December 9, 2005
Issue #47-2005
The Legislature is
in recess until
January 4.
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Visit the League of
California Cities
website at
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billsearch.
ECONOMIC DEVELOPMENT IN THE NEWS ECONOMIC DEVELOPMENT IN THE NEWS ECONOMIC DEVELOPMENT IN THE NEWS ECONOMIC DEVELOPMENT IN THE NEWS ECONOMIC DEVELOPMENT IN THE NEWS
IDENTITY THEFT SUMMIT TO BE IDENTITY THEFT SUMMIT TO BE IDENTITY THEFT SUMMIT TO BE IDENTITY THEFT SUMMIT TO BE IDENTITY THEFT SUMMIT TO BE HELD IN FEBRUARY HELD IN FEBRUARY HELD IN FEBRUARY HELD IN FEBRUARY HELD IN FEBRUARY
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Technological advances in telecommunications are creating enormous
pressure in Congress and throughout the United States for regulatory reforms
that could dramatically affect cities’ ability to protect consumers and public rights-
of-way, and maintain revenues needed for local services. For more, see Page 4.
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TELECOM IN THE NEWS TELECOM IN THE NEWS TELECOM IN THE NEWS TELECOM IN THE NEWS TELECOM IN THE NEWS
House action on legislation aimed at updating telecommunications laws
likely will wait until next year as a bipartisan group of lawmakers work on a
deal on a variety of complex issues, from regulating online video services to
setting rules to ensure consumers have unfettered access to the Web.
For more, see Page 3.
NEGOTIATIONS PUSH HOUSE ACTION ON OVERHAULING NEGOTIATIONS PUSH HOUSE ACTION ON OVERHAULING NEGOTIATIONS PUSH HOUSE ACTION ON OVERHAULING NEGOTIATIONS PUSH HOUSE ACTION ON OVERHAULING NEGOTIATIONS PUSH HOUSE ACTION ON OVERHAULING
TELECOM LAW INTO NEXT YEAR TELECOM LAW INTO NEXT YEAR TELECOM LAW INTO NEXT YEAR TELECOM LAW INTO NEXT YEAR TELECOM LAW INTO NEXT YEAR
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INITIATIVES TARGET USE OF EMINENT DOMAIN INITIATIVES TARGET USE OF EMINENT DOMAIN INITIATIVES TARGET USE OF EMINENT DOMAIN INITIATIVES TARGET USE OF EMINENT DOMAIN INITIATIVES TARGET USE OF EMINENT DOMAIN
Three voter initiatives have been filed with the Attorney General targeted at
eliminating the use of eminent domain for any property that would not be
owned and used by a public entity. For more, see Page 3.Visit the League’s Official Website--www.cacities.org PAGE 2 - PRIORITY FOCUS
December 9, 2005 - Issue #47
The following was sent to the League from the
California Association for Local Economic Devel-
opment:
LAEDC Speaks Out on Business Climate
The Los Angeles County Economic Develop-
ment Corporation called on state officials to
improve California’s business climate with a letter
asking “Why haven’t we learned our Economic
Development 101 lesson yet?” Visit
www.dailybreeze.com to read the article titled
“Group Urges Drive to Save Local Jobs.”
Biotech Jobs Needed Here
BayBio is seeking to build political support for
biotech manufacturing. Visit www.bizjournals.com
to read the full article.
“County to County Commuting by California
Residents”
This article contains maps for 25 counties that
show the number of commuters to and from
surrounding counties. Visit
www.labormarketinfo.edd.ca.gov to read the full
article.
Economic Development Resources You
Should Know About
Access links to important economic develop-
ment contacts at www.don-iannone.com, in the
article titled “Important ED Resources You Should
Know About.”
Reading List for Beginners
Access links to beneficial books, reports, and
articles regarding economic development issues
at www.don-iannone.com, in the article titled “ED
Reading List for Beginners.”
ECONOMIC DEVELOPMENT IN THE NEWS ECONOMIC DEVELOPMENT IN THE NEWS ECONOMIC DEVELOPMENT IN THE NEWS ECONOMIC DEVELOPMENT IN THE NEWS ECONOMIC DEVELOPMENT IN THE NEWS
Identity theft is a growing problem throughout
society, affecting city residents, businesses and
local law enforcement. As a result, the League of
California Cities is delighted to take part in the
2006 Identity Theft Summit as a member of the
Advisory Committee.
The summit will provide city officials with the
opportunity to become better educated on issues
relating to identity theft and steps that cities can
take to combat it. The summit will take place in
Los Angeles on February 23, 2006, and will be
presented by Gov. Schwarzenegger, the California
Consumer Services Agency, the California State
Department of Consumer Affairs, and the Califor-
nia Office of Privacy and Protection. It will be
hosted by the California District Attorneys Associa-
tion.
For more information, please visit
www.idtheftsummit.ca.gov or contact League
Legislative Analyst Leticia Farris at (916) 658-8214
or lfarris@cacities.org.
IDENTITY THEFT SUMMIT TO BE IDENTITY THEFT SUMMIT TO BE IDENTITY THEFT SUMMIT TO BE IDENTITY THEFT SUMMIT TO BE IDENTITY THEFT SUMMIT TO BE
HELD IN FEBRUARY HELD IN FEBRUARY HELD IN FEBRUARY HELD IN FEBRUARY HELD IN FEBRUARY
The League wants to stay in touch!
Just because you are leaving your position
with the city doesn’t mean you stop caring
about or wanting to be involved in city
issues. Keep abreast of developments
affecting cities and the League by becom-
ing part of the League’s alumni group.
Members will receive periodic updates on
city issues and League activities. This is
the League’s way of saying “thank you” for
your public service—there is no fee for this
service.
To join, go to www.cacities.org/alumni
or send your contact information to
dharrison@cacities.org.
Leaving City Office? Retiring?PRIORITY FOCUS - PAGE 3 Visit the League’s Official Website--www.cacities.org
December 9, 2005 - Issue #47
EMINENT DOMAIN EMINENT DOMAIN EMINENT DOMAIN EMINENT DOMAIN EMINENT DOMAIN from page 1 from page 1 from page 1 from page 1 from page 1 ? ?????
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Joe L. Barton, R-Texas, chairman of the House
Energy and Commerce Committee, had been
hoping a subcommittee of his panel would mark up
draft telecommunications legislation next week. But
the chairman agreed Thursday to postpone that
plan, aides to committee members said, because
both Republicans and Democrats on the panel
said they needed more negotiating time.
Barton has said he wants to enact legislation
sooner rather than later that would update the
Telecommunications Act of 1996 (PL 104-104) and
set new rules for Internet-based video and voice
services.
But winning consensus among industry stake-
holders has been challenging. A draft bill, intro-
duced in September, ran into substantial opposition
from regional Bell phone companies which thought
it would not provide enough regulatory relief. A
second draft measure, released last month, ad-
dressed the Bells’ concerns, but flopped with
Democrats, forcing the chairman to push back his
time line further.
The Senate Commerce, Science and Trans-
portation Committee also plans to take up telecom-
munications legislation early next year. Chairman
Ted Stevens, R-Alaska, has scheduled a series of
hearings on telecommunications issues for after
the holiday recess and also is said to be working
on a draft bill.
Barton’s panel is farther along and key mem-
bers of his committee plan to meet next week to try
to make headway on their legislation. Among those
participating in the committee’s informal talks are
Barton; Vice Chairman Charles W. “Chip”
Pickering Jr., R-Miss.; ranking Democrat John D.
Dingell of Michigan; Fred Upton, R-Mich., chairman
of the subcommittee on Telecommunications and
the Internet; and Edward J. Markey of Massachu-
setts, the subcommittee’s ranking Democrat.
”This is the beginning of a conversation at the
member level, where we can explain our positions,
understand each other’s goals for the bill and duly
consider what consequences different proposals
Continued on Page 5
Sen. Tom McClintock, Orange County Super-
visor Chris Norby, and Jon Coupal, President of
the Howard Jarvis Taxpayers Association, sub-
mitted two measures last week, one of which is
also sponsored by Assemblymember Doug
LaMalfa. A third was filed this week signed by
Douglas Adams McNea and Karin Annette
Hipona. McNea is a Republican candidate for the
16th Congressional District. Hipona is a trustee
with the Jefferson Union High School District in
San Mateo County.
The common thread in these measures is
that they are attempting to capitalize on the issue
raised in the U.S. Supreme Court case, Kelo v.
Town of New London, to make broad, sweeping
changes in property rights law that would favor
landowners over public investment.
• Homeowners and Private Property
Protection Act of 2006. The first of the
McClintock/Norby/Coupal measures, this initiative
would make sweeping changes to the calculation
of just compensation. It defines the terms “taken”
and “damaged” to include any action that reduces
the use of property in whole or in part and would
require compensation for these actions. It also
includes a prohibition regulating resale and rental
programs that would effectively transform most
inclusionary housing programs into compensable
takings. Additionally, it includes a limited reacqui-
sition right and requires attorneys’ fees when a
court or jury awards a value that is higher than
the original offer.
• California Property Owner Protection
Act. The second McClintock/Norby/Coupal
measure focuses more on the means of com-
pensation, providing that condemnation for
economic development must be conditioned on
the owner’s permission. The measure also goes
beyond that, by applying additional conditions to
ALL eminent domain actions. It includes provi-
sions for an owner’s perpetual right of reacquisi-
tion, requiring attorneys’ fees when the agency’s
original offer is lower than a court award, and
makes these changes retroactive to June 23,
2005, (the date of the Kelo decision).Visit the League’s Official Website--www.cacities.org PAGE 4 - PRIORITY FOCUS
December 9, 2005 - Issue #47
The League plans to run “Telecom in the News” in
Priority Focus at least every other week, to spotlight
events and trends of interest to city officials.
BellSouth Withdraws Donation Over Wireless
Network
In New Orleans, La., BellSouth Corp. has with-
drawn an offer to donate one of its buildings in the
area that would have served as the new police
headquarters.
According to city officials, BellSouth was angered
over New Orleans’ plan to unveil a city-owned wire-
less Internet network that would bring high-speed
Internet service for free to homes and businesses in
New Orleans, in an effort to jump-start resettlement
and relocation in the city.
For the complete story, visit
www.washingtonpost.com and search for the article
titled “Angry BellSouth Withdrew Donation, New
Orleans Says.”
Lafayette Mayor Claims Phone Company Trying
to Hinder Broadband Plan
Local officials in Lafayette, La., have become
frustrated with the alleged efforts of BellSouth to block
the city’s plan to build an advanced broadband
network.
In an article run by USA Today, Gene Kimmelman
of Consumers Union commented that the blockage of
municipal governments from entering the broadband
market would have adverse effects on the ability of
citizens to afford high-speed Internet services.
For the complete story, visit www.usatoday.com
and search for the article titled “Bells Dig in to Domi-
nate High-Speed Internet Realm.”
Verizon Calls N.J. Legislation a ‘Barrier to Entry’
Recently, New Jersey introduced the first draft of
A4430 – a bill aimed at authoring a statewide fran-
chise for certain providers of cable-television ser-
vices, and specifies that a complete telecommuni-
cations buildout of the state would be required in six
years.
Verizon Communications, which had lobbied
New Jersey for the bill, now considers the current
draft to be a barrier to entry.
For the complete story, visit
www.multichannel.com and search for the article
titled “Surprise for Verizon in N.J.”
Poll Shows N.J. Residents Prefer Local Cable
Franchises
In a recent poll conducted by Penn, Schoen, &
Berland for the New Jersey Cable T elecommunica-
tions Association, 68 percent of New Jersey resi-
dents are not interested in cable television competi-
tion if it requires payment of Verizon’s cable tax
through higher franchise fees.
In addition, 75 percent of the poll respondents
said they preferred local cable franchises over
statewide cable television franchises.
For the complete story, visit
www.prnewswire.com and search for the article
titled “New Poll Shows New Jersey Residents
Strongly Reject Verizon’s Cable T ax.”
WiMax to be Tested in Taiwan
WiMax, a technology intended to provide users
with wireless, high-speed Internet access at much
greater distances than Wi-Fi, will be tested in
T aiwan.
Intel has agreed to work with the country to
develop the technology, and test it on an island-wide
basis.
For the complete story, visit www.pcworld.com
and search for the article titled “Taiwan T ests Island-
Wide WiMax.”
TELECOM IN THE NEWS TELECOM IN THE NEWS TELECOM IN THE NEWS TELECOM IN THE NEWS TELECOM IN THE NEWS from page 1 from page 1 from page 1 from page 1 from page 1
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December 9, 2005 - Issue #47
may have for our local communities, consumers
and competition,” Markey said.
The negotiations to write a third draft bill are
expected to focus in large part on whether fran-
chising rules should apply to new broadband video
services. The Bell companies are beginning to
offer such features over their fiber-optic networks
and compete head-to-head with cable television
operators.
Aides to several committee members said
there is general consensus that new broadband
video services should be subject to a national
franchise agreement, rather than the local fran-
chise agreements that now govern cable compa-
nies.
The Bells say that being forced to negotiate
franchise agreements on a city-by-city or county-
by-county basis could delay the roll out of new
broadband video services.
But lawmakers are still arguing over how to
define broadband vide> service and under what
conditions a national franchise should be allowed.
Members also are debating whether cable TV
operators should also be able to obtain a national
franchise in certain circumstances.
”There is a parity issue here that we are trying
to resolve,” Pickering said.
In addition, Democrats want to ensure that
municipalities, which fear losing their franchising
powers, would still be able to require video opera-
tors to provide channels for public, educational
and government use and communications net-
works for police officers, firefighters and other
local officials.
Democrats also are pushing for tougher
language on “Net neutrality” -- a stipulation that
broadband providers cannot block customers
from accessing certain Web sites and services.
Democrats have warned that without such protec-
tions, broadband companies could prevent cus-
tomers from accessing online services, such as
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phone or video, offered by their competitors.
Virginia Democrat Rick Boucher, a member of
Upton’s subcommittee, said some Internet com-
panies, including Google Inc. and Yahoo Inc., also
are concerned that broadband providers could
charge them a toll to reach Web users.
There is widespread support for a “Net neutral-
ity” provision, but members are still debating what
exceptions should apply to ensure that broadband
providers can keep their networks secure, prevent
users from hogging bandwidth and offer services
such as spam filters.
Democrats are also pushing for language that
would require broadband providers to make high-
speed Internet access widely available, and not
just roll out their services in lucrative urban and
suburban markets.
Source: CQ Today
This story was reprinted with permission.
Author: Joelle Tessler, CQ staff, with contri-
butions from Amol Sharma.
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LOOKING FOR CALIFORNIA’S BEST TO LOOKING FOR CALIFORNIA’S BEST TO LOOKING FOR CALIFORNIA’S BEST TO LOOKING FOR CALIFORNIA’S BEST TO LOOKING FOR CALIFORNIA’S BEST TO
FILL A POSITION IN YOUR CITY? FILL A POSITION IN YOUR CITY? FILL A POSITION IN YOUR CITY? FILL A POSITION IN YOUR CITY? FILL A POSITION IN YOUR CITY?Visit the League’s Official Website--www.cacities.org PAGE 6 - PRIORITY FOCUS
December 9, 2005 - Issue #47
Filing initiatives with the Attorney Gen-
eral (AG) is the first required step leading to
qualifying a measure for a statewide ballot.
The AG’s office has to prepare a “title and
summary” of the primary points and pur-
pose of the initiative which are returned to
the sponsors and sent to the Secretary of
State. This language is then used to print
petitions that will be circulated for signa-
tures by registered voters. Signatures
collected will then be filed with appropriate
county officials who determine the total
number of valid signatures on the petitions
and report that to the Secretary of State.
The Secretary of State will then deter-
mine whether the total number of signa-
tures is sufficient to qualify the initiative for
the ballot. The sponsors’ goal will likely be to
collect about 1 million signatures to assure
enough valid signatures are on the petitions
to qualify any of the measures.
HOW AN INITIATIVE GETS HOW AN INITIATIVE GETS HOW AN INITIATIVE GETS HOW AN INITIATIVE GETS HOW AN INITIATIVE GETS
TO THE BALLOT TO THE BALLOT TO THE BALLOT TO THE BALLOT TO THE BALLOT
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• The California Eminent Domain Limita-
tions Act. The McNea/Hipona measure requires a
jury to determine just compensation before a taking
of private property through eminent domain, and
prohibits taking private property for economic
development purposes. It includes within the
definition of “economic development” takings, “to
increase tax revenue, tax base, employment,
housing density, or general economic health.”
Measures Could Undermine Housing Efforts,
Encourage Sprawl
The likely effect of these proposals — if they
qualify for the ballot and are approved by the voters
– could be to significantly limit efforts by cities and
redevelopment agencies to revitalize blighted
areas, thereby condemning many economically
stressed neighborhoods to a continuing downward
spiral. The measures could make it much harder to
build in-fill projects, and thus could force new
housing growth into surrounding open space and
farmland.
Taken as a whole, these measures all forward a
substantial reconstruction of eminent domain that
would significantly undermine the ability of the state
and local governments to make public investments
in roads, schools, housing and other essential
infrastructure. In other words, they go well beyond
the issue raised in Kelo, which was the extent to
which land could be taken as part of a broader
economic development plan.
The League of California Cities will not consider
adopting a formal position on these or other mea-
sures until they have actually qualified for the ballot.
(See “How an Initiative Gets to the Ballot”.)