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AUGUST 2004

Grange's "Peoples Choice Initiative" will send a Clear Message to the Political Parties and the Government." in Washington State
Recently, the Washington State Grange collected and submitted more than 308,000 signatures to the Washington Secretary of State's office supporting the "People's Choice Initiative", I-872. I-872 would create a modified, "blanket primary" system for primary voting in Washington State, replacing the original statewide blanket primary method of voting in primary elections that had been in place for nearly 70 years. The original blanket primary system, which was also championed by the Washington State Grange in the 1930's, was found to be unconstitutional by the federal courts.

So called "blanket primaries" place the names of all the candidates for a particular elective office on the same primary ballot received by the individual voter on primary election day, regardless of the political affiliation of either the individual candidate or the individual voter. This allows the individual voter to select the best person to nominate for the office in the general election and not just the best person affiliated with a single political party. Under the original blanket primary system in the State of Washington, the top vote-getter among each of the political parties' candidates on the primary ballot went on to face the voters again as their respective party's nominees in the general election. However, the major political parties sued the State of Washington in federal court claiming that the old blanket primary system violated their constitutionally protected rights of freedom of association. The federal courts agreed with the political parties, essentially finding that it was unconstitutional for the state government to "compel" the respective political parties, as private, distinct associations of like minded citizens, to accept and support as the nominees of their parties, individual candidates who could be selected by majorities of voters who were either political independents or were voters affiliated with another political party.

In response to the federal court rulings, the Washington State Grange worked with the state legislature to reform the blanket primary system to address the constitutional concerns raised by the federal courts. The solution arrived at was a modified blanket primary, where all of the candidates for a particular office would continue to be on the primary ballot. However, instead of the top voted getter for each political party moving on to the primary election, now the top two vote getters in a primary election would move on to the general election, regardless of their individual party affiliation. Thus, under the modified blanket primary, the primary voters would no longer choose the nominees of the individual parties but would instead simply select the top two candidates to face each other in the general election. After furious lobbying by the Washington State Grange during this year's legislative session, the modified blanket primary system was passed by the state legislature. But at the end of the legislative session, the provisions establishing a modified blanket primary were stripped from the legislation when Gov. Gary Locke, who is not seeking reelection this year, exercise a line item veto to remove the modified blanket primary from the bill.

In response the Washington State Grange decided to attempt to "override" the governor's veto by taking the issue directly to the voters of Washington State on a ballot initiative this November. Under Washington State law, 197,734 valid signatures were required to be collected to place I-872 on the ballot. So by submitting 308,000 signatures, the Washington State Grange exceeded the minimum requirement of signatures needed to place I-872 on the ballot by more than 55%! As a result the Secretary of State's office has confirmed that the Grange has collected enough valid signatures to place this issue before the voters of the State of Washington. I-872 will appear on the November ballot in Washington State and will give the votes of that state a clear say in how candidates for public office are selected at the primary level and then advance to the general election. Opinion polls have indicated that the vast majority of Washington voters support the blanket primary system. However, supporters of the major political parties in Washington State still oppose the blanket primary system and would prefer to establish a primary system in that state that segregates voters by forcing them to choose among candidates of a particular political party during the primary election. The political parties are expected to work hard to defeat I-872.

In response, the Washington State Grange is organizing its own statewide campaign to convince the voters of Washington State not to surrender their rights to choose the best candidates in a primary election to the political parties when they come to the polls on election day this November. ""This sends a clear message," said Washington State Grange President Terry Hunt, "to the political parties and the government that the primary election process should represent the interest of the voters, not the agendas of the state or national political parties. Voters should not be required to affiliate with a party in order to vote. Our initiative will allow individuals to vote for the person, not the party. It will also provide the greatest degree of choice and competition in both the primary and general elections, rather than just one or the other." "The people of Washington State have rallied around this issue with a sincere passion," Hunt explained. "They know their freedoms have been stripped away from them."

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A New Bridge Across the Digital Divide
Today broadband Internet access is available to over 65 percent of the people living on metropolitan areas with populations of more than 250,000. But only about five percent of rural towns with populations less than 10,000 have access to broadband. However, thanks in part to the efforts of the National Grange, space age technology will help bring new cost-effective competition to the market for high speed internet service Ka-band satellite technology, which is capable of download speeds of up to 3 megabits per second (Mbps) and upload speeds of up to .5 Mbps (that is 25 times faster than 56k dial up), offers a solution for U.S. homes that would not have access to high-speed Internet service otherwise. Ka-band technology does not require infrastructure and is accessible to virtually every home and small business in the continental United States.

In the year 2000, the National Grange was instrumental in convincing the FCC to license Ka-band satellite technology in order to bring high speed internet service to remote and rural areas of our nation that are currently underserved by traditional Internet service providers such as DSL and cable modems.

kA-band satellite technology uses "spot" beam signals to cover areas as small as 200 miles in diameter. This allows the same satellite frequencies to be used across the country without interference, increasing subscriber capacity and lowering costs per user.

One such technology provider is Wild Blue Communications, which launched their satellite in late July. Wild Blue is a subsidiary of the National Rural Telephone Cooperative, a traditional leader in providing rural America with consumer owned telecommunications services. This technology would cost around $45 per month in rural areas of Colorado for example.

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Federal Program Leaves Rural Customers in Horse and Buggy on Information Superhighway
Imagine the uproar that would have arisen if, after Congress created the National Interstate Highway System, the federal agency in charge of leading that system had decided to spend all of the money in just 10 states.

It sounds like a ridiculous scenario, but that is exactly what is happening today on the Information Superhighway, where most rural communities are being left on the side of the road without an on-ramp.

The cost of providing telephone service to rural communities is generally much higher than it is in high-density urban areas. To address this disparity and to foster a national economy with telephone service for all Americans, Congress established the federal Universal Service Fund (USF) to ensure affordable, modern telephone services in rural areas where the cost of maintaining lines and facilities would otherwise be too high to justify private investment. The program is supposed to ensure comparable phone rates and services for high-cost rural areas, including such basic features as two-way phone lines, digital touch-tone service, access to long-distance operators, and 911 services. Almost all telephone customers pay into this program through a modest surcharge on their bills that is tied to their long distance usage.

Rural communities served by co-ops and small telephone companies receive their fair share of federal benefits. But under the USF program for communities served by large telephone companies - which serve about 70% of rural Americans -- the $277 million in annual federal support is being spent in just 10 states. Almost 90% of that funding is consumed by only five states. High-cost rural communities in 40 states receive zero assistance from this key component of the USF program. The list of excluded states includes many with significant high-cost rural areas, such as Arizona, California, Michigan, Nevada, New York, Pennsylvania, North Carolina, North Dakota, Oregon, South Carolina, Texas, and Washington.

And don't forget: Consumers in the 40 excluded states -- including rural families, farms and businesses -- contribute millions of dollars a year into this fund even though they receive zero assistance in return. For instance, California consumers contribute nearly $20 million a year into the USF account for large telephone companies that serve both urban and rural areas, but zero dollars come back to the rural California communities served by those carriers.

Why in the world are 40 of the 50 United States excluded from a federal program designed to hold down the cost of rural telephone service? It is because the Federal Communications Commission (FCC) devised a funding formula that is dramatically skewed toward a handful of states. Under current rules, the FCC decides each state's eligibility for aid based on the statewide average cost of providing telephone service. But as any math student can tell you, averaging tends to flatten out extreme numbers, which in this case represent the high-cost rural communities that the program is supposed to help. In other words, it doesn't matter to the FCC if the cost of phone service in a given community is 10 or 20 times higher than in urban areas. As long as the statewide average cost falls below an arbitrary threshold, that rural community is out of luck.

Fortunately, support is growing to fix this unfair program. The Universal Service Equity Act, proposed by Sen. Gordon Smith (R-OR) and Rep. Lee Terry (R-NE), would require the FCC to decide funding levels based on actual community needs, not statewide averaging. The bill would redistribute existing funds more fairly, without increasing federal spending or requiring new revenues. All rural high-cost communities would become eligible for support.

To date, more than 110 U.S. Senators and Representatives from both political parties have cosponsored these common sense solutions. And more than 80 independent groups and state leaders have called on Congress to act, including the National Grange and other ag/rural organizations, as well as groups representing consumers, business, labor, seniors, and state and local public officials from across the nation.

The US Senate Commerce Committee may vote before the November election on legislation to fix this key component of the USF. Everyone concerned about the economy in rural America should contact their elected representatives to urge a "yes" vote on the Universal Service Equity Act.

Time is running out. If Congress fails to pass legislation this year, thousands of rural communities will remain on the wrong side of the "digital divide." We must not wait, as some have proposed, for comprehensive telecom policy reform, which is likely to take years. Congress should not allow rural Americans to be saddled with a horse and buggy Internet

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Grange Comments on New Telephone Technology
The National Grange joined with the Alliance for Public Technology (APT), in submitting comments to the Federal Communications Commission (FCC) regarding a proposed rule to regulate a new kind of telephone service known as Voice over Internet Protocol (VoIP). VoIP is a new telecommunications technology that uses high speed, broadband Internet technology to make telephone calls as opposed to the circuit/switch technology that has been the basis of telephone operations since the days of Alexander Graham Bell.

In the comments to the FCC, the National Grange has called on the FCC to find an appropriate balance between minimal regulation that would spur increased access and deployment of this new telecommunications technology and the need to safeguard the public interest. The Grange comments further called on the FCC to ensure that all providers of telephone voice services, regardless of the technology over which the service is delivered, meet the same social obligations of universal service, disability access, public safety and consumer protections

The Grange's comments called for the FCC to adopt the following principles in drafting any final rule regarding VoIP telephone service:

  1. Regulations must be technology neutral.
  2. Carriers should be subject to social obligations regardless of service definition.
  3. Universal Service should apply to VoIP Services.
  4. VoIP Services Should Meet Obligations to Ensure Access by People with Disabilities
  5. VoIP providers should meet public safety requirements.
  6. FCC should require VoIP providers to meet consumer protection obligations.
  7. Regulations must promote access and deployment of telecommunications services, especially in rural areas.

The National Grange believes that VoIP will create vast new possibilities to enhance the way Americans communicate and participate in our political, economic, and civic life. As telecommunications evolves in the broadband world, we support public policies that ensure that all Americans reap the benefits from these new technologies by protecting programs that ensure universal service, access for people with disabilities, public safety, and other consumer protections.

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New Resolutions Will Set National Grange Policy in 2005
Its now the season for the National Legislative office to be receiving new resolutions from State Granges, which will be considered at the 138th Annual National Grange Convention to be held in Rochester, New York on November 9-13, 2004. This year we expect to receive more than 200 separate policy recommendations from 36 State Granges and Potomac Grange #1 in Washington D.C.

There is still time for your local Grange's policy resolutions to be part of this year's National Grange convention. Policy resolutions adopted by the National Grange delegates in November will form National Grange legislative policy for 2005. Local Grange resolutions must be adopted by their State Grange before being considered by the National Grange delegates. If your State Grange has not yet held its 2004 Convention, check with your State Grange Secretary to determine if there is still time for your local Grange's resolution to be adopted at your State Grange convention and then sent on to the National Grange convention in Rochester this November!

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View from the Hill Editors: Leroy Watson & Chilsook Hwang |

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