Cable TV franchise revision advances

• By MARK BALLARD
• Advocate Capitol News Bureau
• Published: May 21, 2008 - Page: 1A - UPDATED: 12:05 a.m.

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A House committee fought off efforts Tuesday to regulate cable television, then approved Senate-passed legislation that would allow companies to get a statewide franchise to offer cable television service.

The state House Commerce Committee approved Senate Bill 807 without dissent after three hours of debate and after turning aside 50 amendments offered by local government opponents of the measure.

State Sen. Ann Duplessis, who sponsored the bill said SB 807 would provide a more efficient franchising process that would encourage more companies to offer television, high-speed Internet and telephone service.

“It creates competition in the marketplace for cable television for Internet access,” said state Rep. Noble Ellington, D-Winnsboro.

William A. Oliver, president of AT&T Louisiana, testified that 19 other states have passed similar streamlining legislation. SB 807 will have no impact in East Baton Rouge Parish for AT&T, which already has signed a deal to provide those services here.

The legislation would allow companies to seek a statewide franchise, rather than negotiate with each individual municipality and parish. Under SB 807, telecommunications companies would file an application with the Secretary of State’s Office for a 15-year, renewable statewide franchise.

Local governments would be able to collect up to 5 percent of the company’s gross revenue from providing the service. The legislation is entitled the “consumer choice television act.”

Former Gov. Kathleen Blanco vetoed similar legislation last year after local governments voiced concerns that there would be a negative impact for them. Gov. Bobby Jindal has not taken a position on SB 807.

Municipal and parish governments led the efforts to amend the legislation at Wednesday’s hearing, including an attempt to require the state Public Service Commission to regulate. SB 807 allows franchisees to operate without state or local government oversight.

State Rep. Chris Roy Jr., D-Alexandria, said the legislation specifically does not require companies to build into rural areas or into low-income neighborhoods. The PSC could insist that statewide franchisees service customers who might produce less profit.

Lawrence St. Blanc, secretary of the PSC, testified that the commission that regulates utilities in Louisiana is legally unable to oversee franchise agreements.

“This is a tactic to try to get the bill killed,” Duplessis said.

Only Roy voted for the amendments, while 16 of his colleagues on the panel voted against the changes. The committee, without dissent, then decided to recommend SB 807 favorably to the full House.