from: Times Free Press [1]

Video franchising bill clears hurdle

Tuesday, April 17, 2007, at 9:39 p.m.

By Andy Sher
Nashville Bureau

NASHVILLE -- A statewide video franchising bill cleared a major House hurdle today when a House Commerce subcommittee amended the AT&T-backed measure and then passed it on an 8-6 vote.

AT&T is pushing the bill, which would allow the telecommunications giant to jump-start its entry into providing video services to Tennessee households. Cable franchises now are controlled by local governments, and the bill would set up a statewide franchising process.

The bill picked up support through a "build-out" provision offered by Rep. Gerald McCormick, R-Chattanooga, vice chairman of the Utilities, Banks and Small Business Subcommittee. Such provisions require video services providers to serve less-profitable segments of communities for the overall public good.

"I believe we have a responsibility in the legislature to look out for all citizens of the state," Rep. McCormick told colleagues, saying he adopted his provision from a recently passed statewide franchising bill passed in Missouri.

The main sponsor of the bill, Rep. Steve McDaniel, R-Lexington, said the requirement was "unnecessary and could even be detrimental."

E-mail Andy Sher at asher@timesfreepress.com