Bill Text: NJ A2181 | 2018-2019 | Regular Session | Introduced
Bill Title: Amends "Cable Television Act" to update application processes; clarifies requirements under effective competition and of furnishing financial reports; eliminates BPU approval of certain combinations, mergers, consolidations, or acquisitions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-29 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A2181 Detail]
Download: New_Jersey-2018-A2181-Introduced.html
Sponsored by:
Assemblyman LOUIS D. GREENWALD
District 6 (Burlington and Camden)
SYNOPSIS
Amends "Cable Television Act" to update application processes; clarifies requirements under effective competition and of furnishing financial reports; eliminates BPU approval of certain combinations, mergers, consolidations, or acquisitions.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning cable television and amending various sections of P.L.1972, c.186.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 11 of P.L.1972, c.186 (C.48:5A-11) is amended to read as follows:
11. a. (1) The board, through the office, shall, consistent with federal law, prescribe just and reasonable rates, charges, and classifications for the services rendered by a CATV company.
(2) On an annual basis, a CATV company shall electronically file, using any reasonable means and format, a schedule of the CATV company's rates, terms, and conditions with the board and, as applicable, electronically file with the board any specific changes to the schedule of the CATV company's rates, terms, and conditions to the extent required by State or federal law.
b. The board shall, from time to time, cause the established rates and rate schedules of each CATV company for cable television reception service to be reviewed, and, if upon review, it shall appear to the board that, under federal law, the rates and rate schedules are or may be excessive, unreasonable, unjustly discriminatory, or unduly preferential, the board shall require the CATV company to establish to the board's satisfaction that the CATV company's rates are just, reasonable, and not excessive or unjustly preferential or discriminatory, and for that purpose, shall order the director to hold a hearing thereon. After a hearing upon notice and full opportunity to be heard afforded to the CATV company, the director may recommend amendment of the schedule of cable television reception service rates charged by that CATV company, and the amended schedule, if approved by the board, shall supersede and replace the schedule so amended.
c. Any hearing held pursuant to this section shall be open to the public, and notice thereof shall be published by the CATV company at least 10 days prior thereto in a newspaper or newspapers of general circulation in the certificated area wherein the rate schedule which is the subject of the hearing applies. Every municipality may intervene in any hearing held by the director pursuant to this section affecting the municipality or the public within the municipality.
d. A CATV company shall not derive from the operations of cable television reception service or cable communications systems any revenues other than the fees, charges, and rates provided for in subsection a. of this section and in subsection g. of section 28 of P.L.1972, c.186 (C.48:5A-28).
e. Whenever, pursuant to the provisions of P.L.1972, c.186 (C.48:5A-1 et seq.), the board or the director is required to determine whether any of the rates, charges, fees, and classifications of a CATV company are unjust, unreasonable, discriminatory, or unduly preferential, there shall be taken into consideration any fees which are charged for the use of a CATV system, or part thereof, as an advertising medium, or for services ancillary to that use, and from which the CATV system derives revenue, directly or indirectly, and the effect thereof upon, the CATV company's requirements for revenue from the fees, rates, charges, and classifications subject to the provisions of this section.
f. The provisions of this section shall not apply in any area where the Federal Communications Commission has found that there is effective competition as that term is used in 47 U.S.C. s.543.
g. (1) Notwithstanding the provisions of this section, or any other law, rule, regulation, or order to the contrary, and consistent with federal law, the director shall not require a CATV company to: (a) provide subscribers with a copy of the CATV company's schedule of prices, rates, charges, and services; (b) post a copy of the CATV company's schedule of prices, rates, charges, and services in its local business office; or (c) provide subscribers or applicants for cable television reception service with an explanation, in non-technical terms, of the CATV company's products and services offered, or the prices, rates, charges, and provisions applicable to the services furnished or available to those subscribers or applicants, if the CATV company provides currently available prices, rates, charges, and services in an electronic format on the CATV company's Internet website in a clear, concise, and readily accessible manner, using any reasonable means and format, that accurately conveys the content of the CATV company's notices, and that allows its subscribers and applicants to thereafter make informed decisions based on the information contained in the postings on the CATV company's Internet website.
(2) A CATV company that elects to provide notices on the CATV company's Internet website pursuant to paragraph (1) of this subsection, in lieu of providing notices or explanations to subscribers or applicants, or posting notices in its local business office, shall: (a) provide an explanation to each of the CATV company's subscribers on their bill periodically, though not less than quarterly, of how subscribers are to obtain in written and electronic form the CATV company's currently available prices, rates, charges, and services; and (b) provide the CATV company's currently available prices, rates, charges, and services, upon request, to each of the CATV company's subscribers and applicants who are unable to access the Internet or are otherwise unable to obtain information from the CATV company's website via the Internet. Nothing in this section shall be construed to modify or expand a CATV company's existing obligations to provide information to the board under any other section of Title 48 of the Revised Statutes, to the extent that those obligations do not conflict with this section.
(cf: P.L.2013, c.232, s.1)
2. Section 16 of P.L.1972, c.186 (C.48:5A-16) is amended to read as follows:
16. a. Any entity that seeks to provide cable service in this State after the effective date of P.L.2006, c.83 (C.48:5A-25.1 et al.) may apply for either individual certificates of approval or a system-wide franchise. The application for a certificate of approval or a system-wide franchise from the board shall be in writing.
b. (1) If the application is for an individual certificate of approval, it shall have attached thereto the municipal consents required under section 22 of P.L.1972, c.186 (C.48:5A-22), except that a CATV company which is authorized under section 25 of P.L.1972, c.186 (C.48:5A-25) to continue operations after the expiration of a municipal consent and pending municipal action upon application made for renewal or reissuance of such consent may in lieu of such municipal consent attach to its application a statement regarding its authorization to continue operations under the provisions of section 25 of P.L.1972, c.186 (C.48:5A-25); and shall contain such other information as the director may from time to time prescribe by duly promulgated rule, regulation or order. Each such application shall be accompanied by a filing fee of $200.
(2) Upon receipt of an application for a certificate of approval, the board shall review the application and shall, within 30 days of the receipt thereof, either issue the certificate of approval [applied for or order the director to schedule a hearing upon the application. No application shall be denied without a hearing thereon. In determining whether a certificate of approval should be issued, the board shall consider] if the applicant has complied with the requirements for a certificate of approval, considering only the requirements of sections 17 and 28 of P.L.1972, c.186 (C.48:5A-17 and C.48:5A-28) , or the board shall disapprove the application in writing citing the reasons for disapproval if the board determines that the application does not comply with the requirements for a certificate of approval. If the board disapproves the application, the board shall, with at least 14 days' notice to the applicant, schedule a meeting with the applicant to explain the reasons for the board's disapproval and to allow the applicant to question the board concerning the reasons for the board's disapproval. This meeting shall be held no later than 14 days following the expiration of the 30-day review period required by this subsection. The applicant shall have 30 days following the date of the meeting with the board, required by this paragraph, to file an appeal of the board's decision. The board shall thereafter schedule an administrative hearing no later than the thirtieth day following the date of the filing of the applicant's appeal in order to consider the applicant's appeal. The board shall issue a final decision in written form on the applicant's appeal no later than the sixtieth day following the administrative hearing, required by this subsection, on the applicant's appeal. If the board does not meet one or more of its requirements pursuant to this paragraph, the application shall be deemed approved.
c. (Deleted by amendment, P.L.2006, c.83)[.]
d. If the application is for a system-wide franchise, it shall be accompanied by a filing fee of $1,000, and shall specify the information required in section 28 of P.L.1972, c.186 (C.48:5A-28).
e. A hearing held pursuant to subsection b. of this section shall be held not later than the sixtieth day following the date of receipt of the application; it may be adjourned from time to time, but not to a date later than the sixtieth day following the date on which it commenced, except with the consent of the applicant. If such hearing is held, the director shall within 60 days after the conclusion thereof, transmit his findings of fact and recommendations to the board, which shall either issue or deny the certificate for which application was made, or may issue a certificate with such limitations and conditions as the public interest may require. The board shall transmit notice of its decision to the applicant.
f. Upon receipt of an application for a system-wide franchise submitted pursuant to subsection a. of this section, the board shall review the application and shall, within 45 days of the receipt thereof, schedule two public hearings to be held in different geographical areas of the State during the 45-day review period to consider the application. In determining whether a system-wide franchise should be issued, the board shall consider only the requirements of sections 17 and 28 of P.L.1972, c.186 (C.48:5A-17 and C.48:5A-28). On or before the expiration of the 45-day period, the board shall issue an order in writing approving the application if the applicant has complied with the requirements for a system-wide franchise, or the board shall disapprove the application in writing citing the reasons for disapproval if the board determines that the application for a system-wide franchise does not comply with the requirements for a system-wide franchise. If [, during the 45-day review period,] the board determines to disapprove the application, the board shall, with at least 14 days' notice to the applicant, schedule a meeting with the applicant to explain to the applicant the reasons for the board's disapproval and to allow the applicant to question the board concerning the reasons for the board's disapproval. [Such] This meeting shall be [scheduled] held no later than [two weeks] 14 days following the expiration of the 45-day review period required by this subsection. The applicant shall have 30 days following the date of the meeting with the board required by this subsection to file an appeal of the board's decision. The board shall thereafter schedule an administrative hearing not later than the thirtieth day following the date of the filing of the applicant's appeal in order to consider the applicant's appeal. The board shall issue a final decision in written form on the applicant's appeal not later than the sixtieth day following the administrative hearing, required by this subsection, on the applicant's appeal. If the board does not meet one or more of its requirements pursuant to this subsection, the application shall be deemed approved.
(cf: P.L.2006, c.83, s.12)
3. Section 19 of P.L.1972, c.186 (C.48:5A-19) is amended to read as follows:
19. a. A certificate of approval issued by the board shall be nontransferable except by consent of the board and shall specify the area to which it applies and the municipal consents upon which it is based. Transfers between affiliates owned or controlled by the same parent CATV company shall not require board approval, but CATV companies shall provide 30 days' notice to the board of these transfers. A certificate of approval issued by the board shall be valid for 15 years from the date of issuance or 20 years from the date of issuance if the board certifies that a CATV company has implemented an open video system in accordance with 47 U.S.C. s.573 within one year after receiving a municipal consent, or until the expiration, revocation, termination or renegotiation of any municipal consent upon which it is based, whichever is sooner. But amendment of the terms of a municipal consent by mutual consent and in conformity with the procedures specified in P.L.1972, c.186 (C.48:5A-1 et seq.) during the term for which it was issued shall not require the issuance of a new certificate of approval. A CATV company holding a certificate based upon a municipal consent with a provision for automatic renewal for a term not exceeding 10 years beyond its expiration date or 15 years beyond its expiration date if the board certifies that the CATV company has implemented an open video system in accordance with 47 U.S.C. s.573, shall be entitled to automatic reissuance of a certificate for such term, unless it shall forfeit such entitlement by violation of any terms of P.L.1972, c.186 (C.48:5A-1 et seq.), regulations issued pursuant thereto, or by the terms of the municipal consent.
b. A system-wide franchise issued by the board shall be nontransferable, except by consent of the board, and shall specify the area to which it applies. Transfers between affiliates owned or controlled by the same parent CATV company shall not require board approval, but CATV companies shall provide 30 days' notice to the board of these transfers. A system-wide franchise issued by the board shall be valid for seven years from the date of issuance. A system-wide franchise issued pursuant to P.L.1972, c.186 (C.48:5A-1 et seq.) shall not require: (1) a CATV company to operate outside of the areas in which the CATV company either has plant or equipment in use for the provision of any consumer video, cable or telecommunications service, or has proposed to place into use such plant or equipment for the provision of such services; or (2) a CATV company with municipal consents issued prior to the effective date of P.L.2006, c.83 (C.48:5A-25.1 et al.) to operate outside of the areas covered by such consents. Renewal of a system-wide franchise shall be valid for a period of seven years from the date of the renewal issuance, and the board shall establish rules governing the renewal of a system-wide franchise.
(cf: P.L.2006, c.83, s.15)
4. Section 36 of P.L.1972, c.186 (C.48:5A-36) is amended to read as follows:
36. a. Each CATV company shall provide safe, adequate and proper service, equipment and facilities for the operation of its CATV system.
b. No CATV company shall demand or receive a greater or less or different compensation for providing CATV service than the rates and charges specified in the tariff in effect at the time. The provisions of this subsection shall not apply in any area where the Federal Communications Commission has found that there is effective competition as that term is used in 47 U.S.C. s.543.
c. Every CATV company and other person and organization shall obey and comply with every rule and regulation and order adopted or issued by the director.
(cf: P.L.1972, c.186, s.36)
5. Section 38 of P.L.1972, c.186 (C.48:5A-38) is amended to read as follows:
38. a. Except as otherwise provided by subsection b. of this section, and where the CATV company is the parent company or an affiliate of the organization, no CATV company shall combine, merge, or consolidate with, or acquire control of, another organization without first obtaining the approval of the board, which shall be granted only after an investigation and finding that such proposed combination, merger, consolidation, or acquisition is in the public interest. A CATV company shall provide the board 30-days' notice of any combination, merger, consolidation, or acquisition with a parent, subsidiary, or affiliate made pursuant to this subsection.
b. Nothing herein shall require the review or approval by the board of any parent or affiliate corporation of a company that provides cable television service over a cable television system if such parent or affiliate corporation does not itself provide cable television service in this State and seeks to combine, merge, or consolidate with, or to acquire control of, another corporation or other organization that:
(1) does not directly provide cable television service in this State; and
(2) does not directly or through one or more affiliates, own a controlling interest in another corporation or other organization that provides cable television service in this State.
(cf: P.L.2008, c.87, s.5)
6. Section 40 of P.L.1972, c.186 (C.48:5A-40) is amended to read as follows:
40. a. Except as otherwise provided by subsections b. [and] , c. , and d. of this section, no CATV company shall, without the approval of the board, sell, lease, mortgage or otherwise dispose of or encumber its property, franchises, privileges or rights, or any part thereof; or merge or consolidate its property, franchises, privileges or rights, or any part thereof, with that of any other CATV company. Every sale, mortgage, lease, disposition, encumbrance, merger or consolidation made in violation of this section shall be void.
b. Nothing herein shall prevent the sale, lease or other disposition by any CATV company of any of its property in the ordinary course of business, nor require the approval of the board to any grant, conveyance or release or any property or interest therein heretofore made or hereafter to be made by any CATV company to the United States, the State or any county or municipality or any agency, authority or subdivision thereof, for public use. The approval of the board shall not be required to validate the title of the United States, the State or any county or municipality or any agency, authority or subdivision thereof, to any lands or interest therein heretofore condemned or hereafter to be condemned by the United States, the State or any county or municipality or any agency, authority or subdivision thereof for public use.
c. Nothing herein shall require the review or approval by the board of any parent or affiliate corporation of a company that provides cable television service over a cable television system if such parent or affiliate corporation does not itself provide cable television service in this State and seeks to sell, lease, mortgage, or otherwise to dispose of or to permit the encumbrance of any of its property, franchises, privileges, or rights, or any part thereof; or to merge or consolidate its property, franchises, privileges, or rights, or any part thereof, with that or those of another corporation or other organization which:
(1) does not directly provide cable television service in this State; and
(2) does not directly or through one or more affiliates own a controlling interest in another corporation or other organization which provides cable television service in this State.
d. A CATV company shall provide notice to the board of the transfer of property or franchises to an affiliated CATV company owned or controlled by the same parent CATV company.
(cf: P.L.2008, c.87, s.6)
7. Section 43 of P.L.1972, c.186 (C.48:5A-43) is amended to read as follows:
43. No CATV company incorporated under the laws of this State shall sell, nor shall any such CATV company permit to be made upon its books any transfer of any share or shares of its capital stock to any other CATV corporation, unless authorized to do so by the board. Nor shall any CATV company incorporated under the laws of this State sell any share or shares of its capital stock or make or permit to be made upon its books any transfer thereof to any corporation, domestic or foreign, or any person, the result of which sale or transfer in itself or in connection with other previous sales or transfers shall be to vest in such corporation or person a majority in interest of the outstanding capital stock of such CATV company, unless authorized to do so by the board. The transfer, elimination, or consolidation of affiliates owned or controlled by the same parent CATV company shall not require board approval, but CATV companies shall provide 30 days' notice to the board of these transactions.
(cf: P.L.1972, c.186, s.43)
8. Section 44 of P.L.1972, c.186 (C.48:5A-44) is amended to read as follows:
44. The board may, upon notice, by order in writing require every CATV company:
a. To keep its books, records and accounts so as to afford an intelligent understanding of the conduct of its business, and to that end require that every CATV company adopt a uniform system of accounting. Such system shall conform, insofar as in the judgment of the board is practicable, to any system adopted or approved by any Federal regulatory agency having jurisdiction.
b. To carry, whenever in the judgment of the board it may be reasonably necessary for the protection of the stockholders, bondholders or creditors, a proper and adequate depreciation account in accordance with such rules and regulations as the board may prescribe. The board shall from time to time ascertain and determine, and by order in writing after hearing, fix proper and adequate rates of depreciation of the property of each CATV company in accordance with such regulations or classifications. Such rates shall be sufficient to provide the amounts required, over and above the expense of maintenance, to keep the property in a state of efficiency corresponding to the progress of the industry. Each CATV company shall conform its depreciation accounts to the rate so ascertained. Amounts so provided shall not be expended otherwise than for depreciation, improvements, new construction, replacements, extensions or additions to the property of the CATV company or for the retirement of debt incurred in connection therewith. No CATV company shall, without the approval of the board in writing first had and obtained, invest any part of its depreciation fund in obligations or securities of any kind, except obligations and securities that are legal investments for savings banks under the laws of this State, and except obligations and securities of the underlying or subsidiary CATV company corporations of this State, of such CATV company. Every CATV company shall at all times keep within this State all obligations and securities in which its depreciation fund is invested and reinvested. The board may after hearing upon notice order any CATV company to dispose of any obligations or securities in which its depreciation fund is now or may hereafter be invested, except obligations and securities that are legal investments for savings banks under the laws of this State, and except obligations and securities of underlying or subsidiary CATV company corporations of this State, of such CATV company. Every CATV company shall deposit, and at all times keep deposited in its own name and to its own credit and in a banking or trust company located in this State, the balance of its depreciation fund which is not expended or invested in accordance with this subsection.
c. To furnish [periodically] every five years a detailed report of the fifth year's finances and operations of the CATV company in such form and containing such matters as the board may from time to time prescribe.
d. To give such notice to the office as the board may by rule require of any and all accidents which may occur within the State upon the property of any CATV company directly or indirectly arising from or connected with its maintenance or operations, and the board may investigate any such accident and make such order or recommendation with respect thereto as in his judgment may be just and reasonable.
(cf: P.L.1972, c.186, s.44)
9. This act shall take effect immediately.
STATEMENT
This bill amends the "Cable Television Act" to update the requirements of the certificate of approval application process between a cable television (CATV) company and the Board of Public Utilities (board). The amendments specify that the certificate of approval is to be approved by the board if the applicant has complied with the requirements for a certificate of approval under law or the board is to disapprove the application in writing citing the reasons for disapproval if the board determines that the application does not comply with the requirements for a certificate of approval. If the board disapproves the application, the board is to, with at least 14 days' notice to the applicant, schedule a meeting with the applicant to explain the reasons for the board's disapproval and to allow the applicant to question the board concerning the reasons for the board's disapproval. This meeting is to be held no later than 14 days following the expiration of the 30-day review period. The applicant is to have 30 days following the date of the meeting with the board to file an appeal of the board's decision. The board is to then schedule an administrative hearing not later than the thirtieth day following the date of the filing of the applicant's appeal in order to consider the applicant's appeal. The board is to issue a final decision in written form on the applicant's appeal no later than the sixtieth day following the administrative hearing on the applicant's appeal. If certain requirements in the certificate of approval process are not met by the board, the application is to be deemed approved.
This bill also amends the system-wide franchise application process by requiring the board, in the event the board disapproves an application, to provide an applicant at least 14 days' notice of the meeting to review the disapproval. If certain requirements in the system-wide franchise approval process are not met by the board, the application is to be deemed approved.
This bill amends existing law to allow combinations, mergers, consolidations, or acquisitions between a CATV company and a CATV company affiliate, or between CATV company affiliates, without board approval. A CATV company is to provide the board 30-days' notice of any combination, merger, consolidation, or acquisition.
Lastly, these amendments specify that in an area with effective competition, as defined in federal law, a CATV company will not be restrained by any tariffs in effect. The amendments also require CATV companies to furnish to the board every five years a detailed report of the fifth year's finances and operations, rather than periodically.
