LBD14629-01-6
A. 9581 2
DIRECTLY ASSOCIATED WITH THE LABOR OR THE EQUIPMENT OF A SERVICE PROVID-
ER THAT IS NECESSARILY AND DIRECTLY USED TO PROVIDE WHAT WERE, UNDER A
SUPERSEDED FRANCHISE, IN-KIND SERVICES, EXCLUSIVE OF ANY PROFIT OR OVER-
HEAD SUCH AS DEPRECIATION, AMORTIZATION, OR ADMINISTRATIVE EXPENSE.
2. "CABLE SERVICE" IS DEFINED AS SET FORTH IN 47 U.S.C. SECTION
522(6).
3. "CABLE SERVICE PROVIDER" MEANS A PERSON WHO PROVIDES CABLE SERVICE.
4. "COMMUNICATIONS NETWORK" MEANS A COMPONENT OR FACILITY THAT IS,
WHOLLY OR PARTLY, PHYSICALLY LOCATED WITHIN A PUBLIC RIGHT-OF-WAY AND
THAT IS USED TO PROVIDE VIDEO PROGRAMMING, CABLE, VOICE, OR DATA
SERVICES.
5. "FRANCHISE" MEANS AN INITIAL AUTHORIZATION, OR RENEWAL OF AN
AUTHORIZATION, ISSUED BY A FRANCHISING AUTHORITY, REGARDLESS OF WHETHER
THE AUTHORIZATION IS DESIGNATED AS A FRANCHISE, PERMIT, LICENSE, RESOL-
UTION, CONTRACT, CERTIFICATE, AGREEMENT, OR OTHERWISE, THAT AUTHORIZES
THE CONSTRUCTION AND OPERATION OF A CABLE OR VIDEO SERVICES NETWORK IN
THE PUBLIC RIGHTS-OF-WAY.
6. (A) "GROSS REVENUES" MEANS ALL CONSIDERATION OF ANY KIND OR NATURE
INCLUDING, WITHOUT LIMITATION, CASH, CREDITS, PROPERTY, AND IN-KIND
CONTRIBUTIONS (SERVICES OR GOODS) DERIVED BY THE HOLDER OF A STATE-IS-
SUED CERTIFICATE OF FRANCHISE AUTHORITY FROM THE OPERATION OF THE CABLE
SERVICE PROVIDER'S OR THE VIDEO SERVICE PROVIDER'S NETWORK TO PROVIDE
CABLE SERVICE OR VIDEO SERVICE WITHIN THE MUNICIPALITY. GROSS REVENUE
SHALL INCLUDE ALL CONSIDERATION PAID TO THE HOLDER OF A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY AND ITS AFFILIATES (TO THE EXTENT
EITHER IS ACTING AS A PROVIDER OF A CABLE SERVICE OR VIDEO SERVICE AS
AUTHORIZED BY THIS ARTICLE), WHICH SHALL INCLUDE BUT NOT BE LIMITED TO
THE FOLLOWING: (I) ALL FEES CHARGED TO SUBSCRIBERS FOR ANY AND ALL CABLE
SERVICE OR VIDEO SERVICE PROVIDED BY THE HOLDER OF A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY; (II) ANY FEE IMPOSED ON THE HOLDER
OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY BY THIS ARTICLE
THAT IS PASSED THROUGH AND PAID BY SUBSCRIBERS (INCLUDING, WITHOUT LIMI-
TATION, THE FRANCHISE FEE SET FORTH IN THIS ARTICLE); AND (III) COMPEN-
SATION RECEIVED BY THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY OR ITS AFFILIATES THAT IS DERIVED FROM THE OPERATION OF THE
HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY'S NETWORK TO
PROVIDE CABLE SERVICE OR VIDEO SERVICE WITH RESPECT TO COMMISSIONS THAT
ARE PAID TO THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY AS COMPENSATION FOR PROMOTION OR EXHIBITION OF ANY PRODUCTS OR
SERVICES ON THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY'S NETWORK, SUCH AS A "HOME SHOPPING" OR A SIMILAR CHANNEL,
SUBJECT TO SUBPARAGRAPH (V) OF PARAGRAPH (B) OF THIS SUBDIVISION. GROSS
REVENUE INCLUDES A PRO RATA PORTION OF ALL REVENUE DERIVED BY THE HOLDER
OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY OR ITS AFFILIATES
PURSUANT TO COMPENSATION ARRANGEMENTS FOR ADVERTISING DERIVED FROM THE
OPERATION OF THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY'S NETWORK TO PROVIDE CABLE SERVICE OR THE VIDEO SERVICE WITHIN
A MUNICIPALITY, SUBJECT TO SUBPARAGRAPH (III) OF PARAGRAPH (B) OF THIS
SUBDIVISION. THE ALLOCATION SHALL BE BASED ON THE NUMBER OF SUBSCRIBERS
IN THE MUNICIPALITY DIVIDED BY THE TOTAL NUMBER OF SUBSCRIBERS IN
RELATION TO THE RELEVANT REGIONAL OR NATIONAL COMPENSATION ARRANGEMENT.
ADVERTISING COMMISSIONS PAID TO THIRD PARTIES SHALL NOT BE NETTED
AGAINST ADVERTISING REVENUE INCLUDED IN GROSS REVENUE. REVENUE OF AN
AFFILIATE DERIVED FROM THE AFFILIATE'S PROVISION OF CABLE SERVICE OR THE
VIDEO SERVICE SHALL BE GROSS REVENUE TO THE EXTENT THE TREATMENT OF SUCH
REVENUE AS REVENUE OF THE AFFILIATE AND NOT OF THE HOLDER OF A STATE-IS-
A. 9581 3
SUED CERTIFICATE OF FRANCHISE AUTHORITY HAS THE EFFECT (WHETHER INTEN-
TIONAL OR UNINTENTIONAL) OF EVADING THE PAYMENT OF FEES WHICH WOULD
OTHERWISE BE PAID TO THE MUNICIPALITY. IN NO EVENT SHALL REVENUE OF AN
AFFILIATE BE GROSS REVENUE TO THE HOLDER OF A STATE-ISSUED CERTIFICATE
OF FRANCHISE AUTHORITY IF SUCH REVENUE IS OTHERWISE SUBJECT TO FEES TO
BE PAID TO THE MUNICIPALITY.
(B) FOR PURPOSES OF THIS SECTION, "GROSS REVENUES" DOES NOT INCLUDE:
(I) ANY REVENUE NOT ACTUALLY RECEIVED, EVEN IF BILLED, SUCH AS BAD
DEBT;
(II) NON-CABLE SERVICES OR NON-VIDEO SERVICES REVENUES RECEIVED BY ANY
AFFILIATE OR ANY OTHER PERSON IN EXCHANGE FOR SUPPLYING GOODS OR
SERVICES USED BY THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY TO PROVIDE CABLE SERVICE OR VIDEO SERVICE;
(III) REFUNDS, REBATES, OR DISCOUNTS MADE TO SUBSCRIBERS, LEASED
ACCESS PROVIDERS, ADVERTISERS, OR A MUNICIPALITY;
(IV) ANY REVENUES FROM SERVICES CLASSIFIED AS NON-CABLE SERVICE OR
NON-VIDEO SERVICE UNDER FEDERAL LAW INCLUDING, WITHOUT LIMITATION,
REVENUE RECEIVED FROM TELECOMMUNICATIONS SERVICES; REVENUE RECEIVED FROM
INFORMATION SERVICES (BUT NOT EXCLUDING CABLE SERVICES OR VIDEO
SERVICES); AND ANY OTHER REVENUES ATTRIBUTED BY THE HOLDER OF A
STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY TO NON-CABLE SERVICE OR
NON-VIDEO SERVICE IN ACCORDANCE WITH FEDERAL COMMUNICATIONS COMMISSION
OR COMMISSION RULES, REGULATIONS, STANDARDS, OR ORDERS;
(V) ANY REVENUE PAID BY SUBSCRIBERS TO HOME SHOPPING PROGRAMMERS
DIRECTLY FROM THE SALE OF MERCHANDISE THROUGH ANY HOME SHOPPING CHANNEL
OFFERED AS PART OF THE CABLE SERVICES OR VIDEO SERVICES, BUT NOT EXCLUD-
ING ANY COMMISSIONS THAT ARE PAID TO THE HOLDER OF A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY AS COMPENSATION FOR PROMOTION OR
EXHIBITION OF ANY PRODUCTS OR SERVICES ON THE HOLDER OF A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY'S NETWORK, SUCH AS A "HOME SHOPPING"
OR A SIMILAR CHANNEL;
(VI) THE SALE OF CABLE SERVICES OR VIDEO SERVICES FOR RESALE IN WHICH
THE PURCHASER IS REQUIRED TO COLLECT THIS ARTICLES' FEES FROM THE
PURCHASER'S CUSTOMER. NOTHING UNDER THIS ARTICLE IS INTENDED TO LIMIT
STATE'S RIGHTS PURSUANT TO 47 U.S.C. SECTION 542(H);
(VII) THE PROVISION OF CABLE SERVICES OR VIDEO SERVICES TO CUSTOMERS
AT NO CHARGE, AS REQUIRED OR ALLOWED BY THIS ARTICLE, INCLUDING, WITHOUT
LIMITATION, THE PROVISION OF CABLE SERVICES OR VIDEO SERVICES TO PUBLIC
INSTITUTIONS, AS REQUIRED OR PERMITTED IN THIS ARTICLE, INCLUDING, WITH-
OUT LIMITATION, PUBLIC SCHOOLS OR GOVERNMENTAL ENTITIES, AS REQUIRED OR
PERMITTED IN THIS ARTICLE;
(VIII) ANY TAX OF GENERAL APPLICABILITY IMPOSED UPON THE HOLDER OF A
STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY OR UPON SUBSCRIBERS BY A
CITY, STATE, FEDERAL, OR ANY OTHER GOVERNMENTAL ENTITY AND REQUIRED TO
BE COLLECTED BY THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY AND REMITTED TO THE TAXING ENTITY (INCLUDING, BUT NOT LIMITED
TO, SALES AND USE TAX, GROSS RECEIPTS TAX, EXCISE TAX, UTILITY USERS
TAX, PUBLIC SERVICE TAX, COMMUNICATION TAXES, AND FEES NOT IMPOSED BY
THIS ARTICLE);
(IX) ANY FORGONE REVENUE FROM THE HOLDER OF A STATE-ISSUED CERTIFICATE
OF FRANCHISE AUTHORITY'S PROVISION OF FREE OR REDUCED COST CABLE
SERVICES OR VIDEO SERVICES TO ANY PERSON INCLUDING, WITHOUT LIMITATION,
EMPLOYEES OF THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY, TO THE MUNICIPALITY AND OTHER PUBLIC INSTITUTIONS OR OTHER
INSTITUTIONS AS ALLOWED IN THIS ARTICLE; PROVIDED, HOWEVER, THAT ANY
FORGONE REVENUE WHICH THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRAN-
A. 9581 4
CHISE AUTHORITY CHOOSES NOT TO RECEIVE IN EXCHANGE FOR TRADES, BARTERS,
SERVICES, OR OTHER ITEMS OF VALUE SHALL BE INCLUDED IN GROSS REVENUE;
(X) SALES OF CAPITAL ASSETS OR SALES OF SURPLUS EQUIPMENT THAT IS NOT
USED BY THE PURCHASER TO RECEIVE CABLE SERVICES OR VIDEO SERVICES FROM
THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY;
(XI) DIRECTORY OR INTERNET ADVERTISING REVENUE INCLUDING, BUT NOT
LIMITED TO, YELLOW PAGES, WHITE PAGES, BANNER ADVERTISEMENT, AND ELEC-
TRONIC PUBLISHING; AND
(XII) REIMBURSEMENT BY PROGRAMMERS OF MARKETING COSTS INCURRED BY THE
HOLDER OF A STATE-ISSUED FRANCHISE FOR THE INTRODUCTION OF NEW PROGRAM-
MING THAT EXCEED THE ACTUAL COSTS.
(C) FOR PURPOSES OF THIS DEFINITION, A PROVIDER'S NETWORK CONSISTS
SOLELY OF THE OPTICAL SPECTRUM WAVELENGTHS, BANDWIDTH, OR OTHER CURRENT
OR FUTURE TECHNOLOGICAL CAPACITY USED FOR THE TRANSMISSION OF VIDEO
PROGRAMMING OVER WIRELINE DIRECTLY TO SUBSCRIBERS WITHIN THE GEOGRAPHIC
AREA WITHIN THE MUNICIPALITY AS DESIGNATED BY THE PROVIDER IN ITS FRAN-
CHISE.
7. "INCUMBENT CABLE SERVICE PROVIDER" MEANS THE CABLE SERVICE PROVIDER
SERVING THE LARGEST NUMBER OF CABLE SUBSCRIBERS IN A PARTICULAR MUNICI-
PAL FRANCHISE AREA ON THE EFFECTIVE DATE OF THIS ARTICLE.
8. "PUBLIC RIGHT-OF-WAY" MEANS THE AREA ON, BELOW, OR ABOVE A PUBLIC
ROADWAY, HIGHWAY, STREET, PUBLIC SIDEWALK, ALLEY, WATERWAY, OR UTILITY
EASEMENT IN WHICH A MUNICIPALITY HAS AN INTEREST.
9. "VIDEO PROGRAMMING" MEANS PROGRAMMING PROVIDED BY, OR GENERALLY
CONSIDERED COMPARABLE TO PROGRAMMING PROVIDED BY, A TELEVISION BROADCAST
STATION, AS SET FORTH IN 47 U.S.C. SECTION 522(20).
10. "VIDEO SERVICE" MEANS VIDEO PROGRAMMING SERVICES PROVIDED THROUGH
WIRELINE FACILITIES LOCATED AT LEAST IN PART IN THE PUBLIC RIGHT-OF-WAY
WITHOUT REGARD TO DELIVERY TECHNOLOGY, INCLUDING INTERNET PROTOCOL TECH-
NOLOGY. THIS DEFINITION DOES NOT INCLUDE ANY VIDEO SERVICE PROVIDED BY A
COMMERCIAL MOBILE SERVICE PROVIDER AS DEFINED IN 47 U.S.C. SECTION
332(D).
11. "VIDEO SERVICE PROVIDER" MEANS A VIDEO PROGRAMMING DISTRIBUTOR
THAT DISTRIBUTES VIDEO PROGRAMMING SERVICES THROUGH WIRELINE FACILITIES
LOCATED AT LEAST IN PART IN THE PUBLIC RIGHT-OF-WAY WITHOUT REGARD TO
DELIVERY TECHNOLOGY. THIS TERM DOES NOT INCLUDE A CABLE SERVICE PROVID-
ER.
S 243. STATE AUTHORIZATION TO PROVIDE CABLE SERVICE OR VIDEO SERVICE.
1. AN ENTITY OR PERSON SEEKING TO PROVIDE CABLE SERVICE OR VIDEO SERVICE
IN THIS STATE SHALL FILE AN APPLICATION FOR A STATE-ISSUED CERTIFICATE
OF FRANCHISE AUTHORITY WITH THE COMMISSION AS REQUIRED BY THIS SECTION.
AN ENTITY PROVIDING CABLE SERVICE OR VIDEO SERVICE UNDER A FRANCHISE
AGREEMENT WITH A MUNICIPALITY IS NOT SUBJECT TO THIS SUBSECTION WITH
RESPECT TO SUCH MUNICIPALITY UNTIL THE FRANCHISE AGREEMENT IS TERMINATED
OR UNTIL THE FRANCHISE AGREEMENT EXPIRES. ANY STATE-ISSUED CERTIFICATE
OF FRANCHISE AUTHORITY SHALL NOT INCLUDE ANY CABLE SERVICE OR VIDEO
SERVICE WITHIN A MUNICIPALITY OF ONE MILLION OR MORE.
2. THE COMMISSION SHALL NOTIFY AN APPLICANT FOR A STATE-ISSUED CERTIF-
ICATE OF FRANCHISE AUTHORITY WHETHER THE APPLICANT'S APPLICATION
DESCRIBED BY SUBDIVISION FOUR OF THIS SECTION IS COMPLETE OR INCOMPLETE
AFTER THE APPLICANT SUBMITS THE APPLICATION.
3. THE COMMISSION MAY ESTABLISH A PUBLIC COMMENT PERIOD AFTER RECEIV-
ING A COMPLETED APPLICATION.
4. WITHIN ONE HUNDRED TWENTY DAYS OF RECEIVING THE COMPLETED APPLICA-
TION AND IF THE COMMISSION DETERMINES SUCH ISSUANCE WOULD SERVE THE
PUBLIC INTEREST, THE COMMISSION SHALL ISSUE A CERTIFICATE OF FRANCHISE
A. 9581 5
AUTHORITY TO OFFER CABLE SERVICE OR VIDEO SERVICE AFTER RECEIPT OF A
COMPLETED APPLICATION SUBMITTED BY THE APPLICANT AND SIGNED BY AN OFFI-
CER OR GENERAL PARTNER OF THE APPLICANT AFFIRMING:
(A) THAT THE APPLICANT HAS FILED OR WILL TIMELY FILE WITH THE FEDERAL
COMMUNICATIONS COMMISSION ALL FORMS REQUIRED BY THAT AGENCY IN ADVANCE
OF OFFERING CABLE SERVICE OR VIDEO SERVICE IN THIS STATE;
(B) THAT THE APPLICANT AGREES TO COMPLY WITH ALL APPLICABLE FEDERAL
AND STATE STATUTES AND REGULATIONS;
(C) THAT THE APPLICANT AGREES TO COMPLY WITH ALL APPLICABLE MUNICIPAL
REGULATIONS REGARDING THE USE AND OCCUPATION OF PUBLIC RIGHTS-OF-WAY IN
THE DELIVERY OF THE CABLE SERVICE OR VIDEO SERVICE, INCLUDING THE POLICE
POWERS OF THE MUNICIPALITIES IN WHICH THE SERVICE IS DELIVERED;
(D) A DESCRIPTION OF THE SERVICE AREA FOOTPRINT TO BE SERVED WITHIN
THE MUNICIPALITY, IF APPLICABLE, OTHERWISE THE MUNICIPALITY TO BE SERVED
BY THE APPLICANT, WHICH MAY INCLUDE CERTAIN DESIGNATIONS OF UNINCORPO-
RATED AREAS, WHICH DESCRIPTION SHALL BE UPDATED BY THE APPLICANT PRIOR
TO THE EXPANSION OF CABLE SERVICE OR VIDEO SERVICE TO A PREVIOUSLY
UNDESIGNATED SERVICE AREA AND, UPON SUCH EXPANSION, NOTICE TO THE
COMMISSION OF THE SERVICE AREA TO BE SERVED BY THE APPLICANT;
(E) THE LOCATION OF THE APPLICANT'S PRINCIPAL PLACE OF BUSINESS AND
THE NAMES OF THE APPLICANT'S PRINCIPAL EXECUTIVE OFFICERS; AND
(F) ANY OTHER INFORMATION REQUIRED BY THE COMMISSION.
5. THE CERTIFICATE OF FRANCHISE AUTHORITY ISSUED BY THE COMMISSION
SHALL CONTAIN:
(A) A GRANT OF AUTHORITY TO PROVIDE CABLE SERVICE OR VIDEO SERVICE AS
REQUESTED IN THE APPLICATION;
(B) A GRANT OF AUTHORITY TO USE AND OCCUPY THE PUBLIC RIGHTS-OF-WAY IN
THE DELIVERY OF THAT SERVICE, SUBJECT TO THE LAWS OF THIS STATE, INCLUD-
ING THE POLICE POWERS OF THE MUNICIPALITIES IN WHICH THE SERVICE IS
DELIVERED; AND
(C) A STATEMENT THAT THE GRANT OF AUTHORITY IS SUBJECT TO LAWFUL OPER-
ATION OF THE CABLE SERVICE OR VIDEO SERVICE BY THE APPLICANT OR ITS
SUCCESSOR IN INTEREST.
6. THE CERTIFICATE OF FRANCHISE AUTHORITY ISSUED BY THE COMMISSION IS
FULLY TRANSFERABLE, SUBJECT TO APPROVAL BY THE COMMISSION THAT SUCH
TRANSFER SERVES THE PUBLIC INTEREST, TO ANY SUCCESSOR IN INTEREST TO THE
APPLICANT TO WHICH IT IS INITIALLY GRANTED. A NOTICE OF TRANSFER AND A
PUBLIC INTEREST STATEMENT SHALL BE FILED WITH THE COMMISSION AND EACH
RELEVANT MUNICIPALITY PRIOR TO THE TRANSFER.
7. THE CERTIFICATE OF FRANCHISE AUTHORITY ISSUED BY THE COMMISSION MAY
BE TERMINATED BY THE CABLE SERVICE PROVIDER OR VIDEO SERVICE PROVIDER BY
SUBMITTING NOTICE TO THE COMMISSION AND RECEIVING APPROVAL FROM THE
COMMISSION.
8. THE COMMISSION MAY IMPOSE A FEE ON THE APPLICANT THAT SHALL NOT
EXCEED THE ACTUAL AND REASONABLE COSTS OF PROCESSING THE APPLICATION AND
OVERSEEING THE CERTIFICATE SHALL NOT BE LEVIED FOR GENERAL REVENUE
PURPOSES.
9. A CERTIFICATE OF FRANCHISE AUTHORITY SHALL ONLY BE VALID FOR TEN
YEARS AFTER THE DATE OF ISSUANCE, AND THE APPLICANT SHALL APPLY FOR A
RENEWAL OF THE CERTIFICATE OF FRANCHISE AUTHORITY FOR EACH ADDITIONAL
10-YEAR PERIOD.
S 244. ELIGIBILITY FOR COMMISSION-ISSUED FRANCHISE. 1. A CABLE SERVICE
PROVIDER OR A VIDEO SERVICE PROVIDER THAT CURRENTLY HAS OR HAD PREVIOUS-
LY RECEIVED A FRANCHISE TO PROVIDE CABLE SERVICE OR VIDEO SERVICE WITH
RESPECT TO SUCH MUNICIPALITIES IS NOT ELIGIBLE TO SEEK A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY UNDER THIS ARTICLE AS TO THOSE MUNI-
A. 9581 6
CIPALITIES UNTIL THE EXPIRATION DATE OF THE EXISTING FRANCHISE AGREE-
MENT, EXCEPT AS PROVIDED BY SUBDIVISIONS TWO, THREE, FOUR, FIVE AND SIX
OF THIS SECTION.
2. BEGINNING JANUARY FIRST, TWO THOUSAND SEVENTEEN, A CABLE SERVICE
PROVIDER OR VIDEO SERVICE PROVIDER THAT IS NOT THE INCUMBENT CABLE
SERVICE PROVIDER AND SERVES FEWER THAN FIFTY PERCENT OF THE TOTAL CABLE
CUSTOMERS IN A PARTICULAR MUNICIPAL FRANCHISE AREA MAY ELECT TO TERMI-
NATE THAT MUNICIPAL FRANCHISE AND SEEK A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY BY PROVIDING NOTICE TO THE COMMISSION AND THE
AFFECTED MUNICIPALITY. THE MUNICIPAL FRANCHISE IS TERMINATED ON THE DATE
THE COMMISSION ISSUES THE STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORI-
TY.
3. BEGINNING JANUARY FIRST, TWO THOUSAND EIGHTEEN, A CABLE SERVICE
PROVIDER OR VIDEO SERVICE PROVIDER IN A MUNICIPALITY WITH A POPULATION
OF LESS THAN THREE HUNDRED THOUSAND THAT WAS NOT ALLOWED TO OR DID NOT
TERMINATE A MUNICIPAL FRANCHISE UNDER SUBDIVISION TWO OF THIS SECTION
MAY ELECT TO TERMINATE NOT LESS THAN ALL UNEXPIRED FRANCHISES IN MUNICI-
PALITIES WITH A POPULATION OF LESS THAN THREE HUNDRED THOUSAND AND SEEK
A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY FOR EACH AREA SERVED
UNDER A TERMINATED MUNICIPAL FRANCHISE BY PROVIDING NOTICE TO THE
COMMISSION AND EACH AFFECTED MUNICIPALITY. A MUNICIPAL FRANCHISE IS
TERMINATED ON THE DATE THE COMMISSION ISSUES A STATE-ISSUED CERTIFICATE
OF FRANCHISE AUTHORITY TO THE PROVIDER FOR THE AREA SERVED UNDER THAT
TERMINATED FRANCHISE.
4. A CABLE SERVICE PROVIDER OR VIDEO SERVICE PROVIDER IN A MUNICI-
PALITY WITH A POPULATION OF LESS THAN THREE HUNDRED THOUSAND MAY TERMI-
NATE A MUNICIPAL FRANCHISE IN THAT MUNICIPALITY IN THE MANNER DESCRIBED
BY SUBDIVISION THREE OF THIS SECTION IF:
(A) THE CABLE SERVICE PROVIDER OR VIDEO SERVICE PROVIDER IS NOT THE
INCUMBENT CABLE SERVICE PROVIDER IN THAT MUNICIPALITY; AND
(B) THE INCUMBENT CABLE SERVICE PROVIDER RECEIVED A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY FROM THE COMMISSION.
5. A MUNICIPALITY WITH A POPULATION OF LESS THAN THREE HUNDRED THOU-
SAND MAY ENTER INTO AN AGREEMENT WITH ANY CABLE SERVICE PROVIDER IN THE
MUNICIPALITY TO TERMINATE A MUNICIPAL CABLE FRANCHISE BEFORE THE EXPIRA-
TION OF THE FRANCHISE. TO THE EXTENT THAT THE MUTUALLY AGREED ON TERMS
AND CONDITIONS FOR EARLY TERMINATION OF THE UNEXPIRED MUNICIPAL CABLE
FRANCHISE CONFLICT WITH A PROVISION OF THIS ARTICLE, THE AGREED ON TERMS
AND CONDITIONS CONTROL.
6. A CABLE SERVICE PROVIDER THAT ELECTS UNDER SUBDIVISION TWO, THREE
OR FOUR OF THIS SECTION TO TERMINATE AN EXISTING MUNICIPAL FRANCHISE IS
RESPONSIBLE FOR REMITTING TO THE AFFECTED MUNICIPALITY BEFORE THE NINE-
TY-FIRST DAY AFTER THE DATE THE MUNICIPAL FRANCHISE IS TERMINATED ANY
ACCRUED BUT UNPAID FRANCHISE FEES DUE UNDER THE TERMINATED FRANCHISE. IF
THE CABLE SERVICE PROVIDER HAS CREDIT REMAINING FROM PREPAID FRANCHISE
FEES, THE PROVIDER MAY DEDUCT THE AMOUNT OF THE REMAINING CREDIT FROM
ANY FUTURE FEES OR TAXES IT MUST PAY TO THE MUNICIPALITY, EITHER DIRECT-
LY OR THROUGH THE COMPTROLLER.
7. FOR PURPOSES OF THIS SECTION, A CABLE SERVICE PROVIDER OR VIDEO
SERVICE PROVIDER WILL BE DEEMED TO HAVE OR HAVE HAD A FRANCHISE TO
PROVIDE CABLE SERVICE OR VIDEO SERVICE IN A SPECIFIC MUNICIPALITY IF ANY
AFFILIATES OR SUCCESSOR ENTITY OF THE CABLE OR VIDEO PROVIDER HAS OR HAD
A FRANCHISE AGREEMENT GRANTED BY THAT SPECIFIC MUNICIPALITY.
8. THE TERMS "AFFILIATES OR SUCCESSOR ENTITY" IN THIS SECTION SHALL
INCLUDE, BUT NOT BE LIMITED TO, ANY ENTITY RECEIVING, OBTAINING, OR
A. 9581 7
OPERATING UNDER A MUNICIPAL CABLE OR VIDEO FRANCHISE THROUGH MERGER,
SALE, ASSIGNMENT, RESTRUCTURING, OR ANY OTHER TYPE OF TRANSACTION.
9. EXCEPT AS PROVIDED IN THIS ARTICLE, NOTHING IN THIS ARTICLE IS
INTENDED TO ABROGATE, NULLIFY, OR ADVERSELY AFFECT IN ANY WAY THE
CONTRACTUAL RIGHTS, DUTIES, AND OBLIGATIONS EXISTING AND INCURRED BY A
CABLE SERVICE PROVIDER OR A VIDEO SERVICE PROVIDER BEFORE THE DATE A
FRANCHISE EXPIRES OR THE DATE A PROVIDER TERMINATES A FRANCHISE UNDER
SUBDIVISION TWO OR THREE OF THIS SECTION, AS APPLICABLE, AND OWED OR
OWING TO ANY PRIVATE PERSON, FIRM, PARTNERSHIP, CORPORATION, OR OTHER
ENTITY INCLUDING, WITHOUT LIMITATION, THOSE OBLIGATIONS MEASURED BY AND
RELATED TO THE GROSS REVENUE HEREAFTER RECEIVED BY THE HOLDER OF A
STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY FOR SERVICES PROVIDED IN
THE GEOGRAPHIC AREA TO WHICH SUCH PRIOR FRANCHISE OR PERMIT APPLIES. ALL
LIENS, SECURITY INTERESTS, ROYALTIES, AND OTHER CONTRACTS, RIGHTS, AND
INTERESTS IN EFFECT ON JANUARY FIRST, TWO THOUSAND SIXTEEN, OR THE DATE
A FRANCHISE IS TERMINATED UNDER SUBDIVISION TWO OR THREE OF THIS SECTION
SHALL CONTINUE IN FULL FORCE AND EFFECT, WITHOUT THE NECESSITY FOR
RENEWAL, EXTENSION, OR CONTINUANCE, AND SHALL BE PAID AND PERFORMED BY
THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY, AND
SHALL APPLY AS THOUGH THE REVENUE GENERATED BY THE HOLDER OF A STATE-IS-
SUED CERTIFICATE OF FRANCHISE AUTHORITY CONTINUED TO BE GENERATED PURSU-
ANT TO THE PERMIT OR FRANCHISE ISSUED BY THE PRIOR LOCAL FRANCHISING
AUTHORITY OR MUNICIPALITY WITHIN THE GEOGRAPHIC AREA TO WHICH THE PRIOR
PERMIT OR FRANCHISE APPLIES. IT SHALL BE A CONDITION TO THE ISSUANCE AND
CONTINUANCE OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY THAT
THE PRIVATE CONTRACTUAL RIGHTS AND OBLIGATIONS HEREIN DESCRIBED CONTINUE
TO BE HONORED, PAID, OR PERFORMED TO THE SAME EXTENT AS THOUGH THE CABLE
SERVICE PROVIDER CONTINUED TO OPERATE UNDER ITS PRIOR FRANCHISE OR
PERMIT, FOR THE DURATION OF SUCH STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY AND ANY RENEWALS OR EXTENSIONS THEREOF, AND THAT THE APPLICANT
SO AGREES. ANY PERSON, FIRM, PARTNERSHIP, CORPORATION, OR OTHER ENTITY
HOLDING OR CLAIMING RIGHTS HEREIN RESERVED MAY ENFORCE SAME BY AN ACTION
BROUGHT IN A COURT OF COMPETENT JURISDICTION.
S 245. FRANCHISE FEE. 1. THE HOLDER OF A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY SHALL PAY EACH MUNICIPALITY IN WHICH IT PROVIDES
CABLE SERVICE OR VIDEO SERVICE A FRANCHISE FEE OF FIVE PERCENT BASED
UPON THE DEFINITION OF GROSS REVENUES AS SET FORTH IN THIS ARTICLE. THAT
SAME FRANCHISE FEE STRUCTURE SHALL APPLY TO ANY UNINCORPORATED AREAS
THAT ARE ANNEXED BY A MUNICIPALITY AFTER THE EFFECTIVE DATE OF THE
STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY.
2. THE FRANCHISE FEE PAYABLE UNDER THIS SECTION IS TO BE PAID QUARTER-
LY, WITHIN FORTY-FIVE DAYS AFTER THE END OF THE QUARTER FOR THE PRECED-
ING CALENDAR QUARTER. EACH PAYMENT SHALL BE ACCOMPANIED BY A SUMMARY
EXPLAINING THE BASIS FOR THE CALCULATION OF THE FEE. A MUNICIPALITY MAY
REVIEW THE BUSINESS RECORDS OF THE CABLE SERVICE PROVIDER OR VIDEO
SERVICE PROVIDER TO THE EXTENT NECESSARY TO ENSURE COMPENSATION IN
ACCORDANCE WITH SUBDIVISION ONE OF THIS SECTION, PROVIDED THAT THE MUNI-
CIPALITY MAY ONLY REVIEW RECORDS THAT RELATE TO THE FORTY-EIGHT-MONTH
PERIOD PRECEDING THE DATE OF THE LAST FRANCHISE FEE PAYMENT. A MUNICI-
PALITY MAY, IN THE EVENT OF A DISPUTE CONCERNING COMPENSATION UNDER THIS
SECTION, FILE A COMPLAINT WITH THE COMMISSION, WHO IS AUTHORIZED TO
ORDER A REMEDY INCLUDING, BUT NOT LIMITED TO, PAYMENT.
S 246. IN-KIND CONTRIBUTIONS TO MUNICIPALITY. 1. UNTIL THE EXPIRATION
OR TERMINATION OF THE INCUMBENT CABLE SERVICE PROVIDER'S AGREEMENT, THE
HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY SHALL PAY A
MUNICIPALITY IN WHICH IT IS OFFERING CABLE SERVICE OR VIDEO SERVICE THE
A. 9581 8
SAME CASH PAYMENTS ON A PER SUBSCRIBER BASIS AS REQUIRED BY THE INCUM-
BENT CABLE SERVICE PROVIDER'S FRANCHISE AGREEMENT. ALL CABLE SERVICE
PROVIDERS AND ALL VIDEO SERVICE PROVIDERS SHALL REPORT QUARTERLY TO THE
MUNICIPALITY THE TOTAL NUMBER OF SUBSCRIBERS SERVED WITHIN THE MUNICI-
PALITY. THE AMOUNT PAID BY THE HOLDER OF A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY SHALL BE CALCULATED QUARTERLY BY THE MUNICIPALITY BY
MULTIPLYING THE AMOUNT OF CASH PAYMENT UNDER THE INCUMBENT CABLE SERVICE
PROVIDER'S FRANCHISE AGREEMENT BY A NUMBER DERIVED BY DIVIDING THE
NUMBER OF SUBSCRIBERS SERVED BY A VIDEO SERVICE PROVIDER OR CABLE
SERVICE PROVIDER BY THE TOTAL NUMBER OF VIDEO OR CABLE SERVICE SUBSCRIB-
ERS IN THE MUNICIPALITY. SUCH PRO RATA PAYMENTS ARE TO BE PAID QUARTERLY
TO THE MUNICIPALITY WITHIN FORTY-FIVE DAYS AFTER THE END OF THE QUARTER
FOR THE PRECEDING CALENDAR QUARTER.
2. ON THE EXPIRATION OR TERMINATION OF THE INCUMBENT CABLE SERVICE
PROVIDER'S AGREEMENT, THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRAN-
CHISE AUTHORITY SHALL PAY A MUNICIPALITY IN WHICH IT IS OFFERING CABLE
SERVICE OR VIDEO SERVICE ONE PERCENT OF THE PROVIDER'S GROSS REVENUES,
AS DEFINED BY THIS ARTICLE, OR AT THE MUNICIPALITY'S ELECTION, THE PER
SUBSCRIBER FEE THAT WAS PAID TO THE MUNICIPALITY UNDER THE EXPIRED OR
TERMINATED INCUMBENT CABLE SERVICE PROVIDER'S AGREEMENT, IN LIEU OF
IN-KIND COMPENSATION AND GRANTS. PAYMENTS UNDER THIS SUBSECTION SHALL BE
PAID IN THE SAME MANNER AS OUTLINED IN SECTION TWO HUNDRED FORTY-FIVE OF
THIS ARTICLE.
3. ALL FEES PAID TO MUNICIPALITIES UNDER THIS SECTION ARE PAID IN
ACCORDANCE WITH 47 U.S.C. SECTIONS 531 AND 541(A)(4)(B) AND MAY BE USED
BY THE MUNICIPALITY AS ALLOWED BY FEDERAL LAW; FURTHER, THESE PAYMENTS
ARE NOT CHARGEABLE AS A CREDIT AGAINST THE FRANCHISE FEE PAYMENTS
AUTHORIZED UNDER THIS ARTICLE.
4. THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY
SHALL INCLUDE WITH A FEE PAID TO A MUNICIPALITY UNDER THIS SECTION A
STATEMENT IDENTIFYING THE FEE.
5. A MUNICIPALITY THAT RECEIVES FEES UNDER THIS SECTION:
(A) SHALL MAINTAIN REVENUE FROM THE FEES IN A SEPARATE ACCOUNT ESTAB-
LISHED FOR THAT PURPOSE;
(B) MAY NOT COMMINGLE REVENUE FROM THE FEES WITH ANY OTHER MONEY;
(C) SHALL MAINTAIN A RECORD OF EACH DEPOSIT TO AND DISBURSEMENT FROM
THE SEPARATE ACCOUNT, INCLUDING A RECORD OF THE PAYEE AND PURPOSE OF
EACH DISBURSEMENT; AND
(D) MAY NOT SPEND REVENUE FROM THE FEES EXCEPT DIRECTLY FROM THE SEPA-
RATE ACCOUNT.
6. THE FOLLOWING SERVICES SHALL CONTINUE TO BE PROVIDED BY THE CABLE
PROVIDER THAT WAS FURNISHING SERVICES PURSUANT TO ITS MUNICIPAL CABLE
FRANCHISE UNTIL THE EXPIRATION OR TERMINATION OF THE FRANCHISE AND THER-
EAFTER AS PROVIDED IN PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION:
(A) INSTITUTIONAL NETWORK CAPACITY, HOWEVER DEFINED OR REFERRED TO IN
THE MUNICIPAL CABLE FRANCHISE BUT GENERALLY REFERRING TO A PRIVATE LINE
DATA NETWORK CAPACITY FOR USE BY THE MUNICIPALITY FOR NONCOMMERCIAL
PURPOSES, SHALL CONTINUE TO BE PROVIDED AT THE SAME CAPACITY AS WAS
PROVIDED TO THE MUNICIPALITY PRIOR TO THE DATE OF EXPIRATION OR TERMI-
NATION, PROVIDED THAT THE MUNICIPALITY WILL COMPENSATE THE PROVIDER FOR
THE ACTUAL INCREMENTAL COST OF THE CAPACITY; AND
(B) CABLE SERVICES TO COMMUNITY PUBLIC BUILDINGS, SUCH AS MUNICIPAL
BUILDINGS, SCHOOLS, AND LIBRARIES, SHALL CONTINUE TO BE PROVIDED TO THE
SAME EXTENT PROVIDED IMMEDIATELY PRIOR TO THE DATE OF THE TERMINATION.
S 247. CUSTOMER SERVICE STANDARDS. THE HOLDER OF A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY SHALL COMPLY WITH ALL CUSTOMER
A. 9581 9
SERVICE STANDARDS REQUIRED BY THIS ARTICLE OR REQUIRED BY THE COMMIS-
SION.
S 248. PUBLIC, EDUCATIONAL, AND GOVERNMENTAL ACCESS CHANNELS. 1. NOT
LATER THAN ONE HUNDRED TWENTY DAYS AFTER A REQUEST BY A MUNICIPALITY,
THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY SHALL
PROVIDE THE MUNICIPALITY WITH CAPACITY IN ITS COMMUNICATIONS NETWORK TO
ALLOW PUBLIC, EDUCATIONAL, AND GOVERNMENTAL (PEG) ACCESS CHANNELS FOR
NONCOMMERCIAL PROGRAMMING.
2. THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY
SHALL PROVIDE NO FEWER THAN THE NUMBER OF PEG ACCESS CHANNELS A MUNICI-
PALITY HAS ACTIVATED UNDER THE INCUMBENT CABLE SERVICE PROVIDER'S FRAN-
CHISE AGREEMENT AS OF JANUARY FIRST, TWO THOUSAND SEVENTEEN.
3. IF A MUNICIPALITY DID NOT HAVE THE MAXIMUM NUMBER OF PEG ACCESS
CHANNELS AS OF JANUARY FIRST, TWO THOUSAND SEVENTEEN, AS PROVIDED BY
PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION BASED ON THE MUNICIPALITY'S
POPULATION ON THAT DATE, THE CABLE SERVICE PROVIDER OR VIDEO SERVICE
PROVIDER SHALL FURNISH AT THE REQUEST OF THE MUNICIPALITY:
(A) UP TO THREE PEG CHANNELS FOR A MUNICIPALITY WITH A POPULATION OF
AT LEAST 50,000; AND
(B) UP TO TWO PEG CHANNELS FOR A MUNICIPALITY WITH A POPULATION OF
LESS THAN 50,000.
4. ANY PEG CHANNEL PROVIDED PURSUANT TO THIS SECTION THAT IS NOT
UTILIZED BY THE MUNICIPALITY FOR AT LEAST EIGHT HOURS A DAY SHALL NO
LONGER BE MADE AVAILABLE TO THE MUNICIPALITY, BUT MAY BE PROGRAMMED AT
THE CABLE SERVICE PROVIDER'S OR VIDEO SERVICE PROVIDER'S DISCRETION. AT
SUCH TIME AS THE MUNICIPALITY CAN CERTIFY TO THE CABLE SERVICE PROVIDER
OR VIDEO SERVICE PROVIDER A SCHEDULE FOR AT LEAST EIGHT HOURS OF DAILY
PROGRAMMING, THE CABLE SERVICE PROVIDER OR VIDEO SERVICE PROVIDER SHALL
RESTORE THE PREVIOUSLY LOST CHANNEL BUT SHALL BE UNDER NO OBLIGATION TO
CARRY THAT CHANNEL ON A BASIC OR ANALOG TIER.
5. IN THE EVENT A MUNICIPALITY HAS NOT UTILIZED THE MINIMUM NUMBER OF
ACCESS CHANNELS AS PERMITTED BY SUBDIVISION THREE OF THIS SECTION,
ACCESS TO THE ADDITIONAL CHANNEL CAPACITY ALLOWED IN SUCH SUBDIVISION
SHALL BE PROVIDED UPON NINETY DAYS' NOTICE IF THE MUNICIPALITY MEETS THE
FOLLOWING STANDARD: IF A MUNICIPALITY HAS ONE ACTIVE PEG CHANNEL AND
WISHES TO ACTIVATE AN ADDITIONAL PEG CHANNEL, THE INITIAL CHANNEL SHALL
BE CONSIDERED TO BE SUBSTANTIALLY UTILIZED WHEN TWELVE HOURS ARE
PROGRAMMED ON THAT CHANNEL EACH CALENDAR DAY. IN ADDITION, AT LEAST
FORTY PERCENT OF THE TWELVE HOURS OF PROGRAMMING FOR EACH BUSINESS DAY
ON AVERAGE OVER EACH CALENDAR QUARTER MUST BE NONREPEAT PROGRAMMING.
NONREPEAT PROGRAMMING SHALL INCLUDE THE FIRST THREE VIDEO-CASTINGS OF A
PROGRAM. IF A MUNICIPALITY IS ENTITLED TO THREE PEG CHANNELS UNDER
SUBDIVISION THREE OF THIS SECTION AND HAS IN SERVICE TWO ACTIVE PEG
CHANNELS, EACH OF THE TWO ACTIVE CHANNELS SHALL BE CONSIDERED TO BE
SUBSTANTIALLY UTILIZED WHEN TWELVE HOURS ARE PROGRAMMED ON EACH CHANNEL
EACH CALENDAR DAY AND AT LEAST FIFTY PERCENT OF THE TWELVE HOURS OF
PROGRAMMING FOR EACH BUSINESS DAY ON AVERAGE OVER EACH CALENDAR QUARTER
IS NONREPEAT PROGRAMMING FOR THREE CONSECUTIVE CALENDAR QUARTERS.
6. THE OPERATION OF ANY PEG ACCESS CHANNEL PROVIDED PURSUANT TO THIS
SECTION SHALL BE THE RESPONSIBILITY OF THE MUNICIPALITY RECEIVING THE
BENEFIT OF SUCH CHANNEL, AND THE HOLDER OF A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY BEARS ONLY THE RESPONSIBILITY FOR THE TRANSMISSION
OF SUCH CHANNEL. THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE
AUTHORITY SHALL BE RESPONSIBLE FOR PROVIDING THE CONNECTIVITY TO EACH
PEG ACCESS CHANNEL DISTRIBUTION POINT UP TO THE FIRST TWO HUNDRED FEET.
A. 9581 10
7. THE MUNICIPALITY MUST ENSURE THAT ALL TRANSMISSIONS, CONTENT, OR
PROGRAMMING TO BE TRANSMITTED OVER A CHANNEL OR FACILITY BY A HOLDER OF
A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY ARE PROVIDED OR
SUBMITTED TO THE CABLE SERVICE PROVIDER OR VIDEO SERVICE PROVIDER IN A
MANNER OR FORM THAT IS CAPABLE OF BEING ACCEPTED AND TRANSMITTED BY A
PROVIDER, WITHOUT REQUIREMENT FOR ADDITIONAL ALTERATION OR CHANGE IN THE
CONTENT BY THE PROVIDER, OVER THE PARTICULAR NETWORK OF THE CABLE
SERVICE PROVIDER OR VIDEO SERVICE PROVIDER, WHICH IS COMPATIBLE WITH THE
TECHNOLOGY OR PROTOCOL UTILIZED BY THE CABLE SERVICE PROVIDER OR VIDEO
SERVICE PROVIDER TO DELIVER SERVICES.
8. WHERE TECHNICALLY FEASIBLE, THE HOLDER OF A STATE-ISSUED CERTIF-
ICATE OF FRANCHISE AUTHORITY THAT IS NOT AN INCUMBENT CABLE SERVICE
PROVIDER AND AN INCUMBENT CABLE SERVICE PROVIDER, INCLUDING AN INCUMBENT
CABLE SERVICE PROVIDER THAT HOLDS A STATE-ISSUED CERTIFICATE OF FRAN-
CHISE AUTHORITY ISSUED UNDER SUBDIVISION THREE OF SECTION TWO HUNDRED
FORTY-FOUR OF THIS ARTICLE, SHALL USE REASONABLE EFFORTS TO INTERCONNECT
THEIR CABLE OR VIDEO SYSTEMS FOR THE PURPOSE OF PROVIDING PEG PROGRAM-
MING. INTERCONNECTION MAY BE ACCOMPLISHED BY DIRECT CABLE, MICROWAVE
LINK, SATELLITE, OR OTHER REASONABLE METHOD OF CONNECTION. THE HOLDER OF
A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY AND THE INCUMBENT
CABLE SERVICE PROVIDER SHALL NEGOTIATE IN GOOD FAITH, AND THE INCUMBENT
CABLE SERVICE PROVIDER MAY NOT WITHHOLD INTERCONNECTION OF PEG CHANNELS.
9. A MUNICIPALITY MAY FILE A COMPLAINT WITH THE COMMISSION, WHICH IS
AUTHORIZED TO ORDER A REMEDY TO SETTLE ANY DISPUTE UNDER THIS SECTION.
S 249. NONDISCRIMINATION BY MUNICIPALITY. 1. A MUNICIPALITY SHALL
ALLOW THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY TO
INSTALL, CONSTRUCT, AND MAINTAIN A COMMUNICATIONS NETWORK WITHIN A
PUBLIC RIGHT-OF-WAY AND SHALL PROVIDE THE HOLDER OF A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY WITH OPEN, COMPARABLE, NONDISCRIMINA-
TORY, AND COMPETITIVELY NEUTRAL ACCESS TO THE PUBLIC RIGHT-OF-WAY. ALL
USE OF A PUBLIC RIGHT-OF-WAY BY THE HOLDER OF A STATE-ISSUED CERTIFICATE
OF FRANCHISE AUTHORITY IS NONEXCLUSIVE AND SUBJECT TO SECTION TWO
HUNDRED FIFTY OF THIS ARTICLE.
2. A MUNICIPALITY MAY NOT DISCRIMINATE AGAINST THE HOLDER OF A STATE-
ISSUED CERTIFICATE OF FRANCHISE AUTHORITY REGARDING:
(A) THE AUTHORIZATION OR PLACEMENT OF A COMMUNICATIONS NETWORK IN A
PUBLIC RIGHT-OF-WAY;
(B) ACCESS TO A BUILDING; OR
(C) A MUNICIPAL UTILITY POLE ATTACHMENT TERM.
S 250. MUNICIPAL POLICE POWER; OTHER AUTHORITY. 1. A MUNICIPALITY MAY
ENFORCE POLICE POWER-BASED REGULATIONS IN THE MANAGEMENT OF A PUBLIC
RIGHT-OF-WAY THAT APPLY TO THE HOLDER OF A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY WITHIN THE MUNICIPALITY. A MUNICIPALITY MAY ENFORCE
POLICE POWER-BASED REGULATIONS IN THE MANAGEMENT OF THE ACTIVITIES OF
THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY TO THE
EXTENT THAT THEY ARE REASONABLY NECESSARY TO PROTECT THE HEALTH, SAFETY,
AND WELFARE OF THE PUBLIC. POLICE POWER-BASED REGULATION OF THE HOLDER
OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY'S USE OF THE PUBLIC
RIGHT-OF-WAY MUST BE COMPETITIVELY NEUTRAL AND MAY NOT BE UNREASONABLE
OR DISCRIMINATORY. A MUNICIPALITY MAY NOT IMPOSE ON ACTIVITIES OF THE
HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY A REQUIRE-
MENT:
(A) THAT PARTICULAR BUSINESS OFFICES BE LOCATED IN THE MUNICIPALITY;
(B) REGARDING THE FILING OF REPORTS AND DOCUMENTS WITH THE MUNICI-
PALITY THAT ARE NOT REQUIRED BY STATE OR FEDERAL LAW AND THAT ARE NOT
RELATED TO THE USE OF THE PUBLIC RIGHT-OF-WAY EXCEPT THAT A MUNICIPALITY
A. 9581 11
MAY REQUEST MAPS AND RECORDS MAINTAINED IN THE ORDINARY COURSE OF BUSI-
NESS FOR PURPOSES OF LOCATING THE PORTIONS OF A COMMUNICATIONS NETWORK
THAT OCCUPY PUBLIC RIGHTS-OF-WAY;
(C) FOR THE INSPECTION OF THE HOLDER OF A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY'S BUSINESS RECORDS EXCEPT TO THE EXTENT PERMITTED
UNDER SUBDIVISION TWO OF SECTION TWO HUNDRED FORTY-FIVE OF THIS ARTICLE;
(D) FOR THE APPROVAL OF TRANSFERS OF OWNERSHIP OR CONTROL OF THE HOLD-
ER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY'S BUSINESS,
EXCEPT THAT A MUNICIPALITY MAY REQUIRE THAT THE HOLDER OF A STATE-ISSUED
CERTIFICATE OF FRANCHISE AUTHORITY MAINTAIN A CURRENT POINT OF CONTACT
AND PROVIDE NOTICE OF A TRANSFER WITHIN A REASONABLE TIME; OR
(E) THAT THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHOR-
ITY THAT IS SELF-INSURED UNDER THE PROVISIONS OF STATE LAW OBTAIN INSUR-
ANCE OR BONDING FOR ANY ACTIVITIES WITHIN THE MUNICIPALITY, EXCEPT THAT
A SELF-INSURED PROVIDER SHALL PROVIDE SUBSTANTIALLY THE SAME DEFENSE AND
CLAIMS PROCESSING AS AN INSURED PROVIDER. A BOND MAY NOT BE REQUIRED
FROM A PROVIDER FOR ANY WORK CONSISTING OF AERIAL CONSTRUCTION EXCEPT
THAT A REASONABLE BOND MAY BE REQUIRED OF A PROVIDER THAT CANNOT DEMON-
STRATE A RECORD OF AT LEAST FOUR YEARS' PERFORMANCE OF WORK IN ANY
MUNICIPAL PUBLIC RIGHT-OF-WAY FREE OF CURRENTLY UNSATISFIED CLAIMS BY A
MUNICIPALITY FOR DAMAGE TO THE RIGHT-OF-WAY.
2. NOTWITHSTANDING ANY OTHER LAW, A MUNICIPALITY MAY REQUIRE THE ISSU-
ANCE OF A CONSTRUCTION PERMIT TO THE HOLDER OF A STATE-ISSUED CERTIF-
ICATE OF FRANCHISE AUTHORITY THAT IS LOCATING FACILITIES IN OR ON A
PUBLIC RIGHT-OF-WAY IN THE MUNICIPALITY. THE TERMS OF THE PERMIT SHALL
BE CONSISTENT WITH CONSTRUCTION PERMITS ISSUED TO OTHER PERSONS EXCAVAT-
ING IN A PUBLIC RIGHT-OF-WAY.
3. IN THE EXERCISE OF ITS LAWFUL REGULATORY AUTHORITY, A MUNICIPALITY
SHALL PROMPTLY PROCESS ALL VALID AND ADMINISTRATIVELY COMPLETE APPLICA-
TIONS OF THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY
FOR A PERMIT, LICENSE, OR CONSENT TO EXCAVATE, SET POLES, LOCATE LINES,
CONSTRUCT FACILITIES, MAKE REPAIRS, AFFECT TRAFFIC FLOW, OR OBTAIN
ZONING OR SUBDIVISION REGULATION APPROVALS OR OTHER SIMILAR APPROVALS. A
MUNICIPALITY SHALL MAKE EVERY REASONABLE EFFORT NOT TO DELAY OR UNDULY
BURDEN THE PROVIDER IN THE TIMELY CONDUCT OF THE PROVIDER'S BUSINESS.
4. IF THERE IS AN EMERGENCY NECESSITATING RESPONSE WORK OR REPAIR, THE
HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY MAY BEGIN
THE REPAIR OR EMERGENCY RESPONSE WORK OR TAKE ANY ACTION REQUIRED UNDER
THE CIRCUMSTANCES WITHOUT PRIOR APPROVAL FROM THE AFFECTED MUNICIPALITY,
IF THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY NOTI-
FIES THE MUNICIPALITY AS PROMPTLY AS POSSIBLE AFTER BEGINNING THE WORK
AND LATER OBTAINS ANY APPROVAL REQUIRED BY A MUNICIPAL ORDINANCE APPLI-
CABLE TO EMERGENCY RESPONSE WORK.
5. THE COMMISSION SHALL HAVE NO JURISDICTION TO REVIEW SUCH POLICE
POWER-BASED REGULATIONS AND ORDINANCES ADOPTED BY A MUNICIPALITY TO
MANAGE THE PUBLIC RIGHTS-OF-WAY.
S 251. INDEMNITY IN CONNECTION WITH RIGHT-OF-WAY; NOTICE OF LIABILITY.
1. THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY SHALL
INDEMNIFY AND HOLD A MUNICIPALITY AND ITS OFFICERS AND EMPLOYEES HARM-
LESS AGAINST ANY AND ALL CLAIMS, LAWSUITS, JUDGMENTS, COSTS, LIENS,
LOSSES, EXPENSES, FEES (INCLUDING REASONABLE ATTORNEY'S FEES AND COSTS
OF DEFENSE), PROCEEDINGS, ACTIONS, DEMANDS, CAUSES OF ACTION, LIABILITY,
AND SUITS OF ANY KIND AND NATURE, INCLUDING PERSONAL OR BODILY INJURY
(INCLUDING DEATH), PROPERTY DAMAGE, OR OTHER HARM FOR WHICH RECOVERY OF
DAMAGES IS SOUGHT, THAT IS FOUND BY A COURT OF COMPETENT JURISDICTION TO
BE CAUSED SOLELY BY THE NEGLIGENT ACT, ERROR, OR OMISSION OF THE HOLDER
A. 9581 12
OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY OR ANY AGENT, OFFI-
CER, DIRECTOR, REPRESENTATIVE, EMPLOYEE, AFFILIATE, OR SUBCONTRACTOR OF
THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY OR THEIR
RESPECTIVE OFFICERS, AGENTS, EMPLOYEES, DIRECTORS, OR REPRESENTATIVES,
WHILE INSTALLING, REPAIRING, OR MAINTAINING FACILITIES IN A PUBLIC
RIGHT-OF-WAY. THE INDEMNITY PROVIDED BY THIS SUBDIVISION DOES NOT APPLY
TO ANY LIABILITY RESULTING FROM THE NEGLIGENCE OF THE MUNICIPALITY OR
ITS OFFICERS, EMPLOYEES, CONTRACTORS, OR SUBCONTRACTORS. IF THE HOLDER
OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY AND THE MUNICI-
PALITY ARE FOUND JOINTLY LIABLE BY A COURT OF COMPETENT JURISDICTION,
LIABILITY SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS
OF THIS STATE WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAIL-
ABLE TO THE MUNICIPALITY UNDER STATE LAW AND WITHOUT WAIVING ANY
DEFENSES OF THE PARTIES UNDER STATE LAW. THIS SUBDIVISION IS SOLELY FOR
THE BENEFIT OF THE MUNICIPALITY AND THE HOLDER OF A STATE-ISSUED CERTIF-
ICATE OF FRANCHISE AUTHORITY AND DOES NOT CREATE OR GRANT ANY RIGHTS,
CONTRACTUAL OR OTHERWISE, FOR OR TO ANY OTHER PERSON OR ENTITY.
2. THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY AND
A MUNICIPALITY SHALL PROMPTLY ADVISE THE OTHER IN WRITING OF ANY KNOWN
CLAIM OR DEMAND AGAINST THE HOLDER OF A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY OR THE MUNICIPALITY RELATED TO OR ARISING OUT OF THE
HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY'S ACTIVITIES
IN A PUBLIC RIGHT-OF-WAY.
3. THE COMMISSION SHALL HAVE NO JURISDICTION TO REVIEW SUCH POLICE
POWER-BASED REGULATIONS AND ORDINANCES ADOPTED BY A MUNICIPALITY TO
MANAGE THE PUBLIC RIGHTS-OF-WAY.
S 252. MUNICIPAL AUTHORITY. IN ADDITION TO A MUNICIPALITY'S AUTHORITY
TO EXERCISE ITS NONDISCRIMINATORY POLICE POWER WITH RESPECT TO PUBLIC
RIGHTS-OF-WAY UNDER CURRENT LAW, A MUNICIPALITY'S AUTHORITY TO REGULATE
THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY IS
LIMITED TO:
1. A REQUIREMENT THAT THE HOLDER OF A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY WHO IS PROVIDING CABLE SERVICE OR VIDEO SERVICE
WITHIN THE MUNICIPALITY REGISTER WITH THE MUNICIPALITY AND MAINTAIN A
POINT OF CONTACT;
2. THE ESTABLISHMENT OF REASONABLE GUIDELINES REGARDING THE USE OF
PUBLIC, EDUCATIONAL, AND GOVERNMENTAL ACCESS CHANNELS; AND
3. SUBMITTING REPORTS ON ANY VIOLATIONS OF THE CUSTOMER SERVICE STAND-
ARDS REFERENCED IN SECTION TWO HUNDRED FORTY-SEVEN OF THIS ARTICLE.
S 253. DISCRIMINATION PROHIBITED. 1. THE PURPOSE OF THIS SECTION IS TO
PREVENT DISCRIMINATION AMONG POTENTIAL RESIDENTIAL SUBSCRIBERS.
2. A CABLE SERVICE PROVIDER OR VIDEO SERVICE PROVIDER THAT HAS BEEN
GRANTED A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY MAY NOT DENY
ACCESS TO SERVICE TO ANY GROUP OF POTENTIAL RESIDENTIAL SUBSCRIBERS
BECAUSE OF THE INCOME OF THE RESIDENTS IN THE LOCAL AREA IN WHICH SUCH
GROUP RESIDES.
3. AN AFFECTED PERSON MAY SEEK ENFORCEMENT OF THE REQUIREMENTS
DESCRIBED BY SUBDIVISION TWO OF THIS SECTION BY INITIATING A PROCEEDING
WITH THE COMMISSION. A MUNICIPALITY WITHIN WHICH THE POTENTIAL RESIDEN-
TIAL CABLE SERVICE OR VIDEO SERVICE SUBSCRIBERS REFERENCED IN SUBDIVI-
SION TWO OF THIS SECTION MAY BE CONSIDERED AN AFFECTED PERSON FOR
PURPOSES OF THIS SECTION.
4. THE HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY
SHALL HAVE A REASONABLE PERIOD OF TIME TO BECOME CAPABLE OF PROVIDING
CABLE SERVICE OR VIDEO SERVICE TO ALL HOUSEHOLDS WITHIN THE DESIGNATED
FRANCHISE AREA AS DEFINED IN PARAGRAPH (D) OF SUBDIVISION FOUR OF
A. 9581 13
SECTION TWO HUNDRED FORTY-THREE OF THIS ARTICLE AND MAY SATISFY THE
REQUIREMENTS OF THIS SECTION THROUGH THE USE OF AN ALTERNATIVE TECHNOLO-
GY THAT PROVIDES COMPARABLE CONTENT, SERVICE, AND FUNCTIONALITY.
5. NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE, THE COMMISSION HAS
THE AUTHORITY TO MAKE THE DETERMINATION REGARDING THE COMPARABILITY OF
THE TECHNOLOGY AND THE SERVICE PROVIDED. NOTWITHSTANDING ANY PROVISION
OF THIS ARTICLE, THE COMMISSION HAS THE AUTHORITY TO MONITOR THE DEPLOY-
MENT OF CABLE SERVICES, VIDEO SERVICES, OR ALTERNATE TECHNOLOGY.
S 254. COMPLIANCE. 1. SHOULD THE HOLDER OF A STATE-ISSUED CERTIFICATE
OF FRANCHISE AUTHORITY BE FOUND BY THE COMMISSION TO BE IN NONCOMPLIANCE
WITH THE REQUIREMENTS OF THIS ARTICLE, THE COMMISSION SHALL ORDER THE
HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY, WITHIN A
SPECIFIED REASONABLE PERIOD OF TIME, TO CURE SUCH NONCOMPLIANCE. FAILURE
TO COMPLY SHALL SUBJECT THE HOLDER OF THE STATE-ISSUED FRANCHISE OF
FRANCHISE AUTHORITY TO PENALTIES AS THE COMMISSION SHALL REASONABLY
IMPOSE, UP TO AND INCLUDING REVOCATION OF THE STATE-ISSUED CERTIFICATE
OF FRANCHISE AUTHORITY GRANTED UNDER THIS ARTICLE.
2. THE COMMISSION IS HEREBY GRANTED THE AUTHORITY, SUBJECT TO SUBDIVI-
SION THREE OF THIS SECTION, TO ASSESS A CIVIL PENALTY NOT TO EXCEED ONE
PERCENT OF THE PROVIDER'S TOTAL ANNUAL GROSS INTRASTATE REVENUE AGAINST
ANY HOLDER OF A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY WHEN
SUCH HOLDER KNOWINGLY FAILS OR NEGLECTS TO COMPLY WITH ANY PROVISION OF
THIS ARTICLE OR ANY REGULATION OR ORDER OF THE COMMISSION IMPLEMENTING
OR ENFORCING THE PROVISIONS OF THIS ARTICLE.
3. WHENEVER THE COMMISSION HAS REASON TO BELIEVE THAT A HOLDER OF A
STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY SHOULD BE SUBJECT TO
IMPOSITION OF A CIVIL PENALTY OR PENALTIES AS SET FORTH IN THIS SUBDIVI-
SION, THE COMMISSION SHALL NOTIFY SUCH HOLDER. SUCH NOTICE SHALL
INCLUDE, BUT SHALL NOT BE LIMITED TO:
(A) THE DATE AND A BRIEF DESCRIPTION OF THE FACTS AND NATURE OF EACH
ACT OR FAILURE TO ACT FOR WHICH SUCH PENALTY IS PROPOSED;
(B) THE AMOUNT OF EACH PENALTY THAT THE COMMISSION PROPOSES TO ASSESS;
AND
(C) THE OPTION TO REQUEST A HEARING TO DEMONSTRATE WHY THE PROPOSED
PENALTY OR PENALTIES SHOULD NOT BE ASSESSED AGAINST SUCH HOLDER.
4. UPON A FAILURE BY A HOLDER OF A STATE-ISSUED CERTIFICATE OF FRAN-
CHISE AUTHORITY TO REMIT ANY PENALTY ASSESSED BY THE COMMISSION PURSUANT
TO THIS SECTION, THE COMMISSION, THROUGH ITS COUNSEL, MAY INSTITUTE AN
ACTION OR SPECIAL PROCEEDING TO COLLECT THE PENALTY IN A COURT OF COMPE-
TENT JURISDICTION.
S 255. APPLICABILITY OF OTHER LAWS. 1. NOTHING IN THIS ARTICLE SHALL
BE INTERPRETED TO PREVENT A VOICE PROVIDER, CABLE SERVICE PROVIDER OR
VIDEO SERVICE PROVIDER, OR MUNICIPALITY FROM SEEKING CLARIFICATION OF
ITS RIGHTS AND OBLIGATIONS UNDER FEDERAL LAW OR TO EXERCISE ANY RIGHT OR
AUTHORITY UNDER FEDERAL OR STATE LAW.
2. NOTHING IN THIS ARTICLE SHALL LIMIT THE ABILITY OF A MUNICIPALITY
UNDER EXISTING LAW TO RECEIVE COMPENSATION FOR USE OF THE PUBLIC
RIGHTS-OF-WAY FROM ENTITIES DETERMINED NOT TO BE SUBJECT TO ALL OR PART
OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, PROVIDER OF INTERNET
PROTOCOL CABLE OR VIDEO SERVICES, UNLESS SUCH PAYMENTS ARE EXPRESSLY
PROHIBITED BY FEDERAL LAW.
S 256. BUILDOUT REQUIREMENTS. IF IT FURTHERS THE PUBLIC INTEREST, THE
COMMISSION IS AUTHORIZED AND MAY REQUIRE A CABLE SERVICE PROVIDER TO
COMPLY WITH A SCHEDULE OF BUILDOUT REQUIREMENTS RELATED TO ANY COMMUNI-
CATIONS NETWORK OPERATED BY A HOLDER OF A STATE-ISSUED CERTIFICATE OF
FRANCHISE AUTHORITY.
A. 9581 14
S 257. ENFORCEMENT. THE COMMISSION IS AUTHORIZED TO ENFORCE THE
PROVISIONS OF THIS ARTICLE WHICH MAY INCLUDE BUT NOT BE LIMITED TO ISSU-
ING ORDERS OR ADOPTING RULES OR REGULATIONS TO EFFECTUATE SUCH ENFORCE-
MENT.
S 2. Subdivisions 1 and 2 of section 219 of the public service law, as
added by chapter 83 of the laws of 1995, is amended to read as follows:
1. Notwithstanding any other law, no cable television system, whether
or not it is deemed to occupy or use a public thoroughfare, may commence
operations or expand the area it serves unless it EITHER;
(A) has been franchised by each municipality in which it proposes to
provide or extend service; OR
(B) HAS BEEN ISSUED A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY.
2. A municipality OR THE COMMISSION PURSUANT TO ARTICLE TWELVE OF THIS
CHAPTER shall have the power to require a franchise of any cable tele-
vision system providing service within the municipality, notwithstanding
that said cable television system does not occupy, use or in any way
traverse a public street. The provision of any municipal charter or
other law authorizing a municipality to require and grant franchises is
hereby enlarged and expanded, to the extent necessary, to authorize such
franchises.
S 3. This act shall take effect immediately.