File No. 172

House of Representatives, March 28, 2006

The Committee on Energy and Technology reported through REP. FONTANA of the 87th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING COMMUNITY ACCESS TELEVISION.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (c) of section 16-331 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(c) (1) A representative of a community antenna television company issued a certificate of public convenience and necessity in accordance with this section shall, twice a year, arrange for and hold a meeting with the advisory council established, in accordance with regulations adopted by the department in accordance with chapter 54, for the franchise area served by such company. (2) The department shall designate an advisory council as an intervenor in any contested case before the department involving the community antenna television company which the council is advising. Such company shall provide to the chairperson of its advisory council a copy of any report, notice or other document it files with the department. If a community antenna television company fails or refuses to furnish adequate service to any customer, the advisory council for the franchise area served by the company may file a written petition with the department alleging the failure or refusal. The department shall hold a hearing on such petition and, not later than one hundred fifty days after receiving the petition, shall issue a written decision on the petition. The company shall thereafter furnish service to the customer in accordance with the conditions prescribed under the department's decision. (3) Each community antenna television company shall, every six months, provide on bills, bill inserts or letters to subscribers, and shall prominently post in the company's primary subscriber service area and community access facility, a notice indicating the name and an address of the chairperson of the company's advisory council and describing the responsibilities of the advisory council. Each such company shall provide its advisory council with an opportunity to review such notice prior to distributing or posting the notice. (4) The department shall adopt regulations in accordance with the provisions of chapter 54 to establish a state-wide advisory council that shall assist local advisory councils in the performance of their functions and disseminate information to local advisory councils that is relevant to the interests of customers of community antenna television companies.

Sec. 2. Subsection (d) of section 16-331 of the general statutes is amended by adding subdivision (7) as follows (Effective October 1, 2006):

(NEW) (7) Notwithstanding the provisions of this subsection, if at any time after the grant of an initial or renewal term of a franchise, the community antenna television company and the third-party nonprofit community access provider reach an agreement that a community antenna television company will provide a capital contribution to such provider in a mutually agreeable amount solely for the purpose of the upgrade or replacement of capital equipment, the Department of Public Utility Control shall grant a two-year extension of such franchise term, provided the community antenna television company commits to pass said capital contribution in subscriber rates. Such extension shall not be a contested case proceeding and shall be applicable to no more than one time per renewed franchise term.

Sec. 3. Subsection (f) of section 16-331 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(f) Each applicant for a certificate shall finance the reasonable costs of a community needs assessment, conducted by an independent consultant and developed jointly by the department, the Office of Consumer Counsel, the local advisory council and the applicant, which assessment shall analyze a community's future cable-related needs and, if applicable, shall provide the department with assistance in analyzing an operator's past performance, as defined in subsection (d) of [section 16-333l] this section. The department shall supervise the assessment and provide the independent consultant with the date upon which the assessment shall be completed and filed with the department. Such community needs assessment shall be conducted in lieu of the requirement in subdivision (12) of subsection (c) of section 16-333-39 of the regulations of Connecticut state agencies. In its final decision, the department shall state the reasons for not implementing any key recommendations made in any such needs assessment. The provisions of this subsection shall not apply to a franchise area which is subject to effective competition, as defined in 47 USC 543, as from time to time amended, at the time the application is received by the department.

Sec. 4. Subsection (g) of section 16-331 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(g) Each certificate of public convenience and necessity for a franchise issued pursuant to this section shall be nonexclusive, and each such certificate issued for a franchise in any area of the state where an existing franchise is currently operating shall not contain more favorable terms or conditions than those imposed on the existing franchise. This subsection shall not apply to the length of the term of such certification as may be determined pursuant to subsection (d) of this section. A certificate may require a franchise to allow community access television interconnection with an existing or potential competitor franchise.

Sec. 5. Subsection (d) of section 16-331a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(d) Each company or organization shall conduct outreach programs and promote its community access services. Such outreach and promotion may include, but not be limited to (1) broadcasting cross-channel video announcements, (2) distributing information throughout the franchise area and not solely to its subscribers, (3) including community access information in its regular marketing publications, (4) broadcasting character-generated text messages or video announcements on barker or access channels, (5) making speaking engagements, [and] (6) holding open receptions at its community access facilities, and (7) in multitown franchise areas, encouraging the formation and development of local community access studios operated by volunteers or nonprofit operating groups.

Sec. 6. Subsection (h) of section 16-331a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(h) Upon the request of the Office of Consumer Counsel or the franchise's advisory council, and for good cause shown the department shall require an organization responsible for community access operations to have an independent audit conducted at the expense of the organization. For purposes of this subsection, "good cause" may include, but not be limited to, the failure or refusal of such organization (1) to account for and reimburse the community access programming budget for its commercial use of community access programming facilities, equipment or staff, or for the allocation of such facilities, equipment or staff to functions not directly related to the community access operations of the franchise, (2) to carry over unexpended community access programming budget accounts at the end of each fiscal year, (3) to properly maintain community access programming facilities or equipment in good repair, or (4) to plan for the replacement of community access programming equipment made obsolete by technological advances. In response to any such request, the department shall state, in writing, the reasons for its determination.

Sec. 7. Section 16-331a of the general statutes is amended by adding subsection (o) as follows (Effective October 1, 2006):

(NEW) (o) Each company or organization shall consult with its advisory council in the formation of a community access programming policy, the adoption of the community access programming budget and the allocation of capital equipment and community access programming resources.

Sec. 8. Section 16-331c of the 2006 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

Each community antenna television company, as defined in section 16-1, as amended, shall annually contribute to the advisory council in its franchise area an amount not less than two thousand dollars [. An] and to the state-wide advisory council an amount not less than two hundred dollars. A local advisory council may at its option receive any or all of its funding through in-kind services of the community antenna television company. [Each] The state-wide advisory council and each local advisory council shall annually, on January thirty-first, provide the Department of Public Utility Control with an accounting of any funding or services received.

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either House thereof for any purpose:

OFA Fiscal Note

State Impact: None

Municipal Impact: None

Explanation

The bill requires the Department of Public Utility Control (DPUC) to adopt regulations establishing a statewide cable advisory council. It also requires each cable TV company to contribute $200 annually to the statewide council. There are an estimated 24 cable franchises in the state. While the bill requires DPUC to audit the statewide cable advisory council, the funding received by the council is not deposited into a state account. Therefore, there is no fiscal impact.

The Out Years

State Impact: None

Municipal Impact: None



OLR Bill Analysis

sHB 5265

AN ACT CONCERNING COMMUNITY ACCESS TELEVISION.

SUMMARY:

By law, the Department of Public Utility Control (DPUC) determines whether a cable TV company or a nonprofit organization will administer public, educational, and government (“community”) access programming in the company's franchise area. If a nonprofit organization has this responsibility, this bill allows the DPUC to extend the company's franchise by two years if it agrees with the non-profit organization to provide funds solely to upgrade or replace capital equipment. The bill requires the company or nonprofit organization to consult with the local cable advisory organization on certain issues and broadens what can be included in community access outreach programs.

The bill requires DPUC to adopt regulations establishing a statewide cable advisory council to (1) help local advisory councils perform their functions and (2) disseminate information to the local councils that is relevant to cable company customers. It requires each cable TV company to contribute $200 annually to the statewide council. It requires the statewide council to report to DPUC annually on January 31 accounting for any funding or services received.

By law, a company must conduct a needs assessment when it seeks a franchise certificate, unless it is subject to effective competition as defined by federal law. The bill requires DPUC to state its reason for not implementing any key recommendations in its final decision on the franchise application. It also allows DPUC to require that the company allow a community access interconnection with its existing or potential cable competitors in the franchise area as a condition of granting the certificate.

By law, DPUC must require a nonprofit community access organization to undergo an audit, at its expense, for good cause, if the Office of Consumer Council or the local advisory council requests the audit. The bill specifies what constitutes good cause. It also requires DPUC to state its reasons when responding to the request for the audit.

EFFECTIVE DATE: October 1, 2006

Extension of Cable Franchise

This bill allows DPUC to extend a cable company's initial or renewal franchise by two years if the company agrees with the non-profit community access provider for the franchise to provide funds to upgrade or replace capital equipment for public access. The company has to agree to pass on the contribution in subscribers' rates. The DPUC's decision must be made in a non-contested case. In the case of renewal franchises, there can only be one extension per franchise term.

Consultation with Local Advisory Council

The bill requires the company or nonprofit organization to consult with the local cable advisory council in (1) establishing community access policies, (2) the adoption of a community access programming budget, and (3) the allocation of capital equipment and community access programming resources.

Outreach Programs

By law, the company or nonprofit organization must conduct an outreach program. The program may encourage the formation and development of local community access studios operated by volunteers or nonprofit groups in multitown franchise areas.

Audits of Nonprofit Community Access Providers

The bill specifies that good cause warranting an audit of a nonprofit community access provider can include the organization's failure or refusal to:

1. account for and reimburse the community access programming budget when (a) the access facilities, equipment, or staff are used for commercial purposes or (b) the facilities, equipment, or staff are allocated to functions not directly related to the franchise's access operations;

2. carry over unspent access programming funds to the next fiscal year;

3. properly maintain access facilities and equipment in good repair; or

4. plan for the replacement of access equipment made obsolete by technological change.

COMMITTEE ACTION

Energy and Technology Committee

Joint Favorable Substitute