State Legislative - Week of February 26, 2010

 

Legislative Introduction Deadline. Last Friday, February 19th was the deadline for legislators to introduced new legislation. CCTA has identified sixty-five legislative proposals that have either been recently amended or introduced which are of interest to our industry.  CCTA is currently analyzing these bills and in the process of working with each of our clients to determine our positions.  If you are interested in viewing the legislation you can do so at our website, www.calcable.org, under the “Governmental Relations” subject area.

 

Municipal Utility Pole Attachments. CCTA continues to meet with legislators to educate them on the increasing costs of attaching cable infrastructure to municipal utility poles. Legislators have been receptive to the cable industry’s concern that some municipal utility pole attachment rates have been significantly increasing without much justification.

In addition to meeting with legislators from our key policy committees, CCTA also met with representatives from the municipal utilities association. After expressing our concerns with raising municipal utility pole rates, the association representatives state that they will raise the issue with their members to first understand the cause and discuss potential solutions. CCTA informed the association that CCTA is currently educating legislators on the matter and will consider introducing legislation at some point.

 

In January, Governor Schwarzenegger called for a special legislative session, calling on the legislature to address the state’s $20 billion budget deficit.  Under the California Constitution, upon the call of a special session based on a fiscal emergency the legislature has 45-days to act or they are precluded from acting on any non budget related legislation until they send legislation to the Governor to address the emergency.  With Monday, February 22, 2010, being the deadline, the Legislature responded by approving several budget solutions, including shifting gas taxes, reducing some corporate tax credits such as rolling back the net operating loss credit, and tougher tax enforcement programs, totaling a little over $2 billion in savings.  The Governor has not stated if he will approve of the legislation, but is expected to act next week. 

It appears that the Legislature is putting off more controversial budget solutions until the new revenue forecasts are released in May and until they determine if California will receive any additional federal funds, if any.