S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2702

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 20, 2015
                               ___________

Introduced  by M. of A. BRENNAN -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions

AN ACT to amend the public  service  law,  in  relation  to  authorizing
  statewide  cable  franchises  for  the  purposes  of competitive cable
  service, promoting the wide-spread development of high-capacity broad-
  band internet access, and increasing the availability and  quality  of
  services  in this key economic development area and ensuring the safe-
  ty, reliability and affordability of telecommunications services

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The public service law is amended by adding a new article
11-A to read as follows:
                              ARTICLE 11-A
               STATEWIDE CABLE FRANCHISING AND REGULATION
SECTION 231. DEFINITIONS.
        232. AUTHORIZATION TO PROVIDE CABLE SERVICE.
        233. PUBLIC SERVICE COMMISSION RESPONSIBILITIES.
        234. APPLICATION FOR STATEWIDE CABLE FRANCHISE.
        235. LENGTH OF STATEWIDE FRANCHISE.
        236. TERMINATION OF A STATEWIDE FRANCHISE.
        237. ABANDONMENT OF SERVICE.
        238. MUNICIPAL POWER AND REGULATION OVER FRANCHISE HOLDERS.
        239. PAYMENT AND REMITTANCE OF FRANCHISE FEE.
        240. PUBLIC, EDUCATIONAL AND GOVERNMENT CHANNELS.
        241. CABLE OPERATOR'S COMMUNITY COMMITMENT.
        242. CONSUMER PROTECTION RULES.
        243. NEUTRAL INTERNET AND BROADBAND NETWORKS.
        244. DEPLOYMENT REQUIREMENTS FOR STATEWIDE CABLE FRANCHISE.
        245. DISCRIMINATION IN THE PROVISIONING OF SERVICE PROHIBITED.
        246. ENFORCEMENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02310-01-5

              

A. 2702                             2

  S 231. DEFINITIONS. THE WORDS AND PHRASES USED IN THIS  ARTICLE  SHALL
HAVE  THE  FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING CLEARLY APPEARS
IN THE CONTEXT.
  1.  "CABLE SERVICE" SHALL MEAN THE ONE-WAY TRANSMISSION TO SUBSCRIBERS
OF VIDEO PROGRAMMING;  OR  OTHER  PROGRAMMING  SERVICE,  AND  SUBSCRIBER
INTERACTION,  IF ANY, WHICH IS REQUIRED FOR THE SELECTION OR USE OF SUCH
VIDEO PROGRAMMING OR OTHER PROGRAMMING SERVICE, REGARDLESS OF THE  TECH-
NOLOGY  UTILIZED  BY A CABLE TELEVISION COMPANY TO ENABLE SUCH SELECTION
OR USE.
  2. "CABLE OPERATOR" SHALL MEAN ANY PERSON OR GROUP OF PERSONS (A)  WHO
PROVIDES  CABLE  SERVICE OVER A CABLE SYSTEM AND DIRECTLY OR THROUGH ONE
OR MORE AFFILIATES OWNS A SIGNIFICANT INTEREST IN SUCH CABLE SYSTEM,  OR
(B)  WHO  OTHERWISE CONTROLS OR IS RESPONSIBLE FOR, THROUGH ANY ARRANGE-
MENT, THE MANAGEMENT AND OPERATION OF SUCH A CABLE SYSTEM, AS SET  FORTH
IN 47 U.S.C. S 522(5).
  3.  "CABLE  SYSTEM"  SHALL  MEAN  ANY FACILITY, CONSISTING OF A SET OF
CLOSED TRANSMISSION PATHS AND ASSOCIATED  SIGNAL  GENERATION,  RECEPTION
AND  CONTROL  EQUIPMENT  THAT IS DESIGNED TO PROVIDE CABLE SERVICE WHICH
INCLUDES VIDEO PROGRAMMING, WITHOUT REGARD TO  THE  TECHNOLOGY  USED  TO
DELIVER  SUCH  VIDEO PROGRAMMING, INCLUDING INTERNET PROTOCOL TECHNOLOGY
OR ANY SUCCESSOR TECHNOLOGY AND WHICH IS PROVIDED TO MULTIPLE  SUBSCRIB-
ERS  WITHIN  A  COMMUNITY, AS SET FORTH IN 47 U.S.C.  S 522(7), BUT SUCH
TERM DOES NOT INCLUDE:
  (A) A FACILITY THAT SERVES ONLY TO RETRANSMIT THE  TELEVISION  SIGNALS
OF ONE OR MORE TELEVISION BROADCAST STATIONS;
  (B)  A  FACILITY  THAT  SERVES  SUBSCRIBERS  WITHOUT  USING ANY PUBLIC
RIGHT-OF-WAY;
  (C) A FACILITY OF A COMMON CARRIER WHICH IS SUBJECT, IN  WHOLE  OR  IN
PART,  TO  THE PROVISIONS OF TITLE II OF THE COMMUNICATIONS ACT OF 1934,
47 U.S.C. S 201 ET SEQ., EXCEPT THAT SUCH FACILITY SHALL BE CONSIDERED A
CABLE SYSTEM (OTHER THAN FOR PURPOSES OF 47  U.S.C.  S  541(C))  TO  THE
EXTENT  SUCH  FACILITY  IS USED IN THE TRANSMISSION OF VIDEO PROGRAMMING
DIRECTLY TO SUBSCRIBERS, UNLESS THE EXTENT OF  SUCH  USE  IS  SOLELY  TO
PROVIDE INTERACTIVE ON-DEMAND SERVICES;
  (D) AN OPEN VIDEO SYSTEM THAT COMPLIES WITH 47 U.S.C. S 573; OR
  (E)  ANY  FACILITIES OF ANY ELECTRIC UTILITY USED SOLELY FOR OPERATING
ITS ELECTRIC UTILITY SYSTEM.
  4. "CATV COMPANY" SHALL MEAN ANY PERSON OR GROUP OF  PERSONS  (A)  WHO
PROVIDES  CABLE  SERVICE OVER A CABLE SYSTEM AND DIRECTLY OR THROUGH ONE
OR MORE AFFILIATES OWNS A SIGNIFICANT INTEREST IN SUCH CABLE SYSTEM,  OR
(B)  WHO  OTHERWISE CONTROLS OR IS RESPONSIBLE FOR, THROUGH ANY ARRANGE-
MENT, THE MANAGEMENT AND OPERATION OF SUCH A CABLE SYSTEM.
  5. "CATV SYSTEM" SHALL MEAN ANY FACILITY WHICH RECEIVES AND  AMPLIFIES
THE  SIGNALS BROADCAST BY ONE OR MORE TELEVISION STATIONS AND REDISTRIB-
UTES SUCH SIGNALS BY WIRE, CABLE OR OTHER MEANS,  OR  WHICH  DISTRIBUTES
SIGNALS  IT ORIGINATES OR WHICH ARE ORIGINATED BY ANOTHER FOR VIEWING BY
SUBSCRIBERS, WHETHER THE WIRE, CABLE OR OTHER FACILITIES  ARE  OWNED  OR
LEASED. A "CATV SYSTEM" SHALL NOT INCLUDE:
  (A) THE POLES OR OTHER FACILITIES OF ANY TELEPHONE CORPORATION USED TO
PROVIDE CHANNEL SERVICE AS A COMMON CARRIER,
  (B) A SYSTEM SERVING NOT MORE THAN TWO HUNDRED FIFTY SUBSCRIBERS, OR
  (C) A MASTER ANTENNA SYSTEM SERVICING SUBSCRIBERS SITUATED ON PROPERTY
UNDER COMMON OWNERSHIP.
  6.  "COMMISSION"  SHALL  MEAN  THE  PUBLIC  SERVICE  COMMISSION OR ANY
SUCCESSOR AGENCY.

A. 2702                             3

  7. "FRANCHISE" SHALL MEAN 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  SYSTEM  IN  THE  PUBLIC
RIGHTS-OF-WAY.
  8. "FRANCHISE HOLDER" OR "HOLDER" SHALL MEAN A PERSON WHO HAS RECEIVED
A STATE-WIDE FRANCHISE, BUT HAS NOT TRANSFERRED OR TERMINATED SUCH FRAN-
CHISE AUTHORIZATION, IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
  9. "FRANCHISING AUTHORITY" SHALL MEAN THE  PUBLIC  SERVICE  COMMISSION
AND  MUNICIPALITIES  WHICH ARE ENTITLED TO REQUIRE FRANCHISES AND IMPOSE
FEES IN ACCORDANCE WITH 47 U.S.C. SS 522(10) AND 542, RESPECTIVELY.
  10. "GROSS REVENUES" SHALL MEAN ANY AND ALL REVENUES, INCLUDING  CASH,
CREDITS,  PROPERTY  OR OTHER CONSIDERATION OF ANY KIND OR NATURE ARISING
FROM, ATTRIBUTABLE TO, OR IN ANY WAY DERIVED DIRECTLY OR INDIRECTLY FROM
THE OPERATION OF THE FRANCHISEE'S CABLE SYSTEM  (INCLUDING  THE  STUDIOS
AND  OTHER  FACILITIES  ASSOCIATED THEREWITH) TO PROVIDE CABLE SERVICES.
GROSS REVENUES INCLUDE, BY  WAY  OF  ILLUSTRATION  AND  NOT  LIMITATION,
MONTHLY  FEES CHARGED SUBSCRIBERS FOR ANY BASIC, OPTIONAL, PREMIUM, PER-
CHANNEL, PER-PROGRAM SERVICE, OR CABLE  PROGRAMMING  SERVICE;  INSTALLA-
TION,  DISCONNECTION,  RECONNECTION,  AND CHANGE-IN-SERVICE FEES; LEASED
CHANNEL FEES; LATE FEES AND  ADMINISTRATIVE  FEES,  PAYMENTS,  OR  OTHER
CONSIDERATION  RECEIVED  FROM PROGRAMMERS FOR CARRIAGE OF PROGRAMMING ON
THE SYSTEM; REVENUES FROM RENTALS OR SALES OF CONVERTERS OR OTHER EQUIP-
MENT; ANY STUDIO  RENTAL,  PRODUCTION  EQUIPMENT,  AND  PERSONNEL  FEES;
ADVERTISING  REVENUES;  BARTER;  REVENUES  FROM PROGRAM GUIDES; REVENUES
FROM THE SALE OR CARRIAGE OF OTHER CABLE  SERVICES;  AND  REVENUES  FROM
HOME  SHOPPING  CHANNELS  AND  OTHER REVENUE SHARING ARRANGEMENTS. GROSS
REVENUES SHALL INCLUDE REVENUES RECEIVED BY ANY ENTITY  OTHER  THAN  THE
FRANCHISEE,  AN  AFFILIATE,  OR  ANOTHER ENTITY THAT OPERATES THE SYSTEM
WHERE NECESSARY TO PREVENT EVASION OR AVOIDANCE OF THE OBLIGATION  UNDER
THIS STATUTE TO PAY THE FRANCHISE FEE. GROSS REVENUES SHALL NOT INCLUDE:
  (A)  AMOUNTS  NOT ACTUALLY RECEIVED, EVEN IF BILLED, SUCH AS BAD DEBT;
REFUNDS, REBATES OR DISCOUNTS TO SUBSCRIBERS OR THIRD PARTIES; OR REVEN-
UE IMPUTED FROM THE PROVISION OF CABLE SERVICES FOR FREE OR  AT  REDUCED
RATES  TO  ANY  PERSON AS REQUIRED OR ALLOWED BY LAW, INCLUDING, WITHOUT
LIMITATION, THE PROVISION  OF  SUCH  SERVICES  TO  PUBLIC  INSTITUTIONS,
PUBLIC  SCHOOLS, GOVERNMENTAL ENTITIES, OR EMPLOYEES, OTHER THAN FORGONE
REVENUE CHOSEN NOT TO BE  RECEIVED  IN  EXCHANGE  FOR  TRADES,  BARTERS,
SERVICES, OR OTHER ITEMS OF VALUE; OR
  (B) ANY REVENUE FROM ANY CHARGES OR FEES DERIVED FROM SERVICES CLASSI-
FIED AS NON-CABLE SERVICES AND INFORMATION SERVICES AND ANY OTHER REVEN-
UES  ATTRIBUTED BY THE HOLDER OF A CERTIFICATE OF APPROVAL OR SYSTEMWIDE
FRANCHISE TO NON-CABLE SERVICES  IN  ACCORDANCE  WITH  FEDERAL  COMMUNI-
CATIONS COMMISSIONS RULES, REGULATIONS, STANDARDS, OR ORDERS.
  IN  THE  CASE OF CABLE SERVICE THAT MAY BE BUNDLED OR INTEGRATED FUNC-
TIONALLY WITH OTHER SERVICES, CAPABILITIES OR  APPLICATIONS,  THE  GROSS
REVENUES  SHALL  ONLY  INCLUDE  THOSE  CHARGES  OR  FEES DERIVED FROM OR
ATTRIBUTABLE TO THE PROVISION OF CABLE  SERVICE,  AS  REFLECTED  ON  THE
BOOKS  AND  RECORDS  OF  THE  HOLDER  OF  A CERTIFICATE OF APPROVAL OR A
SYSTEM-WIDE FRANCHISE, AS THE CASE MAY BE, IN ACCORDANCE WITH THE RULES,
REGULATIONS, STANDARDS AND ORDERS OF THE FEDERAL COMMUNICATIONS  COMMIS-
SION.
  11.  "INCUMBENT  CABLE OPERATOR" SHALL MEAN THE CABLE OPERATOR SERVING
THE LARGEST NUMBER OF CABLE SUBSCRIBERS IN A PARTICULAR MUNICIPAL  FRAN-
CHISE AREA ON THE EFFECTIVE DATE OF THIS ARTICLE.

A. 2702                             4

  12. "MUNICIPALITY" SHALL MEAN A CITY OR TOWN WITHIN THE STATE.
  13. "PERSON" SHALL MEAN AN INDIVIDUAL, PARTNERSHIP, ASSOCIATION, JOINT
STOCK  COMPANY, TRUST, CORPORATION, GOVERNMENT ENTITY, LIMITED LIABILITY
COMPANY OR ANY OTHER ENTITY.
  14. "PUBLIC RIGHT-OF-WAY" SHALL MEAN 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.
  15. "VIDEO PROGRAMMING" SHALL MEAN PROGRAMMING PROVIDED BY, OR  GENER-
ALLY  CONSIDERED  COMPARABLE  TO,  PROGRAMMING  PROVIDED BY A TELEVISION
BROADCAST STATION, AS SET FORTH IN 47 U.S.C. S 522(20).
  S 232. AUTHORIZATION TO PROVIDE CABLE SERVICE. 1. NOTWITHSTANDING  ANY
OTHER LAW TO THE CONTRARY AND SUBJECT TO THE PROVISIONS OF THIS ARTICLE,
A  PERSON SEEKING TO PROVIDE CABLE SERVICE IN THE STATE AFTER THE EFFEC-
TIVE DATE OF THIS ARTICLE MAY FILE AN APPLICATION FOR A STATEWIDE  FRAN-
CHISE WITH THE COMMISSION AS REQUIRED BY THIS SECTION. THIS ARTICLE DOES
NOT  PRECLUDE  CABLE OPERATORS FROM FILING INDIVIDUAL APPLICATIONS UNDER
ARTICLE ELEVEN OF THIS CHAPTER, PROVIDED HOWEVER THAT A PERSON FILING AN
APPLICATION FOR A STATEWIDE  FRANCHISE  WITH  THE  COMMISSION  SHALL  BE
REQUIRED  UPON  RECEIPT  OF  SUCH  FRANCHISE  TO COMPLY WITH SECTION TWO
HUNDRED FORTY-TWO OF THIS ARTICLE WITH REGARD TO ALL IN-STATE  BROADBAND
AND  BROADBAND-CAPABLE  FACILITIES  AND  LINES  BUILT DURING THE INITIAL
BUILD-OUT PERIOD PURSUANT TO THE AUTHORIZATION PROVIDED  BY  SUCH  FRAN-
CHISE, AND FOR THE PERIOD OF THE INITIAL BUILD-OUT PERIOD WITH REGARD TO
SUCH  PERSON'S  IN-STATE  BROADBAND AND BROADBAND-CAPABLE FACILITIES AND
LINES IN EXISTENCE WHEN SUCH FRANCHISE BECOMES EFFECTIVE.
  2. A PERSON, INCLUDING AN INCUMBENT CABLE  OPERATOR,  PROVIDING  CABLE
SERVICE  UNDER  A FRANCHISE AGREEMENT WITH A FRANCHISING AUTHORITY WHICH
EXISTED PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE IS  NOT  SUBJECT  TO
THIS  SECTION  UNTIL  THE  FRANCHISE AGREEMENT EXPIRES AT THE END OF ITS
ORIGINAL OR ANY MUTUALLY AGREEABLE RENEWAL TERM, OR UNLESS AND UNTIL THE
FRANCHISING AUTHORITY AND ENTITY PROVIDING CABLE SERVICE MUTUALLY  AGREE
TO TERMINATE THE EXISTING FRANCHISE AGREEMENT.
  3. NOTHING IN THIS SECTION SHALL RESTRICT A CABLE OPERATOR FROM APPLY-
ING  TO  THE  COMMISSION  FOR  A  STATEWIDE FRANCHISE TO PROVISION CABLE
SERVICES IN TERRITORIES OF THE STATE FOR  WHICH  IT  DOES  NOT  HAVE  AN
EXISTING  FRANCHISE AGREEMENT WITH A FRANCHISING AUTHORITY. FOR PURPOSES
OF THIS SECTION, A CABLE OPERATOR WILL BE DEEMED TO HAVE A FRANCHISE  TO
PROVIDE  CABLE  SERVICE  IN  THE  JURISDICTION OF A SPECIFIC FRANCHISING
AUTHORITY IF ANY AFFILIATE, PREDECESSOR OR SUCCESSOR ENTITY OF THE CABLE
OPERATOR MAINTAINS A FRANCHISE GRANTED BY  THAT  FRANCHISING  AUTHORITY.
THE  TERMS  "AFFILIATE, PREDECESSOR OR SUCCESSOR ENTITY" IN THIS SECTION
SHALL INCLUDE BUT NOT BE LIMITED TO ANY ENTITY RECEIVING,  OBTAINING  OR
OPERATING  UNDER A FRANCHISE FROM A FRANCHISING ENTITY FOR CABLE SERVICE
THROUGH THE GRANT OF A FRANCHISE, MERGER, SALE, ASSIGNMENT,  RESTRUCTUR-
ING, OR ANY OTHER TYPE OF TRANSACTION.
  4. THE COMMISSION SHALL HAVE THE FRANCHISING AUTHORITY TO ISSUE STATE-
WIDE  FRANCHISES  FOR THE PROVISIONING OF CABLE SERVICE UNDER THIS ARTI-
CLE.   NEITHER THE COMMISSION NOR ANY  MUNICIPALITY  IN  THE  STATE  MAY
REQUIRE  THE FRANCHISE HOLDER TO OBTAIN ANY SEPARATE OR ADDITIONAL FRAN-
CHISE OR OTHERWISE IMPOSE ANY FEE OR OTHER  REQUIREMENT,  INCLUDING  BUT
NOT  LIMITED  TO THE REGULATION OF CABLE SERVICE RATES, ON ANY FRANCHISE
HOLDER AS A CONDITION OF PROVIDING CABLE SERVICE, EXCEPT AS PROVIDED  IN
THIS ARTICLE.
  5.  16 NYCRR S 895.3, AS AMENDED FROM TIME TO TIME, SHALL NOT APPLY TO
THIS ARTICLE.

A. 2702                             5

  S 233. PUBLIC SERVICE COMMISSION RESPONSIBILITIES. 1.  THE  COMMISSION
SHALL ASSIGN EXISTING PERMANENT STAFF OF SUCH LEGAL, TECHNICAL AND OTHER
EMPLOYEES OF THE COMMISSION AS MAY BE REQUIRED FOR THE PROPER CONDUCT OF
ITS  CABLE  FRANCHISING  RESPONSIBILITIES UNDER THIS ARTICLE. THE POWERS
AND  DUTIES  OF  THE PUBLIC SERVICE COMMISSION WITH RESPECT TO STATEWIDE
FRANCHISES SHALL NOT EXCEED THOSE PRESCRIBED IN THIS ARTICLE.
  2. THE COMMISSION SHALL BE  RESPONSIBLE  FOR  ESTABLISHING  ADDITIONAL
ADMINISTRATIVE PROCEDURES AND REGULATIONS NOT EXPLICITLY GRANTED IN THIS
ARTICLE  FOR THE ISSUANCE OF STATEWIDE FRANCHISES IN ACCORDANCE WITH THE
PROVISIONS OF THIS ARTICLE. THE COMMISSION'S ADMINISTRATIVE  POWERS  AND
DUTIES  SHALL  BE  LIMITED TO THE PROVISION FOUND IN SECTION TWO HUNDRED
THIRTY-FOUR OF THIS ARTICLE AND ADDITIONAL POWERS INCLUDING THE:
  (A) DEVELOPMENT OF PROCEDURES TO SUBMIT, REVIEW AND DOCUMENT  APPLICA-
TIONS FILED WITH THE COMMISSION;
  (B)  REVIEW  OF  THE INITIAL SUBMISSION AND ANY UPDATES OF THE GENERAL
DESCRIPTION OF THE SERVICE AREA FOOTPRINT  TO  BE  SERVED  OR  EXPANDED,
INCLUDING, IF APPLICABLE, ANY AREA WITHIN A MUNICIPALITY TO BE SERVED BY
AN APPLICANT;
  (C) DETERMINATION AND NOTICE OF INCOMPLETE APPLICATIONS;
  (D)  APPROVAL  OF  APPLICATIONS AND AMENDED APPLICATIONS, OR DENIAL OF
SUCH APPLICATIONS, WITHIN THE PERIODS DESIGNATED UNDER THE PROVISIONS OF
THIS ARTICLE;
  (E) ISSUANCE TO APPLICANTS WHOSE APPLICATIONS ARE APPROVED FOR  STATE-
WIDE  FRANCHISES  TO PROVIDE CABLE SERVICE IN THE SERVICE AREA FOOTPRINT
DESCRIBED IN THE APPLICATION; TO CONSTRUCT, UPGRADE, OPERATE OR MAINTAIN
A NETWORK CAPABLE OF PROVIDING SUCH SERVICE, AND TO USE AND  OCCUPY  THE
PUBLIC RIGHTS-OF-WAY IN THE DELIVERY OF THAT SERVICE;
  (F)  DEVELOPMENT  OF PROCEDURES TO REVIEW AND DOCUMENT THE TRANSFER OR
TERMINATION OF A STATEWIDE FRANCHISE;
  (G) ESTABLISH GUIDELINES IN ADDITION TO  THOSE  DEVELOPED  BY  MUNICI-
PALITIES UNDER SECTION TWO HUNDRED THIRTY-EIGHT OF THIS ARTICLE, TO DEAL
WITH  ANY  CONSUMER  COMPLAINTS OR COMPLAINTS ALLEGING VIOLATIONS OF ANY
PROVISIONS OF THIS ARTICLE. SUCH GUIDELINES SHALL BE  EASILY  ACCESSIBLE
TO  RESIDENTS  OF  THE  STATE  AND  SHALL BE POSTED ON THE INTERNET. THE
COMMISSION SHALL ALSO PROVIDE CONSUMER COMPLAINT FORMS ON  THE  INTERNET
EVEN  IF  MUNICIPALITIES  ESTABLISH  THEIR  OWN COMPLAINT FORMS. IN SUCH
CASES, MUNICIPALITIES AND THE  COMMISSION  WILL  WORK  COOPERATIVELY  TO
ADDRESS CONSUMER COMPLAINTS.
  S  234. APPLICATION FOR STATEWIDE CABLE FRANCHISE. 1. ANY PERSON WISH-
ING TO PROVIDE CABLE SERVICE IN THE STATE AFTER THE  EFFECTIVE  DATE  OF
THIS  ARTICLE MAY FILE AN APPLICATION FOR A STATEWIDE FRANCHISE WITH THE
COMMISSION AS REQUIRED BY THIS SECTION. A STATEWIDE  FRANCHISE  APPLICA-
TION  SHALL BE ACCOMPANIED BY AN APPLICATION FEE OF TEN THOUSAND DOLLARS
THAT SHALL BE USED BY THE COMMISSION TO CARRY OUT THE PURPOSES  OF  THIS
ARTICLE. NOTHING IN THIS SECTION REQUIRES THAT ANY PERSON OR ENTITY FILE
AN APPLICATION FOR A STATEWIDE FRANCHISE.
  2.  APPLICATIONS  FOR  A  STATEWIDE FRANCHISE SHALL CONTAIN BUT NOT BE
LIMITED TO:
  (A) A STATEMENT 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 IN THIS STATE;
  (B) A STATEMENT THAT THE APPLICANT AGREES TO  COMPLY  WITH  ALL  OTHER
APPLICABLE  FEDERAL,  STATE  STATUTES  AND REGULATIONS AND ALL GENERALLY
APPLICABLE MUNICIPAL ORDINANCES AND REGULATIONS, INCLUDING WITHOUT LIMI-
TATION MUNICIPAL ORDINANCES AND REGULATIONS REGARDING  THE  TIME,  PLACE

A. 2702                             6

AND  MANNER  OF  USING  AND  OCCUPYING  PUBLIC  RIGHTS-OF-WAY ADOPTED IN
ACCORDANCE WITH STATE AND FEDERAL LAW;
  (C)  A GENERAL DESCRIPTION OF THE SERVICE AREA FOOTPRINT TO BE SERVED,
INCLUDING, IF APPLICABLE, ANY AREA WITHIN A MUNICIPALITY TO BE SERVED BY
THE APPLICANT. SUCH DESCRIPTION MAY BE SET FORTH ON ONE OR MORE MAPS. IF
THE APPLICANT IS A TELEPHONE CORPORATION OR AN AFFILIATE OF A  TELEPHONE
CORPORATION, THE SERVICE AREA WILL INCLUDE A DESCRIPTION OF THE TERRITO-
RY  IN  WHICH  THE  COMPANY PROVIDES TELEPHONE SERVICE.  DESCRIPTIONS OF
SERVICE AREA FOOTPRINTS SHALL BE UPDATED BY THE APPLICANT PRIOR  TO  THE
EXPANSION  OF  CABLE  SERVICE  TO A PREVIOUSLY UNDESIGNATED SERVICE AREA
AND, UPON SUCH EXPANSION, WRITTEN NOTICE SHALL BE GIVEN TO  THE  COMMIS-
SION  OF  THE  NEW  SERVICE  AREA  TO  BE  SERVED  BY THE APPLICANT. THE
STATE-ISSUED FRANCHISE AREA AND ANY SERVICE AREA  WITHIN  THE  FRANCHISE
AREA MAY EXTEND BEYOND THE AREA OR AREAS WHERE THE APPLICANT HAS PRE-EX-
ISTING AUTHORITY TO OCCUPY THE PUBLIC RIGHTS-OF-WAY;
  (D)  THE  LOCATION OF THE APPLICANT'S PRINCIPAL PLACE OF BUSINESS, THE
NAMES OF THE APPLICANT'S PRINCIPAL EXECUTIVE  OFFICERS,  AND  THE  NAME,
ADDRESS  AND  TELEPHONE  NUMBER  OF AN OFFICER, GENERAL PARTNER OR OTHER
EMPLOYEE OF THE APPLICANT WHO WILL BE RESPONSIBLE FOR  ONGOING  COMMUNI-
CATIONS WITH THE COMMISSION;
  (E)  THE  NAME  AND LOCATION OF THE PRINCIPAL PLACE OF BUSINESS OF THE
APPLICANT'S PARENT COMPANY, IF ANY;
  (F) THE SIGNATURE OF AN OFFICER OR GENERAL PARTNER  OF  THE  APPLICANT
VERIFYING THE INFORMATION SET FORTH IN THE APPLICATION;
  (G) DEMONSTRATE THE FINANCIAL, TECHNICAL, MANAGERIAL AND LEGAL CHARAC-
TER  AND OTHER QUALIFICATIONS NEEDED TO CONSTRUCT, OPERATE, AND MAINTAIN
THE NECESSARY PLANT AND TO PROVIDE SERVICE IN A SAFE, ADEQUATE AND PROP-
ER MANNER;
  (H) PROVIDE A RECORD OF COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAWS;
AND
  (I) PROVIDE ADDITIONAL INFORMATION AS NEEDED BY THE COMMISSION.
  3. UPON FILING AN APPLICATION WITH THE COMMISSION  FOR  A  SYSTEM-WIDE
FRANCHISE  AGREEMENT  PURSUANT  TO  SUBDIVISION TWO OF THIS SECTION, THE
APPLICANT SHALL INCLUDE A LIST OF THE SPECIFIC MUNICIPALITIES  TO  WHICH
CATV  SERVICE WILL BE PROVIDED OR EXTENDED, THE ANTICIPATED CONSTRUCTION
AND DEPLOYMENT DATES, AND THE ANTICIPATED DATE ON WHICH SERVICE WILL  BE
OFFERED  AND  A  CERTIFIED  STATEMENT THAT SUCH DEPLOYMENT WILL MEET THE
REQUIREMENTS OF SECTION TWO HUNDRED  FORTY-FOUR  OF  THIS  ARTICLE.  THE
APPLICANT  WILL  CONCURRENTLY  PROVIDE A COPY OF THE APPLICATION TO EACH
AFFECTED MUNICIPALITY.
  4. WITHIN FIFTEEN BUSINESS DAYS AFTER IT RECEIVES THE APPLICATION, THE
COMMISSION SHALL:
  (A) DETERMINE WHETHER AN APPLICATION SUBMITTED IS INCOMPLETE; AND
  (B) IF SO, THE COMMISSION SHALL NOTIFY THE APPLICANT THAT THE APPLICA-
TION IS INCOMPLETE AND IDENTIFY THE INFORMATION THAT THE COMMISSION MUST
RECEIVE FROM THE APPLICANT TO MAKE THE APPLICATION COMPLETE.
  5. WITHIN SIXTY BUSINESS DAYS AFTER IT RECEIVES THE COMPLETED APPLICA-
TION, THE COMMISSION SHALL APPROVE THE APPLICATION AND ISSUE A STATEWIDE
FRANCHISE TO THE APPLICANT, OR DENY THE APPLICATION. WITHIN  SIXTY  DAYS
OF THE RECEIPT THEREOF, THE COMMISSION SHALL SCHEDULE THREE PUBLIC HEAR-
INGS  TO  BE  HELD  IN DIFFERENT GEOGRAPHICAL AREAS OF THE STATE TO GAIN
PUBLIC COMMENT IN CONSIDERATION OF THE APPLICATION.  ON  OR  BEFORE  THE
EXPIRATION  OF THE SIXTY-DAY PERIOD, THE COMMISSION SHALL ISSUE AN ORDER
IN WRITING APPROVING THE APPLICATION IF THE APPLICANT HAS COMPLIED  WITH
THE  REQUIREMENTS  FOR  A  STATEWIDE  FRANCHISE, OR THE COMMISSION SHALL
DISAPPROVE THE APPLICATION IN WRITING CITING THE REASONS FOR DISAPPROVAL

A. 2702                             7

IF THE BOARD DETERMINES THAT THE APPLICATION FOR A  STATEWIDE  FRANCHISE
DOES  NOT  COMPLY  WITH  THE REQUIREMENTS FOR A STATEWIDE FRANCHISE. THE
COMMISSION MAY DENY THE APPLICATION IF THE APPLICANT HAS FAILED TO STATE
IN  THE  APPLICATION  THE  INFORMATION  AND  REPRESENTATIONS REQUIRED BY
SUBDIVISION TWO OF THIS SECTION. IF THE COMMISSION DENIES  THE  APPLICA-
TION,  IT  MUST SPECIFY WITH PARTICULARITY THE REASON OR REASONS FOR THE
DENIAL, AND THE APPLICANT MAY AMEND ITS APPLICATION TO  CURE  ANY  DEFI-
CIENCY.  THE COMMISSION SHALL DECIDE SUCH AMENDED APPLICATION WITHIN TEN
BUSINESS DAYS OF ITS SUBMISSION TO THE COMMISSION BY THE APPLICANT.   IF
THE  COMMISSION  DENIES THE APPLICATION, THE COMMISSION SHALL SCHEDULE A
PUBLIC MEETING WITH THE  APPLICANT  TO  EXPLAIN  TO  THE  APPLICANT  THE
REASONS  FOR  THE COMMISSION'S DISAPPROVAL. SUCH MEETING SHALL BE SCHED-
ULED NO LATER THAN THIRTY DAYS FOLLOWING THE EXPIRATION OF THE SIXTY-DAY
REVIEW PERIOD AS REQUIRED BY THIS  SECTION.  THE  APPLICANT  SHALL  HAVE
THIRTY  DAYS  FOLLOWING  THE  DATE OF THE MEETING WITH THE COMMISSION TO
FILE AN APPEAL OF THE BOARD'S DECISION. THE COMMISSION SHALL  THEREAFTER
SCHEDULE  AN  ADMINISTRATIVE  HEARING  NOT  LATER THAN THE THIRTIETH DAY
FOLLOWING THE DATE OF THE FILING OF THE APPLICANT'S APPEAL IN  ORDER  TO
CONSIDER  THE  APPLICANT'S  APPEAL.  THE  COMMISSION SHALL ISSUE A FINAL
DECISION IN WRITTEN FORM ON THE APPLICANT'S APPEAL NOT  LATER  THAN  THE
SIXTIETH  DAY  FOLLOWING  THE  ADMINISTRATIVE  HEARING, REQUIRED BY THIS
SUBDIVISION, ON THE APPLICANT'S APPEAL. AFTER AN  ADMINISTRATIVE  PERIOD
AN APPLICANT MAY CHALLENGE A DENIAL OF ITS APPLICATION OR AMENDED APPLI-
CATION IN ANY COURT OF COMPETENT JURISDICTION.
  6.  A STATEWIDE FRANCHISE AUTHORIZATION ISSUED BY THE COMMISSION SHALL
CONTAIN:
  (A) A GRANT OF A FRANCHISE TO PROVIDE CABLE  SERVICE  IN  THE  SERVICE
AREA  FOOTPRINT  DESCRIBED  IN  THE  APPLICATION; TO CONSTRUCT, UPGRADE,
OPERATE OR MAINTAIN A NETWORK CAPABLE OF PROVIDING SUCH SERVICE,  EXCEPT
WHERE  THIS  GRANT  IS  NOT  REQUIRED  AND  TO USE AND OCCUPY THE PUBLIC
RIGHTS-OF-WAY IN THE DELIVERY OF THAT SERVICE; AND
  (B) A STATEMENT THAT THE FRANCHISE GRANT IN SUBDIVISION  ONE  OF  THIS
SECTION  IS  SUBJECT  TO  LAWFUL  OPERATION  OF THE CABLE SERVICE BY THE
APPLICANT OR ITS SUCCESSOR IN INTEREST.
  7. AN APPLICANT HAVING PRE-EXISTING AUTHORITY TO  UTILIZE  THE  PUBLIC
RIGHTS-OF-WAY  IS  REQUIRED TO OBTAIN A STATEWIDE FRANCHISE PRIOR TO THE
ACTUAL PROVISION OF CABLE SERVICE ON  A  COMMERCIAL  BASIS  DIRECTLY  TO
SUBSCRIBERS.  HOWEVER,  SUCH  AN  APPLICANT  IS NOT REQUIRED TO OBTAIN A
STATEWIDE FRANCHISE OR ANY MUNICIPALITY AUTHORIZATION, EXCEPT FOR  BEING
SUBJECT   TO   MUNICIPALITY   RIGHT-OF-WAY  REQUIREMENTS,  IN  ORDER  TO
CONSTRUCT, UPGRADE, OPERATE OR MAINTAIN A NETWORK  THAT  IS  CAPABLE  OF
PROVIDING CABLE SERVICE.
  8.  A SYSTEM-WIDE FRANCHISE ISSUED BY THE BOARD SHALL BE NONTRANSFERA-
BLE, EXCEPT BY WRITTEN CONSENT OF THE BOARD.
  S 235. LENGTH OF STATEWIDE FRANCHISE. A STATEWIDE FRANCHISE ISSUED  BY
THE  COMMISSION  SHALL BE VALID FOR TEN YEARS FROM THE DATE OF ISSUANCE.
RENEWAL OF A SYSTEM-WIDE FRANCHISE  SHALL  BE  VALID  FOR  A  PERIOD  OF
FIFTEEN  YEARS FROM THE DATE OF THE RENEWAL ISSUANCE, AND THE COMMISSION
SHALL ESTABLISH RULES GOVERNING THE RENEWAL OF A SYSTEM-WIDE FRANCHISE.
  S 236. TERMINATION OF A STATEWIDE  FRANCHISE.  1.  A  FRANCHISE  SHALL
TERMINATE  AT THE EXPIRATION OF ITS TERM OR OTHERWISE IN ACCORDANCE WITH
THE PROVISIONS THEREOF, UNLESS, PRIOR THERETO, THE COMMISSION  OTHERWISE
ORDERS.  THE  COMMISSION  MAY  SO  ORDER  ONLY IF IT FINDS, AFTER PUBLIC
NOTICE AND OPPORTUNITY FOR A HEARING, THAT THE FRANCHISEE:
  (A) HAS COMMITTED A MATERIAL BREACH OF ITS FRANCHISE OR ANY APPLICABLE
PROVISION OF THIS ARTICLE OR OF THE  REGULATIONS  PROMULGATED  HEREUNDER

A. 2702                             8

AND  HAS  FAILED,  WITHOUT REASONABLE JUSTIFICATION, TO CURE SAID BREACH
WITHIN SIXTY DAYS AFTER HAVING RECEIVED WRITTEN NOTICE THEREOF FROM  THE
COMMISSION; OR
  (B)  HAS  NOT MET THE REQUIREMENTS OF SECTIONS TWO HUNDRED FORTY-THREE
AND TWO HUNDRED FORTY-FOUR OF THIS ARTICLE;
  (C) HAS ENGAGED IN BLOCKING OF LAWFUL CONTENT OR WEB SITES OR SERVICES
OF COMPETITORS, OR REFUSED  TO  INTERCONNECT  ITS  FACILITIES  WITH  THE
FACILITIES  OF ANOTHER PROVIDER OF BROADBAND NETWORK SERVICES ON REASON-
ABLE AND NONDISCRIMINATORY TERMS OR CONDITIONS; OR
  (D) HAS BEEN ADJUDICATED AS BANKRUPT OR HAS FILED A VOLUNTARY PETITION
FOR BANKRUPTCY OR REORGANIZATION OR FOR AN ORDER PROTECTING  ITS  ASSETS
FROM  THE  CLAIMS OF CREDITORS AND THE COMMISSION FINDS THAT TERMINATION
OF THE FRANCHISE OR CERTIFICATE OF CONFIRMATION UNDER SUCH CONDITIONS IS
IN THE BEST INTEREST OF THE PUBLIC.
  2. UPON TERMINATION OF A FRANCHISE OR CERTIFICATE OF CONFIRMATION, THE
CABLE OPERATOR SHALL DISPOSE OF ITS FACILITIES IN  ACCORDANCE  WITH  THE
PROVISIONS  OF  THE  FRANCHISE OR CERTIFICATE. HOWEVER, ON MOTION OF ANY
INTERESTED PARTY OR UPON ITS OWN MOTION, AND  AFTER  PUBLIC  NOTICE  AND
OPPORTUNITY  FOR  HEARING,  IF  THE  COMMISSION FINDS THAT THE CONTINUED
PRESENCE OF THE FACILITIES IN  ANY  PUBLIC  THOROUGHFARE  WOULD  POSE  A
NUISANCE TO THE MUNICIPALITY OR ITS RESIDENTS, THE OPERATOR SHALL REMOVE
ITS  FACILITIES WITHIN SUCH PERIOD AS THE COMMISSION SHALL ORDER. IN THE
ABSENCE OF ANY APPLICABLE FRANCHISE OR CERTIFICATE PROVISION OR ORDER BY
THE COMMISSION TO THE CONTRARY, THE CABLE TELEVISION COMPANY MAY ABANDON
ITS FACILITIES.
  S 237. ABANDONMENT OF SERVICE. 1. NO CABLE OPERATOR  MAY  ABANDON  ANY
SERVICE  OR  PORTION  THEREOF  WITHOUT  GIVING SIX MONTHS' PRIOR WRITTEN
NOTICE TO THE COMMISSION AND TO THE FRANCHISOR, IF ANY, AND TO THE MUNI-
CIPALITIES IT SERVES.
  2. WHEN ABANDONMENT OF ANY SERVICE IS PROHIBITED BY  A  FRANCHISE,  NO
CABLE  OPERATOR  MAY ABANDON SUCH SERVICE WITHOUT WRITTEN CONSENT OF THE
COMMISSION. IN GRANTING SUCH CONSENT, THE  COMMISSION  MAY  IMPOSE  SUCH
TERMS,  CONDITIONS  OR  REQUIREMENTS AS IN ITS JUDGMENT ARE NECESSARY TO
PROTECT THE PUBLIC INTEREST.
  S 238. MUNICIPAL POWER AND REGULATION OVER FRANCHISE HOLDERS. A  MUNI-
CIPALITY MAY:
  1. EXERCISE ITS PUBLIC RIGHTS-OF-WAY AUTHORITY OVER FRANCHISE HOLDERS,
INCLUDING  REQUIRING FRANCHISE HOLDERS TO FOLLOW MUNICIPAL ORDINANCES AS
WELL AS ALL APPLICABLE LOCAL, STATE AND FEDERAL LAWS;
  2. RECEIVE, MEDIATE, AND RESOLVE CABLE SERVICE QUALITY COMPLAINTS FROM
A FRANCHISE HOLDER'S CUSTOMERS WITHIN THE MUNICIPALITY;
  3. REQUIRE A FRANCHISE HOLDER WHO IS PROVIDING  CABLE  SERVICE  WITHIN
THE  MUNICIPALITY TO REGISTER WITH THE MUNICIPALITY, MAINTAIN A POINT OF
CONTACT, AND PROVIDE NOTICE OF ANY FRANCHISE AUTHORIZATION  TRANSFER  TO
THE  MUNICIPALITY  WITHIN FOURTEEN BUSINESS DAYS AFTER THE COMPLETION OF
THE TRANSFER;
  4. ESTABLISH REASONABLE GUIDELINES REGARDING THE USE OF PUBLIC, EDUCA-
TIONAL, AND GOVERNMENTAL ACCESS  CHANNELS  WITHIN  THE  MUNICIPALITY  IN
ADDITION  TO  THOSE ESTABLISHED IN SECTION TWO HUNDRED FORTY-ONE OF THIS
ARTICLE.
  S 239. PAYMENT AND REMITTANCE OF FRANCHISE FEE. 1. THE FRANCHISE HOLD-
ER WHO OFFERS CABLE SERVICE WITHIN THE JURISDICTION  OF  A  MUNICIPALITY
SHALL  CALCULATE AND REMIT TO THE MUNICIPALITY AT THE END OF EACH CALEN-
DAR YEAR QUARTER A FRANCHISE FEE, AS PROVIDED IN THIS SECTION. THE OBLI-
GATION TO CALCULATE AND REMIT THE FRANCHISE FEE TO A MUNICIPALITY BEGINS
IMMEDIATELY UPON PROVISION OF CABLE SERVICE WITHIN  THAT  MUNICIPALITY'S

A. 2702                             9

JURISDICTION, BUT THE FIRST REMITTANCE SHALL NOT BE DUE UNTIL THE END OF
THE  FIRST  CALENDAR  YEAR QUARTER THAT IS LATER THAN ONE HUNDRED EIGHTY
DAYS AFTER THE PROVISION OF CABLE SERVICE BEGAN.
  2.  THE FRANCHISE FEE SHALL BE CALCULATED AS A PERCENTAGE OF THE HOLD-
ER'S GROSS REVENUES, AS DEFINED IN SECTION  TWO  HUNDRED  THIRTY-ONE  OF
THIS  ARTICLE  AND  SHALL BE FIVE PERCENT.  A MUNICIPALITY MAY, BY ORDI-
NANCE, CHANGE THE PERCENTAGE APPLIED TO THE GROSS REVENUES OF THE  HOLD-
ER.
  3.  NO  FEE  UNDER THIS SECTION WILL BECOME DUE UNTIL THE MUNICIPALITY
CERTIFIES AND PROVIDES DOCUMENTATION TO THE FRANCHISE HOLDER  SUPPORTING
THE  PERCENTAGE  PAID  BY  ANY INCUMBENT CABLE OPERATOR SERVING THE AREA
WITHIN THE MUNICIPALITY'S JURISDICTION.
  4. NO MUNICIPALITY OR ANY OTHER POLITICAL SUBDIVISION  OF  THIS  STATE
MAY  ASSESS ANY ADDITIONAL FEES OR CHARGES OR REQUIRE OTHER REMUNERATION
OF ANY KIND FROM THE FRANCHISE HOLDER OTHER THAN AS SET  FORTH  IN  THIS
SECTION,  PROVIDED,  HOWEVER,  THAT THE PROVISION OF IN-KIND SERVICES OR
SUPPORT, PERSONNEL AND FUNDING  DEDICATED  TO  PUBLIC,  EDUCATIONAL  AND
GOVERNMENT  FACILITIES  AND  SERVICES SHALL NOT BE CONSIDERED ADDITIONAL
FEES, CHARGES OR REMUNERATION.
  5. FOR PURPOSES OF THIS SECTION, IN THE CASE OF A CABLE  SERVICE  THAT
MAY BE BUNDLED OR INTEGRATED FUNCTIONALLY WITH OTHER SERVICES, CAPABILI-
TIES  OR  APPLICATIONS,  THE  FRANCHISE FEE SHALL BE APPLIED ONLY TO THE
GROSS REVENUES, AS  DEFINED  IN  THIS  ARTICLE,  ATTRIBUTABLE  TO  CABLE
SERVICE  OR  THE USE OF THE CABLE SYSTEM AND FACILITIES, AS REFLECTED ON
THE BOOKS AND  RECORDS  OF  THE  HOLDER  IN  ACCORDANCE  WITH  GENERALLY
ACCEPTED  ACCOUNTING  PRINCIPLES  AND  FEDERAL COMMUNICATIONS COMMISSION
RULES, REGULATIONS, STANDARDS OR ORDERS, AS APPLICABLE.
  6. THE FRANCHISE FEE SHALL BE REMITTED TO THE APPLICABLE  MUNICIPALITY
QUARTERLY,  WITHIN  FORTY-FIVE DAYS AFTER THE END OF THE QUARTER FOR THE
PRECEDING CALENDAR QUARTER. EACH  PAYMENT  SHALL  BE  ACCOMPANIED  BY  A
SUMMARY  EXPLAINING  THE BASIS FOR THE CALCULATION OF THE FRANCHISE FEE.
NOT MORE THAN ONCE ANNUALLY, A MUNICIPALITY MAY  EXAMINE  THE  FRANCHISE
HOLDER'S  BUSINESS  RECORDS TO THE EXTENT REASONABLY NECESSARY TO ENSURE
COMPENSATION IN ACCORDANCE WITH THIS SECTION. EACH PARTY SHALL BEAR  THE
PARTY'S  OWN COSTS OF THE EXAMINATION. ANY CLAIMS BY A MUNICIPALITY THAT
COMPENSATION IS NOT IN ACCORDANCE WITH THIS SECTION, AND ANY CLAIMS  FOR
REFUNDS  OR OTHER CORRECTIONS TO THE REMITTANCE OF THE FRANCHISE HOLDER,
MUST BE MADE WITHIN THREE YEARS AND FORTY-FIVE DAYS OF THE  END  OF  THE
QUARTER FOR WHICH COMPENSATION IS REMITTED, OR THREE YEARS FROM THE DATE
OF  REMITTANCE,  WHICHEVER  IS LATER. EITHER A MUNICIPALITY OR THE FRAN-
CHISE HOLDER MAY, IN THE EVENT  OF  A  DISPUTE  CONCERNING  COMPENSATION
UNDER  THIS  SECTION,  BRING AN ACTION IN A COURT OF COMPETENT JURISDIC-
TION.
  S 240. PUBLIC, EDUCATIONAL AND GOVERNMENT CHANNELS. 1. IN ADDITION  TO
THE  REQUIREMENTS  SET  FORTH  IN 16 NYCRR SEC. 894.4 (AS MAY BE AMENDED
FROM TIME TO TIME), THE FRANCHISE HOLDER SHALL PROVIDE THE  MUNICIPALITY
WITH  CAPACITY  IN  ITS  CABLE  SYSTEM TO ALLOW PUBLIC, EDUCATIONAL, AND
GOVERNMENTAL (PEG) ACCESS CHANNELS FOR  NONCOMMERCIAL  PROGRAMMING.  FOR
THE  PURPOSES  OF  THIS SECTION, PEG CHANNELS SHALL BE DEFINED AS ANALOG
CHANNELS OF SIX MEGAHERTZ BANDWIDTH OR THE SAME AS ANY OTHER CHANNEL  ON
THE  BASIC  TIER,  WHICHEVER IS GREATER. IN ADDITION TO THE REQUIREMENTS
SET FORTH IN THIS SECTION, THE COMMISSION MAY ISSUE ADDITIONAL RULES  OR
GUIDELINES  REGARDING  PEG ACCESS CHANNELS. THE HOLDER SHALL PROVIDE THE
SAME ANCILLARY SERVICES TO THE PEG CHANNELS AND ENTITIES AS  THE  INCUM-
BENT PROVIDER.

A. 2702                            10

  2. THE FRANCHISE HOLDER SHALL DESIGNATE A SUFFICIENT AMOUNT OF CAPACI-
TY  ON ITS CABLE SYSTEM TO ALLOW THE PROVISION OF A COMPARABLE NUMBER OF
PEG CHANNELS OR HOURS OF PROGRAMMING THAT THE INCUMBENT  CABLE  OPERATOR
HAS  ACTIVATED  AND  PROVIDED WITHIN THE MUNICIPALITY UNDER THE TERMS OF
ITS  FRANCHISE  AGREEMENT AS OF THE EFFECTIVE DATE OF THIS ARTICLE. IF A
MUNICIPALITY DID NOT HAVE PEG ACCESS CHANNELS AS OF THAT DATE, THE CABLE
OPERATOR SHALL FURNISH TO THE MUNICIPALITY UPON REQUEST UP TO THREE  PEG
CHANNELS FOR A MUNICIPALITY WITH A POPULATION OF AT LEAST FIFTY THOUSAND
AND  UP TO TWO PEG CHANNELS FOR A MUNICIPALITY WITH A POPULATION OF LESS
THAN FIFTY THOUSAND. FOR THE PURPOSES OF THIS SECTION, A PEG CHANNEL  IS
DEEMED  ACTIVATED IF IT IS BEING UTILIZED FOR PEG PROGRAMMING WITHIN THE
MUNICIPALITY FOR AT LEAST EIGHT HOURS PER DAY AND IF SUCH PROGRAMMING IS
NOT BROADCAST MORE THAN ONCE IN EVERY EIGHT HOURS. THE HOLDER SHALL HAVE
TWELVE MONTHS FROM THE DATE THE MUNICIPALITY REQUESTS SUCH PEG  CHANNELS
TO  DESIGNATE  THE  CAPACITY;  PROVIDED,  HOWEVER, THAT THE TWELVE-MONTH
PERIOD SHALL BE TOLLED BY ANY PERIOD DURING  WHICH  THE  DESIGNATION  OR
PROVISION  OF  PEG CHANNEL CAPACITY IS TECHNICALLY INFEASIBLE, INCLUDING
ANY FAILURE OR DELAY OF THE INCUMBENT CABLE OPERATOR  TO  MAKE  ADEQUATE
INTERCONNECTION AVAILABLE, AS REQUIRED BY THIS SECTION. IN CITIES WITH A
POPULATION  OF  ONE MILLION OR MORE PERSONS, IF A SYSTEM HAS TOTAL ACTI-
VATED BANDWIDTH IN EXCESS OF EIGHT HUNDRED SIXTY-TWO MEGAHERTZ  THEN  AT
LEAST  TWO  ADDITIONAL  PEG  CHANNELS  SHALL BE SET ASIDE BY THE HOLDER,
INCLUDING ONE FOR PUBLIC ACCESS.
  3. THE FRANCHISE HOLDER MAY SUBMIT TO THE COMMISSION AN APPLICATION TO
CEASE PROVIDING ANY PEG CHANNEL PROVIDED PURSUANT TO THIS  SECTION  THAT
IS  NOT  UTILIZED  BY THE MUNICIPALITY FOR AT LEAST EIGHT HOURS PER DAY,
AND EXCEPT AS PROVIDED HEREIN, THE CHANNEL MAY THEREAFTER BE  PROGRAMMED
AT  THE FRANCHISE HOLDER'S DISCRETION. THE COMMISSION MAY HOLD A HEARING
IN THE MUNICIPALITY TO  AID  IN  MAKING  ITS  DETERMINATION  WHETHER  TO
APPROVE  THE  APPLICATION.  THE COMMISSION SHALL ISSUE A DECISION WITHIN
THIRTY BUSINESS DAYS OF THE FRANCHISEE'S  APPLICATION.  IF  THE  MUNICI-
PALITY  SUBSEQUENTLY  CERTIFIES  TO THE COMMISSION AND HOLDER A SCHEDULE
FOR AT LEAST EIGHT HOURS OF DAILY NON-REPEAT PEG CHANNEL PROGRAMMING PER
CHANNEL, THE HOLDER SHALL RESTORE THE PEG CHANNEL OR  CHANNELS  FOR  THE
USE OF THE MUNICIPALITY FOR AS LONG AS THE MUNICIPALITY USES THE CHANNEL
OR CHANNELS FOR AT LEAST EIGHT HOURS A DAY.
  4. THE CONTENT AND OPERATION OF ANY PEG ACCESS CHANNEL PROVIDED PURSU-
ANT  TO  THIS  SECTION  SHALL BE THE RESPONSIBILITY OF THE MUNICIPALITY,
RECEIVING THE BENEFIT OF SUCH CHANNEL, AND THE  FRANCHISE  HOLDER  BEARS
ONLY THE RESPONSIBILITY FOR THE TRANSMISSION OF SUCH CHANNEL, SUBJECT TO
REASONABLE  TECHNOLOGICAL  CONSTRAINTS.  THE  FRANCHISE  HOLDER SHALL BE
RESPONSIBLE FOR PROVIDING THE CONNECTIVITY, AS WELL AS  OTHER  EQUIPMENT
NECESSARY,  TO EACH PEG ACCESS CHANNEL PROGRAMMING DISTRIBUTION LOCATION
AND FOR DOING SO WITHOUT CHARGE FOR UP TO THE FIRST TWO HUNDRED FEET  OF
THE HOLDER'S CONNECTING FACILITIES.
  5.  THE  MUNICIPALITY,  OR  ITS DESIGNEES, MUST ENSURE THAT ALL TRANS-
MISSIONS, CONTENT, OR PROGRAMMING TO BE TRANSMITTED OVER  A  PEG  ACCESS
CHANNEL  OR  FACILITY BY A FRANCHISE HOLDER ARE PROVIDED OR SUBMITTED TO
THE CABLE OPERATOR IN A MANNER OR FORM THAT IS CAPABLE OF BEING ACCEPTED
AND TRANSMITTED BY THE CABLE OPERATOR,  WITHOUT  REQUIREMENT  FOR  ADDI-
TIONAL  ALTERATION  OR CHANGE IN THE CONTENT BY THE CABLE OPERATOR, OVER
THE CABLE SYSTEM OF THE  CABLE  OPERATOR.  THE  MUNICIPALITY'S,  OR  ITS
DESIGNEES'  PROVISION  OF  PEG  CONTENT  TO  THE HOLDER SHALL CONSTITUTE
AUTHORIZATION FOR THE HOLDER TO CARRY SUCH  CONTENT  INCLUDING,  AT  THE
HOLDER'S  OPTION,  BEYOND  THE  JURISDICTIONAL BOUNDARIES OF THE MUNICI-
PALITY.

A. 2702                            11

  6. THE FRANCHISE HOLDER AND AN  INCUMBENT  CABLE  OPERATOR  SHALL  USE
REASONABLE  EFFORTS  TO INTERCONNECT THEIR CABLE SYSTEMS FOR THE PURPOSE
OF PROVIDING PEG PROGRAMMING. INTERCONNECTION  MAY  BE  ACCOMPLISHED  BY
DIRECT  CABLE,  MICROWAVE LINK, SATELLITE, OR OTHER REASONABLE METHOD OF
CONNECTION.  FRANCHISE HOLDERS AND INCUMBENT CABLE OPERATORS SHALL NEGO-
TIATE IN GOOD FAITH AND  INCUMBENT  CABLE  OPERATORS  MAY  NOT  WITHHOLD
INTERCONNECTION  OF PEG CHANNELS. IN THE EVENT A FRANCHISE HOLDER AND AN
INCUMBENT CABLE OPERATOR CANNOT REACH A  MUTUALLY  ACCEPTABLE  INTERCON-
NECTION  AGREEMENT,  THEN  THE DUTY OF THE HOLDER SHALL BE DISCHARGED IF
THE HOLDER MAKES INTERCONNECTION AVAILABLE TO THE CHANNEL ORIGINATOR  AT
A POINT ON THE HOLDER'S NETWORK DETERMINED BY THE HOLDER.
  7. THE PEG CHANNELS SHALL BE FOR THE EXCLUSIVE USE OF THE LOCAL ENTITY
OR  ITS  DESIGNEE TO PROVIDE PUBLIC, EDUCATIONAL, AND GOVERNMENTAL CHAN-
NELS.  THE PEG CHANNELS SHALL BE USED ONLY FOR  NONCOMMERCIAL  PURPOSES.
HOWEVER,  ADVERTISING,  UNDERWRITING,  OR SPONSORSHIP RECOGNITION MAY BE
CARRIED ON THE CHANNELS FOR THE PURPOSE OF  FUNDING  PEG-RELATED  ACTIV-
ITIES.  THE PEG CHANNELS SHALL ALL BE CARRIED ON THE BASIC SERVICE TIER.
TO THE EXTENT FEASIBLE, THE PEG CHANNELS SHALL NOT BE  SEPARATED  NUMER-
ICALLY  FROM  OTHER  CHANNELS  CARRIED ON THE BASIC SERVICE TIER AND THE
CHANNEL NUMBERS FOR THE PEG CHANNELS SHALL BE THE SAME  CHANNEL  NUMBERS
USED  BY  THE INCUMBENT CABLE OPERATOR UNLESS PROHIBITED BY FEDERAL LAW.
AFTER THE INITIAL  DESIGNATION  OF  PEG  CHANNEL  NUMBERS,  THE  CHANNEL
NUMBERS  SHALL  NOT BE CHANGED WITHOUT THE AGREEMENT OF THE LOCAL ENTITY
UNLESS THE CHANGE IS REQUIRED BY FEDERAL  LAW.  EACH  CHANNEL  SHALL  BE
CAPABLE  OF CARRYING A NATIONAL TELEVISION SYSTEM COMMITTEE (NTSC) TELE-
VISION SIGNAL.
  8. THE CONTENT TO BE PROVIDED OVER THE PEG CHANNEL  CAPACITY  PROVIDED
PURSUANT TO THIS SECTION SHALL BE THE RESPONSIBILITY OF THE LOCAL ENTITY
OR  ITS  DESIGNEE RECEIVING THE BENEFIT OF THAT CAPACITY, AND THE HOLDER
OF A STATE FRANCHISE BEARS ONLY THE RESPONSIBILITY FOR THE  TRANSMISSION
OF THAT CONTENT, SUBJECT TO TECHNOLOGICAL RESTRAINTS.
  9. THE PEG SIGNAL SHALL BE RECEIVABLE BY ALL SUBSCRIBERS, WHETHER THEY
RECEIVE DIGITAL OR ANALOG SERVICE, OR A COMBINATION THEREOF, WITHOUT THE
NEED FOR ANY EQUIPMENT OTHER THAN THE EQUIPMENT NECESSARY TO RECEIVE THE
LOWEST  COST  TIER OF SERVICE. THE PEG ACCESS CAPACITY PROVIDED SHALL BE
OF SIMILAR QUALITY AND FUNCTIONALITY TO THAT OFFERED BY COMMERCIAL CHAN-
NELS ON THE LOWEST COST TIER OF SERVICE UNLESS THE SIGNAL IS PROVIDED TO
THE HOLDER AT A LOWER QUALITY OR WITH LESS FUNCTIONALITY.
  10. AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, AND UNTIL  THE  EXPIRA-
TION OF THE INCUMBENT CABLE OPERATOR'S FRANCHISE, IF THE INCUMBENT CABLE
OPERATOR  HAS  EXISTING  UNSATISFIED  OBLIGATIONS UNDER THE FRANCHISE TO
REMIT TO THE LOCAL ENTITY OR ITS DESIGNEE  ANY  CASH  PAYMENTS  FOR  THE
ONGOING  COSTS  OF  PUBLIC,  EDUCATIONAL,  AND GOVERNMENT ACCESS CHANNEL
FACILITIES, THE LOCAL ENTITY, OR ITS  DESIGNEE  FOR  THE  PUBLIC  ACCESS
CHANNELS,  SHALL  DIVIDE  THOSE  CASH  PAYMENTS AMONG ALL CABLE OR VIDEO
PROVIDERS AS PROVIDED IN THIS SECTION. THE FEE SHALL BE THE HOLDER'S PRO
RATA PER SUBSCRIBER SHARE OF THE CASH PAYMENT REQUIRED TO BE PAID BY THE
INCUMBENT CABLE OPERATOR TO THE LOCAL ENTITY OR ITS  DESIGNEE  COMMUNITY
ACCESS  ORGANIZATION  FOR THE COSTS OF PEG CHANNEL FACILITIES. ALL VIDEO
SERVICE PROVIDERS AND THE INCUMBENT CABLE OPERATOR SHALL BE  SUBJECT  TO
THE  SAME  REQUIREMENTS  FOR  RECURRING  PAYMENTS FOR THE SUPPORT OF PEG
CHANNEL FACILITIES, WHETHER EXPRESSED AS A PERCENTAGE OF  GROSS  REVENUE
OR AS AN AMOUNT PER SUBSCRIBER, PER MONTH, OR OTHERWISE.
  11.  A  LOCAL ENTITY SHALL ESTABLISH A PAYMENT FOR THE ONGOING SUPPORT
OF THE COST OF PEG FACILITIES AND SERVICES THAT WOULD  BECOME  EFFECTIVE
SUBSEQUENT  TO  THE  EXPIRATION  OF  ANY  FEE  IMPOSED  BY THIS ARTICLE,

A. 2702                            12

PROVIDED, HOWEVER, THAT NO SUCH FEE SHALL BE  ALLOCATED  SUCH  THAT  ANY
COMMUNITY ACCESS ORGANIZATION IS RECEIVING ANYTHING LESS THAN WHAT IT IS
RECEIVING  FROM  THE CABLE OPERATOR ON THE EFFECTIVE DATE OF THIS LEGIS-
LATION, AND PROVIDED, HOWEVER, THAT EVERY LOCAL ENTITY SHALL BE ENTITLED
TO  A  PAYMENT  OF  NOT LESS THAN TWO PERCENT FROM THE HOLDER OF A STATE
FRANCHISE FOR THE ONGOING SUPPORT OF THE  COST  OF  PEG  FACILITIES  AND
SERVICES.  IF,  ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, A LOCAL
ENTITY OR ITS DESIGNEE WAS IMPOSING A SEPARATE FEE TO SUPPORT PEG  CHAN-
NEL  FACILITIES  THAT  IS  IN  EXCESS OF TWO PERCENT, THAT ENTITY OR ITS
DESIGNEE MAY ESTABLISH A FEE NO GREATER THAN THAT SEPARATE FEE,  AND  IN
NO  EVENT  GREATER THAN THREE PERCENT, TO SUPPORT PEG ACTIVITIES. IF THE
PEG SUPPORT FEE IMPOSED BY A LOCAL ENTITY OR ITS DESIGNEE  IS  EXPRESSED
IN  A  MANNER  OTHER  THAN  AS A PERCENTAGE OF GROSS REVENUES, THE LOCAL
ENTITY OR ITS DESIGNEE COMMUNITY ACCESS ORGANIZATION  MAY  CONVERT  THAT
FEE  TO A CURRENTLY EQUIVALENT PERCENTAGE OF GROSS REVENUES AT ANY TIME.
THE LOCAL  ENTITY  OR  ITS  DESIGNEE  MAY  ADOPT  REQUIREMENTS  FOR  THE
PROVISION  OF  PEG-RELATED  IN-KIND  RESOURCES  BY  ALL  CABLE AND VIDEO
SERVICE PROVIDERS.
  12. RULES AND REGULATIONS ADOPTED BY THE COMMUNITY ACCESS ORGANIZATION
SHALL GOVERN THE USE OF ANY CHANNEL TIME ON THE PUBLIC CHANNELS AS  WELL
AS  THE  EQUIPMENT,  FACILITIES AND SERVICES RELATED TO THE PUBLIC CHAN-
NELS.
  13. THE COMMISSION, THROUGH AN ADMINISTRATIVE  PROCEEDING  SHALL  HAVE
THE ORIGINAL JURISDICTION TO ENFORCE ANY REQUIREMENTS UNDER THIS SECTION
TO  RESOLVE  ANY  DISPUTE  REGARDING  THE REQUIREMENTS SET FORTH IN THIS
SECTION. AFTER THE ADMINISTRATIVE  PROCESS  IS  EXHAUSTED,  A  COURT  OF
COMPETENT  JURISDICTION  SHALL HAVE JURISDICTION TO ENFORCE ANY REQUIRE-
MENT UNDER THIS SECTION OR RESOLVE ANY DISPUTE  REGARDING  THE  REQUIRE-
MENTS  SET  FORTH  IN  THIS SECTION, AND NO CABLE OPERATOR MAY BE BARRED
FROM THE PROVISION OF CABLE SERVICE OR BE REQUIRED  TO  TERMINATE  CABLE
SERVICE AS A RESULT OF SUCH DISPUTE OR ENFORCEMENT ACTION.
  S  241.    CABLE  OPERATOR'S  COMMUNITY COMMITMENT. 1. CABLE OPERATORS
SHALL INSTALL AND RETAIN OR PROVIDE, WITHOUT CHARGE, ONE SERVICE  OUTLET
ACTIVATED  FOR  BASIC  SERVICE  TO  ANY  AND  ALL  FIRE STATIONS, PUBLIC
SCHOOLS, POLICE STATIONS, PUBLIC LIBRARIES AND OTHER SUCH BUILDINGS USED
FOR MUNICIPAL PURPOSES.
  2. CABLE OPERATORS SHALL PROVIDE  INTERNET  SERVICE,  WITHOUT  CHARGE,
THROUGH  ONE  SERVICE  OUTLET ACTIVATED FOR BASIC SERVICE TO ANY AND ALL
FIRE STATIONS, PUBLIC SCHOOLS, POLICE STATIONS,  PUBLIC  LIBRARIES,  AND
OTHER SUCH BUILDINGS USED FOR MUNICIPAL PURPOSES.
  S  242.  CONSUMER  PROTECTION  RULES.  1.  EVERY  CABLE OPERATOR SHALL
PROVIDE SAFE, ADEQUATE AND RELIABLE SERVICE IN ACCORDANCE WITH  APPLICA-
BLE  LAWS, REGULATIONS, AND FRANCHISE REQUIREMENTS. CABLE OPERATORS WITH
A STATEWIDE FRANCHISE ARE SUBJECT TO THE REQUIREMENTS UNDER SECTIONS TWO
HUNDRED TWENTY-FOUR AND TWO HUNDRED TWENTY-FOUR-A OF  THIS  CHAPTER  AND
ANY  OTHER  CUSTOMER  SERVICE  STANDARDS  PERTAINING TO THE PROVISION OF
VIDEO SERVICE ESTABLISHED BY FEDERAL LAW OR  REGULATION  OR  ADOPTED  BY
SUBSEQUENT  ENACTMENT  OF  THE  LEGISLATURE.  ALL  CUSTOMER  SERVICE AND
CONSUMER PROTECTION STANDARDS UNDER THIS SECTION  SHALL  BE  INTERPRETED
AND APPLIED TO ACCOMMODATE NEWER OR DIFFERENT TECHNOLOGIES WHILE MEETING
OR EXCEEDING THE GOALS OF THESE STANDARDS.
  2. IN ADDITION, CABLE OPERATORS SHALL:
  (A)  CLEARLY  AND  CONSPICUOUSLY DISCLOSE TO USERS, IN PLAIN LANGUAGE,
ACCURATE INFORMATION CONCERNING ANY TERMS, CONDITIONS, OR LIMITATIONS ON
THE BROADBAND NETWORK SERVICE THEY OFFER, THE SPEEDS OF THE DOWNLOAD AND
UPLOADING SPEEDS OF THE PROVIDER'S INTERNET SERVICE;

A. 2702                            13

  (B) PROVIDE THEIR BROADBAND NETWORK SERVICES ON REASONABLE AND NONDIS-
CRIMINATORY TERMS AND CONDITIONS SUCH  THAT  ANY  PERSON  CAN  OFFER  OR
PROVIDE  CONTENT,  APPLICATIONS, OR SERVICES TO OR OVER THE NETWORK IN A
MANNER THAT IS AT LEAST EQUAL TO THE MANNER IN WHICH THE PROVIDER OR ITS
AFFILIATES  OFFER  CONTENT,  APPLICATIONS,  AND  SERVICES,  FREE  OF ANY
SURCHARGE ON THE BASIS OF THE CONTENT, APPLICATION, OR SERVICE;
  (C) INTERCONNECT THEIR FACILITIES WITH THE FACILITIES OF OTHER PROVID-
ERS OF BROADBAND NETWORK SERVICES ON  REASONABLE  AND  NONDISCRIMINATORY
TERMS OR CONDITIONS.
  S  243.  NEUTRAL  INTERNET AND BROADBAND NETWORKS. 1.  CABLE OPERATORS
SHALL NOT:
  (A) BLOCK, IMPAIR, DISCRIMINATE AGAINST, OR INTERFERE WITH THE ABILITY
OF ANY PERSON TO USE INTERNET BASED TRAFFIC BASED ON THE SOURCE,  DESTI-
NATION, OR OWNERSHIP OF THE INTERNET TRAFFIC THAT CARRIES VIDEO SERVICE,
IN A MANNER THAT DEGRADES OR OTHERWISE NEGATIVELY IMPACTS THE ACCESS TO,
OR THE QUALITY OF SERVICES RECEIVED BY AN END USER;
  (B)  ENGAGE  IN  ANY  EXCLUSIVE OR PREFERENTIAL DEALINGS REGARDING THE
CARRIAGE AND TREATMENT OF INTERNET TRAFFIC, INCLUDING, BUT  NOT  LIMITED
TO,  TRAFFIC  THAT  CARRIES  VIDEO PROGRAMMING OR VIDEO SERVICE, WITH AN
AFFILIATE OR THIRD PARTY PROVIDER OF  INTERNET  APPLICATIONS,  SERVICES,
CONTENT, OR VIDEO SERVICES;
  (C) IMPOSE AN ADDITIONAL CHARGE TO AVOID ANY CONDUCT THAT IS PROHIBIT-
ED BY THIS SECTION;
  (D) PROHIBIT A USER FROM ATTACHING OR USING A DEVICE ON THE PROVIDER'S
INTERNET  OR  BROADBAND NETWORK THAT DOES NOT PHYSICALLY DAMAGE OR MATE-
RIALLY DEGRADE OTHER USERS' UTILIZATION OF THE NETWORK.
  2. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT  A  BROADBAND
OR INTERNET NETWORK PROVIDER FROM TAKING REASONABLE AND NONDISCRIMINATO-
RY MEASURES:
  (A)  TO  MANAGE THE FUNCTIONING OF ITS NETWORK TO PROTECT THE SECURITY
AND TO OFFER PARENTAL CONTROLS AND OTHER CONSUMER PROTECTION MEASURES OF
SUCH NETWORK AND BROADBAND OR INTERNET NETWORK SERVICES IF SUCH  MANAGE-
MENT  DOES NOT RESULT IN DISCRIMINATION AMONG THE CONTENT, APPLICATIONS,
OR SERVICES ON THE NETWORK;
  (B) TO GIVE PRIORITY TO EMERGENCY COMMUNICATIONS; OR
  (C) TO PREVENT A VIOLATION OF A FEDERAL OR STATE  LAW,  OR  TO  COMPLY
WITH  AN  ORDER  OF  A  COURT  TO ENFORCE SUCH LAW, OR SUCH OTHER ACTION
AGAINST NETWORK THREATS AS MAY BE  AUTHORIZED  IN  SECTION  TWO  HUNDRED
FIFTEEN OF THIS CHAPTER.
  S  244.  DEPLOYMENT REQUIREMENTS FOR STATEWIDE CABLE FRANCHISE. 1.  AS
PART OF ANY FRANCHISE ISSUED BY THE COMMISSION IN THIS ARTICLE, A  CABLE
OPERATOR SHALL BE REQUIRED TO:
  (A)  BEGIN PROVIDING CABLE SERVICE ON A COMMERCIAL BASIS, WITHIN THREE
YEARS OF ISSUANCE OF THE SYSTEM-WIDE FRANCHISE, IN:
  (I) EACH COUNTY SEAT THAT IS WITHIN THE CATV COMPANY'S  SERVICE  AREA;
AND
  (II) EACH MUNICIPALITY WITHIN THE CATV COMPANY'S SERVICE AREA THAT HAS
A POPULATION DENSITY GREATER THAN SEVENTY-ONE HUNDRED ELEVEN PERSONS PER
SQUARE  MILE  OF  LAND  AREA,  AS  DETERMINED BY THE MOST RECENT FEDERAL
DECENNIAL CENSUS, PROVIDED, HOWEVER, THAT IF SUCH COUNTY SEATS  ARE  NOT
LOCATED  WITHIN  OR  CONTIGUOUS TO SUCH MUNICIPALITIES, EACH SUCH COUNTY
SEAT SHALL BE INTERCONNECTED TO THE NEAREST MUNICIPALITY  WITH  A  POPU-
LATION  DENSITY GREATER THAN PERSONS PER SQUARE MILE OF LAND AREA BY THE
CABLE OPERATOR; AND

A. 2702                            14

  (B) MAKE CABLE TELEVISION SERVICE AVAILABLE THROUGHOUT THE RESIDENTIAL
AREAS ON A COMMERCIAL BASIS, BEFORE THE  BEGINNING  OF  THE  SIXTH  YEAR
AFTER THE ISSUANCE OF THE SYSTEM-WIDE FRANCHISE, IN:
  (I)  EACH  MUNICIPALITY WITHIN THE STATE THAT HAS A POPULATION DENSITY
GREATER THAN FIVE HUNDRED ONE PERSONS PER SQUARE MILE OF LAND  AREA,  AS
DETERMINED BY THE MOST RECENT FEDERAL DECENNIAL CENSUS; AND
  (II)  THROUGHOUT THE RESIDENTIAL AREAS OF ANY MUNICIPALITIES SERVED BY
CENTRAL OFFICES LOCATED WITHIN A COUNTY  SEAT  WITHIN  THE  FRANCHISEE'S
SERVICE  AREA,  SUBJECT  TO  THE CABLE OPERATOR'S LINE EXTENSION POLICY;
PROVIDED, HOWEVER, A CATV COMPANY MAY APPLY TO  THE  COMMISSION  FOR  AN
EXEMPTION  FROM  THIS REQUIREMENT IF THE BOARD FINDS, AFTER CONDUCTING A
HEARING WITH FULL NOTICE AND OPPORTUNITY TO BE HEARD, THAT THE AREAS  IN
QUESTION  ARE  AREAS  IN  WHICH THE CATV COMPANY IS UNABLE TO ACCESS THE
PUBLIC RIGHTS-OF-WAY UNDER REASONABLE TERMS AND CONDITIONS.
  2. THE REQUIREMENTS OF SUBDIVISION ONE  OF  THIS  SECTION  SHALL  ONLY
APPLY  TO  CABLE  OPERATORS  THAT  ON  THE  DATE  OF THE ISSUANCE OF THE
SYSTEM-WIDE FRANCHISE PROVIDE MORE  THAN  FORTY  PERCENT  OF  THE  LOCAL
EXCHANGE  TELEPHONE SERVICE MARKET IN THIS STATE; AND TO CABLE OPERATORS
THAT ON THE DATE OF THE ISSUANCE OF THE  SYSTEM-WIDE  FRANCHISE  PROVIDE
TWO  HUNDRED  FIFTY  THOUSAND  OR MORE LOCAL EXCHANGE TELEPHONE LINES IN
THIS STATE;
  3. INCUMBENT CABLE COMPANIES THAT BECOME STATEWIDE  FRANCHISE  HOLDERS
SHALL  NOT  REDUCE  THE  NUMBER OR PERCENTAGE OF HOUSEHOLDS SERVED; WILL
BUILD OUT TO ALL RESIDENTIAL HOUSEHOLDS SUBJECT TO THE  OPERATOR'S  LINE
EXTENSION  POLICY  WITHIN THREE YEARS; AND WILL UPGRADE THEIR FACILITIES
TO THE ENTIRE SERVICE AREA WITHIN THREE YEARS  OF  THE  DATE  THE  CABLE
OPERATOR UPGRADES ANY PART OF ITS FACILITIES.
  4. WITHIN THREE YEARS OF THE ISSUANCE OF THE SYSTEM-WIDE FRANCHISE ALL
OTHER  STATEWIDE FRANCHISE HOLDERS SHALL FULLY COMPLETE A SYSTEM CAPABLE
OF PROVIDING CABLE SERVICE TO ALL HOUSEHOLDS WITHIN THE CABLE OPERATOR'S
SERVICE AREA, SUBJECT TO THE CABLE OPERATOR'S LINE EXTENSION POLICY.
  S 245.  DISCRIMINATION IN THE PROVISIONING OF SERVICE  PROHIBITED.  1.
THE  FRANCHISE HOLDER SHALL BECOME CAPABLE OF PROVIDING CABLE SERVICE TO
ALL HOUSEHOLDS WITHIN THE DESIGNATED SERVICE  AREA  FOOTPRINT.  A  CABLE
OPERATOR  THAT HAS BEEN GRANTED A STATEWIDE FRANCHISE UNDER THIS ARTICLE
SHALL NOT DENY ACCESS TO CABLE SERVICE TO ANY GROUP OF  POTENTIAL  RESI-
DENTIAL  SUBSCRIBERS  BECAUSE  OF THE INCOME OR RACE OF THE RESIDENTS IN
THE LOCAL AREA IN WHICH SUCH GROUP RESIDES. A FRANCHISEE MUST SUBMIT  TO
THE  COMMISSION  A DEPLOYMENT SCHEDULE, SETTING FORTH THE MUNICIPALITIES
TO BE SERVED, THE DATE SERVICE SHALL  BEGIN  IN  EACH  PROPOSED  MUNICI-
PALITY,  AND  A  DATE  CERTAIN  BY  WHICH EACH COMMUNITY WILL BE ABLE TO
RECEIVE CABLE SERVICE. THE COMMISSION WILL  ENSURE  THAT  THE  BUILD-OUT
PROCESS  IS  NOT  DISCRIMINATORY  BASED  ON  AN AREA'S CLASS OR RACE. IF
DEPLOYMENT OF CABLE SERVICES UNDER A STATEWIDE  FRANCHISE  IS  SCHEDULED
FOR DEPLOYMENT IN A GIVEN AREA, THE CABLE OPERATOR MUST OFFER SERVICE TO
ALL RESIDENTS WITHIN THE GEOGRAPHIC AREA OR THE COMMISSION MAY TERMINATE
THE  FRANCHISE  PURSUANT TO SECTION TWO HUNDRED THIRTY-SIX OF THIS ARTI-
CLE.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  THE  FRANCHISE  HOLDER
SHALL  COMPLY  WITH  CUSTOMER  SERVICE REQUIREMENTS SET FORTH IN ARTICLE
ELEVEN OF THIS CHAPTER, AT 47 C.F.R.  S 76.309(C) AND ANY OTHER CUSTOMER
SERVICE STANDARDS PERTAINING TO THE PROVISION OF  VIDEO  SERVICE  ESTAB-
LISHED  BY  FEDERAL  LAW OR REGULATION OR BY SUBSEQUENT ENACTMENT OF THE
LEGISLATURE. ALL CUSTOMER  SERVICE  AND  CONSUMER  PROTECTION  STANDARDS
UNDER THIS SECTION SHALL BE INTERPRETED AND APPLIED TO ACCOMMODATE NEWER

A. 2702                            15

OR  DIFFERENT TECHNOLOGIES WHILE MEETING OR EXCEEDING THE GOALS OF THESE
STANDARDS.
  3.  IF  THE  COMMISSION  DETERMINES  THAT  A CABLE OPERATOR HAS DENIED
ACCESS OF CABLE SERVICE TO A GROUP OF POTENTIAL RESIDENTIAL  SUBSCRIBERS
BECAUSE OF THE INCOME LEVELS OF THE RESIDENTS OF THE LOCAL AREA IN WHICH
SUCH  GROUP  RESIDES  OR  HAS  FAILED  TO  MEET THE REQUIREMENTS OF THIS
SECTION, THE COMMISSION IS AUTHORIZED TO,  AFTER  CONDUCTING  A  HEARING
WITH  FULL NOTICE AND OPPORTUNITY TO BE HEARD, IMPOSE MONETARY PENALTIES
OF NOT LESS THAN FIFTY THOUSAND DOLLARS, NOR MORE THAN ONE HUNDRED THOU-
SAND DOLLARS PER MUNICIPALITY, NOT TO EXCEED A TOTAL  OF  THREE  MILLION
SIX  HUNDRED FIFTY THOUSAND DOLLARS PER YEAR FOR ALL VIOLATIONS. A MUNI-
CIPALITY IN WHICH THE PROVIDER OFFERS CABLE SERVICE SHALL BE  AN  APPRO-
PRIATE PARTY IN ANY SUCH PROCEEDING.
  S  246. ENFORCEMENT. THE EXCLUSIVE REMEDY FOR ENFORCING THE PROVISIONS
OF THIS ARTICLE, NOTWITHSTANDING  SPECIFIC  SECTIONS  OF  THIS  ARTICLE,
SHALL  BE  AN  ACTION  IN  A  COURT OF COMPETENT JURISDICTION BROUGHT BY
EITHER THE MUNICIPALITY, THE ATTORNEY GENERAL ON BEHALF OF  THE  COMMIS-
SION OR OTHER INJURED PARTY. AT LEAST SIXTY DAYS BEFORE BRINGING SUCH AN
ACTION,  THE  MUNICIPALITY OR ATTORNEY GENERAL SHALL SERVE THE FRANCHISE
HOLDER WITH A NOTICE SETTING OUT THE ALLEGED VIOLATION AND STATING  THAT
AN  ACTION  MAY  BE  BROUGHT  UNLESS  THE  HOLDER  CORRECTS  THE ALLEGED
VIOLATION OR ENTERS INTO A BINDING AGREEMENT TO  CORRECT  THE  VIOLATION
WITHIN  THE  SIXTY-DAY  NOTICE PERIOD. THE NOTICE SHALL CONTAIN A SUFFI-
CIENTLY DETAILED DESCRIPTION OF THE  ALLEGED  VIOLATION  TO  ENABLE  THE
FRANCHISE HOLDER TO MAKE A SPECIFIC RESPONSE.
  S 2. This act shall take effect immediately.