Agenda - 08-16-2005-5u - Laserfiche WebLink

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Gwen Harvey -IMPORTANT Information Regarding Cable Franchises! Page 3 which among other things, abolishes cable television franchises, slashes and puts into jeopardy cable television franchise fees. This is most far-reaching of several bills introduced over the last few months in the 1 t)9^th Congress.. If adopted, communities which negotiated franchises requiring future delivery of capital grants and payment of cash support for public, educational and government ("PEG") access channels would be particularly hard hit because these requirements of even existing franchises would be federally preempted. Also, the bill would allow no more than four PEG channels. The bill is significant because Sen, Ensign is chairman of the Senate Commerce Committee's sub-committee on technology, innovation and competitiveness and its ranking Democratic member, Senator John F, Kerry (D- Massachusetts), yesterday praised plans by Verizon and SBC to begin offering video services in competition with cable television and satellite companies. Verizon, SBC, and other telecommunications companies have lobbied against being required to obtain franchises. In a speech yesterday, Kerry said, "This decision [to offer service] provides a promise of enhanced competition in the video market," he said, without mentioning either company by name. "We should encourage the development and seek balance between competing interests." He was noncommittal on whether he would offer his own telecom legislation. "We'll see," he told reporters, noting that Ensign had already introduced a sweeping measure. During his speech, Kerry emphasized that affordable access to telecom services, consumer protection and increased competitiveness should be top priorities for lawmakers. "We have a moral obligation to get this right," he said of telecom reform because legislation will directly impact emergency responders and the level of access that inner city and rural citizens receive. Section 13 of the bill would preempt the State Constitutions, laws and any local ordinances requiring any video service provider to either (1) obtain a municipal franchise or (2) extend its system throughout a community. Franchise fees would be capped at five percent of gross revenues derived from video service subscribers, eliminating advertising and home shopping revenues from payments due to municipalities and would be paid only an annual basis, The language of section 13 puts what remains of franchises fees in further jeopardy by allowing municipalities to require video service providers "to pay a reasonable video service fee . ,for the purpose of compensating such local government for the cost that it incurs in managing the public rights-of-way by such provider" That language invites litigation. Furthermore, municipal plan review and construction-related fees currently applicable to video service providers digging in the public rights-of-way would be prohibited. Most provisions of the U.S. Cable Communications Policy Act of 1984, as amended, and existing franchises are preempted. The bill would abolish leased access channel and local emergency alert requirements, direct the Federal Communications Commission to re-write regulations with respect to customer service and consumer protection for enforcement, not locally, but by the state utility commissions.