Newark cable service would be affected by a proposal in the state senate

The City of Newark makes a sizable chunk of change in the hidden tax collected for it by Time Warner through what is known as the franchise fee, which is 3 percent of gross.

That tax could be jacked up by a bill in the Ohio Senate that would take from local government entities the power to enter into cable agreements and hand it over to the state government, but the city profit could be as much as 5 percent.

Though there are many disadvantages to local governments, the hidden tax of 5 percent instead of 3 percent might be a convincing carrot for the state.

Newark uses this tax, according to a resolution passed in March 2001 as follows: 60 percent for city parks, 30 percent for capital improvements; and 10 percent for litter prevention. That may have been changed, but there is no record of it filed with the franchise agreement.

You can read about Senate Bill 117 here.

Also, the Dispatch today published an article about Ohio cities' negative reaction to the proposal.

Ohio Senate Bill 117 proposes to take the regulatory authority for cable television, or "video service" (which probably includes far more than cable TV) from communities like Newark and deposit it in the lap of the state director of commerce.

There would be no more competitive service agreements between cable providers and the Ohio communities they serve. There would be no PUCO authority for oversight. There would be a single political appointee in charge.

This bill would prohibit communities from collecting fees or making any requirements on the providers. Instead it would require the VSP (video service provider) to pay a "quarterly fee" not to exceed 5% percent of gross revenue, and to include that fee in its bills to subscribers. It authorizes the VSP to construct and operate a video service network in, along, across, or on public rights-of-way, and - you guessed it - private property.

It excludes the VSP from paying sales and use taxes and it removes the authority by townships to enter cable service contracts for unincorporated areas.

The bill is sponsored by Jacobson, R. Miller, Spada, Buehrer, Mumper, Niehaus, Stivers, and Mason.

If there is supposed to be an advantage to anyone other than state bureaucrats and multi-national corporations, it isn't evident anywhere in the wording of this bill.

And nowhere have I read about the most important consideration of all - what is best in terms of service to Ohio consumers. Instead, we're hearing only about what is best for government entities - not protection of citizens, but of turf.