C O M M I T T E E O N S T A T E A F F A I R S REPORT TO THE TEXAS HOUSE OF REPRESENTATIVES 77TH LEGISLATURE STEVEN WOLENS CHAIRMAN JEFF BLAYLOCK COMMITTEE CLERK C O M M I T T E E O N S T A T E A F F A I R S C O M M I T T E E O N S T A T E A F F A I R S TEXAS HOUSE OF REPRESENTATIVES P.O. BOX 2910 • AUSTIN, TEXAS 78768-2910 CAPITOL EXTENSION E2.108 • (512) 463-0814 • FAX (512) 463-6783 Steven Wolens Sylvester Turner Chairman Vice Chairman The Honorable James E. “Pete” Laney Speaker, Texas House of Representatives Texas State Capitol, Room 2W.13 Austin, Texas 78701 Dear Mr. Speaker and Fellow Members: The Committee on State Affairs of the 76TH Legislature hereby submits its interim report for consideration by the 77TH Legislature. Respectfully submitted, SIGNED SIGNED SIGNED Steven Wolens Sylvester Turner Leo Alvarado, Jr. CHAIRMAN VICE-CHAIRMAN SIGNED SIGNED SIGNED Kevin Bailey Kim Brimer David Counts SIGNED SIGNED SIGNED Tom Craddick Debra Danburg Paul Hilbert SIGNED SIGNED SIGNED Bob Hunter Delwin Jones John Longoria SIGNED SIGNED SIGNED Kenny Marchant Brian McCall Tommy Merritt Members: Leo Alvarado, Jr. • Kevin Bailey • Kim Brimer • David Counts • Tom Craddick • Debra Danburg Paul Hilbert • Bob Hunter • Delwin Jones • John Longoria • Kenny Marchant • Brian McCall • Tommy Merritt C O M M I T T E E O N S T A T E A F F A I R S C O M M I T T E E O N S T A T E A F F A I R S TABLE OF CONTENTS INTRODUCTION ........................................................ 1 SUBCOMMITTEE ON CABLE & BROADBAND .................................... 5 Overview of Broadband Technologies ........................................7 Cable Modems.......................................................8 Digital Subscriber Lines................................................9 Fixed Wireless......................................................10 Direct Broadcast Satellite ..............................................12 Open Access ...........................................................13 Summary of Testimony...............................................17 March 2 Hearing .................................................18 May 2 Hearing...................................................22 August 17 Hearing................................................25 Proper Classification of Cable Modem Service.............................33 AT&T Corp. v. City of Portland ......................................34 MediaOne Group, Inc. v. County of Henrico ............................37 Gulf Power Co. v. FCC ............................................38 Discussion ......................................................39 Determination of Preemption of State/Local Authority.......................44 In General.......................................................44 Specific Provisions................................................48 Policy Considerations ................................................57 Findings of the Subcommittee on Cable & Broadband ..........................66 SUBCOMMITTEE ON PRIVACY ............................................. 67 Overview of Federal Privacy Laws .........................................70 The Privacy Act of 1974 ..............................................71 Fair Credit Reporting Act .............................................72 Gramm Leach Bliley Act of 1999 .......................................73 Health Insurance Portability and Accountability Act of 1996 ..................74 Children’s Online Privacy Protection Act of 1998 ..........................76 Social Security Numbers..............................................77 Recent Federal Actions ...............................................79 REPORT TO THE 77TH LEGISLATURE # v C O M M I T T E E O N S T A T E A F F A I R S Privacy Laws of Texas...................................................80 Summary of Testimony...............................................81 March 28 Hearing ................................................81 July 21 Hearing ..................................................86 Other States’ Privacy Acts................................................90 Types of Information Covered..........................................91 Exceptions to Disclosure and Notice Required.............................92 Corrective Procedures and Remedies ....................................94 Recent State Actions .................................................95 Findings of the Subcommittee on Privacy ....................................96 SUBCOMMITTEE ON LOBBY INFLUENCE ..................................... 97 Regulation of Lobbyists .................................................100 Summary of Testimony..............................................100 Discussion ........................................................103 Registration ....................................................103 Codes of Conduct ................................................105 Campaign Activities ..............................................106 Reporting Requirements ..........................................106 Recent State Actions .............................................108 Standards of the U.S. Congress.....................................109 Revolving Door Laws ..................................................110 Summary of Testimony..............................................110 Discussion ........................................................113 Findings of the Subcommittee on Lobby Influence ............................114 SUBCOMMITTEE ON TELECOMMUNICATIONS ................................. 115 Status of Telecommunications Competition .................................116 Summary of Testimony..............................................117 March 2 Hearing ................................................117 May 10 Hearing.................................................121 PUC Implementation Activities ........................................121 Senate Bill 560 ..................................................121 Senate Bill 86 ...................................................127 House Bill 1777 .................................................130 Potential Impediments to Competition .....................................132 Summary of Testimony..............................................133 Issues Raised by Consumers Union..................................133 Issues Raised by Southwestern Bell..................................136 vi # REPORT TO THE 77TH LEGISLATURE C O M M I T T E E O N S T A T E A F F A I R S Issues Raised by CLECs ..........................................137 Issues Raised by AT&T...........................................138 Issues Raised by Covad...........................................140 Issues Raised by Teligent..........................................141 Iowa Utilities Board v. FCC ..........................................141 Bringing Competition to Rural Texas ......................................143 Summary of Testimony..............................................143 Discussion ........................................................145 Wireless Facility Siting .................................................146 Summary of Testimony..............................................147 Discussion ........................................................149 Findings of the Subcommittee on Telecommunications ........................152 OVERSIGHT OF AGENCIES UNDER THE COMMITTEE’S JURISDICTION ................ 153 Laws Passed by 76th Legislature..........................................153 Judicial Decisions, Federal Rules & Other Actions............................154 Open Records.........................................................154 Other Issues Requiring Attention..........................................154 APPENDICES ........................................................ 157 A:List of Abbreviations & Acronyms .....................................159 B:Telecommunications Timeline.........................................163 C:Ownership of Telecommunications & Media Corporations ..................167 D:Summary of Staff Briefing on Cable Open Access.........................195 E: Selected Texas Statutes Related to Privacy...............................201 F: Selected Provisions from Other States’ Privacy Acts .......................209 G: Status of Other States’ Legislation Related to Lobbyists .....................235 H: Summary of Telephone Bill Taxes, Surcharges & Fees .....................237 I: Index of Witnesses..................................................239 REPORT TO THE 77TH LEGISLATURE # vii C O M M I T T E E O N S T A T E A F F A I R S viii # REPORT TO THE 77TH LEGISLATURE C O M M I T T E E O N S T A T E A F F A I R S INTRODUCTION At the beginning of the 76th Legislature, the Honorable James E. “Pete” Laney, Speaker of the Texas House of Representatives, appointed 15 members to the Committee on State Affairs: Steven Wolens, Chairman; Sylvester Turner, Vice Chairman; Leo Alvarado, Jr.; Kevin Bailey; Kim Brimer; David Counts; Tom Craddick; Debra Danburg; Paul Hilbert; Bob Hunter; Delwin Jones; John Longoria; Kenny Marchant; Brian McCall; and Tommy Merritt, Members. On December 20, 1999, Speaker Laney assigned four interim charges to the Committee on State Affairs: 1. Study the authority of state and local governments to require cable television companies to provide access to competitors and to affect the rates, terms, and conditions under which access is provided. Consider the speed of change in the telecommunications industry and the implications of the state assuming new regulatory responsibilities in
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