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Louisiana Governor Vetoes Statewide Cable Franchise Legislation

6:30 am on July 14, 2006 | Category: Business, Regulation, Telecom Services, Television

Louisiana Governor, Kathleen Babineaux Blanco, has vetoed a bill that would have allowed for statewide cable franchising, saying that it could have interfered with the contractual rights of cable incumbents and local authorities.

If passed, bill HB699 could have caused financial uncertainty to local governments, Blanco claimed in a letter to state Senators. She wrote that the legislation could cause “significant revenue loss to local government,” meaning that “traditional vital services for our citizens would have to be cut or those citizens may be asked to pay increased taxes.”

In other words, the Governorâ€™s primary reason for the veto is to minimize the efficiency of cable franchising, so as to capture more tax dollars from providers.

The vetoed legislation, which would have limited the approval time for a statewide franchise to just 10 days, will now be sent back to the House of Representatives for modification.

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