Save Access

from: The Review

New cable providers bill affects townships

By LEIGH ANN KAISER (lkaiser@reviewonline.com)

Liverpool Township Trustee Karl Kontnier recently aired his frustration regarding Ohio Senate Bill 117 which was signed into law by Gov. Ted Strickland June 25.

The bill, which passed by a 94-2 vote in the house and a 33-0 vote in the senate, will dissolve the right of local governments to negotiate contracts with cable providers to establish a statewide franchise.

Keith Daily, press secretary for Strickland, said video-service providers will be able to enter into agreements with the state of Ohio rather than local governments to provide their services to consumers.

Kontnier said the passage of the bill will cost townships and cities all over Ohio thousands of dollars they receive from contracts with cable providers.

He said Liverpool Township receives roughly $30,000 annually from such agreements.

“I’m tired of people taking our money away, expecting us to do our jobs,” said Kontnier, “How are we supposed to survive?”

East Liverpool City Council formally opposed State Bill 117 in May by forwarding a letter to Ohio District 1 Representative Linda Bolon.

“It’s going to have a financial impact,” said Councilwoman Linda Ziegler. “We can ill afford to give up the money.”

St. Clair Township Fiscal Officer Deborah Dawson said the township may lose only $3,024 in cable franchise fees collected in “fee on fee” charges.

“Our loss is going to be minimal from what I understand from my recent research,” said Dawson.

She spoke with Richard Emenecker who serves as the Region Senior Director of Government Affairs for Comcast.

Emenecker said Comcast is in the process of looking at each franchise agreement to see how the new law will affect each one.

He said Comcast’s agreement with St. Clair Township should remain the same, however it is not clear yet whether or not the township will still collect “fee on fee.”

Strickland released a comment supporting the bill which is posted on his Web site.

“I believe that the establishment of a statewide franchise for video-service providers will not only bring additional investment to our state, but also result in lower costs and more choices for consumers in Ohio,” said Strickland.

According to Daily, many concerns about the effect of the bill on local governments have been addressed in the amended version.

He said channels for public, educational and governmental programming (or PEG Channels) have been increased in the final draft of the bill.

The bill also provides more consumer protection by requiring cable companies to work with local governments to address customer service issues, said Daily.

“The governor believes it provides a proper balance between consumer and local government protections,” he said.

“Hopefully, it’s going to help everybody,” said Bolon “This bill is much stronger as a result of the committee process.”

She said amendments were written to the bill to protect local governments and schools.

According to Bolon, local governments will still receive fees from video providers capped at five percent of the company’s gross revenue.

Bolon said customer service standards have been added to the bill requiring timely repair.

The bill requires video service providers to give 30 days notice before dropping a channel or increasing rates.

Bolon said video service providers will be required to give 10 days notice of a service disconnection and may only disconnect service if a bill is 45 days or more past due.

She said the bill also gives the right of local governments to audit video service providers.

Bolon said she believes the bill will create more jobs for telecommunication workers across the state by raising customer service standards and increasing competition.

Senate Bill 117 is expected to take effect Sept. 24.