2006 House Bill 6456 / Public Act 480

Replace local cable TV franchising with state system

Introduced in the House

Sept. 12, 2006

Introduced by Rep. Mike Nofs (R-62)

To create a state video service authorization system that would replace the current system of local franchising of cable TV providers, and also would apply to new providers who would provide service through phone lines. Providers would have to provide customers with local stations and "public access" stations, as is currently required for cable systems. Providers would have to pay a fee (tax) of up to five percent of gross revenues (which presumably would be passed on to customers), and would be given to local governments.

Referred to the Committee on Energy and Technology

Sept. 20, 2006

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Sept. 21, 2006

Substitute offered

To replace the previous version of the bill with one that revises many details but does not change the overall substance of the bill as previously described. Under the substitute, the maximum franchise fee (tax) would be 5 percent of a provider's gross revenues in a jurisdiction, plus an additional 1 percent for "community access" facilities. The state Public Service Commission would create a standard video services application form, and providers would submit this to local governments. It also revises the treatment of taxes and tax credits paid by pbone companies offering video in a way that results in higher payments to local governments.

The substitute passed 101 to 6 (details)

Amendment offered by Rep. Mike Nofs (R-62)

To require that if a video services provider voluntarily enters into a franchise agreement with a local government that is different from the standard state agreement, the local government must also offer the same terms to any other provider in its jurisdiction.

The amendment passed by voice vote

Nov. 14, 2006

Passed in the House 80 to 21 (details)

To require the Public Service Commission to create a state video service franchise application that would be submitted to local governments by both cable TV providers and phone companies providing video through phone lines. All providers would have to offer local stations, and any "public access" stations currently provided by cable systems. Local governments would be allowed (but not required) to impose a fee (tax) of five percent of gross revenues plus an additional 1 percent for public access facilities.

Received in the Senate

Nov. 28, 2006

Referred to the Committee on Technology and Energy

Dec. 5, 2006

Reported without amendment

With the recommendation that the bill be referred to the Committee on Government Operations.

Referred to the Committee on Government Operations and Reform

Dec. 12, 2006

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that increases from 1 percent to 2 percent the amount local governments are allowed (but not required) to tax video service providers for "public, educational governmental programming facilities" (PEG); allows that tax to be used for these community access channel operations rather than just capital costs; adds more prohibitions against "slamming" by providers (adding unauthorized services to a customer's package); imposes on providers a pro-rated share of an aggregate $1 million charge to pay for PSC regulation; includes provisions against local governments imposing other charges on providers; and revises the procedures related to right-of-way taxes imposed under the "<a href="http://www.michiganvotes.org/2001-SB-880">Metro Act</a>;" and more.

The substitute passed by voice vote

Amendment offered by Sen. Patricia Birkholz (R-24) and two co-sponsors

Co-sponsored by Sens. Nancy Cassis (R-15) and Tom George (R-20)

To prohibit local cable TV providers from choosing to be regulated under the proposed law rather than under the terms of their existing local franchise agreement ("abrogating") unless other providers have signed up at least 5 percent of the households in a provider's service area.

The amendment failed by voice vote

Passed in the Senate 26 to 12 (details)

To require the Public Service Commission to create a state video service franchise application that would be submitted to local governments by both cable TV providers and phone companies providing video through phone lines. All providers would have to offer local stations, and any "public access" stations currently provided by cable systems. Local governments would be allowed (but not required) to impose a fee (tax) of five percent of gross revenues plus an additional 2 percent for public access facilities.

Received in the House

Dec. 12, 2006

To concur with the Senate-passed version of the bill, which raises the maximum allowable community access channel tax from 1 percent to 2 percent, and makes other changes.

Passed in the House 86 to 21 (details)

Signed by Gov. Jennifer Granholm

Dec. 21, 2006