(a) Franchises.—
(1) No cable company shall build or operate a cable system in Puerto Rico, fully or partially, without having previously obtained a franchise under this section for such construction or operation.
(2) The Board shall be empowered to grant nonexclusive franchises to one or more cable companies to provide said services if it determines that granting such franchises, in one or all service areas and to one or more cable companies, is in the best public interest. A franchise may be granted for a specific period of time, which shall not exceed eighteen (18) years. The Board shall specify in all its franchises the conditions, limitations, requirements and service areas determined as necessary to promote the purposes of this chapter. All franchises granted up to the present by the Public Service Commission shall remain in effect with regard to their rights and responsibilities, but the Board shall assume jurisdiction on the terms and conditions of said franchises.
(3) Without it being understood as a limitation, the Board shall also specify in the franchises those reasonable conditions and requirements in connection with expansion and updating of the network, quality of service, extensions and improvements of services in areas with no service or poorly served, and shall evaluate the technical, legal, financial and moral credentials of the officials and directors of the cable company being granted a franchise. The Board may renew or extend said franchises for a specific term that shall not exceed ten (10) years, if it determines that such renovations or extensions help in promoting the purposes of this chapter.
(4) Subject to the provisions of applicable federal statutes, every cable company operator shall program, reserve and offer access to noncommercial channels for public and educational use as part of their basic services, so that every subscriber shall have access to said channels. The Board shall not grant any authorization for the operation of cable services, unless the above obligation has been complied with to the satisfaction of the Board; Provided, That the Board shall require such compliance in the corresponding franchises.
(5) The Board may modify, suspend or cancel a franchise, for just cause, if it determines that a cable company has not complied substantially with the requirements of such franchise, or for having repeatedly violated the provisions of this chapter or the regulations of the Board, after due notice and hearing.
(6) The Board shall promulgate the necessary regulations to enforce the provisions of this section.
(7) The provisions of this section, as well as all regulations promulgated by the Board with regard to cable services shall be consistent with the Federal Cable Television Act and Title III of the Federal Telecommunications Act of 1996.
(b) Transfer of authority.— Upon approval of this act, all authority, powers and duties related to cable systems under the jurisdiction of the Public Service Commission, conferred by laws or regulations, shall be transferred to the Board without any limitation whatsoever.
(c) Franchise charges.— Every cable company shall continue to pay the same charges, liens or taxes on account of franchise fees that it has paid up to the moment this act is approved; Provided, That said cable companies shall also pay annual regulatory fees, under the provisions of § 267j of this title only to the extent and in proportion to the telecommunications services rendered in Puerto Rico.
History —Sept. 12, 1996, No. 213, § III-9, renumbered as § III-10 on Sept. 2, 1999, No. 302, § 2.