N.J. Admin. Code § 14:18-15.7

Current through Register Vol. 56, No. 24, December 18, 2024

Section 14:18-15.7 - Franchise fee payment

(a) Upon provision of service to one or more residents in any municipality, a cable television company operating under a system-wide franchise shall annually pay:

1. To the municipality a fee in lieu of all other franchise taxes and municipal fees a sum equal to 3.5 percent of gross revenues, as that term is defined by N.J.S.A. 48:5A-3x, received by subscribers within the municipality; and

2. To the State Treasurer, an amount equal to that paid as charges or fees for basic service by residents that are eligible for the Pharmaceutical Assistance to the Aged and Disabled, not to exceed 0.5 percent of gross revenues, as that term is defined by N.J.S.A. 48:5A-3x. The State Treasurer shall be responsible for administering the program.

(b) A cable television company operating under a system-wide franchise may petition the Board for certification that it is capable of serving 60 percent or more of the households within a particular municipality in the following manner.

1. If a cable television company operating under a system-wide franchise believes it is capable of serving 60 percent or more of the households within a particular municipality, it shall file certification with the Board that such threshold has been reached.

2. The cable television company operating under a system-wide franchise that has applied for certification shall notify the affected municipality, the existing cable television company or companies serving the municipality, and the Department of Public Advocate, Division of Rate Counsel at the same time that it files for certification with the Board.

3. The Board shall review the certification and either approve or deny it within 45 days. The Board shall notify all cable television companies serving a municipality, both system-wide franchises and municipal-consent-ordinance-based franchisees, that it has approved the certification of the cable television company.

(c) A cable television company that has received municipal consent and a Certificate of Approval from the Board shall continue to annually pay to the municipality a fee in lieu of all other franchise taxes and municipal fees a sum equal to two percent of gross revenues from all recurring charges in the nature of subscription fees from cable television reception service until such time as the Board approves the certification by a cable television company operating under a system-wide franchise serving the same municipality that it is capable of serving 60 percent or more of the households in the municipality.

(d) Upon Board approval of a certification that a cable television company operating under a system-wide franchise is capable of serving 60 percent or more of the households in the same municipality as the cable television company with municipal consent, the cable television company operating under a municipal-consent-ordinance-based franchise shall pay fees to the municipality and the State Treasurer in accordance with (a)1 and 2 above. The cable television company shall begin collection and payment of the fees specified in (a)1 and 2 above no later than 90 days after the date of the Board order approving the certification.

(e) If, during the 45-day review period, the Board determines to disapprove the certification, the Board shall, or may designate Board staff to, schedule a meeting with the cable television company operating under a system-wide franchise to discuss the reasons for the Board's disapproval and to allow the cable television company operating under a system-wide franchise to present questions to the Board or its designated staff concerning the reasons for the Board's disapproval.

(f) Such meeting shall be scheduled no later than two weeks following the expiration of the 45-day review period required by (e) above.

(g) The cable television company operating under a system-wide franchise shall have 30 days following the date of the meeting with the Board or its designated staff required by (f) above to file an appeal of the Board's decision.

(h) Subsequent to filing of an appeal by the cable television company operating under a system-wide franchise, the Board shall thereafter schedule an administrative hearing not later than 30 days following the date of the filing of the appeal by the cable television company operating under a system-wide franchise.

(i) The Board shall issue a final decision on the appeal filed by the cable television company operating under a system-wide franchise not later than 60 days following the administrative hearing required by this section.

N.J. Admin. Code § 14:18-15.7

Amended by R.2008 d.265, effective 9/2/2008.
See: 40 N.J.R. 1622(a), 40 N.J.R. 5052(a).
Rewrote (b)2; and in (d), inserted the last sentence.