Minn. Local Broadband Franchise Bill Advances

Republican opposition couldn’t stop a Minnesota House bill on local broadband authority from advancing Monday. The Commerce Committee split by political party in a 10-6 vote to send HF-4182 to the House State and Local Government Committee. Also, the committee voted by voice to make an anti-junk fees bill (HF-3438) eligible for a full House vote. HF-4182 would establish local franchise authority for broadband in Minnesota much like what currently exists for cable. Rep. Isaac Schultz (R) slammed the bill, which he said would set up a “slush fund” for local governments by allowing unlimited fees with no directions for how to use the money. Rep. Harry Niska (R) added that it’s not transparent to put fees on monthly internet bills, where he said customers are less likely to expect a local tax. However, local franchising authorities and public, educational and governmental (PEG) stations support the bill, said Jodie Miller, Northern Dakota County Cable Communications Commission executive director. The bill would fill a revenue gap from quickly declining cable franchise fees, she said. "Our residents don't mind paying franchise fees when they know their dollars are being employed locally to provide our franchise office and our local programming.” The bill would extend cable franchise benefits to broadband, said Mayor Dan Roe of Roseville, Minnesota. Through franchising, local governments can ensure all their residents are served with high-speed internet, said local government attorney Michael Bradley. However, telecom and cable industry groups opposed HF-4182. "The bill authorizes every level of local government to impose unlimited, overlapping franchise fees" on broadband that will hurt low-income customers most, said Minnesota Cable Communications Association attorney Tony Mendoza. Minnesota Telecom Alliance members planned to spend $300 million this year to expand broadband, but "this bill puts that figure in doubt,” warned MTA President Brent Christensen, adding that no other state has a similar law. The proposed law may conflict with FCC wireless rules, cautioned CTIA Assistant Vice President-State Legislative Affairs Jeremy Crandall. The FCC requires cost-based fees, but the Minnesota bill would allow charges for raising revenue, he said. CTIA also opposed the junk-fees bill. Mobile companies should be exempted because they are already covered by FCC broadband labeling and truth-in-billing rules, testified lobbyist Sarah Psick for the wireless industry association.