HomeMy WebLinkAboutConsumer Rights Regarding Cable Television Servicequent irl payment for cable television ser-
vice, and
(2) At least five (5) days have elapsed
after written notice of disconnect has been
personally served upon the subscriber or
(3) At least eight (8) days have elapsed
after mailing written notice of disconnect to
the subscriber; or
(4) At least five (5) days have elapsed
after subscriber has either signed for or
refused a notice of disconnect.
The notice of disconnection must clearly
state the amount owed, the total amount
required to be paid to avoid disconnection
and the date and place where such payment
must be made.
Disconnection of service for nonpayment
may not occur on a Sunday, .public holiday
or a day when the local office of the com-
pany is not open for business. Receipt of a
"bad" check by the company in response to
a notice of disconnect does not constitute
payment, and a company need not give
further notice of disconnection.
A reconnect charge may not be imposed
solely because a subscriber was previously
delinquent with his/her account.
CREDIT FOR SERVICE
OUTAGE
Every cable television company shall give
credit for every service outage not caused
by a subscriber in excess of 24 continuous
hours to any subscriber who applies for it
either by written or oral notice. The 24-hour
period shall commence at the time the cable
television company first becomes aware of
the outage.
,The credit must be pro -rated by,rnultiply-
ing the applicable monthly service rate by a
fraction whose numerator equals the num-
ber of days (or portion thereof) of the outage
and whose denominator equals the number
of days in month of outage. In no case shall
the refund be less than 24 hours credit. For
example: a service outage of three (3) days
in April would entitle the subscriber to a
refund of 3/30th's or 1/10 of the monthly bill.
The company is responsible for every
outage and must provide credit to each
affected subscriber who applies for it within
90 days of an outage.
ADVANCE BILLING
Every cable television company shall
notify its subscribers of any advance billing
options available. A subscriber, upon re-
quest, shall be given the option of paying
monthly. Use of coupon books for remit-
tance of monthly payments shall satisfy the
monthly payment option request. - If such
coupon books are used by the company, no
other bills for service are required to be sent
out by the cable television company.
COMPLAINT TELEPHONE
NUMBERS
(518) 474-2212
TOLL-FREE
1 (800) 342-3330
For the Hearing Impaired call the
COMMISSION'S TELECOMMUNICATION'S DEVICE
FOR THE DEAF (TDD)
on the Commission's Toll -Free Number
CONSUMER
RIGHTS
REGARDING
CABLE
TELEVISION
SERVICE
New York State Commission
on Cable Television
Empire State Plaza
21st Floor, Tower Building
Albany, N.Y. 12223
1-800-342-3330
518-474-2212
COMPLAINTS'
When you have a cable television problem,
...FIRST...contact your cable operator and
report the problem,...THEN...if your con-
cerns have not been resolved—contact your
local government. If that doesn't work, call
the New York State Commission on Cable
Television at 1-800-342-3330. (Capital
District call 518-474-2212) or write to:
Complaints Investigator; New York State
Commission on Cable Television, Empire
State Plaza, Tower Building, 21st Floor,
Albany, New York 12223.
Your cable television company is required
to let you know at least once a year, of its
complaints procedures. This must also be
done at the time of your initial subscription
or upon reconnection of service. Your cable
television company additionally must ad-
vise you of the fact that any unresolved
complaint may be referred to the Com-
mission.
TROUBLE CALLS
Any trouble call should be responded to
on the day it is received by the company, but
in no event shall the response be later than
the following business day. The cable
television company must maintain a toll-
free telephone number, available to all
subscribers for those who wish to obtain
information or to report a service problem.
BILLING PRACTICES
Every cable television company must
notify its subscribers, in writing of its billing
practices and payment requirements. The
notice must describe or define, as a mini-
mum: billing procedures (including pay-
ments necessary to avoid discontinuance of
service and payment due dates), late
charges, advance billing options billing
disputes and credit given for service out-
ages. This notice must be given:
(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.
Copies of the company's billing practices
and requirements must be filed with the
Commission and available at the company's
local office upon request by a subscriber.
LATE CHARGES AND
COLLECTION CHARGES
A collection charge is a fee or charge
imposed upon a subscriber by a cable
television company for its effort at collect-
ing or attempting to collect an overdue bill
by personal visits at a subscriber's home or
place of business. A late charge is a charge
which is added to a cable television sub-
scriber's account or bill for nonpayment of a
previously due account.
When permitted by the franchise, any late
charge must be itemized on the subscriber's
bill or if a coupon book is used on the notice
of delinquent payment.
A reasonable collection charge can be
added to a subscriber's bill, when a sub-
scriber pays the amount of money in arrears
in lieu of disconnection of service. Such
collection charge must be in compliance
with Commission regulations.
BILLING DISPUTES._..
Every company must allow thirty (30)
days from the date of receipt of the bill for a
subscriber to register a billing dispute
before an account may be considered
delinquent. A subscriber must remit the
undisputed portion of his/her bill and be
responsible for undisputed portions of
current and future bills pending resolution
of the dispute.
Cable television service cannot be dis-
connected solely for nonpayment of the
portion of the bill in dispute during investi-
gation of the complaint.
A subscriber must be notified of the
results of the investigation within twenty
(20) working days of filing the complaint.
If a dispute is not resolved within thirty
(30) days after it was received, the subscrib-
er may refer it to the Commission. If the
subscriber is not happy with the resolution
and does not file a complaint with the
Commission within thirty (30) days of the
company's reply, the company may initiate
service disconnection procedures as appro-
priate in accordance with Commission
rules.
DISCONNECTION
OF SERVICE
A subscriber is not considered delinquent
in payment until at least thirty (30) days after
the due date of the bill and payment has not
been received by the Company.
The procedure for service disconnection
for nonpayment of bills must include the
following:
(1) Subscriber must be in fact be delin-
L TY OF ITHA A
1OB EAST GREEN STREET
ITHACA, NEW YORK 14850
OFFICE OF
MAYOR
MEMO TO: Raymond Schlather
Robert Fletcher ;
t) :..
FROM: Mayor John C.Gutenberger
DATE: March 24, 1986
SUBJECT: Notice of P5)osed Rulemaking - Docket No. 90308 -State of New York
Commission on Cable Televion
Attached hereto please find the above entitled Notice foy'Your attention.
ATTACH.
CC: Clerk's Office
"An Equal Oppnrbmity Employer with nn Affirmative Action Pent not"
;1"._ IV i) MA.V) 2, 0 19g6
86-023
STATE OF NEW YORK
COMMISSION ON CABLE TELEVISION
In the Matter of
The Rules and Regulations of the Commission )
on Cable Television, 9 NYCRR Subtitle R ) DOCKET NO. 90308
Sections 590.70, 590.71 and 590.72 -- )
Proceeding to adopt procedures for the )
implementation of the State Environmental )
Quality Review Act )
NOTICE OF PROPOSED RULEMAKING
(Issued:
March 13, 1986 )
NOTICE is hereby given that the Commission is considering
adopting 9 NYCRR Sections 590.70, 590.71 and 590.72. These
regulations implement the State Environmental Quality Review Act
(SEQRA) (Article 8 of the Environmental Conservation Law),
promulgated by the Commissioner of Environmental Conservation,
codified as 6 NYCRR Part 617. Since the Commission is obliged to
follow these regulations, the proposed rules supplement Part 617
in a manner consistent with this Commission's jurisdiction and
procedures. The proposed Section 590.70 sets forth the purpose of
these regulations and the proposed Section 590.71 classifies types
of actions. Proposed Section 590.72 establishes agency procedures
by which this agency will review applications for environmental
impact. After review of comments and incorporation of any
necessary changes, the new sections are proposed to become
effective immediately.
Data, views and arguments may be submitted in writing to
William Huff, Administrative Officer, Commission on Cable
Television, Corning Tower, 21st Floor, Empire State Plaza, Albany,
New York 12223 by April 25, 1986. They may also be presented at a
hearing to be held pursuant to Section 8-0113(3) of the
Environmental Conservation Law (the time and place of which will
be announced in a Notice of Hearing to be issued subsequently).
Commissioners Participating: William B. Finneran, Chairman; John
A. Gussow, Brian A. Luddy, Theodore E. Mulford, Commisisioners.
Part 590
Implementation of the State Environmental Quality Review Act
(Statutory Authority: Environmental Conservation Law, Section
8-0113(3))
Sec.
590.70 Purpose
590.71 Types of Actions
590.72 Procedure
Section 590.70 Purpose. This part sets forth procedures
in addition to those contained in 6 NYCRR Part 617, which are
necessary for the Commission's implementation of the State
Environmental Quality Review Act. The terms used in this part
have the meanings given them in 6 NYCRR Section 617.2, unless the
context requires otherwise.
Section 590.71 Types of Actions. (a) Type I actions
(which are more likely to require the preparation of Environmental
Impact Statements than those unlisted actions) are listed in 6
NYCRR Section 617.12. Type II actions (which have been determined
not to have a significant, adverse effect on the environment) are
listed in 6 NYCRR Section 617.13 and in the following subdivisions.
Neither new programs nor major changes in priorities with respect
to policies, regulations and procedures are included. (b) The
'adoption of policies, regulations and procedures constitutes the
undertaking of a Type II action if it relates to:
(1) routine administation and management of the
_Commission's functions, including, but not limited to, rules
establishing procedures for the orderly conduct of business before
the Commission;
(2) practices by cable companies concerning
administration and management of cable company functions,
including, but not limited to, rules relating to:
(i) cable company reports;
(ii) the uniform system of accounts;
(iii) transfers of assets and/or control;
(3) practices by cable companies concerning customer
relations, such as, but not limited to, rules governing:
(i) technical standards and requirements;
(ii) complaint procedures;
-2 -
(iii) billing practices;
(iv) limitation of liability; and
(v) landlord -tenant relationships;
(4) activities by cable companies concerning testing,
inspection, repair and maintenance of existing facilities;
(5) safety measures for design, testing, operation and
maintenance of cable facilities, including rules governing the
reporting of signal levels and leakage.
(c) Construction of cable facilities which is limited to
installations on existing utility facilities is a Type II action,
unless such construction is a Type I action as defined in 6 NYCRR
Section 617.12.
Section 590.72 Procedure.
(a) Each application for a certificate of confirmation
should be accompanied by a report of the environmental impact of
the proposed approval. Such report shall be in the form set forth
in 6 NYCRR 617.19.
(b) If the Commission directs the preparation of an
environmental impact statement, the statement shall conform with
the requirements set. forth in 6 NYCRR 617.8.
(c)(1) The responsibility for preparation of the environ-
mental reports shall be with the applicant for approval.
(2) Notwithstanding the requirement that the applicant
prepare a report on environmental impact, each party proposing an
alternative for adoption by the Commission shall, at the time
a proposal is submitted, present a statement of its views as
to the likely environmental impact of the alternative it has
proposed.
CITY OF ITHACA
1OB EAST GREEN STREET
ITHACA, NEW YORK 14B50
OFFICE OF
MAYOR
•
gal&
FEB 2 61986
CITY CLERIC'S OFFICE
Ithaca, N. Y
MEMO TO: Raymond Shclather, Chair, Charter and Ordinance
Robert Fletcher, Chair, Cable ,commission
FROM: Mayor John C. Gutenberger
DATE: February 24, 1986
SUBJECT:
Comm.
\0,
PHONE: 272-1713
CODE 607
New York State COmmission on Cable Televion - Prior Notification
of Rates - New Law/New Federal Cable TV Law Affects Municipal
Franchises
Attached hereto please find the above entitled correspondence for your attention.
ATTACH.
CC: Callista Paolangeli, Acting City Clerk w/attach.
"An Equal Opportunity Employer with an Affirmative Action Program"
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
CORNING TOWER. BLDG., EMPIRE STATE PLAZA
ALBANY, NEW YORK 12223
(518) 474-4992
WILLIAM B. FINNERAN - Chairman
F,
PIECriV IT? K"EB 1E' 1936
NEW FEDERAL CABLE TV LAW
AFFECTS MUNICIPAL FRANCHISES
BRIAN A. LUDDY
Commissioner
THEODORE E. MULFORD
Commissioner
BARBARA T. ROCHMAN
Commissioner
JOHN A. GUSSOW
Commissioner
EDWARD P. KEARSE
Executive Director
IMPORTANT INFORMATION FOR MUNICIPAL OFFICIALS
NEW 'LAW
As you may be aware, President Reagan signed a new
law, the ---Cable Communications Policy Act of 1984 ---
effective December 29th of 1984, which affects a muni-
cipality's cable TV franchises, particularly in the
area of rates and franchise renewals.
There is a transition period of two years ending
December 29, 1986 during which basic rate regulation
will continue as usual. At that time, the rates for
basic cable service will be determined by the cable
operator, except in areas designated by the Federal
Communications Commission (FCC) to be without effective
competition.
However, the new federal law allows the operator,
at its discretion, to increase the basic service rate by
5% once each year in the two year transition period, without
municipal approval, if a franchise does not "freeze" the
rate or rates for a specified time period.
Premium or pay services are not affected by the new
rate provisions and remain unregulated as established by
previous FCC and Court decisions.
The Cable Communications Policy Act also estab-
lishes a new procedure for franchise renewals. The
procedure is complex and requires specific action as
early as two and a half years prior to the franchise
expiration date. In the matter of franchise renewal,
the Commission continues to offer its assistance to
local governments.
Other features of the new law strengthen local and
State authority in the areas of public, educational and
government (PEG) access, franchise renewals and consumer
protection. The Cable Communications Policy Act is a
complex document. We urge all local governmentofficials
and your constituents to contact the Commission's
offices at the address below if you have questions or
wish additional details.
Municipal Assistance Division
NYS Commission on Cable Television
Corning Tower Building
Empire State Plaza
Albany, New York 12223
(518) 474-2212
INQUIRIES
OR
COMPLAINTS
Attached for your constituent's information is a
Commission pamphlet, CONSUMER RIGHTS REGARDING CABLE
TELEVISION, which describes the various aspects of cable
television service. Additional copies are available
upon request.
If you are receiving inquiries from cable
subscribers in your area, or people seeking to have
cable installed, the Commission can help. We have a
staff of representatives who maintain contact with the
cable :operators in the State to help answer citizen
questions and resolve subscriber disputes. They can be
reached at:
(518) 474-2213
(212) 587-5040
or
TOLL-FREE
1-800-342-3330
Contact Person: • Donald P. Buckelew
Director, Municipal Assistance
5
he
gmmission
(4.omment
January-Febktuany 1986
Vat. IV No. 1
NEW YORKSTATE COMMISSION ON CABLE TELEVISION
Prior Notification of Rates
The Commission at its November 13th
meeting authorized a proposed rulemaking
which would require cable operators to give
prior notification to its subscribers of any
changes in the rates charged. The rulema-
king is a modification of a rule on the same
subject proposed earlier this year. The
Commission believes that the current propo-
sal is consistent with federal legislation
passed by Congress last year, the Cable
Communications Policy Act of 19 84 (CCP A).
*
The Commission's proposed rulemaking
simply allows a subscriber to choose, based
on the cost of a cable service, whether to
continue such service.
Essentially, the proposal requires cable
operators to notify subscribers in writing
within the billing cycle immediately prece-
ding the effective date of the rate change
but in no event less than ten (10) days
prior to the effective date of the rate
change.
While the CCPA has altered the role of
government in the area of cable television
rates, it should not be read to alter the
fundamental contractual relationship between
the cable television company (seller) and
cable television subscriber (buyer). In
other words, the cable operator is not
entitled to receive for services provided,
an amount in excess of that which is agreed
to by the purchasing subscriber.
Without a subscriber's knowledge —
either actual or constructive — of the rate
to be charged, there can be no subscriber
acceptance and, therefore, no contractual
obligation to pay the unknown rate.
For example, a rate increase effec-
tive December 1 for the month of December
cannot legally bind a subscriber unless he
or she has received adequate notice of such
rate increase in time to decide in advance
whether or not to continue the subscription.
Of course, failure to act after such
reasonable notice may constitute acceptance
of the higher rate.
If the law of contracts requires
notice to a subscriber before the effective
date of a rate increase, an administrative
rule requiring such notice should not consti-
tute rate regulation.
In the CCP A, Congress has recognized
the contractual aspect as well as the poten-
tial for abuse by cable television compa-
nies of service issues by specifically iden-
tifying "quality" of service, including
"billing practices", as an issue pertinent
to a cable operator's request for renewal
(Section 626).
Moreover, Section 63 2 expressly permits
a franchising authority to require in a
franchise "customer service requirements"
which, as set forth in the legislative Com-
mittee Report, include, "the provision to
customers (or potential customers) of infor-
mation on "billing of services". Clearly,
the amount of a rate is "information on
services". Accordingly, a requirement for
some prior notice of rates or rate changes
to subscribers would seem to constitute a
billing practice consistent with Section
632 of the CCPA.
The proposed rulemaking requiring prior
notification of changes in rates (DN 10952-
A) was recently released by the Commis-
sion and comments from all interested par-
ties are welcome.
FCC RULING
EFFECTIVE COMPETITION
As required by the Federal Cable Com-
munications Policy Act of 1984, the Federal
Communications Commission recently adopted
regulations to define circumstances within
which a cable system would be subject to
effective competition.
Cable systems in areas with
effective competition will no longer need
municipal or state approval for rate in-
creases after December 29, 1986. At such
time, basic rates will be determined solely
by the cable operator, as non-regulated pay
service rates have been for same time.
The FCC's definition of areas with
effective competition for cable systems
include any area in which three broadcast
signals meet one of the following crit
Congress' mandate to identify actual compe-
tition to cable television, and to make its
presence the test for deregulation of basic
rates.
The new law and its legislative history
make clear that alternative delivery techno-
logies were identified as the competitive
threat to cable.
Yet the FCC test does not measure the
impact of alternative technologies upon
cable's market power. Nor does it demon-
strate how the availability of a complement
of broadcast video signals will restrain
that market power.
Cable systems not in areas of effective
criteria: competition will continue to ha_ie municipal
and state regulation of rates for basic
service.
othe signal places a Grade B contour
over any portion of the cable community;
othe signal is significantly viewed
within the cable community as defined by
Section 76.54 of FCC Rules; or
othe signal originates from a
translator station located within the
cable community, provided that the
translator is not used to retransmit a
station already providing a Grade B
contour within the cable community.
The FCC may grant exceptions if the
required complement of signals meets the
above criteria, if a municipality can demon-
strate with engineering studies and other
showings that those signals are not, in
fact, available within that community.
The final outcome of these questions
regarding the definition of areas of "effec-
tive competition" and rate regulation, a-
waits resolution of litigation that is pending
in the U.S. Court of Appeals for the D.C.
Circuit.
The National Association of State Cable
Agencies [NASCA] filed comments with the
FCC stating that the FCC's proposed rule on
effective competition fails to carry out
However, rather than permitting such
regulation for areas without effective com-
petition to continue, required that the rates
be set within a zone based upon comparabili-
ty with similar systems.
NASCA's comments before the FCC also
touch on this issue, contending that regula-
tion in areas lacking effective competition
should be determined by State and local
regulators who are most familiar with those
areas and the circumstances involved.
The litigation has been long delayed by
a dispute whether the case should be heard
in Boston or in Washington, D.C. The matter
will now go forward in the D.C. Circuit,
once it is decided if the FCC may first
reconsider its decision. The FCC estimated
that such a step could be completed by the
end of next March, which means briefing and
arguing the case over next summer.
NASCA is concerned that there be suff-
icient time for a full review of the ultimate
FCC rules before the statutory deadline of
December 29, 1986. Some parties have already
suggested to the Court that they may request
that rate deregulation be delayed if an accep-
table FCC rule is not in place by that date.
he
pmm fission
Lomment .. .
By WILLIAM B. FINNERAN
WHEN a once -flourishing
manufacturing company in
Ellenville, N.Y., closed its
doors last fall because of dwindling
sales, the event was not considered
particularly noteworthy. The concern
was the Channel Master Company; its
product was the rooftop television
antenna. Today, with more than 40
percent of American families receiving
television signals by cable, we are well
into the era of "single -wire depen-
dence."
In coming years, that single wire will
be virtually a family's sole contact with
the outside universe of video news,
entertainment and information. This
- simple fact presents some profound
policy questions. Should the content of
that vital flow of information be totally
controlled by cable companies?
The recent decision in Preferred
Communications v. the City of Los
Angeles suggests that the traditional
practice of local governments awarding
single franchises to cable companies
may be in jeopardy. In its decision,
which will be reviewed by the Supreme
Court, the Court of Appeals for the
Ninth Circuit held that the exclusion of
competitors through a franchising
agreement violated the First Amend-
ment.
Enboldened by that decision, cable
industry spokesmen now assert (but
with deliberate vagueness) new-found
rights as "electronic publishers." Free-
market ideologues rhapsodize about the
multiplicity of viewer choices that would
flow from an unregulated cable indus-
try.
The reality of the situation, however,
suggests otherwise. For one thing,
cable is essentially a monopoly.
But the term monopoly should not be
construed as pejorative. In my view, a
prospering monopoly best serves the
subscriber and the public interest. To
achieve the goals of public policy —
diversity in programming and universal
service — cable systems need a healthy
revenue stream.
Under the Cable Communications
Policy Act of 1984, basic cable rates will
be deregulated in 1987. Thus, cable
operators will be allowed to set cable
rates, even though they have no com-
petitors. But the act also requires that
poor neighborhoods be wired and gives
strong legal underpinning to the right of
state and local governments to require
cable systems to carry PEG (public,
educational and governmental) pro-
gramming, over which the cable opera-
tor exercises no editorial control. PEG
programming assures a degree of di-
versity and, one hopes, a more enlight-
ened citizenry.
Thus, a semblance of balance is
achieved between the public obligations
imposed on the cable operator, includ-
ing payment of a franchise fee for the use
of public streets, and the market exclu-
sivity afforded the operator. This bal-
ance is threatened, however, by a series
of lawsuits that, on First Amendment
grounds, challenge the basic legal as-
sumptions under which cable franchises
have been granted over the last 25 years.
Another such case is the recent
Quincy decision of the Court of Appeals
in Washington. In it, the court over-
turned the Federal Communications
Commission's "must carry" rule, which
required cable operators to carry the
signals of local broadcast stations —
unedited, uncensored and otherwise
untampered with.
THE Quincy decision is hailed by
some as conveying to cable
operators the broad First
Amendment freedoms historically
enjoyed by newspapers. Now, with
control of cable content increasingly
viewed as a private editorial prerogative,
even obligations to carry PEG pro-
gramming are being questioned by some
in the cable industry.
Will future court decisions sustain
this view of the cable operator as an
"electronic publisher," exercising un-
fettered editorial control over the con-
tent of each of 40 or 50 channels on his
system?
I would not bet on it. newspapers, in
my view, make a poor comparison. A
cable system is much more like a single_
newsstand with an exclusive license to
serve a city, town or village. Cable, as
indicated above, is a natural monopoly.
But, if a monopolist operator gains
editorial control over every channel in a
multichannel system, then the public's
right to diversity is at risk.
The essential question is, Whose First
Amendment rights should we protect,
the cable operators' or the public's? In a
similar case dealing with broadcasting,
the Supreme Court showed more con-
cern for consumers' rights than for
broadcasters'. In its noted Red Lion
decision in 1969, the Court declared
that, "It is the [First Amendment] right
of the viewers and listeners, not the right
of the broadcasters, which is para-
mount."
Each of over 30 million American
households is now served exclusively by
a single cable operator. In this age of
"single wire dependence," the Court's
logic and concern is doubly applicable.
Thus, it should come as no surprise if the
Court in Preferred upholds municipal
franchising, again finding paramount
the First Amendment rights of the cable
subscriber.
Cable television, with its multi-
plicity of channels, has much to offer
America. It should continue its syner-
gistic relationship with broadcasting
and support PEG programming and
develop its unique capability to serve
individual communities.
In short, cable television's golden era
lies on the horizon. Its ultimate success
can be achieved — indeed more readily
achieved — without its being every
channel's editorial czar. The public's
right to universial service and a diversity
of opinion is best served by the tradi-
tional franchise system.
■
William B. Finneran is chairman of
the New York State Commission on
Cable Television.
Reprint NEW YORK TIMES, November 17, 1985
SUBSCRIBER INQUIRIES
OR COMPLAINTS
1-800-342-3330
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
CORNING TOWER BLDG., EMPIRE STATE PLAZA
ALBANY, NEW YORK 12223
(518) 474-4992
WILLIAM B. FINNERAN - Chairman
BRIAN A. LUDDY
Commissioner
THEODORE E. MULFORD
Commissioner
BARBARA T. ROCHMAN
Commissioner
JOHN A. GUSSOW
Commissioner
EDWARD P. KEARSE
Executive Director
(2). Que por lo menos cinco (5) dias hubieran
pasado despues que se haya servido personal
mente el aviso escrito de desconeccion al
suscriptor; o
(3) Que por lo menos ocho (8) dias hubieran
pasado despues que se haya enviado por correo
el aviso escrito de desconeccion al suscriptor; o
(4) Que por lo menos cinco (5) dias hubieran
pasado despues que el suscriptor haya firmado 0
rehusado el aviso de desconeccion
El aviso de desconeccion debe claramente
estipular la cantidad debida, la contidad total
requerida a pagarse para evitar una desconec-
y la fecha y el lugar donde dicho pago debe
hacerse.
La desconeccion del servicio po!:falta de pago
no debe ocurrir en un domingo, dia feriado, o en
un die que la compania no este abierta para
negocio: Si la compania recibe un cheque
sobregirado como respuesta a un aviso de
desconeccion, este no constituye un pago, y la
compania n9 tiene que dar otro nuevo aviso de
desconeccion.
Un cargo por reconeccion no puede ser
impuesto meramente porque el suscriptor haya
previamente sido delincuente con su cuenta.
CREDITO POR TIEMPO
FUERA DE SERVICIO
Toda compania de cable television dar
credito por todo tiempo fuera de servicio que no
haya sido causado por el suscriptof, y que haya
sido en .exceso de 24 horas continues. El sus-
criptor debe solicipr el credito oralmente o
porescrito. El periodo de 24 horas comienza
immediatamente a la vez que la compania de
cable television se entera del tiempo fuera de
servicio.
El credito a concederse debe ser estimado
multiplicando la cantidad fija ayagarse por
servicio mensual, por una fraccion, la cual el
numerador es igual al numero de digs fuera de
servicio, y el denominador es igual al numero de
dies del mes en que el servicio fue interrumpido.
En ningun caso la cantidad de dinero a devolverse
debe tener un valor de menos 24 horas de
credito. Por ejemplo: el servicio interrumpiiio por
tres (3) dias en el mes de Abril conlleva que el
suscriptor recobre la cantidad de 3/30 0 1/10 de
la factura de ese mes. La compania es respon-
sable por toda interrupcion, y debe proveerle
credito a cada suscriptor afectado que lo solicite,
durante el periodo de 9.0 dias despues de la
interrupcion del servicio.
FACTURA POR
ADELANTADO
Toda compania de cable television notificara a
sus suscriptores de cualquier opcion disponible
en cuanto a/facturas por adelantado. Al2sus-
criptor, si asi to -gide, se le puede dar la opicion de
pagar mensualmente. El use del libro de cupones
puede satisfacer esta opcion de hacer pagos
mensuales. Si la compania dispone de estos
libros de cupones, no es necesario que la
compania de cable television tenga que envier
ofras facturas por servicio rendido.
NUMERO DE TELEFONO
.PARA QUERELLAS
518-474-2212
TOLL-FREE
(LLAMADAS LIBRE DE CARGOS)
1-800-342-3330
DERECHOS DEL
CONSUM I DOR
CONCERNIENTE
AL SERVICIO
DE CABLE
TELEVISION.
New York State Commission
on Cable Television
Empire State Plaza
21st Floor, Tower Building
Albany, N.Y. 12223
1-800-342-3330
518-474-2212
212-587-5040
QUERELLAS
Cuando usted tenga algun problema con el
cable televisor suyo, lo primero que debe hacer
es ponerse en contacto con el operador de su
cable y reportarle su problema...ENTONCES si
su querella no ha sido resuelta—pongase en
contacto con su gobierno local. Si eso aun no ha
funcionado, (lame a la Comision del Estado de
Nueva York para Cable Television, Telefono
1-800-342-3330. (El telefono del distrito de la
capital es el 518-474-2212), o escriba a: Investi-
gador de Querellas; Comision del Estado de
Nueva York Para Cable Television, Empire State
Plaza, Tower Building, 21st floor, Albany, New
York 12223.
A su compa'na de Cable Television se le
requiere que, por lo menos una vez al ano, le deje
saber a usted de lo procedimientos a seguir
sobre.querellas. Esto se debe hacer al Principio
que usted se suscribe o cuando le esten reconec-
tando•su servicio. Su compania de Cable Tele-
vision tambien debe dejarle saber a usted que
cualquier queja aun non resuelta puede ser
referida a Ia Comision.
LIAMADAS SOBRE
QUERELLAS
Cualquier Ilamada sobre una querella debe
ser contestada el mismo dia que la compania la
recibe. De ninguna forma debiera pasar mg del
d a siguiente de trabajo para contestar la
Ilamada. La compania de cable television debe
mantener un numero de telefono para Ilamados
gratis, que este disponible a todos los suscrip-
tores, en caso de que alguno tenga que obtener
informacion o que tenga que reportar un prob-
lema de servicio.
FACTURAS
Toda compania de cable television debe notificar
a sus suscriptores porescrito de como se pasan
las facturas y como se deben hacer los pagos. El
aviso debe describir o definir por lomenos: los
procedimientos a seguir con las facturas (inclu-
yendo informacion necesaria sobre pagos a
hacer.se para evitar un descontinuo de servicio,
como tambien fechas de pagos); cargos por
• tardanza de pagos; opcion de facturas por
adelant ado; posible disputa sobre facturas; y tipo
de credito dado por interrupcio.n de servicio. Este
aviso se le debe dar a:
(1) Los nuevos suscriptores, al principio de la
instalaci6n del servicio.
(2) A todos los suscriptores a la vez que haya
algun cambio de parte dela compania en el modo
de pasar facturas o requerir pagos.
Se debe archiver con la Comision la copia del
aviso que explica el modo en que una compania
quiera pasar facturas o requerir los pagos.
Tambien deben haber copias disponibles en la
oficina local de la compania para que los
suscriptores puedan obtenerlas.
CARGOS PAR
TARDANZA DE PAGOS
Y CARGOS PAR
COLECTAS
Un cargo por colecta es como una multa o un
cargo impuesto al suscriptor por una compania
de cable television por su esfuerzo en colectar o
por el atento a colectar una remesa de pago
tardia dado que la colecta haya sido por una
visits personal al hogar del suscriptor o al sitio de
su trabajo.
Un cargo por tardanza de pago es un cargo que
se le an'ade a la cuenta del suscriptor por no
haber pagado,.una factura previamente debida.
Cuando asi lo permite la franquicia, cualquier
cargo por tardanza debe ser detallado en la
factura del suscriptor; o en el caso de un libro de
cupones debe aparecer junto al aviso de pago
delincuente.
Un cargo de colecta rasonable puede ser
a'nadido a la factura de un suscriptor cuando este
hace remesa de pago por atraso y ya que el
servicio iba a ser desconectado. Tal cargo de
colecta debe estar sujeto a las regulaciones de la
Comision.
DISPUTAS DE •
FACTURAS
Toda compania debe permitir el transcurso de
treinta (30) dias, a partir del dia que el suscriptor
recibe su factura, para que se pueda registrar
cualquier disputa y anates que la cuenta pueda
considerarse delincuente. El suscriptor debe
remitir la porcion de la cuenta que no haya sido
disputado; como tiene tambien la responsabili-
dad de remitir el pago por la parte no disputada
de la cuenta corriente y de proximas facturas,
hasta que Ia disputa sea resuelta.
El servicio de cable televisionno puede ser
desconectado por no haberse pagado la porcion
de la factura bajo disputa durante la investiga-
cion de la querella.
Al suscriptor se le debe notificar los resultados
de la investigacion, a no mas tardar de veinte (20)
digs laborables, a partir del registro de la
guerella.
Si la disputa no ha sido resuelta a los treihta
(30) digs despues de haberse recibido el registro
de la querella, el suscriptor puede entonces
referirse a la Comision. Si el suscriptor no esti
satisfecho con la resolucion tomada, y no
presenta su querella a la Comision treinta (30)
digs despoes que Ia compa fila haya enviado su
respuesta, entonces la compania puede iniciar
procedimientos apropiados de desconeccion de
servicio, de acuerdo a las reglas de la Comision.
DESCONECCION.
de SERVICIO
Un suscriptor no es considerado delincuente
en sus pagos hasta que haya transcurrido por lo
menos treinta (30) dins a partir de la fecha del
vencimiento. del pago, y si la compania no. ha
recibido el pago.
El Procedimiento para desconectar el servicio
por no haberese pagado la factura debe incluir lo
siguiente:
(1) El suscriptor tiene que haber sido un
delincuente en el pago por el servicio de su cable
television; y
OFFICE OF
MAYOR
MEMO TO:
CITY OF ITHACA
1 OB EAST GREEN STREET
ITHACA, NEW YORK 14850
•
.�� rso �T�LtPHONE: 272-1713
-" CODE 607
Raymond Schlather, Chair of the Charter and Ordinance Comm.
Robert Fletcher, Chair of the Cable Comm.
Joseph Rundle, City Clerk
FROM: Mayor John C. Gutenberger
DATE: October 12, 1984
SUBJECT: New York State Commission on Cable Television - Case No. 8410001
Complaint - American Community
Attached hereto please find a copy of the above entitled matter for your information.
ATTACH.
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
CORNING TOWER BLDG., EMPIRE STATE PLAZA
ALBANY, NEW YORK 12223
(518) 474-4992
WILLIAM B. FINNERAN - Chairmah !$gtf
October 5, 1984
Honorable John Gutenberger
Mayor
City of Ithaca
City Hall
Ithaca, NY 14850 Case No. 8410001
Dear Mayor Gutenberger:
Enclosed is a copy of a complaint we received,
from a resident of your municipality. We received
it onSeptember 27, 1984 and forwarded a copy to
American Community asking for a reply within
ten (10) days.
BRIAN A. LUDDY
Commissioner
THEODORE E. MULFORD
Commissioner
BARBARA T. ROCI INI AN
Commissioner
JOI-IN A. GUSSOW
Commissioner
EDWARD P. KEARSE
Executive Director
This correspondence is for your information
since this company operates within your jurisdiction.
If we can be of any assistance to you, please
do not hesitate to contact us at (518) 474-2213.
Should other residents of your area be experiencing
cable television related problems, please give them
our toll-free number 1-800-342-3330 for assistance.
SAM: l c
Enclosure
Sincerely,
Cl\-1,11s_k_NC)
Susan A. Mulhern '
Complaints Investigator
zete-kaLr
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7-77
DESCRIPTION DATE
CONNECT CABLEVISION 02/03
SALES% TAX 02/03
PRORAT-E'D SERVICE -- 25 DAYS FROM 02/03 TO 03/01/84
PAYMENT 02/06
CABLE SERVICE 03/01 TO 05/01/84
* TELEVISION WORTH WATCHING *
A WHOLE MONTH OF HBO FOR LESS
THAN A NIGHT OUT.
DOROTHY BROWN ITOTAL DUE
25.00
1.75
5.38
25.000R
12.00
19.13
R 082-008-14850-011167 08 626177016
840 216 12 60 094
AMER. COMM CCABLEVISION D
P.O. BOX 6 75 Acco09 No. 08 626177PA88
ITHACA NY 14851 PLEASE PAY
DUE DATE 0'7/ 10/-$ / 840
4
REMIT TO�
AMER. COMM. CABLEVISION
P.O. BOX 6575
ITHACA NY 14851
9010THY DRYDENOWN RD
APT
ZTHACAI35 NY 14850
FOR YOUR CONVENIENC OUR BUS.
OFFICE IS OPEN MON—FR I 8 AM
TO 7 PM, SAT. 9AM TO NOON.
PLEASE DETACH AND ENCLOSE TOP PORTION WITH CHECK OR MONEY ORDER
DESCRIPTION
BALANCE FORWARD
PAYMENT
MOTHLYE
EXPERVI
ANDED SSERVICE
CREDIT FOR PREPAYMENT
FOR YOUR CONVENIENCE OUR BUS.
OFFICE IS OPEN MONiFRI 8 AM
TO 7 PM, SAT. 9AM TO NOON.
DATE
06/11
07/01 TO 08/01/84
07/01 TO 08/01/84
06/25
DOROTHY BROWN
R 1 094-013.14850-00534-4
TOTAL DUE
4.90
12.90CR
8.00
3.00 •
3.000R
.00
08 626177016 840625 12 55 094
DESCRIPTION DATE
CREDIT-UNUStU SAT TIER
MONTHLY SERVICE
FOR YOUR CONVENT ENCE OUR BUS.
OFFICE IS OPEN MON—FRI 8 30AM
TO 7 PM, SAT. • 9AM TO NOON.
07/16 TO 10/01/84
DOROTHY BROWN
6.249
R 091-008-14850-04350-9 oa 626177016
1.45CR
16.00 1
X.A JZATTAL UE // 14.55
boX
840719 12 L9 094
AMER. COMM. CABLEVISI.ON AZ
P.O. BOX 6575
ITHACA NY 14851
F REMIT TO---;
AMER. COMM. CABLEVISION
P.O. BOX 6575
ITHACA NY 14851
09ACCOUN No. 08 626177.016
PLEASE PAY $18.00
DUE DATE 09/05/84
DOROTHYS
BROWN
901 DRYDEN RD
APT 35
ITHACAINY 14850
FOR YOUR CONVENIENCE OUR BUS.
OFFICE IS OPEN MON—FRI 8 30AM
TO 7 PM, SAT. 9AM TO NOON.
PLEASE DETACH AND ENCLOSE TOP PORTION WITH CHECK OR MONEY ORDER
DESCRIPTION
BALANCE FORWARD
PAYMENT
MONTHLY SERVICE
**CR 37
FOR YOUR CONVENIENCE OUR BUS.
OFFICE IS OPEN MON—FRI 8 30AM
TO 7 PM, SAT. 9AM TO NOON.
DOROTHY BROWN
08/01
09/01 TO 11/01/84'
4.55CR
16.00
TOTAL DUE
18.00
R 066"028-14850-028997 08 626177016 840824 12 03 094
OFFICE OF
MAYOR
MEMO TO:
CITY ®F ITHACA
108 EAST GREEN STREET
ITHACA, NEW YORK 14850
NE: 272-1713
CODE 607
Joseph RUndle; City Clerk
Raymond Schlather, Chair of the Charter and Ordinance Comm.
Robert Fletcher, Chair, Cable Co ission
FROM: Mayor John C. Gutenberger
DATE: August 9, 1984
SUBJECT: cspplabit.received"by the New York State Commission on
Cable Television - American Community Cable - Case No.
8407038
Attached hereto please find a, copy of the above entitled matter for your
information.
ATTACH.
"An Equal Opportunity Employer with an Affirmative Action Program"
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
TOWER BUILDING, EMPIRE STATE PLAZA
ALBANY, N.Y. 12223
(518) 474-4992
WILLIAM B. FINNERAN - Chairman
August 1, 1984
Honorable John Gutenberger
Mayor
City of Ithaca
City Hall.
Ithaca, NY 14850
Case No. 8407038
JERRY A. DANZIG
Commissioner
BRIAN A. LUDDY
Commissioner
THEODORE E. MULFORD
Commissioner
EDWARD P. KEARSE
Executive Director
Dear Mayor Gutenberger:
Enclosed is a copy of a complaint we received
from a resident of your municipality. We received
it on July 26, 1984 and forwarded a copy to
to American Community Cable asking for a reply
within 10 days.
This correspondence is for your information since
this company operates within your jurisdiction.
If we can be of any assistance to you, please do
not hesitate to contact us at (518) 474-2213. 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.
SAM:lc
Enclosure
Sincerely,
Ata,)
Susan A. Mulhern
Complaints Investigator
45 Woadlane Road,
RD2 Ithaca, NY.
July 17th.,1984.
•8 7.6 'ia(i :00
American Community Cablevision,
Ithaca
To whom it may concern:
Enclosed you will find my payment for cable service for the month of
July,1984. This payment has been pro -rated for the 5 days' loss of service
we suffered in mid-June. An adjustment of 16.7% (5 days out of 30) has been
made to my June payment (16.7% of $19.95 = $3.33 deducted from July payment).
It took your company 5 days to repair the cable service to my residence, not
because of any equipment problem, but because of tardiness on your part. I
made numerous telephone calls for the repair, was given assurances that it
would be done, but found that no repair person materialized when promised.
I made a personal visit to your office at noontime on the fourth day because
your habit of leaving telephones off the hook during lunch break makes it
otherwise impossible to communicate with you. I have not charged you for
the interruption this caused to my own work, but I am not paying for the
lost service.
I have finally received a visit from my"neighborhood representative"
and was appalled at the full scope of your rate increases, once I was able
to piece together the information he gave me. At no time have you dared to
put this information in writing to your customers, doubtless knowing full
well the indignation it would create. The only written information we
received was in June, indicating that the chanel changes were to be made
at a net monthly -cost of only $1. I noted that my "neighborhood representative"
was carrying a similar -looking flyer with quite different numbers within its
text - a flyer never seen by my household. One month ago, $10.95 would get
me HBO plus all the other chanels my set picked up when we originally
installed HBO. Now, in order to get the same number of chanels, you want
me to pay $35.85 plus $.95 per month for a viewers' guide which used to be
free, plus $2 for a remote chanel changer (now necessary to continue to
change chanels from my chair, as the new "box" is situated on the TV). My
second TV hookup went from $1 to $2.50 at the same time. And all this for
service of inferior quality to that which I lost when you reduced our PBS
viewing options with these recent changes.
I am sure it has not escaped your notice that we have dropped the HBO
service. The extent of your greed for money was apparent when my "represent-
ative" told me that this would then result in a $3 per month charge for the
remote control.
I certainly hope that other residents of this area are making you aware
of their disgust at your business practices. Alternatives are now available
to your "service", and will pay for themselves in a relatively short time
frame, especially when one considers the enormity of your recent rate increases.
-2-
I wonder that you are legally able to make such large rate increases at
one time. A 150% increase in my second TV hookup in•'one month seems outrageous,
for instance. I sincerely hope that other consumers have acted as I have. A
reduction in your net income from other homes also should be a clear indication
to you of our disgust at your sharp business practices.
Yours sincerely,
Dr. E.A.B. Oltenacu
copy: State of New York, Public Service Commission, Dept. of Public Service,
Empire State Plaza, Albany, NY 12223.
American Community Cablevision
519 West State Street
Ithaca, New York 14850
Dear Sir:
.i /
o
£I CLEx s rf9�4 ,rte L,1
Ithaca, Fd. Y. <..
William E. Wolfe
308 West Seneca Street
Ithaca, New York 14850
July 29, 1984
Please be advised that I would like my service level reduced, from basic cable and
the four extra channels at $11.00 per month to just basic cable at $7.00 per month.
I would like this change to become effective immediately.
I have been forced to reduce service due to your unilateral actions, concerning
channel substitutions and deletions (as well as additions), and what I perceive as
your evasive and irresponsible behavior. I'm sure you're aware that it is impossible
to contact you by phone, which I'm sure is no accident. Such actions are intolerable
at a public utility (while legally you are not a public utility, you are a regulated
entity and should be accountable and responsible).
Please be advised that a copy of this correspondence will be sent to the FCC as well as
Ithaca's Common Council. Thank you for your time.
Sincerely,
William E. Wolfe
OFFICE OF
MAYOR
c5
p �
8V7� l , .7
•
mow., 1 I• ,��7-Al Is. ' �...
CITY OF ITHAC ear C� ,4`d7 4=a{�^ !"
1 08 EAST GREEN STREET �� '4a, # k 'Ye j , 7,i
ITHACA, NEW YORK 14850 j� <
T^�\N
LEPHONE: 272-1713
C0.917:::\\ CODE 607
- r'
MEMO TO: Joseph Rundle, City Clerk
Raymond Schlather, Chair of the Charter and Ordinance
Robert Fletcher, Chair of the City's Cable Commission
FROM: Mayor John C. Gutenberger
DATE: July 2, 1984
SUBJECT: New York State Commission on Cable Television
Complaint
Attached hereto please find a copy of a complaint that the New York State
Commission on Cable Television received for your information. Please note that
they have asked for a reply from the American Community Cable.
Comm.
ATTACH.
"An Equal Qpportunity Employer with an Affirmative Action Program"
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
TOWER BUILDING, EMPIRE STATE PLAZA
ALBANY, N.Y. 12223
(518) 474-4992
WILLIAM B. FINNERAN - Chairman
June 25, 1984
Honorable John Gutenberger
Mayor
City Hall
Ithaca, NY 14850
Dear Mayor Gutenberger:
Case No. 8406030
JERRY A. DANZIG
Commissioner
BRIAN A. LUDDY
Commissioner
THEODORE E. MULFORD
Commissioner
EDWARD P. KEARSE
Executive Director
Enclosed is a copy of a complaint we received
from a resident of your municipality. We received
it on June 19, 1984 and forwarded a copy
to American Community Cable asking for a reply
within 10 days.
This correspondence is for your information since
this company operates within your jurisdiction. -
If we can be of any assistance to you, please do
not hesitate to contact us at (518) 474-2213. 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.
SAM:lc
Enclosure
Sincerely,
Alu2,4)
Susan A. Mulher-n
Complaints Investigator
NTJ ll [.
.Y.S. (,,�i .1..;,/'(•1.11 I
June 14, 1984
New York State Commission on Cable Television
Tower Building
Empire State Plaza
Albany, New York 12223
To whom it may concern:
'84 JUN 19 P3:27
A),
I have been referred to you by an acquaintance who believed that
you would have an interest in knowing about a problem I have been
experiencing over the past 9 months with the American Community
Cablevision company of Ithaca, New York. I am writing merely to
state my complaint and to draw your attention to a situation which
I feel constitutes harassment; I feel that the situation has occurred
due to the negligence of the Ithaca -based cable company.
I used the services of the cable company for no more than 2 months
last summer (I was in possession of a loaned TV for 6 weeks), and
the company was paid in full by August, 1983, for any and all services
rendered, the cable disconnected. Since then I have been repeatedly
billed by their office. Around December, 1983, (after having called
their office and written them repeatedly) I indicated that I would no
longer take the time to respond to their bills, and would from then on
discard them. The person to whom I spoke at that time (identified only
as "Edith") said this would be fine, since I owed nothing, and my file
would be corrected and closed. After that time, I indeed threw away
all bills that came from their company, and received no more communica-
tion from them.
Then last month (mid-May), I received a threatening letter from a.
collection agency in Texas. I immediately phoned Mr. Neal Rogachefsky of
the Ithaca cable company. He checked my file and assured me that they
were aware that nothing was outstanding in my account, and that he would
contact the collection to make sure that no more action would be taken by
them against me. I have no idea whether this was done; however, on
June 8 -I received the letter from the collection agency which is enclosed_
(2nd letter from them).
I have enclosed 2 other documents which have bearing on this situation:
(1)my letter to the Texas collection agency which has been sending me
the threatening letters, and (2) a memo sent to me today by the cable
company representative, indicationg that my balance is $0.00.
It seems to me that either or both the cable company or the collection
agency has been remiss in record-keeping as well as in responsiveness
to customers. I do not know what you can do with this information, but
I feel it is important to complain when an unjust situation occurs and
one is being threatened. I have always kept a good credit record, and
I have been dismayed to think that my record could be upset so easily
due to a careless error.
2 Kent
I would appreciate a response from your office as to what action,
if any, can be taken at this point; if no action is appropriate,
please let me know what use can be made of this information.
Thank you very much for your consideration.
Sincerely,
Leslie M. Kent
c/o Residential Life, Ithaca College
Ithaca, New York 14850
•
June 14, 1984
To whom it concerns:
Enclosed please find your letter of May 18 (received June 8) to
me regarding my alleged debt to the American Community Cable-
vision company of Ithaca, New York. I received a similar letter
from your firm last month' upon receiving it, I immediately phoned
Mr. Neil Rogachefsky of American Community Cablevision, 519 W. State
�.. Street, Ithaca, New York 14850 (607)272-3456. Mr. Rogachefsky
checked my file and confirmed that I have a $0.00 balance.
In fact, my account has been paid in full and closed (as far as I
am concerned) since September, 1983, when I paid the total amount
due -the company. I have not used their -service since that time.
Due to an apparent filing error on the part of the American Community
Cablevision company, I have been repeatedly billed since September
(for no reason), and evidently they recently have contacted your firm
to collect on the alleged debt. Upon receiving your first letter last
month (mid-May, 1984), I spoke to Mr. Rogachefsky who apologized for
my having received what I felt was a threatening letter asking for
payment. He assured me on that date that he would notify your
company that my account was not in arrears, adn that I would not be
liable for any further payment or harassment. I have no idea whether
or not this was done.
However, this week's letter from you is quite threatening in nature. I
have therefore asked Mr. Rogachefsky to send me a document stating
that I owe no more to his company. You will find a copy of this memo
enclosed. He also assured me that he would contact your firm and let
you know that no further correspondence is necessary (nor has there
ever been any need for action on your part).
I am contacting the New York Commission on Cable Television in order
to register my complaint about the manner in which my account with
American Community Cablevision in Ithaca has been handled. In addition,
I intend to contact Attorney General Kathleen Haley of Binghamton-, New
York, to indicate my extreme dissatisfaction with having received any
letters of a threatening nature from your agency. I have never had a
problem with my credit rating nor with any creditor, including the
phone company, and it disturbs me to think that because of a filing
error, this rating could be damaged.
I hope that this action on my part will clarify the situation for your
company.' I expect that I will receive no more correspondence from you
nor the American Community Cablevision company. Please contact Mr.
Rogachefsky at the above phone number or address if you have any more
questions. Thank you for your assistance.
Sincerely,
lX,
/✓l.i(
Leslie M. Kent
cc: Rogachevsky, Haley, NY Commission on Cable Television
/".-)./•• /r6a'%f
•
41:
AMERICAN
COMMUNITY
CABLEVISION.
A DNISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP
519 West State Street Ithaca. N.Y. 14850 (607)272.3456
DATE
SUBJECT
3,977 / A6/z 4.)-(. 5-/7
zol/f 2407
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/d -L :1 -?:(7‘&.#;X -xyxkw-J6( ad,,Lz77
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Ak-le 5-, A-6/ (//-',,'-,/,:(
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7,4/7e/7 -i,-m-v4/7_,;,-;/ /4'1 /7-4,Yiii/)
, COLLECTIONS GUARANTEED NATIONWIDE
AFFILIATED OFFICES IN MAJOR CITIES
CREDIT PROTECTION ASSOCIATION, INC.
CORRESPONDING ATTORNEYS IN ALL PRINCIPAL CITIES
c„no
MAY 189 1984
18014-627957
MR. LESLIE KENT
IC ROWLAND HALL RESDI
I THACA I'JY 14850
RE
gc-ec &(g
YOUR ACC1.'IJ"T WITII AMER1CAN C.)ftr1UIJITY CAULEVISIDN
519 W STATE STREET
1THACA f'V 14850
DEAR (IR. KENT=
THIS IS THE THIRD TIME WE HAVE HAU TO NOTIFY YOu (JN
BEHALF OF THE ABOVE NAMED CREDITOR REGARDING YUUR
OVERDUE BALANCE OF $19.36. A REVIEW OF YUUR RECORDS
WHICH ARE AVAILABLE FtJR J!JSPI_CTIUN REVEALS THAT YOU HAVE:
1. REFUSED TU PRVPERLY PAY YOUR OUTSTANDING DEBT;
2. IGNORED YOUR CREDITOR'S REPEATED REQUEST FOR PAYMENT;
3. REPEATEDLY DISREGARDED OUR PAST NOTICES.
BE ADVISE[) THAT THE i)ISSEMINATIJN (JF CREDIT 1"JFORMATIUN
INCLUDING YUUR flAME, t)IJR RECORDS, AND THE At1OtJNT YOU
OWE MAY €3E REPORTED TO THE CREDIT BUREAU AS DUE ANC)
UNPAID.
ONLY YfIJR [^^MEDIATE PAYHEAT TU !HE ABOVE NAMED CREDITOR
WILL PREVENT FURTHER ACTION.
(\ie, j I (kV_ c ke4 S k- LL
AJ s r-,�ee,`i/.
(a (1,;
wP/AD 15U00
YOURS VERY TRULY.
1). W.
J. w. PRESTOII
COLLECTION MANAGER
NATIONWIDE HEADQUARTERS -NOEL ROAD-P.O. BOX 802068 -DALLAS, TX. 75380-2068
ALL PERSONS HAVE A RIGHT TO INSPECT THEIR CREDIT RECORDS
FOR PROPER CREDIT, INCLUDE THIS LETTER WITH YOUR PAYMENT.
OFFICE OF MAYOR
WILLIAM R. SHAW
CITY OF ITHACA
108 EAST GREEN STREET
ITHACA, NEW YORK 14850
_��
k.
4PRl51992
C 'S OFFIC
Mica, N. Y. TELEPHONE 272-1713
MEMO TO: Mr. Benjamin Nichols, City's Cable Commission
Mr. Joseph Rundle, 'City Clerk
FROM: Mayor Bill Shaw fi00
DATE: April 14, 1982
SUBJECT: American.C.ommunity Cablevision - Mr. Liberman's
complaint
CODE 607
Attached hereto please find a copy of a letter written by
Mr. Kevin Grossman of the American Community Cablevision addressed
to Susan Mulhern, Complaint Investigator for your information.
BS:r
ATTACH.
"An Equal Opportunity Employer with an Affirmative Action Program"
A P 'ISION OF AMERICAN TELEV SION & COMMUNICATIONS CORP.
519 West State Street Ithaca N.Y 14850 (60712723456
April 12, 1982
Ms. Susan A. Mulhern
Complaint Investigator
New york State Cable T.V. Commission
Tower Building - Empire State Plaza
Albany, N.Y. 12223
Dear Ms. Mulhern:
This is in Regard to your letter -of April 5, 1982
pertaining to the matter of Mr. Liberman's complaint dated
March 3, 1982.
As you know, mistakes are sometimes made in scheduling
work with cable television customers. Such was the case for
Mr. Liberman's disconnect date. We are very sorry as American
Cablevision is constantly concerned with keeping such errors
to a minimum. .
Concerning Mr. Liberman's point that his latest payment
covered the period through February 28th - a .63 credit
from his old account will be transfered to his new account
to cover those days he was without service (25th.- 28th).
With regard to Mr. Liberman's installation at his new
address - our records confirm that our installer called on
Apt. 6-2-D, 600 Warren Rd..on Friday, Feb. 26th at 10:20 AM.
At the time of his order, -Mr. Liberman was informed that we
could not promise a specific appointment time for an instal-
lation. When a customer is not home for an install., every
attempt is made to try again later in the day however, do
to the individual installer's daily work load, it sometimes
is impossible. If an appointment is missed, we try to resched-
ule as soon as possible with the next available day:that is
not already committed to other installations or related work.
It is unfortunate that Mr. Liberman had to wait the three
extra days because our technical and installation crews were
all commited to other work.
Again, we regret the inconvenience and we are sorry for
the mishap. We look forward to providing Mr. Liberman with
good service as long as he remains a subscriber to American
Community Cablevision.
Very Truly,
cc: Mr. Liberman
OFFICE OF MAYOR
WILLIAM R. SHAW
CITY ®F ITHAC
108 EAST GREEN STREET
ITHACA, NEW YORK 14850
MEMO TO: Mr. Benjamin Nichols, Chairman
Mr. Joseph Rundle, City Clerk
PHONE: 272-1713
CODE 607
of the City's Cable
;
.FROM: Mayor Bill Shaw r6-,_=-
DATE:' April 12, 1982
SUBJECT: New York State Commission on Cable Television
Complaint
Attached hereto please find correspondence received today in
regard to the above entitled matter for your attention.
BS:r
ATTACH.
"An Equal Opportunity Employer with an Affirmative Action Program"
Comm.
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
TOWER BUILDING, EMPIRE STATE PLAZA
ALBANY, N.Y. 12223
(518) 474-4992
GEORGE A. CINCOTTA - Chairman
Apr=il 5, 1982
MICHAEL H. PRENDERGAST
Vice -Chairman
JERRY A. DANZIG
Commissioner
BRIAN A. LUDDY
Commissioner
THEODORE E. MULFORD
Commissioner
EDWARD P. KEARSE
Executive Director
Hon. Edward Conley
Mayor
City of Ithaca
City Hall
Ithaca, NY 15859
Dear Mayor Conley:.
Enclosed is a copy of.a complaint we received from
a constituent of yours. We received it on April 1, 1982
and forwarded a copy to American Community Cable asking
for a reply within 10 days..
The enclosed is for your information since this
company is operating within your jurisdiction.
If we can be of any assistance to you, do not hesitate
to contact us.
Sincerely,
l
0Ili•-''�'_
Susan A. Mulhern 1
Complaint Investigator
New York State Cable
Albany, N. Y.
Dear Sirs:
P. O. Box 44
Ithaca, N. Y. 14850
6?,7_,.ci;a"!"-t& V;IL March
Commi si'�-
'Speci f is Complai nt
RE: Service -
by Ameri can Community Cablevision
3, 1;82
This is to register a complaint against the American
Community Cablevision serving Ithaca, New York, and the
surrounding areas of the Vi 11 age .of Cayuga Hei ghts, Vi 11 age
of Lansing, and whatever other adjacent areas they may serve
with their cable franchise.
On Tuesday, February 23, . 1982, I notified the American
Comm uni ty Cabl evi si on office that I was moving on
Fri day , February 26th and that I want ed my TV servi ce
t ransf erred t o Warrenwood Apart anent s,. 600 Warren Road . ,
as of said date, Friday , February 26th.
I was still in 'occupancy of University Park Apartments
Until Friday, February 26th. As of February 25th , my
cable connection was cut off, although the servi ce was
paid for to March 1st.
As of February 26th, moving day, the van and I arrived at
Warrenwood Apartments about 11 A. M. The moving in took
until about 1 P. M. . No sign of any installer for the T V
servi ce hook up ordered on Tuesday , February 23rd. At
about 3 P. M. I called the Cablevision office as to the
installer service. 'Their response was that they could not
contact the installer .through their communication sysi em,
he iiot being. in touch with, his truck, and that his work day
finished at 4 P. M. . It then became apparent that the
service would not be connected as of Friday , February 26th .
Since the Cablevision offices are closed as of Friday at 4:30 P. M.
and they . have no service over the Saturday and Sunday weekend,
I was without cable service from Thursday, February 25th through
Sunday , .February 28th. As for a cable connection on Monday,
March 1st , this too was impossible. All of the Cablevision service
personnel were to be engaged in some kind of a three day check of
their service lines and that no installer service would be available
until Thursday, March 4th. At such time they would endeavor to
set up a work order for installer service on March 4th.
York State Cable Commission page 2 March 3, 1982
- As the situation appears, there was not any scheduled work order
for the transfer of my service. Theinstaller cut off my cable •
service which was paid to March 1st at his convenience sometime
on Thursday.., February 25th. He claims to have been at the new
location -on Friday, February 26th ., at about 10:20.A. "M. , but left
no note to such visit. He never came back again later said day,
this is according to the Cab]evi.sion records.
I do not know the re4uirernents for• a cable franchise, but it would
seem reasonable that they maintain installer service on a daily
basis, seven days a week , to provide adequate and emergency
service for the community.
If the foregoing is helpful in requiring better service for the
community, then I have made my point.
Leonard B. Liberman
LBL:s
CC: Ben Nichols
Robert Fletcher
CITY OF ITHACA
10B EAST GREEN STREET
` 1 ` u\ \ se—
ITHACA,
ITHACA, NEW YORK 14850
OFFICE OF MAYOR TELEPHONE: 272-1713
WILLIAM R. SHAW - CODE 607
MEMO TO: Mr. Benjamin Nichols, Chairman of the City's Cable Commission
Mr. Joseph Rundle, City Clerk
•
FROM: Mayor Bill Shaw
DATE: April 8, 1982
SUBJECT: State of New York Commission on Cable Television -
Channels and Facilities for Locally Originated. Educational and
Public_Service Programming.- Docket No. 90174
ORDER- ,-ADOPTING :REGULATLONS- (Adopted - March -24", 1982.)
Attached -hereto please find the above,entitledcorrespondence for
your information.-
BS:r
ATTACH.
"An Equal Opportunity Employer with an Affirmative Action Program"
82-067
STATE OF NEW YORK
COMMISSION ON CABLE TELEVISION
In the Matter of
Channels and Facilities for Locally' )
Originated Educational and Public ) DOCKET NO. 90174
Service Programming )
ORDER ADOPTING REGULATIONS
(Adopted: March 24, 1982 ; Released: March 25, 1982 )
On January 11, 1980, we issued a Notice of Inquiry and Pro-
posed Rulemaking in Docket Number 90174 (80-007) wherein we pro-
posed to adopt rules governing Channels and Facilities for Locally
Originated Educational and Public Service Programming to be pro-
vided by cable television systems operating in New York State. In
addition, we invited coumients on the Inquiry and Proposed Rulemaking
and received the same from approximately fifty (50) interested in-
dividuals, cable companies, access groups and municipal officials.
Due to the high level of interest in this rulemaking, the Commission
held in the fall of 1980, a series of public hearings in Rochester,
New York City and Albany which gave the public an additional oppor-
tunity to comment on the proposed rules. Having completed our re-
view of the written comments filed in response to our proposal and
the oral testimony givenat the hearings, we are now prepared to
adopt the annexed rules concerning Channels and Facilities for
Locally Originated Educational and Public Service.Prograuuning.
The comments filed in this proceeding addressed many issues.
However, the issue that attracted the most attention was the neces-
sity of having any rules in this matter at all. We will address
this issue and then consider the comments filed with respect to the
other major subject areas.
Necessity of "Access" Rules
Many cable companies, including the New York State Cable Tele-
vision Association ("Association"), argued that there was no need
to adopt the proposed rules. It was their opinion that the matter
of localchannel and facilities should either be left up to the
local municipalities or to the companies themselves. Moreover, the
"Association" stated that the requirement to provide channel space
and facilities may be in violation of the First and Fifth Amendments
to the United States Constitution.
In direct opposition to the "Association's" position is the
National Federation of Local Cable Programmers ("NFLCP") and other
access organizations who believe the Commission should not only
adopt the proposed rules, but should also strengthen them in order
to insure meaningful growth of the access movement.
We belive that the mandate of the Legislature is clear and
that article 28 of the Executive Law at section 815(2)(b) requires
the Commission to adopt rules in this matter. Moreover, we are
concerned that unless we reserve some channel space today for these
purposes, there may be a time in the near future when even the
-2 -
larger capacity cable system will be near saturation. Therefore,
in order to ensure that cable television systems in the State serve
the important programming purposes that the Legislature established
this Commission to protect, the channel capacity will be reserved
now.
Specificity of "Access" Rules
Many of the comments received addressed the issue of specificity
of the proposed rules. Access organizations, such as the Rensselaer
Access Council, Telecouuuunity and Tompkins Community Access believe
the Commission should be much more specific in defining the exact
amount of channel time and equipment that must be provided by
cable television companies. On the other hand, the "Association"
and,many of the other cable television companies which filed com-
ments believe that the Commission should leave the entire matter
of channel time and.equipment to the franchising municipalities.
In issuing our proposed rules, we deliberately did not specify
the exact equipment that must be provided to fulfill the mandate
of our rule. Furthermore, we purposefully did not define such
terms as "a reasonable amount" of channel time (to be made available
on all systems). We belive that the Legislature intended for the
Commission to adopt a series ofminimum,franchise standards which
would require a varying amount of channel time and equipment de-
pending upon local circumstances. However, we are now convinced
that the proposed rules should be made more specific in order to
avoid the pitfall of one company's definition of reasonable being
entirely different from another. Therefore, we have specified that
at least five (5) hours of time be made available daily on all
systems, two (2) hours of which must be between the
u
and 9:00 p.m., and the hour between 7:00 p.m. and 8:00p.m. is5:t00 p.m,
_be reserved for the use of the State of New York government access
channel. This will fulfill the function of our Commission to set
a framework for local programming while still allowing for flexi-
bility at the municipal level where community prograuuuing needs
and desires can best be implemented. Of course, we intend to monitor
closely the evolvement of access across the State and will be avail-
able to provide assistance to cable companies, municipalities and
access groups.
Funding
Our proposal did not include any language on funding of access
organizations and prograimAng other than requiring that channel
time for access programming shall be provided free of charge. How-
ever, the commentors found that this was a subject area that was
worthy of considerable mention. Cable companies, such as U.S. Cable-
vision Corporation, Granville Cablevision, Inc. (Granville) and
Sammons Communications believe that the proposed requirements would
be very costly and eventually would have to be reflected in the
rates that subscribers pay. Granville stated that "the rules would
help promote a virtual freeze on new system construction."
The NFLCP, Anne H. Stonehocker, Telecouuuunity and Manhattan
Councilmember, Ruth Messinger, represent a number of persons and
groups who believe that a percentage of the franchise fee paid
-3 -
by cable television companies should be allocated for use by the
organizations responsible for programming the access channels. .
In addition, many felt that the Commission should create a local
programming endowment for the prupose of ensuring a meaningful
growth in community programming.
We are sure that we would not cause a financial burden on
the industry if we adopt the proposed rules. Rather, it is our
opinion that the small costs incurred to fulfill the legislative
mandate will help build a .communications sytem in New York State
that is a model for the rest of the country.
The request for part of the franchise fee and a local pro-
gramming endowment by access organizations is understandable. The
idea is intriguing. However, at the present time, we believe that
we should.monitor the effectiveness of our rules and see ..how success-
ful local entities are at funding and running their organizations.
At a time in the future, after careful evaluation, it may be ap-
propriate for this body to provide financial .assistance in some
form to _local access organizations.
Administrative Entity
We proposed that an entity (e.g., school system, municipal
agency, cable company, community service organization) be designated
by each municipality to be responsible for the operation and ad-
ministration of the access channel. This proposal did not receive
much attention from our couunentors. However, we would like to
clarify that it is our intention that there only be one entity per
cable television system. If a cable company serves more than one
municipality from a single headend, these municipalities are encouraged
to work together to determine and designate an appropriate entity
to administer the shared channel. Our rule will reflect this change.
Implementation
As part of our Inquiry, we requested comments as to when we
should implement the proposed rules. Comments received on this
issue generally recommended that all cable television systems and
municipalities be required to adhere to the proposed rules within
two (2) years.. We have determined that a staggered schedule is
appropriate. All franchises granted, renewed or amended after
July 1, 1982 shall have at.a minimum these provisions. All fran-
chises must be amended to include these provisions by January 1,
1984.
Other Aspects of the Proposed Rules
With regard to other aspects of the proposed rules, not dis-
cussed herein, the rule changes we shall adopt are intended to be
consistent with the form presented in the Proposed Rulemaking.
Statutory authority for these rules is contained in the Execu-
tive Law, sections 811, 815(2)(b) and 816(1).
-4 -
THE COMMISSION ORDERS:
1. Pursuant to sections 811, 815(2)(b) and 816(1) of the Execu-
tive Law the attached rules changes are hereby adopted to modify
part 595 and part 596 of the rules and regulations of this Commission
(9 NYCRR Subtitle R) by adding sections 595.4 and 596.10. thereto
and by adding paragraphs (f), (g) and (h) to section 596.1
Commissioners Participating: George A. Cincotta, Chairman; Michael
H. Prendergast, Vice Chairman; Jerry A. Danzig, Brian A. Luddy,
Theodore E. Mulford, Commissioners.
FRANCHISE STANDARDS
595.4 Required contents of franchises concerning channels
and facilities for public access.
(a) Where -a cable television franchise is awarded; renewed or
amended after July.1, 1982,the franchise will be confirmed or the amen
ment will be approved by the Commission only if the franchise complies
with the provisions set forth.in this section. All cable television
franchises must comply with these provisions on or before Jan.1,1984. I
addition, if a cable television company applies for a renewal gr-
an amendment to a franchise in a municipality which is part of the
same cable television system serving other municipalities from
the same headend, then the company must also apply to all the
other municipalities served by the same system for amendments
to the franchises in conformance with the provisions of this
section.
(b) Every cable television franchise must contain the
following minimum provisions:
(1) permitting access to, and mandating facilities to
make use of, cable television channel(s) by the State
of New York, the local government, educational institu-
tions, or members of the general public for education
and public service programming, municipal services and
local expression, and
(2) specifying the cable television channel(s) and facil-
ities that will be made available for the purposes enumerated
in subparagraph (1) above, and at a minimum, requiring.*
(i)
that
at
ch
day,two hours of which smust vbehbetween theours of ntimenel
hours of 5:00.m.
and 9:00 p.m., shall be made available on all cable television
systems for such purposes and that the hour between 7:00 p.m.
and 8:00 p.m. shall be reserved for the use of the State of
New York government access channel.
(ii) on 12 channel systems, where there is no demand
for access time, such channel time may be used for such
purposes as the cabletelevision system owner or operator
may determine in accordance with the rules established pur-
suant to paragraph (5) of this section.
*Nothing in this rule shall be construed so as to preclude the
designation of additional access channels or equipment by the
franchisee on a voluntary basis, or the result of an agree-
ment arrived at through negotiation between the parties to a
franchise.
-2 -
(iii) that, in the case of 21 channel systems
as defined by section 596.1 of this subtitle, which
have an activated capacity of 15 or more channels, a
minimum of one full-time television channel be provided
for such purposes, and
(iv) that, in case:of augmented channel systems as
defined by section 596.1 of this subtitle; which have an
activated capacity of 15 or more channels:
a. a minimum of one full-time television channel
be provided for such purposes, and
b. a second channel be provided for such purposes
within 6 months of a formal municipal request if
the first such channel has been in use eight hours
per-day_for a -three month period.
(V) -that no charges be made for channel time utilized
for such purposes,
(3) specifying the facilities that will be made available
for the purposes stated in subparagraph (1) above,. and at
a minimum requiring:
that, in the case of cable television systems as
defined in section 596.1(d) of this subtitle serving
3500 or more subscribers, the franchisee provide facilities
and equipment necessary to record and transmit television
programming.*
(4) designating the entity** (e.g., school system, municipal
agency, cable company, community service organization) which
will be responsible for the operation and administration
of such channel(s) and facilities, and
(5) requiring the designated res,ponsible entity to establish
rules regarding channel use within 6 months after the entity is
designated and to file those rules with the New York State
Commission on Cable Television within 30 days after their
adoption; -such rules shall include., but need not be limited
to, the following:
* Nothing in this rule shall be construed so as to preclude the
designation of additional access channels or equipment by the
frrrivednat throughnegotiation result
the to agree-
ment
ae-
nt
aa
franchise.
.**In the case of a cable television company which serves more than
one municipality from a single headend, it is anticipated there
will only be one entity designated jointly by all municipalities
to administer the channel.
-3-
(i) a rule specifying that channel time is
available on a first come, first served non-discriminatory
basis except as provided in subparagraph (b)(2)(i)'herein.
(ii) procedures for scheduling the use.of television
production equipment and for scheduling the cablecasting
of programming on the channels) designated for the pur-
poses enumerated in subparagraph (1) above;
(iii) the charges, if any, to be paid for the use
of production equipment, facilities, and personnel,
(iv) a requirement that a record'be maintained.of
the use of the designated television channel(s), including
the names and addresses -of persons and organizations pro-
viding programming for such channel(s)..; such record to be
available :locally for .public inspection and .retained for
4 minimum of:..two--years . -
(v) procedures for registering and resolving
c'omplain.ts .regarding -channel - availabil it riorities
�1nd usage, Y' 1'
(vi) a requirement prohibiting the designated channel
Lom being used for the promotion or sale of commercial
Products or services, including advertising by or on behalf
'!f candidates for public office.
(6) requiring that the franchisee provide notice to each
subscriber, at intervals of not more than one year, as to
the availability of the television channel and production
equipment and the address and telephone number of the entity
1esponsible for the operation of the access channel(s).
If any clause, sentence, paragraph, section or -part
°-- this rule is adjudged invalid by any court of competent
jurisdiction, such judgment shall not effect, impair or invalidate
the remainder thereof, but. shall be confined in its operation .
to the clause,»sentence, paragraph, section or part thereof
directly involved in the controversy in which the judgment is
rbndered.
TECHNICAL STANDARDS
Definitions
59 •1 f Twelve Channel System. A cable television system
with sufficient bandwidth to amplify and distribute
to subscribers the twelve standard VHF Television
Channels two through thirteen as defined in FCC -Rules
and Regulations Section 73.603. Such twelve channel
system also may amplify and distribute to subscribers
FM Radio Channels.
Twent -One Channel S stem. A cable television system
with su icient ban width to amplify and distribute -
to subscribers twelve VHF Television Channels and up
to nine Mid -band Television Channels.
(h) Au mented Channel S stems. Any
with_sufricient _bandwidth to amplify andedistr.ibutetem
to subscribers;the. twelve VHF::
the-nine_Mid-bandChannels- and .oneVor moreision Super-
.
band -channels.
Super -
(g)
596.10 LOCAL PROGRAMMING CAPABILITY
(a) Every cable television system constructed or sub-
stantially reconstructed after [the effective date
of these rules] shall be constructed and operated
in a manner that ensures that such system is capable
of permitting the dissemination of locally originated
programming.
(b) Every cable television system d f
part which ction
596.1(d of this, as e ined in se
3,500 or more subscribersshallomaintaines rthee to
capability of disseminating locally originated pro-
gramming to its subscribers, and shall maintain the
capability to record and transmit television
programming and to edit and playback prerecorded
television programming.
OFFICE OF
MAYOR
CI'T'Y ®F ITHACA
108 EAST GREEN STREET
ITHACA, NEW YORK 14850
MEMO TO: All Cable Coitmnission Members
Mr. Joseph Rundle, City Clerk
Mr. Martin A. Shapiro, City Attorney
FROM: Mayor Raymond Bordoni
DATE: April 21, 1980
SUBJECT: New York State Commission on Cable Television
Complaint - Ceracche Television Corp.
ELEPHONE: 272-1713
CODE 607
Attached hereto please find a copy' -of the above entitled matter
for your information.
RB:rb
ATTACH.
1�%
NEW YORK STATE COMMISSION •
ON CABLE TELEVISION
TOWER BUILDING, EMPIRE STATE PLAZA
ALBANY, N.Y. 12223
(518) 474-4992
GEORGE A. CINCOTTA - Chairman
perEtVED APR 2
Hon. Edward Conley
Mayor
City of Ithaca
City Hall
Ithaca, N.Y. 14850
Dear Hon. Conley:.
iT6u.
April 18,1980
MICHAEL H. PRENDERGAST
Vice -Chairman
ALBERT E. FARONE
Commissioner
JERRY A. DANZIG
'Commissioner
Enclosed is a copy of a complaint we received from a:
constituent of yours. We received it on April 17, 1980
and forwarded a copy to Ceracche Television Corp.asking,
for a reply within 10 days.
The enclosed is for your information siace this company
is operating within your jurisdiction.
If we can ever be of any assistance to you, d® not hesitate •
to- contact us.
.Enclosure.
Sincerely,
Susan A. Mulhern
Field Investigator
515 Chestnut Street
Ithaca, New York 14850 RECEIVED
April 14,' 1980
NEW YORK STATE COMMISSION ON CABLE TELEVISION
Tower Building
Empire State Plaza
Albany, New York 12223
Attention: Municipal; Consultant
1981111PR 17 Pti 2: 21
Vi VI I
(: ;SLE TELEVISION
Pi/��./—/S
The following will detail my complaints about Ceracche Television, Ithaca, New York,
and their handling of my H.B.O. account. My H.B.O. service had been installed from
October 1979 to this date, at which time I terminated the H.B.O. service by.return-
ing the equipment.
1. At inception, Ceracche insisted on a cash deposit, even'though I have been a
lifelong local resident (I am 32), have excellent credit, and have never had to
pay a deposit for'any. utility. Ceracche representatives informed me that the
deposit would be held by them, with no interest forthcoming, for as long as I
had the' equipment..
This may then be regarded as a one time "premium" to be paid for the H.B.O.
privilege.
2. Reception difficulties were noted by me several times. Repair service was •
prompt blit ineffective. Reception remains marginal, with several channels un-
usable. Reception quality is not as strong or clear as it is with the same set
in other areas of the city.
3. Two separate complaint notes, submitted by me with monthly fees regarding Ceracche
billing practices, have yet to be acknowledged.
. Being dissatisfied with H.B.O. programming, I returned the H.B.O. equipment
and requested my deposit back immediately. I was informed that this would be
sent by check in "4 to 6" weeks. This time period seems excessive and unfair,
as well as being rather one-sided.
Ceracche has my deposit money, I have nothing,
-feted by other deposit accounts.
Thank you for your consideration.
cc: Michael Suhanovsky
CERACCHE TELEVISION
519 West State Street
Ithaca, New York 14850
not even the token interest of -
Gus Baldini
CITY OF ITHACA
1OB EAST GREEN STREET
ITHACA, NEW YORK 14850
OFFICE OF
MAYOR
L
aECEI VEb
MAR 291979.
CITY CLERK'S OFFICE
Ithaca, R. Y.
TELEPHONE: 272-1713
CODE 607
MEMO TO: Mr. Joseph Rundle, City Clerk
Mr. Raymond Bordoni, City.!s. Cable: -Commission
Mrs. Ethel Nichols, Chairman of the Charter and Ordinance Comm.
FROM: Mayor Edward J. Conley
C/
DATE: March 26, 1979
SUBJECT: Letter from Ceracche Television
Attached hereto please find a copy of a letter from the Ceracche
Television addressed to the New York State Commission on Cable
Television in regard to television reception for Hellen Klager,
for your information.
EJC:rb
ATTACH.
L7 CERACCHE
TELEVISION
A DIVISION OF AMERICAN TELEVISION 8 COMMUNICATIONS CORP.
519 West Stale Street. Ithaca. N.Y. 14850 (607) 272-3456
March 21, 1979
John A. Perkins
Field Investigator
New York State Commission on Cable Television
Tower Building, Empire State Plaza
Albany, New York .12223
Dear Mr. Perkins:
In reference to your letter of March 14, concerning television
reception for Hellen Klager, P.O. Box 794, Ithaca, New York,
corrective action has been taken.
A break in the main cable line was discovered and repaired on
March 19, 1979 by our staff. Our staff has checked Ms. Klager's
television reception after the repair was made and found it to
be normal.
We hope that these actions satisfy the requirements of the State
Cable Commission.
CC: Hellen Klager
City Cable Commission
City of Ithaca
Sincerely,
/I \J J%.
Mary .' Richards
Inters 1 Operation's Manager
OFFICE OF
MAYOR
CITY OF ITHA
108 EAST GREEN STREE
ITHACA, NEW YORK 148
L EPH O N E: 272-1713
CODE 607
MEMO TO: Mrs. Ethel Nichols, Chairman of the Charter and Ordinance Comm.
Mr. Raymond Bordoni, Cable Commission
Mr. Joseph Rundle, City Clerk
FROM: Mayor Edward J. Conley, e
DATE: March 15, 1979
SUBJECT: T.V. Cable
Attached hereto please find a letter received today from the New York State
Commission on Cable Television along with a copy of a complaint they received
in regard to Ceracche's Cable, for your information.
EJC:rb
ATTACH
NEW YdRK STATE COMMISSION
ON CABLE TELEVISION
TOWER BUILDING, EMPIRE STATE PLAZA
ALBANY, N. Y. 12223
(518) 474-4992
GEORGE A. CINCOTTA - CHAIRMAN
Honorable Edward Conley
Mayor, City of Ithaca
City Hall
Ithaca, NY 14850
JERRY A. DANZIG ALBERT E. FARONE
VICE-CHAIRMAN COMMISSIONER
MICHAEL H. PRENDERGAST ROBERT F. KELLY
COMMISSIONER COMMISSIONER
THOMAS E. RYAN
EXECUTIVE DIRECTOR
March 14, 1979
Dear Mayor Conley:
Enclosed is a copy of a complaint we received from a
constituent of yours. We received it on March 12, 1979
and forwarded a copy to Ceracchi Television Co. as
�Cing
for a reply within 10 days.
The enclosed is for your information since this com-
pany is operating within your jurisdiction.
If we can ever be of any assistance to you, do not
hesitate to contact us.
Sincerely,
Join A. 'er'kIns
F field Investigator
JAP :c s
Enclosure
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1\LCLE-y' EL OCT' 3 t 137/
STATE OF NEW YORK
COMMISSION ON CABLE TELEVISION
•J•.,
• '•'1"" rR.! -
In the Matter_of • . , _
•) ••
•
The direct passing-throngh:to subioribers.of.copy-)..bocket N
•
right licensing leWasbeed;pgainst-O4ble: tele- ).
vision syp.tem0pursuant t6::the'RekriSed Federal: ;).
Copyrightliatute 17 'U.S.C:Aec:_101.'.etseo. .)
CLARIFICATION OF POLICY
107 Re1esed Otober: 22.6
r. A !..V4 . •: ; s. , • v: . . _ 1977)
A cable television franehiie-May not belexercised.in,the_State
of New York 'without the piidrapikoval of.this,Commission. Likewise,
no franchise amendment is 'effective withont:prior,dommission approval.
From time to time We have been asked to approve franchise provisions
that would -permit thefi.anchisee,to'automatically increase its rates
to reflect any copyright liability imposed upon it. Copyright lia-
bility will become ekfective.January'l, 1978, Federal Copyright
Statute, 17-U.S.C.A.--Sec. 101-et-seo. We are today adopting a policy
clarifying our position relative bo such pass-through provisions.
Since we were first called upon to reviewcopyright pass-through
provisions we have uniformly withheld approval of those provisions.
In some instances we reserved jurisdiction to the extent of requiring
our approval, although not -that of the municipality, prior to the
implementation of any-fate-IncreaSe 'pursuant to the pass-through
provisions, recOgniiinCthe 'copyright pass-through clauses as fran-
chise provisions anthorlzed'by'a municipality in advance of their
applicability. Rensselaer- Countytablevision Corp., Order Granting
Certificates of Confirmation, June.28, _1976; Bethlehem Video, Inc.,
Order Granting Certificate'of Confirmation, December 2, 1976. In
another instance we noted that Onr.podition.relative to the copyright
issue was under eview and we withheld_approval of the.pass-through
provision "subject toany future decision we makejn connection with
the issue of copyright liability." Sammons Communications, Inc.,
Order Approving Amendments, Adopted: March 22, 1977; Released: March
23, 1977. These decisions, of course, were made at a time when the
issue of copyright liability for cable television systemswas an open
one. With the adoption of the Revised Federal Copyright Statute,
\•(\c c•c\vi_ )
x\f\cz.
-2-
• N./
which does im1325ge copyright liability on cable aystems and
renders copyright fees for cable companies a concreteyeality,: ‘,1
we feel a definitive statement by us enunciating and clari
fying our policy_ relative to thedirect_passing7through. to,
subscribers of copyright liability istimely. We empbasize::.•
that it is not our purpose. or -intenticin-.here-,tO. analyze or
explain the Federal Copyright Law. Rather; we are addressing
a single question as it *relates to'cable Systeras in the State -
of New York: May a cable television franchise provide for
automatic adjustments to.. subscribers bills to reflect copy-
right fees assessed against a cable. sYstem,ln_the„State of
New York, 'pursuant. to the Revised Federal Copyright Law?
One -of the -effects-of-the Reyised.,Cppyright...-Law is to ,
subject the secondary transnii:SaiOiis7t;y: cable syStemsto comr.„.
ptil-aory licensing:. *17 U.S.CA.:.$e6 .- _111 (d) Licensing fees
will bepaid by 'table systems - to' the Regiat'ar•Pf Copyrights
pursuant to a rbyaltieS '_foriiiula as set _out in detail in the •• , ,s..: • .
Federal, Copyright Statute; 17 -11.S(d) Theae,
lisensing , or royalty, fees; long.AnticiPated2.by.'the cable
industry, are the subject of the copyright liability pro-
visions we have encountered in franchise agreements. .
. The :copyright-:)feea. Imposed -upon cableystem. as a; result, . Li:.
of the Revised :Copyright Statute are best described as items
of the cost, of .doing bugineas. ..Were we to approve franchise ,
provisions which -.provide for the automatic -increase :in a sub-
scriber's bill to ,.refleet.,his prOrrata.
fee, we would be approving the direct .passing -through to .
subscribers of an item of cost. We cannot endorse such a
concept. While we recognize that o-yerall, costs affect the .•
price charged for a service, we must also -recognize that it
is not "an established business principle that the amount -7
charged for a service .reflect eachandevery shift ln_the-
cost of providing :that service. If that were the casa,..the
price for a service would be flue-tuating, constantly, with
customers ° bilis reflecting both increases and decreases. in
an indUatryts costs: - Experience .shows, of .,course, that .this.,
•
is not the case..
We are accordingly announcing -.that .it_is.-and will be.
the—policy of this Commission to withhold approval of any and
all franchise provisions which permit, impliedly or specif-
ically, the automatic adjustment of a cable company's rates
•
- 3 -
to-
to reflect copyright fees imposed upon it as a result of the Revised
Federal Copyright Statute. Those cases which we have held open to
the extent of requiring the cable company involved to obtain our
approval, although not that of the municipality, prior to the
implementation of any rate increase pursuant to copyright pass-
through franchise provisions, are hereby closed and the provisions
disapproved. See specifically, Rensselaer County Cablevision Corp.,
Order Granting Certificate of Confirmation, October 9, 1975;
Rensselaer County Cablevision Corp., supra, June 28, 1976; and
Bethlehem Video Corp., supra, December 2, 1976. Likewise, our Order
which we left open to the extent of being subject to any future
decision in connection with the copyright liability pass-through
issue, is hereby closed and the pass-through provision disapproved.
Sammons Communications Inc., supra.
Finally, we call attention to the fact that the Revised Copyright
Statute is scheduled to go into effect on January 1, 1978. We
therefore advise the cable companies and municipalities that any
Petitions for Reconsideration of our decision should be filed
promptly so that thismatter be resolved before the January 1
effective date.
Commissioners participating:_ Robert F.- Kelly, .Chairman;_
Jerry A. Danzig, Vice -Chairman; Michael H. Prendergast,
Albert E. Farone, Commissioners.
STATE OF NEW YORK
COMMISSION ON CABLE TELEVISION
In' the -Matter of
Billing Practices of Cable
Television Companies
Docket No. 90040
EXTENSION OF TIME TO FILE COMMENTS
(Issued: October 14 1977)
77-179
This is to advise that the date for filing comments
concerning the Commission's Proposed Rulemaking on Billing
Practices of Cable Television Companies (Docket No. 90040)
has been extended to Thursday, November 17, 1977. The date
for submission of replies to the original comments of others
has been extendelto Monday, December 19, 1977.
These extensions have been granted at the request of
Warner Cable of Olean and the staff of the Senate Administrative
Regulations Review Committee.
-Thomas E. Ryan
Executive Director
STATE OF NEW YORK
.COMMISSION ON CABLE TELEVISION
In the Hatter of
The Definitions of "cable television system"
and "master- antenna television system" --
Sections 812 (2) and 812 (6) o the Executive
Law
)
)
) Docket No. 90085
)
)
)
CLARIFICATION OF POLICY -
(Issued: October 22, 1976)
Every cable television system in the State of New York is
subject to the provisions of Article 28 of the Executive Law and the
jurisdiction of this Commission. The definition of "cable tele-
vision system" (cats system"), excludes from the authority of this
Commission any "master antenna television system" (20maty system").*
We are today adopting a policy clarifying the statutory definitions
of "cable television system" and "master antenna system", and there-
by clarifying the scope of Article 28 and our regulatory responsi-
bilities.
From time to time we have been asked to determine whether
a particular signal distribution facility is a "cats system", as
defined by Section 812(2) of the statute,** subject to our juris-
diction or whether it is an exempt "maty system",*** as defined by
Section 812(6). In one case, we issued a Declaratory Ruling and
Order in which we determined that a signal distribution system
serving a condominium development constituted a nonexempt catv -
system. :Application of the Village of Churchville for a Declaratorj
Rulin Concerning Ehrmentraut Cable TV Inc., Declaratory Ruling and
Order Continuing Temporary Operating Authority, Docket No. 90011,
January 9, 1976. In another case, we advised the City of New York
that pursuant to Section 812, "a master antenna television system \.
that began to deliver subscription programming would cease to be a
master antenna television system." Letter dated November 14, 1975
to Morris Tarshis, Director of Franchises, City of New York Board of
Estimate from Robert F. Kelly, Chairman,
* Both "cable television system7° and "master antenna television
systems' are defined in Section 812 of the Executive Law.
** Section 812(2) has recently been amended. Laws of 1976, Chapter
654. The reasons for the amendment are set forth in licKinney" s
Session Law Mews, August 25, 1976, pp. A-364-365.
*** Subparagraph (a) of Section 812 (2) also exempts from catv system
eltarlic "any system which serves fewer than fifty subscribers."
2
We have received another reouest for a ruling concerning
the scope of the matv system exemption* and we believe it is
appropriate to clarify our policy at this time with respect to the
catv system - maty system issue. Specifically, we wish to address
the matv system exemption as it pertains to signal distribution
facilities located in large apartment buildings. We do not intend
to discuss Sections 312(2) and 312(6) as they may relate to signal
distribution facilities located in colleges or universities, hospitals
or other public or private educational, cultural or health institu-
tions. However, we wish to make clear that signal distribution
facilities serving such entities as condominiums, cooperatives,
trailer parks and multi -functional environments are subject to the
same considerations as those located in apartment buildings for pur-
poses of determining exempt status. In this regard, we wish to
review the elements of a catv system as defined by Section 312(2)
and to enumerate the services that may be carried on en matv system
without jeopardizing its exempt status. In addition, existing systems
which, pursuant to this clarification are determined to be within
the jurisdiction of the Commission, shall be provided an opportunity
to comply voluntarily with Article 28 of the Executive Law over a
period of time.
Because of the fundamental nature of the catv-maty defini-
tion issue, the significant issues of policy involved and the sub-
stantial conseruences of our action today, we invite comments from
any and all interested parties on the general policy enunicated.
In addition, we also invite comments on specific issues as here-
after discussed.
Cable lesion System
As noted, the term 'cable television system" is defined in
Section 312 (2) of the Executive Law. Section 312 (2) provides as
follows:
"Cable television system' shall mean any system
which operates for hire the service of receiving and
amplifying programs [**J broadcast by one or more tele-
vision or radio stations or any other programs origi-
nated by a cable television company or by any other
party, and di tributirag such programs by wire, cable,
microwave or other means, whether such means are owned
* Letters dated March 31, 1975 and April 14, 1976 to the Commission
from GSL Electronics, Inc., Buffalo, New `Lore.
[**]Section 812(11) of the statute defines "program' as "any broad-
cast -type program, signal, message, graphics, data, or communication
content service."
a
-3-
or0
or leased, to persons who subscribe to such
service. Such definition does not include:
(a) any system which serves fewer than fifty
subscribers; or (b) any master antenna tele-
vision system.
Pursuant to Section 812(2),.a signal distribution system
to qualify as a catv system must satisfy four criteria. The particu-
lar system must:
1. operate for hire
2. receive and amplify programs, i.e., broadcast -type
programs or signals or messages or graphics or data or communication
content services, and
3. distribute said programs by wire, cable microwave or
other means
4. to .persons who subscribe.
Criteria 2 and 3 are extremely broad and encompass every signal dis-
tribution system that we have encountered to date. We do not antici-
pate that any system will fail to c{ualify as a catv system because
it does not satisfy these criteria.
The requirements that a catv system "operate for hire" and
"provide service to persons who subscribe" are more significant in
determining whether a system is a catv system and are particularly
relevant to the issue of the matv system exemption. Indeed, we
believe it is necessary to discuss these criteria in the context
of the matv system exemption.
Clearly, a catv system is operated "for hire' where the
person providing the service imposes a charge upon the recipient of
the service. In the case of a traditional cable system, the charge
is the monthly rate or rates for the particular service or services
provided. In the case of a traditional matv system* the ouestion of
whether or not service provided by the landlord to tenants is "for
hire" may not be self-evident. For example, matv service may be
available to all tenants as one of a number of services provided by
the landlord in exchange for the monthly rent. On the other hand,
* For the purpose of discussion, we consider a traditional matv
system to be one that provides adeouate television reception to
tenants in an apartment building from a single rooftop antenna owned
and maintained by the landlord rather than multiple rooftop or set
top antennas owned by the individual tenants.
a landlord o or the agent of e landlord - might impose a separate
additional charge upon only those tenants who chose to receive the
maty service or particular `:extra' service distributed over the
so-called maty :system. In the former case, it may ergued that
the systea is not operated "for hire' since it is but one of many
services for which no direct payment is made. In the latter case,
even though a separate, direct payment is reouired, it also could
be argued that the system should not be considered to be operated
"for hire' since it is incidental to the landlord -tenant relation-
ship.
elation-
ship.
We have rejected these arguments and have concluded that e
system is opereted 'for hire" whenever any payment . _ direct or
indirect o is made by the party receiving service, e.g.,.a tenant,
to the party responsible for the provision of the service, e.g., a
landlord.* In this regard, we note that a more limited construction
* We note that the Federal Communications Commission (FCC) has
previously adopted a similar position. In its Memorandum Opinion
and Order in Docket 18397, FCC 71-258, 28 FCC 2d 13, 15 (1971), the.
FCC stated:
Whether payment is on a periodic or occasional basis,
and whether it is a separate payment or only an
unspecified element of e dwelling, rental charge is
immaterial.
Later, in its Notice o Proposed Rulemaking in Docket No. 20561, FCC
75-896, 54 FCC 2d 824, (1975), discussing the scope of its catv
system definitien, the FCC noted with respect to the issue of payment
as follows:
In short, we have not found the manner of payment to
be of jurisdictional significance. For definitional
purposes, it does not matter whether the payment is
separate cr combined with a general service, recre,-
ational or rental fee, whether the payment is made
directly or through some intermediary such as a home-
owners association, whether the payment is in the
form of a capital contribution or service fee, or
whether the bulk payment is made for a number of
subscribers rather than an individual payment for
each subscriber.
And, in a recent case, the FCC ordered a mobile home park to show
cause why it should not'be ordered to cease and desist from further
operation where ". the cost of operating the cable facilities
. . . [was] paid for from fees received from occupants of the spaces
rented by the mobile home park. Mobile Home Co ununities , Inc . ,
Docket No. 20884, FCC 76720, 60 FCC 2d (adopted: July 27, 1976).
e5_
of the "for hire90 language would exclude from catv system status
many, if not all, traditional matv systems, without any considera-
tion of whether a particular system is also consistent with ari matv
system as defined in Section 812(6). If, for example, we were to
conclude that the C°for hirei° requirement is not satisfied in any
case where a signal distribution system is operated by, or on behalf
of,,a landlord for the benefit of tenants, the services provided on
such a system could be expanded to include a variety of services
far in addition to those permitted of an exempt matv system by
Section 812(6), infra pp. 6-3. Or, if we construed the "for hires`
language to include only those cases where a direct, separate pay-
ment is made by the tenant for service, then there would likely be
no need to apply the matv system definition in the large majority
of cases at issued We must conclude, therefore, that the legislature in
specifically exempting and then defining an P°maty systemGP intended
that the definition be applied to determine the scope of the exemp-
tion and we must reject any construction of the catv system
definition in Section 812(2) which would effectively nullify the
relevance of the specific definition of an matv system.
The fourth criterion e that service be provided to persons
who subscribe e is closely related to the "for hire" requirement
and is subject to a similar analysis. Here again, the central
question is whether, in a landlord -tenant situation, payment o
direct or indirect v by the tanant to the landlord is sufficient
to satisfy the statutory criterion. For the reasons discussed
above, we conclude that it is and, accordingly, that a tanant is
also a subscriber where any payment is made to a landlord who pro-
vides a signal distribution system for the benefit of his tenants.
It is apparent from this construction of the catv system
definition that few traditional matv systems will be outside the
definition. However; even though a particular system qualifies as
a catv system it may also be exempt from the provision of Article
23 pursuant to Section 812(2)(a) or Section 812(2)(b). Section
812(2)(a) exempts from catv system status "any system which serves
fewer than fifty subscribers." The less than fifty subscriber
exemption is self-explanatory except to note that we have previously
determined that in applying the exemption we will consider the
number of subscribers served from a single headend.* Section
812(d)(b) exempts from catv system status "any manster antenna tele-
vision system."*''•, As noted, the term 73master antenna television
system is defined in Section 812(6) of the statute. It is now
necessary to review Section 812(6) to determine the scope of the
exemption.
* Ontario Cable Television, Inc., Order Granting Certificates of
Confirmation, March 12, 1975.
** It should be noted here that the two exemptions are not exclusive
and that a system operated by a landlord for the benefit of tenants
could qualify as exempt by virtue of having less than fifty sub-
scribers even though it does not qualify as an matv system.
Master Anten a Television syster<i
Section 312 (6) of the Executive Law provides as follows
'Master antenna television system" shall mean
any system which serves only the residents of one
or more apartment dwellings under common ownership,
control or management end any commercial establishment
located on the premises of such aoartment house and
which transmits only signals broadcast over the air
by stations which may be normally viewed or heard
locally without objectionable interference, and which
does not provide any additional service over its
facilities.
An matv system to be exempt from catv must satisfy two basic
criteria. The particular system must:
1. serve only the residents of one or more apartment
dwellings under common ownership, control or management end any
commercial establishment located on the premises of such apartment
house, end •
2. transmit only signals broadcast over the sir by
stations which may be normally viewed or heard locally without
objectionable interference and no additional services.
In the Village of Churchville Order (supra, p. 1), we.
discussed both criteria in ruling that the particular signal dis-
tribution system there involved was a catv system and not within
the matv system exemption. First, we noted that "Section 812(6) of
the Executive Law appears to contemplate that an matv system will
serve only apartment dwellingslocated within a single apartment
house,°?*(p.3) and went on to state that ''[f1acilities serving
apartments . . . in many buildings . . . will not be deemed to be an
matv . . .`B Pe have since reconsidered this position and have deter-
mined not to adhere to the single house standard. Rather, we shall
consider a catv system eligible for the matv system exemption even
if it serves residents of two or more buildings provided that (1)
the buildings are commonly owned or managed, (2) the buildings ere
contiguous and located on the same parcel of lend, and (3) no wire
or cable traverses a public street or right-of-way. In adopting
* We noted, however, that condominium ownership would not preclude
compliance with this criteria.
7
this new standard, we believe we are giving proper consideration to
the legislature's interest in protecting the right of a tenant to
matv service as manifested by Section 323(3) of the Executive Law.
Section 323(3) provides as follows:
No cable television company may enter into any
agreement with the owners, lessees or persons con-
trolling or managing buildings served by a cable
television, or do any act., that would have the effect,
directly or indirectly of diminishing or interfering
with eyristing rights of any tenant or other occupant
of such building to use or avail himself of master or
individual antenna ec uipment.
if a tenant pursuant to his lease has a right of access to a master
television antenna system and the particular system otherwise satis-
fies the statutory definition of an maty system but serves tenants
in two or more contiguous buildings under common ownership, the
right of the tenant might be adversely affected by a construction of
the matv system definition which limits service to only one house.
For this reason then we shall reverse our decision in the Village of
Churchville Order insofar as it relates to the ''`single house"
standard.
Second, Section 812(6) permits an matv system to carry only
broadcast signals 'normally viewed or heard without objectionable
interference.' The definition clearly states that no additional
service is permitted. in the V11 a.,e of Churchville Order we made
en interim holding thet "the carriage of a signal outside its
predicted Grade B contour will establish a presumption that the
system carrying the signal is not an MATV." shall adhere to' this
standard for the present and expand upon it only by emphasizing that
the burden of rebutting the presumption is on the party seeking the
exemption. However, we are mindful that other standards could be
employed and, accordingly, we shall invite comments on whether
another standard would better implement the statutory language.
Specifically, we would ask parties to address the issue of whether
an matv system, by virtue of a more sophisticated antenna, sriould be
permitted to carry signals not available by means of a common roof
top antenna to private homeowners in the immediate area and, if so,
what effect, if any, this would have on the efforts of a locally
f,- nchised cable television company to market its service in
mu tiple dwellings.
-8 -
Finally, it should be emphasized that pursuant t, Section
812(6) a system cannot qualify for the matv system exemption if it
carries any non -broadcast services. This restriction would appear
to reflect a legislative determination that an matv system is merely
a substitute for free off -air television reception enjoyed by private
homeowners and should be limited to broadcast services. We already
have noted the statutory protection of existing rights of tenants to
matv service. Supra, p. 7. Certainly, the carriage of a non -broad-
cast service such es pay tv or premium programming should subject any
system .to the provisions of Article 28 and the regulatory goals of
the Commission. However, we are concerned that the statute by
denying matv status to a system providing a non -broadcast service,
such as a surveillance channel, may be too restrictive and we invite
comments on whether it would be appropriate to seek legislation which
would permit limited non -broadcast services consistent with the matv
system. exemption.
Compliance with Article 28
Compliance with Article 28 of the Executive Law is required
of every cable television system in the State. We have attempted by
this statement to clarify the statutory definition of a cable tele-
vision system and, in accordance therewith, the master antenna tele-
vision system exemption so that every landlord in the state who pro-
vides a signal distribution system for his tenants might readily
determine the status of his system. We believe this effort is neces-
sary for two reasons. First, as noted, we have received reouests for
rulings concerning the scope of the matv exemption and, in anticipa-
tion of more reouests, it is necessary to have a general policy upon
which to base our rulings. Second, we admit to a growing concern
over the proliferation of the services being proposed for, or being
provided by, so-called matv systems and the potential impact of such
services on franchised cable television systems.* It is important,
therefore, to give greater public exposure to the statutory limita-
tions. With respect to the latter, we note that our concern is not
isolated. Cn April 15th of this year, the Canadian Radio -Television
and Telecommunications Commission issued a public Announcement ex-
pressing its intention to begin exercising jurisdiction over matv
systems in which it stated its concern "with the effect on the broad-
casting system of the growth of unregulated cable systems in densely
populated urban complexes.'" That Commission also summarized an
approach to the maty system issue which is consistent with our view
and, we believe, Article 28. The Canadian Commission stated at page
3 that:
* For example, the re -quest filed by GSL Electronics, Inc., supra,
p. 2, indicates that the company would offer apartment buildings
improved antenna service to permit the reception of additional off -
the -air signals and a movie service which would originate on a video
tape recorder located in the basement.
-9-
. . . to the extent that a MATV system
is analogous to a home -owner's roof -top antenna
in both its configuration and its range of ser-
vices., it should be exempted from Commission
regulation. To the extent that a MATV system
goes beyond what a homeowner's roof -top antenna
system will do, however, whether by using public
rights of way and air space, by supplying extra
programming services, by being operated for di-
rect commercial gain, etc., it must, to protect
the integrity of the broadcasting system, be
subject to regulation by the Commission.
We fully expect that as a result of this statement a num-
ber of landlords will realize that their systems are not matv sys-
tems as defined by statute but catv systems -subject to Article 28.
We do not, however, intend to take immediate action to enforce com-
pliance with the provisions of Article 28. Both practical and policy
considerations require that we take a different approach. First of
all, we note the potentially large number of signal distribution
systems serving multiple dwelling units in the state in relation to
the limited staff available to us. Second, we are mindful that prior
to this ruling, many owners cf systems may have reasonably considered
themselves to be master antenna television systems or otherwise ex-
empt from Article 23 cf the Executive Law and cur jurisdiction. We
believe, therefore, that it would be injudicious for us to commence
efforts at this time which might result in the termination of all
services. Rather, we shall permit all existing non-exempt catv
systems serving multiple dwellings until July 1, 1973 to reduce their
services in order to satisfy the matv system exemption or, alterna-
tively, to comply with the provisions of Article 28. (The first
step toward compliance with Article 28 is to obtain a franchise as
required by Section 819.) .We anticipate that most systems will
choose to reduce services to gain the matv system exemption and we
encourage them to do so.
Of course, we intend to enforce Article 28 immediately
with respect to the commencement of operations of any new service
after the date of this clarification.
Finally, we wish to reiterate our interest in receiving
comments on the matters discussed herein. Because of the signifi-
cance of the issues involved, we shall extend the usual 20 -day period
for filing comments to 60 days or December 21, 1976. Reply comments
may be filed within 30 days thereafter.
Commissioners Participating: Robert F. Kelly, Chairman; Jerry A.
Danzig, Vice -Chairman; Michael H. Ptpndergast; Edward J. Wiegman,
Commissioners.
New York State Commission onCab"te Television
Robert F. Kelly, Chairman
Alfred E. Smith State Office Building
Albany, New York 12225
C. Lynn Wickwire
518-474-1022
NEW YORK STATE UNIFORM ACCOUNTING SYSTEM
RECEIN
En NOV -.5 10?k,
FOR RELEASE:
IPM'1EDIATE, MONDAY
NOVEMBER 4, 1974
The New York State Commission on Cable Television today
announced the adoption of a Uniform Accounting System (UAS)
consisting of a number of record-keeping and reporting
requirements for use by all cable companies in the State. The
current Rules are concerned primarily with the record-keeping
requirements with a further order to be issued by the end of
the year dealing with reporting requirements. The Commission
noted that staff will be available, upon request, to assist
cable companies in implementing the UAS.
Those companies with gross annual revenues of more than
$150,000 must maintain books of account in accordance with the
chart of accounts set forth in the Rules. Companies with less
than $150,000 in gross annual revenues are only required to
maintain certain basic accounting records that will accurately
disclose the conditions and results of the business. Even
though it is not a requirement, the smaller companies are
encouraged to adopt the prescribed accounts.
Robert F. Kelly, the Commission's Chairman, indicated
that the Commission would require annual financial reports,
varying in their degree of detail, from all cable television
companies and that the first such reports will be due in the
Spring of 1975. He stated it is the Commission's intent that
companies having $150,000 in gross annual revenues for the
fiscal year ending on or before December 31, 1972 will be
required to submit a complete set of financial reports for
1974. Chairman Kelly also noted that due to the number of
comments objecting to the complexity of the original
reporting forms, the Commission intends to prescribe an
extremely simplified form for the very small cable television
companies.
The Uniform Accounting System does not require any immediate
action by, or changes in, the day to day accounting procedures of
any cable television company. Action is required only at the
close of each calendar year to adjust all account balances and
transaction totals for°the year -to -conform with._the requirements
of the UAS.
The Commission noted that, based upon the UAS-9_-the New York
State Board of Equalization and Assessment will accept a copy of
the required financial reports in lieu of financial reports
heretofore required by the Board and would not impose any uniform
accounting requirements of its own. The Commission's new rules
also include a prohibition against any municipality imposing any
accounting requirements inconsistent with the Commission's UAS.
The Commission stated that the standardized accounting
practices and annual reports required by the new system will
improve the Commission's ability to analyze applications and
Page 2 November 4, 1974
increase its knowledge of the financial standing of cable companies
operating within the State in accordance with responsibilities
prescribed by the Executive Law. In the Order adopting the UAS,
the Commission found that not one of the dozen largest cable
television companies in the State maintained its books of account
in a manner consistent with the record-keeping practices of any
other such company. The UAS avoids the rigorous requirements
applied to rate regulated utilities, but assures that uniform data
will be reported for the State Commission's purposes.
Prior to the adoption of the UAS, comments were sought and
received from the New York State Cable Television Association, a
number of cable television companies, and public accounting firms
serving cable interests. Based upon the comments, a number of
amendments were made to the proposed Uniform Accounting System
issued publicly in December, 1973. According to Robert F. Kelly,
Chairman of the Commission, "The amended Uniform Accounting
System represents a fair and reasonable accommodation of the
interests of all affected parties."
The Commission also consulted with the FCC, Cable television
associations, and other state and federal agencies to minimize
duplication of efforts and forms. The Commission is continuing to
work with the FCC, NCTA, and other states toward the development
of a prototype accounting system for eventual use by all states
and the FCC.
-0-
STATE OF NEW YORK
COMMISSION ON CABLE TELEVISION
In the Matter of
Uniform Accounting and.Financial Reports )
• ORDER AND. OPINION. ADOPTING
UNIFORM ACCOUNTING SYSTEM
(Issued: November 4, 1974)
Docket No. 90031
By notice issued December 13, 1973, the Commission
proposed the adoption of a Uniform Accounting System to be
applicable to cable television companies in New York State.
In essence, the proposal would have required certain types of
record keeping and periodic financial reporting by all cable
television companies, regardless of size, and adherence to a
uniform chart of accounts by all cable television companies
having at least $100,000 of gross annual receipts. The Commis-
sion indicated in the notice that it intended to adopt the
proposed accounting system sometime during calendar year 1974
and that companies subject to the uniform accounting practices
prescribed by the system would, be required to restate their
accounts for 1974 to reflect the use of the required practices.
Copies of the notice of proposed rulemaking and the
proposal to which it referred were served on every cable tele-
vision company in the state; on every municipality in the state,
on a number of public accounting firms, and on a variety of
other persons and organizations who expressed an interest
therein. In addition, during the month of January 1974, Com-
mission staff members conducted a series of six informational
meetings relating to the proposal with cable television
operators and other interested parties at locations through-
out the state.. These meetings were conducted for the purpose
of publicizing and explaining the Commission's intention to
adopt uniform accounting requirements and for the purpose of
soliciting reactions from those in attendance at the conferences.
,I
- 2
The December 13 notice of proposed rulemaking had.
specified February 28, 1974 as the date for filing written
comments in response to the proposed rulemaking. At the re-
quest of the New York State Cable Television Association and
others, this deadline was extended until May 29, 1974. For-
mal written comments in response to the notice have been
received from seventeen parties.* .These comments, as well
as other comments that were solicited by our accounting staff
during the period since December 13, 1973, have been carefully
considered, and some of the comments are discussed below.
It should be noted that our staff directly contacted a large
number of cable television operators, public accountants,
government accounting officials, and other persons in an
effort to obtain a complete appreciation of the advantages and
disadvantages of the proposed Uniform Accounting System.
After consideration of the comments submitted in re-
sponse to our notice of proposed rulemaking, and based upon
our conclusion that there is a need for standardized record-
keeping and financial reporting by cable television companies
subject to our jurisdiction, we have decided to prescribe a
* Formal comments were received from the following:
National Cablesystems, Inc,; Greenwood. Cablevision; Bangelsdorf,
Piaker, Lyons & Rappaport; NewChannels, Inc.; General Electric
Cablevision Corp.; Viacom International, Inc.; Touche Ross & Co.;
Irwin J. Metzger, CPA; Information Transfer, Inc.; Courier Cable
Co., Inc.; Coopers & Lybrand; TM Communications; Peat, Marwick,
Mitchell & Co.; Steinhauer, Sheiman, Glickman & Co.; New York
State Cable Television Association; Sterling Manhattan Cable
Television, Inc.; and Arthur Anderson & Co.
3
number of record-keeping and reporting requirements,* which we
refer to as our Uniform Accounting System (or UAS). The struc-
ture of the UAS is discussed in part III of this opinion. In
parts I and II, we discuss the question of our authority to
adopt the rules here in question and the considerations which
have prompted us to exercise our authority and which demonstrate
the need for these rules.
I
In our December 1973 notice of proposed rulemaking,
we pointed out that Article 28 of the Executive Law, parti-
cularly Section 816 thereof, conferred the requisite authority
for Commission adoption of the proposed rules. The New
York State Cable Television Association contends in its com-
ments that we are without power to adopt the rules here in
question. This contention is based upon arguments (1) that
Article 28 of the Executive Law does not confer the requisite
authority upon the Commission and (2) that, even if it does,
exercise of that authority would constitute a violation of
the "commerce clause" of the federal constitution. The Associ-
ation also contends that adoption of the present rules is in-
appropriate at this juncture because, in the Association's
opinion, the Federal Communications Commission should be allowed
* The rules adopted by this order consist almost entirely of
record-keeping requirements. Our staff is continuing to re-
view the matter of reporting forms and the related question of
how frequently we should require financial reports from com-
panies subject to our jurisdiction. We intend to issue a
further order prior to the end of this year in which we will
specify the reporting requirements that form a part of our
Uniform Accounting System.
to proceed with its inquiry into the same subject-matter,area.
For the following reasons, andfor those stated in part II of
this opinion, we reject the positions advanced by the
Association.*
A. Contrary to the assertioi of the Association that the
Commission lacks statutory authority to adopt the uniform record-
keeping and reporting requirements here involved, Article 28
of the Executive Law contains ample authority for the imposi-
tion of such requirements. Section 816(1) of the Executive
Law provides that:
"The commission may promulgate, issue,
amend and rescind such orders, rules and
regulations as it may find necessary or
appropriate to carry out the purposes of
this article. . . ."
Section 816(2) of the statute provides that:
"The commission may require cable
television companies to maintain and file
such reports, contracts and statements,
including but not limited to ownership,
accounting, auditing and operating state-
ments, . . .as the commission may deem
necessary or appropriate to administer
the provisions of this article. . . ."
In addition to the foregoing provisions, Section 816(5) provides
that:
"The commission shall have and may
exercise all other powers necessary or
appropriate to carry out the powers of
this article."
* The Association and other parties contend that the rules in
question should be modified to eliminate all of the requirements
for uniformity. Some of the discussion in this part of our
opinion, relating to .the Association's "jurisdictional" argu-
ments, demonstrates why the imposition of uniform requirements
is necessary and appropriate. However, the considerations that
have led us to reject the arguments for non-uniform reporting
are discussed in greater length in part II of this opinion.
5
In our opinion, Subdivisions 1, 2 and 5 of Section 816
of the Executive Law clearly confer on this Commission the req-
uisite authority to adopt the accounting rules here in-
volved. Subdivision 1 makes clear that the Commission's rule-
making authority is as broad as may be necessary to carry out
the purposes of the. statute. Subdivision 2 specifically em-
powers the Commission to require the.maintenance and filing of
"ownership,accounting, auditing and operating statements," and
the rules here in question will require nothing more than the
maintenance and filing of such. statements. Although the Asso-
ciation suggests that the rules here in question and the
accounting requirements imposed by said rules are not directly
related to the Commission's responsibility to carry out and
administer the provisions of Article 28 of the Executive Law,
we show below that the rules and requirements are necessary or
appropriate to the Commission's statutory responsibilities.
And, as subdivision 5 of Section 816.makes absolutely clear,
there can be no argument that in these circumstances the Com-
mission is without authority to adopt such rules or impose such
requirements.*
The. need for uniform data concerning the finances of
cable television companies is. apparent from even the most cur-
sory reading of Article 28 of the Executive Law. An obvious
need for such data is demonstrated by Section 817 of the statute,
which empowers the Commission to assess cable television com-
panies for its costs and expenses in proportion to the various
companies' "gross •annual .receipts", and by Section. 812(5),
which defines "gross annual receipts" as "any and all compensa-
tion received directly or indirectly by a cable television com-
pany from 'its operations within the state, including. . .any
. . .moneys that constitute income in accordance with the system
of accountsapproved by the commission" (emphasis added). This
explicit statutory reference plainly illustrates that the im-
position of a system of accounts (1) was contemplated by the
Legislature and (2) is a necessary and appropriate exercise
of the Commission's rulemaking powers.
* The Association contends that. the Legislature's rejection
of ,a Public. Service Commission -sponsored bill that would have
given the PSC multi -faceted jurisdiction over cable television
companies should be construed as a specific rejection of the
concept of uniform accounting. In view of the explicit language
of Section 816 of our statute, and the numerous other reasons
that may have prompted rejection of the PSC bill, we do not.
accept the Association's interpretation of the legislative history.
A
-6
In addition to the fact that Sections 812(5) and 817
of the statute disclose a need for rules such as those here
involved, many of the Commission's day-to-day regulatory re-
sponsibilities under Article 28 also demonstrate that the
adoption of the rules here in question is necessary and
appropriate. In many instances, which are discussed in
some detail below, the statute requires the Commission to pass
upon formal applications where knowledge of the financial situ-
ation of the cable television company (or companies) or of the
economic feasibility of a particular proposal is essential.
These decisions cannot be made without adequate accounting and
financial information.
-- - In confirming franchises under Section 821 of the
statute or in approving the transfer of cable pro-
perties or a transfer of control of such properties
under Section 822, the Commission is obliged to con-
sider, inter alia, whether confirmation or approval
would violate the public interest. It seems clear
that confirmation of a franchise or transfer of cable
properties in circumstances where the applicant or trans-
feree lacks the financial resources to construct and/or
operate a cable television system wouldbe contrary to
the public interest, and the Commission has in practice
routinely consideredthe financial position of fran-
chisees and proposed transferees in connection with
Section 821 and 822 applications. One of the factors
that has contributed to delays in processing such appli-
cations has been the inability of the Commission to obtain
comprehensive and meaningful financial information.
Adoption and enforcement of the uniform accounting re-
quirements andrequirements for periodic financial reports
should materially facilitate Commission investigation and
decision-making under Sections 821 and 822.* Moreover,
* We recognize that in some instances, the applicant for a Sec-
tion 821 certificate or the transferee in a Section 822 matter
may not be subject to the requirements of our UAS at the time of
the application. However, in view of the trend toward multiple
system ownership, the opposite will be true in many cases,
particularly with respect to larger systems, which are of course
of greater significance for regulatory purposes.
7
adoption and enforceihent of these requirements will also
materially contribute to discharge of our responsibility
under Section 815(2).(c) of the Executive Law, which re-
quires the Commission to "prescribe standards by which
the franchising authority shall determine whether an
applicant possesses. . .the financial ability. . .to
operate a cable television system in the public interest."
-- Section 823 of the Executive Law authorizes the
Commission to require the interconnection of cable sys-
tems and facilities or the coordinated operation of such
systems and facilities upon a finding that interconnection
or coordinated operation is in the public interest. Sec-
tion 823 emphasizes that the Commission "may append to
such order such reasonable terms and conditions as will
best promote the public interest." One of the obvious
considerations that would bear upon the public interest
in such a situation is the cost that might be involved in
effecting the interconnection or the coordinated operation
and the manner in which that cost (as well as any joint
revenues) should be shared between or among the cable sys-
tems affected by such Commission order. Here, again,
adequate accounting and financial data is essential to
a proper discharge of the Commission's responsibilities.
-- Section 824(2) of the Executive Law authorizes the
Commission to require cable television companies to con-
struct, operate, or extend facilities upon a finding
that:
. . .despite its economic feasibility,
the construction or operation of a. . .
cable television system has been unrea-
sonably delayed or that the extension of
service to any persons or area within a
cable television company's territory has
been unreasonably withheld. . . ."
It should be clear that the Commission cannot. properly
assess the economic feasibility, or lack of economic
feasibility, of a proposed project without adequate data
about the cost of the project and its revenue potential.
- 8 -
Although all interested parties may be expected to prof-
fer cost and revenue estimates with respect to any par-
ticular project, the Commission should not be forced to
pass upon the accuracy of those estimates without the
benefit of historical cost and revenue data from the
company or companies involved or from cable television
companies operating in similar service areas. Moreover,
it may also be appropriate to consider financial data
relative to the cable system in question and the company
which operates the system. The rules here in question
will make such data available to the Commission.
-- Section 825 of the Executive Law deals with the rates
charged by cable television companies. It contemplates
that, in the ordinary course of events, such rates will
be established by amendment of the franchise (which, of
course, is subject to Commission review under Section 822
of the statute), but in certain specified circumstances
the Commission itself is required to establish appropriate
rate levels. There can be little serious argument that
the ratemaking process should be conducted, either by
franchising municipalities or by the Commission, without
the benefit of adequate financial information about the
cable television company involved.
-- Section 826(2) of the Executive Law authorizes the
Commission to pass upon proposed abandonments of service
by cable television companies. It would appear that, in
passing upon any proposed abandonment of service pursuant
to Section 826, the Commission should consider the same
sort of "economic feasibility" data which it would be
obligated to consider under Section 824 in deciding whe-
ther to mandate the construction, operation or extension
of the facilities used to provide that service. Thus,
Section 826 provides still another illustration of the
need for adequate accounting and financial data.
-- Section 827 of the Executive Law empowers the Commis-
sion to terminate cable television franchises in certain
specified circumstances. One such circumstance is when
the cable television company:
.has been adjudicated a bankrupt or
has filed a voluntary petition for bank-
ruptcy or reorganization or for an order
protecting its assets from the claims of
creditors and the commission finds that
termination of the franchise or certificate
of confirmation under such conditions is in
the hest interests of the public."
Although no caseshave arisen under Section 827 in the
period since the enactment of the statute, and although
we have therefore had no occasion to interpret or apply
the above -quoted provision, it appears from Section 827
that the Legislature contemplated that bankruptcy or the
other circumstances enumerated in the quotation would not
automatically terminate the franchise obligations of a
cable television company and that the Commission would
be in a position to require the trustee in bankruptcy or
receiver to continue to operate the system, even though
such continued operation might not necessarily serve the
interests of the company's creditors and security holders.
Plainly, the kind of evaluation contemplated by Section
827 is one that should be made only on the basis of
thorough and accurate financial data.
As the foregoing section -by -section analysis of our
statute indicates, the record-keeping and reporting requirements
contained in the proposed Uniform Accounting System are neces-
sary and appropriate to the meaningful discharge of the Commis-
sion's responsibilities under Article 28 of the Executive Law.
The contention of the State Cable Association that the Commission
lacks the authority to impose such record-keeping and reporting
requirements, simply reflects the Association's long-standing
opposition to the enactment of Article 28 itself, and to the
effectuation of the regulatory controls which the Legislature
has deemed necessary.*
* The State Association argues that the decisions in New York
Edison Co. v. Maltbie, 244 App. Div. 685 (3rd Dept., 1935), aff'd.
271 N.Y. 103 (1936), and other cases 'involving the Public Service
Commission show that this Commission is without power to impose
the requirements contained in the UAS. In New York Edison, the
PSC had sought to require certain utilities subject to its juris-
diction to maintain their own books of account in conformity with
certain Commission -imposed accounting procedures, whereas the
rules here involved expressly permit the regulated companies to
continue to maintain their existingbooks, without change, pro-
vided certain year-end conversion procedures are followed. (See
Section 599.21(A)(1) of the rules and the discussion in part III
of this opinion.) In rejecting the PSC approach, the courts made
clear that requirements such as those contained in our UAS would
have.been perfectly acceptable. Thus, the premise of the Appellate
Division's decision--i.e., that the Public Service Law did "not
authorize the commission to prescribe uniform methods of manage-
ment of the business of privately owned corporations" (244 App.
Div. at 687) --is simply inapposite in the present circumstances.
And, as the Court of Appeals made clear in affirming the Appellate
Division's decision, "[n]othing herein decided limits the power of
the commission to prescribe uniform methods of keeping accounts,
records and books" (271 N.Y, at 112).
L
- 10 -
B. The Association's contention that the "commerce
clause" of the federal constitution prohibits imposition of the
record keeping and reporting requirements here at issue is
plainly without merit. The gist of the Association's argument
is that these requirements may not be imposed by the State of
New York (or any other state or local government) because cable
television companies are engaged in interstate commerce and
because, according to the Association, the rules in question
will "have the effect of placing. . .a burden on interstate
cable operations" (Association Comments, p. 15).
The Association's argument proves too much. For if
it were true that cable television companies were constitutionally
protected from state and local regulation (which of necessity
involves burdens that are not present in the absence of such
regulation) by virtue of the fact that they engage in interstate
commerce, then it would fellow that Article 28 of the Executive
Law and all of the requirements it imposes would be unconstitu-
tional. The Association makes no such claim, and it seems clear
that any such claim would be entirely without merit. See,
TV Pix, Inc. v. Taylor, 304 F. Supp. 459 (D. Nev., 1968), aff'd.
396 U.S. 556. There, the court, in upholding the constitutionality
of a state regulatory statute which imposed substantial "burdens"
upon cable television companies, stated (304 F. Supp. at 462):
"The pristine constitutional issue pre-
sented under the commerce clause of the
Constitution is whether state regulation as
a public utility of a business engaged in
interstate commerce is forbidden by the
commerce clause itself, regardless of ac-
tion or inaction by the Congress in imple-
mentation of its powers. Plaintiffs argue
that the State has no power to prohibit a
person from engaging in interstate commerce
and that a state statute, which requires a
certificate of public convenience and neces-
sity, must fall as an unconstitutional ob-
struction of commerce. Our review of the
authorities does not support this conclusion."
•
• • t
- 11-
In
1-
In reaching its decision, the court in TV Pix Inc. v. Taylor
was fully aware of the Supreme Court's decision in United States
v. Southwestern Cable Co., 392 U.S. 157 (1968), a decision upon
which the Association places great emphasis. Citing the South-
western decision as evidence of the fact that the cable tele-
vision business "is interstate commerce and is an integral part
of interstate commerce" the court nevertheless concluded that
"[a]ppropriate state regulation of [the cable television industry]
in the absence of federal legislative intervention, is not
proscribed by the Commerce Clause of the Constitution"
(304 F. Supp. at 463).
C. The Association also contends that, even if the
Commission is not constitutionally prohibited from adopting the
rules here in question, it should refrain from doing so as a
matter of comity in view of indications from the Federal
Communications Commission that it is considering the adoption
of a uniform system of accounts applicable to cable television
companies. The Association suggests that the Commission should
await the results of the FCC's inquiry before taking any action.*
Our staff consulted with the staff of the Federal Com-
munications Commission with respect to the possible adoption of
a uniform accounting system prior to release of our December 1973
notice of proposed rulemaking. We have continued to consult with
the FCC staff. While we do not presume to suggest that the
FCC or its staff has endorsed or otherwise given its blessing
to the rules here in question, we feel it is appropriate to
note that neither the FCC nor its staff has suggested that we
delay the action being taken today. Moreover, the letter from
the Chief of the FCC's Cable Television Bureau appended to the
Association's comments in this docket --a letter written in re-
sponse to a request by counsel for the State Cable Association --
plainly stops short of stating that non-federal jurisdictions
should refrain from the adoption of rules such as those here
in question. In these circumstances, we see no reason to defer
the issuance of this order. If federal requirements are here-
after adopted, and if such requirements raise questions about
the need for, or the appropriateness of, our rules, we will of
course consider whether our rules should be amended.
The Association also contends that we should be guided by leg-
islation proposed by the White House Office of Telecommunications
Policy which reflects, among other things, an attempt to prohibit
the imposition of uniform accounting requirements by non-federal
authorities. We note that there has been strong criticism of the
OTP bill, that it has not yet been introduced in Congress, and
that there is little likelihood that the bill will be enacted in
its present form at any time in the foreseeable future.
- 12 -
II
In the foregoing discussion relating to our authority
to prescribe record-keeping and reporting requirements, we have
not fully explained a central aspect of the rules here involved
--i.e., their requirement for uniformity. We have shown that
financial record keeping and reporting by cable television com-
panies is essential, but it remains to be demonstrated why
such record keeping and reporting should be based upon a
uniform format.
At first blush, it may appear to be sufficient to re-
quire nothing more than periodic financial statements from each
company subject to our jurisdiction. In essence, this is the
approach suggested by the State Association and others and the
approach reflected in the FCC's present practice of requiring
annual financial reports on FCC Form 326. We have concluded
that such an approach is in many respects unsatisfactory, and
the rules adopted herein include requirements (1) that all
cable companies account for certain transactions in accordance
with a series of specified procedures and (2) that every com-
pany with gross annual revenues in excess of $150,000 maintain
books of account in accordance with the chart of accounts
set forth in the rules.
Contrary to the apparent fears of many who have com-
mented on our December 1973 proposal, these requirements for
uniformity are not designed to facilitate the introduction of
rate -of -return regulation or a utility -type approach to the
regulatory problems we must confront. Rather, the require-
ments for uniformity are designed to foster an understanding
of the industry we are charged with regulating. If we are to
be able to make intelligent, reasoned judgments on the issues
that come before us, we must be able to compare the performance
and standing of individual companies and to compile industry-
wide information that does not suffer from the commonplace
"apples -and -oranges" shortcoming. Uniform accounting is thus
essential if we are to discharge our public responsibilities
in a meaningful and thoughtful fashion.
- 13-
Our
3-
Our staff has found that not one of the dozen largest
cable television companies in this State maintains its books of
account in a manner consistent with the record-keeping practices
of any other such company. Not surprisingly, this tendency
toward diversity is equally pronounced among the smaller com-
panies. In effect, this means that any attempt on our part to
understand the significance of the financial statements of any
given company will require an extended analysis to define the
terminology used in such statements and the assumptions and
procedures utilized by the company in preparing the statements.
Moreover,if we wish to compare the data contained in such
statements to data furnished by another cable company, or if
we wish to compile a data base reflecting information reported
by a number of companies, we must first convert all of the re-
ported data to some standardized format based upon a uniform
set of accounting principles.
If we were to adopt the suggestion that we abandon
efforts to achieve uniformity, we would be forced to enlarge
our accounting staff very significantly so as to be able to
conduct the audits and investigations that would be necessary
to a full understanding of the non-uniform financial data re-
ported to us. We believe it is far more appropriate to re-
quire (1) that certain standardized accounts be adopted by the
major cable companies (i.e., those companies whose gross annual
revenues exceed $150,000), which account for over ninety per-
cent of all cable subscribers in the State and (2) that all
companies, regardless of size, account for certain transactions
in accordance with the application instructions set forth in
our UAS. These minimal requirements for uniformity, which are
discussed in more detail in part III, infra, will permit the
accumulation of meaningful financial data without the expense
of a large staff of accountants and without serious hardship
for the companies subject to said requirements.* Moreover,wc
* We reject the claim advanced by certain parties that the re-
quirements of the UAS will engender significant expense for the
cable industry. While some companies may experience added ex-
pense, there is no reason why the average company should ex-
perience any significant added expense on a continuing basis.
We emphasize that we are not requiring the creation and day-to-
day maintenance of a new and separate set of books and records
(although this might, over the long run, be the least expensive
means of complying with our rules). Rather, we require only
the periodic conversion or restatement of the company's own books
[FOOTNOTE CONTINUED ON BOTTOM OF PAGE 14]
- 14 -
have been advisedthat in reliance upon the requirements of our
UAS, the State Board of Equalization and. Assessment will, at least
for the foreseeable future, (1) accept a copy of the annual fi-
nancial reports we intendto require in lieu of the financial
report (Form EA -268) heretofore required by the Board and
(2) make no effort to impose uniform accounting standards
of its own on cable television companies. Finally, we point
out that our rules include a prohibition against the imposi-
tion by any franchising municipality of any accounting require-
ments inconsistent with those contained in our rules. This
prohibition, which would not be defensible but for the re-
quirements of the UAS, may materially simplify the accounting
practices of the larger cable systems, which --without such a
prohibition --could be subjected to inconsistent accounting
requirements by each municipality in which they operate.
[FOOTNOTE CONTINUED FROM PREVIOUS PAGE]
of account. Since our accounting system is based largely upon
generally accepted accounting principles, and since the books
of most companies are maintained in a manner largely consistent
with such principles, the task of conversion or restatement
should be relatively minor for the average company.
- 15 -
III
As indicated above, the Uniform Accounting System will
consist of .two basic groups of requirements, record-keeping
requirements and reporting requirements. The reporting require-
ments are not contained in the rules adopted this day, but it
is our intention to announce those requirements by further
order to be issued prior to the end of this year. It is ap-
propriate to note at this juncture (1) that we have received
a number of comments objecting to the complexity of the report
forms contained in our initial proposal and (2) that in re-
sponse to these comments we have decided to prescribe an ex-
tremely simplified form for the very small cable television
companies subject to our jurisdiction.
We wish to stress that the record keeping requirements
contained in the rules adopted herein do not require any immedi-
ate action by, or changes in the day-to-day accounting procedures
of, any cable television company. Although the rules will be-
come effective immediately upon their filing with the Secretary
of State, they do not require any action by cable television
companies except at the close of each calendar year.* Thus,
Section 599.21 of the rules provides in pertinent part as
follows:
"Conversion of Accounts to the Uniform Accounting System
A. When a cable television company is first
required to maintain books of account
using the prescribed system, it shall
classify, set forth and carry in the
manner prescribed by the UAS, all rev-
enues, expenses, assets, liabilities,
capital stock or proprietorship interest
and surplus existing as of that date on
its books of accounts except that:
1. The company may maintain its exist-
ing books of account, or any other
books of account, provided it shall
promptly, at the close of each cal-
endar year, adjust all account
balances and transaction totals
* The Commission of course reserves the right to require
special financial reports in extraordinary circumstances and
to require that such reports be based upon the accounting
procedures specified in the UAS.
- 16 -
for the year so as to conform
with the requirements of the
UAS. The adjusted account bal-
ances and transaction totals
shall then be posted to the
prescribed accounts."
Although some companies may wish to commence the conversion pro-
cedure required by Section 599.21 prior to year-end, and although
we encourage all companies to utilize our UAS on a continuing
basis in lieu of their present accounting systems, there are no
such requirements in the rules adoptedthis day.
Every cable television company, regardless of size,
is required by Section 599.20(b) of our rules (1) to maintain
such books and records as will clearly and accurately disclose
the conditions and results of the business and (2) to comply
with the "Application Instructions" contained in Section 599.40
of the rules. It should, however, again be underscored that
these requirements are subject to the exception in Section
599.21(A)(1) which, in effect, relieves the cable television
company of any day-to-day accounting obligations and permits
the construction of the required books and records at the
close of each calendar year. The required records --a general
ledger, a plant and equipment ledger (unless the plant and
equipment accounts in the general ledger are sufficiently
detailed), and a corporate minute book --are the types of
records normally maintained by any business enterprise, and
our requirement that such records be maintained (or constructed
at year-end) cannot realistically be described as onerous or
burdensome.*
The instructions contained in Section 599.40 are in
almost all instances consistent with generally accepted account-
ing principles. The instructions deal with the accounting
treatment of such matters as amortization and depreciation,
* The degree of detail required in the general ledger and
plant and equipment ledger will doubtless vary from company
to company. In the case of the smallest companies, the
general ledger may consist of nothing more than five accounts --
equity, liabilities, assets, revenues and expenses.
- 17 -
construction work in progress, start-up costs, allocations and
other subjects which frequently are treated in inconsistent
fashion from company to company. We are attempting by our
instructions to impose some broad, reasonably flexible para-
meters which will tend to standardize the accounting treat-
ment of these matters, thereby affording a basis for meaning-
ful comparison of the financial statements we intend to
require. At the urging of various parties, we have made a
number of changes in the instructions originally proposed for
adoption and, in some instances, our instructions permit de-
viation from the stated requirement upon 'a showing of good
and sufficient cause. In addition, we assume that it will be-
come necessary or appropriate to change and refine our instruc-
tions from time to time, and we will do so, as required. By
the same token, we expect all the cable television companies
to make a good faith effort to comply with the existing require-
ments even if compliance involves administrative burdens which
would not otherwise be present. We intend to provide assistance,
on request, particularly to small companies, in applying the in-
structions contained in Section 599.40.
Objections to our proposed instructions have led to
one major amendment. Although our original proposal calling
for normalization of the savings that accrue from such tax
incentives as liberalized depreciation and the investment tax
credit was consistent with generally accepted accounting
principles, we have ascertained that most cable television com-
panies subject to our jurisdiction flow through these savings
on a current basis. We have decided to permit "flow-through"
for purposes of our UAS, but we intend to require special reports
whenever it appears that the effects of "flow-through'' may be
such as to distort the reporting of the results and condition
of the business.
We have also accepted the suggestion advanced by
several parties that our $100 maximum limitation on expensing
of capital items is too low. We have increased this amount
to $250, which appears to be more consistent with the practices
of most cable television companies. We note that this change
is in the direction of more conservative accounting.
It is frequently possible to account for a given transaction
in two or more ways, all of which are consistent with generally
accepted accounting principles. The comments submitted with
respect to our proposed UAS contain many suggestions that we adopt
one of several generally accepted accounting principles in dealing
with particular types of transactions. In each case, we have
selected from among the alternatives on the basis of the quality
of the information needed by the Commission and the prevailing
accounting practices in the industry.
- 18 -
Many companies have suggested that our requirement
for "original cost" accounting with respect to acquired cable
television properties should be abandoned. We disagree. We
believe it is important to any realistic understanding of a
company's financial position to be able to identify the values
by which assets have appreciated or depreciated. When assets
are carried on the books at a value in excess of original
cost, the ability to identify these values is lost. While we
are perfectly willing to accept the concept of intangibles.
such as "goodwill," we believe it is important that these in-
tangibles be identified as such and not merely lumped in with
the tangible assets in the plant and equipment accounts. More-
over, we note that the State Board of Equalization and Assess-
ment requires original cost data, and as previously indicated,
our UAS is intended to forestall further accounting require-
ments by the Board.
We have also been asked to modify or abandon the
amortization and depreciation guidelines set forth in Section
599.40. We have modified the proposed amortization periods in
line with this suggestion, but we adhere to the depreciation
practices required by our original proposal.* We note that in
a capital intensive industry such as cable television, depreci-
ation practices can be extremely important to the financial
results of a company's operations. Minor differences in.de-
preciation practices can materially affect the reported profits
or losses as well as the balance sheet position of a cable tele-
vision company. For these reasons, we believe it important to
establish reasonable guidelines that will minimize distortions
caused by over -depreciation or under -depreciation of the assets
of the companies we regulate.
Larger companies--i.e., those which report gross annual
revenues of $150,000 or more --will be required to conform their
records to the chart of accounts specified in Section 599.32 of
* We note (1) that our "useful life" guidelines are based
upon the guidelines promulgated by the Internal Revenue Service
and (2) that our rules contemplate that a different useful
life can be justified upon a proper showing.
4
- 19 -
the rules. We estimate that this requirement Will apply to
some thirty-seven companies.* The chart of accounts, as
originally proposed, was developed after informal consultation
with many of these companies and has been revised to reflect
the comments of these companies and other interested parties.
In our view, the chart of accounts set forth in the rules re-
flects the best features of the accounting systems presently
utilized by the larger cable companies in the State. To a
large extent, it is compatible with many, but not all, of such
accounting systems. We have made numerous adjustments in our
proposed chart of accounts and the related account definitions
in order to conform our UAS to the present practices of the
industry. We again point out that our requirement for con-
formity with the chart of accounts is not a requirement for
day-to-day record keeping but rather a requirement for peri-
odic conversion of the company's records to the format
specified by the chart of accounts.
* At the urging of many cable companies, we have changed the
cut-off point for determining whether conformity with the chart
of accounts will be required. The proposed standard of
$100,000 of "gross annual receipts" has been changed to
$150,000 of "gross annual revenue", a change that will reduce
the number of cable companies required to conform with our
chart of accounts. Our decision to utilize gross annual
revenues, rather than gross annual receipts, as the critical
measure avoids the problem of circularity created by the fact
that the term "gross annual receipts" is defined in our
statute as including "moneys that constitute income in accor-
dance with the system of accounts approved by the Commission."
We have defined "gross annual revenues" to include revenues
from any source, a definition by which we hope to avoid or
minimize debate with respect to the applicability of our chart
of accounts. Any cable company whose non -cable revenues might
trigger the requirements of our rules may readily avoid those
requirements by separating its cable and non -cable businesses.
- 20 -
THE COMMISSION ORDERS:
1. The rules attached hereto, entitled "Uniform
Accounting System," are hereby adopted, to be effective
immediately upon their filing with the Secretary of State.*
2. Within thirty days from the issue date of this
order (see p. 1), every cable television company (1) shall
acknowledge receipt of this order and the attached rules and
(2) shall advise the Commission of its gross annual revenues,
as defined in Section 599.10(C)(12) of said rules, for cal-
endar year 1972. Saidacknowledgment and advice shall be
in writing and shall be addressed to the attention of the
Commission's chief accountant.
Commissioners Participating: Robert F. Kelly, Chairman;
Michael H. Prendergast; Eli Wager, Edward J. Wegman, Commissioners.
We note that the style and numbering of these rules have
not been approved by the Secretary of State and that changes
in style and numbering will be made prior to inclusion of
the rules in the official compilation published by the
Secretary. We will attempt to distribute copies of the
rules, as revised by the Secretary, as such copies become
available.
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
UNIFORM ACCOUNTING SYSTEM
• November 4, 1974
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
UNIFORM ACCOUNTING SYSTEM
November 4, 1974
TABLE OF CONTENTS
SECTION TITLE OR DESCRIPTION PAGE
599.10 'Uniform Accounting System Definitions ,11
599.20 Applicability of Record Keeping
Requirements 5
59.9.21 Conversion of Accounts to the Uniform
Accounting System ;7
:599.3.0 Structure of Accounts
599.31 Index to Prescribed Accounts 12
599.32 Chart of Accounts 13
599.33 Description of Uniform Accounting
System Accounts 24
699.40 Application Instructions 46
A Amortization 46
B Accounting for Acquisitions 49
C Construction Work in Progress 51
D Depreciation 52.
E Investments 57
F Owner's Equity 58
G Petty Cash 60
H Separation of Business Activity 60
I Start-up Costs 61
J Allocations 62
K Capitalized Leases 63
599.90 Obligation of Cable Television Company to
Notify Commission 64
1
599.10 Uniform Accounting .System Definitions
A: These definitions in Section 599_.10 shall be
read in conjunction with all other Sections of
the UAS in determining the appropriateness of
any particular financial entry or report prepared
from such financial entry.
The following definitions contained in Section 812
of Article 28 of the Executive Law are applicable:
1.. Cable television company shall mean any person
owning, controlling, operating, managing or
leasing a cable television system within the
state.
2. Cable television system shall mean any system
which operates for hire the service of
receiving and amplifying programs broadcast
by one or more television and/or radio
stations and any other programs originated
by -a cable television company or by wire,
cable microwave or other means, whether such
means are owned or leased, to persons who
subscribe to such service. Such definition
doe's not include:
(a) any system which serves fewer than fifty
subscribers; or
(b) any master antenna television system.
3. Commissionshallmean the Commission on cable
television created by this Article.
4. Municipality shall mean any village, town,
city or county not wholly contained within
a city in the state.
5. .Person shall mean any individual, trustee,
partnership, association, corporation or other
legal. entity. . .
C. The following definitions apply to .words and•
phrases used in this Part:
1. Accounts - The accounts prescribed in the UAS
unless another meaning is clearly implied.
The accounts will consist of a detailed aggregation
of items affecting property or claims, listed
either as debits or credits, and showing an
excess of debits or credits in the form of
a balance.
2. Accrual basis of accounting - A method of
accounting under which revenues are recognized
when earned or realized, and expenses are
recorded when incurred, regardless of the flow
of cash.
3. Affiliated Company - Any person that directly
or indirectly, or through one or more inter-
mediaries, controls, is controlled by, or is
under common control with, another person.
[See definition of person] A controlling
interest exists when more that 50% of the
voting stock or other proprietorship interest
is held by any one person. In addition,
the Commision may find the existence of a
controlling interest in situations where 50%
or less of the voting stock or other proprietorship
interest is held by any one person, depending
on the particular facts and circumstances and
the relationship of the parties.
4. Amortization - The gradual extinguishment, on a
rational method or basis, of an amount in an
account by distributing such amount over a
period, over the life of the asset or liability
to which it applies, or over the period during
which it is anticipated the benefit will be
realized.
5. Asset - A tangible or intangible property right
or value acquired, or an expenditure made which
has created a property right, or is properly
applicable to the future.
6. Books - Books of accounts.
7. Consolidated financial reports - Reports showing the
operating results or financial position of a group
of companies under common ownership or control.
Such reports are intended to reflect the operating
or financial position of the group as a single entity.
The preparation of a consolidated financial report
involves elimination of all intercompany accounts,
investments, sales, advances, and interests of an
intercompany nature.
8. Depreciation - The loss, determined on a rational
basis, of service value notrestored by current
maintenance, incurred in -connection with the consump-
tion or prospective retirement of operating property
in the course of service from causes known to be in
current operation, against which the company is not
protected by insurance, and the effect of which can be
forecast with a reasonable degree of accuracy. Among
causes to be given consideration are wear and tear,
decay, action of the elements, inadequacy, obsolescense,
changes in the art, changes in demand, and the require-
ments of public authorities, when appropriate.
9. Equity - Any right or claim to assets or interest
in property or a business, subject to prior
creditors. As used in the UAS, equity refers
to the interest of a stockholder in a corpora-
tion or proprietor or partner in an unincor-
porated company or other entity.
10. Fiscal year - A twelve month period other than
a calendar year.
11. Generally accepted accounting principles and
practices - Principles and practices that would be
followed in .posting financial transactions or
preparing financial statements that would generally
be acceptable to any other accountant: Such
generally accepted accounting principles would be
those enumerated by the Accounting Principles Board
[APB] and its successor, the Financial Accounting
Standards Board [FASB].
12. Gross Annual Revenues - All revenues from any
source, determined on the accrual basis accord-
ing to generally accepted accounting principles.
13. Liability - An amount owing to another; the
title of the credit side of the balance sheet
where obligations and equity are shown.
4
14. Original Cost - The cost, incurred by the
first cable television company, of equipment
and/or other assets used for the purpose
of providing cable television service in
New York State. This includes the cost [at
arms length] of all material, equipment,
overhead and labor.
Prior to January 1, 1974, original cost shall
be determined in conformity with generally
accepted accounting principles. Beginning
January 1, 1974, original cost shall be
determined as provided in the first sentence
of this definition but it shall not apply to
a company which is a cable television company
solely by reason of its ownership or control
of another cable television company.
15. Subsidiary - A company owned or controlled by
another company.
16. Uniform Accounting System - The accounting
and financial record keeping and reporting
requirements prescribed by the Commission.
The Uniform Accounting System is commonly
abbreviated UAS.
599.20 Applicability of, Record Keeping ne, ui-ements
A. Record Keeping_Requirements -- Large Companies
1. Beginning January 1, 1974, every cable television
company having $150.000 or morein gross annual
revenues as of .the close of ,its last fiscal year
occurring on or before December 31, 1972 shall,
in accordance with Section. 599.21, of this Part,
adopt the accounts._ prescribed in Section 5.99.32.
2. Beginning January 1, 1975, and every year thereafter,
every cable television company with gross annual
revenues of. $150,000 or more as of the close of the
preceding calendar year shall, in accordance with
Section 599.21 of this Part, adopt the accounts
prescribed in Section 599.32.
3. If the combined gross annual revenues of an affiliated
group of companies are $150,000 or more, each and
every cable television company included in the group
shall maintain its books of account in accordance
with Section 599.21 of this Part and adopt the accounts
prescribed in Section 599.32; provided, however, that
an affiliate which is not a cable television company
need not maintain its books of account in accordance
with the UAS and adopt the prescribed accounts.
B. Record Keeping Requirements -- All Companies
1. Every cable television company shall maintain such
books and records as will clearly and accurately
disclose the condition and results of the business
and shall comply with the Application Instructions
in Section 599.40.
(a) The books of account shall include but may not
be limited to the following:
1. General Ledger consisting of assets, liabilities,
equity, revenue and expense accounts.
2. Plant and Equipment Ledger except as provided
in Lection 599.30 (C).
3. Corporate Minute Book.
(b) The retention period for books and records
will be as follows:
REC ORDS
1. General Ledger
2. Plant and Equip-
ment Ledger
3. Corporate Minute
Book
4. Bank Statement,
cancelled checks,
savings passbooks,
etc.
5. Vouchers, invoices,
sales slips, etc.
6. Customer billings,
receipts, etc.
7. Construction
Contracts
S. Loan Agreements
RETENTION PERIOD
Permanent
Permanent
Permanent
3 years*
3 years*
3 years
0
12 years
3 years after expiration
of loan period or repayment,
whichever is first*
9. Payroll records 3 years*
(c) All books of account and related records as
described in Section 599.20 (B) shall
be made available for examination within New
York State, upon reasonable notice, in not to
exceed fifteen days.
*Records pertaining to construction or purchase of
additional plant equipment or replacement of plant
equipment should be retained for 12 years.
7
C. Exemptions and Prohibitions
1. A person who is a cable television company solely
by reason of its ownership of control of another
cable television company need not maintain its
books of account in accordance with the UAS and adopt
the prescribed accounts. An affiliate of a cable
television company need not adopt the prescribed
accounts unless it is providing cable television
service to New York subscribers and meets the
requirements of Section 599.20 (A).
2. No franchising municipality or local governmental
unit shall prescribe any system of accounts for use
by a cable television company if the company shall
adopt and use the accounts prescribed in the UAS.
[This paragraph shall not be construed as preventing
a franchising municipality or local governmental unit
from requiring financial or other data and/or reports
to satisfy its informational needs or from mandating
the use of the prescribed accounts.]
599.21 Conversion of Accounts to the Uniform Accounting System
A. When a cable television company is first required to
maintain books of account using the prescribed
system, it shall classify, set forth and carry in the
manner prescribed by the UAS, all revenues, expenses,
assets, liabilities, capital stock or proprietorship
interest and surplus existing as of that date on its
books of accounts except that:
1. The company may maintain its existing books of account,
or any other books of account, provided it shall
promptly, at the close of each calendar year, adjust
all account balances and transaction totals for the
year so as to conform with the requirements of the
UAS. The adjusted account balances and transaction
totals shall then be posted to the prescribed accounts.
2. The balance on the books immediately prior to
conversion to the UAS may be adjusted, consolidated
or transferred as required in order to post them
to the prescribed accounts or other accounts. When
account balances contain amounts other than what
would be allowed under the prescribed system and
such balances derive from transactions occurring
on or before December 31, 1973, or such balances
originated prior to the company first commencing
business in New York, the company may adjust balances
8
to reflect the manner in which they would be carried
had the prescribed system been in effect as of the
date the originating transaction occurred. If the
accounts are not voluntarily restated in this manner,
the Commission may require such a restatement in
appropriate circumstances.
3. All work papers used in converting account balances
and transaction totals shall be permanently maintained
as part of the general ledger.
4. If account balances and transaction totals are not
posted directly to the prescribed accounts but are
posted from entries or totals contained in another
system of accounts [as provided for in Section
599.21 (A) (2)], such books, including general and
subsidiary ledgers and supporting books and records
shall be preserved as long as the books of account
prescribed by the VAS are preserved.
8. All prescribed accounts, or other accounts, and reports
prepared from those accounts shall reflect the accrual
basis of accounting. If the cash basis of accounting
is used during the year, the account balances and
transaction totals shall be converted at year-end to
the accrual basis. Generally accepted accounting
principles shall be used in establishing the accounting
treatment of any financial transaction except that the
Commission may require such accounting treatment as
will yield information necessary to a proper discharge
of the Commission's responsibilities.
9
599.30 Structure of Accounts
A. The UAS will consist of,a series of general accounts
and in most cases, subsidiary accounts. Additional
subsidiary accounts may be provided by the company
as management requires, provided no such subsidiary
account interferes with, or otherwise prevents, the
accumulation of data as provided for in the officially
prescribed accounts.
B. A series of clearing accounts is provided for the
temporary accumulation and distribution of costs
to asset and expense accounts. Additional
clearing accounts may be provided by the company
as management requires, provided that the balances
of all such clearing accounts are distributed at
year-end to asset and expense accounts and no
balance then remains.
C. The plant and equipment ledger shall reflect to that
degree of detail sufficient to permit the selection
of a depreciation method and satisfy the informational
needs of other state and local government agencies,
all plant and equipment in use by the company, the
location of such plant and equipment and the date
first purchased or placed in service. The accounts
in the plant and equipment ledger shall be equal to
the corresponding accounts in the general ledger
which shall act as control accounts. If the general
ledger is sufficiently detailed that it meets the
above Standards, the Commission may dispense with the
requirement that a separate plant and equipment ledger
be kept, upon application of the cable television
company.
D. The UAS account number is composed of five digits,
four whole numbers and one decimal number which is
illustrated below for account number 5101.1 "Salaries
and Wages of Officers and Directors".
Account Number
5 =
1 =
0 =
1 =
1 =
General account category
Group
Component
Item
Decimal
Sub item
1Q
i.e. Cost of Operations
i.e. Service Costs
i.e. Not Used in Illustration
i.e. Salaries and Wages
i.e. Dividers
i.e. Officers and Directors,
1. General account category - This describes the
nature of the account and is the most inclusive
level of detail provided, i.e. indicates whether
an account reflects assets, liabilities, revenue
etc.
2. Group - indicates a subdivision of the general
account category into the next lowest level for
accumulating data, i.e., current assets as part
of assets; current liabilities as part of liabil-
ities.
3. Component - Identifies the specific character
of the account, that is, the type of cost, asset,
etc.
4. Item - This is normally the lowest level of detail
provided. It simply subdivides each component
into the next lowest level for analytical purposes,
i.e., Accrued Expenses may be further subdivided
into Accrued Payroll, etc.
5. Decimal - This simply divides the normal level
of detail from optional levels of data.
6. Sub item - Identifies a subdivision of the item
into the next lowest level for analytical purposes,
i.e., [See accounts for Salaries and Wages].
11
F. The Uniform Accounting System has been so struc-
tured as to facilitate expansion to meet the needs of
either the cable television company or the Commission.
This has been accomplished by. allowing the addition
of identifiers after the decimal point in any account
except where an identifier has been prescribed. To
further expand",the numbering system for more detailed
analysissimply add another digit, right -justified
to any account.
G. For analytical purposes various natural items of
cost such as postage, telephone and telegraph, etc.
have been given identical component and item digits
in the account numbering system. [See Section 599.33
account 5000.0]. This allows either a company -wide
accumulation of such costs or the selective accumula-
tion df these expenses by cost centers or in any
manner desired.
12
599.31 Index to Prescribed Accounts
ACCOUNT NUMBERS
GENERAL SUBSIDIARY* DESCRIPTION
OXXX XX PLANT AND EQUIPMENT**
1000 XX ASSETS
2000 XX LIABILITIES
3000 XX OWNER'S EQUITY
4000 XX OPERATING INCOME
5000 XX COST OF OPERATIONS
6000 XX OTHER INCOME AND OTHER
EXPENSES
7000 XX PROVISION FOR FEDERAL AND
STATE ,INCOME TAXES
8000 XX EXTRAORDINARY ITEMS
9000 XX CLEARING ACCOUNTS--
*
Subaccounts to provide for additional detail as required.
%* As required.
599.32 Chart of .,Accounts
13
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
1000.0 ASSETS
1100.0 Current Assets
1110.0 Cash
1120.0
1130.0
1111.0
1112.0
1113.0
Petty Cash
Bank Accounts
Cash on Hand
Short -Term Investments
Accounts Receivable -- Trade
1139.0 Allowance for Doubtful
Accounts -Trade
1140.0 Other Receivables'
1141.0 Interest
1142.0 Other
1149.0 Allowance for Doubtful
Accounts -Other
1150.0 Inventory
1160.0 Broadcasting Rights
14'
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
1170.0 Prepaid Expenses
1171.0 Taxes
1172.0 Franchise Payments
1173.0 Insurance
1174.0 Rent
1175.0 Interest
1170.0 Expense Advances
1177.0 Other
1180.0 Other Current Assets
1200.0 Fixed Assets
1210.0 Land
1220.0 Buildings
1230.0 Head -end
1231.0 Tower and Antennae
1232.0 Electronic Equipment
1233.0 Other
1240.0 Trunk and Distribution
System
1241.0 Poles
1242.0 Cable
1243.0 Amplifiers
1244.0 Subscriber Devices
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
1250.0
1260.0
1270.0
1271.0
1276.0
1280.0
1290.0
1299.0
1300.0
1400.0
15
Test Equipment and Tools
Program Origination Equipment
Vehicles, Furniture and Fixtures
Vehicles
Furniture and Fixtures
Capitalized Leased Property
Leasehold Improvements
Miscellaneous Equipment
Construction Work in Progress
Allowance for Accumulated
Depreciation and Amortization
1410.0 Allowance for Accumulated
Depreciation
1420.0 Allowance for Accumulated
Amortization
1500.0 Plant Adjustments
1510.0 Plant Adjustment Excess Fair Value
1520.0 Plant Adjustment Goodwill
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
1600.0
1610.0
1611.0
1612.0
16
Other Assets
Intangible Assets: Franchises,
Licenses and Permits
Other Intangible Assets
Goodwill
1620.0 Deferred Charges
1621.0
1622.0
1623.0
Start-up Costs
Unamortized Debt Expense
Other Deferred Costs
1630.0 Long -Term Investments
1640.0 Organization Costs
1650.0 Other Assets
2000.0 LIABILITIES
2100.0 Current Liabilities
2110.0 Loans Payable
2111.0
2112.0
Short -Term Notes
Current Portion of Long -Term
Deb t
2120.0 Subscriber Advance Payments
and Deposits
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
2121.0
2122.0
17
Subscriber Advance Payments
Subscriber Deposits
2130.0 Accounts Payable
2140.0 Taxes and Other Withholdings
2141.0
2142.0
2143.0
2144.0
2145.0
2146.0
Federal Income Tax
State Income Tax
Local Taxes
F.I.C.A.
Employee Authorized Deductions
Other Withholdings
2150.0 Accrued Expenses
2151.0
2152.0
2153.0
2154.0
2155.0
2156.0
Accrued Payroll
Accrued Payroll Taxes
Accrued Rent
Accrued Franchise Payments
Accrued Interest
Other Accrued Expenses
2160.0 Accrued Taxes
2161.0
2162.0
2170.0
2180.0
2200.0
Accrued State and Local Taxes
Accrued Federal Income Taxes
Other Current Liabilities
Dividends Payable
Reserved for Future Issuance
18
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
2300.0 Long -Term Debt
2310.0 Notes Payable
2320.0 Bonds Payable
2330.0 Obligation on Capitalized Leases
2340.0
2400.0
2410.0 Property Insurance Allowance
2420.0 Injury and Damage Allowance
2430.0 Pension and Benefit Allowance
x2440.0 Miscellaneous Operating Allowance
2500.0 Other Non -Current Liabilities
3000.0 OWNER'S EQUITY
3100.0 Common Stock -- Issued
3200.0 Preferred Stock -- Issued
3300.0 Treasury Stock
3400.0 Proprietor's Equity
3500.0 Additional Paid -in Capital
3600.0 Retained Earning
3610.0 Appropriated Retained Earnings
3620.0 Unappropriated Retained Earnin.g_s
Unamortized Premium and
Discount on Outstanding Debt
Operating Allowances
ACCOUNT NUMBERS
GENERAL
GENERAL
3700.0
4000.0
4100.0
4200.0
5000.0
5100.0
SUBSIDIARY
4110.0
4120.0
4130.0
4140.0
4210.0
4220.0
4230.0
5101.0
5101.1
5101.2
5102.0
5102.1
5102.2
5103.0
19
Pro rietor's Withdrawals.
OPERATING INCOME
Subscriber Revenues
Installation Income
Regular Subscriber Charges
Per Program or Per Channel
Charges
Other Subscriber Revenues
Non -Subscriber Revenues
Advertising Income
Special Service Income
Other Non -Subscriber Revenues
COST OF OPERATIONS
Service Costs
Salaries and Wages
Salaries and Wages -
Officers and Directors
Salaries and Wages - All
Others
Employee Benefits
Employee Benefits -
Officers and Directors
Employee Benefits -
All Others
Maintenance
20
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
5104.0 Pole and Site Rentals
5105.0 Microwave Service
5106.0 Light, Heat and Power
5107.0 Vehicle Expense
5108.0 Rent
5129.0 Tariff and Leaseback Charges
5150.0 Other
5200..0 Origination Expense
5201.0 Salaries and Wages
5201.1 Salaries and Wages -
Officers and Directors
5201.2 Salaries and Wages
All Others
5202.0 Employee Benefits
5202.1 Employee Benefits -
Officers and Directors
5202.2 Employee Benefits -
All Others
5203.0 Maintenance
5208.0 Rent
5222.0 Technical and Creative Services
5223.0 Film Expense
5224.0 Studio Sets and Props
5225.0 Program Materials and Supplies
5226.0 News Services
5227.0 Participation Expense
5228.0 Fees and Royalties
5250.0 Other
5300.0 Selling, General and Administrative
Expense
5301.0
5301.1
5301.2
5302.0
Salaries and Wages
Salaries and Wages -
Officers and Directors
Salaries and Wages -
All Others
Employee Benefits
21
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
5302.1 Employee Benefits -
Officers and Directors
5302.2 Employee Benefits -
All Others
5306.0 Light, Heat and Power
5307.0 Vehicle Expense
5308.0 Rent
5309.0 Travel and Entertainment
5310.0 Dues and Subscriptions
5311.0 Contributions
5312.0 Professional Services
5313.0 Stationery and Supplies
5314.0. Postage and Freight
5315.0 Advertising and Promotion
5316.0 Telephone and Telegraph
5317.0 Sundry Office Expenses
5318.0 Insurance
5319.0 Provision for Doubtful Accounts
5320.0 Local Taxes
5321.0 Franchise, License and Permit
Fees
5330.0 Overhead Allocations
5350.0 Other General and Administrative
Expense
5400.0 Depreciation and Amortization
5410.0 Depreciation
5420.0 Amortization
6000.0 OTHER INCOME (OTHER EXPENSES)
6100.0 Other Income
6110.0 Interest
22
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
6120.0 Dividends
.6130.0, Other
6200.0 Other Expenses
6210.0 Interest
=6220.0 Miscellaneous
7000.0 PROVISION FOR FEDERAL AND STATE
INCOME TAXES
7100.0 Federal Income Tax
7200.0 State Income Tax
8000.0 EXTRAORDINARY ITEMS
9000.0 PROGRAM ORIGINATION CLEARING
ACCOUNT
ACCOUNT NUMBERS
GENERAL SUBSIDIARY
23
9100.0 CONSTRUCTION WORK IN PROGRESS
CLEARING ACCOUNT
9200.0 START-UP COSTS CLEARING
ACCOUNT
9300.0 SELLING, GENERAL & ADMINIS-
TRATIVE CLEARING ACCOUNT
9400.0 MARKETING AND INSTALLATION
CLEARING ACCOUNT
9500.0 SERVICE EXPENSE CLEARING
ACCOUNT
9600.0- 9900.0 OTHER CLEARING ACCOUNTS'
As required.
599.33 Description of Uniform Accounting System Accounts
1000.0 ASSETS
1100.0 Current
Assets
1110.0
1120.0
1130.0
1140.0
24
Cash - The total amount of cash on deposit
in banks and on hand.
1111.0 Petty Cash - The amount of cash
on hand in petty cash accounts and
working funds.
1112.0 Bank Accounts - If desired, sub-
sidiary accounts can be used for
each individual bank account.
1113.0 Cash on Hand - Undeposited cash
not included in account 1111.0
or 1112.0.
Short -Term Investments - The cost of market-
able or redeemable securities purchased for
temporary investment.
Accounts Receivable -- Trade - The amounts
due from subscribers.
1139.0 Allowance for Doubtful Accounts --
Trade - This account should be credit-
ed with the regular provision for
estimated loss in the collection of
trade accounts receivable and should
be charged for the accounts which
are found to be uncollectable.
Other Receivables - All receivables other
than trade receivables, including amounts
due from employees.
1141.0 Interest - The interest earned or
purchased on investments and notes
not yet received in cash, and
discount on bonds or notes purchased.
1142.0 Other - All other receivables should
be included in this account.
25_
1149.0 Allowance for Doubtful Accounts --
Other - This account should be
credited with the provision for
estimated loss in the collection
of other accounts receivable and
charged for the accounts found to
be uncollectable.
1150.0 Inventory - This account should include the
cost of materials not chargeable to expense
or immediately identifiable to a construction
project. Inventory items held for construction
purposes are to be included as part of account #
1300.0 Construction Work in Progress.
This account balance may be maintained by
posting transactions currently or, if the
amount of materials is not significant, the
balance in the account may be adjusted
periodically based on a physical inventory and
current value. In any event, inventory should be
verified by a physical count at least annually.
The account may be subdivided to accommodate
various types of supplies. Insignificant
amounts of office supplies may be expensed.
1160.0 Broadcasting Rights - The cost of features, films,
syndicated television shows and other broadcasting
rights purchased. The offsetting liability shall be
credited to account #2170.0 Other Current Liabilities.
These costs shall be amortized as provided in
Section 599.40 (A).
In the event that a significant portion of the cost
is not amortized within one year, that portion is
to be transferred to account #1650.0 Other Assets;
the offsetting credit shall be transferred to
account #2500.0 Other Non Current Liabilities.
1170.0 Prepaid Expenses - These accounts represent outlays
for benefits or services which apply to or will
directly benefit future operations. The period
to be benefited should not exceed one business
cycle or one year. The accounts are credited
and the appropriate expense or capital account
is charged as the benefit is received.
1171.0 Taxes - Advance payments for taxes
such as school taxes or property
taxes.
1172.0 Franchise Payments - Advance payments for
the current period's franchise liability.
-26--
1173.0
.
1173.0 Insurance - The amount of insurance
premiums paid in advance of the
period to which the premium is
applicable.
1174.0 Rent - Rental payments applicable
to periods subsequent to the close
of the accounting period.
1175.0 Interest - Interest paid in advance
on bonds and other long-term debt.
1176.0 Expense Advances - The amount of
advances to officers and employees
for traveling and other expenses
incurred for business purposes.
1177.0 Other - Any prepaid expenses not
includable in another account.
1180.0 Other Current Assets - Any current assets
not includable in another account.
1200.0 Fixed Assets - The fixed asset accounts shall
include all costs applicable to purchase or
construction of property. The breakdown shown
in the Chart of Accounts is by major control.
Classification by tax district or franchise area
may be achieved by appropriate account expan-
sion.
1210.0 Land - The cost of real property, includ-
ing cost incident to the acquisition of
title to the land.
1220..0 Buildings - The cost of office and other buildings,
including head -end buildings, constructed of brick,
concrete, stone, or other durable materials, and which
can be expected to last for more -than one year.
1230.0 Head -End
1231.0 Tower and Antennae - The cost of the
tower and .antennae.
•
27
1232.0 Electronic Equipment - The cost of
the head -end electronic equipment,
not including time and weather
channel equipment, which is included
in accouit 1260.0.
1233.0 Other - The cost of all otherequip-
ment associated with the head -end
facility, suchras fencing and struc-
tures that do not qualify for inclusion
in account 1220.0 "Buildings".
1240.0 Trunk and Distribution System
1241.0 Poles - The cost of owned poles,
including related guys, anchors,
messenger cable and pole hardware.
1242.0 Cable - The cost oftrunk and dis-
tribution cable, including lashing
wire, splices, connectors, etc.
This account may be subdivided by
size of cable.
1243.0 Amplifiers - The cost of amplifiers
and power suppliers, including housings
and associated hardware and electronic
equipment. This account may be sub-
divided by type of amplifier.
1244.0 Subscriber Devices - The cost required
to initially connect customers to the
distribution line. Includes the costs
associated with taps, blocks, transformers
cable, ,converters and other subscriber
connection devices.
1250.0 Test Equipment and Tools - Includes the cost
of 'sweep generators, calibrators, field'
strength meters, other test equipment and
tools.
1260.0 Program Origination Equipment - This account
includes the costof time and weather station,
cameras, studio and other equipment utilized
in origination
28
1270.0 Vehicles , Furniture and -:Fixtures - -The cost
of vehicles, associated equipment and office
equipment and furniture and fixtures.
1271.0 Vehicles
1276.0 Furniture and Fixtures
1280.0. Capitalized Leased Property - The fair market
value of property leased, which under the
- terms of the• lease,.constitutes an.installment
purchase.
1290.0 Leasehold Improvements - The cost of re-
arrangements and -remodeling of leasehold
property which are to be capitalized.
1299.0
Miscellaneous Equipment - The cost of any
equipment' not includable.' in another account.
1300.0 Construction Work in Progress.- This account
should include the costs accumulated in con-
nection with the design and construction work
not yet completed. As individual jobs are
completed, the accumulated costs are removed
from this account and charged to the appro-
priate fixed asset ',account
1400.0 Allowance for Accumulated Depreciation and
Amortization - This account is to be credited
with the periodic provision for depreciation
and amortization. A separate subsidiary
account should be maintained for each plant
subsidiary account included in the 1200.0
series of accounts as well as for other
amortizable assets, as provided in Section 599.40 (A).
1410.0 Allowance for Accumulated Depreciation
1420.0 Allowance for Accumulated Amortization
1500.0 Plant Adjustments The difference between the
purchase price and the original cost, less
depreciation, of either all or a substantial
portion of a cable television system already
in operation in the State. For a fullerdis-
cussion see Section 599.40 (B).
(substitute) 29
1510.0 Plant Adjustment Excess Fair Value - The
difference between original cost, less
depreciation, and the fair value of the
assets purchased as defined in account #1500.0.
1520.0 Plant Adjustment Goodwill - Goodwill arising
from the difference between fair value and purchase
price as defined in account #1500.0.
1600.0 Other Assets
1610.0 Intangible Assets
1611.0 Franchises, Licenses, and Permits
Cost of securing franchises, licenses
and permits, including initial pay-
ments to the community. The portion
of a system's purchase cost allocated
to its franchise should also be included
in this account. Franchise costs shall
be charged to operations during the
period of expected benefit.
1620.0
1612.0
1613.0
Other Intangible Assets - Intangible
assets for which no specific accounts
have been provided.
Goodwill - Intangible assets arising
from acquisitions, reorganization or
other means for which no specific
accounts have been provided.
Deferred Charges - Expenses chargeable, beyond
one year
1621.0
1622.0
, to future operations.
Startup Costs - Costs incurred net
of revenues received during the develop-
ment period of the CATV system prior
to full scale operation. Such costs
may be charged to expense over the
specified period, and accumulated in
an appropriate sub -account of account
#1400.0.
Unamortized Debt Expense - Expenses
associated with the issuance and sale
of all classes and series of long-term
debt [including receivers' certificates]
issued or assumed by the company. Amorti-
zation shall be on a straight-line basis,
31
2122.0 Subscriber Deposits - Deposits paid
by subscribers to assure the payment
of monthly or other fees for services
rendered and that company equipment
will be returned undamaged when the
subscriber discontinues.
2130.0 Accounts Payable - This account should in-
clude amounts currently due to others for
purchases of materials and other goods or
services.
2140.0 Taxes and, Other Withholdings - The amounts
withheld from employees' earnings which are
payable to government agencies and. others.
(See Chart of Accounts for listing of
subsidiary accounts.)
2150.0 Accrued Expenses - Obligations, actual or
estimated, existing at the close of the
accounting period, but payable at a future
date.
2151.0 Accrued Payroll - The accrued
liability to employees for salaries
wages, and employee benefits.
2152.0 Accrued Payroll Taxes - The accrued
liability for the employer's share
of social security taxes, unemploy-
ment taxes and workmen's compensation
taxes.
2153.0 Accrued Rent - The accrued liability
for rent of facilities.
2154.0 Accrued Franchise Payments - The
accrued liability for franchise pay-
ments relative to current operations.
2155.0 Accrued Interest - The accrued
liability for interest due on the
System's debt obligations.
2156.0 Other Accrued Expenses - The estimated
liability for accrued expenses for
which specific accounts have not been
provided.
32
2160.0 Accrued Taxes
2161.0 Accrued State and Local Taxes - The
accrued liability for taxes levied by
state and local governments. If desired,
this account may be subdivided by type
of tax.
2162.0 Accrued Federal Income Taxes- The
estimated liability for current and
prior years` Federal income taxes.
2170.0 Other Current Liabilities - Any current
liability not provided for in another account.
2180.0 Dividends Payable - Dividends declared from
retained earnings which have not yet been paid.
2200.0 Reserved for Future Issuance
2300.0 Long -Term Debt - The unpaid balance of long-
term notes, bonds and other debts payable
after one year fromdate issued. Any amounts
which are payable within one year should be
reclassified to the current liability account.
2310.0 Notes Payable - The unpaid balance
of notes payable after one year.
2320.0 Bonds Payable - The unpaid balance
of bonds payable after one year.
2330.0 Obligation on Capitalized Leases -
The discounted value of future rental
payments for leased property, which,
under the terms of the lease, constitute
an installment purchase.
2340.0 Unamortized Premium and Discount on
Outstanding Debt - Separate subsidiary
discount and premium accounts shall be
maintained for each class and series of
long-teIm debt issued or assumed in which
shall be recorded the discount and premium
associated with the issuance and sale of
each such class and series of debt. Amorti-
zation shall be on a straigh-line basis
over the life of the respective issues.
Account #6210.0 Interest shall be debited
or credited as appropriate. When any
33
long-term debt is reacquired or redeemed
the difference between the amount paid upon
reacquirement and the face value plus the
unamortized discount and expense, as the
case may be, applicable to the debt redeemed,
retired and cancelled, shall be debited or
credited as appropriate to account 6000.0,
Other Income (Expenses)._
2400.0 Operating Allowances
2410.0 Property Insurance Allowances - This
account shall include the allowances
for self-insurance against property
losses. At least annually a credit
shall be made to this account and a debit
made to the appropriate expense account;
losses shall be debited to this account.
A detailed description of property shall
be maintained together with schedules
showing risks covered and rates.
2420.0 Injury and Damage Allowance - This account
shall include the allowance for self-
insurance against potential liability for
death or injury to employees or others
and for damages to property. At least
annually a credit shall be made to this
account and a debit made to the appropriate
expense account; losses shall be debited
to this account.
2430.0 Pension and Benefit Allowance - This
account shall include the allowance for
pension or other benefits where the funds
represented by the allowance are included
as part of the assets of the company. A
separate subsidiary account shall be main-
tained for each kind of allowance included
herein. At least annually a credit shall
be made to this account and a debit made
to the appropriate expense account; pay-
ments made shall be debited to this account,
2440.0 Miscellaneous Operating Allowances - This
account shall include all operating
allowances not provided for elsewhere.
A separate subsidiary account shall be
maintained for each purpose for which
this account is being used.
34
2500.0 Other Non—Current Liabilities - Any non-current
liabilities not otherwise provided for in any
other account.
3000.0 OWNER'S EQUITY
3100.0 Common Stock --Issued - The par value, or the
stated value if there is no par value, and, if
not, the cash value of the consideration received
for such no par stock, of each class of common
stock issued. Company records shall contain
the particulars as to number of shares authorized,
par or stated value or value of consideration
received and other details such as voting rights.
3200.0 Preferred Stock --Issued - The par value, or
the stated value if there isno par value, and,
if not, the cash value of the consideration
received for such no par stock, of each class
of preferred stock issued. The company's records
shall contain particulars as to liquidation
rights, dividend arrears, and other details
such as voting rights.
3300.0 Treasury Stock - The cost of capital stock
repurchased and held in the treasury. Each
class of common or preferred stock held
as treasury stock shall be separately
identified by means of a subsidiary account.
3400.0 Proprietor's Equity - Equity of a sole proprietor,
partners, or members of a joint venture. Sub-
sidiary accounts shall be established to reflect
the equity of the individual partners or members
of the joint venture.
3500.0 Additional Paid -in Capital - The amount contri-
buted or assigned to capital stock in excess
of par value or stated value; or the value
of donations received; or the reduction in par
or stated value of capital stock; or the gain
or loss on sale of treasury shares; or capital
stock expenses; or other credits which are not
pr9perly includable elsewhere. Separate
subsidiary accounts shall be established as
necessary, so as to identify each class of
stock or type of transaction as described
immediately above.
3600,
35
Retaiized.Earnings - Represents the accumulated
amount df earnings which have not been capitalized,
paid to stockholders as dividends or otherwise
utilized.
3610.0 Appropriated Retained Earnings - This
account, appropriately subdivided by
purpose, shall include the amount of
retained earnings which have been
appropriated or set aside for specific
purposes.
3620.0 Unappropriated Retained Earnings - This
account shall include the balance,
either debit or credit, of unappropriated
retained earnings arising from earnings.
Authorized dividends shall be debited
to this account and credited to account
#2180.0, Dividends Payable.
3700.0 p'roprietor's Withdrawals -.Withdrawal by a
sole proprietor, or member of a partnership
or joint venture.,Subsidiary accounts shall
be established to adequately reflect all
transactions.
4000.0 OPERATING INCOME -These accounts shall include
all revenues due to rendering services connected
withthe cable activity.. Classification of income
by franchise area for the purpose of preparing;
reports required by FCC, franchising municipali-
ties `and .others may be accomplished by account
expansion right of the decimal point, but it is not
required by the Commission.
4100.0 ,Subscriber Revenues
4110.0 Installation Income - Represents
income obtained from charges'for
subscriber connections, relocations
and additional outlets.
4120.0 Regular Subscriber Charges = Repre-
sents periodical service charge
for cable service.
4130.0 Per Program or Per Channel Charges -
Income arising from special fees im-
posed to obtain programs not obtain-
able by means of regular subscription
fees.
4140.0 Other Subscriber Revenues -
revenues not includable in
4110.0, 4120.0 and 4130.0.
4200.0 Non -Subscriber Revenues.
4210.0 Advertising Income - Income arising
from advertising on cable channels.
36
Subscriber
accounts
4220.0 Special Service Income - Income
attributable to leasing or sale of
time or facilities.
4230.0 Other Non -Subscriber Revenues - All other
non -subscriber revenues not includable in
accounts 4210.0 and 4220.0.
5000.0 COST OF OPERATIONS
Account Numbering - The account numbering system
has been devised so that the costs of each department
or operating function may be accumulated separately
but in a consistent manner. In this system, operating
expenses have been segregated into three groups:
service costs, origination costs and selling, general
and administrative.
Classification of expenses by franchise area to corres-
pond with similar classification of revenues may be
had by appropriate expansion of accounts. Care should
be taken to provide uniform expansions for the various
functions.
Total company -wide expense for each natural cost can
be obtained easily since the unit and tens digit of
each account number signify cost factor as follows:
01.0 Salaries
01.1 Salaries
01.2
02.0
02.1
02.2
03.0
04.0
05.0
06.0
07.0
08.0
09.0
10.0
11.0
12.0
13.0
14.0
15.0
16.0
17.0
18.0
19.0
20.0
21.0
22.0
23.0
24.0
25.0
26.0
27.0
28.0
29.0
30.0
31.0-49.0
50.0
Salaries
Employee
Employee
Employee
and Wages
and Wages
and Wages
Benefits
Benefits
Benefits
37
- Officers and
Directors
- All Others
- Officers and
Directors
- All Others
Maintenance
Pole and Site Rentals
Microwave Service
Light, Heat and Power
Vehicle Expenses
Rent
Travel and Entertainment
Dues and Subscriptions
Contributions
Professional Services
Stationery and Supplies
Postage and Freight
Advertising and Promotion
Telephone and Telegraph
Sundry Office Expenses
Insurance
Provision for Doubtful Accounts
Local Taxes
Franchise, License and Permit•Fees
Technical and Creative Service
Film Expense
Studio Sets and Props
Program Materials and Supplies
News Services
Participation Expense
Fees and Royalties
Tariff and Leaseback Charges
Overhead Allocations
Reserved
Other
5100.0 Service Costs - The expenses attributable to
receiving and distributing signals to the
community.serviced by the System.
5101.0 Salaries and Wages - The salaries
of personnel engaged in technical
activities and maintenance.
5101.1 Salaries and Wages -
Officers and Directors -
The salaries of officers
and directors engaged in
technical activities and
maintenance.
38
5101.2 Salaries and Wages - All
Others - The salaries of
all other personnel engaged
in technical activities
and maintenance.
5102.0 Employee Benefits - Employees'
fringe benefits, including payroll
taxes and the cost of benefit
programs, such as, insurance and
pension plans.
5102.1 Employee Benefits -
Officers and Directors -
Fringe benefits of
officers and directors,
including payroll taxes
and the cost of benefit
programs, such as,
insurance and pension
plans.
5102.2 Employee Benefits -
All Others - Fringe
benefits of all other
employees, including
payroll taxes and the
cost of benefit programs
Such as, insurance' and
pension plans.
5103.0 Maintenance - The cost of repairs
and the replacement of minor
equipment. Expendable tools and
supplies should be charged to
this account.
5104.0 Pole and Site Rentals - The cost
of renting pole attachments and
rents applicable to the antenna
site.
5105.0 Microwave Service - The cost of receiving
microwave transmission from either an
associated or outside microwave service
company. Provision for the additignal
classifications required by FCC form 326
(Community Antenna Relay Service or Business
Radio Service and domestic point-to-
pointMicrowave radio service) may be
made by expanding this account.
39
5106.0 Light, Heat and Power - The cost
of light, heat and power charges
for the distribution system.
5107.0 Vehicle Expense - Operating
expenses for vehicles used in
operations or maintenance.
5108.0 Rent - Rentals relative to
service costs other than pole and
site rentals (included in account
5104.0), such as equipment rentals
and easements.
5129.0 Tariff and Leaseback Charges - The
cost of tariff and leaseback charges.
5150.0 Other - All service costs not
includable in another account.
5200.0 Origination Expense - The cost of program
origination, including local news, weather
and sports programs.
5201.0 Salaries and Wages - The salaries and
wages incurred for any personnel working
on program origination.
5201.1 Salaries and Wages - Officers
and Directors - The salaries and
wages of officers and directors
engaged in working on program
origination.
5201.2 Salaries and Wages - All
Others - The salaries and
wages of all other personnel
engaged in working on program
origination.
5202.0 Employee Benefits - Employees; fringe
benefits, including payroll taxes and
the cost of benefit programs, such as
insurance and pension plans.
40
5202.1 Employee Benefits - Officers
and Directors - Fringe benefits
of officers and directors,
including payroll taxes and the
cost of benefit programs, such
as, insurance and pension plans.
5202.2 Employee Benefits - All Others
Fringe benefits of all other
employees, including payroll
taxes and the cost of benefit
programs, such as, insurance and
pension plans.
5203.0 Maintenance - The cost of repairs and
replacement of minor equipment.
5208.0 Rent - Rental charges in connection
with the origination function.
5222.0 Technical and Creative Services - Charges
made in connection with technical and
creative services.
5223.0 Film Expense - The rental and transportation
costs incidental to the use of film.
5224.0 Studio Sets and Props - Labor and material
cost of expendable sets and props.
5225.0 Program Materials and Supplies - Incidental
materials and supplies consumed in
connection with programs.
5226.0 News Services - Contract payments relative
to news services which include line and
equipment services.
5227.0 Participation Expense - Costs, shared with
another company, that are associated with
program origination. These costs may be
eligible for capitalization.
5228.0 Fees and Royalties - Costs of fees and
royalties paid for bz;oadcast and similar
rights.
5250.0 Other - All origination costs not includ—
able in another account,
•-4
•
41
5300.0 Selling General and Administrative Expense
5301.0 Salaries and Wages - Salaries and wages of
personnel engaged in selling, general and
administrative activities.
5301.1 Salaries and Wages - Officers
and Directors - The salaries and
wages of officers and directors
engaged in selling, general and
administrative activities.
5301.2 Salaries and Wages - All Others -
The salaries and wages of all
other personnel engaged in selling,
general and administrative activities.
5302.0 Employee Benefits - Employees' benefits,
including payroll taxes and the cost of
benefit programs, such as insurance and
pension plans.
5302.1 Employee Benefits - Officers
and Directors - Fringe benefits
of officers and directors,
including payroll taxes and the
cost of benefit programs, such as
insurance and pension plans.
5302.2 Employee Benefits - All Others -
Fringe benefits of all other
employees, including payroll taxes
and the cost of benefit programs,
such as, insurance and pension
plans.
5306.0 Light, Heat and Power - The cost of purchased
light', heat and power, except for power used
in operating the distribution system.
5307.0 Vehicle Expense - The cost of vehicles not
chargeable to construction or service costs.
5308.0. Rent - The cost of rentals for space,
facilities and equipment.
5309.0 Travel and Entertainment - The cost of
traveling and entertainment incurred in
connection with operating the System
5310.0 Dues and Subscriptions - The cost of memberships
and dues in industry associations, local Chamber
of Commerce and other organizations.
42
5311.0 Contributions - The gifts made to community
chests, hospitals and otter charitable,
educational, religious and public welfare
organizations.
5312.0 Professional Services - The cost of
outside legal, accounting and consultant
services.
5313.0 Stationery and Supplies - The cost of
stationery, printed forms, miscellaneous
office supplies and office equipment.
5314.0 Postage and Freight - The cost of postage,
including the rental of postage meters.
5315.0 Advertising and Promotion - The direct
costs of selling, advertising and promotion.
Includes commissions payable to sale people
and outside parties.
5316.0 Telephone and Telegraph - The cost o
telephone and telegraiph services.
5317.0 Sundry Office Expenses - Miscellaneous
office expenses, such as janitorial services
5318.0 Insurance - The cost of fire, use and
occupancy and public liability insurance
including expenses of self-funded insur-
ance plans.
5319.0 Provision for Doubtful Accounts - The
provision for estimated losses in the
collection.of trade accounts receivable.
5320.0 . Local Taxes - The estimated liability for
local taxes which accrued during the period
relative to evenues, property and capital
will be charged to this account. (If
desired, subsidiary accounts may be main-
tained for different types of taxes.)
5321.0 Franchise, License and Permit Fees - This
account includes the franchise payments,
payable under the Company's franchise agree-
ment, which are applicable to current
operations and which are paid. to Federal,
State and Local governments.
43
5330.0 Overhead Allocations - Overhead
allocated by a parent or controlling
company to its subsidiary, as,
described in Section 599.40 (J),(5).
5350.0
Other General and Administrative Expenses
Generalandadministrative expenses
for which no specific account 'has been -
provided.
5400.0 Depreciation and Amortization
5410.0
5420.0
Depreciation - The amounts provided
annually for depreciation of fixed assets,
including amortization of leasehold
improvements. Offsetting credits are to
"Accumulated Depreciation and Amortization"
account 1400.0. Depreciation expense should
allocate the cost of fixed assets over their
estimated economic life. Separate sub-
sidiary accounts shall be provided for each
unit, group or type of asset.
Amortization - Amounts provided annually for
depleting deferred start up costs, organi-
zation costs, franchise costs, plant adjust-
ment valuations, and other amortizable
assets. Separate subsidiary accounts shall
be provided for each unit, group or type of
asset.
6000.0 OTHER INCOME (OTHER EXPENSES)
6100.0 Other Income - The income derived from sources
not directly associated with CATV services.
6110.0
6120.0
Interest - The amount of ,interest
accrued or received from investments
of the Company..
Dividends - The amount of dividends.
accrued or. received from stock investments
of the Company.
6130.0 Other - Other income not includable in
another account.
44
6200.0 Other Expenses
6210.0 Interest - Interest accrued on the
Company's obligations, including notes,
bonds and mortgages payable.
6220.0 Miscellaneous - The amount of costs not
related to the operation of cable
television business.
7000.'0 PROVISION FOR FEDERAL AND STATE INCOME TAXES - The estimated
provision for income taxes based upon the Company's operation
for the period.
71'00.0 Federal Income Taxes - Portion of provision
for estimated Federal income taxes payable
• currently.
7200.0 State_ Income Taxes - Portion of provision
for State income taxes payable currently.
8000.0 EXTRAORDINARY ITEMS - This, account, appropriately expanded to
meet particular needs, should be used to record significant
transactions which need to be separately displayed and which
are of an unusual or infrequently occurring nature, as
defined in APB#30 - Reporting the Results of Operations - and
which are not otherwise inconsistent with the UAS.
9000.0 PROGRAM ORIGINATION CLEARING ACCOUNT - This account shall
include costs for program origination expenses, the incidence
of which arose as a cost in another account and has been
accumulated here for analytical and distribution purposes.
45
9100.0 CONSTRUCTION. WORK IN PROGRESS CLEARING ACCOUNT - This
account shall include costs for construction work in
progresswhich arose in another account but are
accumulated here for analytical and distribution
purposes.
. 9200.0. -'START-UP COSTS CLEARING ACCOUNT - This account shall
_include start-up costs' which. arose in another account
but are accumulated here for analytical and distri-
bution purposes.. -
9300.0 SELLING, GENERAL AND ADMINISTRATIVE CLEARING ACCOUNT -
Thisaccount-shall inc.lude costs for selling, general
and administrative which arose in another account
but are accumulated here for analytical and distribu-
tion purposes.,
9400.0
MARKETING AND INSTALLATION CLEARING ACCOUNT - This
account shall include'costs for,marketing and
installation which -arose in -another account butare
accumulated here for analytical and distribution
purposes.
•
9500.0SERVICE EXPENSE CLEARING ACCOUNT - This account shall
include costs for service expense which arose in'
another account . but .are, 'accumulated 'here for , analytical
and distribution purposes.
9600.0 - 9900.0 OTHER CLEARING ACCOUNTS - Clearing accounts,
_required for managerial or other purposes,
not specified above.
46
599.40 •Application Instructions
A. Amortization - As used in the UAS, refers to the periodic
write-down of intangible assets on a straight-line basis.
This will be accomplished by charging the appropriate
amortization expense account and crediting the appropriate
allowance for accumulated amortization account.
Intangible assets shall be posted to the appropriate
accounts provided and amortized as specified in the
UAS: Balances arising on or before December 31, 1973
shall be differentiated and identified from balances
arising thereafter, and from each other, by means of
appropriate subsidiary accounts and such other means
as may be deemed necessary; Intangible assets which
under generally accepted accounting principles are
not required to be amortized and were on the company's
books on or before December 31, 1973 may be amortized as
prescribed in the UAS; if not amortized, they shall be
differentiated and otherwise identified from intangible
assets being amortized by means of appropriate subsidiary
accounts and such other means as may be necessary.
The following table lists the intangible asset accounts,
accounts containing the periodic expense charges, and
accounts containing the accumulated amortization allow-
ance [except that amortization of bond discount and bond
premium is not included here as it is separately discussed
elsewhere].
47
TABLE I
Amortizable Expense
Account Periodic Allowance For
Amortization Accumulated
Description Number Expense Amortization
Broadcasting Rights 1160.0 5421.0 1421.0
Capitalized Leased
Property 1280.0 5422.0 1422.0
Leasehold Improve-
ments 1290.0 5423.0 1423.0
Plant Adjustment
Excess Fair
Value 1510.0 5424.0 1424.0
Plant Adjustment
Goodwill 1520.0 5424.1 1424.1
Intangible Assets:
Franchises, Licenses
and Permits 1610.0 5425.0 1425.0
Other Intangible
Assets 1611.0 5425.1 1425.1
Goodwill 1612.0 5425.2 1425.2
Start-up Costs 1621.0 5426.0 1426.0
Other Deferred Costs 1623.0 5426.1 1426.1
Organization Costs 1640.0 5427.0 1427.0
The Periods of amortization will be as follows:
1. Broadcasting Rights shall be amortized on a systematic
basis that will provide a proper matching of expenses
with revenue.
2. Capitalized Leased Property shall be amortized over the
economic life of the asset.
3. Leasehold Improvements shall be amortized over the
lesser of the life of the leasehold or life of the
improvement.
48
4. Plant Adjustment Excess Fair Value.shall be amortized
over the life of the assets purchased.
5. Plant Adjustment Goodwill shall be amortized over
the lesser of the life of the franchise or the life
of the assets but not more than 40 years.
6. Intangible Assets: Franchises, Licenses, and Permits
shall be amortized over the lesser of the life of
these assets or the expected future benefit. They
may be amortized individually or a composite rate
may be developed.
7. Other Intangible Assets shall be amortized over the lesser
of the life of the assets or the expected future benefit.,
either individually or using a composite rate.
Goodwill shall be amortized according to generally
accepted accounting principles.
9. Start-up Costs shall be amortized over a ten year period.
See the discussion on start-up costs in Section 599.40
(I) for more complete details.
10. Other Deferred Costs are any deferred charges which
are mot includable in start-up costs, nor includable
in any other account. Amortization shall be over the
lesser of the life of the assets or the expected
future benefit but not to exceed 10 years.
11. Organization Costs shall be amortized over the lesser
of the life of the assets, or the expected future
benefit, or the life of the franchise, but not to
exceed 10 years.
Intangible asset account balances which reflect transactions
occurring on or before December 31, 1973 and which under
generally accepted accounting principles are not required
to be amortized, but which the company now chooses to
amortize, shall be amortized over a period of at least
60 months or as prescribed in the UAS, whichever is longer.
49
B. Accounting For Acquisitions - When an investment is made
in a subsidiary, there are two common methods of recording
the investment on the booksof the parent:
1. Record the investment -at cost unless a fundamental
change -has occurred - requiring a:restatement- of
value. This is commonly- known -as.. the cost method.
2. Record the Investment at cost but take up •
fluctuations in the net worth of the subsidiary
as shown by the subsidiary's books of account.
This is.commdnly known as the equity method,.
A cable television company shall record investment
in subsidiaries and other companies using the
cost method, which shall be reflected in the non' -
consolidated portion of all financial reports and
or schedules filed with the Commission, except that
consolidated financial reports shall be prepared
using the cost, equityor consolidated method.
•
Control of an acquired company may be obtained
through three basic methods.
1. Pooling of interests, where stock is exchanged
which effectuates the changein control.
2. Purchase, where the assets and possibly the liabilities
of the firm are obtained via an exchange of cash or
other assets.
3. Stock Purchase, where stock is purchased, the assets
and liabilities of the acquired company are not affected.
The accounting for an acquisition Shall be governed as
follows:
1.
Pooling of Interests - If a pooling of interest has
occurred and theacquired company is a cable' television
company, the assets and liabilities of the acquired com-
pany shall continue to be carried at their value
on the books immediately prior to the acquisition.
50
2. Purchase - If a purchase has occurred, and the acquired
company is a cable television company, the only adjust-
ments allowed on the books of the acquired company shall
be those directly related to the terms of the purchase
agreement. Otherwise, assets and liabilities shall
continue to be valued at their former book value. If
the acquiring company is a cable television company and
merges or consolidates the acquired cable television com-
pany plant with its own, the difference between the book
value, less depreciation, and the purchase price of the
acquired company shall be set up in the appropriate
plant adjustment account. If a cable television
company acquires a non -cable television company, the
assets and liabilities of the acquired company may
be appropriately adjusted.
3. Stock Purchase - No adjustment on the books of the
acquired company, other than to reflect ownership
changes, shall be permitted.
The plant adjustment accounts are provided to account
for the difference between the purchase price and the
original cost, less depreciation and/or amortization,
of all or a portion of a cable television company. The
difference as determined above is split into two
parts:
1. Account #1510.0, Plant Adjustment Excess
Fair Value contains the difference between
original cost, less depreciation and/or
amortization, and the fair value of the
cable television. 6ystem purchased as determined
in accordance with generally accepted
accounting principles.
2. Account #1520.0, Plant Adjustment Goodwill
contains the difference between the purchase
price and the fair value of the purchased
cable television system or portion of.a cable
television system if the entire system.is
not purchased.
The balances in Account #1510.0 and #1520.0 are subject
to amortization as provided for in Section 599.40(A)
Separate subsidiary accounts shall be used to account
for individual or otherwise unrelated purchases.
51
C. Construction Work in Progress - This account is provided
for the purpose of accumulating the construction cost
of uncompleted projects. Costs may be charged directly
to this account or may first be charged to individual
expense accounts and then transferred via an adjusting
entry; costs may be charged to a clearing account and
then transferred to this account. Subsidiary accounts
are to be set up to account for individual construction
projects.
The includable costs are those associated with in-house
construction, or supervision of construction by others
and will include design, planning, salaries and wages,
depreciation, interest charges, overhead and other
related expenses. Generally speaking a systematic plan
determining construction work in progress should be
developed, reduced to writing, approved by the board of
directors or managing partner and be available if required
by the Commission.
The practice of imputing interest on construction work
in progress to determine the amount of interest to be
capitalized will not be approved. Interest to be
included as part of the cost of the work in progress
must be directly related to financing obtained for that -
specific job [or jobs if a series of projects has been
undertaken]. A specific example of allowable interest
would be a construction loan, of limited duration, obtained
for the purpose of financing the project [or projects]
involved. Interest incurred on permanent financing may
not be charged to the construction work in progress account
but will be expensed. Permanent financing is long-term
financing [over one year]. Interest on construction
loans may be expensed rather than capitalized at the
company's option.
52
D. Depreciation - For purposes of reporting to the
Commission, depreciation will be calculated on a
straight-line basis [except that the "Production
Plan" as defined below is also permitted] using
original cost. Estimated service life should be
based on experience, judgement or industry -wide studies
Net salvage value, if any, should represent the best
estimate available.
Depreciation will be calculated using one or more of
the following methods:
1 Unit Plan in which each depreciable asset is
individually depreciated and records are main-
tained on each depreciable asset.
2. Group Plan in which a group rate of depreciation
is calculated based on the average or mean life of
the individual assets comprising the group and applied
against the depreciable cost of the group.
3, Production Plan in which depreciation is computed
as a fixed rate per unit of use per depreciable
a,set.
If the group plan is selected, depreciable cost
will consist of the sum of the original cost of
all depreciable assets not yet fully depreciated.
Each group should be based upon the definitions
found in the Fixed Asset section of the UAS,
i.e., upon each subsidiary asset account, if
provided, or upon the general asset account
otherwise.
If the production plan is selected, the following
formula will be used to determine depreciation
per unit:
Original cost less
net salvage value = Depreciation
Activity expense per unit
[Miles, hours, or other
measurement of use]
53
Any one, part or all of the above methods may
be selected in calculating depreciation. Depre-
ciation will be booked at least annually by
debiting account #5410.0, Depreciation and
crediting account #1410.0, Allowance for Depre-
ciation. A separate subsidiary account is to be
set up for each group or class of depreciable assets
Under either the unit plan or production plan
a gaits or loss on the sale or disposition of
an asset will not be recognized if a replace-
ment is obtained. Such gain or loss will be
used to adjust the cost basis of the replace-
ment. If a replacement is not purchased, a
gain, if not significant, will be credited to
account #6130.0, Other Income. If significant,*
the credit should be booked in account #8000.0
Extraordinary Items. Losses will be charged
to account #6220.0 Miscellaneous, if not
significant, or to account #8000.0 Extra-
ordinary Items, if significant.
Under the group plan gains or losses resulting
from the sale or retirement of assets are not
recognized. Upon disposal, a credit for the full
value of the asset is made to the account in which
the asset was carried. Concurrently, a similar
charge is made to account #1400.0, Allowance for
Depreciation and Amortization less salvage, which is
included in account #1110.0 Cash. Removalcosts
shall be charged to account #1400.0 and credited
to account #1110.0. If the retired assets are
traded -in, the book value of the new assets will
be adjusted by reducing its cost by the amount of
the trade-in.
^'APB#30
54
Depreciation expense is to be charged at least
annuallyin the manner previously described.
Each company will be allowed to set guidelines in
determining capitalization and expense policies
subject to the following restrictions: (1) Each
company shall capitalize any individual component
or other asset purchased, constructed by, or for
them, and which exceeds $250 in cost and has a life
of more than one year; (2) Components procurred
(as described above), which in the aggregate com-
prise an identifiable asset whose value exceeds
$250, shall be capitalized even though the cost of
each component is $250 or less: (3) When quantities
of the same article are ordered, delivered or billed
at the same time the test to determine whether
they are to be capitalized shall be applied individ-
ually to each component as described in part
(1) and (2) of this paragraph.
Each company shall expense any asset which is not
capitalized or held as part of inventory. Once
determined, the capitalization and expense policy
of each company must be consistently followed.
To determine when a capital asset is acquired or
retired during a period, a systematic plan is
to be adopted and followed, and any of the
following will be acceptable for computing
depreciation:
A. Use of the average of the opening.and
closing balances in the asset account.
55
B. Assets acquired in the first six months or
retired in the last six months are included
for a full year.. Assets acquired in the
last six months or retired in the first
six months shall not be depreciated.
. Depreciation computed for fractional
parts [whole months] of the year.
The allowable depreciation rates established
by the United States Internal Revenue Service
will generally be considered definitive in
determining service life of an asset except
where a deviation, based upon the expected
economic life of the asset, can be justified.
The following suggested guidelines are in
general conformity and are recommended for use.
DEPRECIATION GUIDELINES
1220.0 Buildings
1230.0 Head -End
1231.0 Tower & Antenna
1232.0 Electronic Equipment
1233._0 Other
1240.0 Trunk & Distribution System
1241.0 Poles
1242.0 Cable
1243.0 Amplifiers
1244.0 Subscriber Devices
1250.0 Test Equipment and Tools
1260.0 Program Origination
Equipment
1271.0 Vehicles
1276.0 Furniture and Fixtures
1299.0 Miscellaneous Equipment
56
ASSET DEPRECIATION_RANGE TIN YEARS]
Asset
Lower Guideline Upper
Limit Period Limit
9.0
9.0
9.0
20.0
8.0
8.0
8.0
7.0
7.0
3.0
8.0
45,0
11.0
11.0
11.0
22.5
10.0
10.0
10.0
8.5
9.0
4.0
10.0
10.0
13.0
13.0
13.0
25.0
12.0
12.0
12.0
10.0
11.0
5.0
12.0
,
57
E. Investments - Separate accounts have been provided for
short-term investments. Each account may be subdivided
by category, type or by investment; in all cases
separate subsidiary accounts shall be set up for
investments in any company which is more than 50%
owned or controlled.
Investments will be recorded at cost. Relatively
significant, permanent declines in value will be,
recognized by crediting an appropriate Allowance
for Decline in Investment Value * account and charge
account # 6200.0, Other Expenses. In no case, other
than bankruptcy, business failure or other disastrous
occurance, shall a decline in value of an investment.
in a subsidiary be recognized. [ A return of capital
shall be recognized.]
Bonds purchased at a premium or discount shall be
set up at cost. As interest is received, the premium
or discount will be amortized on..a straight-line
basis over the life of the security by debiting
or crediting the appropriate investment account
for the amount to be amortized.
Cash dividends received by a parent concern which
represent a return of capital will be credited to
the appropriate investment account and charged to
account # 1112.0 Bank Accounts [ or other appropriate
account] or to account # 1142.0, Other, if an accrual
has been set up. Conditions which indicate that a
return of
An account has not been provided in the UAS for
Allowance for Decline in Investment Value, as such.
Whenever this account is required, it should be set
up in the appropriate investment group [ long or short-
term]. Only the diminished value of the investment
shall be included on the balance sheet.
5.8
capital has occurred are:
1. Dividends paid immediately after a controlling
interest has been obtained.
2. Dividends received some time after acquisition,
paid from :retained earnings in excess of recent
earnings.
Income received on .investments will be credited
to account #6110.0 Interest or account #6120.0,
Dividends and charged to account #1112.0 Bank
Accounts [or other appropriate account]. If
an accrual has previously been set up, credit
the appropriate accrual account [either account
#1141.0 Interest or account x'#1142.0 Other for
dividends accruals]. To set up an accrual ,
charge accounts .#1141.0 or #1142.0 as required.
F. Owner's Equity - Each class of stock issued will
be set up in a separate subsidiary account, with par-
ticulars as to par or stated value, voting rights and
number of shares issued clearly described. Memorandum
accounts for capital stock issued and reacquired are
authorized for control purposes.
In the event that stock is issued for either pay-
ment •for services or for assets ,[.other than .cash]
the values to be applied based upon APB #29,
are in order of preference:
1. Fair value of the assets surrendered.
2. Fair value of the assets (or services)
received..
59
If stock is acquired to be held as "treasury
stock" the cost. method will be used. Upon
purchase of treasury stock account #3300.0,
Treasury Stock is debited for the cost of the
acquired shares, and account #1112.0 Bank
Accounts [or other appropriate account, if any]
is credited for the cost of the purchase. When
the reacquired stock is sold, charge account
#1112.0, Bank Accounts [or other appropriate
account, if any] and credit account #3300.0,
Treasury Stock. A gain on the sale of treasury
stock is credited to account#3500.0, Additional
Paid -In Capital; a loss is charged to this account.
For balance sheet presentation, the amount of
retained earnings restricted by the purchase of '
treasury stock should be footnoted.
Stock issued by the company may be repurchased
and retired. If this is done all affected
equity accounts [including account #3500.0
Additional Paid -In Capital, if appropriate]
should be charged to remove the retired stock.
A loss should be charged to account #3600.0
Retained Earnings; a gain is credited to
account #3500.0, Additional Paid -in Capital
to the extent that previous net gains from
sales or retirements of the same class of stock
are included therein; otherwise the loss should
be charged to account #3600.0, Retained Earnings
60
G. Petty Cash - To handle disbursements for small,
miscellaneous expenses, petty cash funds are
authorized. Petty cash funds shall be maintained
on the imprest basis. The number of petty cash funds
and the amount in each should be kept to a minimum.
The fund or funds shall be established by withdrawing,
from the general bank account the amount needed.
This amount will be debited to account #1111.0,
Petty Cash Fund. The fund shall- be periodically
reimbursed by drawing a check for the amount of the
disbursements, and the reimbursed expenses may be
individually charged to the appropriate expenditure
accounts or charged in total to account #5350.0,
Other General and Administrative Expenses.
H. Separation of Business Activity
1. Common assets, facilities, personnel or other
resources may be used to provide other than cable
television and related services. The phrase "cable
television and related services" shall include
services to subscribers; advertising; the sale of
converters; and similar type activites but shall not
include services or activities not normally related
to providing cable television service.
2. The accounts of all cable television companies shall
be maintained so as to differentiate transaction
totals and account balances which result from
providing cable television and related services
from those that result from other activity.
Transactions with an affiliate shall likewise be
differentiated.
3 To differentiate transaction totals and account
balances as prescribed above (i) the accounts may
be subdivided by the use of appropriate subsidiary
accounts or (ii) a clearing account, subdivided as
required, may be set up or (iii) a control account,
subdivided as required, may be set up.
61
I. Start-up.Costs - These are operating costs incurred
net of revenues received during the development period
of the cable television system or segment of the system,
and which have begin deferred during the pre -operating
and/or immediate post -operating period. Start-up
costs are costs not includable in Franchises, Licenses
and Permits, Orgatiization Costs or Construction Work
in Progress accounts. If desired, start-up costs may
be expensed.
The period of amoftitation will be 10 years and
will commence when any one of the following
conditions occurs:
1. Two years from completion of system, or
segment of system. Completion occurs when
physical construction and testing have
ceased; the system or segment of a system is
accepted by the company and is capable of servic-
ing at least one subscriber. A "segment of
system" is herein defined as a portion of a
system which can be geographically described,
and will be constructed according to its own
time -table and/or specifications.
2. Subscriber saturation reaches 25% of
potential subscribers. Potential subscribers
are defined as homes passed.
If desired, a cable television company may adopt one or
more conditions for determing when deferment ceases and
.amortization begins that differs from the above, provided
that the conditions will not result in a period longer
' than that in (1) above.
•
62
J. Allocations
1. Allocations may be used to separate cable television
from other businesses. Depending on the particular
facts and circumstances, the allocation of a specific
part of a transaction total or account balance may
be necessary to achieve results that are accurate,
reasonable or equitable. Where the allocation of
a transaction total or account balance is not incon-
sistent with our accounting requirements and instruc-
tions, as set forth in the UAS, allocations will be
permitted if the basis upon which the allocation
is made is such that it will achieve results that
are accurate, reasonable or equitable and be
consistently applied.
2. Management of each company may determine the most
appropriate allocation policy to be followed. This
allocation policy shall be reduced to writing and
made available to the Commission or its staff when
necessary.
3. Where necessary and appropriate, allocations, or
allocations which are different in nature, scope or
effect from that made by the company, may be required
by the Commission to meet its informational needs.
4. To allocate to the prescribed accounts the cost of
assets constructed, purchased by or for a cable tele- '
vision company and for which individual costs of each
separate identifiable unit of equipment (as provided
for in the UAS) are not available or can not be obtained
[such as for turn -key construction contracts, etc.]
S
x.
63
the following guidelines are prescribed: The allocation
shall be based on (i) cost records or (ii) engineering
records or (iii) such other records or analysisof
operations as will yield the most reasonable and
equitableresult, or (iiii) if none of the above are
available, management's best estimate, the basis of which
should be reduced to writing and inade available. to the
Commission or its staff if necessary.
5. Allocations of corporate overhead by a controlling
company ,are permitted and shall be posted in the
appropriate prescribed accounts as (i) corporate over-
head which represents a cost to the parent company but
does not directly benefit the subsidiary or (ii) corporate
overhead which represents.a cost to the parent company
and which represents a specific function, or functions,
performed for the benefit of the subsidiary. Appropriate
subsidiary accounts will be used to accomplish this
segregation. As used in this paragraph, the phrase
".specific function" shall include the cost of supplying
professional, clerical, administrative, purchasing and
other similar functions for the benefit of the subsidiary
Capitalized Leases,- It is the intention of this. application
instruction to incorporate the substance of APB #5 ,and
APB #31 as part of our accounting andreporting requirements.
Accordingly, any lease, which in substance is essentially
an installment purchase, shall be capitalized asprovided
for in APB #5.
A. The straight-line method of amortizing the amount of
the asset against income shall be used. Separate
subsidiary accounts shall be set up in account #5420.0
Amortization and account #1420.0 Allowance for
Accumulated Amortization, to reflect entries. The
period of amortization shall reflect the economic life
of the asset.
B..• The discounted value of the asset, net of the effective
interest and service and similar costs which may be
included as part of the rental payment shall be debited
to account #1280.0 Capitalized Leased Property and
credited to account #2330.0 Obligations on Capitalized
Leases. .
C. Sale and leaseback arrangements shall be disclosed and
accounted for as in APB #5.
64
599.90 Obligation of Cable Television Company to Notify Commission
A. A person who is a cable television company and that
ceases to be so shall promptly notify the Commission
of that fact and file, no later than 30 days after it
ceases to be a cable television company, a final finan-
cial report in the form and manner prescribed by the
Commission.
B A person who is a cable television company and sells
or otherwise divests itself of all, or a substantial
part of a cable television system or another cable
television company shall promptly notify the Commission
of that fact and file, no later than 30 days after the
sale or divestiture is completed, a final financial
report in the form and manner prescribed by the
Commission. For purposes of this paragraph the phrase
"sells or otherwise divests" shall include not only
the sale of property but also changes of ownership or
control.
C. Every cable television company shall notify the Conunission,
and continue to keep the Commission informed, whenever a
significant change in the financial position of such
company occurs or is about to occur. For pur'poses of
this Section, "a significant change in the financial
position" shall include, but not be limited to:
1. Inability to meet current payments as they come due.
2. Contemplation of filing a petition in bankruptcy
or for a court-ordered reorganization.
3. Suspension of corporate stock from trading on a
regulated exchange by action of the stock exchange
or the Securities and Exchange Commission.
Notification that financial reports or practices
are under investigation by any government agency,
federal or state, but .. this shall not include tax
audits or similar audits or investigations which
are conducted periodically and are not unusual
in scope or nature.
STATE OF NEW YORK
COJ 4ISS ION ON CABLE • !TELEVISION
In -the • Matter of
Uniform Accounting -and Financial Reports ) Docket No. 90031
:ERRATA
(Issued. November 4, 1974)
The Order and. Opinion issued this day in the above -
captioned matter and the Rules adopted by said. Order and Opinion
contain a number of errors, which should be corrected as follows:
Page . ;
4
Order and Opinion
Correction
The quotation of Sec-
tion 816 (5) at the
bottom of the page
should read as follows:
"The commission shall
have and may exercise
all other powers neces-
sary or appropriate to
carry out the purposes
of this article."
(line 15) Add "and/" after
"necessary".
Rules
(Uniform Accounting System)
Change "balance0'to
"balances" in the first
line of paragraph 2
at the bottom of the
page.
16
I f
53
2 =4= • - •
Change the title of account
1610.0 to. read "Intangible
Assets".
Renumber accounts 1611.0 and
1612.0, entitled "Other In-
tangible Assets" and "Good-
will", respectively as ac-
counts 1612.0 and 1613.0, re-
spectively, and add a new ac-
count 1611.0, entitled "Fran-
chises, Licenses and Permits".
Substitute, the attached page
-for .the. page contained.in
the Rules..
Delete the underscoring of
"unit plan" and "production
plan" in the first line of
the second paragraph.
Change the footnote to read
as follows: "See Accounting
Principles Board, Opinion No.
30 (June 1973), which, among
other things, deals with the
reporting of extraordinary,
unusual and infrequently
occurring events and trans-
actions."
54 (line 7) Delete the commas and add
"or" after "purchased".
" (line 8)
63
Delete " and" after "thee'.
2
The paragraphs identified as
"A", "B" and "C" at the
bottom of the page should be
numbered "1", "2" and
respectively.