LCO No. 1642 1 of 8 General Assembly Raised Bill No. 176 February Session, 2020 LCO No. 1642 Referred to Committee on ENERGY AND TECHNOLOGY Introduced by: (ET) AN ACT CONCERNING ES TABLISHMENT OF A FEE PAID BY MULTICHANNEL VIDEO P ROGRAMMING DISTRIBUTORS TO COMPANIES OR ORGANIZ ATIONS RESPONSIBLE F OR COMMUNITY ACCESS PROGRAMMING. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 16-331a of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective from passage): 2 (a) As used in this section: [,] 3 (1) ["multichannel video programming distributor"] "Multichannel 4 video programming distributor" means a multichannel video 5 programming distributor, as defined in 47 CFR 76.1300, as from time to 6 time amended, and includes an owner of an open video system, as 7 defined in 47 CFR 76.1500, as from time to time amended; 8 (2) "Subscriber" means any residential or commercial customer who 9 purchases one or more of the following services (A) video streaming, (B) 10 Internet access, or (C) cable television; and 11 (3) "Video streaming" means the delivery of video content sent in 12 Raised Bill No. 176 LCO No. 1642 2 of 8 compressed form over the Internet and displayed by the viewer in real 13 time for a fee on a subscription basis. 14 (b) Each company or organization selected pursuant to subsection (c) 15 of this section, in consultation with the franchise's advisory council, 16 shall provide facilities, equipment, and technical and managerial 17 support to enable the production of meaningful community access 18 programming within its franchise area. Each company shall include all 19 its community access channels in its basic service package. Each 20 company or organization shall annually review its rules, regulations, 21 policies and procedures governing the provision of community access 22 programming. Such review shall include a period for public comment, 23 a public meeting and consultation with the franchise's advisory council. 24 (c) If a community-based nonprofit organization in a franchise area 25 desires to assume responsibility for community access operations, it 26 shall, upon timely petition to the authority, be granted intervenor status 27 in a franchise proceeding held pursuant to this section. The authority 28 shall assign this responsibility to the most qualified community-based 29 nonprofit organization or the company based on the following criteria: 30 (1) The recommendations of the advisory council and of the 31 municipalities in the franchise area; (2) a review of the organization's or 32 the company's performance in providing community access 33 programming; (3) the operating plan submitted by the organization and 34 the company for providing community access programming; (4) the 35 experience in community access programming of the organization; (5) 36 the organization's and the company's proposed budget, including 37 expenses for salaries, consultants, attorneys, and other professionals; (6) 38 the quality and quantity of the programming to be created, promoted or 39 facilitated by the organization or the company; (7) a review of the 40 organization's procedures to ensure compliance with federal and state 41 law, including the regulations of Connecticut state agencies; and (8) any 42 other criteria determined to be relevant by the authority. If the authority 43 selects an organization to provide community access operations, the 44 company shall provide financial and technical support to the 45 organization in an amount to be determined by the authority. On 46 Raised Bill No. 176 LCO No. 1642 3 of 8 petition of the Office of Consumer Counsel or the franchise's advisory 47 council or on its own motion, the authority shall hold a hearing, with 48 notice, on the ability of the organization to continue its responsibility for 49 community access operations. In its decision following such a hearing, 50 the authority may reassign the responsibility for community access 51 operations to another organization or the company in accordance with 52 the provisions of this subsection. 53 (d) Each company or organization shall conduct outreach programs 54 and promote its community access services. Such outreach and 55 promotion may include, but not be limited to (1) broadcasting cross-56 channel video announcements, (2) distributing information throughout 57 the franchise area and not solely to its subscribers, (3) including 58 community access information in its regular marketing publications, (4) 59 broadcasting character-generated text messages or video 60 announcements on barker or access channels, (5) making speaking 61 engagements, (6) holding open receptions at its community access 62 facilities, and (7) in multitown franchise areas, encouraging the 63 formation and development of local community access studios operated 64 by volunteers or nonprofit operating groups. 65 (e) Each company or organization shall adopt for its community 66 access programming a scheduling policy which encourages 67 programming diversity. Said scheduling policy shall include (1) limiting 68 a program, except instructional access and governmental access 69 programming, to thirteen weeks in any one time slot when a producer 70 of another program requests the same time slot, (2) procedures for 71 resolving program scheduling conflicts, and (3) other measures which 72 the company or organization deems appropriate. A company or 73 organization may consider the availability of a substantially similar time 74 slot when making community access programming scheduling 75 decisions. 76 (f) In the case of any initial, transfer or renewal franchise proceeding 77 held on or after October 1, 1990, the authority may, on its own initiative, 78 in the first six months of the second, fifth, eighth and eleventh years of 79 Raised Bill No. 176 LCO No. 1642 4 of 8 the franchise term, review and evaluate the company's or the 80 organization's provision of community access programming. The 81 authority shall conduct such review or evaluation in any such 82 proceeding held on or after October 1, 1990, if the Consumer Counsel or 83 any interested party petitions the authority for such a review during the 84 first six months of the review year. During any such review year, if an 85 organization desires to provide community access operations it shall 86 petition the authority and the authority shall follow the procedures and 87 standards described in subsection (c) of this section in determining 88 whether to assign to the organization the responsibility to provide such 89 operations. No community access programming produced using the 90 facilities or staff of an organization or company providing community 91 access operations shall be utilized for commercial purposes without 92 express prior written agreement between the producer of such 93 programming and the organization or company providing community 94 access operations the facilities or staff of which were used in the 95 production of the programming. Such an agreement may include, 96 without limitation, a provision regarding the producer and the 97 company or organization sharing any profit realized from such 98 programming so utilized. An organization providing community access 99 operations shall consult with the company in the franchise area prior to 100 making such an agreement. 101 (g) No organization or company providing community ac cess 102 operations shall exercise editorial control over such programming, 103 except as to programming that is obscene and except as otherwise 104 allowed by applicable state and federal law. This subsection shall not be 105 construed to prohibit such organization or company from limiting the 106 hours during which adult programs may be aired. Such organization or 107 company may consult with the advisory council in determining what 108 constitutes an adult program for purposes of this subsection. 109 (h) Upon the request of the Office of Consumer Counsel or the 110 franchise's advisory council, and for good cause shown the authority 111 shall require an organization responsible for community access 112 operations to have an independent audit conducted at the expense of 113 Raised Bill No. 176 LCO No. 1642 5 of 8 the organization. For purposes of this subsection, "good cause" may 114 include, but not be limited to, the failure or refusal of such organization 115 (1) to account for and reimburse the community access programming 116 budget for its commercial use of community access programming 117 facilities, equipment or staff, or for the allocation of such facilities, 118 equipment or staff to functions not directly related to the community 119 access operations of the franchise, (2) to carry over unexpended 120 community access programming budget accounts at the end of each 121 fiscal year, (3) to properly maintain community access programming 122 facilities or equipment in good repair, or (4) to plan for the replacement 123 of community access programming equipment made obsolete by 124 technological advances. In response to any such request, the authority 125 shall state, in writing, the reasons for its determination. 126 (i) Each company and nonprofit organization providing community 127 access operations shall report annually to the authority on or before 128 February fifteenth. The authority shall adopt regulations, in accordance 129 with the provisions of chapter 54, to specify the information which shall 130 be required in such report. Such information shall be necessary for the 131 authority to carry out the provisions of this section. 132 (j) The advisory council shall review all community access 133 programming of a company or organization within the franchise area 134 which programming has been the subject of a complaint. 135 (k) The authority shall establish the amount that the company or 136 organization responsible for community access operations shall receive 137 for such operations from subscribers and from multichannel video 138 programming distributors. The amount shall be five dollars per 139 subscriber per year, adjusted annually by a percentage reflecting the 140 increase or decrease of the consumer price index for the preceding 141 calendar year, provided the authority may increase or decrease the 142 amount by not more than forty per cent of said amount for the 143 subscribers and all multichannel video programming distributors 144 within a franchise area after considering (1) the criteria set forth in 145 subsection (c) of this section, (2) the level of public interest in community 146 Raised Bill No. 176 LCO No. 1642 6 of 8 access operations in the franchise area, (3) the level of community need 147 for educational access programming, (4) the level and breadth of 148 participation in community access operations, (5) the adequacy of 149 existing facilities, equipment and training programs to meet the current 150 and future needs of the franchise area, and (6) any other factors 151 determined to be relevant by the authority. Prior to increasing or 152 decreasing said amount, the authority shall give notice and opportunity 153 for a hearing to the company or multichannel video programming 154 distributor and, where applicable, the organization responsible for 155 community access programming. The amount shall be assessed once 156 each year for each end user premises connected to an open video 157 system, irrespective of the number of multichannel video programming 158 distributors providing programming over the open video system. When 159 the authority issues, transfers or renews a certificate of public 160 convenience and necessity to operate a community antenna television 161 system, the authority shall include in the franchise agreement the 162 amount that the company or organization responsible for community 163 access operations shall receive for such operations from subscribers. The 164 authority shall conduct a proceeding to establish the amount that the 165 company or organization responsible for community access operations 166 shall receive for such operations from multichannel video programming 167 distributors and the method of payment of said amount. The authority 168 shall adopt regulations in accordance with chapter 54 to implement the 169 provisions of this subsection. For any subscriber of multiple services, as 170 described in subdivision (2) of subsection (a) of this section, the 171 company or organization responsible for community access operations 172 shall receive only one payment from the subscriber pursuant to this 173 subsection. 174 (l) An organization assigned responsibility for community access 175 operations which organization ceases to provide such operations shall 176 transfer its assets to the successor organization assigned such 177 responsibility or, if no successor organization is assigned such 178 responsibility, to another nonprofit organization within the franchise 179 area selected by the authority. 180 Raised Bill No. 176 LCO No. 1642 7 of 8 (m) On petition or its own motion, the authority shall determine 181 whether a franchise area is subject to effective competition, as defined 182 in 47 USC 543, as from time to time amended. Upon a determination 183 that a franchise area is subject to effective competition, the provisions of 184 this section shall apply to multichannel video programming distributors 185 operating in the franchise area, provided (1) where multichannel video 186 programming distributors provide programming over a single open 187 video system, the provisions of this section shall apply jointly and not 188 separately to all such distributors providing programming on the same 189 open video system, and (2) the provisions of subsection (k) of this 190 section shall apply to multichannel video programming distributors 191 whether or not such distributors operate in a franchise area subject to 192 such effective competition. 193 (n) No community antenna television company or nonprofit 194 organization providing community access operations shall refuse to 195 engage in good faith negotiation regarding interconnection of such 196 operations with other community antenna television companies serving 197 the same area. No school or facility owned or leased by a municipal 198 government that possesses community access operations equipment 199 shall unreasonably deny interconnection with or the use of such 200 equipment to any such company or nonprofit organization. At the 201 request of such a company or nonprofit organization providing 202 community access operations, the authority may facilitate the 203 negotiation between such company or organization and any other 204 community antenna television company regarding interconnection of 205 community access operations. 206 (o) Each company or organization shall consult with its advisory 207 council in the formation of a community access programming policy, 208 the adoption of the community access programming budget and the 209 allocation of capital equipment and community access programming 210 resources. 211 Raised Bill No. 176 LCO No. 1642 8 of 8 This act shall take effect as follows and shall amend the following sections: Section 1 from passage 16-331a Statement of Purpose: To (1) define "subscriber" and "video streaming", (2) require the Public Utilities Regulatory Authority to establish a fee paid by subscribers of video streaming, Internet access and cable television, and (3) limit the applicable fee to one household per purchased service. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]