| STATE REPORT
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| The following is a summary of State regulatory documents filed, and
State regulatory action performed, by the Telecommunications Resellers Association (TRA) between mid-March and mid-April 1999. If you have any questions or would like a copy of any document discussed below, please contact Andrew Isar, Harbor Consulting Group Inc., at 253.265.3910. Many TRA state filings may be viewed at TRA's Internet web site, http://www.TRA.org. FILINGS Arizona - US West Communications, Inc.'s Compliance with Section 271 of the Telecommunications Act of 1996, Docket No. U-000-97-238, T00000A-97-0238 March 10, 1999 Responses to Staff's First Data Requests were submitted to the Arizona Corporation Commission Staff as part of the Commission's investigation into US West's compliance with Section. 271 of the Telecommunications Act of 1996 for in-region interLATA market entry. March 24, 1999 Supplemental Responses to US West's First Set of Data Requests were submitted to the Company as part of the Arizona Corporation Commission's investigation into US West's compliance with Section 271 of the Telecommunications Act of 1996 for in-region interLATA market entry. A copy of TRA's 1998 Member Survey was forwarded to US West, together with responses advising US West that the Member Survey was the only document in TRA's possession which referred to US West's services. California-Order instituting Rulemaking on the Commission's Own Motion into the Service Quality Standards for All Telecommunications Carriers and Revisions to General Order, Docket No. R.98-06-029. March 29, 1999 Joint comments were filed by TRA and the California Association of Competitive Telecommunications Companies (CALTEL) addressing whether additional service quality rules should be considered by the Public Utilities Commission. TRA and CALTEL argued that additional service quality requirements, if implemented, should be implemented only upon dominant telecommunications carriers. The Associations stressed that should the Commission decide to impose service quality standards upon competitive carriers, resellers should be exempt from the service quality rules to the extent that they must rely upon the ILECs to provide wholesale services and are unable to control the incumbents' network service quality. California-Rulemaking and Investigation on the Commission's Own Motion to Consider Adoption of Rules Applicable to interexchange Carriers for the Transfer of Customers Including Establishing Penalties for Unauthorized Transfer, Docket No. 97-008-001/97-008-002 March 18, 1999 Joint comments were filed by TRA and CALTEL regarding the proposed decision of California Public Utilities Commission Administrative Law Judge Maribeth Bushey in the Commission's slamming/cramming investigation. The Commission was urged to hold the proposed decision in abeyance pending further hearings, comments, and/or workshops before final disposition of several issues and promulgation of the FCC's final slamming rules. Georgia-Elimination of Tariff Filing Requirements for Resellers of Intrastate Interexchange Services and Alternate Operator Services Providers, Docket No. 3488-U March 24, 1999 Comments were filed with the Georgia Public Service Commission concerning the Commission's proposed mandatory elimination of tariff filing requirements for interexchange resellers. TRA urged the Commission to exercise its statutory authority to adopt a permissive rather than mandatory detariffing regime. TRA recommended that Commission allow resellers to file rate-specific tariffs or alternatively file tariffs containing maximum and minimum rates. TRA further urged the Commission to presume the lawfulness of tariffs filed by resellers under a permissive detariffing regime. Maryland-In the Matter of the Inquiry into Unauthorized Changes in Telephone Service Providers, Case No. 8776 March 25, 1999 Responses to Staff's Data Requests were filed with the Maryland Public Service Commission Staff as part of the Commission's slamming investigation. A copy of TRA's Comments filed with the FCC on March 18, 1999 pursuant to the FCC's Second Report and Order and Notice of Proposed Rulemaking in CC Docket 94-129, the FCC's slamming investigation, were provided to Staff as a part of TRA's Response. Missouri-In the Matter of the Application by SBC Communications, Inc., Southwestern Bell Telephone Company, and Southwestern Bell Communications Services, Inc., d/b/a Southwestern Bell Long Distance for Provision of In-Region InterLATA Services in Missouri, Docket No. TO-99-227 March 24, 1999 A Post Hearing Brief was filed with the Missouri Public Service Commission regarding Southwestern Bell's (SWBT) application for authority to provide interLATA service in Missouri. TRA argued that SWBT in-region interLATA market entry remains premature and contrary to the public interest. TRA noted that SWBT has not yet complied with its obligations under Sections 251, 252, and 271 of the Act. TRA specifically stressed that SWBT failed to meet the requirements of the Act's competitive checklist by impeding resale of telecommunications services, failing to provide competitor-requested recombined network elements and non-discriminatory access to operations support systems. TRA urged the Commission to find that these failures, among others, clearly supported rejection of SWBT's in-region interLATA market entry application. Michigan - In the Matter of the Commission's Own Motion, to Consider the Total Service Long Run Incremental Costs for All Access, Toll and Local Exchange Services Provided by Ameritech Michigan, Cause No. U-11831 April 1, 1999 Initial Comments were filed with the Michigan Public Service Commission in the Commission's investigation into Ameritech service costs. TRA's brief comments expressed the Association's intent to file reply comments. TRA's reply comments will primarily support competitive industry analysis of Ameritech cost studies. Montana-In the Matter of Proposed Amendment and Adoption of Rules Pertaining to Slamming, Docket No. L-99.1.1-RUL March 16, 1999 Comments were filed with the Montana Public Service Commission, proposing amendments to the Commission's proposed slamming rules. TRA's Comments generally commended the Commission developing rules which maintained consistency with the FCC's federal slamming rules. TRA urged the Commission, however, to amend its proposed third-party verification rule to include the federal provision prohibiting the third party verification ("TPV") provider from operating in the same physical location as the carrier or the carrier's marketing agent. TRA argued that addition of this provision would further strengthen this section by ensuring absolute independence of TPV providers from telecommunications carriers. Ohio-In the Matter of the Joint Application of SBC COMMUNICATIONS, INC., SBC DELAWARE, INC., AMERITECH CORPORATION and AMERITECH OHIO for Consent and Approval of a Change of Control, Case No. 98-1082-TP-UNC March 1, 1999 A letter was sent to the Ohio Public Utilities Commission advising the Commission that TRA continues to oppose the merger of SBC and Ameritech, and therefore opposes the stipulation entered into between the companies and the PUC Staff. Vermont-Petition of CTC Communication Corp. v. Bell Atlantic in re: Violation of the Resale, Docket No. 6121 March 18, 1999 A Letter was filed with the Vermont Public Service Board supporting the Vermont Department of Public Service's request for a policy prohibiting incumbent local exchange carriers from imposing a termination liability on contract service arrangements ("CSA") when assumed by competitive local exchange carrier resellers. TRA argued that, in the absence of an affirmative Board determination, Bell Atlantic could continue to impose termination penalties on other resellers, compelling further litigation or reseller withdrawal from the market, to Bell Atlantic's ultimate benefit and the public's determent. TRA urged the Board to grant the Department's request and establish an industry-wide CSA reseller assumption policy. Internal Revenue Service-Communications Excise Tax; Prepaid Telephone Cards [REG-18620-97] RIN 1545-AV63 March 16, 1999 Comments were filed with the Internal Revenue Service regarding the Service's proposed amendment to 26 CFR part 49, Facilities and Services Excise Taxes. TRA commended the Service for its development of streamlined rules that implement the straight-forward statutory excise tax obligations of prepaid telephone card carriers. However, TRA urged the Service to impose taxes solely on telecommunications services, and to amend its proposed tariff definition to encompass any filed tariff which establishes de facto interstate rates, in anticipation of FCC tariff forbearance. TRA further urged the Service to clarify rules governing transfer of the cards, and to establish face value of prepaid telephone cards in accordance with the method of transfer, rather than solely on the retail face value of the card, so that wholesale purchasers would not be unfairly taxed. LEGISLATIVE ACTIVITY Connecticut-General Assembly Substitute Bill No. 1299 A proposed legislation was presented to the Connecticut Legislature through the Connecticut Coalition For A Competitive Telecommunications Market, of which TRA is a member. The legislation, SB 1299, would ensure that any Connecticut Department of Public Utility Control (DPUC) ordered balloting process is implemented fairly, in a way that will allow all competitors to enter the market and bring the benefits of local competition to all of Connecticut's consumers. SB 1299 further establishes standards and guidelines for the DPUC in determining prices for access to the local monopoly public switched network, establishes an independent testing process to evaluate the sufficiency of these systems, and establishes strong enforcement provisions and penalties. New Mexico-House Bill 470/SB 408 March 17, 1999 A letter was sent by Mr. Kelly to the Governor of New Mexico to urge his veto of HB 470/SB 408, a US West backed reduced regulation bill. Mr. Kelly argued that the net effect of HB 470/SB 408 would be to prevent New Mexico consumers from realizing the benefits of competition, while according US West unearned regulatory flexibility. Mr. Kelly noted that U S West's bid for regulatory parity is premature in an environment when virtually all local competitors are at the mercy of US West. The Bill was vetoed by the Governor. REGULATORY ACTION Florida-Petition of Competitive Carriers for Commission Action to Support Local Competition in BellSouth Telecommunications, Inc.'s Service Territory, Docket No. 981834-TP March 25, 1999 Florida Members were notified of a conference scheduled by the Florida Public Service Commission to address a Petition filed by TRA, the Florida Competitive Carriers Association, AT&T, MCI, Worldcom and others, seeking Commission action to open Florida's local markets to competition. Illinois -Research was conducted regarding Ameritech's custom service arrangement resale prohibitions and the potential for an Illinois Commerce Committee investigation into contract "fresh look" regulation. New York -TRA member Network Plus was elected to the Board of New York's Targeted Accessibility Fund. The fund oversees budgets and industry participation in the state's universal service funding program. |