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[/media-credit]State legislators restored cable-subscriber rights and extended consumer protection to other video service providers in the proposed video franchise bill before passing it in committee Tuesday morning.
The Assembly bill, like its companion in the Senate, would transfer cable franchise authority to state officials from local municipalities, which currently control access to the public's right of way.
As originally proposed, the bill would have repealed cable subscriber rights enforced by the state Department of Agriculture, Trade and Consumer Protection. For the most part, the rights entitle subscribers to some compensation following service interruptions and require certain time periods for notification of service changes.
State Rep. Brent Davis, R-Oshkosh, and Rep. Josh Zepnick, D-Milwaukee, introduced the amendment to the Assembly's Energy and Utilities Committee.
"I fought to extend these protections for those in rural communities where satellite is the only available video option," Davis said in an April 16 statement.
As proposed, the expanded consumer protection rights would be enforced by the DATCP while granting the statewide franchise agreements would be handled by the Financial Institutions Department.
The committee passed the bill 9-1 with Rep. Tony Staskunas, D-West Allis, dissenting. He did not return messages from The Badger Herald Tuesday seeking comment.
Brad Clark, cable TV coordinator for Madison, said the legislative committee made progress with consumer protection but still called the bill "fatally flawed." Clark — also station manager of Madison City Channel, Madison's public access television station — said it would undermine public stations funded by the current franchise fee system.
Currently, most cable companies agree to pay municipalities 5 percent of gross revenues. In 2006, Clark said Charter Communications — the nation's third-largest cable provider — paid the city of Madison $1.9 million dollars, and Madison City Channel received about $250,000 from the payout.
Originally, the video franchise bill defined gross revenue in such a way that municipalities could have received smaller payouts, since the bill outlined several revenue exemptions that are not currently recognized by most municipalities. The provision was amended Tuesday so the definition of gross revenue reflects the current payout system.
"That means cities for the most part will be kept whole financially and will not have to raise property taxes to offset services," Clark said.
He said the change is a major improvement, but added that the bill could still cut Madison City Channel's second source of funding — public, education and government access services (PEG) fees.
Each month when Madison residents receive their Charter Communication cable bills, subscribers are charged a 62-cent "access fee," which generates funding for Madison public, educational and government channels. Funds generated by this fee doubles Madison City Channel's budget, increasing it by another $250,000.
Clark said removing the access fee would "put WYOU (Madison City Channel) out of business and cripple Madison City.
Today, Clark and other industry advocates will attend a meeting by the Senate's utility committee. Although Clark will not be allowed to publicly testify, he will be able to witness the committee amend and vote on its version of the video franchise bill.
The committee will likely approve similar amendments to those adopted by the Assembly committee but Clark hopes it will also maintain the current funding system. He would also like to see more aggressive language on customer service and citywide coverage.
