960823.docx

MEMORANDUM
TO: BRETT DELANGE
FROM:DON HOWELL
DATE:AUGUST 23, 1996
RE:ADULT ENTERTAINMENT PAY-PER-CALL LEGISLATION
Following up on our conversation of yesterday, I am forwarding for your review a “marked-up” copy of the proposed legislation. I have only a couple of comments or suggestions.
1. 48-1102(2). You may wish to consider amending the definition of “information provider” in Section 48-1102. It appears that the definition of “information provider” was intended to exclude those telephone corporations providing “basic local exchange service” or “message telecommunications service” (MTS).  This presents two concerns.
First, by defining telephone corporations in terms of those providing local service or MTS, you may have inadvertently limited the exemption.   This occurs because “basic local exchange service” is presently defined as a service provided to customers with five or fewer lines.  See Idaho Code § 62-603(1) and (8).  It is possible that a telephone corporation can provide local exchange service to customers with more than five lines and not be excluded from the applicability of information provider.  Second, U S WEST intends to advocate in the upcoming legislative session that the definition of basic local exchange service for small business customers should be reduced from the existing five-line threshold to a single line.
If the intent was to exclude telephone corporations not controlling the content of the information services from the definition of information provider, then you might consider amending the second sentence to read simply “Any telephone corporation that provides basic local exchange service or message telecommunication service, as defined in section 62-603, Idaho Code, which transmits pay-per-telephone call service but does not control the content of the information transmitted is not included within this definition.”
2. Under the heading of FYI.  As  “wireless” local exchange technology is developed and deployed, it is foreseeable that local exchange service may be provided in an entirely “wireless” manner. Thus, “line” thresholds in “local exchange service” may be ambiguous.  In addition, wireless local exchange service is specifically excluded from the definition of “telephone corporation” currently found at Idaho Code § 62-603(10).  
3. E-mail or electronic contracts.  Finally, you may want to consider whether a “presubscription or comparable agreement” includes an E-Mail or an electronic contract.  I would assume that it does, especially in light of the fact that you can purchase adult entertainment per-call services by the disclosure of a “credit, prepaid account, debit, charge, or calling card number.” Query whether the definition should expressly include E-Mail or electronic contracts.
Don Howell
vld/M:Delange.dh