Res 29-03RESOLUTION NO. 29-03
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, OPPOSING PROPOSED SENATE BILL
654 (PCB BR 03-06) WHICH REMOVES LOCAL GOVERNMENTS'
AUTHORITY TO ENFORCE EXISTING CABLE FRANCHISE
AGREEMENTS WITH REGARD TO ALL BROADBAND OR
INFORMATION SERVICES, AND, ALLOWS TELEPHONE
COMPANIES TO IMPLEMENT UNCONSCIONABLE RATE
INCREASES WITH VERY LIMITED GOVERNMENTAL OVERSIGHT
WHEREAS, during Florida's 2002 Legislative Session, Governor Bush vetoed last year's
proposed House Bill 1683, which would have accomplished essentially the same results as the
provision contained in currently proposed Senate Bill 654 and House PCB BR 03-06 ("the BILLS");
and
WHEREAS, Governor Bush announced that last year's proposed House Bill 1683 was based
on "ambiguities and circular logic" and would "tie the hands of the Florida Public Service
Commission"; and
WHEREAS, this year's redial of last year's bad Bill fails to correct the ills that were
highlighted in Governor Bush's veto message because the new "BILLS" (a) insulate industries from
competition from wireless and Internet messaging services by shifting losses in access fee revenues
to concurrent "revenue neutral" increases in local service basic rates, Co) by no means guarantee that
competitors will enter into the applicable markets, and (c) do not allow residential customers and
small business to realize savings and opportunity in their local service that they may realize in other
telecommunications sectors; and
WHEREAS, Governor Bush has said that the new "BILLS" are "acceptable" because in his
opinion they grant to the Florida Public Service Commission sufficient authority to decide to what
extent the subject telephone rates can be increased; and
WHEREAS, in fact the "BILLS" afford customers very liule, if any, effective protection, but
instead, will allow elected officials to "blame" the appointed Florida Public Service Commissions for
the inevitable, unconscionable rate increases that will certainly occur to millions of telephone
customers with regard to their basic local telephone service; and
WHEREAS, the "BILLS" will allow rates for residential basic telephone service to increase
by up to 67 percent in as few as the first 2 years, and will also allow residential local telephone rates
to increase up to 20 percent per year every year thereafter; and
WHEREAS, the "BIIJ~S" can result in customers who use local telephone service
collectively paying as much as $1 Billion more per year in as few as three years, and the quality of
this service can decrease due to other provisions in these "BII.I$"; and
WHEREAS, the "BII.I.S" contain the following text: "No local government shall have the
authority to directly or indirectly regulate the terms and conditions, including, but not limited to, the
operating systems, qualifications, services, service quality, service territory, and prices, applicable to
or in connection with the provision of any broadband or information service"; and
WHEREAS, the text noted above removes from the City of Delray Beach regulatory
jurisdiction the specified items with regard to the City's cable television franchisee, and the City of
Dekay Beach believes such removal of regulatory authority is not in the public interest and may
even be an unconstitutional impairment of the City's contract rights with regard to its existing cable
television Franchise Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA that:
The City Commission of the City of Delray Beach, Florida, strongly opposes proposed Senate Bill
654 (and its counter-part proposed PCB BR 03-06) from being enacted into law because these
proposed Bills allow unconscionable, unjustified increases to rates for local telephone service, and
also prevent the City of Delray Beach, and all other local governments, from enforcing their existing
cable television Franchise Agreements with regard to all activities classified as "broadband and
information services."
PASSED AND ADOPTED in regular session on the ~ day of ~ ,
2003. J
ATTEST:
City Clerk
2 RIGS. NO. 29-03
[lTV I)F I)ELRIIV BEI:I[H
CiTY ATTORNEY'S OFFICE
200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
Writer's Direct Line: 561/243-7091
1993 DATE: April 23, 2003
MEMORANDUM
TO:
FROM:
City Commission
David Harden ~
~.~, ~
Brian Shutt, Assistant City Attorney
SUBJECT: Resolution Opposinq Senate Bill 654
Our office has received a memo from the law firm (Leibowitz & Associates)
assisting the City in its renewal of the cable franchise regarding Senate Bill 654
and its preemption of local government rights with respect to the regulation of
broadband services. Please see the attached memo.
The concerns of Leibowitz & Associates are that the cable industry will use this bill
as a basis, either now or in the future, for the preemption of regulation of cable
services. Preemption may result in the City's inability to control rights-of-way,
customer service, system upgrades and enforcement as it relates to cable
franchises.
Collier County is adopting a resolution opposing SB 654 in its present form. We
have prepared a draft resolution identical to the Collier County resolution for your
review. If you would like for this resolution to be placed on the Commission
agenda either notify Mr. Harden or our office. Please call if you have any
questions.
Attachment
04-09-Z003 11:51am From-LEIBOWITZ & ASSO¢, +305630941?
I.'~IBO'~I'I;Z & A$$O¢IA?]~$, P.-~-
MEMORANDUM
TO:
FROM:
RE:
DATE:
Law Firm Clients and Interested Parties
Lcibowi~z & Associates, P.A.
SB 654
April 9, 2003
Having carefully mad thc proposad arn6nded language to Florida Statute 364.0361, it would
appear that the cable indusu'y is attempting m achieve in 2003 what they failed to attempt pursuant
to the Communications Services Tax of 2001: The preemption of local goyernmealts' cable
franchising rights. The language of the proposed ~mendmen! states; "A local government may not
directly, or indirectly regulate the mrms and concli~ions including, but not limited to the operations,
systems, qualifications services, service qtmlky, service territories and prices applicable to or in
connection with the provision of any broadband or information service." Today's modern cable
systems are clearly based on broadband technology and any preemption of local governments fight
with respect to regulation of breadband services will likely be used as a b~sis now or in thc future
for preemptiun of regulation of cable services.
Ir is critical that all local governments contact their representatives in Tallahassee
immediately ro prevent passage of this amendment. Failure to do so may result in the loss of all
aovcmmcnl franchising and regulation of cable operators including, but nor limked ro usc of thc
rights-of-way, customer service, system upgradcs and cnforccmant.
Plcasc call Mar~ Lcibowitz or Ila Fcld should you have any questions with respect to this
ma1~CT,
04/09/03 WI/D 11:47 [TX/RI NO 6307]
RESOLUTION NO.~1-03
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH, FLORIDA, OPPOSING PROPOSED SENATE BILL 654 (PCB BR
03-06) WHICH REMOVES LOCAL GOVERNMENTS' AUTHORITY TO
ENFORCE EXISTING CABLE FRANCHISE AGREEMENTS WITH
REGARD TO ALL BROADBAND OR INFORMATION SERVICES, AND,
ALLOWS TELEPHONE COMPANIES TO IMPLEMENT
UNCONSCIONABLE RATE INCREASES WITH VERY LIMITED
GOVERNMENTAL OVERSIGHT
WHEREAS, during Florida's 2002 Legislative Session, Governor Bush vetoed last
year's proposed House Bill 1683, which would have accomplished essentially the same
results as the provision contained in currently proposed Senate Bill 654 and House PCB BR
03-06 ("the BILLS"); and
WHEREAS, Governor Bush announced that last year's proposed House Bill 1683 was
based on "ambiguities and circular logic" and would "tie the hands of the Florida Public
Service Commission"; and
WHEREAS, this year's redial of last year's bad Bill fails to correct the ills that were
highlighted in Governor Bush's veto message because the new "BILLS" (a) insulate
industries from competition from wireless and Internet messaging services by shifting losses
in access fee revenues to concurrent "revenue neutral" increases in local service basic rates,
(b) by no means guarantee that competitors will enter into the applicable markets, and (c) do
not allow residential customers and small business to realize savings and opportunity in their
local service that they may realize in other telecommunications sectors; and
WHEREAS, Governor Bush has said that the new "BILLS" are "acceptable" because
in his opinion they grant to the Florida Public Service Commission sufficient authority to
decide to what extent the subject telephone rates can be increased; and
WHEREAS, in fact the "BILLS" afford customers very little, if any, effective protection,
but instead, will allow elected officials to "blame" the appointed Florida Public Service
Commissions for the inevitable, unconscionable rate increases that will certainly occur to
millions of telephone customers with regard to their basic local telephone service; and
WHEREAS, the "BILLS" will allow rates for residential basic telephone service to
increase by up to 67 percent in as few as the first 2 years, and will also allow residential local
telephone rates to increase up to 20 percent per year every year thereafter; and
WHEREAS, the "BILLS" can result in customers who use local telephone service
collectively paying as much as $1 Billion more per year in as few as three years, and the
quality of this service can decrease due to other provisions in these "BILLS"; and
WHEREAS, the "BILLS" contain the following text: "No local government shall have
the authority to directly or indirectly regulate the terms and conditions, including, but not
limited to, the operating systems, qualifications, services, service quality, service territory,
and prices, applicable to or in connection with the provision of any broadband or information
service"; and
WHEREAS, the text noted above removes from the City of Delray Beach regulatory
jurisdiction the specified items with regard to the City's cable television franchisee, and the
City of Delray Beach believes such removal of regulatory authority is not in the public interest
and may even be an unconstitutional impairment of the City's contract rights with regard to its
existing cable television Franchise Agreement.
NOTM, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY
OF DELI{AY BEACH, FLORIDA that:
The City Commission of the City of Delray Beach, Florida, strongly opposes proposed Senate
Bill 654 (and its counter-part proposed PCB BR 03-06) from being enacted into law because
these proposed Bills allow unconscionable, unjustified increases to rates for local telephone
service, and also prevent the City of Delray Beach, and all other local governments, from
enforcing their existing cable television Franchise Agreements with regard to all activities
classified as "broadband and information services."
PASSED AND ADOPTED in regular session on the __ day of
,2003.
ATTEST:
MAYOR
City Clerk
2 RES, NO. ~'- 0~