The New York Public Service Commission voted 4-0 to clear a Frontier Communications action plan for emerging from bankruptcy. The telco submitted the plan in January required by the PSC in its October OK of the Chapter 11 reorganization (see 2010160044). It describes how Frontier will enhance service quality and network reliability. "We will have to remain very vigilant on this company in particular” to make sure they meet performance standards, said interim Chair John Howard at the commission’s livestreamed Thursday meeting. It exited Chapter 11 two weeks ago (see 2104300058). The approved plan includes $12.5 million for projects in 24 central offices identified as needing improvement, said the PSC. The company didn't comment.
Nebraska's Public Service Commission voted 4-1 to expand the state USF’s connections-based method for residential services to now include business and government lines. At another Tuesday meeting, the Oklahoma Corporation Commission delayed shifting to a per-line monthly surcharge from a revenue-based mechanism.
Broadband bills advanced in several states this week. The Arizona legislature passed a bill (HB-2596) authorizing the state transportation department to install telecom facilities on highways. The House voted 60-0 to concur with the Senate, which voted 30-0. The Ohio House voted 91-4 to concur with the Senate on a proposal (HB-2) to set up a $20 million state grant program for residential expansion, allow electric cooperative easements to be used for broadband, and set up a process for granting telecom companies access to electric co-op poles. Montana Gov. Greg Gianforte (R) received a bill (SB-297) from the legislature to set up an infrastructure funding program using American Rescue Plan Act and state funding. Lawmakers also sent him a bill (HB-181) to redirect 25% of $1 million in annual school technology funding to a state matching fund for the federal E-rate broadband program, and a measure (SB-81) to require prepaid wireless to collect state 911 fees.
Connecticut and Massachusetts are among states weighing digital ad taxes, after Maryland enacted one and despite industry lawsuits against that state. A proposed 5% Massachusetts tax on businesses making at least $25 million annually in digital ad revenue there is meant to remedy a “market failure right now with large data companies making billions of dollars off of people’s personal data” without appropriate compensation, Rep. Dylan Fernandes (D). He like others spoke in recent interviews. Tech and advertising industry groups say such state taxes are illegal and bad policy.
A Louisiana House panel spiked a bill to allow private suits against social media companies that delete or censor a user’s religious or political speech. At a livestreamed Monday hearing, Commerce Committee Chairwoman Paula Davis (R) joined the 9-4 vote to involuntarily defer the bill (HB-602) by Rep. Beryl Amedee (R) to allow users to collect up to $75,000 in damages from websites. It was involuntary because Amedee didn’t request deferment; the proposal may only be reheard if two-thirds of the committee supports it. Amedee said she personally experienced censorship when Facebook deleted the second half of her pastor’s sermon during the pandemic. The state may step in because the largest sites are monopolies and effectively acting as public town squares, she said. The legislation isn’t meant to spur much litigation but to push back against large platforms, she said. Democrats slammed the bill. “The fact that I have about $150,000 in law school debt shows me that this bill is unconstitutional,” said Rep. Kyle Green (D). Rep. Royce Duplessis (D) chided that he “didn’t realize” the First Amendment “extended to private entities.” Social media companies have a First Amendment right to moderate content, testified James Hines, Internet Association state government affairs director-southern region. “Companies are not perfect ... but they’re doing their best to be a place where ideas can flourish and where they also enforce community standards and promote a positive experience.” The bill doesn’t promote conservative or Republican values and “would have the unintended consequence of creating content cesspools,” said NetChoice counsel Chris Marchese. Allowing up to $75,000 in damages will incentivize litigation, he said. Chris Sevier, a national anti-pornography advocate seen in other state legislatures backing bills to require porn filters (see 1704120070), supported HB-602 and said the bill is constitutional. The Florida legislature passed a social media regulation bill last week (see 2104300059).
Big inmate calling service providers denied they have ICS monopolies, in Friday California Public Utilities Commission comments. Verizon and consumer groups said inmates can’t choose. Comments in docket R.20-10-002 were on a staff proposal to temporarily adopt FCC 2013 interstate ICS rate caps for intrastate rates, or any new caps the FCC adopts, until the CPUC adopts permanent rates. "That the result of the competitive RFP process results in a sole provider is no indication that ICS providers are monopolists empowered to charge excessive rates,” Securus commented. Global Tel*Link (GTL) said that “the market arises from competition between ICS providers to supply ICS to correctional facilities via a competitive bidding process conducted by the governmental bodies that oversee these institutions.” Verizon, which no longer sells ICS service, wrote that “given that inmates have no other options in service provider, there are certainly monopolistic characteristics.” Inmates lack choice but "the nature of the specialized service in issue distinguishes it" from utility monopolies, said PayTel. “Providers compete, vigorously, for the right to provide service to inmates in confinement facilities, and, in the absence of the agreement of the facility, have no right or ability to provide service to inmates.” The Californians for Jail and Prison Phone Justice Coalition noted a “duopoly,” with Securus and GTL controlling 82% of the market. Securus and GTL said they’re committed to lowering rates. High prices at some jails reflect a provider's internal costs and requirements of "correctional agencies for revenue in the form of site commissions,” Securus said. Intrastate rates above FCC interstate caps “are a consequence of the unique needs of correctional facilities, as determined by the governmental bodies that oversee them,” GTL said. The CPUC should “accord correctional facilities, and the governmental bodies that oversee them, the ‘wide-ranging deference’ necessary to execute the unique arrangements critical to institutional efficiency and security.” The California commission should reduce rates to 5 cents per minute for intrastate voice calls, less than the staff proposal, said the CPUC Public Advocates Office. Current rates in 132 out of 214 California jails are at or below the proposal’s 21 cents interim cap, but a 5 cents cap would benefit people incarcerated in 82 facilities, it said. Incarcerated people and their families told a commission hearing last week rates are too high (see 2104290034).
Florida’s comprehensive privacy bill failed Friday amid disagreement over a private right of action. HB-969 sponsor Rep. Fiona McFarland (R) looks “forward to continuing the good work on this complicated issue in the next session,” she wrote. Legislators passed SB-7072 Thursday to make it unlawful for social media sites -- other than theme park owners -- to deplatform political candidates. It requires sites to be transparent about policing users.
New York Gov. Andrew Cuomo (D) vowed to fight six telecom associations challenging the state for requiring all ISPs to sell a $15 monthly internet plan to low-income households. Claiming the program is preempted rate regulation, the New York State Telecommunications Association, CTIA, ACA Connects, USTelecom, NTCA and Satellite Broadcasting & Communications Association sued Friday in the U.S. District Court for Eastern New York (case 21-cv-2389). Industry is “turning a blind eye to the needs of its most vulnerable customers once again,” said New York Public Utility Law Project (PULP) Executive Director Richard Berkley.
A privacy bill with no private right of action passed the Florida Senate 29-11 Thursday. The Senate removed the ability for individuals to sue from HB-969 by amendment Wednesday (see 2104280054). The House must agree to the Senate’s changes before the bill can go to Gov. Ron DeSantis (R). While disappointed the Senate won’t allow private suits, Sen. Gary Farmer, who reportedly was replaced Wednesday as Democratic Senate leader, said the bill is a “good start.” Voting no, Sen. Jeff Brandes (R) complained that the Senate debated the bill Wednesday for only nine minutes. "Nine minutes on what could be the largest tax increase on businesses or regulatory burden on businesses that has ever come through this chamber." It's good the Senate removed the private cause, but the measure still allows class actions, Brandes said. It will inappropriately cover some businesses, which will be caught "like dolphins in a tuna net,” he added. Sponsor Sen. Jennifer Bradley (R) downplayed the cost to businesses, saying the bill mainly requires them to add opt-out buttons to their websites. The legislature ends session Friday.
California rates are too high for inmate calling services, which are a lifeline for incarcerated people and their families, the California Public Utilities Commission was told at a Wednesday hearing. Those incarcerated and their loved ones dialed in to share how ICS pricing disconnected families. Some suggested charging monthly rates for unlimited usage, while others want the calls free.