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Note: Even if HR5252 and S2686 are delayed this Congressional session, the Telcos are succeeding in getting what they want at the state level.

From: Technology Daily

States Taking The Lead On Telecom Law Overhaul

By Michael Martinez

(Monday, June 5) State lawmakers have not waited on their federal counterparts this year for legislation to overhaul existing telecommunications statutes.

The Bell telecommunications companies are still pushing Congress hard for a bill to speed their entry into the video market by allowing them to sidestep local governments and apply for nationwide franchises.

But the passage of a series of similar measures this year at the state level is already starting to change the game: Indiana, Kansas, South Carolina and Virginia have enacted legislation since the beginning of 2006 to streamline video franchising rules.

The new measures in Indiana, Kansas and South Carolina all establish statewide video franchising systems. The Virginia law speeds the franchising process without completely stripping local regulators of their authority on the issue.

The Indiana law also includes provisions to allow telephone companies to set their own prices after 2009.

And another video franchising measure is expected to be sent to New Jersey Gov. Jon Corzine later this month for final approval.

The New Jersey Assembly last month approved the bill, but procedural rules require the state Senate to reexamine provisions that would affect taxes on video services. A final state Senate vote on the bill could take place as early as June 19.

Also in the Northeast, AT&T might get more regulatory relief in Connecticut later this week, when the state Department of Public Utility Control rules on a draft decision that would allow the company to bypass the state's cable franchising rules.

The preliminary ruling approved last month classifies AT&T's video system as a data service, exempting it from rules that apply to the cable TV industry.

But there also have been setbacks for state-level proponents of telecommunications reform. Much to the dismay of the Bell companies, lawmakers failed to approve a statewide franchising measure in Florida this spring.

Action on dueling telecommunications measures lasted until the final minutes of the Sunshine State's legislative session, but the state House and Senate were unable to forge a compromise. State Rep. Trey Traviesa, a Republican who authored the House bill, has pledged to reintroduce the proposal next year.

A similar measure died in the Missouri Senate in March. Republican state Sen. John Griesheimer, the bill's sponsor, killed the measure himself after a large portion of his colleagues took sides with the cable industry on the franchising issue.

Franchising bills remain in play in a handful of states where legislatures are in still in session this year -- and a few of them are being discussed in states with sizable telecommunications markets.

A video franchising measure in California last week won unanimous approval in the state Assembly. But the bill could change significantly as it is considered by the Senate.

According to the Associated Press, Assembly Speaker Fabian Nunez, a Democrat, said he is open to amending the bill to allow incumbent video providers to opt out of their current franchising agreements with localities and obtain statewide franchises.

Lawmakers in Louisiana, Michigan and North Carolina also are weighing franchising reform measures. The Louisiana bill, which passed the state house in May, already has cleared a state Senate panel.

And in Pennsylvania, Republican state Sen. Dominic Pileggi Tuesday unveiled legislation to establish a statewide video-franchising system.