Massachusetts lawmakers plan to weigh multiple net neutrality bills at a Telecommunications, Utilities and Energy Joint Committee hearing Tuesday, said an agenda last week. Net neutrality bills include H-2921, H-2927, S-1936 and S-1960. The U.S. Court of Appeals for the D.C. Circuit recently ruled state net neutrality policies aren't pre-empted by an FCC order (see 1910010018). The hearing also includes bills on double poles, prepaid wireless 911 fees, cable payments, telemarketing, truth in internet ads, RF safety, studying broadband competition and wireless infrastructure along rail lines. It starts at 1 p.m.
Verizon resisted allowing the use of Oklahoma USF money for broadband, in comments posted Thursday at the Oklahoma Corporation Commission in docket 201800066-PUD. “Using the OUSF to support broadband would raise potential legal concerns over assessing intrastate services to fund interstate information services over which the Commission has no regulatory authority,” the carrier said. “And before the Legislature even considers expanding the OUSF to fund broadband, it should wait until the FCC fully implements its [Connect America Fund] and revised Lifeline programs, as well as the new Rural Digital Opportunity Fund, all of which are intended to support broadband deployment and adoption in states including Oklahoma.” A better idea would be to use appropriated state general funds for broadband, like New York and Massachusetts did, Verizon said. Increasing state Lifeline contributions from 2 cents per month per subscriber to $10 per month in areas that don’t qualify for federal enhanced support, and $1 per month per subscriber in tribal areas that do qualify, could “substantially increase the size of OUSF,” so the Oklahoma agency should first study the possible fiscal impact, Verizon said.
Montana should condition Northwest Fiber’s buy of Frontier Communications' northwest region properties on Northwest's upgrading the network to match the FCC’s broadband standard, the Montana Consumer Counsel testified Thursday at the Montana Public Service Commission in docket 2019.06.039. Northwest is buying Frontier wireline, video and long-distance operations in Montana, Idaho, Oregon and Washington state, and competitors and consumer advocates hope the deal leads to better rural broadband (see 1910040023). Within five years of closing, Northwest should upgrade core network links to at least 1 Gbps, and in 10 years, the company should provide at least 90 percent of locations with minimum 25 Mbps download and 3 Mbps upload speeds, the Montana Consumer Counsel said. The counsel sought several other conditions, including that the acquirer continue to provide stand-alone voice service and meet state service quality standards, it said.
Nebraska phone companies and others supported state broadband grants and improved maps, but disagreed on details, in comments due last week on a Nebraska Rural Broadband Task Force draft report. The task force, planning to approve the report Friday, found Nebraska residents falling behind other Americans on broadband (see 1909270008). Government assistance is needed but no “unfair government subsidies” that create an "unlevel playing field,” CenturyLink commented Thursday. The state should develop a challenge process for state grants to ensure subsidies don't go to areas that already have broadband, it said. Broadband needs funding, but “reallocating funding from traditional voice support to broadband grants is simply robbing Peter to pay Paul,” the incumbent said. Windstream supported broadband grants that prioritize areas with less than 25 Mbps download and 3 Mbps upload speeds, the FCC’s definition of broadband. The Nebraska Farm Bureau disagreed with the task force proposal to define unserved as areas with less than 10/1 Mbps, and underserved as between that and 25/3 Mbps, saying the FCC definition should be the minimum everywhere. “While slow speeds are better than nothing, many next generation precision agriculture tools will require a more reliable and high-speed Internet connection as a minimum requirement,” the bureau commented Oct. 3. FCC maps likely overstate broadband coverage, agreed CenturyLink, Windstream and others. The Center for Rural Affairs suggested Nebraska establish a "Broadband Data Validation Program" to "empirically validate the accuracy of fixed broadband data collected by the FCC, and challenge the validity of such data on behalf of the State of Nebraska at least once per year.” The Nebraska Power Association urged Nebraska to update dark fiber leasing statutes. “Drafted at a time when there were fewer emerging technologies, the language and the process set forth is cumbersome and a hindrance to creative partnerships. Only one lease is in place and in 18 years, the Internet Enhancement Fund has only awarded 14 grants."
Consumer groups rejected telecom industry calls to take back California disaster relief requirements. Landline, VoIP and wireless providers last month filed three applications asking the California Public Utilities Commission to rehear its August decision requiring communications providers to adopt emergency disaster relief programs upon a declared state of emergency by the governor or the president when a disaster results in service loss, disruption or degradation (see 1909250022). The providers said they do that voluntarily. “There is a need for mandatory and enforceable requirements that allow the Commission to ensure that the public receives the emergency consumer protections ordered, and to ensure awareness, transparency and oversight for such protections,” The Utility Reform Network, CPUC Public Advocates Office, Center for Accessible Technology and the National Consumer Law Center said in a Tuesday response in docket R18-03-011, emailed Friday by the center. Providers “tend to file material that consists of high level responses that are short on specifics and details,” they said. Consumer groups disagreed with VoIP and wireless providers claiming federal law pre-empts the state from making rules for their services. “VoIP providers clearly offer telephone service, using telephone lines,” and in disasters, the CPUC may “exercise the state’s police power, which is not preempted by federal law,” the consumer groups said. There’s no definitive ruling on whether VoIP is an information service that states can’t regulate, and a recent 8th U.S. Circuit Court of Appeals ruling that it is information -- which could get Supreme Court review (see 1910090048) -- is “not binding in other Circuits and certainly not to a state commission outside the Circuit.” The Communications Act “is clear that providers of commercial mobile service are treated as common carriers under federal law, and that states retain their general authority to regulate these carriers even as they are specifically prohibited from regulating market entry or rates,” the consumer groups said. Customer protections don’t equal unconstitutional takings, they said. “The nature of the Decision’s regulation is temporary and designed to address the specific needs of a narrow group of customers for a relatively short period of time.” The rules don’t conflict with the California Emergency Services Act because the Act doesn’t provide for consumer protection for utilities customers after emergencies, they said. The California Cable and Telecommunications Association, representing a VoIP coalition, said industry’s three challenges “demonstrate clear error in such decision that should be promptly corrected on rehearing.”
California Attorney General Xavier Becerra (D) released draft rules to implement the California Consumer Privacy Act (CCPA). The AG office Thursday sought written comments on proposed regulations by Dec. 6, with hearings Dec. 2 in Sacramento, Dec. 3 in Los Angeles, Dec. 4 in San Francisco and Dec. 5 in Fresno. “By providing clear direction to businesses on how to inform consumers of their rights and how to handle their requests, the regulations will make it easier for consumers to exercise their rights,” said an accompanying statement. The law takes effect Jan. 1, but AG rules don’t need to be finalized until July 1 when enforcement begins. The office is moving to that summer deadline “as rapidly as we can,” said Supervising Deputy Attorney General Stacey Schesser Thursday at a news conference livestreamed from Sacramento. Proposed rules address notices to consumers of their rights, how to handle consumer requests, verifying consumers’ identities, protecting minors’ data and antidiscrimination and financial incentives, Becerra said. The regulations don’t consider state bills tweaking CCPA that await gubernatorial signature, Becerra said. If any are signed into law, “we will take a close look,” and the office can adapt rules to conform during the comment period, he said. “Fortunately, most of the proposals sitting at the governor’s desk are less ambitious than others” that failed to pass the legislature. Becerra would welcome more resources from the legislature for CCPA enforcement, said the AG, adding “we’re a very capable bunch.” His office tried to make “user friendly” rules for businesses, he said. “Ignorance is not an excuse for not complying.” Stakeholders are closely watching the rulemaking (see 1909200030). TechNet is reviewing and plans to comment on the draft rules, said Executive Director for California Courtney Jensen in a statement. Laws shouldn't stifle innovation, she said, so TechNet hopes the rules "will bring necessary clarifications to the law that were not made during the legislative session, and take seriously the burden of compliance and understanding."
Two towns sued by NCTA alongside the state agreed not to enforce a Maine cable law while it’s litigated in U.S. District Court in Bangor. NCTA in docket 19-cv-00420 is challenging a state law on public, educational and governmental channels and required extension of networks into rural areas (see 1909160027). NCTA, Maine and Freeport and North Yarmouth stipulated (in Pacer) Tuesday the towns may be dismissed as defendants. NCTA agreed not to deem them in breach of agreement not to enforce that law “as a result of any franchise renewal negotiations or if a request that a cable operator voluntarily agree to carry a [PEG] channel in high definition is made,” and that its member Comcast “will maintain the status quo regarding the placement and carriage of PEG channels in the Town of Freeport during the course of this litigation.” Attorney General Aaron Frey (D) is defending a law requiring cable a la carte (see 1910080026).
The House Commerce Committee's top Republican and TechNet raised alarm over an economic analysis of California Consumer Privacy Act costs. But the Berkeley Economic Advising and Research (BEAR) says costs “present a notable, but hardly insurmountable challenge." BEAR prepared the Aug. 15 report for the California attorney general (see 1909200030). Commerce Committee ranking member Greg Walden (R) Wednesday said the study highlighted the need for a federal privacy bill. TechNet Executive Director-California Courtney Jensen said Tuesday this shows CCPA "will not only cost billions for businesses to comply with, but small businesses and start-ups are likely to face higher compliance costs." The report estimated initial compliance costs at about $55 billion, about 1.8 percent of California gross state product in 2018, and estimated direct compliance costs $467 million-$16.5 billion over the next decade. CCPA “will have consistently positive net costs for the state economy, but the magnitude of these costs is negligible from a macroeconomic perspective.” That doesn’t count “considerable” benefits to protected consumers. Firms operating within California may have a competitive disadvantage to those operating only outside the state, but it’s small, the document said. “Previous legislation that was unique to California has in turn set national standards as firms find it easier to adopt California’s requirements to all products and services rather than provide differentiated services.” There’s “likely limited direct competition between firms that would be subject to the regulation and those that would not,” it said. The new law could “provide a future competitive advantage for affected firms that are required to come into CCPA compliance now by creating additional barriers to entry for future competitors considering entering into the California market,” it said. “If the CCPA is a precursor for future privacy regulations at the additional state or federal level, then firms already in compliance with the CCPA will have a competitive advantage.”
No federal law pre-empts Maine’s a la carte cable law, its Attorney General Aaron Frey (D) told a federal court Monday. Comcast and programmers are challenging the law mandating cable operators provide a la carte options, at U.S. District Court in Bangor (see 1909160027). Frey opposed the cablers’ motion for preliminary judgment Monday in case 19-cv-00410. Federal law pre-empts state laws that regulate programming content, but this law gives cable operators and programmers “complete discretion to select the channels and programs they will make available to subscribers,” Frey said. “Chapter 308 simply requires that once a particular channel or program is selected, it must be made available individually.” That's no conflict with pre-emption “because cable operators can easily comply with both Chapter 308 and the applicable provisions of federal law,” the Maine AG said. Plaintiffs wrongly claim “they have a First Amendment right to require customers to buy HGTV and Animal Planet in order to watch Discovery and to require customers to buy ‘NCIS’ and ‘Big Brother’ in order to watch ‘60 Minutes,’” he said. National and Maine broadcaster associations shouldn’t “worry,” Frey said in footnote 10. Amici broadcasters raised concerns viewership will drop if cable operators don’t have to carry signals in the federally mandated basic service tier, but the Maine law “does not impact this basic tier,” Frey wrote. “Before a person may request individual channels and programs, one must first become a subscriber. And becoming a subscriber necessarily means obtaining the federally-required basic tier of service, including local broadcast stations” and public, educational and governmental channels. “NAB supports and is gratified by the Maine AG’s interpretation," a spokesperson said.
The U.S. should make a national market for digital goods and services, the Information Technology and Innovation Foundation said Monday, releasing a report. “Achieving a digital single market will either require states to cooperate more on creating uniform laws or Congress to take a more active role in passing laws that preempt conflicting rules,” ITIF said. States and localities blocked digital commerce with restrictive licensing, conflicting rules and policies that benefit local incumbents over new entrants, ITIF said. It’s been a problem for data privacy, net neutrality and other areas, it said. “National rules promote efficiency and innovation, while ensuring uniform protections for all consumers,” said Senior Policy Analyst Alan McQuinn, the report’s author.