The Minnesota Reformer reports…
The Minnesota House’s Democratic majority is expected to ax a proposal Monday that would have allowed cities to charge broadband providers a fee to place internet lines in their jurisdictions.
If they chose to enact the tax — or “franchise fee” — cities would have been able to charge up to 8% of the provider’s gross revenues. The cities could spend just shy of two-thirds of that on whatever they want, though the bill mentions the costs associated with burying the broadband lines — also known as right-of-way management.
Cities should be allowed to charge a fee because companies are placing the internet lines on public land, and cities incur costs to replace streets or sidewalks after the companies bury the lines, said Rep. Mike Freiberg, DFL-Golden Valley, the bill’s chief author.
Cities could use the remaining revenue — a bit more than one-third of the total — for government media programming, such as live-streaming city council meetings.
The “Equal Access to Broadband Act” also would have allowed cities to negotiate with the broadband companies to ensure equal broadband access within their communities.
The bill (HF4182/SF4262) is included in the House’s commerce omnibus bill, but Democratic-Farmer-Labor lawmakers are expected to cut the provision on the House floor Monday. The Senate has not held a hearing on the bill this session.
Freiberg spoke to the Reformer before his DFL colleagues moved to cut the bill from the commerce omnibus package. He said it would ensure residents get equal internet access in their communities.
“This will actually be a benefit to residents, both whether they’re low-income or high-income, because a lot of low-income parts of cities are not afforded the same level of internet service that there are in wealthier parts,” Freiberg said.
The franchise fee model is similar to city fees on cable companies. Frieberg said with the decline of people using cable, cities are struggling to pay for their public programming like council and school board meetings.
Minnesota would be the first state in the nation with a broadband franchising fee.