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¿f,4-J FEDERAL TELECOMMUNICATIONS UPDATE Congressional action to rewrite the 1996 Telecommunications Act is limited at this point to a handful of hearings and small, private discus- sions among lawmakers. In the meantime, several legislative proposals addressing a variety of telecommunications and tax issues have been introduced. It is too earty to detennine which of the many vehicles will become the focus of discussion, but each proposal represents a likely issue that will be raised once Congress begins the rewrite in eamest. None of the bills introduced have seen any fonnallegislative action yet and it is ex- pected that no real action will begin until the next legislative session. It is our recommendation that city officials begin to gear up in their local communities on the issue of telecommunications and to familiar- ize themselves with the issues in these legisla- tive proposals. It is also our recommendation that city officials begin to articulate to congres- sional representatives the key issues in this debate for your community. This will help to set the stage for what promises to be an active legislative year in Washington DC. For the time being, we encourage city officials to state your positions on the different legislative proposals, but that any more pointed advocacy be placed on hold until the direction of Congress gets clearer next session. The key pieces of legislation in Congress for your review include the following: Franchise Agreement Preemption On June 30, Representatives Marsha Blackburn (R-Tenn.) and Albert Wynn (D-Md.) introduced H.R. 3146, the Video Choice Act of 2005, which \NOuld prohibit local governments from asserting franchise agreements over traditional telephone providers offering competi- tive video services. H.R. 3146 has been referred to the House Energy and Commerce Committee and has four cosponsors. A companion mea- sure, S. 1349, was introduced in the senate by Gordon Smith (R-Ore.) and John D. Rockefeller (0- W. Va.). S. 1349 has been referred to the Senate Commerce Committee and has no cosponsors. Municipal Broadband Rep. Pete Sessions (R-Texas), fonnerTexas District Manager for SBC, introduced the Preserv- ing Innovation in Telecom Act of 2005 (H.R. 2726) on May 26. The bill would prohibit municipal gov- ernments or groups affiliated with them from offer- ing telecom services if a telecom corporation already serves the city. No action has been sched- uled on the bill, nor does the bill have any cospon- sors. On June 23, Senators John McCain (R-Ariz.) and Frank Lautenberg (D-N.J.) introduced S. 1294, the Community Broadband Act of 2005, which would amend the 1996 Telecommunications Act to preserve and protect the ability of local govern- ments to provide broadband capability and ser- vices. Both senators (Sen. McCain is very senior on the committee) are on the Senate Commerce Committee and are expected to be very active in the rewrite of the 1996 Act. Internet Tax On April 19, Rep. Christopher Cox (R-Calif.) introduced the Intemet Tax Nondiscrimination Act of 2005 (H.R. 1684). Sen. George Allen (R-Texas) introduced a companion bill (S. 859) in the Senate with identical language. The bill \NOuld amend the Intemet Tax Freedom Act to make pennanent the ban on state taxation of Intemet access and on multiple or discriminatory taxes on electronic commerce. H.R. 1684 has been referred to the House Judiciary Committee and has 44 cospon- sors, including California Representatives Calvert, Eshoo, Herger, Lofgren, Radanovich, Dreier and Gary Miller. S. 859 has 10 cosponsors. On April 19, Rep. Christopher Cox also intro- duced the Intemet Consumer Protection Act of 2005 (H.R. 1685). The bill \NOuld amend the Internet Tax Freedom Act to make pennanent the moratorium on certain taxes relating to the Intemet and to Continued on Page 8 PAGE 4/PRIORITV FOCUS Visit the league's Official Websiteuwww.cacities,org .~. 1r