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HomeMy WebLinkAbout1990 Cable Commission AgendasCITY OF ITHACA TV CABLE COMMSSION Meeting November 13, .1990 7:30 PM Third Floor Conference Room - City Hall 1990 7 NOV '� NOV ' 1. Call to Order 2. Approval of minutes of October 9, 1990 meeting 3. Chair's report a. Commission Records b. Nominations of New Commission Members 4. Public comment 5. ACC's report 6. Public Comment 7. Cable Access Advisory Board Report - Peter Hess a. Government/Educational Channel 8. Old Business a. WVIA b. Political. Endorsements on Access 9. New Business a. Complaints City of Ithaca Cable Commission Minutes of October 9th, 1990 Present: Chris Heegard, Peter Hess, Tom Terrizzi 1. Chairperson's report A. Organizational support from the City Tom Terrizzi met with Mayor Nichols regarding organizational support for the Commission. The Mayor stated that he wants to provide the Cable Commission with the support it needs to be effective. The following commitments were made toward improving organizational support: -The City Attorney's office will be available to do typing and copying for the Commission. - Telephones in the City Attorney's office will be available for Commission _business. - The City will purchase background material that might be useful to the Commission, for example: A copy of the State Cable Regulations Industry publications Publications of the NFLCP - The City Clerk's office will continue to distribute the Agenda and Minutes. B. Commission Records. Tom will make an effort to review and organize the files of the Commission which are currently not well organized. C. Nominations of new Commission members. Two new Commission members are to be nominated by the Mayor. He is close to making those nominations. 2. Public comment. There was no public comment. 3. ACC Manager' Report (attached) A. ACC personnel will meet with Robert Fletcher (on 10/10) and WVIA engineering staff (on 10/17) regarding the technical feasibility of resuming carriage of WVIA on the system. B. Pursuing thequestionof the recent raise in installation rates, Chris Heegard asked ACC manager Barbara Lukens whether she had information, requested at the last meeting, about what ACC paid its contractors who did installations. Barbara said that she had that information but would not provide it to the commission, except to say that it was less than the $40.00 the company charges customers for installations. She said that these installations have associated costs additional to what the contractor is paid, such as supervision, checking, and billing. Tom said that he was bothered by what seemed like an explicit misrepresentation contained in the letter that informed us of the increase. The letter stated that the new rate did not fully cover installation cost. C. Government and Educational Access Channels Tom noted that state regulations required cable operators to provide channels for government and educational access. He asked Barbara why it was not, then, ACC's responsibility to assume the costs involved in establishing those channels. Barbara replied that her opinion is that it is ACC's obligation to provide bandwidth for the required channels, but not equipment. The City Attorney will be asked to follow up. 4. Community Access Advisory Board report (attached) 5. Old business A. Installation charge increases - Discussed during Manager's report. B. WVIA - Discussed during Manager's report. C. Political endorsements on access In a phone conversation with Tom, Steve Shaye of the New York State Cable Commission said that John Grow, counsel for the S tate Commission, sent a letter to the City Commission about the NYSCC's policy on political endorsements. In the letter Mr. Grow states that NYSCC rules do not prohibit the use of access by candidates for political office or the endorsement of candidates. While the regulations do not speak directly to political fund raising, the opinion of Mr. Grow is that this is similar to commercial speech and therefore prohibited. The ICC does not have this letter on record, so a second copy is being sent to us. Tom asked Barbara if ACC would be willing to abide by the opinion expressed in the letter from NYSCC, once a copy is in hand, without amendment to the franchise. Barbara said that ACC would change their policy to conform with the letter, which could be attached to the franchise or to the minutes of a Cable Commission meeting. D. Federal legislation update The federal legislation pertaining to re -regulation of the cable industry has died in the Senate. Tom said that Steve Shea told him that the NYS CC did not support the legislation because its consumer protection provisions were not as strong as the State's are. Barbara noted that one of the objections consumer advocates had to the legislation was that basic service would be limited to off -air programming and access. Cable only services (such as ESPN, CSPAN) would not be carried on the basic tier. 6. New Business A. Tom said that Steve Shaye was willing to come to Ithaca to talk to the commission about the operations of the State Cable Commission. Tom will try to schedule a visit after the vacancies on the commission are filled B. No complaints were received by the commission this month. The meeting adjourned at 8:45 PM Minutes submitted by Peter Hess NEW YORK STATE COMNIISSION ON CABLE TELEVISION CORNING TOWER. BLDG.. EMPIRE STATE PLAZA ALBANY. NEW YORK 12223 (518) 474-4992 (518) 486-5727 FAX WILLIAM B. FINNERAN — Chairman October 12, 1990 Barbara Lukens, General Manager American Community Cablevision 519 West State St. Ithaca, NY 14850 Dear Barbara: THEODORE E. MULFORD Commissioner BARBARA T. ROCHMAN Commissioner JOHN A. PASSIDOMO Commissioner MICHAEL E. RUSSELL Commissioner EDWARD P. KEARSE Ecrrurhe Director This is in reply to your letter of August 16, 1990 concerning the use of a public access channel by or for political candidates. In your letter you quoted from the existing franchise agreement between ACC and the City of Ithaca as follows: "A designated channel shall not be used for the promotion or sale of commercial products or services, including advertising by or on behalf of candidates for public office." (Section 14.3(D)) In fact, such language was part of Commission rules at one time. However, an entire new set of rules concerning public, educational and governmental access was adopted by the Commission in Docket No. 90174-A-2 in August, 1988. In the Commission Order Approving Renewal of the ACC -City of Ithaca franchise agreement in Docket No. 30194 (adopted February 1, 1989), the Commission referred to Section 14.3(D) of the franchise and stated that: "Commission rules do not preclude the use of access channels by candidates for public office." This statement was consistent with the lack of any provision in the new rules which precludes use of access channels by candidates and also was consistent with statements made by the Commission in its Summary of Comments and Opinion issued in Docket No. 90174-A-2 in conjunction with the new minimum PEG access standards. In the Summary of Comments and Opinion, the Commission noted that under FCC regulations applicable to public access channels in the 1970's use by candidates for public office was •restricted and stated that "[i]t is not clear to us at this time that such a restriction is appropriate." The Commission went on to state that: "One of the fundamental objectives of cable television access is to contribute to the diversity of information and information sources available to the public and to stimulate public debate by providing a forum therefor. The ability of candidates to -speak to the electorate and of the electorate to hear and examine the views of -2 - candidates is central to and consistent with such objective." (p. 23) In short, the new rules supersede Section 14.3(D) of the City of Ithaca franchise agreement. In addition, it is doubtful that a lawful basis exists for denying use of public access channel capacity to political candidates. Section 611(e) of the Cable Communications Policy Act of 1984 provides that "a cable operator shall not exercise any editorial control over any public use of channel capacity...pursuant to this section." Section 829 of the New York State Executive Law provides that the Commission "may not prohibit or limit any program or any class or type of program or otherwise censor the communications of signals transmitted by any cable TV company or over any cable TV system...." Section 829(2) provides that "[njo municipality may prohibit or limit any program or class or type of program..." as well. Under both federal and state law, a cable television company is immune from liability arising from programming carried on a public access channel. It is my understanding from reading Section XIV of the franchise that, at least for now, ACC has accepted responsibility for administering the public access channels under the guidance of the Public Access Advisory Board. I am aware that both Section 315 of the Communications Act and Section 76.205 of FCC rules impose requirements on cable operators concerning origination cablecasts by candidates for public office and I can appreciate any concern that you may have that your role as administrator of public access channels not be confused with your rights and responsibilities in respect to local origination. (Of course, ACC may make time available, either free or for a charge, to candidates on a local origination basis as distinct from public access use.) Although I am not aware of any ruling that subjects PEG access channels to the federal equal opportunities' provisions, you may choose to be especially careful to distinguish public access from local origination whenever programming involves use by, or for, a political candidate. Finally, I note that I was asked by the Chair of the Ithaca public access advisory board some time ago to clarify the effect of the Commission's Order Approving Renewal. A copy of my letter which summarizes responses given verbally is enclosed. I would also add here that use by, for or about legally qualified candidates would be subject to the same reasonable procedures concerning scheduling, studio availability, reruns, etc. that apply to other uses of public access. Very tr)ul , ours, Sohn L. Grow Counsel JLG:tac enclosure cc: Bill Demo, Chair - Ithaca Cable Commission Thomas Terrizzi, Public Access Advisory Board John Fogarty, Esq., ATC, Stamford, CT NEW YORK STATE COMMNIISSION ON CABLE TELEVISION CORNING TOWER BLDG., EMPIRE STATE PLAZA ALBANY, NEW YORK 12223 (518) 474-4992 (518) 486-5727 FAX WILLIAM B. FINNERAN — Chairman Honorable John C. Gutenberger Mayor City of Ithaca 108 E. Green Street Ithaca, NY 14850 Case # 9010073 Dear Mayor Gutenberger: You resident American THEODORE E. MULFORD Commissio�i{`er i �. 00 I _BA a l kP. ROCHMAN October 16, 1990 Commissioner • JOHN A. PASSIDOMO Commissioner MICHAEL E. RUSSELL Commissioner EDWARD P. KEARSE Executive Director will find enclosed a copy of correspondence we received from a of your municipality. We received it and forwarded a copy to Community Cablevision asking for a reply within ten days. This correspondence is for your information since this company operates within your jurisdiction. If we can be of further assistance to you, please do not hesitate to contact us at 518-474-2212. Should other residents of your area be experiencing cable television related problems, please give them our toll-free number 1-800-342-3330 for assistance. Sincerely, Carol Jamison Municipal Consultant CJ: omc r • FORM# '7...:;. {. MNTH/YEAR SENSEP. O !� N 'YO RK3 STATE COMP1 a b%1M S ABLE TELEVISION A L ILLt\ HAVE YOU CONTAPTED YOUR CABLE COMPANY? a0 S= D 11 F`ri t I PLEASE DO SO BEFORE YOU RETURN THIS FORM. 6'5 s�GJ 17U7S=1IBER YOUR NAME LAST NAME YOUR HOME ADDRESS /Da NO. & STREET ,..4:oviminumnis=111 FIRST NAME MIDDLE INITIAL i o /> /e)e ti- iU CJCfr/ r° CITY,:TOWN, VILLAGE (Circle one) COUNTY STATE ZIP CODE YOUR TELEPHONE NUMBER (- 2 7 3- S S,c8 (DAYTIME) ACCOUNT NUMBER (if known) S (10.2.4/S--0/- CABLE 10�4/S-0/" CABLE COMPANY DATE YOU FIRST CONTACTED THE CABLE COMPANY�rJLi 3e)(1U NAME OF COMPA STREET i S�9 dil- S�E�_. ZIP 11q0 CITY NATURE OF COMPLAINT (Please check) BILLING _CABLE INSTALLATION SERVICE PROBLEM PROGRAMMING PROPERTY DAMAGE RATE INCREASE OTHER DESCRIPTION OF COMPLAINT: /�`✓� G l,ey4-'t2 f -f ��G [ "Q�t 11 /y r GU ' Gv6-- /9-/. 000 :S 7Z) t — J 4�5i - - i c . // . 77-0 What form of relief are you seeking? (For example: new converter box, correction in bill, service, etc.) Have you contacted this Commission before? If so: When Telephone Case number Written Case number PLEASE READ THE FOLLOWING BEFORE RETURNING THIS FORM: - PLEASE ATTACH TO THIS FORM PHOTOCOPIES of any bills, cancelled checks, correspondence, work orders, contracts, warranties or other papers relating to your complaint. DO NOT SEND ORIGINALS !!! ir!'!:.TUFSE Ei2>/ri1Ltin _ Q DATE / // /�lrr NOTE: A PREADDRESSED RETURN ENVELOPE IS ENCLOSED FnP. YOUR CONVENIENCE. NEW YORK STATE COMMISSION ON CABLE TELEVISION EMPIRE STATE PLAZA CORNING TOWER BLDG. - 21st FLOOR ALBANY, NY 12223 1-800-342-3330 a..r....w+•M+oa..,..+a.:w.aasn:..w:.<.-.:..�,.,. ,.w4<....r...r,u:...�,.s...e.v moi... . 4 • .01 AMERICAN COMMUNITY CARLEVISION October 25, 1990 Mrs. Eleanor Beck 100 Fall View Terrace Ithaca, NY 14850 Dear Mrs. Beck, I. have been forwarded a copy of your complaint to the New York State Commission on Cable Television, and would like to clarify the situation. ACC has increased the charge for connection/activation/installation of new customers to $40. Our reconnection fee for seasonal customers or for customers transferring within our service area is $20.00 ($21.40 with tax). I apologize for any misunderstanding we may have caused you. Apprising ACC in advance of dates you will be leaving or returning will allow us to serve you better. Sincerely, Barbara L. Lukens, General Manager cc: Carol Jamison, NYSCCT Tom Terizzi, Ithaca Cable Commission BLL/mkk 519 West State Street Ithaca, New York 14850 607-272-3456 AMERICAN COMMUNITY CABLEVISION October 26, 1990 Mr. Tom Terizzi 108 E. Green St. Ithaca, NY 14850 Dear Mr. Terizzi: Attached is a copy of ACC's audited financial statements for the fiscal year ended June 30, 1990. Our efforts during that 12 month period were primarily spent on continuing the rebuild effort in a more organized fashion and improving customer service. Ulysses, Trumansburg, the Town of Ithaca, Cayuga Heights and a portion of the Village of Lansing were rebuilt to the full 60 channel capability and -crews started the rebuild work in Freeville, Newark Valley and parts of Dryden and Danby. In addition, a major effort was placed on improving our service to customers. We did this by reorganizing and cross -training our technical staff and by making them more available in the less centralized communities. We also provided additional training to our customer service representatives and we are continuing to work on improving the user friendliness of our audio response unit, which was installed to handle the more routine telephone calls, allowing the csr's to spend more quality time with the customers who require personal contact. I will be preparing a more complete summary for your community at the end of the calendar year. If you should have any questions about this report or anything else, please don't hesitate to contact me. Si cerely, .• AI— Barbara L. Lukens, General Manager cc:Mr. Ben Nichols, Mayor BLL/mkk 519 West State Street Ithaca, New York 14850 607-272-3456 American `Community Cad-le ►i ion ivis on ..of ,American :,:.Television acid Com unicatioals :Corporation Report of Independent_ Auditors. AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION Audited Financial Statements June 30, 1990 Audited Financial Statements 1 Report of Independent Auditors 12 Statement of Assets, Liabilities and Net Assets Statement of Revenues and Expenses and Changes in Net Assets 3 3 Statement of. Cash Flows 45 Notes to Financial Statements REPORT OF INDEPENDENT .AUDITORS The Board of Directors American Television and Communications Corporation Stamford, Connecticut ARCO -Marriott Tower 707 17th Street, Suite 3800 Denver, Colorado 80202 Telephone: (303) 297-9500 Fax: (303) 291-6234 Telex: 272936 • We have audited the accompanying statement of assets, liabilities and net assets of American Community Cablevision Division of.American Television- and elevisionand Communications Corporation as of June 30, 1990, and the related statements of revenues and expenses and changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Division's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. American Community Cablevision is a part of American Television and Communications Corporation and has no separate legal status or existence. Transactions with American Television and Communications Corporation and other affiliates are described in Note 1. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and net assets of American Community Cablevision Division of American Television and Com- munications Corporation at June 30, 1990, and its revenues and expenses and changes in net assets and its cash flows for the year then ended in conformity with generally accepted accounting principles. September 18, 1990 1 :tet44.4it ?-t.vvit AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION STATEMENT OF ASSETS, LIABILITIES AND. NET ASSETS June 30, 1990 ASSETS Cash Accounts receivable, less allowance for doubtful accounts of $122,150 Prepaid expenses Property, plant and equipment, at cost --Note 2: Land, building and improvements Distribution system Vehicles and other equipment Construction in progress Less accumulated depreciation Net property, plant and equipment Franchise costs, less accumulated amortization of $1,083,540 --Note 2 $ 1,809,531 14,616,652 2,272,784 243,982 18,942,949 (7,650,854) LIABILITIES AND NET ASSETS Accounts payable Accrued liabilities Subscribers' advance payments and deposits Net assets --Note 1 See notes to financial statements 2 $ 20,348 172,306 14,402 11,292,095. 1,384,875 $12,884,026 $ 184,178 494,930 227,993 907 ,101 11,976,925 $12,884,026 AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION STATEMENT OF REVENUES AND EXPENSES AND CHANGES IN NET ASSETS Year Ended June 30, 1990 Revenues: Service Connection and other Expenses --Notes 1 and 2: Operating and origination Selling, general and administrative Depreciation and amortization Interest, net Income before charge in lieu of income taxes Charge in lieu of income taxes --Note 4 Net income Net assets at beginning of year Net advances from corporate office Net assets at end of year $6,077,009 1,035,563 $ 7,112,572 2,495,477 1,672,162 1,472,593 662,768 • See notes to financial statements - 3 6,303,000 809,572 323,000 486,572 10,584,361 905,992 $11,976,925 lwvi' N3-i'n MVWrr>.k'i�,r'r_`".. att Y94 'FS r AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION STATEMENT OF CASH FLOWS Year Ended June 30, 1990 Cash Flows From Operating Activities: Net income $ 486,572 Adjustments to reconcile net income to net, cash provided by operating activities: Depreciation and amortization 1,472,593 Change in current assets and liabilities: Increase in accounts receivable (104,205) Increase in prepaid expenses (6,785) Decrease in accounts payable (408,325) Increase in accrued liabilities 83,400 Decrease in subscribers' advance payments and deposits (54,488) Net Cash Provided By Operating Activities $ 1,468,762 Cash Flows From Investing Activities: Net purchases of property, plant and equipment Franchise costs (2,357,809) (413) • Net Cash Used In Investing Activities (2,358,222) Cash Flows From Financing Activities: Advances from American Television and Communications Corporation Repayment of long-term debt Net Cash Provided By Financing Activities Net decrease in cash Cash atbeginning of year Cash at end of year Supplemental Disclosures of Cash Flow Information: 905,992 (207,597). 698,395 (191,065) 211,413 $ 20,348 Cash paid during the year for: Interest $ 720,102 Income taxes 323,000 See notes to financial statements 4 AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 1990 1. Basis of presentation American Community Cablevision Division of American Television and Communications Corporation (the Division) is principally engaged in the operation of a cable television business. Such operations consist primarily of selling video programming which is distributed to subscribers for a monthly fee through a network of coaxial cables. It operates in the City of Ithaca, New York and contiguous areas under nonexclusive franchise agreements which are in effect until 1998. The Division has no separate legal status or existence. The Division's resources and existence are at the disposal of American Television and Communications Corporation (ATC) management, subject to contractual commitments by ATC to perform certain long-term contracts within the present divisional structure. The Divisions's assets are legally available for the satisfaction of debts of the entire corporation, not solely those appearing in the accompanying statements, and its debts may result in claims against assets not appearing therein. The Division is one of several divisions and . subsidiaries of ATC, and transactions and the terms thereof may be arranged by and among members of the affiliated group. ATC is an 82% owned subsidiary of Time Warner Inc. (Time Warner). 2. Significant accounting policies Property, plant and equipment: Depreciation is provided on the straight-line basis over the.estimated useful lives of the assets as follows: Building and improvements 10-20 years Distribution system 8-15 years Vehicles and other equipment 4-10 years Franchise costs: The Division has deferred costs incurred to acquire the franchises. Additional costs incurred to renew the franchise have also been. deferred. Amortization of franchise costs is provided on the straight-line basis over periods of up to forty years. Cash: Cash consists of all highly liquid investments with a maturity of three months or less. 3. Related party transactions The statement of revenues and expenses and changes in net assets includes charges for programming and promotional services provided by Home Box Office Inc., a subsidiary of Time Warner. These charges were based upon customary rates. 5 iG�'7nx�i AMERICAN COMMUNITY CABLEVISION DIVISION OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION. NOTES TO FINANCIAL STATEMENTS June 30, 1990 3. Related party transactions (continued) The Division records charges for selling, general and administrative expenses that are directly associated with it and a portion of the ATC expenses ($482,747 for the year ended June 30, 1990) which are allocated to divisions and subsidiaries based upon subscriber levels. Interest charged.to the Division by ATC ($720,102) was computed by multiplying 68.2% of the Division's average net assets (computed using beginning and end of year balances) by the average interest rate (9.36% for the year ended June 30, 1990) on ATC's outstanding borrowings; $56,582 of the interest applicable to construction in progress was capitalized. 4. Income taxes Operating results of the Division are included in the consolidated federal income tax return of Time Warner. Time Warner allocates a portion of its tax liability to ATC as if ATC and its subsidiaries comprised a separate affiliated group. In lieu of income taxes, ATC charges the Division an amount which approximates statutory state and federal income tax rates on pretax income. 5. Leases Rental expenses for all operating leases, principally office and pole attachments, for the year ended June 30, 1990 amounted to $137,945. The Division had no significant noncancelable rental commitments. 6. Pension Plan The Division participates in anoncontributory defined benefit pension plan (the Plan) which is maintained by ATC and covers substantially all employees. The benefits under the Plan are determined based on formulas which reflect employees' years of service and compensation levels during their employment period. Total pension cost for the year ended June 30, 1990 was $11,037. AMERICAN COMMUNITY CABLEVISION October 29, 1990 Mr. Tom Terizzi 108 E. Green St. Ithaca, NY 14850 Dear Mr. Terizzi: Enclosed is a publication from the National Cable Television Association regarding some facts about telephone companies and cable TV. I thought you might appreciate the chance to review a different point of view from that of the telcos. 7cere1y, Bar ara L. Lukens, General Manager BLL/mkk 519 West State Street Ithaca, New York 14850 607-272-3456 beneath the Veneer of "Telco TV": Telephone Company Hype Versus Reality National Cable Television Association 1724 Massachusetts Avenue NW Washington, DC 20036 202-775-3550 BENEATH THE VENEER OF "TELCO TV": TELEPHONE COMPANY HYPE VERSUS REALITY The telephone industry has mounted an aggressive lobbying effort to convince Congress to overturn federal restrictions which prevent local telephone companies (telcos) from entering the cable television programming business. Under current law, telephone companies can—and already do — have significant involvement in the cable television business: • Independent telcos like GTE, Conte! and Sugar Land can own and operate cable systems outside their local telephone service areas. o All telcos can build video transport facilities and lease them to locally franchised cable companies, as Bell Atlantic's C&P Telephone Co. has done in Washington, D.C. • Current law also permits the country's rural telephone companies to provide cable service to rural areas. In fact, almost 400 permits have been granted to rural phone companies provide cable television within their local telephone service areas. • Telcos can provide a variety of other technical services, such as billing and order processing, to cable television systems. What federal law does prohibit is the ownership of cable television systems by telephone companies in areas where they also provide local telephone service. Moreover, the Modified Final Judgment governing the break-up of AT&T prohibits Regional Bell Operating Companies (RBOCs) from any involvement in information content, including television programming, in -or out of their service areas. As part of an intense, $20 million lobbying campaign aimed at overturning those restrictions, telephone companies make several claims concerning recent developments in the cable television industry. In particular, the telcos maintain that their entry into television programming would make the television marketplace more competitive. CURRENT LAW ENSURES CHOICE AND DIVERSITY The current pro -competitive restrictions on telco involvement in television have ensured that consumers around the country enjoy a wide range of entertainment and information from a diverse number of sources. During the last decade alone, the number of broadcast stations grew by 42.6%, from 1,011 stations on the air in 1980 to 1,442 in 1990. Home VCRs, a novelty at the beginning of the 1980s, were in 67% of all U.S. television households by the end of the decade. And cable television, in barely 20% of American television homes in 1980, was wired to more than 58% of all U.S. households in 1990. The number of satellite -delivered cable programming networks grew by 123%, from 31 in 1981 to 70 in 1990. Dozens of regional cable networks also launched during the 1980s. Indeed, the government's General Accounting Office (GAO) recently reported that the average American cable household in 1990 receives 34 channels of video programming for $16.33 per month—less than 50 cents per channel. Despite this growth in the choices, available to television consumers, the telephone companies argue that they must be permitted to enter the television business to provide "competition." But the telephone industry has a long and colorful history of anticompetitive conduct, which is why strong line -of -business restrictions on telephone companies currently exist. Both Congress and the courts recognize that phone companies, with powerful local monopolies to provide an essential service, have unique abilities and incentives to discriminate against competitors, at the expense of telephone ratepayers and competitive businesses. As U.S. District Court Judge Harold Greene has concluded, "the potential for use of the (phone) companies' monopoly power to impede competition is enormous." Although the telcos tout the benefits of "competition," they also make clear their intent to create a "one wire" world, with telephone companies owning and controlling the only source of information and entertainment into and out of the home. Indeed, BellSouth and other major phone companies seek to be "the first guy to the home with fiber," while at the 2 same time urging Congress to eliminate safeguards which prevent phone companies from controlling the content transmitted over that single wire. The effects of telephone company diversification have been consistent: when the phone companies enter competitive businesses, the end result has been Tess competition, not more. In fact, in nearly one-half of the nation's 50 largest cellular telephone markets, phone companies control both the wireline and non -wireline cellular service provider. To further their efforts to justify telephone company entry into the television business, the telcos also have advanced a number of myths about the potential of fiber optics technology. If the restrictions on telco involvement in content are lifted, the telcos maintain, then they would be able to accelerate the installation of "fiber to the home" transmission systems capable of bringing wondrous new services to consumers. Increasingly, however, the telcos' "blue sky" rhetoric is at odds with technical and economic reality. TELCO MYTH #1: THE CABLE/TELCO CROSS -OWNERSHIP RESTRICTION PREVENTS TELEPHONE COMPANIES FROM OFFERING NEW "INFORMATION AGE" SERVICES. Not true. With the sole exception of full -motion video (i.e., television programming), every service that telcos claim they could provide if only the law were changed is either already available today or could be provided over the telcos' existing copper wire telephone systems. For example, services such as bank -at-home, shop -at-home, remote database access, home security monitoring, at-home workstations, educational and medical services already are available — if little used — over the copper wire -based switched system the telcos have in 3 place. The fact that these and other services aren't widely prevalent is more attributable to a lack of consumer demand for these services than the technological limitations of the existing telephone network. Indeed, for 20 years the telcos have touted Integrated Services Digital Network (ISDN) technology, claiming that this copper -based network could bring "new information age" services to consumers over the existing telephone network. The telcos' recent interest in fiber optics -based "Broadband ISDN" is based on their realization that a consumer demand exists for television programming, while demand for other "bells and whistles" services the telcos already can provide is lukewarm at best. TELCO MYTH #2: THE CURRENT RESTRICTIONS PROHIBITING TELCOS FROM PROVIDING TELEVISION CONTENT DISCOURAGE THEM FROM INSTALLING FIBER OPTICS. Not true. The cross -ownership restrictions prohibit telco involvement in content, not in building transmission facilities. Most telephone companies have already installed fiber optic technology where it is practical — in trunking and feeder lines that reach into neighborhoods. In addition, several BOCs and independent telcos are already testing fiber to the home, under existing law, in several affluent communities, sometimes called "fiber to the rich." But there is no reason why Bell Atlantic, for example, must be permitted to provide "Bell Atlantic News" in order to build a fiber -based transmission system. The telcos claim that if they were permitted to provide video programming, then fiber to the home would be more cost-effective. But this argument makes no economic sense. If a telco can expect to earn a reasonable profit from leasing fiber -based systems to unaffiliated programmers, it can build 4 the system regardless of the telco's involvement in content. If, however, the telco cannot expect a reasonable profit, there is no reason to expect that allowing it to become a programmer will suddenly make construction of the plant economically feasible—unless the telco intends to illegally cross-subsizide the venture with revenues from its monopoly telephone business. The pace of fiber deployment by the telcos is a function of the immense cost and logistical and technical difficulties, not the existing ban on telco -provided content. As the telcos themselves have discovered, the costs and technical hurdles are compounded when fiber is installed all the way to the home. At a recent fiber optics seminar, five of the seven RBOCs reported that, based on field trials to date, fiber to the home is neither technically nor economically feasible at this point. It is significant, too, that the telcos have opted not to use fiber to the home in their foreign cable television systems. Indeed, the Hong Kong cable franchise—awarded to a consortium led by U S West—will employ fiber optics for long-haul trunking applications, with traditional coaxial cable used to deliver television signals to the home. This "fiber -coax" hybrid architecture already is being employed by an increasing number of cable systems in the United States. MultiChannel News; January 29,-1990, p TELCO MYTH #3: IF THE EXISTING RESTRICTIONS WERE REMOVED, THE TELCOS WOULD INSTANTLY BEGIN TO "FIBER" RURAL AMERICA. Not true. Telco executives claim that fiber to the home will become economically justifiable in the mid-1990s in newbuild areas. Indeed, the current fiber experiments conducted by the telcos are all taking place in newly constructed, upscale suburban communities. Because of the prohibitive costs of fiber to the home, it is likely that if the telcos ever wire rural America with fiber, it would only be long after the urban and suburban areas have been wired. This pattern would be wholly consistent with how telcos have deployed other telecommunications advances. 5 Indeed, features such as touch-tone dialing, call waiting and call forwarding— standard services in urban and suburban areas—are still unavailable to many rural Americans. Moreover, although telcos are allowed to build cable systems in truly rural areas, telco executives admit that stand-alone cable systems are not economically feasible in these communities. Yet telephone company officials suggest that rural America—some areas of which still must rely on rotary dialing and party lines—would instantly be wired with expensive fiber optics transmission technology, were it not for the restrictions prohibiting the telcos from controlling television content. ............................................ ............................. oshout;': resident Joyce Rinehart sai The, Washington Post •July 13, :1990: TELCO MYTH #4: HIGH-DEFINITION TV WILL NOT BE AVAILABLE TO CONSUMERS UNLESS THE TELCOS WIRE THE NATION WITH FIBER. Not true. Fiber to the home is not, necessary in order to deliver HDTV to the home. Existing cable television systems already have successfully delivered HDTV signals using standard coaxial cable. Unlike an over -the -air broadcast TV station licensed to use one 6 -MHz channel, a cable system creates its own bandwidth and has ample capacity to transmit even the most technically demanding of the many proposed HDTV systems. HDTV development has been slowed by the lack of HDTV -capable television sets, the lack of HDTV programming being transmitted and the lack of a U.S. HDTV standard, not by a lack of transmission capacity. The Federal Communications Commission has said it intends to determine a U.S. HDTV standard by 1993. In the interim, the cable industry, through its Cable Television Laboratories research and development consortium, will continue to aggressively test the various proposed HDTV transmission systems. 6 l TELCO MYTH #5: IF THE TELCOS DON'T DEPLOY FIBER, CONSUMERS WILL NOT RECEIVE THE BENEFITS THAT FIBER OPTIC TECHNOLOGY CAN OFFER FOR TELEVISION TRANSMISSION. Not true. Despite their rhetoric, the telcos do not enjoy a monopoly over the use of fiber optics. Cable television companies today are already using fiber optics, which enables cable operators to offer even greater channel capacity and a more reliable signal to subscribers. The 20 largest cable multiple system operators (MSOs) all are using fiber optics in cable systems serving over five million subscribers. Unlike the telephone industry proposals, however, cable operators are utilizing fiber optics where it makes economic and technical sense—in long-haul trunking and feeder runs, where boosters and amplifiers limit cable system channel capacity and system reliability. Fiber optics can carry a video signal over a greater distance with a lower loss of power and subsequent need for amplification. By combining fiber optic trunking and feeder applications with the coaxial cable currently running from the curb into the home—and which can carry more than 100 video channels—cable systems need not rip out and replace their entire networks in order to bring consumers the benefits of fiber. According to telephone industry estimates, the cost for the telcos to wire the nation with fiber ranges from $1,500 to $10,000 per home, which translates to a price tag of $250 billion to roughly $1 trillion to string fiber to every home in America. Cable television companies, because they need not run expensive fiber to every home, are bringing subscribers the benefits of fiber at a much lower cost — one that will not be passed on to captive telephone ratepayers. 7 TELCO MYTH #6: THE TELCOS MUST BE ENCOURAGED TO INSTALL EXPENSIVE FIBER OPTICS IN ORDER TO PROTECT AMERICA'S TECHNOLOGICAL FUTURE. Not true. Despite the telcos' dire predictions, America's existing telecommunications infrastructure—including both telephone and cable networks—provides consumers with the most reliable and versatile telephone system in the world, and with a robust video marketplace offering unrivaled diversity and consumer choice. The dazzing new services which the telcos claim they could offer in a one -wire fiber -to -the -home universe are widely available today, over the existing telephone network. More than 1,000 different companies provide consumers with more than 4,000 electronic databases; 5.6 million households are served by electronic mail, and voice information services are universally available to those with touch-tone telephones. There are nearly 100 national and regional satellite -delivered cable networks available to television viewers, and pay-per-view technology is reaching an ever-increasing number of American cable homes. Simply put, the "Information Age" has arrived, and its further development need not be held hostage by the telcos' efforts to uneconomically deploy fiber optics. Moreover, the telcos' argument that their involvement in information content would somehow improve U.S. competitiveness also is misleading. The current U.S. telecommunications trade deficit results from imports of "customer -premise" equipment such as telephone receivers, answering machines and facsimile machines—and this deficit has narrowed, according to the U.S. Commerce Department. But in those areas in which the U.S. balance of trade arguably might benefit from telco involvement in television—telephone switches and equipment, and fiber optics—the U.S. is extremely competitive and, indeed, currently runs a trade surplus. 8 h TELCO MYTH #7: THE UNITED STATES WILL FALL BEHIND OTHER COUNTRIES IN THE DEVELOPMENT OF INFORMATION TECHNOLOGIES. AFTER ALL, FRENCH CITIZENS HAVE ACCESS TO AN ADVANCED INFORMATION SYSTEM CALLED MINITEL, A SERVICE DENIED AMERICANS BECAUSE OF PHONE COMPANY RESTRICTIONS. Not True. It is ironic that the telcos cite France's Minitel system as a reason to permit the. telcos' entry into content. France's government-owned telephone company provides all the transmission and associated facilities, then contracts with independent parties to provide information services over its wires. Because the phone company has no control over the information content provided by Minitel and has no financial interest in the sale of that information—and because Minitel does not provide video programming—its structure is completely consistent with the Modified Final Judgment and the Cable Act. Despite strong support from the French government, the Minitel system has sustained large annual financial losses, and is expected to be run at a loss well into the mid-1990s. Usage of the service also has begun to decline. So-called "chat" services, many of which allow users to engage in sexually explicit online conversations, accounted for 80% of the Minitel system's traffic in 1987. 9 TELCO MYTH #8: WITHOUT TELCO -INSTALLED FIBER OPTICS, CONSUMERS WILL BE DENIED ACCESS TO MULTIPLE VIDEO CHANNELS, HDTV, PAY-PER-VIEW AND "VIDEO ON DEMAND." Not true. The telcos, particularly the RBOCs, have made many fanciful claims about the video services they could deliver via fiber optics, maintaining that without fiber, the services listed above will not be developed. Of course, cable consumers today enjoy these services over existing coaxial cable systems. The cable television industry has been delivering multiple video signals to American homes for decades, is fully capable of transmitting HDTV and pioneered the development of pay-per-view. And as cable operators continue to rapidly upgrade their systems—including installing fiber where economically feasible— consumers who today can choose from dozens of cable channels soon will have a video menu of well over 100 options. True "video on demand," described by the telcos as instant access to "every video ever made, when you want it," is not offered by cable systems for one of the same reasons it could not be offered by local phone companies—the technology for it doesn't yet exist. Setting aside the dubious question of whether it is possible to obtain the rights for and then store "every video ever made" on a random-access and fast -retrieval basis, the fact remains that "video on demand" implies central office switching of the video signals by local telephone companies. But because fiber signals are carried as light impulses, functional and economically viable optical switches first must be invented. 10 TELCO MYTH #9: RECENT BREAKTHROUGHS IN OPTICAL SWITCHING NOW MAKE VIDEO ON DEMAND AND FIBER TO THE HOME FEASIBLE. Not true. Recently, the telephone industry has made several claims about breakthroughs in optical switching, and when these announcements are made, the implication follows that the telcos have developed the final piece of their fiber puzzle. This isn't exactly the case. The switch receiving the most attention is GTE's 16 x 16 digital switch, capable of delivering 16 program sources to 16 different homes. By connecting groups of these switches, GTE has claimed success with a switch which has 128 x 256 capability (allegedly able to deliver 128 information sources to 256 reception sites). It has its shortcomings, however. First, it is unable to handle signals in the AM (Amplitude Modulation) mode, which is how all television signals arrive at the TV set. Therefore, in order for this switch to be effective, TV signals must be converted to one of the modes that the GTE device can handle—specifically, FM (Frequency Modulation) or digital. Therein lies the second shortcoming: each individual AM TV signal must be converted, and each conversion is costly and results in a loss of technical quality. Third, the extra equipment needed to convert every TV signal adds to the mechanical and electronic complexity of the switch, which increases maintenance requirements and decreases reliability. Even if it were possible to someday develop a 100 x 10,000 switch (which theoretically could deliver 100 sources of video to 10,000 users), there remain many questions concerning the practical use of such a device. In the literature released by the companies that have invented optical switches, and in the technical diagrams that accompany them, it becomes clear that not all of the 10,000 people can have simultaneous access to any one of the 100 video signals without significant additional equipment being installed, which greatly increases the complexity, reliability and cost of the overall system. Overall, the issue of how to accomplish video switching for the highly touted (but hard to define) "video on demand" comes down to this: building a switch that connects a few sources to a handful of people is comparatively easy. But building a switch that can connect 100 sources 11 to 10,000 people (any one home being able to get any six or seven services simultaneously, or all 10,000 people accessing the same service at the same time) presents a technical challenge that remains unsolved by the mere announcement of a 126 x 256 switch. CONCLUSION: THE TRUTH BEHIND THE MYTHS Why are the local telephone companies in such a rush to install fiber optics to the home? The telcos' primary motivation is an economic one. That is, the telcos are searching for methods to disguise the amounts they are overearning from telephone rates today, and to justify increases in those rates in the future: Telco Overearnings Telephone companies have traditionally been subject to rate of return regulation; that is, their rates are set to cover their annual operating expenses, plus capital investments, plus a specific rate of return on those investments. Rates of return usually are set between 12 and 15 percent. Today, however, the cost of providing local telephone service is declining. Because telephone rates in most areas were established years ago, when costs were higher, many telephone companies now are earning higher profits than their regulators intended. These declining costs are evidenced by the enormous rate decreases that have been ordered by state regulators over the past few years. According to a recent Federal Communications Commission report, in the last two years, utility commissions around the country have ordered telephone rate reductions of more than $2 billion. In 1989 alone, according to the FCC, 22 states ordered rate reductions of more than $838 million, and in the first quarter of 1990, states ordered another $131.5 million in rate reductions to consumers. Rather than reduce rates for telephone consumers, telcos would prefer to inflate their expenses, and thereby justify their current rates. The two most convenient methods for achieving those higher expenses are through the use of accelerated depreciation and higher capital outlays. Accelerated depreciation allows the telco to achieve multiple goals: the higher book expenses cause the telco's profits to appear lower; the telco recovers its 12 invested capital more quickly than it originally planned; and the telco can justify replacing its capital investments sooner. Indeed, telcos have been requesting accelerated depreciation at record levels, and in many states, those requests are being granted. Many consumers are unaware that the telcos are using depreciation for these purposes, simply because it does not show up in immediate rate increases; rather, consumers are denied rate decreases that they might otherwise be due. Further Increases in Rates Telephone companies have an incentive to maximize their total investments for two reasons. First, it removes some of the telcos "excess cash" from today's balance sheets, enabling the companies to avoid regulatory scrutiny of their high earnings, and therefore avoid potential rate reductions. And second, it provides a guarantee for the telco that rates will be increasing in the future. Because rate -of -return regulation is based upon the telco's expenses and investments, higher investments mean higher rates in the future. Clearly, the telcos' easiest opportunity to make huge new capital investments is in the uneconomical deployment of fiber optics. By advocating fiber -to -the -home, telcos are suggesting that telephone ratepayers should bear the cost of new capital investments that equal, by some estimates, three times the value of the entire U.S. telephone network. But herein lies the problem. This extremely expensive new network would provide telephone users no new voice or data services beyond those they already can receive over the existing copper telephone network. What fiber can provide—and what the telephone companies are forbidden from providing—is video programming, which is already widely available from a number of sources. Consequently, in order to justify the enormous expense of installing fiber optics to the home, telcos must manufacture an artificial demand for that technology. The telcos are attempting to create this demand by proposing to become content providers of video services, and by suggesting that fiber will transmit unidentified "new" services to consumers. It is this economic imperative—the telcos' need to prematurely replace its network in order to prevent telephone rates from declining—which is at the heart of the telephone industry's many myths about fiber optics. 13 TO: PETE, CHRIS, JIM AND CHUCK FROM: TOM RE: CABLE COMMISSION DATE: OCT. 19, 1990 Enclosed are the following items of interest: 1) Jim Ferwerda's resume. Ben has it and will present it to Common Council for approval at the next meeting. ruj 2 �99� 2 1990 2) A summary of several sections of the New York State Cable Commission regulations dealing with access channel capacity and the regulation of speech on access. I still have not received the opinion letter from the Counsel for the NYSCC regarding political speech. I'll follow up on it. . d_ &-j i rece'F✓-e-( 4 / fS eN U6 ' e 3) Some decisions and rules issued by the NYSCC. I just received the rules, dated April 4th, from the Mayor's office. I'm not sure whether he just got them or if they have been sitting in the mountain on his desk. I've also included the NYSCC Weekly Bulletin for the week of October 5, 1990. As you will see, there is really nothing that affects our franchise. Unless I get a request to the contrary, in the future I will only pass on those bulletins that contain rulings pertaining to/ us. 29 f V s %1 c- /Cekce L s Aes-( 74e714-7 C/1/1d CITY OF ITHACA T V CABLE COMMISSION Tom Terrizzi, Chair 714 N. Cayuga Street Ithaca, NY 14850 273-2283 (w) 277-3334 (h) Chris Heegard; 4 Woodland Rd. Ithaca, NY 14850 539-6643 (h) 255-4021 (w) Pete Hess 111 W. Jay St. Ithaca, NY 14850 274-3384 (w) 272-1813 (h) Jim Ferwerda 312 First Street Ithaca, NY 14850 273-.5255 (h) 255-7365 (w) 9 NYCRR§ 595.4 Minimum Standards for PEG Access (b) Designation of Channels (1) 1 full time channel for public access at least one full time channel for govt. and and educational use 1 additional channel for •govt. and ed. use when first govt./ed. channel is used 12 hrs. a day for a 90 day period. (c) Administration and use (1) Public channel shall be administered by an entity named by the municipality or, until such designation is made, by the cable company.. (2) Govt. and ed. channel shall be operated and administered by committee or commission appointed by the local govt. 9 NYCRR § 595.4(c)(8) The cable television franchise shall not exercise any editorial control over any public, educational or governmental use of channel. capacity designated for PEG purposes. NEW YORK STATE COMMISSION ON CABLE TELEVISION CORNING TOWER BLDG.. EMPIRE STATE PLAZA ALBANY. NEW YORK 12223 (518) 474-4992 (518) 486-5727 FAX WILLIAM B. FINNERAN — Chairman Mr. Thomas Terrizzi Public Access Advisory Board c/o Ithaca Cable Commission 108 East Green Street Ithaca, New York 14850 Dear Mr. Terrizzi: October 12, 1990 THEODORE E. MULFORD Commissioner BARBARA T. ROCHMAN Commissioner JOHN A. PASSIDOMO Commissioner MICHAEL E. RUSSELL Commissioner EDWARD P. KEARSE Executive Director Last year at this time, Mr. Richard Herskowitz, the then Chair of your advisory board, wrote to the Commission seeking clarification of certain issues pertaining to the use of public access channels by or on behalf of political candidates. The views of Commission staff were subsequently conveyed to Mr. Herskowitz by Steven A. Shaye of the Commission's Municipal Assistance Division. In light of a recent inquiry from the General Manager of American Community Cablevision ("ACC") concerning the same subject and because it is once again election time, I have determined to set forth the substance of our verbal responses in writing. At the outset, I note that Mr. Herskowitz quoted language contained in the ACC -City of Ithaca franchise agreement as renewed as follows: "A designated channel shall not be used for the promotion or sale of commercial products or services, including advertising by or on behalf of candidates for public office." This language was part of PEG access rules promulgated by the Commission in the early 1980's. However, it was superseded by new public access rules, a copy of which is enclosed herewith. The new rules were promulgated by the Commission in August, 1988 and became effective on or about September 8, 1988. Since the franchise renewal granted by the City of Ithaca to ACC was not perfected until after the effective date of the Commission's new public access rules, the order issued by the Commission approving the renewal stated that "Commission rules do not preclude the use of access channels by candidates for public office." (Order Approving Renewal in Docket No. 30194, issued: September 12, 1989) The effect of this statement was to preempt the implementation of the franchise language in a manner inconsistent with the Commission's minimum standards. Thus, the restrictive language contained in the franchise renewal may not be invoked to preclude all use of public access by political candidates. Mr. Herskowitz noted that the Ithaca Cable Commission had determined to permit political endorsements but to restrict fundraising. He also indicated that the Ithaca Common Council voted to strike the prohibition of political advertising. With these factors in mind, I will attempt to provide some clarification of the scope of use permitted by, for or against candidates for elective office. -2 - As noted, use of public access channels by the candidates, themselves, is permitted and, indeed, is required by existing Commission rules and the Commission's order approving the franchise renewal. Such use would clearly include the opportunity by a candidate to make a live statement on the access channel on his or her own behalf. It would also include the transmission of a video taped statement made by such candidate. It is my view that statements by non -candidates for, or against, a candidate for elective office are also within the permitted uses anticipated by the Commission when it adopted the existing rules. Since public access by definition is available for use on a nondiscriminatory basis, it is not readily apparent how such use could be prohibited. It is also unclear to me that a viable distinction can be made between the use by, or endorsement of, a candidate and political advertising. That the new rules do not prohibit political advertising, as they once did, is some evidence that the Commission determined that such a distinction is inappropriate. The question of whether a public access channel may be used for fundraising involves a somewhat different consideration. Commission rules continue to provide that public access use shall be noncommercial. In this regard, it may be argued that where any person or organization seeks to use a public access channel for the express purpose" of soliciting funds, whether for a political campaign or other purpose, such use is in the nature of a "commercial" use. On this basis, and until a formal ruling is made by the Commission, I do not believe that a distinction between fundraising and other candidate -related use would constitute a clear violation of the rules at this time. I hope you find this responsive to Mr. Herskowitz's inquiry. Very truly yo JLG:tac enc. cc: Barbara Lukens, ACC ohn L. Grow Counsel APPENDIX A ACC1SS STANDARDS 595.4 Minimum Standards for Public, Educational and Governmental (PEG) Access. (a) Definitions (1) The term "public access channel means a channel designated for noncommercial use by the public on a first-come, first-served, nondiscriminatory basis. (2) The term "educational access channel" means a channel designated for use by school districts and not-for-profit •educational institutions chartered or licensed by the New York State Department of Education or Board of Regents. (3) The term "government access channel" means a channel designated for use by municipal, county and•state government, or agencies thereof. (4) The term "public, educational, or governmental (PEG) access facilities" means (1) channel capacity designated for public, educational or governmental use; and (ii) facilities and equipment for the use of such channel capacity. (5) The term "local use" means noncommercial use by residents of the State of New York including school districts and not-for-profit educational institutions and municipal, county and state governments, or agencies thereof. (6) The term "access cablecast day" means a day or part thereof during which public, educational cr gcvernmental access facilities are available for PEG use. (b) De i nation of Channels -- Every cable television franchisee shall designate channel capacity for PEG access as follows: (1) The franchisee of a cable television system with a channel capacity of twenty-one (21) or more channels shall designate (i) at least one full-time activated channel for public access use; (ii) atleast one full-time activated channel for educational and governmental use; and (iii) one additional full-time activated channel for educational/governmental use whenever the first channel so designated shall have been used for such educational and governmental programming on the average of at least twelve (12) hours per day during any ninety (90)" day period; provided, however, that the calculation of such average shall not include any day when the unavailability of PEG access facilities precludes achieving such programming level. In the event that two channels for educational and governmental use are required by this subdivision, one channel shall be designated the education.al access channel and one channel shall be designated the governmental access channel; provided, however, that either channel may be used for either purpose if necessary to satisfy the demand for channel time. - 2 - (2) The franchisee of a cable television system.with a channel capacity less than twenty-one (21) channels shall designate at least one full-time activated charnel Ior public, educational and governmental use. (c) kdmintstrQtion and Uce -- The use of the channel capacity for PEG access shall be administered as follows: (1) The public access channel shall be operated and administered by the entity designated by the municipality or, until such designation is made, by the cable television franchisee; provided, ho.vever, that the, municipality may designate such entity at any *time throughout the term of a franchise by a resolution duly adopted by the legislative body thereof.* (2) The educational and governmental access channel shall be • operated and administered by a committee or a commission appointed by local government and shall include appropriate representation of local school districts within the service area of the cable television system and . may include for purposes of coordination an employee or representative of the cable television franchisee.** (3) The entity responsible for administering and operating the public access channel.shall provide notice to the general public of the opportunity to use such channel which notice shall include (i) a character generated message transmitted at least hourly on such channel between the hours of 6:00 P.M. and 10:00 p.m. each day and .(ii) written notice to subscribers. at least annually. Notices shall include the name, address and telephone number of the entity to be contacted for use of the channel. All access programming shall be identified as such. • (4) Channel time shall be scheduled on the public access channel by the entity responsible for the administration thereof on a first-come, first-served, nondiscriminatory basis. (5) .Local use of educational and governmental access channels shall have preferred status in the event of competing requests for channel time. Priority may be afforded to local governments within the service area of the system. (6) Channel time for PEG access programming shall be without charge to the user. "If a single public access channel is shared by more than one municipality, a single entity shall be jointly designated by the local legislative bodies of .each franchising municipality in the system. If agreement cannot be reached on a single entity, the commission shall arbitrate the issue. **Where an educational or a governmental channel is shared by more than one school district or local government or combination thereof, administration of such channel(s) on a cooperative basis is encouraged. 3 (7) The designation of PEG access facilities shall include the provision by the cable television franchisee of the technical ability to play back pre-recorded programming and to transmit programming information consistent with the designated uses of PEG access channels. (3) The cable television franchisee Shall not exercise any editorial control over any public, educational or governmental use of channel capacity designated for PEG purposes. (9) A municipality. shall not exercise any editorial control over any use by the public of a public access channel. (10) The entity responsible for the administration of a public .access channel shall maintain a record of the use of such channel which shall include the names and addresses of all persons using or requesting the use of any such channel and which record shall be available for public inspection for a minimum of two years. (11) Channels designated for PEG use shall be included in the lowest level of service offered by the cable television franchisee;• where a system does not include sufficient unused channel capacity to accommodate a second educational/governmental access channel resulting from the operation of subdivision (b) hereof, the cable television franchisee may elect one time to defer the.obligation to provide subh additional channel until additional channel capacity becomes available. . (12) A cable television franchisee shall be permitted to use time on one or. more PEG access channels whenever there are no blank channels available on the same level of service which includes the PEG channel(s) and whenever such PEG channel(s) is not scheduled for use at least seventy-two (72) hours in advance of such time or times desired by the . cable television franchisee; • provided that any use of such PEG channels) . by the franchisee shall at all times be subordinate to designated PEG use and shall terminate or be pre-empted by PEG programming scheduled at least seventy-two (72) hours in advance. All non -access programming on PEG channels shall be identified as such by an appropriate announcement made prior to and following each non -access use. Notwithstanding the foregoing, at such time as any PEG channel on a cable television system' with a channel capacity in excess of forty (40) channels has been programmed•for a daily average of eight (8) hours or fifty percent (50%) of the hours of access cablecast days, whichever is less, during any ninety (90) day period, use of such channel by the cable television franchisee shall be suspended for such time as such minimum PEG use of such channel is maintained. (d) Applicability (1) Subdivisions (a), (c) and (f) of this section shall apply to the use of channel capacity designated for PEG access as of the effective date her eof. _ 1 _ (2) The minimum channel designation requirements in subdivision (b) of this section shall be required by, and shall be a condition to, the exercise of every franchise and certificate of confirmation granted or renewed after the effective date hereof. (3) Notwithstanding the foregoing, nothing contained herein shall impair the enforcement of any provision of any franchise in effect on the effective date of this sec_ion concerning the designation and use of . channel capacity, facilities and equipment for PEG access Cr otherwise dLminish the obligations of a cable television franchisee with respect to PEG access. (e) General -- Any cable television franchise granted, -renewed or amended after the effective date oI this section may include additional provisions concerning the designation and use of public, educational and governmental access facilities as follo.vs: (1) a provision specifying- facilities and equipment to be made available by the franchisee for use in connection with the designated PEG channels; and (2) any other provision concerning the designation and use of channel opacity for public, educational and governmental access . consistent -with federal and state law. (f) Waivers and Ruling's. (1) A cable. television franchisee, a municipality or an entity designated to administer a public access channel•may seek a waiver of one or more provisions of this section upon application to the commission ..• pursuant to sections 590.3 and 590.22 of this subtitle. (2) any interested person may seek a ruling from the commission concerning the applicability or implementation of any provision of this section or any provision of a franchise concerning PEG access upon the filing of a petition in accordance with section 590.18 of this subtitle. (3) Notwithstanding paragraphs (1) and (2) •of this subdivision (f), • the commission shall not grant any waiver or ruling, or enter any order (i) that constitutes the exercise of editorial control over the content of public access programming or (ii) that would have the effect of requiring the carriage by a franchised cable television company of programming distributed as the New York State and Community Affairs Network (NY -SCAN). (g) Severability -- If any provision of this• section or the application of such provision is held invalid by a court of competent jurisdiction, the ' remainder of this section or the application of the provision to other circumstances shall not be affected thereby. NOTE: Notice of Adoption of these rules was filed with the Secretary of State on August 19, 1988. NEW YORK STATE COMMISSION ON CABLE TELEVISION CORNING TOWER BLDG., EMPIRE STATE PLAZA ALBANY. NEW YORK 12223 (518) 474-4992 (518) 486-5727 FAX WILLIAM B. FINNERAN — Chairman October 12, 1990 Barbara Lukens, General Manager American Community Cablevision 519 West State St. Ithaca, NY. 14850 Dear'Barbara: THEODORE E. MULFORD Conunissiavr BARBARA T. ROCHMAN Commissioner JOHN A. PASSIDOMO Commissioner MICHAEL E. RUSSELL Commissioner EDWARD P. KEARSE Eucwnr Director This is in reply to your letter of August 16, 1990 concerning the use of a public access channel by or for political candidates. In your letter you quoted from the existing franchise agreement between ACC and the City of Ithaca as follows: "A designated channel shall not be used for the promotion or sale of commercial products or services, including advertising by or on behalf of candidates for public office." (Section 14.3(D)) -In fact, such language was part of Commission rules at one time. However, an entire new set of rules concerning public, educational and governmental access was adopted by the Commission in Docket No. 90174-A-2 in August, 1988. In the Commission Order Approving Renewal of the ACC -City of Ithaca franchise agreement in Docket No. 30194 (adopted February 1, 1989), the Commission referred to Section 14.3(D) of the franchise and stated that: "Commission rules do not preclude the use of access channels by candidates for public office." This statement was consistent with the lack of any provision in the new rules which precludes use of access channels by candidates and also was consistent with statements made by the Commission in its Summary of Comments and Opinion issued in Docket No. 90174-A-2 in conjunction with the new minimum PEG access standards. In the Summary of Comments and Opinion, the Commission noted that under FCC regulations applicable to public access channels in the 1970's use by candidates for public office was restricted and stated that "[i]t is not clear to us at this time that such a restriction is appropriate." The Commission went on to state that: "One of the fundamental objectives of cable television access is to contribute to the diversity of information and information sources available to the public and to stimulate public debate by providing a forum therefor. The ability of candidates to speak to the electorate and of the electorate to hear and examine the views of -2 - candidates is central to and consistent with such objective." (p. 23) In short, the new rules supersede Section 14.3(D) of the City of Ithaca franchise agreement. In addition, it is doubtful that a .lawful basis exists for denying use of public access channel capacity to political candidates. Section 611(e) of the Cable Communications Policy Act of 1984 provides that "a cable operator shall not exercise any editorial control over any public use of channel capacity...pursuant to this section." Section 829 of the New York State Executive Law provides that the Commission "may not prohibit or limit any program or any class or type of program or otherwise censor the communications of signals transmitted by any cable TV company or over any cable TV system...." Section 829(2) provides that "[n]c4 municipality may prohibit or limit any program or class or type of program..." as well. Under both federal and state law, a cable television company is immune from liability arising from programming carried on a public access channel. It is my understanding from reading Section XIV of the franchise that,. at least for now, ACC has accepted responsibility for administering the public access channels under the guidance of the Public Access Advisory Board. I am aware that both Section 315 of the Communications Act and Section 76.205 of FCC rules impose requirements on cable operators concerning origination cablecasts by candidates for public office and I can appreciate any concern that you may have that your role as administrator of public access channels not be confused with your rights and responsibilities in respect .to local origination. (Of course, ACC may make time available, either free or for a charge, to candidates on a local origination basis as distinct from public access use.) Although I am not aware of any ruling that subjects PEG access channels to the federal equal opportunities' provisions, you may choose to be especially careful to distinguish public access from local origination whenever programming involves use by, or for, a political candidate. Finally, I note that I was asked by the Chair of the Ithaca public access advisory board some time ago to clarify the effect of the Commission's Order Approving Renewal. A copy of my letter which summarizes responses given verbally is enclosed. 1 would also add here that use by, for or about legally qualified candidates would be subject to the same reasonable procedures concerning scheduling, studio availability, reruns, etc. that apply to other uses of public access. Very truly;yours, John L. Grow Counsel JLG:tac enclosure cc: Bill Demo, Chair - Ithaca Cable Commission Thomas Terrizzi, Public Access Advisory Board John Fogarty, Esq., ATC, Stamford, CT October 9, 1990 Mayor Benjamin Nichols City Hall 108 E. Green St. Ithaca, NY 14850 James A. Ferwerda 312 First St. Ithaca, NY 14850 Dear Mr. Mayor, I am pleased to have the opportunity to apply for appointment as a member of the Ithaca Cable Commission. As you will see from my attached resume, I have been in communications issues for a number of years. One of my current responsibilities as Senior Technical Advisor at the Program of Computer Graphics at Cornell is to develop state-of-the-art networks for video, graphics, and data communications. I have recently been overseeing the network design for my laboratory's facilities at the new TheoryCenter building at Cornell. I have also been involved in the content -side of cable communications, having been co-producer for the last four years of More than the News, a weekly alternative news program aired on the community access channel. I believe that over the next several years, there will be a growing demand for a variety of information services at the home in addition to standard television programming.. Library resource access and bi-directional communication are two examples. While these services will probably be provided by a commerical entity like ACC, they must be available to serve the broad public interest. It will take planning and advocacy on the part of city government to ensure that provisions for these and other services are included in future cable system development; that they are made available to the whole community at fair rates; and that free and equal access is maintained and developed. I would like to pursue these goals if appointed to the.cable commission. I hope that you will consider my application. Sincerely, James A. Ferwerda Rachel Graham From: Alanna Congdon Sent: Monday, March 05, 2018 8:15 AM To: Rachel Graham Subject: FW: I-9 Handbook for Employers For our meeting this morning.. to talk about From: Amy Guererri Sent: Friday, March 2, 2018 9:53 PM To: Alanna Congdon <acongdon@tompkins-co.org>; Maureen Reynolds <mreynolds@tompkins-co.org>; Jennifer Turner <jturner@tompkins-co.org>; Stephen Estes <sestes@tompkins-co.org> Subject: RE: I-9 Handbook for Employers Alanna: I hope the following information is helpful. I've answered your questions in red below to the best of my ability. Bottom line is that 1 strongly urge you to stop this practice. I think I may need to better understand why or how this practice began The Form 1-9, as it is the basis for verifying an individual is authorized to work in the United States, is a very strictly regulated process, subject to fines, and even criminal sanctions for improper practices. For example, there are monetary fines of over $200 for each "error" on an 1-9 form, including simply writing the date incorrectly 1/9/18 incorrect- subject to a fine, 01/09/2018 is correct. I have personal experience with these audits, and can attest to the serious nature of the whole 1-9 process. By it's very nature, the process is intended for an EMPLOYER to verify that individuals are authorized to work in the United States. The Regulations clearly state that the EMPLOYER or authorized representative* must physically examine the required documents and ascertain that they are the appropriate documents, valid, etc. for the purpose of confirming that the individual is in fact eligible. The form itself requires the EMPLOYER signature... Also, a prospective employee may complete the 1-9 prior to the first day on payroll, but NOT any earlier than the acceptance of a job offer, and the offer letter, etc. would need to be available for the record, etc. I don't know how your office would be able to comply with this because you aren't performing this action as a "contractor" for these employers you're not keeping records, etc.. The regulations indicate that an employer may designate an "authorized representative" to fill out the Form I -9's but that -doesn't sound like what is occurring.... It sound like prospective employees are simply coming in and asking that the forms be signed? There isn't a spot for a Notary signature "For example, it is not acceptable for a notary public to view employment authorization and identity documents, but leave Section 2 for you to complete The person who views an employee's employment authorization documents should also complete and sign Section 2 on your behalf" Your questions: We had a couple more questions : What is an "Authorized Representative"? * 1 don't see how your office/staff could be deemed the Authorized Representative for any of these folks I also have to say that there is too much risk for liability in having any involvement with the forms for organizations. 1 What reason can we use to "refuse" to sign them? Very simply- you can refuse to sign them because the Law indicates that the forms must be completed by the Employer or their Authorized Representative- neither of which you are. And there are many laws and regulations around this process, so there is just too much risk. And where can we suggest they go? This is a matter for their prospective employer to determine. It really isn't a question that can be answered by you or I. I honestly have no idea how this is happening, since it is such a critical function that an employer undertakes. I really can't fathom that any employer would be facilitating the process in this manner. Bottom line: They need to be instructed to contact their prospective employer who must tell them how to get the 1-9 completed and by whom. This can't be a function that your office performs....The fact that their employer is out of the area or State is not your problem.... 1 know that you want to be helpful, but trust me, this is a very, very serious labor law, overseen by the DOL, Dept. of Homeland Security, etc. It's not one that you or the County wants to run afoul of... Most of these individuals are working for someone or a company outside the state so it isn't possible for them to go in person to the employer. 1 hope this information helps... Thank you, Amy Sent from Mail for Windows 10 From: Alanna Congdon Sent: Friday, March 2, 2018 4:51:10 PM To: Amy Guererri Subject: RE: I-9 Handbook for Employers No worries, we have had 2 calls about them since the first email : We really like to keep our customers happy : ) Feel better, stay warm and have a good weekend, Alanna From: Amy Guererri Sent: Friday, March 2, 2018 4:49 PM To: Alanna Congdon <acongdon@tompkins-co.org>; Maureen Reynolds <mrevnolds@tompkins-co.org> Subject: Re: 1-9 Handbook for Employers Alanna- I had to leave work early due to being sick. I do plan to do some research on this over the weekend and I will get you some answers. So sorry for the delay! Thanks, Amy. Get Outlook for iOS From: Alanna Congdon Sent: Friday, March 2, 2018 4:47:21 PM To: Amy Guererri; Maureen Reynolds Subject: RE: 1-9 Handbook for Employers 2 Hi Amy, Any thoughts on these questions yet? Thank you, Alanna From: Alanna Congdon Sent: Wednesday, February 28, 2018 8:50 AM To: Amy Guererri <AGUERERRI@tompkins-co.org>; Maureen Reynolds <mrevnolds@tompkins-co.org> Subject: FW: I-9 Handbook for Employers Hi Amy, Thank you to Jennifer for this information. We had a couple more questions : What is an "Authorized Representative"? What reason can we use to "refuse" to sign them? And where can we suggest they go? Most of these individuals are working for someone or a company outside the state so it isn't possible for them to go in person to the employer. Thank you, Alanna From: Jennifer Turner Sent: Tuesday, February 27, 2018 1:27 PM To: Alanna Congdon <acongdon@tompkins-co.org> Subject: 1-9 Handbook for Employers Hi Alanna, I left you a message regarding Amy's response to your question regarding completing 1-9 documents for contractors. Amy says that under no conditions should staff complete an 1-9 form for outside employees/contractors. Amy suggested that 1 send you the following employer handbook. Page 2 references when not to fill complete an 1-9 form. If you have any questions, please contact Amy. Thank you, Jennifer Turner Personnel Assistant Tompkins County Department of Human Resources 125 E. Court St. Ithaca, NY 14850 274-5525 3 JAMES A. FERWERDA Home Address: 312 First St. Ithaca, NY 14850 (607) 273-5255 Current Work Address: Program of Computer Graphics 580 Theorycenter Building, Hoy Rd. Cornell University, Ithaca NY 14853 (607) 255-7365 Education: Master of Science (Computer Science/Graphics) Thesis: "A Psychophysical Approach to the Aliasing Problem in Realistic Image Synthesis." Minor: Experimental Psychology Cornell University, Ithaca, New York, January 1987 Bachelor of Arts (Experimental Psychology) Cornell University, Ithaca, New York, May 1980 Employment: SR. PROJECT LEADER/ LECTURER, Program of Computer Graphics, Cornell University, Ithaca, NY. Lead a program of research on perceptual issues in computer graphics. Developed a light measurement laboratory to allow radiometric and spectral comparison of light propagation models used in image synthesis to data collected from real environments. Developed a workstation -based component -video animation facility. Taught an upper -division course in computer graphics in the Department of Computer Science. January 1987- present. SYSTEMS ANALYST, Department of Computer Science, Cornell University, Ithaca, NY. Managed Department of Computer Science research facility. Developed and maintained systems software. Integrated new and existing hardware. Developed campus Internet gateway system. Consulted with users on software development. Directed staff programmers. Oversaw administrative operations. January- September 1984. INDEPENDENT CONSULTANT, Visionary Systems, Ithaca, NY. Designed laser -based exhibition graphics systems. Integrated hardware components. Wrote animation control and display software. June 1983- September 1984. COMPUTER SYSTEMS SPECIALIST, Department of Psychology, Cornell University, Ithaca, NY. Managed Psychology Department computer systems. Developed systems and applications software for real- time experimental control and data acquisition. Integrated and maintained hardware. Designed and taught a course on the laboratory use of microcomputers. Oversaw administrative operations. October 1980- January 1983. RESEARCH ASSISTANT, E.J. Gibson Perceptual Development Laboratory, Cornell University, Ithaca, NY. Did applications programming and apparatus design. Designed and constructed electronic, optical, film, and video systems used in experiments to determine infants perceptual capabilities. P Developed programs to allow analysis of experimental 1978- P gT y e pe mental data, and graphic display of results. June June 1980. RESEARCH ASSISTANT, Department of Psychology, Cornell University, Ithaca, New York. Did applications programming and apparatus design for experiments concerning human visual orientation. Developed devices for presenting stereoscopic graphics, and for monitoring observer position in three dimensions. October 19'77- June 1979. JAMES A. FERWERDA Publications: Ferwerda, J.A. and Greenberg, D.P., "A Psychophysical Approach to Assessing the Quality of Antialiased Images", IEEE Computer Graphics and Applications, 8(5), September 1988, pp. 85-95. Wanger, L. R. and Ferwerda, J.A., "Dynamic Visual Cues for Spatial Relations in Computer Generated Images," In preparation. Himlan, T.H. and Ferwerda J.A., "Experimental Verification of the Radiosity Model for Simulated Diffuse Environments," In preparation. Film and Video Credits: Co-Producer/Technical Director: "More than the News.", Weekly television news magazine, TV 13, Ithaca NY, May 1986- present. Co-Producer/Editor: "The Fourth World", Performance documentary, TV 13, Ithaca, NY, January 1987. Technical Consultant: "Physics 101 ", Computer animation, Shown at Siggraph '89, Boston, August 1989. Technical Director: "Visualization of the Thirteen-Diety Vajra Bhairava Mandala ", Computer animation, July 1990. Technical Consultant: "Hoppy Rides Again", Computer animation, Shown at Siggraph '90, Dallas, August 1990. Grants and Awards: National Science Foundation, Washington, D.C.: Computer and Information Science and Engineering Instrumentation Grant, "Computer Graphics Dynamic Simulation for Scientific Visualization", September 1987. American Television and Communications Corp., New York, NY: ACE award for excellence in cable programming, "More than the News", 1987,'88,'89,'90. Resist! Foundation,Boston MA: Production Grant, "More than the News", January 1988. Alternatives Fund, Ithaca, NY: Production Grant, "More than the News", June 1988. Other Skills: Technical editing and writing; facilities planning; Spanish 'and German languages. References: Available upon request. NEW YORK STATE COMMISSION ON CABLE TELEVISION CONSUMER CABLE RIGHTS EXPANDED PROGRAMMING CHANGES -- Compliance Date April 4, 1990 • A cable television subscriber is entitled to notice of all programming and other services offered on the cable. television system and the rates and charges therefor. This notice must be given to every subscriber: .(a) at the time one subscribes to a cable system; (b) at the time of a request for any change in service; (c) at the time of a request for any such information; and (d) semi :annually. Written notification to affected subscribers is required at least thirty (30) days prior to the programming change orwithin thirty. (30) days of the date the cable company first becomes aware of any significant programming or network programming changes. Such notice shall inform subscribers of their ability to downgrade or terminate service within forty-five (45) days of receipt of the notice without charge for such termination or downgrade. • • Additional notice shall be provided in writing or by screen visual messages displayed on the affected television program channel or channels and on the programming listing channel of the cable company (if any) at least once each hour for no less than thirty (30) days. If a network or channel is moved from one service tier to another or is removed from the cable system altogether and a subscriber first subscribed to the system during the nine months preceding the date of the change, a subscriber may be entitled to a refund of installation, upgrade or other one- time charges paid to the cable company if the subscriber chooses to terminate or downgrade their subscription after the change. • If a network is moved from the basic tier service to a more expensive tier, the subscriber may also have the opportunity to upgrade to the more expensive tier at no charge and to receive the more expensive tier also at no charge, for a period of six months. If a network is removed from basic cable service and is not available anywhere'on the system, a subscriber may be entitled to a credit for a portion of their monthly service payment for a fixed period of time after the network is removed from the cable system. 2 - SERVICE =- Compliance Date May 12, 1990 • Credit for outages of four (4) or more hours if service out either on any one pay service or all basic service. Credit automatic to subscriber when company aware of outage. Subscriber can still request credit up to ninety (90) days after outage. Minimum amount of credit is for twenty-four (24) hours. • Company shall make a reasonable effort to inform subscribers in writing or electronically prior to any scheduled service outages for equipment repair or replacement, system upgrade or rebuild, or any on-going technical "sweeps" of the system. Prior written notice must be given to the Commission and affected municipality of such outages. • Subscriber can request morning, afternoon, evening, or Saturday hours for service call. If company is a "no show" for time period, the subscriber will not be charged for the service call or installation. EQUIPMENT -- Compliance Date May 12, 1990 • All equipment charges for lost, stolen or damaged equipment will be handled as a billing complaint by the Commission. • Company must have notified subscriber in writing of potential liability for such charges and, at time of collection, must inform the subscriber of his/her right to seek Commission staff review of the circumstances and charges leading to such liability. 1'1'EMIZED BILLING PRACTICES -- Compliance Date July 12, 1990 Itemized bill: company name, address, due date, levels of service, amount due, past due, billing period, credits, charges for guides, equipment. Commission's Toll Free Assistance Number (1-800-342-3330) on all bills. Due date for bill -- not less than fifteen (15) days from mailing. No disconnect or late charges until forty-five (45) days from mailing date (used to be 30 days). Separate disconnect notice from bill (method of service,"5, or 8 days prior to disconnection in Rules now). No downgrade charge -- if subscriber six months or longer or totally disconnecting service. Downgrade charge limited to cost for subscribers of six months or less. Cable operator to maintain all promotional and information materials to the public for two (2) years and make available upon request to public. NEW YORK. STATE COMMISSION ON CABLE TELEVISION In the Matter of Amendment of Consumer Service Rules and _ Regulations 90-141 DOCKET NO. 90379 MEMORANDUM ADOPTING RULES (Released: May 24, 1990) On February 28, 1989, a Notice of Proposed Rulemaking was issued in this docket wherein the Commission proposed to amend existing provisions of its -rules and to adopt new provisions related to cable television company billing and customer service requirements and invited comments thereon. Comments and reply comments were submitted by a variety of interested parties including cable television companies, and municipal governments. On November 1, 1989, the Commission adopted rules as attached hereto as Appendix A and authorized the filing of a Notice of Adoption with the Secretary of State pursuant to Section 202(5) of the State Administrative Procedure Act ("SADA"). The Notice of Adoption was filed on December 22, 1989 and published in the State Register on January 10, 1990.' Included with the Notice of Adoption was an Assessment of Comments in fulfillment of Section 202(5)(b) of SAPA. A copy of the Assessment is attached hereto as Appendix B. The discussion of the rules herein is intended to supplement the discussion in the Assessment of Comments. Since the adoption of the rules in this docket, a new Section 824-a entitled "Consumer Protection" has been enacted into law.' The new law was effective immediately. ' The rules became effective January 12, 1990. Pursuant to Section 590.60, cable television companies were required to comply with the rules within 120 days of the effectivee date or May 12, 1990. The date for compliance with Sections 590.63(a), (b) and (d) ' 590.67(a) and (b) has been extended to July 12, 1990. The same date applies to Section 590.63(f) as amended in Docket No. 90403 (infra,) except Section 590.63(f)(4). 2 Chapter 9, Laws of 1990, "An act to amend the executive law in relation to notification and refunds for changes in programming by a cable television company" effective February 13, 1990. This law also amends Section 812 of the Executive Law. 2 By separate emergency action in Docket No. 90403, the Commission adopted temporary rules implementing Section 824-a which rules also include amendments to certain provisions of the rules adopted in this docket. (Order Adopting Rule and Notice of Proposed. Rulemaking, Docket No. 90403, 90-081; Released: April 4, 1990.) These changes are attached hereto as Appendix C. Specifically, the emergency rules affect Sections 590.61(h), 590.62(b)(3), 590.62(c), 590.63(f) and 590.69. The impact of new Section 824-a on these sections are also discussed herein. The rules adopted in this docket relate to such matters as billing practices, billing disputes, advance billing, late payments, collection charges, credit for service outages, discontinuation of service for non-payment, notice of programming changes and charges for lost, damaged or stolen equipment. For purposes of our review herein, we shall divide the new rules into two groups. The first group includes the rules which are not affected by Section 824-a of the Executive Law. The second group includes the rules which are affected by Section 824-a and .the emergency rules implementing said section. I. Rules not affected by Section 824-a Section 590.63 - Bill format, late charges, collection charges and downgrade charges. Section 590.63(a) has been amended to require that a subscriber bill "(ii). . .shall itemize each category of service and piece of equipment for which a charge is imposed; [and] (iii) state the billing period, amount of current billing and appropriate credits or past due balances, if any." Section 590.63(b) requires that each "bill shall specify a minimum time for payment which shall not be less than fifteen (15) days from mailing of the bill." In the Assessment of Comments filed with the Notice of Adoption, we noted that the rule requires the "itemization of each category of service rather than each service." We stated further .that the rule does not require that each bill contain a "list [of) each and every channel or cable network received by a particular subscriber." We take this opportunity to summarize the elements of an itemized bill as follows: installation charges, if any; the number of outlets in the home; a description of the service provided, e.g., basic service or a higher tier; equipment, but only if a separate charge is imposed therefor; a past due amount and/or late charge, if any; credits, if any, and the due date. These requirements apply to residential subscribers who are billed on a regular basis. Where coupon books are used, a simple itemized statement attached to the booklet or printed on a separate statement included with the booklet will suffice to comply with the rule. _ Section 590.66 - Credit for service outage. This section requires a cable company to provide a credit for every service outage in excess of four (4) continuous hours. The company is obligated by the rule to make a reasonable effort to determine the existence and scope of an outage including the identification.of subscribers affected. In this regard, if a subscriber does not receive a credit but has experienced an outage in excess of four con- tinuous hours, the subscriber may still obtain a credit by notifying the cable company within ninety days of the outage. The service outage must be a complete outage, i.e., no signals are being received at the subscriber's television set. The credit to he given for an outage that exceeds four continuous hours shall be equal to one thirtieth of the monthly charge. Additional outages within the twenty-four hour period do not require additional credits. Some commentors have observed that this rule creates a disincentive for prompt attention 3 to service outages after the fourth continuous hour. Such comments fail to recognize that the rule isnot designed to induce cable companies to repair service outages or to punish companies for poor performance. Section 824 of the Executive Law already requires cable companies to provide safe, adequate and reliable service and contains ample remedial provisions. The rule is designed solely to ensure that a subscriber is not obligated to pay for services which are not received during a substantial portion of the subscriber's viewing day. Subdivision (f) of Section 590.66 requires a cable company to give prior written notice of an outage that is scheduled as part of a system upgrade or rebuild. Such notice is to be provided to the Commission and the franchising municipality. In addition, a company is required to make a reasonable effort to inform subscribers in advance of any service outage which is scheduled for the purpose of repairing equipment or monitoring the system. We emphasize here that this requirement applies to outages which are scheduled sufficiently in advance to permit notice. Section 590.67 - Discontinuance of service for non-payment. The earliest a cable company may commence efforts to disconnect a subscriber for non-payment of a bill has been changed from thirty days after the due date to forty-five days after the date the bill was mailed to the subscriber. Since, under Section 590.63(b), the due date must he at least fifteen days from the date of mailing, this rule maintains the same minimum thirty day period between due date and disconnect date. In fact, this amendment will only impact those cable companies which under prior rules required payment sooner than fifteen days from mailing. Section 590.73 - .Auxiliary equipment.• Cable television companies commonly provide converters or other modifying or descrambling. equipment to subscribers in connection with the delivery of cable television programming to the home. This equipment is valuable and often necessary to permit the delivery to a subscriber of only those services which the subscriber has agreed to purchase. (The receipt of cable television services that are not paid for is a crime under certain circumstances pursuant to Section 165.15 of the Penal Law of the State of New York.) A cable company is entitled to expect reasonable care of the equipment and the return.of the equipment when the subscription is terminated. A cable company may impose a charge for damage to the equipment caused by a subscriber or for failure by the subscriber to return the equipment subject to two conditions. First, the company mustt have given advance notice to the subscriber of the potential liability for damage to, or loss of, the equipment. Second, at the time the company seeks- to collect a charge in a specific case, it must provide the subscriber -in writing with notice of the amount of the charge and the opportunity to refer the matter to Commission staff for review under Section 590.5. Such notice to subscribers should also include the Commission's toll free telephone number and address. Section 596.8 - Trouble call processing. Subdivision (c) has been amended to require cable television companies to provide subscribers with the opportunity to schedule appointments in various day parts, e_...; morning, afternoon, evening or Saturdays. If a company fails to fulfill an appointment scheduled in this manner, it is prohibited by the rule from imposing any charge for the service call when made. Four hour windows are. 4 suggested. The rule is not intended to preclude a cable company and an individual from agreeing .to a more specific. time period for an appointment provided that the subscriber remains entitled to the same remedy if such appointment is not timely met by the company. II. Rules affected by Section 824-a Section 590.61 - Definitions. Section 590.61 was amended by the addition of a new subdivision (h) which defines a "downgrade charge." (Appendix A) (Section 590.63(f) imposes restrictions upon the imposition of downgrade charges by cable television companies, infra.) As part of the law enacting the new Section 824-a the legislature also amended Section 812 of the Executive Law to include a definition of "downgrade." In order to avoid redundant and potentially confusing separate definitions, the definition . of "downgrade charge" in Section 590.61(h) was amended on an emergency basis (Appendix C) to incorporate the statutory definition of "downgrade" in new Section 812(12). Section 590.62 - Notification of billing practices. Section 590.62(b) was amended to clarify the obligation of cable television companies to provide notice of billing practices to subscribers on an annual basis. (Appendix A) The new Section 824-a affects the existing rule. Specifically, Section 824-a(4) requires cable television companies to provide notice of programing and other services offered on the system, the rates and charges therefor and a statement of significant rights accorded to subscribers on at least a semi-annual basis.' Billing practices are sufficiently related to the new statutory notice requirements including, particularly, "significant rights accorded to subscribers", to warrant inclusion as part of a single comprehensive notification and, accordingly, Section 590.62(b)(3) was amended on an emergency basis to require that notice of billing practices be given on the same basis as the new statutory notice requirements. (Appendix C) Section 590.62(c) was amended to require cable television companies. to maintain "promotional and general informational materials (including monthly bill stuffers)" at its local office for public inspection for two years. (Appendix A) Section 824-a(6)(a) now requires cable television companies to maintain copies of "all advertisements, lists or other notifications regarding programming or made available to the public" and to make such information available to the Commission on request. Because the rule and the statute share a common objective, the statutory language has been embodied in Section 590.62(c) as amended on an emergency basis. A definition of the term "advertisements, lists or other notification" is also included in said rule. (Appendix C) Since the obligation to retain such information now derives from a specific statutory provision, compliance is measured from the effective date of the statute. Section 590.63 - Bill format. Subdivision (f) .of Section 590.63 addresses the issue of downgrade charges. Specifically, it limits the amount of any downgrade charge to Section 824-a(4)(a) permits a cable company to apply to the Commission for an extension of the semi-annual mailinyg requirement and also permits a cable company which bills annually by coupon and does not make regular quarterly mailings to provide notice hy mail annually. 5 the cost thereof and requires prior notice to subscribers of the e existencof e su ch where a charge. In addition, the rule would preclude the .imposition of subscriber is terminating all service or wheres has maintained an additionallimitation ne pon\u l of service for six continuous months. Section 824-a nowimposes the imposition of downgrade charges in the event of a "network chanconsoor iidated inn t programming change." The provisions concerning downgrades have been Section 590.63(f) as amended on an emergency basis to preclude the imposition of a downgrade charge consistent with Section 824-a(5) whenever a subscriber requests a downgrade within 45 days of receipt of noticeon 0 6of a 9A(f))etwork change" or "significant programming change."(Appendix C So Section 590.69 - Notice requirements for changes in cable television rates, charges and programming services offered This section was amended in this docket primarily' to include a ten day notice requirement for changes in programming servicesooffered e by cable on e television companies to subscribers. This requirement was superseded 824-a of the Executive Law and, accordingly, all rules applicable to programming or "network changes are based on the new law and embodied in the rules implementing such section on an emergency basis. (Appendix C) The notice requirements applicable to changes in rates have also been transferred to Section 590.69A at paragraph (a). The rule is intended to provide prior notice to affected subscribers of any change in rates and to provide affected subscribers the opportunity to request a free downgrade in the event of a rate increase. It is noted, in conclusion, that a Notice of Proposed Rulemaking is now pending in Docket No. 90403 wherein the Commission proposes to adopt the emergency regulations (Section 590.69A) implementing new Section 824-a on a permanent basis. (See Order No. 90-081) The temporary changes to Sections 590.61(h),. 590.62(h) and (c), 590.63(f) and 590.69 are among the issues upon which parties may comment in that proceeding. Comments may be submitted until June 8, 1990 and reply comments may be submitted until June 25, 1990. Commissioners Participating: William B. Finneran, Chairman; John A. Gussow, Theodore E. Mulford, John A. Passidomo, Barbara T. Rochman, Commissioners. NEW YORK STATE COMMISSION ON CABLE TELEVISION RESOLUTION BY THE COMMISSION Statutory Authority: Article 28 of the Executive Law, Sections 811, 815 and 816 Docket No. 90379: In the Matter of Amendment to Consumer Service Rules and Regulations At a meeting of the Commission on Cable Television held in the City of Albany, New York on November 1, 1989, the Commission by unanimous vote of its members present, RESOLVED: That the provisions of Section 202(1) of the State Administrative Procedure Act and Section 101-a(2) of the Executive Law having been complied with, Title 9, Subtitle R, Part 590, Section 590.61- 590.69 and Part 596, Section 596.8 of the Official.Compilation of Codes, Rules and Regulations of the State of New York are hereby amended, effective twenty-one (21) days after the date a Notice of Adoption is filed with the Secretary of State. The Executive Director shall file with the Secretary of State a certificate of rulemaking pursuant to Section 102(2) of the Executive Law and a Notice of Adoption pursuant to Section 202(5) of the State Administrative Procedure Act. APPENDIX A BILLING -.PRACTICES OF CABLE TELEVISION COMPANIES 590.61 Definitions.. (a) Basic subscriber channel shall mean any channel which is provided [for in] as part of the basic monthly service rate. (b) A billing dispute shall mean a disagreement between'a subscriber and cable television company concerning: (1) credits for payments made by the subscriber to the cable television company; credit or refund for service outage; errors . in billing amount; or assessment of late charges. (c) Collection charge shall mean a fee or charge imposed upon a subscriber by a cable television company for its efforts at collecting or attempting to collect a past due account by personal visit at a subscriber's home or place of business. [an account due.] (d) •Commission shall mean the New York State Commission on Cable Television. (e) Late charge shall mean a charge which is added to a cable television subscriber's account or bill for nonpayment of a previously due account. (f) Local office shall mean the business office of the cable television company serving the municipality in which a billing dispute arises.. (g) Service outage -shall mean a loss of picture or. sound on all basic subscriber channels or on one or more auxiliary programming channels [and] which is not caused by the subscriber's television receiver [n]or the subscriber. (h) Downgrade charge shall mean a charge imposed upon a subscriber for implementing a reauest for a reduction of services in the amount or level of cable television services. 590.62 Notification of billing practices television company shall notify each of writing,] in a separate written notice, of (a) Every cable its subscribers, [in its billing practices 2 and payment requirements [.] including the use of payment coupons. The notice shall describe or define, [as] at a minimum, billing procedures (including payment requirements to avoid discontinuance of service, e.g., payment due dates) , late charges, downgrade charges, advance billing options, if any, procedures to be followed in billing disputes and credit to be given for service outages. (b) Notice shall be given as follows: (1) to new subscribers, at the time of initial installation; (2) to all subscribers, whenever there is a change in the company's billing practices or payment requirements; • (3) to all [existing] subscribers [,within one year of effective date of these rules.] at. least annually, [Thereafter, notice shall be given whenever the company changes its billing practices.] (c) [Copies of the company's billing practices and billing requirements shall be filed with the commission and shall be filed in the company's local office and shall be available upon request by a subscriber.] Every cable television company (i) shall. file copies of its billing practices and payment requirements with the commission and (ii) shall maintain on file in its local office for public inspection for a period of two years copies of its billing practices and payment requirements and promotional and general informational materials (including monthly bill stuffers). 590.63 Bill format, [L] late charges [and]; collection charges [.] and downgrade charges. (a) Each subscriber bill shall (i) include the name, address and telephone number of the company and the toll- free subscriber assistance telephone number of the commission; (ii) shall itemize each category of service and piece of equipment for which a charge is imposed; (iii) state the billing period, amount of current billing and appropriate credits or past due balances, if any. (b) Each subscriber bill shall specify a minimum time for payment which shall not be less than fifteen (15) days from mailing of the bill, [a] (c) Any late charge permitted by law or by the franchise, if imposed upon the subscriber, shall be itemized on the subscriber's bill, or notice of*delinquent payment in cases where coupon books are used. 3 (d] If a late charge is to be imposed it sha 1 not be imposed sooner than forty-five (45) days after the mailing of the bill to the subscriber or the due date, if coupons are used. [b] (e) No cable television company shall impose a collection charge upon any subscriber, except as prescribed in subdivision 590.67(e) of this Part. (f) A cable television company may impose a charge for downgrading a subscriber's services provided (iZ, that such charge does not -exceed the cost thereof to the company and_LW_ that subscribers have been notified in writing (print no smaller than ten point) of such charges. In no event may a downgrade charge be imposed upon a subscriber who is terminating service completely or who has maintained the same level of cable television services for six (6) continuous months immediately prior to a request for reduction in services. This section shall not apply_ to pay-per-view programming. 590.66 Credit for service outage. (a) Every cable television company shall give credit, for every service outage in excess of. [24] four (4) continuous hours [to any subscriber who applies for it either by written or oral notice.). The [24] four (4) - hour period shall commence at the time the cable television company first becomes aware of the outage. (b) Whenever a cable television company may reasonably determine the existence and scope of a service outage, as, for example, a service outage caused by a major failure in the system's headend or distribution electronic equipment, which service outage exceeds four (4) continuous hours the cable television company shall issue a credit to each affected subscriber, (c) In the event a cable television company cannot determine all subscribers affected by a service outage in excess of four (4) continuous hours, credit shall be given to any eliaib subscriber who makesapplication therefor by either written or oral notice within 90 days of the outage. [b] (d)_ [The credit shall be prorated by multiplying the applicable monthly service rate by a fraction whose numerator equals the number of days (or portion thereof) of the outage and whose denominator equals the number of days in month of the outage. In no case shall the refund be less than 24 hours credit.] The minimum credit shall be equal to one thirtieth times the applicable monthly charge for each twenty-four hour period Burin• which a service outa•e continues for at least four hours. [c] (e) A cable television [The] company shall be responsible for every service outage and shall provide credit to 4 each affected subscriber who [applies for it within 90 days of an. outage.] is entitled thereto pursuant to subdivisions (b) and (c) of this section. (f) Prior written notice of a scheduled service outage due to system upgrade or rebuild shall be filed with the commission and the affected municipality. Every cable television company shall make a reasonable effort to inform subscribers in writing or electronically, in advance, of any scheduled service outages for equipment repair or replacement, system upgrade or rebuild, or on-going technical "sweeps" of the system, 590.67 Discontinuance of service for nonpayment. (a) A cable television subscriber shall not be considered delinquent in payment until at least [30] forty-five (45) days have elapsed from the [due date of the bill or account] mailing of the bill to the subscriber or due date, if coupons are used, and payment has not been received by the company. (b) No cable television company shall phvsicalJY or electronically discontinue service for nonpayment of bills rendered for service until: (1) the subscriber is delinquent in payment for cable television service; and (2) at least five days have elapsed after a separate written notice of impending discontinuance has been served personally upon a subscriber; or (3) at least eight days have elapsed after mailing to the subscriber a separate written notice of impending. discontinuance (for which postage is paid bythe cable television company), addressed to such person at the premises where [service is rendered; or] the subscriber requests billing; or (4) at least five days have elapsed after a subscriber has either signed for or refused a certified letter (postage to be paid by the cable television company), containing a separate written notice of impending discontinuance addressed to such person at the premises where [service is rendered.] the subscriber requests billing, (c) Notice of service discontinuance shall clearly state the amount in arrears, the total amount required to be paid to avoid discontinuance of service, reconnection charges if applicable, and the date by which, and the place where, such payment must be made. 5 (d) No cable television company shall disconnect service .for nonpayment on a Sunday, public holiday or a day when the local office of the company is not open for business withoutt providing an opportunity for the subscriber to pay [a] the in arrears. (e) When a company is at a subscriber's residence or place of business to disconnect service and the subscriber, at that time, pays the amount in arrears in lieu of disconnection, the company may add a reasonable collection charge to the subscriber's bill provided all other applicable provisions of this section have been followed. (f) Receipt of a subsequently dishonored negotiable instrument in response to a notice of discontinuance shall not constitute payment, and no cable television company shall be required to issue, an additional notice prior to discontinuance. 590.69 Notice of requirements for [increase] changes in cable television rates, [and] charges and programming services offered. (a) Every cable television company shall provide notice of [an increase] a change in. [a] rates [for any cable television service] or programming services offered. The notice shall be in writing and shall specify the service or services affected, the new rate [,] or charge, including the amount of the [increase] change, and the effective date thereof. (b) Notice shall be provided as follows: (1) to subscribers affected by the [rate increase] changes in rates, charges or programming services offered at least ten (10) days prior to the effective date of such [increase] change; and (2) to the franchising municipality and the commission .[no later than thirty (30) days after the] at least ten (10) days prior to the effective date of the change in rates, charges or programming services offered. (c) Every cable television company which has increased rates pursuant to Section 623 of the Cable Communications Policy Act of 1984 prior to the effective date hereof shall serve written notice of any such increase upon the franchising municipality and the commission within 30 days of the effective date of this section. (d)In any case where a subscriber requests cancellation or reduction of service within 30 days of the effective date of [a rate] an increase in rates or charges for such 6 service-, the liability of the subscriber for services received after the effective date of [the rate increase] such changes until. the cancellation or reduction of service, shall be determined in accordance with the rates or charges in effect prior to such [increase] change. (e) This section shall not apply to pay for view programming. 590,73 Auxiliary equipment, (a) When a cable television company supplies auxiliary equipment such as a converter or other modifying device to a subscriber the company can expect reasonable care of such equipment by the subscriber. A cable operator shall notify the subscriber and the commission in writing of any char es to subscribers for lost, stolen or damaged converters. In the event such equipment is lost, stolen or damaged, and the cable television company seeks to charge the subscriber for such equipment, the company shall give written, dated notice to the subscriber of the amount sought and the subscriber's opportunity to refer the matter to the commission in accordance with the provisions of Section 590,5 of this subtitle. If referral is not made to the commission within 30 days of the date of the notice, the company may commence its collection procedures. 596.8 Trouble calling processing. (a) A telephone number shall be made available to which subscribers may direct trouble calls. In the event that trouble calls must be made outside the subscriber's local dialing area, the calls must be toll free. (b) Investigative action shall be initiated on the same day a trouble . call is received at the local office, if possible, but in no case later than the following business day. (c) Whenever a service call to the subscriber's premises is required, the company shall advise such subscriber of the opportunity to schedule the service call for the morning or afternoon hours (or evenings or Saturdays, if available) and shall schedule such service call in accordance with the subscriber's request. If, for any reason, the service call is not made within the scheduled time frame, the subscriber shall not be charged for such service call including anv installation or reconnection made as a result thereof. [ (c) ] (d)_ A report on each trouble . call in which a cable system fault reported by a single subscriber was identified shall be filed at the local office, and shall include the following data: (1) subscriber identification; (2) date and approximate time complaint 7 was received; (3) .date and approximate time of response; (4) nature of complaint; (5) brief. description of the fault; (6) signal level measured on each active class I channel after corrective action, where appropriate; (7,) corrective steps taken (if any required); (8) date case is closed; and (9) identification of technician or [repairman] reTpairperson. [(d)} (e)_ A report on each system fault, or on any failure reported by more than one subscriber and affecting an area, shall be filed at the local office and shall include the following data: (1) brief description of the area affected sufficient to allow the later determination of the number of subscribers affected; (2) date and approximate time of failure; (3) cause of failure; and (4) date and time service is restored. [(e)] (f) A report for each trouble call in which. no trouble was identified, or in which further instruction was required to enable the subscriber properly to adjust the terminal receiving equipment, or in which the fault was in the subscriber's receiving equipment, shall be filed at the local office and shall include: (1) subscriber identification; (2) date and time complaint was received; (3) date and time of response; (4) nature of complaint; 8 (5) corrective steps taken (if any required) ; and (6) identification of technician or [repairman] repairperson. [(f)] (q) Any report required to be maintained pursuant to this section shall be kept by the operator for a period of two years from the event to which it relates. APPENDIX B ASSESSMENT OF:COMMENT The rules address such issues as billing practices and payment requirements (i d bill t stomer service and charges for damaged lost auxiliary equipment. Billing The rules, as proposed, would have required cable companies to file with the Commission copies of all promotional and general information materials which were distributed by the cable company to subscribers. Most cable companies that filed comments oppose this requirement citing, among other things, the voluminous material that would be included within the scope of the rule as well as the cost to the companies for providing, and the presumed costs to the Commission for reviewing and compiling, such material. We are persuaded by the comments that it is not necessary to require the filing of such material with us and we have modified the rule to require only that the materials be filed by a cable company in its local office to be made available therein for inspection for a period of two years subsequent to filing. Section 590.63(a) of the proposed rules included a requirement that each service received by the subscriber be itemized on the bill. Certain cable television companies contend that existing software or billing systems cannot readily accommodate itemized billing. One company suggested that itemization would create more confusion. Still other companies did not contest this proposal and the Cable Television Association of New York (CTANY) observed that • the rule should not be misinterpreted to require the attribution of charges for equipment when, in fact, there is no separate or direct charge for the equipment. In this regard, we note that the fact that certain equipment is required to receive certain services -does not mean that a charge must necessarily be attributable to the equipment. As adopted, the rule requires the itemization of each category of service rather than each service. This change is intended to eliminate any confusion about the scope of the rule. It is not necessary to list each and every channel or cable network received by the subscriber. We have also added to the rule the fundamental components of any bill including the billing period and amount of current billing, past due balances and credits, if any. We note here that Commission records show that approximately one— third of all complaints to cable companies and the Commission are billing disputes, many of which involve a lack of understanding as to the precise services involved. It is' also our experience that since Congress approved rate deregulation, service packages and program offerings have changed with greater frequency.. Section 590.63(b),. as proposed, required that each bill . contain a due date which is not sooner than fifteen days from -2 - receipt of the bill. Various cable companies objected to the standard including the difficulty of measuring the time period because of the uncertainty of the date the bill is received by a subscriber. We have modified this rule such that the fifteen day. period shall be measured from the date a bill is mailed by the company. Of course, cable companies will be expected to maintain complete and accurate records of the date all subscriber bills are mailed. In Section 590.63(d), it was proposed that a late charge not be imposed unless payment was not made for a period of thirty days after mailing of the bill. Various governmental entities including the Town of Greenburgh and the Borough of Manhattan urged a longer period for timely payment particularly in view of the fact that the billing may occur on or before the first of the month for which service is to be provided. We have modi,fied this section to extend from thirty to forty-five days the period for payment without liability for a late charge. Our proposal at Section 590.67(a) to extend from thirty days to forty-five days the minimum time for discontinuance of service for non-payment remains unchanged. However, we have modified the language to include reference to payment coupons in accordance with the sugg:Ision of the Office of Business Permits and Regulatory Assistance (OBPRA). Section 590.63(f), as proposed, included limitations upon the imposition of downgrade charges. Certain companies and CTANY suggested that downgrade charges may be within the rates deregulated in the. Cable Communications Policy Act of 1984. Other parties suggested that it was unfair to limit downgrade charges to less than cost inasmuch as it would require the subsidization of such charges by all subscribers. We .. have modified.. Section 590.63(f) to remove an absolute dollar limitation on the amount of the charge in favor of the company's cost for implementing a downgrade. At the same time, we have expanded the class of subscribers against whom a downgrade charge may not be imposed to include any subscriber requesting a termination of all. cable television service. We have also changed the rule to require specific, advance notification of downgrade charges as a condition to the imposition of same where permitted under the rule. Finally, we. have modified the rule to include at Section 590.61(h) a definition of downgrade charge. Customer Service At Section 590.63(f), we proposed a rule which would have required cable television companies to "conduct routine maintenance" at times which would cause the least amount of disruption to subscribers. Staten Island Cable, among others, commented that the rule concerning routine maintenance would deny the flexibility needed by a cable operator. To provide some -3 - measure of flexibility, the rule was revised to require a Pasonae effort on the part of cable companies to notify subscribers in writing or electronically of scheduled outages. This revision also is responsive to comments by OBPRA which suggested that "notice. . .due to routine maintenance" be changed to "notice due to. . .scheduled maintenance." We have maintained the language in the proposed rule which would require cable companies to notify the Commission and affected municipalities in writing of any scheduled service outages due to system upgrades or rebuilds. We believe that these types of outages can be determined sufficiently in advance to provide notice and that such notice will assist local officials and Commission staff in responding to subscriber inquiries. Section 596.8(c) of the proposed rule addressed matters pertaining to customer service calls. Our concern here is based upon the frustration experienced by subscribers when a cable company fails to fulfill a scheduled appointment. Specifically, we proposed that cable companies specify the part of the day, i.e._, morning, afternoon or evening hours, the service call would be made. We further proposed that a cable company make a reasonable effort to inform the subscriber in the event such an appointment could not be kept timely. The Town of Greenburgh commented on this issue in which it asserted that stronger, more specific language than "reasonable effort. . ." be required. when an appointment cannot be kept. Upon further review, we are persauded that a greater incentive for the timely fulfillment of service calls is warranted. Accordingly, we have modified the proposed rule to preclude the imposition of a charge for any service call which is not made within the appointed time frame. . •n - At Section 590.73(b), we proposed a rule which would have limited the liability of a subscriber for lost, stolen or damaged auxiliary equipment, such as channel converters, to the net book value of the equipment. This proposal generated many comments from cable television companies. The comments of TKR Cable, which are generally representative of other. comments, expressed a special concern that equipment such as a channel converter, if not returned, can be used for the unlawful receipt or theft ofthable e television at other locations. The company suggests ability to impose significant charges is necessary to provide an incentive for subscribers to take care of, and return, the equipment. CTANY suggests that the "proper and valid valuation of descrambling security equipment is not measured by hardware considerations. .[and that] the loss. . .can only be measured by its theft potential." Accordingly, CTANY asserts that:the rule as proposed is "grossly unfair and would encourage misuse and theft" and that the Commission should defer adoption of a rule pending further ingorrdesc amblersmatter. be employed unlawfully to recei c ve converters , -4 - cable television service. On the other hand, it is also true that the inability of a subscriber to return equipment may be attributable to causes.beyond the control of the subscriber such as theft or destruction by fire and that any policy which includes an element of deterrence or "compensation" for more than the cost of the equipment as such, should be fairly and consistently applied. For now, we have determined to modify the proposal by eliminating an absolute maximum amount that can be imposed upon a subscriber who is unable to return auxiliary equipment. .The rule we are adopting requires any company which attempts to collect a charge for a lost converter to notify the subscriber of an opportunity to appeal the company's decision with Commission staff within thirty days of receipt of notice of said charge. The Commission will review the matter in accordance with the procedures for review of billing complaints. If no appeal is filed by the subscriber, a cable company can proceed with its collection procedures. Of course, a cable television subscriber can still be required to exercise reasonable care in the use and possession .of the company's auxiliary equipment. APPENDIX C Rules pursuant to Section 824-a of the Executive Law (Ch. 9, Laws of 1990) 590.69A Notice requirements for rates, charges, programming and subscriber's rights. (a) Rates and charges. Every cable television company shall provide notice of any changes in rates or charges for any cable television service. The notice shall be in writing and shall specify the service or services affected, the new rate or charge, including the amount of the increase and the change a and o the he of etive vedatdaeet hereof. Nf any Notice shall be provided at least ten (10) days prior changes in rates or charges to the subscribers affected thereby, the Commission and the franchising municipality. The notice to subscribers shall inform subscribers of the opportunity to request a downgrade or termination of service within thirty (30) days of the receipt of the notice without any charge therefor and without any.liability for payment of any higher rate or charge. . (b) Significant programming change. (1) Definitions. For purposes of this section (i) a "significant programming change" shall mean the removal or alteration of recurring programming which materially changes the quality or level of programming on a network; provided, hoWethater, such terms nicnations Commission, include deletions of programs mandated by the regulations of the Federal Comm nor shall it include deletions of programs that are distributed by the cable television company in lieu of such programs deleted pursuant to such regulations of the Federal Communications Commission; (ii) a "network" shall mean a group of programs distributed, packaged, promoted or sold to subscribers as the offering of a single (iii) entity, including but not limited to, a channel or station; and (itt "service tier" shall mean a category of cable television services or other services provided by a cable television company and for which a rate or fee is charged by the cable television company, including, but not limited to, basic services, premium networks or services, recurring pay-per-view services and other categories of .cable services for which there are additional charges. (2) Notice required. Every cable television company shall provide notice of a significant programming change to the Commission and to subscribers affected thereby. (3) Notice to commission. Notice shall be provided to the Commission no later than the later occurring of forty-five (45) days prior to the effective date of the change or within five (5) business days of the date upon which the cable television company first knows of such change. msuchrecurring specifyoramm n �he gwas recurring or rrwillning be, affected by the change, whetherg P distributed as part of basic cable service or some other service tier immediately prior to the change and the effective date of the change. (4) Notice to subscribers. Notice shall be 'provided to subscribers who are receiving services affected by such change in writing no later effective date of such change orhwithh of thirty (30) days prior to then thirty (30) days of the date upon which the cable television company first knows of such change and by written on-screen visual message prominently displayed on the affected television program channel dr channels, and on the program listing channel of the cable television system, if one is provided, at least once each hour for no less than a thirty (30) day period. (5) Form and content of notice to subscribers. Notice shall be directed to each affected subscriber as follows: (i) by the mailing of a separate written notice to the subscriber's billing address of record; or (ii) by a written notation printed on the subscriber's regular billing statement; or (iii) by a written notice accompanying the subscriber's regular billing statement. Such notice shall specify the recurring programming affected by the change and the effective date of the change. Such notice shall also inform, subscribers of the opportunity to downgrade or terminate service within forty-five (45) days of the receipt of the notice without charge for such termination or downgrade. (c) Network change. (1) Definitions. For purposes of this subdivision, (i) a "network change" shall mean the removal of a network from a service tier whether or not added to another tier or a substantial alteration of the character of a network by a cable television company or an affiliate it controls except that a "network change" shall not include the removal of a network from a service tier within thirty-one (31) days of the date upon which such network was added to such service tier for promotional purposes; where such promotion was clearly disclosed to subscribers; (ii) the "character of a network" shall be determined by reference to the nature, mix and quantity of programming provided on the network and whether such programming is supported by commercial sponsorship or other means. (The character of a network which contains a uniform programming format, e.g., an all -shopping channel, an all- weather channel, an all -sports channel, etc., shall be considered distinct from the character of a network which includes various categories of programming. The character of a network shall also include consideration of whether a network provides programming twenty-four (24) hours per day .or some lesser period of time); and (iii) "promotes repeatedly and in a significant manner" shall mean a promotion of the availability of a particular network un basic cable service which is designed to encourage the public to subscribe to basic cable service to receive such network and which is conducted by -use of multiple media or by the multiple use of a single medium. (2) Notice required. Every cable television company shall provide notice of a network change to the Commission and to the subscribers affected thereby. (3) Notice to commission. Notice shall be provided to the Commission no later than the later occurring of forty-five (45) days prior to the effective date of the change or within five (5) business days of the date upon which the cable television company first knows of such change. Notice shall specify the network affected by the change, whether such network was, or will be, distributed as part of the basic cable service or some other service tier immediately prior to the change and the effective date of the change. If the network change .relates to the basic service tier, the notice to the Commission shall also state whether said network has been repeatedly promoted by e on its basic service the cable television company asal of the change and,dif the n d work has been uring the six months immediately preceding the date so promoted during such period ofs time, the notice concluded and nlumbso erluof sude bscoribers who c date upon which such promotion commenced their subscription to lasbasic cable t of promotion. ice of thegnehvork chae ninety ngerelates ays immediately before and after theday to a network that is being deleted from statewhetherable service dnetwork not co be silable to be on any other service tier, the no ision ny. For ses this paragraph reasonably available to the cable available Loathe cable teleovisio�f companv'sha 1 the term "continues to be reasonably mean a network, including a broadcast tlo its subscribers bscribers as part of station, that has been basic cable ully distributed by the cable televisioncompany service and without a substantialieon on�h f ch samee character terms � df the conditionslas beaore ins available to the cable televisioncompany or remains available to the television company pursuant conditions terms and as previously agreed. A network hallalso bensided to continue to be reasonably available to a cable television company when, notwithstanding a modification of the terms and conditions under which it may be distributed or a change in the character of the network, the Commission so determines in writing based upon consideration of (i) whether the cable television company leasedaccess, if if any,commercial charact leased r access and the terms and conditions of of the network relative to the character of other networks distributed on the system and the manner of distribution of such other network; (iii) the terms and conditions pursuant to which the network is available to the cable television company relative to the terms and conditions applicable to the distribution by the cable television company of other networks as part of basic cable television service; (iv) the extent to which the network is currently being distributed by other cable television companies in the state as part of basic cable television service on terms and conditions similar to the terms and conditions at issue; and (v) the extent to which the cable television company may have an ownership interest in any network distributed on the system which is similar in character to the terminated network. (4) Notice to subscribers. Every cable television company shall provide notice of a network change .to each .subscriber affected thereby. Such notice shall be provided to subscribers who are receiving services affected by any such change in writing no later than the later occurring of thirty (30) days prior td the effective date of any change or within thirty (30) days of the date upon which the cable television company first knows of such change and by written on-screen visual message prominently displayed on the affected television programming channel or channels, and on the program listing channel of the cable television system, if one is provided, at least once each hour for no less than a thirty (30) day period. (5) Form and content of notice to subscribers. Notice shall be directed to each affected subscriber as follows (irecord; fhe or mailing of y a writtpnrate notationen prnn printed the the subscriber's billing address of ( ) subscribers regular billing statement; i) bice shaliwritten spec fy the network affected subscriber's red lar billing statement. Such no by the change and the effective date of the change and shall inform subscribers of the -4 - opportunity to downgrade or terminate service within forty-five (45) days of the receipt of the notice without any charge for such termination or downgrade. (6) Additional provisions for network change affecting a premium service tier. If the notice describes a network change that affects a network that was being distributed as part of a premium service tier immediately prior to the change such notice shall also inform subscribers who have incurred installation, upgrade or other one-time charges relating to such premium service tier within six months prior to the effective date of the change, or who have prepaid any monthly service charges for said premium service tier, that they may elect to downgrade or terminate service within thirty (30) days of the receipt of such notice and obtain a rebate of any such charges. (7) Additional provisions for network change affecting basic cable service. If the notice describes a network change which affects a network that was being distributed as part of basic cable service immediately prior company and reange, in a significant manthe ner ter as rk was repeatedly promoted by the cable television available as part of basic cable service at any time during the six months immediately preceding the date of the change, such notice, or a second notice given in the same manner as the first notice within thirty (30) days of the first notice, shall contain additional information as follows: (i) Removal of network to premium tier. If a network is moved from basic cable service to a more expensive tier, such notice shall inform subscribers who commenced their subscriptions to basic cable service during the ninety (90) day period immediately before or after the last day of the promotion, of the opportunity, within thirty (30) days of receipt of the notice either (a) to upgrade to the more expensive service tier which includes the network .at no charge and to receive said service tier for up to six months also at no charge; or (b) to terminate service and receive a refund of all installation, upgrade or other one -tine charges paid during the six months prior to the change. (ii) Removal of network from system. If a network (a) is deleted from basic cable service, (b) was a substantial inducement to a significant number of subscribers, and (c) continues to be reasonably available to the cable television company, such notice shall inform • subscribers who commenced their subscriptions to basic cable service during the ninety (90) day period immediately before or after the last dayof the promotion, of the opportunity, within thirty (30) days of receipt of the notice, either (aa) to terminate service and receive a refund of all installation, upgrade or other one-time charges paid during the six months prior inthe notice whchange, or bbh cr) edit shall bentinue eforce a portion olve a f the credit in the amount specified monthly rate for basic cable service for each month or portion thereof the network is not available on the system during the six month period commencing with the last day of the promotion, or (cc) to continue service and petition the commission for determination of the amount of an appropriate credit for a portion of the monthly. rate for basic cable service for each month or portion thereof the network is not available on the system during the six month period commencing with the last day of the promotion. (d) Pay per view programming. Subdivision (a) - (c) shall not apply to pay per view programming. -5- (e) Other subscriber .rights. (1) Notice required. Every cable television company shall provide notice concerning the programming and other services offered on the cable television system and the rates and charges therefor. (2) Form and content of notice. (i) Notice shall be provided (a) to ne'.v subscribers at the time of installation; (b) to any subscriber who requests a chance in service; (c) to all subscribers at least semi-annually; provided, however, that any cable television company that bills subscribers only by coupon book and does not provide regular mailings to subscribers at least quarterly may provide such notice to subscribers on an annual basis; and (d) to any person who requests such information. (ii) Notice shall be in writing and (a) shall be provided immediately where a request is made in person or (b) shall be provided by first class mail sent within ten (10) business days of the date of any request made by telephone or in writing. (iii) The notice shall contain a description, materially accurate as of the first day of the previous month, of all service tiers and the networks provided thereon and the rates and charges therefor and any other services offered to subscribers and the rates and charges for such other services. The notice shall also include a statement of significantrights accorded to subscribers pursuant to Section 824-a of the Executive Law and the regulations promulgated by the commission. Such statement shall be in -. a form as approved by the commission. In addition, notice to new subscribers shall include a copy of any notice which has been sent -to current subscribers pursuant to subdivisions (a) - (c) of this section within the previous sixty (60) days. (f) Amendments to existing rules. (1) Section 590.61(h) of the commission's rules is amended to read: 590.61 Definitions. (h) Downgrade charge. shall mean a charge imposed upon a subscriber for implementing a request [for a reduction of services in the amount or level of cable television services.] by the subscriber for a change in service to a less expensive tier than the tier currently subscribed to. (2) Sections 590.62(b) and (c) of the Commission's rules are amended to read: 590.62 Notification of billing practices. (b) Notice shall be given as follows: (3) toall subscribers.at least [annually.] semi-annually. -6- (c) Every cable television company (i) shall file copies of its billing practices and payment _requirements with the commission and (ii) shall maintain on file in its local office for public inspection for a period of two years copies of its billing, practices and payment requirements ar.d [promotional and general informational materials (including. monthly bill stuffers).] all advertisements. lists or other notifications regarding programming sent to or made available to the oublic. For purposes of this subdivision, "advertisements, lists or other notifications" shall mean any commercial messages which a cable television company originates and causes to be disseminated to the public or its subscribers bv means of radio television or orint, or pursuant to a printed directive. which relate to the service tiers, networks or programming offered bv said company to its subscribers and the rates and charges therefor, except that such terms shall not include any commercial message concerning a network or Programming which originates with the .network or programmer independent of the cable television comoanv. (3) Section 590.63(f) of the Commission's rules is amended to read: 590.63 Bill format, late charges, collection charges and downgrade charges. (f) A cable television company may impose a [charge for downgrading a subscriber's services provided (i) that such charge does not exceed the cost thereof to the company and (ii) that subscribers have been notified in writing (print no smaller than ten point) of such charges. In no event may a downgrade charge beimposed upon a subscriber who is terminating service completely or who has maintained the same level of cable television services for six (6) continuous months immediately prior to a request for reduction in services. This section shall not apply • to pay-per-view programming.] downgrade charge upon the conditions and in the circumstances as follows: (1) subscribers have been notified of such charge in writing in at least 10 point type., (2) the charge does not exceed the cost of the downgrade to the company: (3) the downgrade is from a level of service which the subscriber has not maintained continuously for six (6) months immediately preceding the date of the downgrade. (4) the downgrade was not requested by a subscriber affected by a "significant programming change" or a "network change"within forty-five (45) days of the receipt by the subscriber of the notice required by Section 590.69A(b'(4) and (c)(4). -7- (g) This section shall be effective immediately upon filing with the Secretary of State and shall supersede any Commission rule inconsistent herewith including particularly, but without limitation, Section 590.69. • Weekly Bulletin October 5, 1990 STATE OF NEW YORK COMMISSION ON CABLE TELEVISION EMPIRE STATE PLAZA TOWER BUILDING ALBANY, NEW YORK 12223 This Bulletin contains three categories of information: Requests for Commission Action Summary of Commission Action Notes of General Interest For a complete description and listing of all requests and actions, or for further information regarding items in the bulletin, please contact our Albany office at 518-474-4992. For the period covered: September 28, 1990 through October 4, 1990. REQUESTS FOR COMMISSION ACTION Docket Number 31122 Application by Cablevision Industries for approval of a renewal of its franchise with the Village of Honeoye Falls (Monroe County)(Initial Franchise DN 11094) 31123 Application by Cablevision Industries for. approval of a renewal of its franchise with the Village of Lima (Livingston County) (Initial Franchise DN 11145) 31124 Application by Cablevision Industries for approval of a renewal of its franchise with the Village of Livonia (Livingston County.) (Initial Franchise DN 10867) 31125 Application by Cablevision Industries for approval of a renewal of its franchise with the Village of Scottsville (Monroe County) (Initial Franchise DN 11146) Date Received 10/3/90 10/3/90 10/3/90 10/3/90 Weekly Bulletin -2- October 5, 1990 Docket Date Number Received 30598 Application by Paragon Cable for approval 10/4/90 of a renewal of its franchise with the Village of Earlville (Chenango County) (Initial.Franchise DN 10965) 30599 Application by Paragon Cable for approval 10/4/90 of a renewal of its franchise with the Village of Hamilton (Madison County) (Initial Franchise DN 10593) 30600 Application by Paragon Cable for approval 10/4/90 of a renewal of its franchise with the Village of Morrisville (Madison County) (Initial Franchise DN 11033) 30601 Application by Paragon Cable for approval 10/4/90 of a renewal of its franchise with the Village of Sherburne (Chenango County) (Initial Franchise DN 10830) 30775 Application by Paragon Cable for approval 10/4/90 of a renewal of its franchise with the Town of Hamilton (Madison County) (Initial Franchise DN 10966) 30931 Application by Paragon Cable for approval 10/4/90 of a renewal of its franchise with the Town of Eaton (Madison County) (Initial Franchise DN 11021) 30934 Application by Paragon Cable for approval 10/4/90 of a renewal of its franchise with the Town.of Sherburne (Chenango County) (Initial Franchise DN 10957) 30802 Application by AR Cable Services for 10/4/90 approval of a renewal franchise with the Town of Putnam (Putnam County) (Initial Franchise DN 10880) 30806 Application by AR Cable Services for 10/4/90 approval of a renewal franchise with the Town of Somers (Westchester County) 31119 .Application by AR Cable Services for approval of a renewal franchise with the Village of Cedarhurst (Nassau County) (Initial Franchise 10763) 10/4/90 Weekly Bulletin -3- October 5, 1990 !' • 31120 Application by AR Cable Services for approval of a renewal franchise with the Village of East Williston (Nassau County) (Initial Franchise DN 10922) 31121 Application by AR Cable Services for approval of a renewal franchise with the Village of Floral Park (Nassau County) (Initial Franchise DN 11093) 30889 Application by Greater Rochester Cablevision Inc for a renewal of its franchise with the Village of Pittsford (Monroe County) (Initial Franchise DN 10597) Docket Number 10271-R88 SUMMARY OF COMMISSION ACTION 10/4/90 10/4/90 10/3/90 Date Released Application of Suffolk Cable of Smithtown, 09/28/90 d/b/a Viacom Cablevision for approval of 88-294-A the renewal of its certificate of confirmation for the Town of Smithtown (Suffolk County) ORDER EXTENDING CERTIFICATE OF CONFIRMATION 10286-R88 Application of Cablevision Systems Islip Corporation for approval of the renewal of its certificate of confirmation for the Village of Babylon (Suffolk County) ORDER EXTENDING CERTIFICATE OF CONFIRMATION Application of Samson Cablevision Corp., d/b/a Viacom Cablevision for approval of the renewal of a certificate of confirmation for the Town of Islip (Suffolk County) Application of Cablevision Systems Islip 10/01/90 Corporation for approval of the renewal of 88-293-A a certificate of confirmation for a franchise for the Town of Islip (Suffolk Co.) ORDER EXTENDING CERTIFICATES OF CONFIRMATION Application of Sammons Communications of New York, Inc. for renewal of its cable television franchise for the Town of Mayfield (Fulton County) Initial Docket No. 10911 ORDER EXTENDING CERTIFICATE OF CONFIRMATION 10315-R88 10289-R88 30653 09/28/90 88-295-A 10/01/90 88-293-A 10/01/90 89-203-A Weekly Bulletin 1990 -4- October 5, . 30654 Application of Sammons,. Communications of New York, Inc. for renewal of its cable television franchise for. the Village of Mayfield (Fulton County) Initial Docket No. 10912 ORDER EXTENDING CERTIFICATE OF CONFIRMATION 30691 Application of Sammons Communications of New York, Inc. for renewal of its cable television franchise for the City of Gloversville (Fulton County) Initial Docket No. 10260 ORDER EXTENDING CERTIFICATE OF CONFIRMATION 30692 Application of Sammons Communications of New York, Inc. for renewal of its cable television franchise for the Town of Johnstown (Fulton County) Initial Docket No. 10913 ORDER EXTENDING CERTIFICATE OF CONFIRMATION 10/01/90 89-202-A 10/01/90 89-200-A 10/01/90 89-201-A 30752 Application of Greene Cablevision Co.,Inc. 10/01/90 for approval of the renewal of its cable 90-300 television franchise for the Village of Greene (Chenango County.) Initial Docket No.10253 ORDER APPROVING RENEWAL 31053 Application of Mid -Hudson Cablevision, Inc. 10/01/90 for approval of a renewal by option of its 90-301 cable television franchise for the Town of Bethlehem (Albany County) Initial Docket No. 11126 ORDER APPROVING RENEWAL • 10131-R88 Application of NewChannels Corp. for 10/02/90 approval of- the renewal of its certificate 88-276-A of confirmation for the City of Corning (Steuben County) Initial Docket'No. 10131 ORDER EXTENDING CERTIFICATE OF CONFIRMATION 30532 Application of NewChannels Corp. for 10/02/90 approval of the renewal of its cable 89-082-A television franchise for the Town of Corning (Steuben County) Initial Docket No. 10129 ORDER EXTENDING CERTIFICATE OF CONFIRMATION 30567 Application of NewChannels Corp. for 10/02/90 approval of the renewal of its cable 89-083-A television franchise for the Town of Campbell (Steuben County) Initial Docket No. 10124 ORDER EXTENDING CERTIFICATE OF CONFIRMATION 4 Weekly Bulletin 30568 Application of NewChannels Corp. for approval of the renewal of its cable television franchise for the Village of Painted Post (Steuben County) Initial Docket No. 10189 ORDER EXTENDING CERTIFICATE OF CONFIRMATION October 5, 1990 10/02/90 89-084-A 30570 Application of New Channels Corp. for 10/02/90 approval of the renewal of its cable 89-085-A television franchise for the Village of Riverside (Steuben County) Initial Docket No. 10130 ORDER EXTENDING CERTIFICATE OF CONFIRMATION 30596 Application of New Channels Corp. for 10/02/90 approval of the renewal of its cable 89-086-A television franchise for the Village of Addison (Steuben County) Initial Docket No. 10126 ORDER EXTENDING CERTIFICATE OF CONFIRMATION NOTE OF GENERAL INTEREST 1990 INFORMATION SURVEY PLEASE TAKE NOTICE that at its regular meeting on October 3, 1990, the Commission determined that any cable television company which has not submitted a completed 1990 INFORMATION SURVEY questionnaire for each system it operates in New York State, by the close of business on Tuesday,. October 15, 1990, will be subject to a forfeiture in the amount of one hundred dollars ($100.00), pursuant to section 827-a.2(c) of Article 28 of the Executive Law. Frances Ann McKenzie (607) 533-4586 P.O. Box 187, Lansing, New York 14882 8 October 1990 To: Ithaca City Cable Commission and the Access Advisory Board I regretfully must resign my position as member of the Access Advisory Board, effective November 1, 1990. I have accepted an offer to work for WSKG as Manager of Member Services in Binghamton and will be unable to attend meetings in Ithaca. I have enjoyed working with the Access Advisory Board and wish you all continued success. Sincerely, CITY OF ITHACA TV CABLE COMMSSION Meeting October 9, 1990 7:30 PM Third Floor Conference Room - City Hall 1. Call to Order 2. Approval of minutes of September 18, 1990 meeting 3. Chair's report a. Organizational Support from the City b. Commission Records b. Nominations of New Commission Members 4. Public comment 5. ACC's report 6. Public Comment 7. Cable Access Advisory Board Report - Peter Hess a. Government/Educational Channel 8. Old Business a. Rate increase - installations b. WVIA c. Political Endorsements on Access d. Federal Legislation - Update 9. New Business a. Complaints TV CABLE COMMISSION MEETING Tuesday, July 10, 1990 7:30 P.M. Third Floor Conference Room - City Hall Ci4-t R -1 -Vo r ruy M@IE 1:1W JUL 3 1990 1 AGENDA 1. Call To Order 2. Approval of Minutes 3. Chairman's Report 4. Public Comments 5.' . ACC. Report . . 6. Access Advisory Board Report - P. Hess 7. Old Business: a. Procedures regarding Senior Citizen's Discount (See Attachment) b. Policy on Political Endorsements over Public Access (Richard Herskowitz) 8. New Business a. Change in policies regarding Cable 13's City meeting coverage (See Lauren Stefanelli's.letter attached) b. New York State Cable Commission rule changes (Information item - Commission documents attached) 9. Adjournment IF YOU ARE UNABLE TO ATTEND THE MEETING, PLEASE CALL RICHARD HERSKOWITZ AT (607) 255-3522. . WD/jcb Enclosures TrT AMERICAN COMMUNITY CABLEVISION June 15, 1990 Mary Jo Dudley, Chair Community Access Advisory Board 312 First St. Ithaca, NY 14850. Dear Mary Jo: In response. to the Access Advisory Board's request for„ information regarding the expenditure of 2% of revenues received from City of Ithaca subscribers, I must tell you that ACC and the City of Ithaca were. operating under Temporary Operating Authority (TOA) granted by the New York .State Commission on Cable Television. Under ...a TOA, a company continues operating on the basis of the (then) existing franchise agreement. The new franchise agreement was approved fully in February of 1989, thus 1989 was the first year of operation under the agreement which contains the 2% clause. The full 10 years of the franchise will expire in February of 1999 at which time ACC will have had 10 years of supporting Community Access Studio at the 2% rate for the full 10 years of the agreement. I hope this explanation helps the AAB understand our position, which is in compliance with the franchise. Sincerely, Barbara L. Lukens General Manager BLL/fw cc: William Demo, Chair Ithaca Cable. Commission Lauren Stefanelli,.ACC 519 West State Street Ithaca, New York 14850 607-272-3456 To: Ithaca Cable Commission From: Peter Hess Re: Community Access Advisory Board meeting, June 4, 1990 Date: June 12, 1990 • 1. Resolution on equipment requests for 1990. Be it resolved that the Community Access Advisory Board requests that ACC submit a detailed report of all equipment requests under consideration for calendar year 1990 including prices of various equipment packages, for consideration by the CAAB at its August 6th meeting, so that the CAAB can respond with recommendations and prioritize these requests. This report should be sent the the CAAB prior to its August meeting. The CAAB further requests that Joe Powers and Lauren Stefanelli attend the meeting so that the report can be discussed with them. 2. Access Coordinator's report. In Lauren's report, she noted that she had brought to Barbara Lukens, ACC General Manager, the CAAB request for a report on the operating budget for access, and that Barbara declined to meet the request. 3. Resolution on capital equipment acquisition for access, under the franchise. The CAAB requests the Cable Commission to vigorously pursue obtaining a detailed inventory of expenditures under the 2% franchise requirement from January, 1988 to the present, and we resolve that this be an ongoing process throughout the period of the franchise. 4. Expansion of access channels. Mr. Demo and Mr. Herskowitz from the Cable Commission were in attendance to participate in this discussion. The CAAB decided to appoint a committee to study the logistics of expanding the number of access channels, and how they would be programmed. Bill McCormick and Eloise Green volunteered to be on this committee. Some suggestions for additional access channels which seemed to have broad support on the board were: 1. Government Access channel 2. Bulletin board channel 3 Educational Access channel 4. 2nd Public Access channel 5. NFLCP Convention. The city has received a request from Richard Herskowitz and Mary Jo Dudley to send a representative to the NFLCP convention, meeting in Washington, DC in late July. ti CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF TELEPHONE: 272-1713 CODE 607 THE CHAMBERLAIN TO: Bill Demo FROM: Debbie Parsons DATE: June 26, 1990 RE: Senior Citizens Cable Discount Per our conversations at the last Cable Commission meeting, I am. enclosing a copy of the application and proposed procedures. If this meets witheveryone's approval, let me know, and I'll contact the Senior Citizen's Council to proceed. I will be .on vacation when the Commission.meets next, so I won't be able -to attend. If.you can let me know next week if you need any other information., .I'll try to get it t� you before I leave. "An Equal Opportunity Employer with an Affirmative Action Program" 1) Applicant will pick up application at City Hall, the Senior Citizen's Center, or Tompkins County Council for the Aging. 2) Designated representative will examine application and documents provided by applicant for accuracy and completeness, and will sign the form in the appropriate location. No copies of the documentation shall be made unless the examiner has a question about the documentation or the form. Date of birth is requested to determine date discountshould commence, retroactive to March, 1989 or the first date of service, whichever is later. 3) Chamberlain's Office will collect applications and generate a list to be sent to ACC. This list will include name, service address and date of - birth, and will be certified by the City Chamberlain or the Office Manager. Copies of the applications will accompany the list to ACC. Originals will be maintained by the City. RSVP volunteers will be available during -the initial sign up period to assist applicants and to examine applications. Hours when they will be available (currently suggested that they would be available at Senior Citizen's Center) will be announced. Senior Citizen's Center has agreed to include information regarding avail- ability of applications on their Sunday morning radio broadcast and in their, newsletter. OFFICE USE ONLY Examined by Date By City APPLICATION FOR SENIOR CITIZENS DISCOUNT FOR TV CABLE SERVICES 1) Names of person(S) requesting discount (Your name as it appears on the billing from ACC) (please print) 2) Property address where service is provided 3) Mailing address (if different from above) 4)' Proof of age (one of the following) Birth Certificate Baptismal Certificate 5) Proof of residency (one of following) Telephone Listing Copy of Utility Bill DATE OF BIRTH Other (identify) (Driver's License) (Medicare Card) Lease (or rental receipt) Other (identify) I certify that I am 65 years of age or older, that I have a total household income of $15,000 or less from taxable and non-taxable sources. I understand that failure to provide proof if requested or any deliberate false statement on this application may be grounds for disqualification from further discounts. SIGNATURE DATE William Demo, Chairman Ithaca City Cable Commission c/o City Hall 10.8 E. Green St. Ithaca, NY 14850 Dear Mr. Demo.: CABLE? AMERICAN COMMUNITY CABLEVISION May 10, 1990 519 WEST STATE STREET ITHACA, NEW YORK 14850 607-272-7272 This letter is by way of explanation of a change in staff policy for coverage of City, Hall meetings: for meetings which go into executive - session for Longer than 40 minutes or after llpm, our camera coverage, will end at this point. .We have run into a problem with camera.coverage of meetings -which go into extended and repeated executive session. Until now, we have dealt with executive sessions by having a camera crewperson ask councilmembers whether they. thought it would be useful to have the cameras stay until the, public meeting was reconvened. This has -not proven to be effective in some cases, because the councilmembers themselves ,are often not certain how long executive sessions may last, or whether the members will. vote to continue the meeting late at night. In April, for example, one meeting which we covered went into executive session for one and a half:hhours, from 9:30 .pm until 11 pm. At 11 pm, the public meeting reconvened. until 12am. Another executive session was called at midnight; , this one lasted until 12:30 am, when the public .meeting reconvened for about 5 minutes - just long enough to wrap up. Having. a two -person camera crew waiting for such extended periods 'Of time or, as in the later executive session described above, to no purpose, is counterproductive and wasteful of access staff. On the other hand, most executive sessions last about a half hour or so. Having the crew wait that' lengthof time seems reasonable if there are important issues to be discussed after -wards. Rather than have the crew make` judggment calls' and guesstimates on their own as to when they should ,or shouldn't wait`out an executive session, we felt the need to give them some sort of gu4deline, and came up with tie rule of thumb above. Listing this policy in the monthly letters to you, copied to committee chairs, lets the committee chairpersons plan their agendas with knowledge' of the scope of camera coverage. If you have any questions about CABLE 13-s City Hall video coverage, please feel free to contact me at any time. cc: Cordially, - L,aur-r S•te'fan l i Commyi ty c v s Cc(o • inator Barbara Lukens, General Manager, ACC "Television for Tompkins County" Mailing Address: 519 W. State Street Ithaca, N.Y. 14850 ABLE AMERICAN COMMUNITY CABLEVISION1 William Demo, Chairman Ithaca City Sable Commission City Hall 108 E. Green St. Ithaca, NY 14850 June 20, 1990 Dear Mr. Demo: Studio Address: 612 W. Green Street Ithaca, N.Y. 14850 607-272-7272 ACC's coverage of City Hall meetings in July are listed below: Committee meetings are selected on a rotating basis. The regular monthly datts were given to us by the City Clerk's office. Common Council Meeting Second Wednesday, July 11, 1990, from 7pm-lam. Cablecast live. Planning & Development Committee Meeting Third Monday, July lb, 1990, from 7:30-11pm. Taped for cablecast Saturday, July 21,.1pm., Human Services Committee Meeting Fourth Monday, July 23, 1990, from 4:30pm-9pm. Taped for cablecast Saturday, July 28, 1pm. Please notify ,us of any changes in these meeting dates. We need a minimum of two weeks notice to arrange coverage with our two -camera portable unit, and to assure accurate TV listings. Also, please note that for meetings which go into executive session for longer than 4Q minutes or after 11pm, our camera coverage will end at this point. cc: Cordially, Lauren Community Acce= ••rdinat CABLE 13 Cellists .Paolangeli, Ithaca Cj.ty Clerk Richard Booth, .Chair, Budget and Administration Comm. Dan Hoffman, Chair, Planning and Development Comm. Carolyn Peterson, Chair, Charter and Ordinance Comm. John Johnson, Chair, Human Services Comm. Barbara Lukens, General Manager, ACC "Television for Tompkins County" NEW YORK STATE COMMISSION ON CABLE TELEVISION In the Matter of 90-141 Amendment of Consumer Service Rules and Regulations DOCKET NO. 90379 MEMORANDUM ADOPTING RULES (Released: May 24, 1990) On February 28, 1989, a Notice of Proposed Rulemaking was issued in this docket wherein the Commission proposed to amend existing provisions of its rules and to adopt new provisions related to cable television company billing and customer service requirements and invited comments thereon. Comments and reply comments were submitted by a variety of interested parties including cable television companies, and municipal governments. On November 1, 1989, the Commission adopted rules as attached hereto as Appendix A and authorized the filing of a Notice of Adoptio.n.with the Secretary of State. pursuant to Section 202(5) of the State Administrative Procedure Act ("SAPA"). The Notice of Adoption was filed on December 22, 1989 and published in the State Register on January 10, 1990.1 Included with the Notice of Adoption was an Assessment of. Comments in fulfillment of Section 202(5)(b) of SAPA. A copy of the Assessment is attached hereto as Appendix B. The discussion of the rules herein is intended to supplement the discussion in the Assessment of Comments. Since the adoption_ of the rules in this docket, a new Section 824-a entitled "Consumer Protection" has been enacted into law.2. The new law was effective immediately. 1 The rules became effective January 12, 1990. Pursuant to Section 590.60, cable television companies were required to comply with the rules within 120 days of the effective date or May 12, 1990. The date for compliance with Sections 590.63(a), (b) and (d) and 590.67(a) and (b) has been extended to July 12, 1990. The same date applies to Section 590.63(f) as amended in Docket No. 90403 (infra,) except Section 590.63(f)(4). 2 Chapter 9, Laws of 1990, "An act to amend the executive law in relation to notification and refunds for changes in programming by a cable television company" effective February 13, 1990. This law also amends Section 812 of the Executive Law. ( 2 By separate emergency action in Docket No. 90403, the Commission adopted ternporary rules implementing Section 824-a which rules also include amendments to certain provisions of the rules adopted in this docket. (Order Adopting Rule and Notice of Proposed Rulemaking, Docket No. 90403, 90-081; Released: April 4, 1990.) These changes are attached hereto as Appendix C. Specifically, the emergency rules affect Sections 590.61(h), 590.62(b)(3), 590.62(c), 590.63(f) and 590.69. The impact of new Section 824-a on these sections are also discussed herein. The rules adopted in this docket relate to such matters as billing practices, billing disputes, advance billing, late payments, collection charges, credit for service outages, discontinuation of service :for non-payment, notice of programming changes and charges for lost, damaged or stolen equipment. For purposes of our review herein, we shall divide the new rules into two groups. The first group includes the rules which are not affected by Section 824-a of the Executive Law. The second group includes the rules which are affected by Section 824-a and the emergency rules implementing said section. I. Rules not affected by Section 824-a Section 590.63 - Bill format, late charges, collection charges and downgrade charges. Section 590.63(a) has been amended to require that a subscriber bill "(ii):: ".shall itemize each category of service and piece of equipment for which a charge is imposed; [and] (iii) state the billing period, amount of current billing and appropriate credits or past due balances, if any." Section 590.63(b) requires that each "bill shall specify a minimum time for payment which shall not be less than fifteen (15) days from mailing of the bill." In the Assessment of Comments filed with the Notice of Adoption, we noted that the rule requires the "itemization of each category of service rather than each service." We stated further that the rule does not require that each bill contain a "list [of] each and every channel or cable network received by a particular subscriber." We take this opportunity to summarize the elements of an itemized bill as follows: installation charges, if any; the number of outlets in the home; a description of the service provided, e.g., basic service or a higher tier; equipment, but only if a separate charge is imposed therefor; a past due amount and/or late charge, if any; credits, if any, and the due date. Thee requirements apply to residential subscribers who are billed on a regular basis. Where coupon books are used, a simple itemized statement attached to the booklet or printed on a separate statement included with the booklet will suffice to comply with the rule. Section 590.66 - Credit for service outage. This section requires a cable company to provide a credit for every service outage in excess of four (4) continuous hours. The company is obligated by the rule to make a reasonable effort to determine the existence and scope of an outage including the identification of subscribers affected. In this regard, if a subscriber does not receive a credit but has experienced an outage in excess of four con- tinuous hours, the subscriber may still obtain a credit by notifying the cable company within ninety days. of the outage. The service outage must be a complete outage, Le., no signals are being received at the subscriber's television set. The credit to be given for an outage that exceeds four continuous hours shall be equal to one thirtieth of the monthly charge. Additional outages within the twenty-four hour period do not require additional credits. Some commentors have observed that this rule creates a disincentive for prompt attention 3 to service outages after the fourth continuous hour. Such comments fail to recognize that the rule is not designed to induce cable companies to repair service outages or to punish companies for poor performance. Section 824 of the Executive Law already requires cable companies to provide safe, adequate and reliable service and contains ample remedial provisions. The rule is designed solely to ensure that a subscriber is not obligated to pay for services which are not received during a substantial portion of the subscriber's viewing day. Subdivision (f) of Section 590.66 requires a cable company to give prior. written notice of an outage that is scheduled as part of, a: system upgrade .or rebuild. Such notice is to be provided to the Commission and the franchising municipality. In addition, a company is required to make a reasonable effort to inform subscribers in advance of any service outage which is scheduled for the purpose of repairing equipment or monitoring the system. We emphasize here that this requirement_applies to outages which are scheduled sufficiently in advance to permit notice. Section 590.67 - Discontinuance of service for non-payment. : The _earliest a cable company may commence efforts to disconnect a subscriber fornon-payment of a bill has been changed from thirty days after the due date to forty-five days after the date the hill was mailed to the subscriber. Since, under Section 590.63(b), the due date must he at least fifteen days from the date of mailing, this rule maintains the same minimum thirty day period between due date and disconnect date. In fact, this amendment will only impact those cable companies which under prior rules required -payment sooner than fifteen days from mailing. Section 590.73 - Auxiliary equipment. Cable television companies commonly provide converters or other modifying or descrambling equipment to subscribers in connection with the delivery of cable television programming to the home. This equipment is valuable and often necessary to permit the delivery to a subscriber of only those services which the subscriber has agreed to purchase. (The receipt of cable television services that are not paid for is a crime under certain circumstances pursuant to Section 165:15 of the Penal Law of the State of New York.) A cable company is 'entitled to expect reasonable care of the equipment and the return of the equipment when the subscription is terminated. A cable company may impose a charge for damage to the equipment caused by a subscriber or for failure by the subscriber to return the equipment subject to two conditions. First, the company must have given advance notice to the subscriber of the potential liability for damage to, or loss of, the equipment. Second, at the time the company seeks to collect a charge in a specific case, it must provide the subscriber in writing with notice of the amount of the charge and d the opportunity to refer the matter to Commission staff for review under Section 590.5. Such notice to subscribers should also include the Commission's toll free telephone number and address. Section 596.8 - Trouble call processing. Subdivision (c) hasbeen amended to require cable television companies to provide subscriberswith the opportunity to schedule appointments in various day parts, e.g., morning, afternoon, evening or Saturdays. If a company fails to fulfill an appointment scheduled in this manner, it is prohibited by the rule from imposing any charge for the service call when made. Four hour windows are 4 suggested. The rule is not intended to preclude a cable company and an individual from agreeing to a more specific time period for an appointment provided that the subscriber remains entitled to the same remedy if such appointment is not timely met by the company. II. Rules affected by Section 824-a Section 590.61 - Definitions. Section 590.61 was amended by the addition of a new subdivision (h) which defines a "downgrade charge." (Appendix A) (Section 590.63(f) imposes restrictions upon the imposition of downgrade charges by cable television companies,, infra.) As part of the law enacting the new Section 824-a the legislature also amended Section 812 of the Executive Law to include a definition of "downgrade." In order to avoid redundant and potentially confusing separate definitions, the definition of "downgrade charge" in Section 590.61(h) was amended on an emergency basis (Appendix C) to incorporate the statutory definition of "downgrade" in new Section 812(12). Section 590.62 - Notification of billing practices. Section 590.62(b) was amended to clarify the obligation of cable television companies to provide notice of billing practices to subscribers on an annual basis. (Appendix A) The new Section 824-a affects the existing rule. Specifically, Section 824-a(4) requires cable television companies to provide notice of programing and other services offered on the system, the rates and charges therefor and a statement of significant rights accorded to subscribers on at least a semi-annual basis.3 Billing practices are sufficiently related to the new statutory notice requirements including, particularly, ."significant rights accorded tosubscribers",to warrant inclusion as part of a single comprehensive notification and, accordingly, Section 590.62(b)(3) was amended on an emergency basis to require that notice of billing practices be given on the same basis as the new statutory notice requirements. (Appendix C) Section 590.62(c) was amended to require cable television companies to maintain "promotional and general informational materials (including monthly bill stuffers)" at its local office for public inspection for two years. (Appendix A) Section 824-a(6)(a) now requires cable television companies to maintain copies of "all advertisements, lists or other notifications regarding programming or made available to the public" and to make such information available to the Commission on request. Because the rule and the statute share a common objective, the statutory language has been embodied in Section 590.62(c) as amended on an emergency basis. A definition of the term "advertisements, lists or other notification" is also included in said rule. (Appendix C) Since the obligation to retain such information now derives from a specific statutory provision, compliance is measured from the effective date of the statute. Section 590.63 - Bill format Subdivision (f) of Section 590.63 addresses the issue of downgrade charges. Specifically, it limits the amount of any downgrade charge to 3 Section 824-a(4)(a) permits a cable company to apply to the Commission for an extension of the semi-annual mailing requirement and also permits a cable company which hills annually by coupon and does not make regular quarterly mailings to provide notice by mail annually. 5 the cost thereof and requires prior notice to subscribers of the existence of such charge. In addition, the rule would preclude the imposition of a downgrade charge where a subscriber is terminating all service or where a subscriber has maintained the same level of service for six continuous months. Section 824-a now imposes an additional limitation upon the imposition of downgrade charges in the event of a "network change" or "significant programming change." The provisions concerning downgrades have been consolidated in Section 590.63(f) as amended on an emergency basis to preclude the imposition of a downgrade charge consistent with Section 824-a(5) whenever a subscriber requests a downgrade within 45 days of receipt of notice of a "network change" or "significant programming change." (Appendix C - Section 590.69A(f)) Section 590.69 - Notice requirements for changes in cable television rates, charges and programming services offered. This section was amended in this docket primarily to include a ten day notice requirement for changes in programming services offered by cable television companies to subscribers. This requirement was superseded by the new Section 824-a of the Executive Law and, accordingly, all rules applicable to programming or "network" changes are based on the new law and embodied in the rules implementing such section on an emergency basis. (Appendix C) The notice requirements applicable to changes in rates have also been transferred to Section 590.69A at paragraph (a). The rule is intended to provide prior notice to affected subscribers of any change in rates and to provide affected subscribers the opportunity to request a free downgrade in the event of a rate increase. It is noted, in conclusion, that a Notice of Proposed Rulemaking is now pending in Docket No. 90403 wherein the Commission proposes to adopt the emergency regulations (Section 590.69A) implementing new Section 824-a on a permanent basis. (See Order No. 90-081) The temporary changes to Sections 590.61(h), 590.62(b) and (c), 590.63(f) and 590.69 are among the issues upon which parties may comment in that proceeding. Comments may be submitted until June 8, 1990 and reply comments may he submitted until June 25, 1990. Commissioners Participating: William B. Finneran, Chairman; John A. Gussow, Theodore E. Mulford, John A. Passidomo, Barbara T. Rothman, Commissioners. NEW YORK STATE COMMISSION ON CABLE TELEVISION RESOLUTION BY THE COMMISSION Statutory Authority: Article 28 of the Executive Law, Sections 811, 815 and 816 Docket No. 90379: In the Matter of Amendment to Consumer Service Rules and Regulations At a meeting of the Commission on Cable Television held in the City of Albany, New York, on November 1, 1989, the Commission by unanimous vote of its members present, RESOLVED:. That the provisions of Section 202(1) of the State Administrative Procedure Act and Section 101-a(2) of the Executive Law having been complied with, Title 9, Subtitle R, Part 590, Sections 590.61 - 590.69 and Part. 596, Section 596.8 of the Official Compilation of Codes, Rules and Regulations of the State -of New York are hereby amended, effective twenty-one (21) days after the date a Notice of Adoption is filed with the Secretary of State. The Executive Director shall file with the Secretary of State a certificate of rulemaking pursuant to Section 102(2) of the Executive Law and a Notice of Adoption pursuant to Section 202(5) of the State Administrative Procedure Act. APPENDIX A BILLING PRACTICES OF CABLE TELEVISION COMPANIES 590.61 Definitions. (a) Basic subscriber channel shall mean any channel which is provided [for in] as part of the basic monthly service rate. (b) A billing dispute shall mean a disagreement between a subscriber and cable television company concerning: (1) credits for payments made by the subscriber to the cable television company; (2) credit or refund for service outage; (3) errors in billing amount; or (4) assessment of late charges. (c) Collection charge shall mean a fee or charge imposed upon a subscriber by a cable television company for its efforts at collecting or attempting to collect a past due account by personal visit at a subscriber's home or place of business. [an account due.] (d) Commission shall mean the New York State Commission on Cable Television. (e) Late charge shall mean a charge which is added to a cable television subscriber's account or bill for nonpayment of a previously due account. (f) Local office shall mean the business office of the cable television company serving the municipality in which a billing dispute arises. (g) Service outage shall mean a loss of picture or sound on all basic subscriber channels or on one or more auxiliary programming channels [and] which is not caused by the subscriber's television receiver [n]or the subscriber. (hi Downgrade charge shall mean a charge imposed upon a subscriber -for implementing a request for a reduction of services in the amount or level of cable television. services. 590.62 Notification of billing practices. (a) Every cable television:company shall notify, each of its . subscribers, [in writing,] .. in a separate written notice, of its billing practices and payment requirements [.] including the use of payment coupons. The notice shall describe or define, [as] at a minimum, billing procedures (including payment requirements to avoid discontinuance of service, e.g., payment due dates) , late charges, downgrade charges, advance billing options, if any, procedures to be followed in billing disputes and credit to be given for service outages. (b) Notice shall be given as follows (1•).w,,-to:new subscribers, at the time of initial - "inst al lation; all subscribers, ,whenever there is a change in the company's billing practices or .:payment requi cements; (3) _to =a11 [existing] subscribers .[,within one year of effective date of these rules.] at :least =annually: [Thereafter, notice shall be given whenever the company changes its billing practices.] (c) [Copies of the company's billing practices and billing requirements shall be filed with the commission and shall be filed in the company's local office and shall be available upon request by a subscriber.] Every cable television company (i) shall. file copies of its billing practices and payment requirements with the commission and (ii) shall maintain on file in its local office for public inspection for a period of two years copies of its billing practices and payment requirements and promotional and general informational materials (including monthly bill stuffers) , 590.63 Bill format, [L] late charges [and], collection charges [.] and downgrade charges t (a) Each subscriber bill shall (i) include the name, address and telephone number of the company and the toll- free subscriber assistance telephone number of the commission; (ii) shall itemize each category of service and piece of equipment for which a charge is imposed; (iii) state the billing period, amount of current billing and appropriate credits or past due balances if any. (b) Each subscriber bill shall specify a minimum time for payment which shall not be less than fifteen (15) days from mailing of the bill. [a] (c) Any late charge permitted by law or by the franchise, if imposed upon the subscriber, shall be itemized on the subscriber's bill, or notice of delinquent payment in cases where coupon books are used. 3 Ld) If a late charge is to be imposed, it shall not be imposed sooner than forty-five t45) days .after the mailing of the bill to the subscriber or the due date, if coupons are used. [b] (e) No cable television company shall impose a collection charge upon any subscriber,, except as prescribed in subdivision 590.67(e) of this Part. <(f) " A'cable =television company may ``impose a''charge for'�downgrading a subscriber's --services "provided (1.Y -that such charge does -. not exceed the cost thereof to .the company and (ii) that subscribers have been notified in writing (print no smaller' than ten point) of such charges, In no event may a downgrade charge be imposed upon a subscriber who is terminating service completely or who has maintained the :same' level'of 'cable television services ,for :;six r(6) continuous months` immediately=prior to a request .for xreduction in services, This section shall not apply to pay-per-view programming, 590.66 Credit for service outage. (a) Every cable television company shall give credit, for every service outage in excess of [24] four (4) continuous hours [to any subscriber who applies for it either by written or oral notice.]. The [24] four (4) - hour period shall commence at the time the cable television company first becomes aware of the outage. (b) Whenever a cable television company may reasonably determine the existence and scope of a service outage, as, for example, a service outage caused by a major failure in the system's headend or distribution electronic equipment, which service outage exceeds four 00 continuous hours, the cable television company shall issue a credit to each affected subscriber . (c) ;,.In the event=a cable television company cannot determine all subscribers affected by:a service -outage in excess of four L4) continuous hours, -credit shall, be given to any eligible subscriber who makes application therefor by either written or oral notice. within -90 days of 'the outage. [b] (di [The credit shall be prorated by multiplying the applicable monthly service rate by a fraction whose numeratorequals the number of days (or portion thereof) of the outage and whose denominator equals 'the number of days in month of the outage. In no case shall the refund be less than 24 hours credit.] The minimum credit shall be equal to one thirtieth times the applicable monthly charge for each twenty-four hour period during which a service outage continues for at least four hours. [c] (e) A cable television [The] company shall be. responsible for every service outage and shall provide credit to 4 each affected subscriber who [applies for it within 90 days of an outage.] is entitled thereto pursuant to subdivisions (b) and (c) of this section. (f) Prior written notice of a scheduled service outage due to system upgrade or rebuild shall be filed with the commission and the affected municipality. Every cable television company shall make a reasonable effort to inform subscribers in writing_ or electronically, in advance, of any scheduled service outages for equipment repair or replacement, system upgrade or rebuild, or on-going technical "sweeps" of the system, 590.67 Discontinuance.. ofservice fo.r •.,nonpayment. (a) . A cable television_subscriber.Tshall not -be considered .delinquent in payment untilat least- [30] forty -five -(45) days have elapsed from the [due date of the bill or account] mailing of the bill to the subscriber or due date, if coupons are used, and payment has not been received by the company. (b) No cable television company shall physically or electronically discontinue service for nonpayment of bills rendered for service until: (1) the subscriber is delinquent in payment for cable television service; and (2) at least five days have elapsed after a separate written notice of impending discontinuance has been served personally upon a subscriber; or (3) at least eight days have elapsed after mailing to the subscriber a separate written notice of impending discontinuance (for which postage is paid by the cable television company), addressed to such person at the premises where [service is rendered; or] the subscriber requests billings or (4) at least five days have elapsed after a subscriber has either signed for or refused a certified letter (postage to be paid by the cable television company), containing a separate written notice of impending discontinuance addressed to such person at the premises where [service is rendered.] the subscriber requests billing. (c) Notice of service discontinuance shall clearly state the amount in arrears, the total amount required to be paid to avoid discontinuance of service, reconnection charges if applicable, and the date by which, and the place where, such payment must be made. 5 (d) No cable television company shall disconnect service for nonpayment on a Sunday, public holiday or a day when the local office of the company is not open for business without providing an opportunity for the subscriber to pay [a] the amount in arrears. - (e) When a company is at a -subscriber's residence or place of business to disconnect service and the subscriber, at that time,, pays the amount in arrears in lieu of disconnection, the company may add a reasonable collection charge to the subscriber's bill provided all other applicable provisions- of this section have been followed. (f) Receipt of a subsequently dishonored negotiable - instrument in response to a notice of discontinuance shall not' constitute payment, and no cable television company shall be required to issue an. additional notice prior to discontinuance. 59039 Notice of requirements for [increase] changes in cable television rates [and] charges and programming services offered. =.(a) Every cable television company shall provide notice of [an increase] a change in [a] rates [for any cable television service] or programming services offered. The notice shall be in writing and shall specify the service or services. affected; the new rate' [,] or charge, including the amount of the [increase] change, and the effective 'date thereof. (b) Notice shall be provided as follows: (1) to subscribers 'affected by the [rate increase] changes in rates, charges or programming services offered at least ten (10) days- prior to the effective date of such [increase] change; and (2) to the franchising municipality and the commission [no later than thirty (.30) days after the] at least ten (10) days prior to the effective date of the change in rated charges or programming services offered. (c) Every cable television company which has increased rates pursuant to Section 623 of the Cable Communications Policy Act of 1984 prior to the ,effective date hereof shall serve written notice of any such increase upon the franchising municipality and the commission within 30 days of the effective date of this section. (d) In any case where a subscriber requests cancellation or reduction of service within 30 days of the effective date of [a rate] an increase in rates or charges for such. 6 service, the liability of the subscriber for services received after the effective date of [the rate ,increase] such changes until the cancellation orreduction of service, shall- be determinedin accordance with, the rates or charges in effect prior to such [increase] change. (e) This section shall not apply to pay for view programming. 590,73 Auxiliary equipment, (a) When a cable --television company supplies auxiliary equipment such as a converter'or other modifying: device to a subscriber the company can. expect reasonable 'care of such equipment by the a subscriber. A cable operator shall notify the subscriber and the commission in writing of any charges to subscribers for lost, stolen or damaged converters. In the event such equipment is lost, stolen or damaged, and the cable television company.seeks to charge the subscriber for such equipment, the company shall give written, dated notice to the subscriber of the amount sought and the subscriber's opportunity to refer the matter to the commission in accordance with the provisions of Section 590.5 of this subtitle 'If- referral is not made to the commission within 30 days of the date of the notice, the company may commence its collection procedures. 596.8 Trouble calling processing. (a) .A telephone number shall be made available to which subscribers may direct trouble -calls.. In the event that trouble calls must be made outside the subscriber's local dialing area, the 'calls must be toll free. (b) Investigative action shall be initiated on the same day a trouble call is received at the local office, if. possible, but in no case later than the following business day. (c) Whenever a service call to the subscriber's premises is required, the company shall advise such subscriber of the opportunity to schedule the service call for the morning or afternoon hours Cor evenings or Saturdays, if available) and shall schedule such service call in accordance with the subscriber's request, If, for any reason, the service call is not made within the scheduled time frame, the subscriber shall not be charged for such service call including any installation • or reconnection- made as a result thereof, •• [(c) ] (d) A report on each trouble call in wh-ich a cable system fault reported by a single subscriberwasidentified shall be filed at the local office, and shall include the following. data: . . (1) subscriber identification; (2) date and approximate time complaint 7 was received; (3) date and approximate time of response; (4) nature of complaint; (5) brief description of the fault; (6) signal level measured on each active class I channel after corrective action, where appropriate; (7) corrective steps taken (if any required); (8) date case is closed; and (9) identification of.. technician or [repairman] repairperson. [(d)] (e) A report on each system fault, or on any failure reported by more than one subscriber and affecting an area,. shall be filed at the local office and shall include the following data: (1) , brief description of the area affected sufficient to allow the later determination ' of the number of subscribers affected; (2) date and approximate time of failure; (3) cause of failure; and (4) date and time service is restored. [(e)] (f) A report for each trouble call in which no trouble was identified, or in which further instruction was required to enable the subscriber properly to adjust the terminal receiving equipment, or in which the fault was in the subscriber's receiving equipment, shall be filed at the local office and shall include: (1) subscriber identification;. (2) date and time complaint was received; (3) date and time of response; (4) nature of complaint; 8 (5) corrective steps taken (if any required); and. (6) identification of technician or [repairman] repairperson. [(f)] (g) Any report required to be maintained pursuant to this section shall be kept by the operator for a period of two years from the event to which it relates. APPENDIX B ASSESSMENT OF COMMENT - The rules :address such issues as billing practices and payment requirements (including bill format), customer service and charges for damaged or lost auxiliary equipment. Billing . The rules, as .proposed, would have required cable companies to file with the Commission copies of all promotional and general information materials which were distributed by the cable company to subscribers. Most cable companies that-filed.comments oppose this. requirement citing, among. other things, the voluminous material that would be included within the.scope of the rule as well as the. cost to the companies for providing, and the presumed costs to the Commission for reviewing and compiling, such material. We::,are, •persuaded, by.. the...comments that it .-.is ; not;,;necessary __to require "the filing .'of such material with.• us _.and, :.we ;;have, modified the.rule.to.require only'that the materials be filed,by a cable company..; _in ,_.its local -. off i__ce to. be made ,._.available °;,therein . for inspectior a period of two years -sub on•,fsubsequent to „filing'. • Section 590.63(a) of the proposed rules included a requirement that each service received by the subscriber be itemized on the bill. Certain cable television companies contend that existing software or billing systems -cannot 'readily accommodate itemized billing. One company suggested that itemization would create more confusion. Still other companies did. not contest this proposal and the Cable Television Association of New York (CTANY) observed that 'the rule should not be misinterpreted to require the attribution of .charges for equipment when, in fact, there . is no separate or direct charge for the equipment. In this regard, we note that the fact that certain equipment is required to receive certain services does not mean that a charge must necessarily be attributable to the equipment. As adopted, the•rule requires the itemization of each category of se.rvice.rather than each service. This change is intended'to eliminate any confusion about the scope of the rule. It is not necessary to list each and every. channel or cable network received by the subscriber. We have also added to the rule the fundamental components of any bill including the billing period and' amount of current billing, past due balances and credits, if any. We note here that Commission records show that approximately one- third of all complaints to cable companies and the Commission are billing disputes, many of which involve a lack of understanding as to'the precise services involved. It is also our experience that' since Congress approved rate deregulation, service' packages and program offerings have changed with greater frequency. Section 590.63(b)., as proposed, required that each bill contain a due date which is not sooner than fifteen days from -2 - receipt of the bill. Various cable companies objected to the standard including the difficulty of measuring the time period because of the uncertainty of the date the bill is received by a subscriber. We have modified this rule such that the fifteen day period shall be measured from the date a bill .is mailed by the company. Of course, cable companies will be expected to maintain complete and accurate records of the date all subscriber bills are mailed. In Section 590.63(d), it was proposed that a late charge not be imposed unless payment was not made for a period of thirty days after mailing of the bill. Various governmental entities including the Town of Greenburgh and the Borough of Manhattan urged a longer period for timely payment particularly in view of the fact that the billing may occur on or before the first of the month for which service is to be provided. We have modified this section to extend from thirty to forty-five days the period for payment without liability for a late charge. Our proposal at Section 590.67(a) to extend from thirty days to forty-five days the minimum time for discontinuance of service for non-payment remains unchanged. However, we have modified the language to include reference to payment coupons in accordance with the suggesion of the Office of Business Permits and Regulatory Assistance (OBPRA). Section 590.63(f), as proposed, included limitations upon the imposition of downgrade charges. Certain companies and CTANY suggested that downgrade ,charges may be within the rates deregulated in the Cable Communications Policy Act of 1984. Other parties suggested that it was unfair to limit downgrade charges to less than cost inasmuch as it would require the subsidization of such charges by all subscribers. We have modified Section 590.63(f) to remove an absolute dollar limitation on the amount of the charge in favor of the company's cost for implementing a downgrade. At the same time, we have expanded the class of subscribers against whom a downgrade charge may not be imposed to include any subscriber requesting a termination of all cable television service. We have also changed the rule to require specific, advance notification of downgrade charges as a condition to the imposition of same where permitted under the rule. Finally, we have modified the rule to include at Section 590.61(h) a definition of downgrade charge. Customer Service At Section 590.63(f), we proposed a rule which would have required cable television companies to "conduct routine maintenance" at times which would cause the least amount of disruption to subscribers. Staten Island Cable, among others, commented that the rule concerningroutine maintenance would deny the flexibility needed by a cable operator. To provide some -3 - measure of- flexibility, the rule was revised to require a reasonable effort on the part of cable companies to notify subscribers in writing Q.. electronically of scheduled outages. This revision also is responsive to comments by.OBPRA which suggested. that "notice. . .due to routine maintenance" be changed to "notice due to. . .scheduled maintenance." We have maintained the language in the, proposed rule which would require cable companies' to notify the Commission and affected municipalities in writing of any scheduled service outages due to system upgrades or rebuilds. We believe that these types of outages can be determined sufficiently in advance to provide notice and that such notice will assist local officials and Commission staff in responding to subscriber inquiries. -Section. 596.8(c) of the proposed ruleaddressed. matters pertaining to customer service calls_. Our concern here is based upon the frustration experienced by subscribers when. a cable company fails to fulfill a scheduled appointment. Specifically, we proposed that cable companies specify the part of the day, i.e., morning, afternoon or evening hours, the' service call would be made. We further proposed that a cable company make a reasonable. effort to inform the subscriber in the event such an appointment could not be kept timely. The Town of Greenburgh:commented on this issue in which it asserted that stronger, more specific language than "reasonable' effort. ." be required when an appointment cannot be kept. Upon further review, we are persauded that -a greater incentive for the timely fulfillment of service calls is warranted. Accordingly, wehave modified the proposed rule to preclude the imposition of a charge for any service call which is not made within the appointed time frame. Auxiliary Equipment At Section 590.73(b), we proposed a rule which would have limited the liability of a subscriber for lost, stolen or damaged auxiliary equipment, such as channel converters, to the net book value of the. equipment. This proposal generated many comments from cable television companies. The comments of TKR Cable, which are generally representative of other comments, expressed a special concern that equipment such as a channel converter, if not returned, can be used for the unlawful receipt or theft of cable television at other locations. The company suggests that the. ability to impose significant charges is necessary to provide an incentive for subscribers to take care of, and return, the equipment. CTANY suggests that the "proper and valid valuation of descrambling security equipment is not measured by hardware considerations. . .[and that] the loss. . .can only be measured by its theft potential." Accordingly, CTANY asserts that the rule as proposed is "grossly unfair and would encourage misuse and theft" and that the Commission should defer adoption of a rule pending further inquiry into the matter. We are mindful that certain converters or descramblers can be employed unlawfully to receive -4- cable television service. On the other hand, it is also true that the inability of a subscriber to return equipment may be attributable to causes beyond the control of the . subscriber such as theft or destruction by fire and that any policy, which includes an element of deterrence or "compensation" for more than the cost. of the equipment as such, should be fairly and consistently' applied. For,'"now,'-"we have` determined = to-,r modify _the proposal by eliminating1an-absolute `maximum ainount that can :be-`'imposed upon ` a subscr=iber><who is:-"unable' ' to -return `auxiliary.'equipment. The rule we are== adopting -requires -any company =which. attempts :to collect -a charge for a :lost - "converter •to notify the subscriber... of. an opportunity_ to appeal the company's decision with Commission staff within thirty days - of receipt of notice of •-said :' charge. -; The Commission will review the matter in accordance with the procedures for-; review-`of,fb_illing`°complaints'. If no `appeal is filed :by the subscriber'.`=ar - cable—company can proceed with its collection procedures. Of course, a cable television subscriber can still be required to exercisereasonab1e care -in the use. and possession of the company's "auxiliary equipment. APPENDIX C Rules pursuant to Section 824-a of the Executive Law (Ch. 9, Laws of 1990) 590.69A Notice requirements for rates, charges, programming and subscriber's rights. (a) Rates and charges. Every cable television company shall provide notice of any changes in rates or charges for any cable television service. The notice shall be in writing and shall specify the service or services affected, the new rate or charge, including the amount of the increase and the change and the effective date thereof. Notice shall be provided at least ten (10) days prior to the effective date of any changes in rates or charges to the subscribers affected thereby, the Commission and the franchising municipality. The notice to subscribers shall inform subscribers of the opportunity to request a downgrade or termination of service within thirty (30) days of the receipt of the notice without any charge therefor and without any liability for payment of any higher rate or charge. (b) Significant programming change. (1) Definitions. For purposes of this section (i) a "significant programming change" shall mean the removal or alteration of recurring programming which materially changes the quality or level of programming on a network; provided, however, such terms shall not include deletions of programs mandated by the regulations of the Federal Communications Commission, nor shall it include deletions of programs that are distributed by the cable television company in lieu of such programs deleted pursuant to suchregulations of the Federal Communications Commission; (ii) a "network" shall mean a group of programs distributed, packaged, promoted or sold to subscribers as the offering of a single entity, including but not limited to, a channel or station; and (iii) "service tier" shall mean a category of cable television services or other services provided by a cable television company and for which a rate or fee is charged by the cable television company, including, but not limited to, basic services, premium networks or services, recurring pay-per-view services and other categories of cable services for which there are additional charges. (2) Notice required. Every cable television company shall provide notice of a significant programming change to the Commission and to subscribers affected thereby. (3) Notice to commission. Notice shall be provided to the Commission no later than the later occurring of forty-five (45) days prior to the effective date of the change or within five (5) business days of the date upon which the cable television company first knows of such change. The notice shall specify the recurring programming affected by the change, whether such recurring programming was, or will be, distributed as part of basic cable service or some other service tier immediately prior to the change and the effective date of the change.. (4) Notice to subscribers. Notice shall be provided to subscribers who are receiving services affected by such change in writing no later than the later occurring of thirty (30) days prior to the effective date of such change or within thirty (30) days of the date upon which the cable television company first knows of such change and by written on-screen visual message prominently displayed on the affected television program channel dr channels, and on the program listing channel of the cable television system, if one is provided; at least once each hour for no less than a thirty (30) day period. (5) Form and content of notice to subscribers. Notice shall be directed to each affected subscriber as follows: (i) by the mailing of a separate written notice to the subscriber's billing address of record; or (ii) by a written notation printed on the subscriber's regular billing statement; or (iii) by a written notice accompanying the subscriber's regular billing statement. Such notice shall specify the recurring programming affected by the change and the effective date of the change. Such notice shall also inform subscribers of the opportunity to downgrade or terminate service within forty-five (45) days of the receipt of the notice without charge for such termination or downgrade. (c) Network change. (1) Definitions. For purposes of this subdivision, (i) a "network change" shall mean the removal of a network from a service tier whether or not added to another tier or a substantial alteration of the character of a network by a cable television company or an affiliate it controls except that a "network change" shall not include the removal of a network from a service tier within thirty-one (31) days of the date upon which such network was added to such service tier for promotional purposes, where such promotion was clearly disclosed to subscribers; (ii) the "character of a network" shall be determined by reference to the nature, mix and quantity of programming provided on the network and whether such programming is supported by commercial sponsorship or other means. (The character of a network which contains a uniform programming format, e.g., an all -shopping channel, an all- weather channel, an all -sports channel, etc., shall be considered distinct from the character of a network which includes various categories of programming. The character of a network shall also include consideration of whether a network provides programming twenty-four (24) hours per day or some lesser period of time); and (iii) "promotes repeatedly and in a significant manner" shall mean a promotion of the availability of a particular network on basic cable service which is designed to encourage the public to subscribe to basic cable service to receive such network and which is conducted by use of multiple media or by the multiple use of a single mediu m. (2) Notice required. Every cable television company shall provide notice of a network change to the Commission and to the subscribers affected thereby. (3) Notice to commission. Notice shall be provided to the Commission no later than the later occurring of forty-five (45) days prior to the effective date of the change or within five (5) business days of the date upon which the cable television company first knows of such change. Notice shall specify the network affected by the change, whether such network was, or will be, distributed as part of the basic cable service or some other service tier immediately prior to the change and the effective date of the change.. If the network change relates to the basic service tier, the notice to the Commission shall also state whether said network has been repeatedly promoted by -3 - the cable television company as available on its basic cable service during the six months immediately preceding the date of the change and, if the network has been so promoted during such period of time, the notice shall also include the specific date upon which such promotion was concluded and the number of subscribers who commenced their subscription to basic cable service during the ninety (90) days immediately before and after the last day of promotion. If the network change relates to a network that is being deleted from basic cable service and will not be available on any other service tier, the notice shall state whether said network continues to be reasonably available to the cable television company. For purposes of this paragraph the term "continues to be reasonably available to the cable television company" shall mean a network, including a broadcast television station, that has been lawfully distributed by the cable television company to its subscribers as part of its basic cable service and without a substantial alteration of the character of the network remains available to the cable television company on the same terms and conditions as before or remains available to the cable television company pursuant to terms and conditions as previously agreed. A network shall also be considered to continue .to be reasonably available to a cable television company when, notwithstanding a modification of the terms and conditions underwhich it may be distributed or a change in the character of the network, the Commission so determines in writing based upon consideration of (i) whether the cable television company is required to offer commercial leased access and the terms and conditions of such leased access, if any, (ii) the character of the network relative to the character of other networks distributed on the system and the manner of distribution of such other network; (iii) the terms and conditions pursuant to which the network is available to the cable television company relative to the terms and conditions applicable to the distribution by the cable television company of other networks as part of. basic cable television service; (iv) the extent to which the network is currently being distributed by other cable television companies in the state as part of basic cable television service on terms and conditions similar to the terms and conditions at issue; and (v) the extent to which the cable television company may have an ownership interest in any network distributed on the system which is similar in character to the terminated network. (4) Notice to subscribers. Every cable television company shall provide notice of a network change to each subscriber affected thereby. Such notice shall be provided to subscribers who are receiving services affected by any such change in writing no later than the later occurring of thirty (30) days prior to the effective date of any change or within thirty (30) days of the date upon which the cable television company first knows of such change and by written on-screen visual message prominently displayed on the affected television programming channel or channels, and on the program listing channel of the cable television system, if one is provided, at least once each hour for no less than a thirty (30) day period. (5) Form and content of notice to subscribers. Notice shall be directed to each affected subscriber as follows: (i) by the mailing of a separate written notice to the subscriber's billing address of record; or (ii) by a written notation printed on the subscriber's regular billing statement; or (iii) by a written notice accompanying the subscriber's regular billing statement. Such notice shall specify the network affected by the change and the effective date of the change and shall inform subscribers of the -4 - opportunity to downgrade or terminate service within forty-five (45) days of the receipt of the notice without any charge for such termination or downgrade. (6) Additional provisions for network change affecting a premium service tier. If the notice describes a network change that affects a network that was being distributed as part of a premium service tier immediately prior to the change such notice shall also inform subscribers who have incurred installation, upgrade or other one-time charges relating to such premium service tier within six months prior to the effective date of the change, or who have prepaid any monthly service charges for said premium service tier, that they may elect to downgrade or terminate service within thirty (30) days of the receipt of such notice and obtain a rebate of any such charges. (7) Additional provisions for network change affecting basic cable service. If the notice describes a network change which affects a network that was being distributed as part of basic cable service immediately prior to the change, and the network was repeatedly promoted by the cable television company and in a significant manner as available as part of basic cable service at any time during the six months immediately preceding the date of the change, such notice, or a second notice given in the same manner as the first notice within thirty (30) days of the first notice, shall contain additional information as follows: (i) Removal of network to prerniun2 tier. If a network is moved from basic cable service to a more expensive tier, such notice shall inform subscribers who commenced their subscriptions to basic cable service during the ninety (90) day period immediately before or after the last day of the promotion, of the opportunity, -within thirty, (30) days of. receipt. of the notice either (a) to upgrade to the more expensive service tier which includes the network at no charge and to receive said service tier for up tosix months also at no charge; or (b) to terminate service and receive a refund of all installation, upgrade or other one-time charges paid during the six months prior to the change. (ii) Removal of network from system. If a network (a) is deleted from basic cable service, (b) was a substantial inducement to a significant number of subscribers, and (c) continues to be reasonably available to the cable television company, such notice shall inform subscribers who commenced their subscriptions to basic cable service during the ninety (90) day period immediately before or after the last day of the promotion, of the opportunity, within thirty (30) days of receipt of the notice, either (aa) to terminate service and receive a refund of all installation, upgrade or other one-time charges paid during the six months prior to the change, or (bb) to continue service and receive a credit in the amount specified in the notice which credit shall be for a portion of the monthly rate for basic cable service for each month or portion thereof the network is not available on the system during the six month period commencing with .the Last day of the promotion, or (cc) to continue service and petition the commission for determination of the amount of an appropriate credit for a portion of the monthly rate for basic cable service for each month or portion thereof the network is not available on the system during the six month period commencing with the last day of the promotion. (d) Pay per view programming. Subdivision (a) - (c) shall not apply to pay per view programming. -5- (e) Other subscriber rights. (1) Notice required. Every cable television company shall provide notice concerning the programming and other services offered on the cable television system and the rates and charges therefor.. (2) Form and content of notice. (i) Notice shall be provided (a) to new subscribers at the time of installation; (b) to any subscriber who requests a change in service; (c) to all subscribers at least semi-annually; provided, however, that any cable television company that bills subscribers only by coupon book and does not provide regular mailings to subscribers at least quarterly may provide such notice to subscribers on an annual basis; and (d) to any person who requests such information. (ii) _ Notice shall be in writing and (a) shall be provided immediately where a request is made in person or (b) shall be provided by first class mail sent within ten (10) business days of the date of any request made by telephone or in writing. (iii) The notice shall contain a description, materially accurate as of the first day of the previous month, of all service tiers and the networks provided thereon and the rates and charges therefor and any other services offered to subscribers and the rates and charges for such other services. The notice shall also include a statement of significant rights accorded to subscribers pursuant to Section 824-a of the Executive Law and the regulations promulgated by the commission. Such statement shall be in a form as approved by the commission. In addition, notice to new subscribers shall include a copy of, any notice which has been sent to current subscribers pursuant to Subdivisions (a) - (c) of this section within the previous sixty (60) days. (f) . Amendments to existing rules. .(1). Section 590.61(h) of the commission's rules is amended to read: 590.61 Definitions. (h) Downgrade charge shall mean a charge imposed upon a subscriber for implementing a request [for a reduction of services in the amount or level of cable television services.] by the subscriber for a change in service to a less expensive tier than the tier currently subscribed to. (2) Sections 590.62(b) and (c) of the Commission's rules are amended to read: 590.62 Notification of billing practices. (b) Notice shall be given as follows: (3) to all subscribers at least [annually.] semi-annually. -6- (c) Every cable television company (i) shall file copies of its billing practices and payment requirements with the commission and (ii) shall maintain on file in its local office for public, inspection for a period of two years copies of its billing practices and payment requirements and [promotional and general informational materials (including monthly bill stuffers).] all advertisements. lists or other notifications regarding programming sent to or made available to the public. For purposes of this subdivision. "advertisements, lists or other notifications" shall mean any commercial messages which a cable television company originates and causes to he disseminated to the public or its subscribers by means of radio, television or print, or pursuant to a printed directive, which relate to the service tiers, networks or programming offered by said company to its subscribers and the rates and charges therefor, except that such terms shall not include any commercial message concerning a network or programming which originates with the network or programmer independent of the cable television company. (3) Section 590.63(f) of the Commission's rules is amended to read: 590.63 Bill format, late charges, collection charges and downgrade charges. (f) A.cable_television company may impose a [charge for downgrading.. a subscriber's services provided (i) that such charge does not exceed the cost thereof to the' company and (ii) that subscribers have been notified in writing (print no smaller than ten point) of such charges. In no event may a downgrade charge be imposed upon a subscriber, who is terminating service completely or who has maintained the same level of cable television services for six (6) continuous months immediately prior to a request for reduction in services. This section shall not apply to pay-per-view programming.] downgrade • charge upon the conditions and in the circumstances as follows: (1) subscribers have been notified of such charge in writing in at least 10 point type; (2) the charge does not exceed .the cost of the downgrade to the company; (3) the downgrade is from a level of service which the subscriber has not maintained continuously for six (6) months immediately preceding the date of the downgrade; (4) the downgrade was not requested by a subscriber affected by a "significant programming change" or a "network change" within forty-five (45) days of the receipt by the subscriber of the notice required by Section 590.69A(b)(4) and (c)(4). -7- (g) This section shall be effective immediately upon filing with the Secretary of State and shall supersede any Commission rule inconsistent herewith including particularly, but without limitation, Section 590.69. May 18, 1990 TO: Cable Systems Operators, Municipal Officials and Interested Parties FROM: The New York State Commission On Cable Television The Commission proposes, in Docket No. 90400,. to amend the primary service area threshold in Part 595.5(a) (1) (iii) and Part 595.5(b)(2) of its Rules. The threshold is the minimum number of dwelling units per mile of aerial cable plant, above which level companies are required to provide service at normal rates and charges. The threshold is currently set at 35 dwelling units per aerial mile, which number was adopted in 1982 based on data for the period 1979-1980. Our staff has analyzed the latest financial and other available- data (for the period 1988'-1989). Based- upon this • review, staff proposes that the primary service area benchmark be set at twenty (20) dwelling units per linear mile of aerial .cable. The basis for this new threshold is staff's finding that this is the minimum level at which it is economically feasible for the- average cable operator to offer cable service to residents in an area contiguous to existing plant while'allowing for a 10 year amortization of debt. •Under the proposed rule change: 1. All subscribers requesting service in an area containing at least twenty (20) dwelling units per linear mile of aerial cable shall receive service, at normal rates and charges, and 2. All residents located in an area with less than twenty (20) dwelling units per mile shall be provided cable television service upon their request if they contribute to the cost of construction (SC), which shall be determined by •application of the formula included in the rules or by a formula or policy of the cable operator, provided, however, that said formula or policy is no less favorable to the subscriber than that set forth in the Commission's rules. Page 2 May 18, 1990 All other provisions of Part 595.5 of the Rules would remain unchanged and continue in effect. The rule changes being considered are not directly applicable 'to exempt companies. Before issuing a Notice of Proposed Rulemaking, the Commission asked staff to solicit comments upon this proposal. Therefore, we ask you torespond to this proposal. Your responses or comments should be limited to the proposed rule change. In so doing, please include information concerning the following: a description -of areas cabled and not cabled; the amount and number of line extensions built in 1989; technologies used; construction and debt costs; depreciation and amortization periods; and other relevant information to support your position. Small businesses in particular are asked to comment upon whether there are alternative approaches, for ensuring the extension of cable. television services. to-.-th.e •maximum .extent practicable in a manner that is economically feasible. All comments should be submitted on or before June 15, 1990. • PROPOSED AMENDMENT PARTS 595.5 595.5 Requirements for construction of cable television plant and provision of cable television services. a) Definitions. (1) CFrimary service area shall include each of the following within the franchised area: (i) thoseareas where cable television plant has built without a contribution -in -aid -of -construction by subscribers; (ii) those areas where the cable television company is obligated by the terms of its franchise to provide cable television service without a contribution -in - aid -of -construction by subscribers; (iii) any area adjoining an area described in subparagraph (i) or (ii) of this paragraph and which contains dwelling units at a minimum rate:of 20 [35] dwelling units per -linear mile of aerial cable; (iv) any area adjoining an area described in subparagraph (i) and (ii) of this paragraph and which contains at least the same number of dwelling units per linear mile of aerial cable as is the average number of dwelling units per linear mile of cable in areas described in subparagraphs (i) and (ii) of this paragraph. The average is to be determined by dividing the sum of the dwelling units in areas described in subparagraphs (i) and (ii) of this paragraph by the number of linear miles of cable in the same areas. (2) ne extension_ areaashall be any area within the franchised area which is not the primary service area. (b) Where a cable television franchise is awarded, renewed or amended after October 1, 1982 the franchise will be confirmed or the amendment will cirbe approvedby the commission oriT rit the franchise contains the following additional minimum franchise standards: (1). That, within five years after receipt of all necessaryoperating -2 - authorizations, cable television service will be offered throughout the authorized area to all subscribers requesting service in any primary service area. (2) That cable television service will not be denied to potential subscribers located in line extension areas who are willing to contribute to the cost of construction in accordance with the following formula: C - CA = SC LE • P. C equals the cost of construction of new plant; CA equals the average cost of construction per mile in the primary service area; P equals the lower of 20 [35] or the average number of dwelling units per linear mile of cable in areas described in subparagraphs(a) (1) (i) and (ii) of this section; LE equals the number of dwelling units requesting service in the line extension area; and SC equals subscriber contribution -in - aid -of -construction in the line extension area. (i) Whenever a potential subscriber located in a line extension area requests service, the cable television company shall, within 30 days of the request, conduct a survey to determine the number of potential subscribers located in the line extension area, and shall inform each of the potential subscribers of the contribution -in -aid - of -construction that may be charged. The cable television company may require pre -payment of the contribution -in -aid -of -construction. The cable television company shall apply for pole attachment agreements within 30 days of its receipt of the contribution -in -aid -of -construction. Cable television services must be made available to those who made a contribution -in -aid -of -construction within 90 days from the receipt of pole attachment agreements by the cable television company. -3 - (ii) The contribution -in -aid -of - construction shall be in addition to the installation rate set forth in the franchise. (iii) During a five-year period commencing at the completion of a particular line extension, pro rata refund shall be paid to previous subscribers as new subscribers are added to the particular line extension; the amount of the refund, if any, shall be determined by application of the formula annually. The refunds shall be paid annually to subscribers, or former subscribers, entitled to receive them. The company shall not be required to provide refunds to any previous subscriber otherwise entitled to a refund, who is no longer at the same address and who has not informed the. company of the subscriber's address.. (3) That cable television service will be provided to any subscriber who demands service and who is located within 150 feet of aerial feeder cable, and that the charge for the installation for any subscriber so situated will not be in excess of the installation charge specified in the franchise. (4) Nothing in paragraph (1) of this subdivision shall be construed to preclude: (i) the provision of cable television services by the franchisee in a line extension area without assessing a contribution -in -aid -of - construction; or (ii) the inclusion in a cable television franchise of a provision establishing a primary service area which includes at least all of those areas which are in the primary service area as defined in subdivision (a) of this section. (5) Nothing in paragraph (2) of this subdivision shall be construed to preclude: -4- (i) the discounting or the waiver of the maximum contribution -in - aid -of -construction charge a cable television company can charge a subscriber pursuant to paragraph (2) of this subdivision; or (ii) the inclusion of a provision in a cable television franchise establishing a formula to be used to determine the contribution -in - aid -of -construction charge, which formula is different than the formula set forth in paragraph (2) of this subdivision, provided that the formula included in the franchise does not require payment by the subscriber in a line extension area of a higher contribution -in -aid -of - construction charge than would result from the use of the formula set forth in paragraph (2) of this subdivision. (c) All cable television companies operating in the State of New York shall make cable television service available to all potential subscribers requesting service who are located in a primary service area as defined in paragraph (a)(1) of this section, and shall make services available in line extension areas as defined in paragraph (a)(2) of this section atcharges which may not' exceed those provided for in paragraph (b)(2) of this section within the following schedule of compliance: (1) prior to January 1, 1984 in any franchise area for which the original certificate of confirmation of the franchise was granted by this commission prior to January 1, 1979; (2) within five years from the date the certificate of confirmation was granted by this commission, in any franchise area for which the original certificate of confirmation of the franchise was granted by this commission after January 1, 1979. (d) The provisions of this section may be waived by the commission if the commission determines that compliance with the section would not be possible within the limitations of economic feasibility. 1. TV CABLE COMMISSION MEETING Tuesday, July 10, 1990 7:30 P.M. Third Floor Conference Room - City Hall Call To Order AGENDA 2. Approval of Minutes 3. Chairman's Report 4. Public Comments 5. ACC Report 6. Access Advisory Board Report - P. Hess 7. Old Business a. Procedures regarding Senior Citizen's Discount (See Attachment) b. Policy on Political Endorsements over Public Access (Richard Herskowitz) 8. New Business a. Change in policies regarding Cable 13's City meeting coverage (See Lauren Stefanelli's letter attached) b. New York State Cable Commission rule changes (Information item - Commission documents attached) 9. Adjournment IF YOU ARE UNABLE TO ATTEND THE MEETING, PLEASE CALL RICHARD HERSKOWITZ AT (607) 255-3522. WD/jcb Enclosures 1) Applicant will pick up application at City Hall, the Senior Citizen's Center, or Tompkins County Council for the Aging. 2) Designated representative will examine application and documents provided by applicant for accuracy and completeness, and will sign the form in the appropriate location. No copies of the documentation shall be made unless the examiner has a question about the documentation or the form. Date of birth is requested to determine date discount should commence, retroactive to March, 1989 or the first date of service, whichever is later. 3) Chamberlain's Office will collect applications and generate a list to be sent to ACC. This list will include name, service address and date of birth, and will be certified by the City Chamberlain or the Office Manager. Copies of the applications will accompany the list to ACC. Originals will be maintained by the City. 4) RSVP volunteers will be available during—the initial sign up period to assist applicants and to examine applications. Hours when they will be available (currently suggested that they would be available at Senior Citizen's Center) will"be announced. 5) Senior Citizen's Center has agreed to include information regarding avail- ability of applications on their Sunday morning radio broadcast and in their newsletter. OFFICE USE ONLY Examined by Date By City APPLICATION FOR SENIOR CITIZENS DISCOUNT FOR TV CABLE SERVICES 1) Names of persons) requesting discount (Your name as it appears on the billing from ACC) (please print) 2) Property address where service is provided. 3) Mailing address (if different from above) 4) Proof of age (one of the following) Birth Certificate Baptismal Certificate 5) Proof of residency (one of following) Telephone Listing Copy of Utility Bill DATE OF BIRTH Other (identify) (Driver's License) (Medicare Card) Lease (or rental receipt) Other (identify) I certify that I am 65 years of age or older, that I have a total household income of $15,000 or less from taxable and non-taxable sources. .I understand that failure to provide proof if requested or any deliberate false statement on this application may be grounds for disqualification from further discounts. SIGNATURE DATE -TV CABLE COMMISSION MEETING Tuesday, June 12, 1990 7:30 P.M. Third Floor Conference Room - City Hall Chug Gu.+a-ri nn AGENDA 1. Call To Order 2. Approval of Minutes 3. Chairman's Report 4. Public Comments 5. ACC Report 6. Access Advisory Board Report --P. Hess 7. Old Business a. Procedures regarding Senior Citizen's Discount (With Debra Parsons, City Chamberlain) b. Policy on Political Endorsements over Public Access (Richard Herskowitz) 8. New Business a. New York State Cable Commission proposed revision of primary service area threshold. 9. Adjournment IF YOU ARE UNABLE TO ATTEND THE MEETING, PLEASE CALL BILL DEMO (607) 844-8211, EXTENSION 354. CC: Debra Parsons WD/j cb Enclosures -TV CABLE COMMISSION MEETING Tuesday, May 15, 1990 7:30 P.M. Third Floor Conference Room - City Hall �i% csv t j Git it AGENDA 1. Call To Order 2. Approval of Minutes 3. Chairman's Report 4. Public Comments 5. ACC Report 6. Old Business a. Procedures regarding Senior Citizen's Discount (With Debra Parsons, City Chamberlain) b. Policy on Political Endorsements over Public Access c. Complaint Response Letters d. Access Advisory Board Resolution Regarding Equipment Costs 7. New Business 8. Adjournment IF YOU ARE UNABLE TO ATTEND THE MEETING, PLEASE CALL BILL DEMO (607) 844-8211, EXTENSION 354. CC: Debra Parsons WD/jcb 5-7-90 CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF TELEPHONE: 272-1713 CITY CLERK TV CABLE COMMISSION APRIL 10, 1990 3RD FLOOR CONFERENCE ROOM 7:30 P.M. AGENDA 1. CaII to Order 2. Approval of Minutes 3. Chairman Report 4. Public Comment 5. ACC Report 6. Public Comment 7. Old Business a. Procedure for Senior Citizen discount b. Policy on Political Endorsements on Public Access 8. New Business - a. Access Advisory Board Vacancy 9. Adjournment If unable to attend the meeting please contact Bill Demo at 844-8211 extention 354. BD/cjh "An Equal Opportunity Employer with an 'Affirmative Action Program" CODE 607 0:' -TV CABLE. COMMISSION MEETING Tuesday, March 13, 1990 7:30 P.M. Common Council Chambers - City Hall AGENDA 1. Call To Order 2. Approval of Minutes 3. Chairman's Report 4. Public Comments 5. ACC Report 6. Public Comments 7. Old Business a. Senior Citizen's Discount b. Policy on Political Endorsements over Public Access 8. New Business 9. Adjournment WD/j cb 3-6-90 TV CABLE COMMISSION MEETING Tuesday, February 13., 1990 7:30 P.M. Common Council Chambers - City Hall AGENDA 1. Call To Order 2. Approval of Minutes 3. Chairman's Report 4. Public Comments 5. ACC Report 6. Public Comments i24 `ct �/71co 7. Old Business a. Selection of ACC Board Members b. Senior Citizen's Discount c. Policy on Political Endorsements over Public Access d. OP ED Piece 8. New Business 9. Adjournment Please, note change in meeting date! (City Hall closed on 2/12/90) Call Bill Demo at 844-8211, ext. 354 if you will be unable to attend meeting. WD/cp 2/6/90 TV CABLE COMMISSION MEETING TUESDAY, JANUARY 9, 1990 7:30 P.M. COMMON COUNCIL CHAMBERS AGENDA 1. CaII the Meeting to Order 2. Approval of Minutes 3. Chairman's Report and Correspondence 4. Public Comments 5. ACC Report 6. Public Comments 7. Access Advisory Board Report 8. Old Business - Senior Citizen's Discount 9. New Business - Election of Chairman and Vice -Chairman 10. Adjournment CP/br 1/3/90