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UPDATE - 8:01PM CST.

Passed - 77-19. I would like to make sure that people know that this was Rep. Wise's baby and when the problems arise from this bill, we know who was the biggest pusher of this corporate handout.

If you haven't been following, there is a bill about to come to the floor in the Iowa House [ Senate File 554 ] that grants state franchises to 'Video Service Providers', a fancy term for an entity that delivers wireline television service, previously known as 'cable'. This bill is horrid on many, many levels, but for reasons mostly relating to consumer and constituent inaction, it has a inordinate amount of support in the Iowa legislature.

Please read the following article below the fold, originally posted on Blog for Iowa for an overview on this unnecessary, and possibly speech-stifling, bill:

Clever's diary

Help Fight Public Help for Cable TV Companies
By Mike Brau

As you may have read, the Iowa Senate recently passed SF 544 which would change how communities franchise cable TV providers.  Under the proposed law new entrants, specifically Qwest, would be given an opportunity to by-pass the municipal franchising process and receive a franchise from the

state under preferential terms.  Many of the community benefits negotiated by municipalities on behalf of their citizens would likely be lost as the bill contains a provision that if a competitor gives notice they intend to seek a state franchise that the incumbent cable operator can cancel their existing franchise and receive a state-issued franchise.  The House Commerce Committee will likely be taking up the bill the week of April 1.  Now is the time to contact Commerce Committee members.  Below are a few talking points and the email address of Committee members.  Please take a few minutes to pick a couple of points and draft an email your own words and send it to Committee members.  Phone calls can be placed to the House switch board number below.

[Section struck due to passage of time. However, you may view the Subcommittee meeting indicated in the removed section by clicking the link below:

Iowa House Commerce Subcommittee Meeting on State Franchising [ SF 554 ] ]

Overview of the State TV Franchising Legislation, SF 554

SF554 gives special treatment to Qwest and others who wish to get into the cable business.  Qwest does not need special incentives to compete.  A franchise with the same terms as those with Mediacom or other cable company could be negotiated as easily as crossing out one company name and inserting another.

SF 554 allows Qwest and other new entrants to pick and choose which neighborhoods they serve. Some neighborhoods could receive the benefit of competition while others would not.

SF 554 allows incumbent cable operators to opt out of their existing franchise agreement upon notice of intent of Qwest or other new competitors to provide service.  Benefits for the community negotiated in that contract such as free video and Internet service for schools, libraries, and cities, local access to emergency alert systems, and video production services for city council meetings would likely vanish.

SF 554 undercuts existing commitments to local community public, educational, and government channels by limiting financial support from Qwest and other new entrants.  Capital and operational fees would be required only through the remaining term of the incumbent cable operator’s franchise and likely be totally eliminated if the incumbent cable operator opts for a state-issued franchise.

SF 554 eliminates local input from the franchising process and substitutes a one-size fits all approach.  Local community needs and interests would no longer be considered in granting the right to make us of the public’s right-of-way.

SF 554 limits local government’s ability to provide any meaningful consumer protection.  Consumer protection would be enforced through an "informal" and "non-binding" process.

SF 554 proponents claim this bill will bring price competition and a reduction in rates.  Evidence from around the country where telephone companies offer video service is mixed show their assertions is over-stated.  Most communities see no rate reduction and only in rare circumstances do rate reductions exceed 10%.  In fact, the CEO of ATT told Wall Street "I don’t think there’s going to be a price war.  I think it’s going to be a war of value and of services."

Here’s what others have said publicly about SF 554:

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Nick Johnson, former FCC Commissioner in an April 12 Special to the Des Moines Register:

Rein in Prices by Keeping Tough Local Regulation - MUST READ

Saul Mekies, Chairman of Iowa City’s Telecommunications Commission

Local Franchise Funds Channels and Ensure Coverage of All Areas

Dubuque Telegraph Herald Editorial Board

Cable Franchising Bill Bad for Consumers

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If SF 554 passes without significant alterations, PEG [Public, Educational, Government] stations across Iowa could lose funding. In Iowa City, this means that programs such as Democracy Now!, shown on PATV 18, could be threatened.

Please contact your state Representative and tell them how much you value PEG channels, as well as local media control. Ask them to support amendments that ensure continued funding of PEG programming, give power to local authorities to represent their constituents in consumer concerns, and receive fair compensation for use of the public right of way inside municipalities.

House Switch Board

(515) 281-3221

Find your state rep here: http://www.legis.state.ia.us/...

EXTRA

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An quick overview of the State-level legislation on a National level:

Telecomms Buy State Franchise Legislation, some states fight back