2002-04-24 CC Packet (2) - Laserfiche WebLink

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. NLC urges cities to join response to FCC ruling on. cable modem service . Ann Higgins The League has received a request from the National League of Cities (NLC) to w:ge 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 information service, not subject either to state or federal tele- communications regulations nor to local cable franchise 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 has 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 has voiced its concern about the importance of the FCC ruling and the adverse impact on local government revenues. A nwnber of cable companies, including AT&T, Charter, and Time-Warner, have already told local cable franchise authorities they are halting payment of cable franchise fees on revenues from cable modem services they offer. NLC has noted that as major stake- holders in this debate, cities are the single, largest landlord for cable system operators and telephone companies, and that the loss of franchise fee revenues has 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 tl)e FCC actions. The League agrees that working with NLC and with other national associatio~uch as NATO^, which represents local cable franchise 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 ofNLC 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 cotuts, plans to communicate to members of Congress the impact of the FCC ruling on cities, and to work on a legislative remedy. I" 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 fur transit or local roads. Last week, the House and Senate named the conferees that will be charged with negotiating a transporta- tiou-funding package (HF 3364/ SF 2812). House conferees are: Rep. William Kuisle (R-Rochester),Rep. Mary Liz Holberg (R-Lakeville), Rep. Al Jnhnke (OFL-Willmar), Rep. Tony Kielkucki (R-Lester Prairie), and Rep. Tom Workman (R-Chanhassen). Senate conferees are: Sen. Dean Johnson (OFL- Willmar), Sen. Dave Johnson (OFL-Bloomington), Sen. Mark Ourada (R-Buffulo), Sen. Julie Sabo (OFL-Minneapolis), and Sen. Roy Terwilliger (R-Edina). The committee has met to hear staff overviews of the bills and to take testimony on transportation needs.As this issue of the Cities Bulletin goes to priot, 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. 'I" April 10,2002 Page 5