SENATE COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT

 

 

January 27, 2005                                                                                                     Hearing Room B

1:00 P.M.                                                                                                                      Tapes  9 – 10

 

MEMBERS PRESENT:         Sen. Bruce Starr, Vice-Chair

Sen. Jason Atkinson

Sen. Ryan Deckert

Sen. Laurie Monnes Anderson

 

MEMBER EXCUSED:          Sen. Rick Metsger, Chair

 

STAFF PRESENT:                 Theresa Van Winkle, Committee Administrator

James Goulding, Committee Assistant

 

 

MEASURES/ISSUES  HEARD:       

                                                SB 13 – Public Hearing

                                                SB 14 – Public Hearing

                                                SB 15 – Public Hearing

                                                SB 16 – Public Hearing

                                                SB 17 – Public Hearing

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 9, A

003

Sen. B. Starr

Calls the meeting to order at 1:04 P.M.  Notes that Chair Metsger is attending to business in his district.  Opens a public hearing on SB 13, 14, 15, 16, and 17.

SB 13, 14, 15, 16, & 17 – PUBLIC HEARING

010

Sen. B. Starr

Welcomes Senator David Nelson.

015

Sen. David Nelson

Senate District 29.  Begins testimony in favor of SB 13, 14, 15, 16 and 17.  Hands out two maps demonstrating infrastructure changes across the state (EXHIBIT A and B). 

090

Sen. B. Starr

Thanks Sen. Nelson for his testimony and asks committee staff to explain the bills being heard.

100

Theresa Van Winkle

Committee Administrator.  Gives an overview of the bills being heard.  Provides summaries of SB 13, 14, 15, 16, and 17.

120

Sen. B. Starr

Asks for overview of proposed amendments to SB 17.

125

Van Winkle

Explains the SB 17-1 amendments submitted by Senator Nelson (EXHIBIT C).

130

Sen. B. Starr

Asks Chair Beyer to testify first.

140

Lee Beyer

Chair, Oregon Public Utilities Commission (PUC).  Begins discussion of bills being heard before the committee.  Talks about the changing role of the PUC in light of recent developments in technology.  Feels that new definitions are needed to address regulation issues.  Offers PUC opinions and potential changes to the bills. 

270

Sen. Atkinson

Voices a concern on SB 16 with the issue of increasing PUC’s oversight of broadband.  Asks for clarification on FCC regulations.

280

Beyer

Voices the FCC definition of data service as being interstate, and thus not subject to state regulation.

290

Sen. Atkinson

Clarifies that even if they passed a bill giving PUC additional power, it would be ineffective since it is federally regulated.

293

Beyer

Replies there are things the PUC can do to promote broadband, but they can’t regulate it.

295

Sen. Atkinson

Asks if they can tax it.

297

Beyer

Responds that they cannot.

300

Phil Nygaard

Administrator of Telecommunication, Oregon Public Utilities Commission.  States that the federal government has claimed broadband service for itself.  Explains that even if states passed broadband laws they would be preempted by federal rulings.

310

Sen. Monnes Anderson

Observes that landline based broadband can be regulated by the state.  Offers that wireless and broadband internet cannot be state regulated.  Points out Oregon’s essential needs for broadband.  Asks how they can assist improving competition and rates.

335

Beyer

Clarifies that they do not regulate landline broadband, only telephone-related internet connections.  Gives his overview of the changes to regulation of new technologies.  States that they’re attempted to foster the growth of the industry.  Describes the changes occurring in the industry related to the market and technology.

385

Sen. Monnes Anderson

Reiterates her feelings that broadband is essential.

390

Sen. B. Starr

Calls up the members of Oregon Telecommunications Coordinating Council.

410

Link Shadley

Vice-Chair, Oregon Telecommunications Coordinating Council (ORTCC).  Explains the makeup and functions of the council.  Testifies on ORTCC’s position on SB 13 and presents written testimony (EXHIBIT D).

TAPE 10, A

005

Shadley

Describes the intent of SB 13.  Talks about the need for infrastructure redundancy to provide uninterrupted service.  Begins discussion of SB 14.

035

Sen. Monnes Anderson

Asks if the PUC would be provided with data for broadband services.  Reiterates the need for broadband access in all areas of Oregon.

040

Shadley

Responds that they would not have to.  Replies that coverage is often available, but residents do not know about the service.  Discusses ways to get people interested and involved.  Begins reading his written testimony about SB 14 (EXHIBIT E).   Also presents written testimony on ORTCC’s opinion on SB 14 (EXHIBIT F).

115

Sen. Monnes Anderson

Inquires about the concept of universal service funds.  Points out a case involving AT&T.  Wonders if SB 14 would be thrown out in court judging by what has happened before.

125

Shadley

Replies he feels that the bill is not mandatory, but gives the PUC some authority to assist in the deployment of broadband.

140

Rob Myers

ORTCC.  Presents written testimony in regards to ORTCC’s opinion on SB 15 (EXHIBIT G).  Provides origins of Oregon Telecommunications Coordinating Council and outlook.

190

Sen. B. Starr

Thanks him for his testimony.  Points out Edwin Parker has been listening via telephone.  Asks Mr. Parker to testify.

200

Edwin Parker

ORTCC.  Testifies via teleconference.  Offers written testimony on SB 16.  Presents ORTCC’s opinion on SB 16 (EXHIBIT H).

280

Catherine Britain

Legislative Chair, ORTCC.  Begins testimony in support of the bills before the committee on the basis that technology can be a critical tool to improve health care. 

340

Sen. Monnes Anderson

Wonders about the status of the health subcommittee of ORTCC.

350

Britain

Replies that they will provide a report to her committee in February. 

375

Sen. B. Starr

Observes the list of those wishing to testify.  Notes the order in which they will present.

385

Brant Wolf

Oregon Telecom Association.  Presents written testimony in opposition to SB 13, 14, & 15 (EXHIBITS I, J, & K)

TAPE 9, B

005

Wolf

Continues testimony against SB 14 and SB 15.

025

Sen. Monnes Anderson

Agrees that competition should run the process.  Points out the local companies that don’t have affordable access to those services.

045

Wolf

Testifies in opposition to SB 16.  Notes his confusion over the intent of the bill.  Voices his support for SB 17.   

055

Sen. Deckert

Asks if he is a member of the telecomm council. 

057

Wolf

Acknowledges he was a member.

060

Sen. Deckert

Offers that they look for better solutions in providing rural broadband.  Wonders if is there a better way to accomplish both industry and community goals. 

075

Wolf

Responds that small towns are now getting high speed access.  Hopes that if SB 17 passes they will be able to sit down and work out the issues.  

100

Schelly Jensen

Regulatory and Governmental Affairs, Verizon.  Testifies in opposition to SB 13.  Discusses the problems with disclosure of proprietary information.

120

Sen. B. Starr

Asks if she would support the removal of that section of SB 13.

125

Jensen

Voices no objection to that.  Offers testimony in opposition to SB 14.  Testifies in opposition to SB 16.  Describes her confusion of SB 16 and the difficulties involved in implementing it.  Comments in favor of SB 17.

170

Sen. B. Starr

Asks who currently fills the other telecomm seat on the coordinating council.

175

Wolf

Replies the he fills one and that Mr. Shadley occupied the other seat on the council.

185

David Paulson

Governmental Affairs, Sprint, Hood River.  Expresses his concerns over the bills.  Testifies in opposition to SB 14, pointing out there are better ways to address the problem.

200

Sen. Monnes Anderson

Concurs with his ideas.  Wonders what other states have done.

210

Paulson

Replies that, in North Carolina, a fund was put together to assist deployment of broadband.  Notes the tremendous success of the program.

220

Sen. Monnes Anderson

Wonders if it would be considered economic development.

230

Paulson

Responds that it would be a way to assist economic development. 

245

Eileen Benner

Time Warner Telecom.  Comments the prior testimony has covered most of her concerns with the bills before the committee.  Offers testimony in opposition to SB 13, 14, 15 & 16.   Points out her support of SB 17.   

350

Sen. Deckert

Asks if wireless should be treated the same as other service carriers.

355

Benner

Replies they would like to see free competition with equal treatment. 

375

Sen. Deckert

Asks if Mr. Paulson has a position on this issue.

380

Paulson

Replies that it varies between service providers.

395

Christopher Tamarin

Telecommunications Coordinator, Oregon Economic and Community Development Department (OECDD).  Presents written testimony in support of SB 15 (EXHIBIT L). 

TAPE 10, B

005

Tamarin

Continues presentation of his testimony.

040

Sen. B. Starr

Asks for clarification of Mr. Tamarin’s role.

045

Tamarin

Replies that their department provides staff support to the council. 

050

Sen. B. Starr

Provides his feelings that there is poor coordination between private industries and the council.

055

Tamarin

Agrees that he would like to see private industry get more involved.  Remarks that involvement has been increasing.  Submits report of the Oregon Telecommunication Coordinating Council (EXHIBIT M).

070

Bill Pennhollow

Association of Oregon Counties.  Provides written testimony to the committee in favor of SB 13, 14, 15, 16, & 17 (EXHIBIT N).  Makes additional comments on the role of the council in the development of broadband.

130

Onno Husing

Director, Oregon Coastal Zone Management Association.  Remarks he is a member of ORTCC.  Offers his feelings that the council is very beneficial.  States he is in favor of further consideration of SB 13, 14, 15, 16, & 17

170

Sen. B. Starr

Concludes the public testimony. Closes the public hearing on SB 13, 14, 15, 16, & 17.

180

Sen. B. Starr

Adjourns the committee at 2:43 P.M.

 

 

EXHIBIT SUMMARY:

A.     SB 13, 14, 15, 16, & 17,map, Sen. David Nelson, 1p               

B.     SB 13, 14, 15, 16, & 17, map, Sen. David Nelson, 1p

C.     SB 17, -1 Amendments, Sen. David Nelson, 3 pp

D.    SB 13, written testimony, Link Shadley, 1 p

E.     SB 14, written testimony, Link Shadley, 11 pp

F.      SB 14, written testimony, Oregon Telecommunications Coordinating Council, 1 p

G.    SB 15, written testimony, Rob Myers, 1 p

H.    SB 16, written testimony, Edwin Parker, 1p

I.       SB 13, written testimony, Brant Wolf, 1p

J.      SB 14, written testimony, Brant Wolf, 1p

K.    SB 15, written testimony, Brant Wolf, 1p

L.     SB 15. written testimony, Christopher Tamarin, 3 pp

M.   Telecommunications Coordinating Council, Oregon, Christopher Tamarin, 88 pp

N.    SB 13, 15, 16, & 17, written testimony, Bill Pennhollow, 2 pp