Bill could allow cities to franchise broadband

A proposed bill going through the Minnesota Legislature would treat internet broadband similar to cable television and allow franchising.

If passed, local governments could decide if and how they would implement franchising broadband internet and collect PEG fees. Satellite is not included in this bill. The city of Robbinsdale is among those sending letters of support for HF4182.

Rep. Mike Freiberg (DFL-Golden Valley), is the chief author of the bill in the House. His district encompasses the entire cities of Robbinsdale and Golden Valley as well as southeastern portions of Crystal and Plymouth.

“As an essential service, broadband needs to be held accountable at the local level,” Freiberg said.

Mayor Dan Roe from the city of Roseville spoke in support of the bill at a March 11 House Commerce Finance and Policy Committee meeting.

“Community media gives our citizens in many cases their only access to government activities, local events including sports and performing arts and other important local information,” Roe said. “While these media offerings are still viewable on cable television through cable franchising, they are now increasingly streamed via broadband providers.”

Jodie Miller of Northern Dakota County Cable Communications Commission and Town Square Television as well as the Minnesota Association of Community Telecommunications Administrators said although their content is viewed through many platforms such as YouTube, AppleTV and Ruko, the funding comes only through traditional cable via public educational and governmental access fees. These are called PEG fees, which are currently being collected via cable bills.

The money can be used for public access broadcasting, educational media and broadcasting, and government access television. But, cable subscribers have continued to decline nationally with the focus turning to streaming.

“Our residents don’t mind franchise fees when they know their dollars are being employed locally to provide our franchise office and our local programming,” Miller said.

Brent Christensen, CEO of the Minnesota Telecom Alliance, spoke against the bill.

“My members oppose this bill for a variety of technical policy reasons,” Christensen said. “But most importantly because it will increase consumers bill and harm low-income consumers.”

Several people representing cable companies spoke against the bill while elected officials who testified generally spoke in favor of the bill.

Should the government be able to collect money from broadband use?

Legislators discussed a bit before voting.

Rep. Isaac Schultz (R-Elmdale Township) asked why there was no language in the bill ensuring the money generated would go directly to PEG fees. Freiberg said HF4182 is based on cable television laws, and there is no PEG requirement there.

Schultz said the “Equal Access to Broadband Act” should be called the “Expensive Access and Bloating Government Act.” Schultz asked Freiberg how his bill could help low-income people.

“This act will make sure cities can make sure everybody gets treated equitably,” Freiberg said. “Some of those areas that they’re claiming this would hit financially are least well served by broadband currently.”

Attorney Mike Bradley added a little more.

“When we look at cable franchising, local governments right now are able to franchise cable operators and through that process, local governments made sure that every resident in their city was served with the same level of service across the board,” Bradley said.

Rep. Harry Niska (R-Ramsey) expressed concern that the bill did not set any limits to franchise fees.

“I certainly can appreciate why local officials would support a new way to raise revenue in a way that’s less transparent, that’s on every customer’s monthly cable bill where they wouldn’t necessarily expect to see local tax instead of funding local government through the property taxes, which local government officials are very easily held accountable for,” Niska said. “So, I think that this is a bad direction to go in.”

A motion to send the file to the Government Finance and Policy Committee passed 10-6.

Read more about HF4182 at house.mn.gov.