Comprehensive review of various state telecom taxes is proposed i...

structure,” measure said. It would direct Legislative Analyst to evaluate justifications for levies and equitable treatment of taxpayers. Bill would extend until Jan. 2004 current moratorium on taxes on Internet access, use of online computer services, bandwidth tax and any discriminatory tax on online computer service or Internet access. Intent is to offset scheduled sunset of Cal. Internet Freedom Act Jan. 1, 2002. Measure also would extend prohibition on cities’ requiring franchise fees for cable-delivered Internet services if FCC or court of competent jurisdiction ruled cable modem service wasn’t cable service. Meanwhile, cable is fighting for safeguards against “unfair” competition potential of another bill (SB 23X) that would make it easier for cities to enter energy business in wake of problems of investor-owned utilities (IOUs). Cable anticipated that bill, which would allow new municipal utility districts (MUDs) to acquire IOU infrastructure, including utility poles, could result in cities’ jumping into cable business and raising rates for pole attachments. Cable didn’t want fast-track process to allow MUDs to compete with cable and telecom companies in “unfair manner,” Cal. Cable TV Assn. Govt. Affairs Dir. Gilbert Martinez said. Referring to recent amendments to address cable’s concerns, he said one that would bar MUDs from entering retail cable business wouldn’t suffice because city-owned utilities still could form partnerships with overbuilders such as RCN Corp. and lease their fiber on advantageous terms. What’s needed is level playing field provisions, he said. As for proposed freeze on pole attachment rates for 5 years, Martinez said that still left room for increases after 5 years. Cable wanted new formula for pole attachment rates charged by new MUDs, he said.