Loading...
HomeMy WebLinkAboutLegislative Review - S1349 (Rockefeller) and HR 3146 (Blackburn) Franchise FeeCITY OF PALM DESERT Community Services Division Staff Report REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION ON S1349 (ROCKEFELLER) AND HR 3146 (BLACKBURN) AT ITS MEETING OF JULY 26, 2005 SUBMITTED BY: Patricia Scully, CFEE, Senior Management Analyst DATE: August 25, 2005 CONTENTS: S1349 and HR 3146 Language RECOMMENDATION: By Minute Motion, concur with the action taken by the Legislative Review Committee at Its Meeting of July 26, 2005, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to S1349 (Rockefeller) and HR 3146 (Blackburn) relative to franchise fees. EXECUTIVE SUMMARY: S1349 and HR 3146 are designed to benefit broadband, satellite, and other new communications technology companies. BACKGROUND: Current law allows local agencies to collect franchise fees for rights -of -way encroachments for cable television services. If passed, S1349 and HR 3146 would restrict or limit local government's ability to regulate and control other types of video, internet, and telecommunications services, even when public rights-of-wayn are utilized. In addition, the language of these bills would prohibit franchise agreements, therefore eliminating the tools cities use to collect franchise fees and manage their rights -of -way. While franchise fees would not specifically be prohitibted, no actual mechanism would be enforceable because the bills do not permit franchise agreements. While both bills recognize local authority over use of rights -of - way, the language prohibits local franchising authority and prohibits economic redlining by removing local enforcement. CITY COUNCIL STAFF REPORT RE: S1349 and HR 3146 AUGUST 25, 2005 Because the language of S1349 and HR 3146 removes local control of franchise fee collection for rights -of -way use, the Legislative Review Committee recommends that the City Council oppose both bills and direct staff to prepare a letter stating that position to appropriate legislators for the Mayor's signature. PATRICIA SC LY, CFEE I ACM/COMMUNITY SE PS:mpg CARLOS L. O EGA CITY MANA ER 2 Pagel of 4 THIS SF-IRCH THIS DOCUMENT GO TO Next Hit Forward New Bills Search Prev Hit Back HomePage Hit List Best Sections Help Contents Display GPO's PDF Congressional_Record Bill Summary & Di_play References Status Video Choice Act of 2005 (Introduced in Senate) S 1349 IS 109th CONGRESS 1 st Session S. 1349 Printer Friendly _DiSplay - 8,706 bytes.[Help] To promote deployment of competitive video services, eliminate redundant and unnecessary regulation, and further the development of next generation broadband networks. IN THE SENATE OF THE UNITED STATES June 30, 2005 Mr. SMITH (for himself and Mr. ROCKEFELLER) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To promote deployment of competitive video services, eliminate redundant and unnecessary regulation, and further the development of next generation broadband networks. Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the 'Video Choice Act of 2005'. SEC. 2. FINDINGS. Congress finds the following: http://thomas.loc.gov/cgi-bin/query/z?cl 09:S.1349: 7/26/2005 Page 2 of 4 (1) Cable rates continue to rise substantially faster than the overall rate of inflation. (2) Wire -based competition in video services is limited to very few markets. According to the Federal Communications Commission, only 2 percent of all cable subscribers have the opportunity to choose between 2 or more wire -based video service providers. (3) It is only through wire -based video competition that price competition exists. The Government Accountability Office has confirmed that where wire -based competition exists, cable rates are 15 percent lower than in markets without competition. (4) It is in the public interest to further wire -based competition in the video services market in order to provide greater consumer choice and lower prices for video services. (5) To spur competition in the communications industry, Congress has decreased the regulatory burden on new entrants, thereby increasing entry into the market and creating competition. (6) The United States continues to fall behind in broadband deployment rates. According to a recent study by the International Telecommunications Union, the United States is now ranked 16th in the world in broadband deployment. (7) The deployment of advanced high capacity networks would greatly spur economic development in rural America. (8) The deployment of advanced networks that can offer substantially higher capacity are critical to the long-term competitiveness of the United States. SEC. 3. AMENDMENT TO COMMUNICATIONS ACT. Title VI of the Communication Act of 1934 (47 U.S.C. 521 et seq.) is amended by adding at the end the following: 'PART VI --VIDEO CHOICE 'SEC. 661. DEFINITION. 'In this part, the term 'competitive video services provider' means any provider of video programming, interactive on -demand services, other programming services, or any other video services who has any right, permission, or authority to access public rights -of -way independent of any cable franchise obtained pursuant to section 621 or pursuant to any other Federal, State, or local law. 'SEC. 662. REGULATORY FRAMEWORK. '(a) Redundant Franchises Prohibited- Notwithstanding any other provision of this Act, no competitive video services provider may be required, whether pursuant to section 621 or to any other provision of Federal, State, or local law, to obtain a franchise in order to provide any video programming, interactive on -demand services, other programming services, or any other video services in any area where such provider has any right, permission, or authority to access public http://thomas.loc.gov/cgi-bin/querv/z?c 109:S.1349: 7/26/2005 Page 3 of 4 rights -of -way independent of any cable franchise obtained pursuant to section 621 or pursuant to any other Federal, State, or local law. (b) Fees- '(1) IN GENERAL- Any competitive video services provider who provides a service that otherwise would qualify as a cable service provided over a cable system shall be subject to the payment of fees to a local franchise authority based on the gross revenues of such provider that are attributable to the provision of such service within such provider's service area. '(2) CONSIDERATIONS- In determining the fees required by this subsection-- '(A)(i) the rate at which fees are imposed shall not exceed the rate at which franchise fees are imposed on any cable operator providing cable service in the franchise area, as determined in accordance with section 622 and any related regulations; or '(ii) in any jurisdiction in which no cable operator provides service, the rate at which franchise fees are imposed shall not exceed the statewide average; and ' (B) the only revenues that shall be considered are those attributable to services that would be considered in calculating franchise fees if such provider were deemed a cable operator for purposes of section 622 and any related regulations. '(3) BILLING- A competitive video services provider shall designate that portion of the bill of a subscriber attributable to the fee under paragraph (2) as a separate item on the bill. (c) Terms of Service- A competitive video services provider shall-- '(1) be subject to the retransmission consent provisions of section 325(b); ' (2)(A) carry, within each local franchise area, any public, educational, or governmental use channels that are carried by cable operators within such franchise area pursuant to section 611; or '(B) provide, in any jurisdiction in which no cable operator provides service, reasonable public, educational and government access facilities pursuant to section 611; '(3) be subject to the must -carry provisions of section 614; (4) carry noncommercial, educational channels as required by section 615; '(5) be considered a multichannel video programming distributor for purposes of section 628 and be entitled to the benefits and protection of that section; '(6) protect the personally identifiable information of its subscribers as required in section 631; ' (7) comply with any consumer protection and customer service requirements promulgated by the Commission pursuant to section 632; http://thomas.loc.gov/cgi-bin/query/z?c 109:5.1349: 7/26/2005 Page 4 of 4 '(8) not be subject to any other provisions of this title; and ' (9) not deny services to any group of potential residential subscribers because of the income of the residents of the local area in which such group resides. '(d) Regulatory Treatment- Except to the extent expressly provided in this part, neither the Commission nor any State or political subdivision thereof may regulate the rates, charges, terms, conditions for, entry into, exit from, deployment of, provision of; or any other aspect of the services provided by a competitive video services provider. ' (e) State and Local Government Authority- Except as provided in subsection (a), nothing in this section affects the authority of a State or local government to manage the public rights -of -way or to enact or enforce any consumer protection law.'. SEC. 4. REGULATION OF COMMON CARRIERS. Section 651(a)(3) of the Federal Communications Act (47 U.S.C. 571(a)(3)) is amended — (I) in subparagraph (A), by striking 'or' after the semicolon; (2) in subparagraph (B), by striking the period and inserting '; or'; and (3) by adding at the end the following: '(C) if such carrier is a competitive video services provider providing video programming pursuant to part VI of this title, such carrier shall not be subject to the requirements of this title but instead shall be subject only to the provisions of part VI of this title.'. SEC. 5. EXISTING FRANCHISE AGREEMENTS. Any franchise agreement entered into by a franchising authority and a competitive video service provider for the provision of video service prior to the date of enactment of this Act shall be exempt from the provisions of this Act for the term of such agreement. THIS SEARCH Next Hit Prev Hit Hit List THIS DOCUMENT Forward Back Best Sections Contents Display GO TO New Bills Search HomePage Help http://thomas.toe.gov/cgi-bin/querv/z?c 109:S.1349: 7/26/2005 Pagel of 4 THIS SEARCH THIS DOCUMENT GO TO Next Hit Forward New Bills Search Prev Hit Back H_omePage Hit List Best Sections Help Contents Display GPO's PDF Congressional Record Bill Summary & Printer Frien_Display_, - XML Display References Status 7,855 bytes.[Help] Display_ f Helpj Video Choice Act of 2005 (Introduced in House) HR 3146 IH 109th CONGRESS 1 st Session H. R. 3146 To promote deployment of competitive video services and eliminate redundant and unnecessary regulation. IN THE HOUSE OF REPRESENTATIVES June 30, 2005 Mrs. BLACKBURN (for herself and Mr. WYNN) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To promote deployment of competitive video services and eliminate redundant and unnecessary regulation. Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the 'Video Choice Act of 2005'. SEC. 2. ESTABLISHMENT OF VIDEO CHOICE REGULATORY RELIEF. The Communications Act of 1934 (47 U.S.C. 151 et seq.) is amended by adding at the end the http://thomas.loc.gov/cgi-bin/query/z?cI09:H.R.3146: 7/26/2005 Page 2 of 4 following new title: 'TITLE VIII--VIDEO CHOICE REGULATORY RELIEF 'SEC. 801. DEFINITIONS. '(a) Competitive Video Services Provider- For purposes of this title, the term 'competitive video services provider' means any provider of video programming, interactive on -demand services, other programming services, or any other video services, who has, pursuant to any Federal, State, or local law, any right, permission, or authority to establish or use lines in or across public rights - of -way, which right, permission or authority does not rely on, and is independent of, any cable franchise obtained pursuant to section 621. '(b) Other Terms- For the purposes of this title, any term used in this title that is defined by section 602 has the meaning provided by that section. 'SEC. 802. REGULATORY RELIEF. '(a) Redundant Franchises Prohibited- Notwithstanding any other provision of this Act, no competitive video services provider may be required, whether pursuant to section 621 or to any other provision of Federal, State, or local law, to obtain a franchise, in order to provide any video programming, interactive on -demand services, other programming services, or any other video services in any geographic area if the provider has, pursuant to any Federal, State, or local law, any right, permission, or authority to establish lines in or across public rights -of -way in such geographic area, which right, permission or authority does not rely on, and is independent of, any cable franchise obtained pursuant to section 621. ' (b) Fees- ' (1) FEES PERMITTED- Any competitive video services provider may be subject to the payment of fees to a local franchising authority, based on the gross revenues of the provider within the jurisdiction of such franchising authority, subject to the limitations of paragraph (2)• (2) LIMITS ON FEES- In determining the fees that may be required under paragraph (I) -- '(A) the rate at which fees are imposed shall not exceed-- '(i) the rate at which franchise fees are imposed on any cable operator providing cable service in the jurisdiction of the franchising authority, as determined in accordance with section 622 and any related regulations; or '(ii) in any jurisdiction in which no cable operator provides service, no more than the rate at which franchise fees could be imposed rate on a cable operator in accordance with section 622 and any related regulations; and ' (B) the only revenues that shall be considered are those attributable to services that would be considered in calculating franchise fees if the provider were deemed a cable operator for purposes of section 622 and any related regulations. http://thomas.loc.gov/cgi-bin/query/z?c 109:H.R.3146: 7/26/2005 Page 3 of 4 '(3) ITEMIZED BILLING PERMITTED- The competitive video services provider may designate that portion of the end user's bill attributable to the fee under this subsection as a separate item on the bill. ' (c) Regulatory Treatment- (1) OBLIGATIONS AND DUTIES- Any competitive video services provider shall -- '(A) be subject to the retransmission consent provisions of section 325(b); '(B) carry, within each local franchise area, any public, educational, or governmental use channels that are carried by cable operators within such franchise area, and, in any franchise area not served by a cable operator, provide reasonable public, educational or governmental access facilities pursuant to section 611; '(C) carry the signals of local commercial television stations as required by section 614; '(D) carry the signals of local noncommercial educational television stations as required by section 615; ' (E) not deny services to any group of potential residential subscribers because of the income of the residents of the local area in which such group resides; ' (F) be entitled to the benefits and protection of section 628; ' (G) protect the personally identifiable information of its subscribers in the same manner as is required of cable operators with respect to subscribers to cable services under section 631; '(H) comply with any consumer protection and customer service requirements promulgated by the Commission pursuant to section 632; '(I) be entitled to the benefits and protection of section 633; ' (J) be subject to the requirements of section 641; '(K) be subject to the prohibition on buy outs of or by the incumbent cable operator under section 652, and (L) not be subject to any other provisions of title VI of this Act. '(2) DETERMINATIONS OF LOCAL SIGNALS- For purposes of complying with paragraphs (1) (C) and (D), a competitive video service provider shall treat as local television stations with respect to a customer located within the jurisdiction of any franchising authority the same stations that are treated as local television stations for a cable system located within such jurisdiction. ' (d) Other Regulation Prohibited- Except to the extent expressly provided in this title, neither the Commission nor any State or political subdivision thereof may regulate the rates, charges, terms, http://thomas.loc.gov/cgi-bin/query/z?c 109:H.R.3146: 7/26/2005