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April 13, 2020, Meeting – Item 5 <br />1.Comcast proposed “competitive equity” language that would apply to providersother than cable operators and would require the jurisdictions to either imposecertain cable franchise obligations on those other providers or excuse Comcast fromits franchise obligations. Jurisdictional staff have been advised by their legal counselthat the jurisdictions do not have authority under applicable federal, state and locallaws to impose such franchise obligations on those other providers. Jurisdictionalstaff informed Comcast of this and also reviewed, discussed and offered edits thatwould have resulted in a legally-defensible provision. Comcast rejected the edits.2.On September 25, 2018, the Federal Communications Commission approved anotice of proposed rule-making regarding cable franchising that would havesignificant implications for the cable franchise because it would allow cableoperators to reduce franchise fees paid to local jurisdictions by deducting the valueof providing in-kind cable benefits, such as TV programming to schools andgovernment-owned buildings even where Comcast had agreed to do so as acommunity benefit provision in the franchise agreement.Staff recommended, and Comcast agreed, the extension to allow time for the parties to work on remaining issues as well as to see if the FCC would take final action on its notice of proposed rule-making and to obtain additional information about the impacts on the franchise, franchise fee revenues, and renewal negotiations. <br />The Proposed Extension to December 31, 2021 In fall 2019, the FCC issued a final order and adopted rules that significantly changed the landscape for cable regulation (FCC Cable Order). The order not only allows cable operators to offset from their 5 percent franchise fees the value of “cable related, in-kind contributions,” like free service or cable boxes in government buildings, it prohibits local franchising agencies from charging cable operators additional fees—aside from the cable franchise fees—for use of the public rights-of-way to provide other services like broadband internet. The FCC Cable Order is being appealed in litigation filed by numerous municipalities across the U.S., including the City of Eugene. Briefing in the case is scheduled to conclude in mid-October2020; oral argument will likely not occur until early 2021 and a decision from the court will followafter that. To date, Comcast has not implemented any franchise fee reduction nor provided noticeof when it may choose to do so. Therefore, municipalities cannot estimate the impact upon thefranchise, nor be clear about elements to include in a renewed franchise.Note: While not yet ordered, the FCC is expected to propose a rule granting an additional franchise fee offset/reduction for a Comcast-established valuation of any Public Access, Education, and Government community TV channels provided under a franchise. In our area, there are four Community TV channels provided under the long-standing franchise: Public Access (Channel 29); Education (Channel 23), Government (Channel 21), and the internal Eugene-Springfield Fire Training channel. <br />CC Agenda - Page 65