LANSING – The Michigan House Energy and Technology Committee will have at least one more hearing on legislation that would, over the next few years, move all cable television service to a statewide franchise system. But committee Chair Rep. Mike Nofs (R-Battle Creek) said he also planned further private discussions with some of the key groups involved in the issue before declaring a version of the bill ready to report.

With discussion limited Wednesday, most of the concerns raised about the new bill (HB 6546 ) surrounded public, education and government access channels. As with prior bills on the cable television issue, supporters of the stations argued the plan would potentially mean their demise, while opponents of the stations applauded that possibility.

As introduced, the bill would require new competitors in a market to provide at least as many public education and government channels as the incumbent provider does and requires the PEG channel operators to interconnect with the new carrier.

Dale Geminder, executive director of Access Vision in Battle Creek, said provisions in the bill that deduct right of way fees from the franchise fees could mean a funding hit to the PEG channels.

“For our facilities, we need 3 percent of franchise fees to operate,” he said. “We have 1 percent in this.”

And he said passing the funding directly to the local governments, rather than having a portion go to the PEG operators as many franchise agreements provide, would put them at further risk because the local governments could decide to keep the money for themselves.

But some committee members argued the PEG programming should be funded by those who want to watch it, not by all cable subscribers.

“I don’t want to pay for PEG channels; I don’t want to pay for other people’s build out requirements; I just want to pay for what I want to see,” said Rep. Leon Drolet (R-Clinton Township).

Geminder said cable packages routinely include channels some subscribers do not watch. “I don’t watch MTV but I have to pay for it on my cable bill,” he said.

Nofs said he had tried in this bill to accommodate all of the concerns that had been raised on previous cable competition bills.

“I’m trying to do everything I can to allow industry to come in and make a business decision,” Nofs said. “But I want as many people to have access to the service as possible.”

Under the bill, new cable television providers would be required to seek a 10-year license from the Public Service Commission. But they would also be required to notify the communities where they plan to offer service.

The local communities could then charge the new provider essentially the same franchise fee they charge the incumbent provider with adjustments made for the right of way fees. Those fees would be paid directly to the local government.

The bill also requires that any new provider develop a plan to offer service throughout each community it serves. It would be prohibited from excluding poorer neighborhoods, but would be allowed to use wireless and other technology to reach various parts of the community as long as the programming choices are the same.

The bill also includes provisions for communities and incumbent cable providers to agree to end current franchise agreements early.

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