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INFORMATION #4 12-03-2007
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INFORMATION #4 12-03-2007
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franchising process. We expressly limit our findings and regulations in this Order to <br />actions or inactions at the local level where a state has not circumscribed the LFA's <br />authority. <br />Order, ¶ 126 (emphasis added). <br />Cable franchising in Minnesota is comprehensively governed by Minnesota Statutes, Chapter <br />238. Minnesota law circumscribes local authority by mandating that provisions governing a <br />variety of issues be included in all franchises. Minn. Stat. § 238.084. Minnesota law further <br />mandates that local franchises put incumbents and competitors on a "level playing field" <br />regarding franchise fees, build-out/service area, and PEG obligations. Minn. Stat. § 238.08, <br />Subd. 1(b). Accordingly, the franchise obligations imposed on competitors in Minnesota are <br />largely the result of state statutory requirements. Municipalities implement the state statutory <br />requirements via local franchises. <br />The Order recognizes the existence of state-imposed franchising requirements including, <br />specifically, Minnesota's level playing field requirement. Order, ¶ 47 and fn. 168 ("At least 10 <br />states impose level-playing-field requirements upon LFAs, and those laws vary significantly in <br />the subject matters they encompass. For example, compare Minnesota's requirement that a <br />competitive entrant face similar build-out, franchise fee, and PEG requirements to Illinois's <br />requirement....") The Order does not preempt these state requirements, stating instead: <br />One specific example of the type of local laws that this Order preempts are so-called <br />"level playing field" requirements that have been adopted by a number of local <br />authorities. We find that these mandates unreasonably impede competitive entry into the <br />multichannel video marketplace by requiring LFA's to grant franchises to competitors on <br />substantially the same terms imposed in the incumbent cable operators.... Accordingly, <br />to the extent alocally-mandated level-playing-field requirement is inconsistent with the <br />rules, guidance, and findings adopted in this Order, such requirement is deemed <br />preempted. <br />Order, ¶ 13 8. <br />Accordingly, the Order preempts conflicting local requirements that exceed Minnesota's <br />statutory level playing field requirements. This would include any level playing field <br />requirements included in an existing franchise agreement that exceed state statute. <br />Application Process; Time Limits. <br />The FCC's timelines for action on competitive franchise applications will apparently apply in <br />Minnesota. The Order gives a local franchising authority ("LFA") 90 days to act on an <br />application if "the applicant has existing authority to access public rights-of-way," and 180 days <br />otherwise. The time can be extended by mutual agreement. 47 C.F.R § 76.41(d); Order ¶ 67, <br />70-73. If an application is not timely acted upon, it is deemed granted an interim basis on the <br />terms proposed. The interim period ends when the LFA formally acts on the application. <br />3 <br />
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