2002-04-24 CC Packet - Laserfiche WebLink

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. NLC urges cities to join response to FCC ruling on. cable modem service . Ann Higgins The League ru.s received a request from the National League of Cities (NLC) to urge cities in Minnesota to join a national strategy to respond to recent actions by the Federal Com- munications Commission (FCC). NLC is developing a challenge to the FCC declaratory ruling that cable modem service offered over local cable systems is an infonnation service. not subject either to state or federal tele- communications regulations nor to local cable &mcbise requirements or to federal cable service regulation. The FCC also issued a further notice of proposed rulemaking (NPRM) that raises questions about how cable modem service, which the FCC ru.s termed an "interstate information service," should be treated vis-a-vis access to public rights-of-way as well as with regard to other community and subscriber interests. NLC ru.s voiced its concern about the importance of the FCC ruling and the adverse impact on local government revenues. A number of cable companies, including AT&T, Charter, and Time-Warner, have already told local cahle &mchise authorities they are halting payment of cable &mcbise fees on revenues from cable modem services they offer. NLC ru.s noted that as major stake- holders in this debate, cities are the single, largest landlord fur cahle system operators and telephone companies, and that the loss of &mchise fee revenues ru.s implications fur city funds. The League encourages cities to refrain from submitting comments to the FCC since NLC plans to work in collaboration with cities and other local government associations to address the important issues raised by the FCC actions. The League agrees that working with NLC and with other national associations---<UCh as NATO^, which represents local cable &mcbise authorities-allows local governments to speak with one voice on these important concerns. NLC is planning to develop comments to be submitted to the FCC on behalf of NLC direct member cities (61 cities in Minnesota are direct members) and other local government groups. NLC also plans to develop a brief set of questions for cities to help collect data and deter- mine the amount and implications of city revenue losses. And, NLC is examining other legal options in the courts, plans to communicate to members of Congress the impact of the FCC ruling on cities, and to work on a legislative remedy. .. Transportation funding conference committee convenes Anne Finn If you have been fullowing the legislative debate over transportation issues, you know the bills that have emerged from the House and Senate have little in common. The Senate bill includes a gas tax increase, indexing of the gas tax, and a referendum provision relating to a metropolitan area sales tax to fund both highways and tranSit. The House bill authorizes the issuance of$750 million in trunk highway bonds and contains no funding for tranSit or local roads. Last week, the House and Senate named the conferees that will be charged with negotiating a transporta- tion-funding package (HF 3364/ SF 2812). House conferees are: Rep. Wi1fuun Kuisle (R-Rochester), Rep. Mary Liz Holberg (R-Lakeville), Rep. AlJuhnke (DFL-Willmar) , Rep.Tony Kielkucki (R-Lester Prairie), and Rep. Tom Workman (R-Chanhassen). Senate conferees are: Sen. Dean Johnson (DFL- Willmar), Sen. Dave Johnson (DFL-Bloomington), Sen. Mark Ourada (R-Buffu1o), Sen. Julie Sabo (DFL-Minneapolis), and Sen. Roy Terwilliger (R -Edina). The committee ru.s met to hear staff overviews of the bills and to take testimony on transportation needs. As this issue of the Cities BuUetin goes to print, conferees have yet to begin negotiating publicly. It appears both sides will have to make major com- promises if the Legislature is to pass a transportation-funding bill this session. .. April 10,2002 Page 5