PRINTER'S NO. 3093
No. 2323 Session of 1976
INTRODUCED BY STAPLETON, ABRAHAM, TRELLO, GILLETTE, TAYLOR,
GREEN, TOLL, ROSS, GILLESPIE, O'KEEFE, FEE, GARZIA, BERLIN,
MILLIRON, MILANOVICH, BERSON, PERRY, GALLAGHER, ENGLEHART,
O'DONNELL, SHANE, GIAMMARCO, LEDERER, DiDONATO, COHEN,
KERNICK, McINTYRE, SALOOM, ZEARFOSS, WORRILOW, SCIRICA AND
PRATT, APRIL 6, 1976
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 6, 1976
AN ACT
1 Creating the Commission on Cable Television; conferring duties
2 and powers on the commission; providing for payment of costs
3 incurred by the commission; authorizing municipalities to
4 franchise cable television systems; providing for the
5 transfer, renewal, or for future of franchises; establishing
6 classifications and rates of service; prohibiting cable
7 television companies from abandoning service; establishing
8 obligations of an owner of property containing cable
9 television facilities; creating liability for slander or
10 libel; and creating a municipal advisory council.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Short Title.--This act shall be known and may be
14 cited as the "Television Cable Commission Act."
15 Section 2. Scope.--Upon investigation of the public interest
16 associated with cable television, the General Assembly of the
17 Commonwealth of Pennsylvania has determined that while cable
18 television serves in part as an extension of interstate
19 broadcasting, operations involve public rights-of-way, municipal
20 franchising, and vital business and community service, and,
1 therefore, are of State concern; that while said operations must
2 be subject to State oversight, they also must be protected from
3 undue restraint and regulation so as to assure cable systems
4 with optimum technology and maximum penetration in this
5 Commonwealth as rapidly as economically and technically
6 feasible; that municipalities and the Commonwealth would benefit
7 from valuable educational and public services through cable
8 television systems; that the public and the business community
9 would benefit if served by cable channels sufficient to meet the
10 needs of producers and distributors of program and other
11 communication content services; and that the cable television
12 industry is in a period of rapid growth and corporate
13 consolidation and should proceed in accord with regional and
14 Statewide service objectives; and, many municipalities lack the
15 necessary resources and expertise to plan for and secure these
16 benefits and to protect subscribers and other parties to the
17 public interest in franchise negotiations.
18 There is, therefore, a need for a State agency to develop a
19 State telecommunications policy; to promote the rapid
20 development of the cable television industry responsive to
21 community and public interest and consonant with policies,
22 regulations and statutes of the Federal Government; to assure
23 that cable television companies provide adequate, economical and
24 efficient service to their subscribers, the municipalities
25 within which they are franchised and other parties to the public
26 interest; and, to encourage the endeavors of public and private
27 institutions, municipalities, associations and organizations in
28 developing programming for the public interest.
29 It is the intent of the General Assembly in the enactment of
30 this act to vest authority in an independent commission to
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1 oversee development of the cable television industry in this
2 Commonwealth in accordance with a Statewide service plan; to
3 review the suitability of practices for franchising cable
4 television companies to protect the public interest; to set
5 standards for cable television systems and franchise practices;
6 to assure channel availability for municipal services,
7 educational television, program diversity, local expression and
8 other program and communications content services; to provide
9 consultant services to community organization and municipalities
10 in franchise negotiations; and, to stimulate the development of
11 diverse instructional, educational, community interest and
12 public affairs programming with full access thereto by cable
13 television companies, educational broadcasters and public and
14 private institutions operating closed circuit television systems
15 and instructional television fixed services.
16 Section 3. Definitions.--The words and phrases used in this
17 act shall have the following meanings unless a different meaning
18 clearly appears in the context.
19 "Cable television company" shall mean any person owning,
20 controlling, operating, managing or leasing a cable television
21 system within the Commonwealth.
22 "Cable television system" shall mean any system which
23 operates for hire the service of receiving and amplifying
24 programs broadcast by one or more television or radio stations
25 and any other programs originated by a cable television company
26 or by another party, and distributing such programs by wire,
27 cable microwave or other means, whether such means are owned or
28 leased, to persons who subscribe to such service. Such
29 definition does not include:
30 (1) any system which serves fewer than 50 subscribers; or
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1 (2) any master antenna television system.
2 "Commission" shall mean the Commission on Cable Television
3 created by this act.
4 "Franchise" shall mean and include any authorization granted
5 by a municipality in terms of a franchise, privilege, permit,
6 license or other municipal authorization to construct, operate,
7 maintain, or manage a cable television system in any
8 municipality.
9 "Gross annual receipts" shall mean any and all compensation
10 received directly or indirectly by a cable television company
11 from its operations within the Commonwealth, including but not
12 limited to sums received from subscribers or users in payment
13 for programs received or transmitted, advertising and carrier
14 service revenue and any other moneys that constitute income in
15 accordance with the system of accounts approved by the
16 commission.
17 Gross annual receipts shall not include any taxes on services
18 furnished by a cable television company imposed directly on any
19 subscriber or user by any municipality, State, or other
20 governmental unit and collected by the company for such
21 governmental unit.
22 "Master antenna television system" shall mean any system
23 which serves only the residents of one or more apartment
24 dwellings under common ownership, control or management and any
25 commercial establishment located on the premises of such
26 apartment house and which transmits only signals broadcast over
27 the air by stations which may be normally viewed or heard
28 locally without objectionable interference, and which does not
29 provide any additional service over its facilities.
30 "Program" shall mean any broadcast-type, program, signal,
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1 message, graphics, data, or communication content service.
2 "State agency" shall mean any office, department, board,
3 commission, bureau, division, public corporation, agency or
4 instrumentality of the Commonwealth.
5 Section 4. Application of Act.--The provisions of this act
6 shall apply to every cable television system and every cable
7 television company as defined in section 3, operating within the
8 Commonwealth of Pennsylvania, including a cable television
9 company which constructs, operates and maintains a cable
10 television system in whole or in part through the facilities of
11 a person franchised to offer common or contract carrier
12 services. Persons possessing franchises for any of the purposes
13 contemplated by this act shall be deemed to be subject to the
14 provisions of this act although no property may have been
15 acquired, business transacted or franchises exercised.
16 Section 5. Commission Created.--(a) The Commission on Cable
17 Television is hereby created within the executive department
18 which shall consist of five members none of whom shall hold any
19 other public office and no more than three of whom shall be of
20 the same political party. The members of the commission shall be
21 representative of the broad range of interests related to
22 telecommunication needs and concerns including so far as
23 possible the fields of broadcasting, education television, cable
24 television, communication technology and consumer interests.
25 (b) Each member shall be appointed by the Governor, by and
26 with the advice and consent of the Senate for five years:
27 Provided, however, That of the five members first appointed, one
28 shall be appointed for one year, one for two years, one for
29 three years, one for four years and one for five years, from
30 January 1 next succeeding their appointment. Their successors
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1 shall be appointed for terms of five years each. Members shall
2 continue in office until their successors have been appointed
3 and qualified.
4 (c) The Governor shall designate one of the members to be
5 chairman who shall be the chief executive officer of the
6 commission. The members shall elect one of their number as vice
7 chairman of the commission.
8 (d) Vacancies in the commission occurring otherwise than by
9 expiration of term shall be filled for the unexpired term in the
10 same manner as original appointments.
11 (e) The chairman shall receive compensation fixed by the
12 Governor within the amounts made available by appropriation
13 therefor. The other members of the commission shall receive
14 compensation of $5,000 per year. The chairman and the other
15 members shall each be reimbursed for actual expenses incurred in
16 the performance of their duties.
17 (f) A majority of the members of the commission then in
18 office shall constitute a quorum for the transaction of any
19 business or the exercise of any power or function of the
20 commission. The commission may delegate to one or more of its
21 members, or its officers, agents or employees, such powers and
22 duties as it may deem appropriate.
23 (g) The commission may appoint a counsel, an executive
24 director and such other officers, employees, agents and
25 consultants as it may deem necessary, prescribe their duties and
26 fix their compensation within the amounts available therefor by
27 appropriation.
28 Section 6. Duties of the Commission.--The commission shall:
29 (1) Develop and maintain a Statewide plan for
30 development of cable television services, setting forth the
19760H2323B3093 - 6 -
1 objectives which the commission deems to be of regional and
2 State concern.
3 (2) To the extent permitted by, and not contrary to
4 applicable Federal law, rules and regulations:
5 (i) prescribe standards for procedures and practices
6 which municipalities shall follow in granting franchises,
7 which standards shall provide for:
8 (A) the issuance of a public invitation to
9 compete for the franchise;
10 (B) the filing of all franchise applications and
11 related documents as public records, with reasonable
12 notice to the public that such records are open to
13 inspection and examination during reasonable business
14 hours;
15 (C) the holding of a public hearing, upon
16 reasonable notice to the public and the commission,
17 at which the applicants and their proposals shall be
18 examined and members of the public and interested
19 parties are afforded a reasonable opportunity to
20 express their views thereon;
21 (D) the rendition of a written report by the
22 municipality, made available to the public, setting
23 forth the reasons for its decision in awarding the
24 franchise; and
25 (E) such other procedural standards as the
26 commission may deem necessary or appropriate to
27 assure maximum public participation and competition
28 and to protect the public interest;
29 (ii) prescribe minimum standards for inclusion in
30 franchises, including maximum initial and renewal terms;
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1 minimum channel capacity; provisions regarding access to,
2 and facilities to make use of, channels for education and
3 public service programs; a requirement that no such
4 franchise may be exclusive; standards necessary or
5 appropriate to protect the interests of viewers of free
6 broadcast television and the public generally, which
7 prohibit or limit cable television companies from
8 prohibiting or entering into agreements prohibiting the
9 sale or other transfer of rights for the simultaneous or
10 subsequent transmission over free broadcast television of
11 any program originated or transmitted over cable
12 television; and such other standards for inclusion in
13 franchises as the commission shall deem necessary or
14 appropriate to protect the public interest;
15 (iii) prescribe standards by which the franchising
16 authority shall determine whether an applicant possesses:
17 (A) the technical ability,
18 (B) the financial ability,
19 (C) the good character, and
20 (D) other qualifications necessary to operate a
21 cable television system in the public interest;
22 (iv) prescribe standards for the construction and
23 operation of cable television systems, which standards
24 shall be designed to promote:
25 (A) safe, adequate and reliable service to
26 subscribers,
27 (B) the construction and operation of systems
28 consistent with the most advanced state of the art,
29 (C) a construction schedule providing for
30 maximum penetration as rapidly as possible within
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1 the limitations of economic feasibility,
2 (D) the construction of systems with the maximum
3 practicable channel capacity, facilities for local
4 program origination, facilities to provide service in
5 areas conforming to various community interests,
6 facilities with the technical capacity for
7 interconnection with other systems within regions as
8 established in the commission's Statewide plan and
9 facilities capable of transmitting signals from
10 subscribers to the cable television company or to
11 other points; and
12 (E) the prompt handling of inquiries, complaints
13 and requests for repairs;
14 (v) prescribe such standards for the prohibition or
15 limitation of concentration of control over mass media
16 and communication companies and facilities and methods of
17 enforcing such standards, as the commission may determine
18 to be necessary or appropriate to protect the public
19 interest: Provided, however, That nothing herein
20 contained shall be construed to authorize the impairment
21 of any existing rights of any mass media and
22 communication company or any subsidiary thereof.
23 (3) Provide advice and technical assistance to
24 municipalities and community organizations in matters
25 relating to cable television franchises and services.
26 (4) Establish minimum specifications for equipment,
27 service and safety of cable television systems for use by
28 municipalities.
29 (5) Review and act upon applications for certificates of
30 confirmation in accordance with such standards and as
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1 hereinafter provided.
2 (6) Represent the interests of the people of the
3 Commonwealth before the Federal Communication Commission and
4 make available information on communications developments at
5 the Federal level.
6 (7) Stimulate and encourage cooperative arrangements
7 among organizations, institutions and municipalities in the
8 development of regional educational, instructional and public
9 affairs programming services.
10 (8) Cooperate with municipalities to facilitate
11 undertaking of multiple community cable television systems.
12 (9) Encourage the creation of public and community
13 groups, to organize, seek chartering when appropriate, and
14 request franchising for the establishment of public,
15 nonprofit and not-for-profit cable television operations.
16 (10) Maintain liaison with the communications industry
17 and parties both public and private, having an interest
18 therein, other states and agencies of this Commonwealth to
19 promote the rapid and harmonious development of cable
20 television services as set forth in the legislative findings
21 and intent.
22 (11) Undertake such studies as may be necessary to meet
23 the responsibilities and objectives of this act.
24 Section 7. Powers of the Commission.--(a) The commission may
25 promulgate, issue, amend and rescind such orders, rules and
26 regulations as it may find necessary or appropriate to carry out
27 the purposes of this act. Such orders, rules and regulations may
28 classify persons and matters within the jurisdiction of the
29 commission and prescribe different requirements for different
30 classes of persons or matters. A copy of any order, rule or
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1 regulation promulgated hereunder shall be filed in accordance
2 with the act of July 31, 1968 (P.L.769, No.240), known as the
3 "Commonwealth Documents Law."
4 (b) The commission may require cable television companies to
5 maintain and file such reports, contracts and statements,
6 including but not limited to ownership, accounting, auditing and
7 operating statements, engineering reports and other data as the
8 commission may deem necessary or appropriate to administer the
9 provisions of this act. The commission, including members of its
10 staff, may make reasonable inspections of the records and
11 facilities of any cable television company.
12 (c) The commission may examine, under oath, all officers,
13 agents, employees and stockholders of any cable television
14 company, municipal officials and any other persons and compel
15 the production of papers and the attendance of witnesses to
16 obtain the information necessary to administer the provisions of
17 this act.
18 (d) The commission may require and receive from any agency
19 of the Commonwealth or any political subdivision thereof such
20 assistance and data as may be necessary to enable the commission
21 to administer the provisions of this act. The commission may
22 enter into such cooperative arrangements with the Pennsylvania
23 Public Utility Commission, the Department of Education, Council
24 on the Arts and other Commonwealth agencies and municipalities,
25 each of which is hereby authorized to enter into such
26 cooperative arrangements, as shall be necessary or appropriate
27 to assure that there will be maximum utilization of existing
28 expertise in communications technology, cable television
29 operations and programming and that the purposes of this act
30 will be effectively accomplished. Upon request of the
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1 commission, any State agency may transfer to the commission such
2 officers and employees as the commission may deem necessary from
3 time to time to assist the commission in carrying out its
4 functions and duties. Officers and employees so transferred
5 shall not lose their civil service status or rights.
6 (e) The commission shall require cable television companies
7 to provide instruction to lay persons or groups to give them the
8 necessary knowledge to make use of the public access channels.
9 (f) The commission shall have and may exercise all other
10 powers necessary or appropriate to carry out the purposes of
11 this act.
12 Section 8. Costs and Expenses of the Commission.--(a) All
13 costs and expenses of the commission shall be paid pursuant to
14 appropriation in the first instance from the State Treasury, on
15 the certification of the chairman of the commission and upon the
16 audit and warrant of the Auditor General. The State Treasury
17 shall be reimbursed therefor by payments to be made thereto from
18 moneys collected pursuant to this act.
19 (b) On or before May 1 of each year, the commission shall
20 estimate the total costs and expenses necessary to operate and
21 administer the commission for the current State fiscal year,
22 including the repayment of any first instance appropriations
23 outstanding on June 30 immediately preceding such fiscal year.
24 The commission shall, at such time or times and pursuant to such
25 procedure as it shall determine by regulation, bill and collect
26 from each cable television company the greater of $100, or an
27 amount computed by multiplying such total estimated operating
28 expenses of the commission by a fraction the numerator of which
29 is the gross annual receipts of such cable television company
30 during such 12-month period preceding the date of computation as
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1 the commission shall designate by regulation, and the
2 denominator of which is the total gross annual receipts of all
3 cable television companies operating in the Commonwealth during
4 such period. A cable television company may elect to make
5 partial payments equal to one quarter of the total amount billed
6 September 30, December 31, March 31, and June 10 of the fiscal
7 year to which the billing relates. On or before December 15 of
8 each year, the commission shall compute the actual costs and
9 expenses of the commission for the preceding State fiscal year
10 and shall, on or before January 15 of such year, send to each
11 cable television company a statement setting forth the amount
12 due and payable by, or the amount standing to the credit of,
13 such cable television company computed on the basis of the above
14 stated formula, except that for the purposes of such computation
15 the fraction shall be multiplied against the total actual
16 operating expenses of the commission for such fiscal year. Any
17 amount owing by any cable television company shall be payable
18 not later than 30 days following the date of such statement. Any
19 amount standing to the credit of any cable television company
20 shall be applied as a credit against any succeeding payment due.
21 In no event shall the amount billed to or collected from any
22 cable television company pursuant to this section exceed 2% of
23 the gross annual receipts of such company during the 12-month
24 period designated by the commission.
25 Section 9. Municipal Fees; Taxes or Charges.--Nothing in
26 this act shall be construed to limit the power of any
27 municipality to impose upon any cable television company, a fee,
28 tax or charge, provided that any such fee, tax or charge when
29 added to the amount payable to the commission pursuant to
30 section 8 does not exceed the maximum amount permitted by
19760H2323B3093 - 13 -
1 applicable Federal law, rules or regulations.
2 Section 10. Franchise Requirement.--(a) No cable television
3 system, whether or not it is deemed to occupy or use a public
4 thoroughfare, shall commence operations or expand the area it
5 serves after April 1, 1977 unless it has been franchised by each
6 municipality in which it proposes to provide or extend service.
7 (b) A municipality shall have the power to require a
8 franchise of any cable television system providing service
9 within the municipality, notwithstanding that said cable
10 television system does not occupy, use or in any way traverse a
11 public street. The provision of any municipal charter or other
12 law authorizing a municipality to require and grant franchises
13 is hereby enlarged and expanded, to the extent necessary, to
14 authorize such franchises.
15 (c) Nothing in this act shall be construed to prevent
16 franchise requirements in excess of those prescribed by the
17 commission, unless such requirement is inconsistent with this
18 act or any regulation, policy or procedure of the commission.
19 Section 11. Construction of Systems.--Every cable television
20 system constructed after April 1, 1977, shall comply with such
21 construction standards as the commission may prescribe pursuant
22 to section 6(2).
23 Section 12. Certificate of Confirmation.--(a) Except as
24 provided in subsection (f), after April 1, 1977, no person shall
25 exercise a franchise, and no such franchise shall be effective,
26 until the commission has confirmed such franchise. A person
27 wishing to exercise a franchise shall file with the commission
28 an application for a certificate of confirmation in such form
29 and containing such information and supportive documentation as
30 the commission may require. The application shall be accompanied
19760H2323B3093 - 14 -
1 by proof of service thereof upon the franchisor and by such fee
2 as the commission may set.
3 (b) The commission shall hold a public hearing on any
4 application for a certificate of confirmation if it determines
5 that such a hearing is in the public interest. The commission
6 shall fix the time and place for such a hearing and cause notice
7 thereof to be given to the applicant, the chief executive
8 officer of the municipality issuing the franchise and such other
9 persons as the commission may deem appropriate. Testimony may be
10 taken and evidence received at such a hearing pursuant to such
11 rules and procedures as the commission may establish.
12 (c) The commission shall issue a certificate of confirmation
13 of the franchise unless it finds that:
14 (1) the applicant,
15 (2) the proposed cable television system, or
16 (3) the proposed franchise does not conform to the
17 standards embodied in the regulations promulgated by the
18 commission pursuant to section 6(2), or that operation of the
19 proposed cable television system by the applicant under the
20 proposed franchise would be in violation of law, any
21 regulation or standard promulgated by the commission or the
22 public interest.
23 (d) The commission may issue a certificate of confirmation
24 contingent upon compliance with standards, terms or conditions
25 set by the commission which it determines would not have been
26 met by the applicant, system or franchise as proposed.
27 (e) In the event the commission refuses to issue a
28 certificate of confirmation, it shall set forth in writing the
29 reasons for its decision.
30 (f) Any cable television company which, pursuant to an
19760H2323B3093 - 15 -
1 existing franchise, was lawfully engaged in actual operations,
2 or had commenced substantial construction (as such term is
3 defined by the commission) of a cable television system on
4 January 1, 1976 may continue to exercise said franchise pursuant
5 to the terms thereof, provided such company files with the
6 commission, on or before July 1, 1977, an application in such
7 form and containing such information and supporting
8 documentation as the commission may require. The commission
9 shall issue a certificate of confirmation to such a cable
10 television company valid for five years without further
11 proceedings, which certificate may be renewed by the commission
12 on application for five-year terms pursuant to the provisions of
13 section 13.
14 (g) Any franchise which has been granted but not exercised
15 as indicated by substantial performance within one year of
16 January 1, 1977 shall be deemed contrary to the public interest
17 and intent of such franchise and any certificate of confirmation
18 previously issued by the commission shall be invalidated, unless
19 the cable television company can make an adequate showing that
20 substantial performance was precluded by circumstances beyond
21 the reasonable control of such company. Any subsequent
22 application for a certificate of confirmation shall be
23 determined in accordance with the provisions of this section.
24 (h) The commission shall issue a certificate of
25 confirmation, valid for a five-year period, to any cable
26 television company engaged in actual and lawful nonfranchised
27 cable television operations on April 1, 1977, if application for
28 such a certificate is made to the commission on or before
29 September 1, 1978. Any such company which files such an
30 application may continue to operate within the limits of the
19760H2323B3093 - 16 -
1 area in which it was actually rendering service on April 1, 1977
2 as determined by the commission. Such a certificate of
3 confirmation may be renewed by the commission on application for
4 five-year terms pursuant to the provisions of section 13. Any
5 such company which fails to file an application pursuant to this
6 section on or before September 1, 1978 shall thereafter be
7 prohibited from continuing operation of a nonfranchised cable
8 television system: Provided, however, That the commission may
9 authorize such continued nonfranchised operation in
10 extraordinary circumstances for such periods as the commission
11 may deem appropriate.
12 (i) Nothing in this section shall be deemed to validate a
13 franchise not granted in accordance with law or affect any
14 claims in litigation on the effective date of this act. No
15 confirmation under this section shall preclude invalidation of
16 any franchise illegally obtained.
17 Section 13. Transfer, Renewal or Amendment of Franchises and
18 Transfer of Control Over Franchises and System Properties.--(a)
19 No transfer, renewal or amendment of any franchise, or any
20 transfer of control of a franchise or certificate of
21 confirmation or of facilities constituting a significant part of
22 any cable television system shall be effective without the prior
23 approval of the commission. Such approval shall be required in
24 addition to any municipal approval required under the franchise
25 or by law. For the purposes of this section, a merger or
26 consolidation of two or more cable television companies shall be
27 deemed to be a transfer of the franchises or certificates
28 granted to such companies.
29 (b) A person wishing to transfer, renew or amend a
30 franchise, or to transfer control of a franchise or of a
19760H2323B3093 - 17 -
1 substantial part of the facilities thereof shall file with the
2 commission an application for approval of such change, in such
3 form and containing such information and supporting documents as
4 the commission may require. The application shall be accompanied
5 by proof of service thereof upon the franchisor, if any, and by
6 such fee as the commission may set. The commission may hold a
7 public hearing on any such application as set forth in section
8 12(b).
9 (c) The commission shall approve the application unless it
10 finds that the applicant, the proposed transferee or the cable
11 television system does not conform to the standards embodied in
12 the regulations promulgated by the commission pursuant to
13 section 6 or that approval would be in violation of law, any
14 regulation or standard promulgated by the commission or the
15 public interest: Provided, however, That a failure to conform to
16 the standards embodied in the regulations promulgated by the
17 commission shall not preclude approval of any such application
18 if the commission finds that such approval would serve the
19 public interest.
20 (d) The commission may approve the application contingent
21 upon compliance with standards, terms or conditions set by the
22 commission which it determines would not have been met by the
23 proposed transfer, renewal or amendment.
24 (e) In the event the commission refuses to approve the
25 application, it shall set forth in writing the reasons for its
26 decision.
27 (f) Approval of a transfer, renewal or amendment under this
28 section shall not preclude invalidation of a franchise illegally
29 obtained.
30 Section 14. Interconnection and System Coordination.--When
19760H2323B3093 - 18 -
1 the commission finds it to be in the public interest, the
2 commission may, either upon application of an interested party
3 or on its own initiative, and after public notice and
4 opportunity for hearing, order the interconnection of cable
5 television systems and facilities or the coordinated operation
6 of such systems and facilities. The commission may append to
7 such order such reasonable terms and conditions as will best
8 promote the public interest.
9 Section 15. Requirement for Adequate Service.--(a) Every
10 cable television company shall provide safe, adequate and
11 reliable service in accordance with applicable laws,
12 regulations, and franchise requirements.
13 (b) When, upon complaint or upon its own motion, and after
14 public notice and opportunity for hearing, the commission finds
15 that, despite its economic feasibility, the construction or
16 operation of a franchised or certificated cable television
17 system has been unreasonably delayed or that the extension of
18 service to any persons or area within a cable television
19 company's territory has been unreasonably withheld, it may order
20 such construction, operation or extension on such terms and
21 conditions as it deems reasonable and in the public interest.
22 (c) When, upon complaint or upon its own motion, and after
23 public notice and opportunity for hearing, the commission finds
24 that a cable television company is not meeting the service
25 requirements and obligations imposed by this act, by the
26 regulations promulgated by the commission, or by its franchise,
27 it may order compliance therewith on such terms and conditions
28 as it deems reasonable and in the public interest.
29 (d) Failure to comply with an order of the commission issued
30 under subsections (b) and (c) shall be grounds for denial,
19760H2323B3093 - 19 -
1 suspension or revocation of the right to exercise a franchise or
2 to operate pursuant to a certificate of confirmation.
3 Section 16. Rates.--(a) Except as otherwise provided in
4 this section, the rates charged by a cable television company
5 shall be those specified in the franchise which may establish,
6 or provide for the establishment of reasonable classifications
7 of service and categories of subscribers, or charge different
8 rates for differing services or for subscribers in different
9 categories.
10 (b) Such rates may not be changed except by amendment of the
11 franchise.
12 (c) No rate provision in any franchise shall bind a
13 municipality for more than ten years and no rate provision in
14 any renewed franchise shall bind a municipality for more than
15 five years. In the event that an existing franchise purports to
16 bind a municipality with respect to rates for a period to expire
17 after January 1, 1987, such provisions shall have no further
18 force or effect after January 1, 1987. Any rate or rates found
19 by the commission, after public notice and opportunity for
20 hearing, to be discriminatory or preferential as between
21 subscribers similarly situated shall thereafter be void. Reduced
22 rates or free service to government, educational or charitable
23 institutions shall not be considered unduly discriminatory or
24 preferential.
25 (d) In the event the commission finds that any rate is
26 discriminatory or preferential pursuant to subsection (c) or
27 that any cable television company is in violation of an order
28 issued by the commission pursuant to section 15 requiring
29 adequate service, it may issue an order requiring the
30 municipality and the cable television company to provide for new
19760H2323B3093 - 20 -
1 rates which are non-discriminatory and non-preferential or
2 reduced to reflect the inadequate service.
3 (e) The commission may, after public notice and opportunity
4 for hearing, prescribe rates for cable television service when:
5 (1) existing rates have been found discriminatory or
6 preferential and, after reasonable opportunity, the
7 municipality and the cable television company have not
8 provided for new rates which are non-discriminatory or non-
9 preferential, as provided in subsection (d);
10 (2) a cable television company is in violation of an
11 order issued by the commission pursuant to section 15
12 requiring adequate service and, after reasonable opportunity,
13 the municipality and the cable television company have not
14 provided for new rates reduced to reflect the inadequate
15 service, in which case the commission may require appropriate
16 rate reductions;
17 (3) having reduced rates pursuant to paragraph (2), the
18 commission finds that the cable television company has
19 substantially remedied the deficiencies, in which case the
20 commission shall return the rates to those rates stipulated
21 in the franchise;
22 (4) upon complaint by any interested party and after
23 reasonable opportunity for negotiation between the
24 municipality and the franchisee, it finds that rates are not
25 established by or pursuant to the terms of the franchise, in
26 which event, the commission shall fix rates at a level
27 comparable to rates fixed in comparable franchises requiring
28 comparable service for comparable service areas; and
29 (5) upon request by a municipality and cable television
30 company that the commission prescribe applicable rates, made
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1 in such manner as the commission by regulation may prescribe
2 and certifying that they are unable to agree upon rates to
3 include in any franchise or renewal thereof, in which event
4 the commission shall fix rates at a level comparable to rates
5 currently being fixed in cable television franchises for
6 comparable service in comparable service areas; provided that
7 if the municipality and the company thereafter agree upon
8 rates, such agreed rates shall become effective.
9 Section 17. Abandonment of Service.--(a) No cable television
10 company, notwithstanding any provision in a franchise, may
11 abandon any service or portion thereof without having given six
12 months' prior written notice to the commission and to the
13 franchisor, if any, and to the municipalities it serves.
14 (b) When abandonment of any service is prohibited by a
15 franchise, no cable television company may abandon such service
16 without written consent of the franchisor, if any, and the
17 commission. In granting such consent, the commission may impose
18 such terms, conditions or requirements as in its judgment are
19 necessary to protect the public interest.
20 Section 18. Termination of Franchises.--(a) A franchise
21 shall terminate at the expiration of its term or otherwise in
22 accordance with the provisions thereof, unless, prior thereto,
23 the commission otherwise orders. The commission may so order
24 only if it finds, after public notice and opportunity for a
25 hearing, that the franchisee:
26 (1) has committed a material breach of its franchise or
27 any applicable provisions of this act or of the regulations
28 promulgated by the commission, and has failed, without
29 reasonable justification, to cure said breach within 60 days
30 after having received written notice thereof from the
19760H2323B3093 - 22 -
1 commission; or
2 (2) has been adjudicated a bankrupt or has filed a
3 voluntary petition for bankruptcy or reorganization or for an
4 order protecting its assets from the claims of creditors and
5 the commission finds that termination of the franchise or
6 certificate of confirmation under such conditions is in the
7 best interests of the public.
8 (b) Upon termination of a franchise or certificate of
9 confirmation, the cable television company shall dispose of its
10 facilities in accordance with the provisions of the franchise or
11 certificate. However, on motion of any interested party or upon
12 its own motion, and after public notice and opportunity for
13 hearing, if the commission finds that the continued presence of
14 the facilities in any public thoroughfare would pose a nuisance
15 to the municipality or its residents, the cable television
16 company shall remove its facilities within such period as the
17 commission shall order. In the absence of any applicable
18 franchise or certificate provision or order by the commission to
19 the contrary, the cable television company may abandon its
20 facilities.
21 Section 19. Forfeiture.--(a) Every cable television company,
22 and all officers, agents and employees of any cable television
23 company shall obey, observe and comply with every order,
24 direction or requirement made by the commission, under authority
25 of this act, so long as the same shall be and remain in force.
26 Except as provided in subsection (b), any cable television
27 company which shall violate any provision of this act, or which
28 fails, omits or neglects to obey, observe or comply with any
29 order or any direction or requirement of the commission, shall
30 forfeit to the people of the Commonwealth of Pennsylvania a sum
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1 to be set by the commission not to exceed $1,000 for each and
2 every offense; every violation of any such order or direction or
3 requirement, or of this act, shall be a separate and distinct
4 offense, and, in case of a continuing violation, each and every
5 day the violation continues shall be a separate and distinct
6 offense.
7 (b) Notwithstanding subsection (a), any cable television
8 company which:
9 (1) shall fail to make and file its annual report as and
10 when required or within such extended time as the commission
11 may allow,
12 (2) shall fail to make specific answers to any question
13 within the period specified by the commission for the making
14 and filing of such answers, or
15 (3) shall fail to submit such special reports as the
16 commission may from time to time require, within the period
17 specified by the commission for the submission thereof, shall
18 forfeit to the Commonwealth the sum of $100 for each and
19 every day such company shall continue to be in default with
20 respect to such annual report, answer, or special report.
21 (c) An action to recover a forfeiture under subsection (a)
22 or (b) may be brought at any time within one year after the
23 cause of action accrues, in any court of competent jurisdiction
24 in this Commonwealth in the name of the people of the
25 Commonwealth of Pennsylvania, on the complaint of the
26 commission. In any such action all forfeitures incurred up to
27 the time of commencing the same may be sued for and recovered
28 therein, and the commencement of an action to recover a
29 forfeiture shall not be, or be held to be, a waiver of the right
30 to recover any other penalty or forfeiture. All moneys recovered
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1 in any such action, together with the costs thereof, shall be
2 paid into the State Treasury to the credit of the General Fund.
3 Section 20. Landlord-tenant Relationship.--(a) No landlord
4 shall:
5 (1) interfere with the installation of cable television
6 facilities upon his property or premises, except that a
7 landlord may require:
8 (i) that the installation of cable television
9 facilities conform to such reasonable conditions as are
10 necessary to protect the safety, functioning and
11 appearance of the premises, and the convenience and well-
12 being of other tenants;
13 (ii) that the cable television company or the tenant
14 or a combination thereof bear the entire cost of the
15 installation, operation or removal of such facilities;
16 and
17 (iii) that the cable television company and the
18 tenant agree to indemnify the landlord for any damage
19 caused by the installation, operation or removal of such
20 facilities.
21 (2) demand or accept payment from any tenant, in any
22 form, in exchange for permitting cable television service on
23 or within his property or premises, or from any cable
24 television company in exchange therefor in excess of any
25 amount which the commission shall, by regulation, determine
26 to be reasonable; or
27 (3) discriminate in rental charges, or otherwise,
28 between tenants who receive cable television service and
29 those who do not.
30 (b) Rental agreement and leases executed prior to the
19760H2323B3093 - 25 -
1 effective date of this act may be enforced notwithstanding this
2 section.
3 (c) No cable television company may enter into any agreement
4 with the owners, lessees or persons controlling or managing
5 buildings served by a cable television, or do or permit any act,
6 that would have the effect, directly or indirectly of
7 diminishing or interfering with existing rights of any tenant or
8 other occupant of such building to use or avail himself of
9 master or individual antenna equipment.
10 Section 21. Censorship Prohibited.--(a) The commission shall
11 not prohibit or limit any program or any class or type of
12 program or otherwise censor the communications or signals
13 transmitted by any cable television company or over any cable
14 television system, and shall not promulgate any regulation or
15 condition which would interfere with the right of free speech by
16 means of cable television.
17 (b) No municipality shall prohibit or limit any program or
18 class or type of program or impose discriminatory or
19 preferential franchise fees in any manner that would tend to
20 encourage or discourage programming of any particular nature,
21 directly or indirectly.
22 (c) No cable television company shall prohibit or limit any
23 program or class or type of program presented over a leased
24 channel or any channel made available for public access or
25 educational purposes.
26 Section 22. Liability for Obscenity, Defamation and Invasion
27 of Privacy.--Neither the cable television company whose
28 facilities are used to transmit a program produced by a person
29 other than such cable television company pursuant to the
30 provisions of this act or of Federal law or of applicable
19760H2323B3093 - 26 -
1 regulations, nor the officers, directors or employees of any
2 such cable television company shall be liable for damage arising
3 from any obscene or defamatory statements or actions or invasion
4 of privacy occurring during any program when such company does
5 not originate or produce such program.
6 Section 23. Advisory Council.--Municipalities, granting a
7 cable television system franchise, shall have an Advisory
8 Council on Cable Television composed of representative members
9 of the municipality. The council shall have the responsibility
10 of insuring municipal compliance with the regulations of the
11 commission, and shall also work to promote good community use of
12 cable television facilities.
13 Section 24. Invalid Provisions.--If any provision of this
14 act or the application of such provision to any circumstance is
15 held invalid for any reason whatsoever, the remainder of this
16 act or the application of the provision to other circumstances
17 shall not be affected thereby.
18 Section 25. Effective Date.--This act shall take effect
19 immediately and shall remain in effect for five years at which
20 time its provisions shall expire unless reenacted by the General
21 Assembly.
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