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<br />use satellite service to meet some portion of the build-out requirements. The issue will certainly <br />be discussed further in Appropriations. <br /> <br />Another issue that received a great deal of attention was language that allows what Chairwoman <br />Escutia called an "off-ramp" for companies that subsequently found they could not meet the build- <br />out requirement. She stressed that the off-ramp should only be available for circumstances <br />outside the control of the company (economic downturns, "acts of God") - not poor management <br />decisions. There was strong agreement from the committee members that anti-discrimination <br />requirements must be met, with no exceptions. <br /> <br />Cross-subsidy (Le. language to ensure that current phone customers do not subsidize the build- <br />out of video and Internet services under the new state franchise approach), An additional <br />amendment was taken to address this issue. It was not deemed acceptable by the TURN ("The <br />Utility Reform Network"), the group lobbying for this protection. <br /> <br />Customer ServicefProtection. Additional amendments were taken to adopt FCC standards <br />(currently used as a "floor" in many local franchise agreements today), to raise penalties and to <br />clarify that local agencies have authority to enforce these consumer protection provisions, <br />Companies will be required to post a surety bond. Locals can impose fines, and draw on the <br />bonds to pay the fines. Funds collected can be used by local agencies to offset the costs of <br />bringing enforcement actions, The League and CSAC agreed to this amendment in principle <br />(although again, language was not available). <br /> <br />PEG ("Public, education and government") channels and I..tfET. As expected, the committee <br />deferred action on this issue so that concerned parties could work on amendments over July, with <br />Senators Murray and Simitian taking the lead. Simitian stated that his goal is "to hold <br />communities harmless' on this issue. He said that he "is not wild about abrogation., and believes <br />particularly that if the bill allows for abrogation it's especially important that companies not be to <br />able walk away from PEG commitments, When others said that state PEG requirements will <br />result in some winners and. some losers among PEG providers, Senator Simitian essentially said <br />that's not good enough and that the PEG providers in his area currently receive more resources <br />than most and need to be protected. <br /> <br />CEQA. Local agencies will be the lead agency for CECA review. Additional work on this will be <br />done over July. <br /> <br />Emergency Alert Systems. The committee agreed that work on this issue will occur over the <br />summer, with amendments taken up in Appropriations. <br /> <br />The regulatorylfranchising agency. The committee agreed to take amendments designating <br />the California Public Utilities Commission (PUC) to assume this role. This issue provided much of <br />the comic relief of the day, as no state agency wants this role. No one likes it going to the CPUC, <br />but they ran out of options, Sen. Cox question how it would be paid for. Speaker Núñez said that <br />it would be from application fees and perhaps a percentage of gross revenues, which might or <br />might not be a share of local franchise fees, but nothing is currently in the bill other than the <br />application fee. This issue will be taken up by Appropriations. <br /> <br />The League testified that we still believe the best approach is a statewide framework, locally <br />implemented - with franchises issued by local agencies. Neither the committee nor the authors <br />or sponsors are willing to accept this amendment. <br /> <br />Federal Tetecom Continued from Page 1... <br /> <br />The telephone companies are lobbying for a quick vote, but concerns about net neutrality, buíld~ <br />out, and other controversial items may slow action on the measure. Following are highlights of <br />the Senate Commerce Committee's action on the bill. <br /> <br />9A <br />Page 11 <br /> <br />3 <br />