Support the Community Television Act

ACTION NEEDED

Urge your Members of Congress to pass the Protecting Community Television Act. Introduced by Sen. Ed Markey (D-Mass.) and Tammy Baldwin (D-Wis.) in the U.S. Senate as S.1994 and Rep. Troy Carter (D-La.) in the US House of Representatives as H.R. 3805, this legislation would amend the Communications Act of 1934 to reverse the Federal Communications Commission’s (FCC) 2019 order requiring that cable-related, in-kind contributions be subjected to the statutory five percent franchise fee cap. 

BACKGROUND

On August 1, 2019, the FCC adopted a ruling usurping local franchising authority. Under the FCC rule, cable related, in-kind contributions required by local franchising authorities are considered a “franchise fee”. 

Franchise fees help local governments maintain the public rights-of-way used by cable providers to deliver services. As part of franchise agreements, local franchising authorities often require cable operators to provide in-kind contributions, including support for public, educational and government (PEG) channels. These contributions deliver substantial community benefits by promoting transparency and civic engagement through access to local and regional government meetings, educational programming and for-credit courses, coverage of community events and public safety information

By classifying in-kind contributions as “franchise fees”, the FCC’s order subjects the costs of providing PEG channels to the Communications Act’s five percent franchise fee cap. As a result, many communities have seen franchise fee revenues decline by 30 to 40 percent, reducing funding for PEG programming and forcing local governments to make difficult budget decisions affecting schools, libraries and other public services.

Effective September 26, 2019, the rule allows cable operators to deduct the fair market value of services required under franchise agreements from franchise fee payments. These deductions disproportionately impact smaller communities, where PEG channel revenues often represent a more significant local resource than in larger urban areas. 

KEY TALKING POINTS

• It is critical that counties retain the flexibility and resources afforded through cable franchise agreements to provide the public with regular access to community and local resources through maintenance of public, education and government (PEG) channels. This legislation helps ensure that PEG channels, which have provided critical information to the community for millions, can be maintained as a public good.  
• Counties use public, education and government (PEG) channels as a key communicator of local activity by non-profits, schools, libraries and other community stakeholders who rely upon access to communication with the public as a key to the success of their initiatives.