Consumer Choice for Television Act hits small towns [legislation]

The Times-Picayune reports:

Nearly half the state's parishes could lose thousands of dollars in revenue under a recently enacted law that reduces the power of local municipalities to negotiate with cable operators.

The Consumer Choice for Television Act [Acts 2008, No. 433], enacted in August, allows cable providers in many parts of Louisiana to obtain operating licenses from the state instead of local governments, which previously held exclusive power to negotiate licensing rights.

[P]arishes and municipalities also must enact ordinances to compel franchise fee payments -- up to 5 percent of gross revenues -- from cable companies even if the cable companies gain a license from the state.

[T]he law does not apply to larger local governments in the state --such as Orleans, Jefferson and East Baton Rouge parishes and Kenner -- or any that had an existing or adopted home rule charter when the state Constitution was adopted on April 20, 1974. About 40 percent of parishes and municipalities are not exempt and must pass ordinances to continue receiving franchise fees.

And, suit has been filed, challenging the Act:

Local officials argue that the law dilutes their authority over the companies and requires parishes to take special steps to keep licensing money flowing into the parish.

A judge recently denied a challenge to the law by the Louisiana Municipal Association and the Police Jury Association of Louisiana. Police Jury Association lawyer Dan Garrett said the group plans to appeal.

Posted by MBC at January 4, 2009 11:10 PM