BILL: SB 2042

SUBJECT: Allows Institutions of Higher Learning and every school district in the State to offer "videoconferencing and associated network services" to members of the public when no private provider is offering the service.

DESCRIPTION: The Information Technology Department is seeking permission from the legislature to begin offering videoconferencing to members of the public through its locations at colleges and universities, as well as high schools and other schools with State connections. The State would only be able to offer the service if "a private party is unavailable and the access does not inhibit future private provider service."

IMPACT ON INDEPENDENT TELEPHONE COMPANIES: Members of the Association believe that it would be a very bad precedent for the State of North Dakota to begin offering any type of telecommunications service to the public-at-large. Further, it would be impossible for any private provider to effectively compete against the State. The State does not pay any income a State income tax or a Federal income tax. They don't have to borrow money and the residents of North Dakota subsidize any losses. Additionally, there is no logical stopping point if the State begins to offer telecommunications service to the public, instead of being limited to State institutions. North Dakota can effectively argue that they should be able to provide any telecommunications service.

ASSOCIATION RECOMMENDATION: Oppose SB 2042.

January 13, 2003