A NONPARTISAN PUBLICATION FEBRUARY 9, 2001 ESSION VOLUME 18, NUMBER 6 Weekly SMINNESOTA HOUSE OF REPRESENTATIVES • PUBLIC INFORMATION OFFICE In this issue: TELECOMMUNICATIONS REFORM PLAN FEEDLOT AUTHORITY, REACTION TO TAX PLAN, AND MORE HF551-HF744 ESSION S Weekly Session Weekly is a nonpartisan publication of the Minnesota House of Representatives Public Information Office. During the 2001-2002 Legislative Session, each issue reports daily House action between Thursdays of each week, lists bill introductions and upcoming committee meeting schedules, and provides other information. The publication is a service of the Minnesota House. No fee. CONTENTS To subscribe, contact: IGHLIGHTS Minnesota House of Representatives H Public Information Office Bonding • 5 Energy • 8 Law • 10 175 State Office Building St. Paul, MN 55155-1298 Crime • 5 Environmnet • 8 Local Government • 10 (651) 296-2146 or Development • 6 Health • 8 Safety • 10 1-800-657-3550 Education • 6 Higher Education • 9 Taxes • 11 TTY (651) 296-9896 Elections • 7 Housing • 9 Transportation • 12 Director LeClair G. Lambert FEATURES Editor/Assistant Director At Issue: Agriculture — Farmers and legislators express concern regarding a Michelle Kibiger proposal to move oversight of feedlots from the Pollution Control Agency to the Department of Agriculture. • 13 Assistant Editor Mike Cook At Issue: Family — An aggressive action plan for early childcare and education in Art & Production Coordinator Minnesota grabs the attention of legislators at a House committee hearing. • 14 Paul Battaglia At Issue: Taxes — The public gets its first chance to comment on Gov. Jesse Writers Ventura’s tax plan, including its expansion of the sales tax to many services. • 15 David Maeda, Theresa Stahl, Jonas M. Walker, Mary Kay Watson People — Rep. D. Scott Dibble turns love for Minnesota and career as community activist into new role as state legislator. • 16 Chief Photographer Tom Olmscheid People — Rep. Ruth Johnson returns to the House after two-year hiatus with renewed commitment to education and the environment. • 17 Photographers Andrew Von Bank, Sara Kirk People— Rep. Connie Ruth draws from all the pieces of her life in the path that Office Manager led her to the state Legislature. • 18 Nicole Wood People— Rep. Matt Entenza takes a new role as House Minority Whip after two Staff Assistants years as assistant minority leader. • 19 Christy Novak, Michelle Sorvari Late action — House members take up Senate bill to provide $30 million in emer- Session Weekly (ISSN 1049-8176) is published gency heat assistance to school districts, but amend it to provide a sales tax rebate. • 20 weekly during the legislative session by the Min- nesota House of Representatives Public Information Office, 100 Constitution Ave., St. DEPARTMENTS/RESOURCES Paul, MN 55155-1298. Periodicals postage paid at St. Paul, MN, and at additional mailing offices. It’s A Fact: Perks of the Job 4 What’s on the Web: Streaming video 27 POSTMASTER: Send address changes to The 50 States: Retaining Committee Schedule (Feb. 12-16) 28 Session Weekly, Public Information Office, IT professionals 12 Reflections: The Sandager farm 31 Minnesota House of Representatives, 175 State Office Building, 100 Constitution Ave., Resources: Come to the Capitol 21 Minnesota Index: Minnesota vs. St. Paul, MN 55155-1298. Bill Introductions (HF551 -HF744) 23 Top States in Education 32 Printed on recycled paper which is 50% recycled, 30% post-consumer content. On the cover: The moon rises over the Capitol Quadriga Feb. 6. —Photo by Tom Olmscheid 2 February 9, 2001 IRST READING F because the cost of service is much higher in non-metro areas. Telecommunication reform Under the new plan, consumers above the Legislators hear a revised plan for lower costs, better average rate, generally rural consumers, would receive a subsidy to bring the cost down to the technology, and improved service average rate consumers in the state are paying. BY THERESA STAHL The subsidy would come from a “universal telecommunications reform proposal from the Ventura Administration service fund,” which collects a 5 percent ex- cise tax on any telecommunications service — promises better rates and more services for Minnesota consumers including long distance calls and wireless ser- A — residential and business, urban and rural. vices. The fund would be created by the bill. The bill (HF510), presented to the House Regulated Industries Commit- Mendoza said the excise tax would be added tee Jan. 29 and Feb. 5, is a revision of a telecommunications plan introduced after the hidden subsidies were removed, and consumers would benefit in the end. last year. Since then, Department of Commerce representatives have listened “It is more money in the pockets of con- to consumers across the state, met with tele- in the state, and for consumers to be able to sumers and less money in the pockets of phone companies and legislators, and used choose their own provider. monopoly carriers,” he said. that input in creating a plan for new telecom- “Telecommunications would be driven not The universal service fund will also pay for munications laws. by the whims of a monopoly, but by a vibrant a list of “essential services,” some that consum- The new bill, sponsored by Committee competitive marketplace,” said Anthony ers currently receive, and others that will be Chair Rep. Ken Wolf (R-Burnsville), calls for Mendoza, deputy commissioner of commerce. needed more and more as technology changes. standard statewide service, affordable local Most Minnesotans receive service by mo- They include: phone service, advanced services to anywhere nopoly carriers. Under the new plan phone • low-income assistance; companies would be deregulated, creating • Telecommunications Access for Communi- competition in the marketplace. cations Impaired Persons; The main initiative of the bill requires local • touch-tone; service providers to adhere to “universal ser- • 911 and E911 (“Enhanced 911,” i.e., tracing vice,” or meet certain standards of telecom- calls); munications service. With universal service, • access to operator services; hidden subsidies — access charges and rate • access to directory assistance; averaging — that currently exist in phone bills • toll-free Internet access; and would be erased. • a capital investment loan fund. Some small phone companies currently During the presentation to the committee, charge basic services below cost while mak- Wolf asked if the list, which includes about a ing up the revenue in access charges which are dozen services, seemed long. not regulated by the state. Access charges are “We’re trying to maintain what we have to- entrance and exit fees paid by long distance day at much less cost to ratepayers,” Mendoza companies to local service providers to origi- explained. nate and terminate long distance calls. The low The capital investment loan fund included costs for basic services make it impossible for in the list of essential services would provide a new company wanting to enter the market start-up funds for telecommunications com- to compete with them. panies wanting to begin business in Minne- For the benefit of small telephone compa- sota. The money, at low interest to borrowers, nies that have relied on these access charges, would help deploy advanced communications the new plan takes a “soft landing” by reduc- services such as high-speed Internet, especially ing the charges slowly over a five-year period. in rural parts of the state. Reduced access charges will also decrease the Communities that don’t have access to tech- cost of long-distance calls. nologies, notably high-speed Internet, are be- Rate averaging is the second hidden subsidy ing left behind, Mendoza said. “The loan is to PHOTO ILLUSTRATION BY ANDREW VON BANK to be eliminated. When rates are averaged provide infrastructure so Greater Minnesota A telecommunications reform bill intended to sim- under a monopolistic market, urban consum- is not always last in line for services.” plify the complicated telecommunications system Even with a low-interest loan incentive, in Minnesota, awaits action in the House ers help ease the cost to rural consumers, Regulated Industries Committee. Session Weekly 3 competitors could be intimidated from enter- ing the market. But the plan takes measures to protect new companies. Removing the rate averaging system, also called “deaveraging” by the department, would be completed by the end of 2002. Immediately after the deaveraging, rate caps would be set Perks of the job on basic voice services for two years to give 1919 speaker given “unusually lavish” gift the market time to adjust to the new prices. Following the release of the rate caps, the plan Rank definitely has its privileges in the Nolan’s political affiliations, including sup- calls for complaint-based regulation. House of Representatives. But the 1919 ses- port from Republican Gov. J.A.A. Burnquist, “There’s never been a real standard for when sion carried with it a special perk for then could have sabotaged his bid for speaker. In- a company is engaged in predatory pricing,” Speaker of the House William I. Nolan of stead, the five-term legislator and long-time Mendoza said. But now there would be. Minneapolis. member of the House Rules Committee was Predatory pricing occurs when a company At the end of the legislative session, the elected by an overwhelming majority of lowers their service or product prices below members of the House, along with several members. The vote was 105-23. other provider’s prices, thereby unfairly pric- staff members, gave In his book ing their competitors out of the market. Nolan a new, six- about the 1919 The Public Utilities Commission would cylinder touring car. Legislature, C. J. hear predatory pricing complaints and would Though literature Buell described have authority to order structural separation. about the 1919 ses- Nolan as a fair and The commission would also take consumer sion says Nolan was efficient speaker. complaints. This initiative addresses implica- very popular among “His actions tions of last year’s plan, which was accused of the House mem- were quick, and being over-regulatory, according to Mendoza.