from: Times Tribune [1]

10/19/2006
Cable legislation dodged, for now
BY SARAH HOFIUS
STAFF WRITER

State House and Senate cable franchising bills are “off the fast track,” but local municipalities still aren’t safe from losing franchise funds, a telecommunications lawyer said this week.

Thousands of municipalities across the country receive funds when agreements are made with cable companies to serve the municipality. Clarks Summit receives about $40,000 a year through a deal with Adelphia. Other Lackawanna County boroughs that receive considerable amounts include Moosic at $62,000 and Taylor, which receives $55,000.

Legislation under consideration would have stopped those funds to local municipalities by giving the state the ability to issue statewide franchises.

The bills were pulled from being voted on during the last session by both the Senate sponsor, Sen. Dominic F. Pileggi, R-Chester, and House sponsor, Rep. Raymond Bunt, R-Montgomery.

But they will likely emerge again in next year’s legislative session, said attorney Daniel Cohen, of Pittsburgh-based Cohen Telecommunications Law Group, which does consulting work for municipalities and statewide municipal advocacy groups on franchise matters.

“It certainly has slowed down considerably since last summer,” Mr. Cohen said. But “they’re not home free by any means.”

National legislation also could end franchise funds. The Communications Opportunity Promotion and Enhancement Act of 2006 passed in the House in June, but the bill on the Senate side is broader and has been bogged down with an issue relating to Internet regulations.

The result of this bill, which would create national franchises, will likely depend on results of the election, Mr. Cohen said.

Municipalities have opposed the legislation because not only would it reduce franchise-fee revenue, it would enable cable companies to choose where they serve, instead of having to agree to service an entire borough.

In Taylor, Borough Manager Daniel P. Zeleniak said he will be consulting with Mr. Cohen on franchise funds.

The money is counted on by many communities, including Clarks Summit, where the $40,000 in franchise funds equals one mill. A mill represents $1 for every $1,000 of a property’s assessed value.

Contact the writer: shofius@timesshamrock.com