AgdaPkt 2006-06-19 - Laserfiche WebLink

Browse Search

AS 2987 from page 3............................................... allow the funds to be used for operational ex- ings. These requirements ensure that our kids penses. (Federal law limits use of these funds to have the full range of educational tools, that people capital expenses unless the franchise agreement without access to broadband can get it at libraries, allows use for operational expenses.) and that government agencies can better serve the public. The bill would preempt these require- Solution: Amend AB 2987 to provide that ments. operators shall pay a specified amount of gross revenues for PEG only (not I-Net, which should be Solution: Require operators to provide free funded separately). Provide that these funds may service to all public schools, libraries and other be used for either capital or operational expenses. public buildings. Franchise Fees Institutional Networks Problem: There are two problems. One is Problem: Many local franchises require the that AB 2987 currently imposes a state franchise cable operator to provide an "Institutional Network" fee that is remitted to the local agency. The (Le. telecommunications lines connecting schools reason that a franchise fee generally is not con sid- and/or other government buildings). Institutional ered a tax is that it is essentially rent for use of Networks provide a tremendous benefit to local property. government by providing high capacity voice/video/ data networks that they could never afford on their However, the state does not own local streets, own, while costing the operator relatively little due so it cannot impose the fee without it arguably to the fact that the incremental cost of building becoming a tax. Also, there is no purpose served additional capacity is relatively low. by having the fee imposed by the state and remit- ted to the local agency rather than it simply being The initial version of AB 2987 only provided for imposed directly by the local agency. The state- funding of 1 percent of gross revenues to be used imposition approach will likely lead to litigation. for both PEG and Institutional Networks. As discussed above, 1 percent is insufficient, and is The other issue is that while AS 2987 provides less than many agencies currently receive, for that local agencies will receive 5 percent of gross PEG alone. revenues, it includes exclusions to the definition of gross revenues that will result in a loss of rev- Further, even if the funding were sufficient, AB enues to those local agencies. 2987 doesn't require operators to provide an Institutional Network even if paid for by the local Solution: Authorize local agencies to impose agency. The bill would effectively terminate exist- a franchise fee not to exceed 5 percent of gross ing Institutional Networks and prevent the deploy- revenues, provided that the fee is the same for all ment of new Institutional Networks. equivalent providers. Provide that revenues from bundled services shall be allocated between each Solution: Amend the bill to require operators type of service in proportion to the price of each to provide an Institutional Network, with the number service if provided separately. of network connections or sites based on the population of the local agency. Alternatively, Service to Schools, Libraries and Other require existing Institutional Networks provided by Public Buildings incumbents to continue, but require new entrants to pay a proportionate share of the cost to the Problem: Many local franchises require incumbent. operators to provide free video and data services to public schools, libraries and other public build- PAGE 4 - PRIORITY FOCUS Visit the league's Official Website--www.cacities.org June 2, 2006 - Issue #22