BILL NUMBER:S2097

TITLE OF BILL:
An act
to amend the public service law, in relation to prohibiting providers of
multichannel video programming from entering into exclusive marketing
agreements with the owner or manager of a residential multiple dwelling
unit

PURPOSE OR GENERAL IDEA OF BILL:
To prohibit any
provider of
multichannel video programming from entering into an exclusive
marketing agreement with the owner, lessor or manager of a multiunit
building.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would amend the
Public Service Law by adding a new subdivision (4) to Section 228 that
would prohibit building owners, lessors, managers, or those managing
or controlling a multiunit building, from entering into or renewing
exclusive marketing agreements with regard to multichannel video
programming services. The bill also defines the term "exclusive
marketing agreement."

JUSTIFICATION:
              

Existing New York law prohibits exclusive
access agreements that allow a landlord to bar cable television
companies from entering upon the property of a multiple dwelling unit
(MDU), exacting payment to allow access, or discriminating against
operators who wish access to offer cable television service. Current
law, however, permits a landlord to enter an exclusive marketing
agreement, which enables a cable television company to obtain the
exclusive right to market video service in a residential building by,
among other things, providing marketing materials in the leasing
office or installing signage in common areas of the building.

This bill bars such exclusive marketing agreements so that residents
of MDUs can enjoy the benefits of competition among cable television
operators. The bill ensures that MDU residents receive equal access
to information about their choice of cable provider, thereby allowing
MDU residents to obtain the best product at the lowest price.

This bill does not abrogate existing contracts or prohibit bulk sales
agreements. The Contract Clause likely voids any attempt to abrogate
these previously entered into agreements. Bulk sales agreements,
which often reduce the cost of cable television for MDU residents,
would still be permitted. Further, the bill does not require
landlords to provide access for marketing purposes, simply that any
such access must be granted in a non-discriminatory fashion.

PRIOR LEGISLATIVE HISTORY:

None.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:
None.

EFFECTIVE DATE:
This act shall take effect immediately.