N.Y. Comp. Codes R. & Regs. tit. 16 § 895.1

Current through Register Vol. 46, No. 17, April 24, 2024

Section 895.1 - Required contents of franchises

A franchise will be confirmed or approved by the commission only if it contains provisions in substantial compliance with the following:

(a) Recitations indicating that:

(1) the franchisee's technical ability, financial condition, and character were considered and approved in a full public proceeding affording due process;

(2) the franchisee's plans for constructing and operating the cable television system were considered and found adequate and feasible in a full public proceeding affording due process;

(3) the franchise complies with the commission's franchise standards; and

(4) the franchise is nonexclusive.

(b) For an initial franchise, full description of the system proposed for construction, which shall indicate the specific geographical areas to be wired, and the location of all trunk and feeder plant. The description shall indicate anticipated stages of completion of construction at six-month intervals for the entire franchise area and a specific schedule showing that significant construction will be accomplished and cable television service will be available to a significant number of subscribers within one year after the effective date of the certificate of confirmation of the franchise; or for a renewal, a description of the system as constructed and as will be expanded or enhanced during the term of the renewal. In either case, the provision shall specify the minimum channel capacity of the system and describe any areas where the system will be extended and service made available only in accordance with specific conditions, which requirement may be fulfilled by reference to the minimum standards governing line extension in section 895.5 of this Part.

(c) A provision specifying that the franchisee shall construct and maintain its cable system using materials of good and durable quality and that all work involved in the construction, installation, maintenance, and repair of the cable system shall be performed in a safe, thorough and reliable manner.

(d) A provision stating that access to cable service will not be denied to any group of potential residential subscribers because of the income of the residents of the local area in which such group resides.

(e) A provision stating that the rates and charges imposed by the franchisee for cable television service shall be subject to regulation in accordance with Federal law.

(f) A provision describing the channel capacity and facilities, equipment and support for public, educational and governmental (PEG) access which requirement my be fulfilled by reference to the minimum standards set forth in section 895.4 of this Part; provided, however, that if any of the requirements for PEG access exceed such minimum standards, the provision shall state that the channel designation requirements for PEG access shall not be different than the channel designation requirements in any other cable television franchise granted by the municipality and that the provisions for facilities, equipment and support for PEG access shall be competitively neutral when compared to such requirements as may be contained in such other franchise.

(g) A provision specifying the franchise term which shall be up to a maximum of 15 years from the effective date of the certificate of confirmation or approval of a franchise renewal.

(h) A provision prohibiting the abandonment of cable television service in any portion of the franchise area without the written consent of the franchising municipality.

(i) A provision:

(1) requiring the franchisee to indemnify the municipality for, and hold it harmless from, all liability, damage, cost or expense arising from claims of injury to persons or damage to property occasioned by reason of any conduct undertaken pursuant to the franchise; and

(2) specifying minimum amounts of liability insurance to be obtained by the franchisee.

(j) A provision stating that any municipal property damaged or destroyed shall be promptly repaired or replaced by the franchisee and restored to serviceable condition.

(k) A provision stating that the franchisee will not refuse to hire or employ, nor bar or discharge from employment, nor discriminate against any person in compensation or in terms, conditions or privileges of employment because of age, race, creed, color, national origin or sex.

(l) A provision reserving to the municipality the right to adopt, in addition to the provisions contained in the franchise and existing applicable ordinances, such additional regulations as it shall find necessary in the exercise of its police power; provided, however, that such regulations are reasonable, not materially in conflict with the privileges granted in the franchise and consistent with all Federal and State laws, rules, regulations and orders.

(m) A provision reserving to the municipality the right to inspect all pertinent books, records, maps, plans, financial statements, and other like materials of the franchisee, upon reasonable notice and during normal business hours.

(n) A provision indicating by title the office or officer of the municipality that is responsible for the continuing administration of the franchise.

(o) A provision stating:

(1) whether a franchise fee shall be payable by the franchisee to the municipality; and, if applicable;

(2) the precise amount or method of calculation of such franchise fee;

(3) whether any facilities or support for public, educational and governmental access that may be required by the franchise shall be part of such franchise fee. This provision shall also provide that the amount or method of calculation shall be competitively neutral when compared to the amount or method of calculation of a franchise fee contained in any other cable television franchise granted by the municipality

(p) A severability clause identifying any franchise provisions which the municipality and the franchisee deem to be material and stating that should any other provision of the franchise be held invalid by a court or a regulatory agency of competent jurisdiction, the remaining provisions of such franchise shall remain in full force and effect.

(q) A provision stating that the terms of the franchise are subject to the approval of the Public Service Commission.

(r) A provision requiring the franchisee to file applications for all necessary approvals from the commission and the Federal Communications Commission within 60 days from the date the franchise is granted or amended.

(s)

(1) If municipal approval is required for a transfer of ownership or control of any franchise or cable television facilities serving a significant portion thereof, such approval shall be required in addition to any other approval required by applicable State law or regulation. A transfer of ownership or control for purposes of municipal jurisdiction shall mean the transfer of an equity or controlling interest or the equivalent thereof of 50 percent or more of any entity who controls the cable television system serving the municipality, unless otherwise specified in the franchise.

(2) In considering an application for the transfer of ownership or control of a franchise or cable television facilities serving a significant portion thereof, a municipality may consider the applicant's:

(i) technical ability;

(ii) the financial ability;

(iii) good character; and

(iv) other qualifications necessary to continue to operate the cable television system consistent with the terms of the franchise.

(t) A provision that any valid reporting requirements contained in the franchise may be satisfied with system-wide statistics, except for reporting requirements related to franchise fees and customer complaints.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 895.1