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Rosewood Office Plaza i fi, Q C Q 171 1 West County Road B, Suite 30ON Roseville, MN 551 13-4036 MINNESOTA AssoclAnON of Telephone: (651) 635-0306 COMMUNITY TELECOMMUNICATIONS ADMINISTRATORS Fax: (651) 635-0307 The Minnesota Chapter of NATOA/rhe National Association of Telecommunications Officers and Advisors email: oei @mn.state.net website: www.mtn.org/—macta POINTS FOR CITY OFFICIALS TO INIAKE WHEN DISCUSSING REMOVING CITIES FRO`I CABLE REGULATION,ADMINISTRATION, AND FRANCHISING From the Minnesota Association of Communitv Television Administrators (MACTA) Minnesota's cities have regulated cable franchises for twenty years. Cities have had the authority to negotiate and oversee nonexclusive cable franchises to suit each community. During the 2000 legislative session, the Minnesota Legislature plans to consider a number of proposals which would change the way cable television is regulated in Minnesota. Some of these proposals would eliminate the city's role in cable regulation and administration; franchise fees now paid to cities would be pooled in a state-wide fund. The apparent goal of these and other proposals is to foster greater competition. MACTA supports increased competition between modes. We oppose, however, legislative action which would take us out of the cable.business because: ♦ Cities in Minnesota received nearly$19 million in franchise fees in 1999. The largest portion of . that money went to the general fund. Significant amounts also went to cable-related activities, like televising government meetings, community access production, franchise administration, etc. However the money is used, the city making the original franchise agreement has a right to the franchise fees and should retain the power to allocate those resources.in their city. 0 During the first seven months of 1999, cities received nearly 4000 complaints from subscribers, complaints which had to be resolved because the subscribers are constituents who deserve prompt action. Installing a state-level complaint system simply won't work in dealing with the multitude of specific local problems. ♦ City-administered cable systems provide some 570 institutions with institutional networks. The majority of the institutional networks are for schools and school districts; others are for cities and counties, nonprofit organizations and a few businesses. Institutional networks provide their users with access to cable which they probably would not otherwise be able to afford-. These networks exist because of local control and the ability city-run systems have to respond to local institutional needs. ♦ Cable regulation by cities promotes Governor Ventura's vision in The Big Plan to have people working together in healthy vital communities. And, it keeps cable regulation accountable and responsible to the people. It's important to keep in mind that, while cities are opposed to losing their franchise authority and revenue and their ability to service local subscribers and institutions, we are not in any way opposed to legislative changes which address the perceived need to foster gr eater competition. Printed on Recycled Paper