S T A T E O F N E W Y O R K
________________________________________________________________________
5641--B
2015-2016 Regular Sessions
I N S E N A T E
May 21, 2015
___________
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations -- reported favorably from said committee, ordered to first
report, amended on first report, ordered to a second report and
ordered reprinted, retaining its place in the order of second report
-- recommitted to the Committee on Energy and Telecommunications in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the public service law, in relation to allowing for the
approval of cable franchises; to repeal certain provisions of such law
relating thereto; and providing for the repeal of certain provisions
upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 221 of the public service law, as added by chapter
83 of the laws of 1995, is amended to read as follows:
S 221. Certificate of confirmation. 1. Except as provided in this
section, no person shall exercise a franchise, and no such franchise
shall be effective, [until the commission has confirmed such franchise.
A person wishing to exercise a franchise shall file with the commission
an application for a certificate of confirmation in such form and
containing such information and supportive documentation as the commis-
sion may require. The application shall be accompanied by proof of
service thereof upon the franchisor and by such fee as the commission
may set] UNLESS A COPY OF SUCH FRANCHISE HAS BEEN APPROVED BY THE MUNI-
CIPALITY, AND PROPERTY FILED WITH THE COMMISSION WITHIN THIRTY DAYS OF
MUNICIPAL APPROVAL. SUCH FRANCHISE SHALL BE SUBJECT, AT A MINIMUM, TO
THE FRANCHISING STANDARDS SET FORTH IN THIS ARTICLE AND THE RULES AND
REGULATIONS PROMULGATED THEREUNDER BY THE COMMISSION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11290-03-6
S. 5641--B 2
2. A FRANCHISE SHALL BE DEEMED GRANTED FORTY-FIVE DAYS AFTER THE FRAN-
CHISE IS FILED PURSUANT TO SUBDIVISION ONE OF THIS SECTION UNLESS THE
COMMISSION, OR ITS DESIGNEE, DETERMINES WITHIN SUCH FORTY-FIVE DAY PERI-
OD THAT THE PUBLIC INTEREST REQUIRES THE COMMISSION'S REVIEW AND WRITTEN
ORDER.
[2.] 3. The commission may hold a public hearing on any application
for a certificate of confirmation if it determines that such a hearing
is in the public interest. The commission shall fix the time and place
for such a hearing and cause notice thereof to be given to the appli-
cant, the chief executive officer of the municipality issuing the fran-
chise and such other persons as the commission may deem appropriate.
Testimony may be taken and evidence received at such a hearing pursuant
to such rules and procedures as the commission may establish.
[3. The commission shall issue a] 4. A certificate of confirmation of
the franchise [unless it finds that (a) the applicant, (b) the proposed
cable television system, or (c) the proposed franchise does not conform
to the standards established in the regulations promulgated by the
commission pursuant to subdivision two of section two hundred fifteen,
or that operation of the proposed cable television system by the appli-
cant under the proposed cable television system by the applicant under
the proposed franchise would be in violation of law, any regulation or
standard promulgated by the commission or the public interest.] SHALL BE
DEEMED CONFIRMED FORTY-FIVE DAYS AFTER THE FRANCHISE IS FILED PURSUANT
TO SUBDIVISION ONE OF THIS SECTION UNLESS THE COMMISSION, OR ITS DESIG-
NEE, DETERMINES WITHIN SUCH FORTY-FIVE DAY PERIOD THAT THE PUBLIC INTER-
EST REQUIRES THE COMMISSION'S REVIEW AND WRITTEN ORDER.
[4.] 5. The commission may issue a certificate of confirmation contin-
gent upon compliance with standards, terms or conditions set by the
commission which it determines would not have been met by the applicant,
system or franchise as proposed.
[5.] 6. In the event the commission refuses to issue a certificate of
confirmation, it shall set forth in writing the reasons for its deci-
sion.
[6. Any cable television company which, pursuant to any existing fran-
chise, (i) was lawfully engaged in actual operations for (ii) had
commenced substantial construction (as such term is defined by the
commission) of a cable television system on January first, nineteen
hundred seventy-two may continue to exercise said franchise pursuant to
the terms thereof, provided such company files with the commission, on
or before July first, nineteen hundred seventy-three an application in
such form and containing such information and supporting documentation
as the commission may require. The commission shall issue a certificate
of confirmation to such a cable television company valid for five years
without further proceedings, which certificate may be renewed by the
commission on application for five year terms pursuant to the provisions
of section two hundred twenty-two.
7. Notwithstanding any other provisions of this article, any cable
television company engaged in actual and lawful nonfranchised cable
television operations on April first, nineteen hundred seventy-three,
that applied for a certificate of confirmation on or before September
first, nineteen hundred seventy-four and received a certificate, valid
for a five year period, may continue to operate within the limits of the
area in which it was actually rendering service on April first, nineteen
hundred seventy-three, as determined by the commission. Such a certif-
icate of confirmation may be renewed by the commission on application
for five year terms pursuant to the provisions of section two hundred
S. 5641--B 3
twenty-two of this article. Any such company which failed to file an
application pursuant to this section on or before September first, nine-
teen hundred seventy-four, shall thereafter be prohibited from continu-
ing operation of a nonfranchised cable television system, provided
however, that the commission may authorize such continued nonfranchised
operation in extraordinary circumstances for such periods as the commis-
sion may deem appropriate.
8. Nothing in this section shall be deemed to validate a franchise not
granted in accordance with law or affect any claims in litigation on
January first, nineteen hundred seventy-three. No confirmation under
this section shall preclude invalidation of any franchise illegally
obtained.
9.] 7. Confirmation by the commission and duties performed by the
commission with respect to its regulation of cable television providers
under this article shall not be deemed to constitute "supervision of the
state department of public service" for the purpose of the meaning of
such phrase as it is used in describing those utilities which are
subject to tax on a gross income basis under section one hundred eight-
y-six-a of the tax law or pursuant to section twenty-b of the general
city law and subdivision one of section [five hundred thirty] 5-530 of
the village law.
S 2. Section 222 of the public service law is REPEALED and a new
section 222 is added to read as follows:
S 222. RENEWAL OR AMENDMENT OF FRANCHISES. 1. EXCEPT AS PROVIDED IN
THIS SECTION, NO PERSON SHALL RENEW OR AMEND A FRANCHISE RENEWAL, AND NO
SUCH RENEWAL OR AMENDMENT SHALL BE EFFECTIVE, UNLESS A COPY OF SUCH
RENEWAL OR AMENDMENT HAS BEEN APPROVED BY THE MUNICIPALITY, AND PROPERLY
FILED WITH THE COMMISSION WITHIN THIRTY DAYS OF MUNICIPAL APPROVAL. SUCH
RENEWAL OR AMENDMENT SHALL BE SUBJECT, AT A MINIMUM, TO THE FRANCHISING
STANDARDS SET FORTH IN THIS ARTICLE AND THE RULES AND REGULATIONS
PROMULGATED THEREUNDER BY THE COMMISSION.
2. RENEWALS AND AMENDMENTS SHALL BE DEEMED GRANTED FORTY-FIVE DAYS
AFTER THE RENEWAL OR AMENDMENT IS FILED PURSUANT TO SUBDIVISION ONE OF
THIS SECTION UNLESS THE COMMISSION, OR ITS DESIGNEE, DETERMINES WITHIN
SUCH FORTY-FIVE DAY PERIOD THAT THE PUBLIC INTEREST REQUIRES THE COMMIS-
SION'S REVIEW AND WRITTEN ORDER.
S 3. The public service law is amended by adding a new section 222-a
to read as follows:
S 222-A. TRANSFER OF FRANCHISES AND TRANSFER OF CONTROL OVER FRAN-
CHISES AND SYSTEM PROPERTIES. 1. NO TRANSFER OF ANY FRANCHISE, OR ANY
TRANSFER OF CONTROL OF A FRANCHISE OR CERTIFICATE OF CONFIRMATION OR OF
FACILITIES CONSTITUTING A SIGNIFICANT PART OF ANY CABLE TELEVISION
SYSTEM SHALL BE EFFECTIVE WITHOUT THE PRIOR APPROVAL OF THE COMMISSION.
SUCH APPROVAL SHALL BE REQUIRED IN ADDITION TO ANY MUNICIPAL APPROVAL
REQUIRED UNDER THE FRANCHISE OR BY LAW. FOR THE PURPOSE OF THIS SECTION,
A MERGER OR CONSOLIDATION OF TWO OR MORE CABLE TELEVISION COMPANIES
SHALL BE DEEMED TO BE A TRANSFER OF THE FRANCHISES OR CERTIFICATES
GRANTED TO SUCH COMPANIES.
2. A PERSON WISHING TO TRANSFER A FRANCHISE, OR TO TRANSFER CONTROL OF
A FRANCHISE OR OF A SUBSTANTIAL PART OF THE FACILITIES THEREOF SHALL
FILE WITH THE COMMISSION AN APPLICATION FOR APPROVAL OF SUCH CHANGE, IN
SUCH FORM AND CONTAINING SUCH INFORMATION AND SUPPORTING DOCUMENTS AS
THE COMMISSION MAY REQUIRE. THE APPLICATION SHALL BE ACCOMPANIED BY
PROOF OF SERVICE THEREOF UPON THE FRANCHISOR, IF ANY, AND BY SUCH FEE AS
THE COMMISSIONER MAY SET. THE COMMISSION MAY HOLD A PUBLIC HEARING ON
ANY SUCH APPLICATION.
S. 5641--B 4
3. (A) THE COMMISSION SHALL APPROVE THE APPLICATION UNLESS IT FINDS
THAT THE APPLICANT, THE PROPOSED TRANSFEREE OR THE CABLE TELEVISION
SYSTEM DOES NOT CONFORM TO THE STANDARDS ESTABLISHED IN THE REGULATIONS
PROMULGATED BY THE COMMISSION PURSUANT TO THIS ARTICLE OR THAT APPROVAL
WOULD BE IN VIOLATION OF ANY LAW, REGULATION OR STANDARD PROMULGATED BY
THE COMMISSION OR THE PUBLIC INTEREST, PROVIDED HOWEVER, THAT A FAILURE
TO CONFORM TO THE STANDARDS ESTABLISHED IN THE REGULATIONS PROMULGATED
BY THE COMMISSION SHALL NOT PRECLUDE APPROVAL OF ANY SUCH APPLICATION IF
THE COMMISSION FINDS THAT SUCH APPROVAL WOULD SERVE THE PUBLIC INTEREST.
(B) THE COMMISSION SHALL NOT APPROVE THE APPLICATION FOR A TRANSFER OF
A FRANCHISE, ANY TRANSFER OF CONTROL OF A FRANCHISE OR CERTIFICATE OF
CONFIRMATION, OR OF FACILITIES CONSTITUTING A SIGNIFICANT PART OF ANY
CABLE TELEVISION SYSTEM UNLESS THE APPLICANT DEMONSTRATES THAT THE
PROPOSED TRANSFEREE AND THE CABLE TELEVISION SYSTEM CONFORM TO THE STAN-
DARDS ESTABLISHED IN THE REGULATIONS PROMULGATED BY THE COMMISSION
PURSUANT TO SECTION TWO HUNDRED FIFTEEN OF THIS ARTICLE, THAT APPROVAL
WOULD NOT BE IN VIOLATION OF LAW, OR ANY REGULATION OR STANDARD PROMUL-
GATED BY THE COMMISSION, AND THAT THE TRANSFER IS OTHERWISE IN THE
PUBLIC INTEREST; PROVIDED, HOWEVER, THAT A FAILURE TO CONFORM TO THE
STANDARDS ESTABLISHED IN THE REGULATIONS PROMULGATED BY THE COMMISSION
SHALL NOT PRECLUDE APPROVAL OF ANY SUCH APPLICATION IF THE COMMISSION
FINDS THAT SUCH APPROVAL WOULD SERVE THE PUBLIC INTEREST.
4. THE COMMISSION MAY APPROVE THE APPLICATION CONTINGENT UPON COMPLI-
ANCE WITH STANDARDS, TERMS OR CONDITIONS SET BY THE COMMISSION WHICH IT
DETERMINES WOULD NOT HAVE BEEN MET BY THE PROPOSED TRANSFER OF A FRAN-
CHISE.
5. IN THE EVENT THE COMMISSION REFUSES TO APPROVE THE APPLICATION, IT
SHALL SET FORTH IN WRITING THE REASONS FOR ITS DECISION.
6. APPROVAL OF A TRANSFER OF A FRANCHISE UNDER THIS SECTION SHALL NOT
PRECLUDE INVALIDATION OF A FRANCHISE ILLEGALLY OBTAINED.
S 4. This act shall take effect immediately; provided, however, that
this act shall apply to franchises filed on or after the date this act
shall have become a law; and provided further that the provisions of
section three of this act shall apply to any application pending before
the public service commission on such date and shall expire and be
deemed repealed April 1, 2018.
