Austin, TX – channelAustin enthusiastically supports the Community Access Preservation (CAP) Act (H.R. 3745) introduced today by Representative Tammy Baldwin (D-WI).

If passed, the CAP Act will address some of the most crucial issues currently facing public, educational, and government (PEG) channels.

The City of Austin’s franchise agreement with Time Warner Cable expires in August 2011 and TWC will then opt for a statewide certificate of franchise authority.

“The CAP Act will eliminate a barrier that restricts the use of PEG monies,” said channelAustin Communications Director Stefan Wray. “The way the federal law now reads, PEG funds that Time Warner Cable will pay to the City after 2011 cannot go toward the operations of channelAustin, but only for capital equipment.”

According to Texas’ Public Utility Regulatory Act (PURA), amended in 2005, Time Warner Cable will continue, after 2011, to pay 1% of its revenue generated in Austin to the City for PEG purposes. However, because of a conflict with the federal Cable Act, this 1%, which amounts to more than $1 million annually, may only be used for capital equipment and not for day to day operations of PEG channels.

The CAP Act amends the federal Cable Act to allow these PEG funds that the cable company must pay the City to be used for any purpose, including operations.

“The introduction of the CAP Act in Washington is very important,” said channelAustin Executive Director Linda Litowsky. “This concrete step addresses the discrepancies in the Cable Act that puts our operational funds in question. The Baldwin bill gives us hope we’ll be around for longer than two more years.”

Yesterday, it was announced that Dallas iMedia Network, Dallas’ community television, will shut its doors due to lack of operating funds from the City. channelAustin’s worries are not unfounded.

channelAustin is a non-profit 501(c3), contracted with the City to manage the digital community media center and television studios located in East Austin.