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<br />Municipal Groups Achieve Some Important Amendments <br /> <br />Several key improvements to the bill were achieved by the League and the California State <br />Association of Counties (CSAC), working with the National League of Cities (NLC), National <br />Association of Counties (NAOC), the U.S, Conference of Mayors (USCM) and the National <br />Association of Telecommunications Officers and Advisors (NA TOA) and other national municipal <br />groups. These include amendments strengthening local control ot local rights otway, protecting <br />local franchise fees, and preserving "PEG" (public, education and government) access channels <br />and their funding. <br /> <br />In addition, we understand that several important provisions were adopted by Sen, Stevens as <br />part of his manager's amendment, which resulted from discussions with the national local <br />government groups. Those changes included increasing from 75 to 90 days the amount of time <br />that cities would have to negotiate with new video providers before the contract applies; allowing <br />cities to collect monies on fees already paid by cable operators; requiring AT&Ts Internet <br />television service to be subject to new franchising requirements; and ensuring that localities not <br />lose existing public-access channels and institution networks. The amendment was accepted by <br />voice vote. <br /> <br />No Build..out Provisions <br /> <br />The most contentious video-franchising amendment - deciding whether new video service <br />providers should be required to build out their service to all neighborhoods within their franchise <br />area - was ultimately rejected by the committee by a 12-10 vote. The League had worked closely <br />with the California State Association of Counties (CSAC) and Sen. Barbara Boxer's office on the <br />amendment, which would have required newcomers to deploy video services in phases. <br /> <br />The obligation would have started as soon as a new entrant offered video service to 15 percent of <br />a given franchise area, Once the company had met that threshold, it would have had to offer <br />service to a further 20 percent of homes every two years until all households are reached. <br />California cities should thank Sen. Boxer for her tremendous efforts in spearheading this issue. <br /> <br />The League and CSAC sent a June 23 letter (a copy can be accessed at <br />www.cacities.orQ/telecom) to the senator endorsing the amendment. The amendment was <br />supported by all of the committee's Democrats and Republican Olympia Snowe (R-Maine). <br /> <br />The committee's rejection of this amendment leaves the bill with NO build-out requirements. <br /> <br />Key Troublesome Amendments for CitIes Adopted <br /> <br />The committee also adopted, by a 19-3 tally, an amendment offered by Sen. George Allen (R- <br />Va.) that would permanently extend the moratorium on Internet taxes. In addition, the committee <br />also adopted an amendment by Sen. John McCain (R-Ariz.) that would place a three-year <br />moratorium on all new cell phone taxes. <br /> <br />In a key point for Texas and other states which have recently adopted statewide cable franchise <br />laws, the committee rejected an amendment that would have "grandfatheredU state franchise laws <br />recently adopted in Texas and several other states. It now appears that H.R. 5252 would pre- <br />empt those laws. <br /> <br />Net Neutrality Remains Contentious Issue <br /> <br />The most controversial item in the bill is the issue of network neutrality, Sen. Ron Wyden (D- <br />Ore,) has stated that he will place a hold on the bill, preventing a vote until the issue is resolved. <br /> <br />The thorny topic dealing with whether high-speed Internet operators should be able to charge <br />content providers more for premium treatment may result in significantly more discussions <br />occurring on this bill than the sponsors intend. <br /> <br />9A <br />Page 12 <br /> <br />4 <br />