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LEAGUE CONCERNS WITH AB 2987 (NUNEZ) The League of California Cities has a number PEG Channels and PEG Support. Local of concerns with AB 2987 (Nunez). Those con- agencies would lose control over the determina- cerns are: tion of the number of public, education and gov- ernment (PEG) channels needed to properly meet Build Out of Telecommunications Ser- a community's needs. vices. We are concerned that the build out provisions in AB 2987 will not ensure that video Public Rights-of-Way. It is not clear that local services will be equally available throughout a communities would retain their full control over community. The bill allows video service provid- access to local right-of-way. The League believes ers three years to build out video service, and to that the taxpayers' investment in the public right- self-define the area they will service. of-way must be protected with clear city authority over access to the right-of-way. While they are prohibited from discriminating on the basis of income, they could gerrymander Revenues. AB 2987 does not ensure that their service area and thereby avoid low income cities will be "kept whole" in regard to franchise areas. Local governments will not have the author- revenues. While the bill upholds a city's ability to ity to challenge the adequacy of the service area impose a utility user tax, local agencies appear to "footprint." be prohibited from imposing other local fees and taxes, such as business license taxes, encroach- Some areas may only be provided satellite or ment permit fees and building permit fees. "another alternative technology" - an option provided in the bill when the video service provider ......................... is not able to physically build out service to all TELECOM IN THE NEWS areas of their service area footprint. The League is concerned that these alternatives may not be Report Reveals Telcos are Targeting Affluent comparable to service offered in other parts of the Communities for Video Services service area. In a report issued by Broadband Everywhere, Consumer Protection and Customer Ser- an organization founded and backed by cable vice. The bill effectively pre-empts local govern- operators, the organization is claiming that phone ment from adopting and enforcing customer companies are planning to deliver video services service standards for those operators who have in mostly affluent areas. received a statewide franchise. This would create a two-tiered customer service standard, with local Of the telcos' plans to deliver fiber optic video cable operators subject to local customer service technology to approximately 570 towns and cities, standards, and new statewide franchisees exempt only 14 of those have majority African-American from these standards. populations, according to the report, "A Picture is Worth a Thousand Words." Video Services to Libraries and Schools. Currently, most local franchises require cable For the complete story, visit companies to provide services to schools and www.multichannel.com and search for the article libraries. This bill would eliminate that obligation. titled "Report: Bells Red-Lining with Video As a result, children and community members Services." who can't afford the services at home will lose access to these advanced broadband services. PAGE 2 - PRIORITY FOCUS Visit the League's Official Website--www.cacities,org April 7, 2006 - Issue #14