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9A CABLE from page 1............................................... ~age 6 As we reported last week in Priority Focus, These include support for PEG and I-Net services the state Legislature's Senate Energy, Utilities under the new state franchise and pressing for and Commerce Committee held two hearings on local agency issuance of a state franchise. We AS 2987 (Nunez/Levine), focusing most of its believe this approach would solve many technical time and attention on discussion of further issues that would inevitably arise when a state amendments needed to clarify the "build-ouf agency is given the responsibility of issuing a requirements. While the addition of these re- franchise that is implemented locally. quirements represents an improvement in the bill, they will do nothing to address the serious digital Federal Legislation divide issues that will, in aI/likelihood, persist in rural areas of the state, and in communities Discussions on federal legislation also con- outside of telephone or cable companies' self- tinue. A telephone company-sponsored measure selected service areas. Local agencies will lose (H.R. 5252) has passed out of the House of Repre- the ability they currently have with a cable fran- sentatives; a Senate measure (formerly S. 2686, chise to require build-out into all areas of a com- now re-numbered to H.R. 5252) passed out of the munity. Senate Committee on June 28, and now awaits action on the Senate floor. . Both bills establish a The astounding adoption of amendments that federal franchise system. Neither contains spe- will aI/ow cable companies to "opt ouf' of their cific requirements on build-out of services, but the franchise agreements with local agencies re- Senate-passed measure does include language on ceived little discussion. The amendments pro- PEG, I-Net and other issues supported by the vide that a cable company can unilaterally abro- League and other local government organizations. gate a local franchise agreement when a com- petitor announces that they have obtained a state Notably for efforts on AB 2987, at this point, franchise to offer competitive service in the cable both federal measures would pre-empt state companies' service territory. The cable company legislation. can then apply for a state franchise to serve the same territory. The League's strong opposition to A key criticism of both measures is that they this amendment essentially fell on deaf ears undermine "net neutrality. B The measures do this during the committee hearing. (See also ~Un- by allowing Internet providers to establish priorities happy with Your Cable Provider's Support of A8 for Internet content, based upon fees paid by 2987? Tell Them!", p.3). content providers. While the battle on this issue appears over in the House, in the Senate these The question remains as to how expansive provisions may prevent passage of federal legis la- the abrogation of contractual agreements will be, tion this year. and what will happen to a cable company's ....................... support for existing "PEG" (public, education and ENVIRONMENTAL from page 5 government) channels and I-Net services. More discussion on this issue will occur with the Docket Management Facility Senate E, U & C staff and members over the July U.S. Department of Transportation recess, as speCific language regarding abroga- 400 Seventh Street, Sw., Pl-401 tion is fleshed out. Washington, DC 20590 Other Key Issues: PEG, I-Net and Local . Hand Delivery: Deliver to Room PL-401 on Issuance of State Franchise the plaza level of the Nassif Building at 400 Sev- enth Street, Sw., Washington, DC 20590, between The League also will continue discussions on 9 a.m. and 5 p.m. EST, Monday through Friday, several other issues of key importance to cities. except Federal holidays. PAGE 6 . PRfORITY FOCUS Visit the League's Official Website-www.cacities.org July 7, 2006 . Issue #27 _.~~.