse population
or remote areas. Alabama (H.J.R. 217) created the Digital Divide Coalition
Study Committee.
Cable Television
Early cable television systems were developed in the late 1940s
to improve reception of commercial programming in rural areas. Until 1992,
cable operators were able to set their own rates. State and local governments
now exercise sole or shared regulation of cable television rates and services.
Approximately 30,000 communities, 64 percent of all households, and 62
million subscribers currently receive cable television services.
Georgia, Utah and Virginia passed laws in 2001 that provide civil damages
for the theft of cable television services, limit municipality ownership
of the services, and regulate pole attachments owned by operators. Utah
(H.B. 149) enacted the Municipal Cable Television and Public Telecommunications
Services Act and restricted the authority of municipalities to own and
operate cable television and public telecommunications facilities.
Cellular Services
Cellular and personal communication service (PCS) technologies are the
most common wireless services currently on the market. Wireless communications
encompasses voice, data and paging services.
A significant amount of enacted state legislation dealt with cellular
services last year. A total of 20 states passed wireless communications
measures in 2001. A majority of the bills relate to wireless enhanced 911
surcharges or programs. For example, Delaware (H.B. 283), Nebraska (L.B.
585), New Mexico (H.B. 339) and Wyoming (H.B. 52) provided a funding source
or established surcharges for the administration of an enhanced 911 system
in their states. Maine lawmakers (L.D. 390) required telephone utilities
to implement enhanced 911.
Crime
In previous years, state legislatures addressed the theft of cable television
services and the manufacture of illegal telecommunications devices. States
provided for increased penalties for the distribution, sale or use of illegal
telecommunications equipment.
In 2001, states passed a variety of other measures. Delaware, North
Carolina and Texas provided penalties for interference with emergency telephone
calls. Delaware's law (S.B. 218) modernizes the state criminal code for
malicious interference, defined as calls that are designed to disrupt the
operation of 911 or other emergency call centers. Illinois lawmakers passed
legislation providing a Class 4 felony for individuals who manufacture,
sell or purchase or carry a firearm in the shape of a wireless telephone.
Deregulation
The term "deregulation" includes a variety of topic areas. State and federal
government agencies regulate telecommunications companies, as they do other
public utilities, including gas and electric companies. This regulation
can include level of rates for services, quality of services, and the appropriate
level of competition in the marketplace.
In 2001, state legislatures passed a wide variety of deregulation measures.
North Dakota and Oregon lawmakers passed "rate of return" legislation and
Maine authorized the state public utilities commission to grant regulation
exemptions to telephone utilities if the agency determines this will not
negatively affect competition in the state. Ohio (S.B. 235) redefined "basic
local exchange service" to include specific service elements for purposes
of alternative telephone regulation law. New Mexico (H.B. 658) granted
an exemption to telephone companies on certain rules regarding price caps
and subsidies. Arizona (H.B. 2447) granted an exemption from anti-trust
laws for certain telecommunications services.
Disabilities
To make universal access to telecommunications services possible,
a majority of states have provided funding for or encouraged companies
to provide services for those who are blind, deaf, speech-impaired or have
other disabilities.
Arkansas, California, Maine, Montana, Nebraska, Oregon, Texas and Washington
passed disability measures in 2001. For example, California (A.B. 219)
extended surcharges on intrastate telephone services in order to recover
the costs of providing telecommunications equipment capable of serving
the deaf and hearing impaired in the state. Maine (L.D. 1162) provided
rate reductions for intrastate calls made by deaf, hard of hearing or speech-impaired
people who use cellular or wireless service providers. Washington (H.B.
1884) required the Office of Deaf and Hard of Hearing to maintain a program
for telecommunications devices and services for hearing or speech impaired
people of school age or older.
Education
In 2001, continuing the trend of recent years, several states funded
or continued to fund telecommunications programs for the classroom. States
also regulated possession of pagers on school grounds.
California (S.B. 735) changed the date the state Education Telecommunications
Fund becomes inactive and increased the amount of money to be deposited
in the fund annually. North Dakota (S.B. 2251) established and provided
the duties for an educational technology council. Both Maryland (H.B. 67)
and Oklahoma (H.B. 1092) passed laws to prohibit portable pagers or wireless
telecommunications devices on school grounds.
Electronic Surveillance
State legislatures demonstrated an increased level of interest in
issues related to electronic surveillance following the events of September
11. Additional bills were pre-filed or were carried over for consideration
in 2002.
Florida (S.B. 12C) enacted a law that allows a judge to authorize the interception of communications for the purpose of an investigation involving aircraft piracy. It also permits a judge to authorize the Department of Law Enforcement to intercept certain communications relevant to an offense that is an act of terrorism or that furthers an act of terrorism. Oregon (S.B. 654) amended the circumstances under which a law enforcement officer may obtain part of a conversation by means of interception.
Arkansas (H.B. 2397) added "wireless communication" to the definition
of interception of communications law and also inserted a "one-party" consent
provision. Illinois (H.B. 888) passed a measure that allows the use of
an eavesdropping device by a law enforcement officer or agency. Oklahoma
(H.B. 1393) updated its laws regarding disclosure of information obtained
pursuant to a wiretap and added types of crimes for which evidence obtained
by a wiretap may be used. New York (S.B. 4299) passed a measure that permits
unauthorized recordings seized in connection with a criminal prosecution
to be preserved by court order for use as evidence in civil or other cases.
Maryland (H.B. 659, S.B. 310) law was amended to allow communications intercepted
in out-of-state jurisdictions in specified proceedings. Texas (S.B. 1345)
and Wyoming (S.B. 62) passed legislation addressing the use of pen registers
and trap and trace devices.
Infrastructure
State legislatures have played a critical role in establishing policy
to support an expanded and updated "information superhighway." However,
the private sector is responsible for establishing and maintaining a significant
amount of this country's telecommunications infrastructure.
In 2001, Massachusetts (H.B. 1753) passed a measure that requires the
installation and maintenance of additional telecommunications lines in
the Commonwealth. Oregon (S.B. 765) lawmakers created an interim telecommunications
coordinating council. The task force was charged with studying alternative
approaches to providing coordinated statewide, regional and local telecommunications
services. The measure also requires a study to determine how investments
can be coordinated between the public and private sectors and between local
and state governments. Wyoming (H.B. 273) required the state Department
of Administration and Information to provide telecommunications services
to private health providers through the state equality network infrastructure.
Non-Emergency Telephone
The numbers 211 and 311 have been considered by state policymakers as potential
non-emergency telephone numbers for use in the states.
New Hampshire (H.B. 707) lawmakers passed legislation in 2001 that establishes
a committee to study the use of 211 as a uniform community service information
and referral number. In Texas (H.C.R. 109), the Legislature approved a
resolution calling for the establishment of a 211 information and referral
telephone network to provide access to health and human services programs
in the state.
Public Utilities Commissions
In 2001, state legislatures passed various measures that either direct
state public service commissions to regulate telecommunications services
or grant these agencies additional responsibilities.
California (A.B. 870) required the public utilities commission to receive
records from individuals who use automatic calling equipment for telemarketing.
A Georgia measure (H.B. 200) changed the composition of the state public
telecommunications commission. Nevada (A.B. 661) exempted certain applications
from state public utilities commission hearings. Virginia (H.B. 1902) lawmakers
eliminated the requirement that the Commonwealth's commission conduct a
hearing on every application for a certificate to offer local exchange
telephone services. The bill also deleted obsolete language in previous
measures.
Rights of Way
In 1999, many industry analysts forecast rights-of-way issues would
be at the forefront of telecommunications policy debates throughout the
country in 2000 and 2001.
Three states passed relevant legislation in 2000, and five states-Arizona,
Indiana, Kansas, Louisiana and Minnesota-passed such legislation in 2001.
The Arizona (S.B. 1272) bill permits the state Department of Transportation
to lease highway right-of-way space for telecommunications lines and equipment
and also permits other governmental entities to lease space. Louisiana
(S.B. 143) lawmakers deleted the state requirement that industry participants
be involved with the issuance of rules and regulations concerning telecommunications
installations in state rights-of-way. Minnesota (S.B. 1821) regulated railroad
rights-of-way.
Slamming
Arkansas, Kansas, Massachusetts, Minnesota, Nebraska, New Hampshire, New
Jersey and New Mexico currently have "slamming" (the unauthorized switching
of a consumer's telecommunications provider) regulations in their state
statutes.
In 2001, Nebraska attempted to further regulate the practice of slamming
with passage of L.B. 389, which changed provisions of the state Telephone
Consumer Slamming Prevention Act and altered the powers and duties of the
Public Service Commission.
Taxation
The use of mobile telephones has increased significantly in recent
years. Problems with taxation of mobile services, however, have occurred
for consumers, companies, and state and local governments. The root of
these problems lies with sourcing-the determination of which jurisdiction
will have the right to tax the telephone call. Sourcing is especially challenging
when the mobile telephone user is traveling-or "roaming"-outside his or
her home territory.
Current state sourcing laws allow some mobile calls to be taxed by more than one jurisdiction and others to escape taxation entirely. These provisions also create administrative nightmares for both telephone companies and state tax administrators. In response to a proposal by states and industry, Congress passed legislation in July 2000 to address these problems. The Mobile Telecommunications Sourcing Act (MTSA) establishes a uniform method of sourcing. It also requires states to pass conforming legislation by August 2002 or lose the right to tax out-of-state roaming calls.
Fifteen states enacted MTSA conforming legislation during 2001. States
have used different methods to conform to the MTSA. For example, seven
states-Arizona, Arkansas, Iowa, Minnesota, Nevada, Oregon and South Carolina-referred
to the language of the MTSA in their state statutes. Six states-Florida,
Illinois, Louisiana, North Dakota, Oklahoma and Texas-chose to make a full
statutory amendment by including all the provisions and definitions of
the MTSA. California and Connecticut wrote shortened versions of the provisions
and definitions into their law and made references to the complete provisions
in the federal act.
Telemarketing / Consumer
Rights
Responding to increasing consumer frustration over persistent telemarketing
calls, many states have considered legislation to put a stop to these interruptions.
At least 26 states have passed legislation to require telemarketers to
cease calling individuals who have placed their names on "no call" or "do-not-call"
lists. Telemarketers who violate the law are subject to fines for each
violation. Florida has the most experience in this form of regulation;
its law has been in effect since 1990. Within one week of passing "do not
call" legislation in 2000, more than 180,000 New York residents had signed
the registry to block unwanted calls. As of September 2001, just less than
half the states require some form of licensing or registration for telemarketing
firms.
In 2001, 18 states enacted legislation pertaining to telemarketing and
consumer rights. For example, Arizona (S.B. 1254) and Virginia (H.B. 2427,
S.B. 1295) passed measures that regulate the time that telemarketers may
call residents of the states. Nevada (A.B. 337) made the use of threatening
or obscene language during a telemarketing call unlawful. Colorado, Louisiana,
Oregon and Wyoming created or modified state do-not-call list acts. Maryland
(S.B. 79) and Montana (S.B. 491) regulated the use of caller blocking devices
by telemarketing firms.
Universal Service
The Communications Act of 1934 established the concept of universal
service and defined it as making available " ... to all people of the United
States a rapid, efficient, nationwide and worldwide wire and radio communication
service with adequate facilities at reasonable charges." Since 1934, one
goal of public policy in this area has been to ensure the availability
of reasonably priced telephone service to Americans in both urban and rural
areas.
Four states-Arkansas, Montana, New Hampshire and Tennessee-enacted legislation
in 2001 pertaining to funding universal service in the state.
Videoconferencing
Several state legislatures in 2001 authorized videoconferencing
for purposes of holding meetings or as an alternative to in-court proceedings.
Colorado (H.B. 1210) authorized the use of telephone or other electronic
hearings when individuals have committed violations that may cause them
to lose their driver's licenses. Mississippi (S.B. 3001) permitted the
state Board of Commissioners of the Municipal Gas Authority to vote at
and participate in meetings by telecommunications or electronic means.
Montana lawmakers passed a measure (H.B. 496) that permits a party to appear
in pre-trial courts and small claims courts by telephone conference. Nevada
(S.B. 32) allowed the use of video testimony in grand jury hearings and
preliminary examinations in criminal proceedings under certain circumstances.
Miscellaneous
States also enacted legislation in 2001 on a variety of other telecommunications
issues, including radio communications and radio services.
Florida (H.B. 1815) and New Mexico (S.B. 695) passed laws that regulate
communications or radio dispatchers. Georgia (H.B. 168) regulated radio
common carriers, Idaho (H.B. 232) regulated radio operators, Minnesota
(S.B. 1154) enacted radio board requirements, and South Dakota (H.B. 1066)
passed a radio services measure.
Appendix. Bill Citations to
2001 Legislation
911
Arizona H.B. 2625; Arkansas H.B. 1480; California S.C.R. 31; Florida H.B. 399; Illinois H.B. 1694; Kentucky H.B. 99; Mississippi H.B. 819; Montana S.B. 112; Nevada S.B. 569; North Dakota H.B. 1409, Oregon S.B. 415; Tennessee S.B. 458; West Virginia H.B. 2329
Enhanced 911
Delaware H.B. 283; Illinois H.B. 476; Montana S.B. 112; Nebraska L.B. 585; New Mexico H.B. 339; North Dakota H.B. 2067; Washington S.B. 5335
Broadband
Alabama H.J.R. 217; Idaho H.B. 377; Kansas H.B. 2035; Maine L.D. 1632; Nebraska L.B. 827
Cable Television
Georgia H.B. 521; Utah H.B. 149; Virginia H.B. 1914
Cellular Services
Delaware H.B. 283; Maine L.D. 390; Nebraska L.B. 585; New Mexico H.B. 339; Wyoming H.B. 52
Crime
Delaware S.B. 218; Illinois S.B. 37; North Carolina S.B. 1004
Deregulation
Arizona H.B. 2447; Maine H.B. 849; New Mexico H.B. 658; North Dakota H.B. 1090; Ohio S.B. 235; Oregon H.B. 2659
Disabilities
Arkansas S.B. 396; California A.B. 219; Maine L.D. 1162; Montana S.B. 360; Nebraska L.B. 334; Oregon H.B. 2105; Texas H.B. 2345; Washington H.B. 1884
Education
California S.B. 735; Maryland H.B. 67; North Dakota S.B. 2251; Oklahoma H.B. 1092
Electronic Surveillance
Arkansas H.B. 2397; Florida S.B. 12C; Illinois H.B. 888; Maryland H.B. 659, S.B. 310; New York S.B. 4299; Oklahoma H.B. 1393; Oregon S.B. 654; Texas S.B. 1345; Wyoming S.B. 62
Infrastructure
Massachusetts H.B. 1753; Oregon S.B. 765; Wyoming H.B. 273
Non-Emergency Telephone
New Hampshire H.B. 707; Texas H.C.R. 109
Public Utilities Commissions
California A.B. 870; Georgia H.B. 200; Nevada A.B. 661; Virginia H.B. 1902
Rights of Way
Arizona S.B. 1272; Indiana S.B. 153; Kansas H.B. 2515; Louisiana S.B. 143; Minnesota S.B. 1821
Slamming
Nebraska L.B. 389
Taxation
Arizona H.B. 2542; Arkansas S.B. 309; California S.B. 896; Connecticut S.B. 2001; Florida S.B. 1878; Illinois H.B. 843; Iowa H.B. 736; Louisiana H.B. 1391; Minnesota H.F. 1; Nevada S.B. 563; North Dakota H.B. 1479; Oklahoma H.B. 1081; Oregon H.B. 2105, H.B. 3977; South Carolina H.B. 3885; Texas S.B. 1497
Telemarketing/Consumer Rights
Arizona S.B. 1254; California A.B. 870, S.B. 771; Colorado H.B. 1061, H.B. 1405; Illinois H.B. 2900; Indiana H.B. 1222; Kansas H.B. 2099; Louisiana H.B. 175; Maine L.D. 157, L.D. 314, L.D. 585; Maryland S.B. 79; Montana S.B. 491; Nebraska L.B. 165; Nevada A.B. 151, A.B. 337, S.B. 563; New Jersey A.R. 155; North Dakota H.B. 1093; Oregon H.B. 2212, S.B. 846; Texas H.B. 472; Virginia H.B. 2427, S.B. 1295; Wyoming H.B. 91
Universal Service
Arkansas H.B. 2570; Montana H.B. 564, S.B. 56; New Hampshire H.B. 402; Tennessee S.B. 1460
Videoconferencing
Colorado H.B. 1210; Mississippi S.B. 3001; Montana H.B. 496; Nevada S.B. 32
Miscellaneous
Florida H.B. 1815; Georgia H.B. 168; Idaho H.B. 232; Minnesota S.B.
1154; New Mexico S.B. 695; South Dakota H.B. 1066
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