as introduced - 83rd Legislature, 2003 1st Special Session (2003 - 2003) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to telecommunications; modifying cable 1.3 communications laws; making technical and clarifying 1.4 revisions; amending Minnesota Statutes 2002, sections 1.5 238.02, subdivision 3; 238.03; 238.08, subdivisions 3, 1.6 4; 238.081; 238.083, subdivisions 2, 4; 238.084, 1.7 subdivision 1; 238.11, subdivision 2; 238.22, 1.8 subdivision 13; 238.23; 238.24, subdivisions 3, 4, 6, 1.9 9, 10; 238.242, subdivisions 1, 3; 238.25, 1.10 subdivisions 5, 10; 238.35, subdivisions 1, 4; 238.36, 1.11 subdivision 2; 238.39; 238.40; 238.43, subdivision 1; 1.12 repealing Minnesota Statutes 2002, sections 238.01; 1.13 238.02, subdivisions 2, 17, 18, 19, 25; 238.082; 1.14 238.083, subdivisions 3, 5; 238.084, subdivisions 2, 1.15 3, 5; 238.12, subdivision 1a; 238.15; 238.35, 1.16 subdivisions 2, 3; 238.36, subdivision 1. 1.17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.18 Section 1. Minnesota Statutes 2002, section 238.02, 1.19 subdivision 3, is amended to read: 1.20 Subd. 3. [CABLE COMMUNICATIONS SYSTEM.] (a) "Cable 1.21 communications system" means a system
which operatesthat 1.22 provides the service of receiving and amplifying (1) programs 1.23 broadcast by one or more television or radio stations and (2) 1.24 other programs originated by a person operating a cable 1.25 communications companysystem or by another party, and1.26 distributingperson. The system distributes those programs by 1.27 wire, cable, microwave, or other means, regardless whether the 1.28 means are owned or leased, to persons who subscribe to the 1.29 service. 1.30 (b) This definition does not include: 1.31 (a)(1) a system whichthat serves fewer than 50 2.1 subscribers or a system whichthat serves more than 50 but fewer 2.2 than 1,000 subscribers if the governing bodies of all political 2.3 subdivisions served by the system, vote, by resolution, to 2.4 remove the system from the provisions of this chapter .; provided 2.5 that: 2.6 (i) no part of a system, nor any area within the 2.7 municipality served by the system, may be removed from the 2.8 provisions of this chapter if more than 1,000 subscribers are 2.9 served by the system .; and 2.10 (ii) any system which servesserving more than 50 but fewer 2.11 than 1,000 subscribers that has been removed from the provisions 2.12 of this chapter shall be returnedbecomes subject to the 2.13 provisions of this chapter if the governing bodies of 50 percent 2.14 or more of the political subdivisions served by the system vote, 2.15 by resolution, in favor of the return; 2.16 (b)(2) a master antenna television system; 2.17 (c)(3) a specialized closed-circuit system whichthat does 2.18 not use the public rights-of-way for the construction of its 2.19 physical plant; and 2.20 (d)(4) a translator system whichthat receives and 2.21 rebroadcasts over-the-air signals. 2.22 Sec. 2. Minnesota Statutes 2002, section 238.03, is 2.23 amended to read: 2.24 238.03 [APPLICABILITY.] 2.25 This chapter applies to every cable communications system 2.26 and every cable communications company, as defined in section 2.27 238.02, operating within the state, including a cable 2.28 communications company which constructs, operates and maintains2.29 a cable communicationssystem comprised in whole or in part 2.30 through theof facilities of a person franchised to offer common2.31 or contract carrier servicessubject to regulation under chapter 2.32 237. Persons possessing franchises for any of the purposes of 2.33 this chapter are subject to this chapter although no property 2.34 has been acquired, business transacted, or franchises exercised. 2.35 Sec. 3. Minnesota Statutes 2002, section 238.08, 2.36 subdivision 3, is amended to read: 3.1 Subd. 3. [MUNICIPAL OPERATION.] Nothing in this chapter3.2 shall be construed to limitAny municipality from the right3.3 tomay construct, purchase, and operate cable communications 3.4 systems ,or , tooperate facilities and channels for community 3.5 television, including, but not limited to, public, educational, 3.6 and governmental access and local origination programming. Any 3.7 municipal system, including the operation of community 3.8 television by a municipality, shall beis subject to this 3.9 chapter to the same extent as would any nonpublic cable 3.10 communications system. 3.11 Sec. 4. Minnesota Statutes 2002, section 238.08, 3.12 subdivision 4, is amended to read: 3.13 Subd. 4. [FEE, TAX, OR CHARGE.] Nothing in this chapter3.14 shall be construed to limit the power ofAny municipality tomay 3.15 impose upon any person operating a cable communications company3.16 system a fee, tax, or charge. 3.17 Sec. 5. Minnesota Statutes 2002, section 238.081, is 3.18 amended to read: 3.19 238.081 [FRANCHISE PROCEDURE.] 3.20 Subdivision 1. [PUBLICATION OF NOTICE.] The franchising 3.21 authority shall have published once each week for two successive 3.22 weeks in a newspaper of general circulation in each municipality 3.23 within the cable service territory, a notice of intent 3.24 to consider an application for an initial franchise , requesting3.25 applications for the franchise. 3.26 Subd. 2. [REQUIRED INFORMATION IN NOTICE.] The notice must 3.27 include at least the following information: 3.28 (1) the name of the municipality making the request; 3.29 (2) the closing date for submission of applications; 3.30 (3) a statement of the application fee, if any, and the 3.31 method for its submission; 3.32 (4) a statement by the franchising authority of the desired3.33 system design andservices to be offered; 3.34 (5) a statement by the franchising authority of criteria 3.35 and priorities against which the applicants for the franchise 3.36 must be evaluated; 4.1 (6) a statement that applications for the franchise must 4.2 contain at least the information required by subdivision 4; 4.3 (7) the date, time, and place for the public hearing, to 4.4 hear proposals from franchise applicants; and 4.5 (8) the name, address, and telephone number of the 4.6 individuals who may be contacted for further information. 4.7 Subd. 3. [OTHER RECIPIENTS OF NOTICE.] In addition to the 4.8 published notice, the franchising authority shall mail copies of 4.9 the notice of intent to franchise to any person it has 4.10 identified as being a potential candidate for the franchise. 4.11 Subd. 4. [CONTENTS OF FRANCHISING PROPOSAL.] (a) The 4.12 franchising authority shall require that proposals for a cable 4.13 communications franchise be notarized and contain, but not 4.14 necessarily be limited to, the following information: 4.15 (1) plans for channel capacity, including both the total 4.16 number of channels capable of being energized in the system and 4.17 the number of channels to be energized immediately; 4.18 (2) a statement of the television and radio broadcast 4.19 signals for which permission to carry will be requested from the 4.20 Federal Communications Commission; 4.21 (3) a description of the proposed system design and planned 4.22 operation, including at least the following items: 4.23 (i) the general area for location of antennae and the head 4.24 end, if known; 4.25 (ii) the schedule for activating two-way capacity; 4.26 (iii) the type of automated services to be provided; 4.27 (iv) the number of channels and services to be made 4.28 available for access cable broadcasting; and 4.29 (v) a schedule of charges for facilities and staff 4.30 assistance for access cable broadcasting; 4.31 (4) the terms and conditions under which particular service 4.32 is to be provided to governmental and educational entities; 4.33 (5) a schedule of proposed rates in relation to the 4.34 services to be provided, and a proposed policy regarding unusual 4.35 or difficult connection of services; 4.36 (6) a time schedule for construction of the entire system 5.1 with the time sequence for wiring the various parts of the area 5.2 requested to be served in the request for proposals; 5.3 (7) a statement indicating the applicant's qualifications 5.4 and experience in the cable communications field, if any; 5.5 (8) an identification of the municipalities in which the 5.6 applicant either owns or operates a cable communications system, 5.7 directly or indirectly, or has outstanding franchises for which 5.8 no system has been built; 5.9 (9) plans for financing the proposed system, which must 5.10 indicate every significant anticipated source of capital and 5.11 significant limitations or conditions with respect to the 5.12 availability of the indicated sources of capital; 5.13 (10) a statement of ownership detailing the corporate 5.14 organization of the applicant, if any, including the names and 5.15 addresses of officers and directors and the number of shares 5.16 held by each officer or director, and intracompany relationship 5.17 including a parent, subsidiary, or affiliated company; and 5.18 (11) a notation and explanation of omissions or other 5.19 variations with respect to the requirements of the proposal. 5.20 (b) Substantive amendments may not be made in a proposal5.21 after a proposal has been submitted to the franchising authority5.22 and before award of a franchiseUpon submission of a proposal, 5.23 the municipality and applicant may negotiate franchise terms. 5.24 Subd. 5. [TIME LIMIT TO SUBMIT APPLICATION.] The 5.25 franchising authority shall allow at least 20 days from the 5.26 first date of published notice to the closing date for 5.27 submitting applications. 5.28 Subd. 6. [PUBLIC HEARING ON FRANCHISE.] A public hearing 5.29 before the franchising authority affording reasonable notice and 5.30 a reasonable opportunity to be heard with respect to all 5.31 applications for the franchise must be completed at least seven 5.32 days before the introduction of theadoption of a franchise 5.33 ordinance in the proceedings of the franchising authority. 5.34 Subd. 7. [AWARD OF FRANCHISE.] Franchises may be 5.35 awarded onlyby ordinance or other official action by the 5.36 franchising authority. 6.1 Subd. 8. [COSTS OF AWARDING FRANCHISE.] Nothing in this6.2 section prohibitsA franchising authority from recoveringmay 6.3 recover from a successfulan applicant the entire reasonable and 6.4 necessary costs of the entire process of awarding theprocessing 6.5 a cable communications franchise. 6.6 Subd. 9. [FRANCHISING NONPROFIT OR MUNICIPALLY OWNED 6.7 SYSTEM.] Nothing contained in this section prohibits a 6.8 franchising authority from franchising a nonprofit or 6.9 municipally owned system. The municipality or nonprofit entity 6.10 is considered an applicant for purposes of this section. 6.11 Subd. 10. [FRANCHISE; JOINT POWERS.] In the cases of 6.12 municipalities acting in concert, the municipalities may 6.13 delegate to another entity suchany duties, responsibilities, 6.14 privileges, or activities described in this section, if suchthe 6.15 delegation is proper according to state and local law. 6.16 Sec. 6. Minnesota Statutes 2002, section 238.083, 6.17 subdivision 2, is amended to read: 6.18 Subd. 2. [WRITTEN APPROVAL OF FRANCHISING AUTHORITY.] A 6.19 sale or transfer of a franchise, including a sale or transfer by 6.20 means of a fundamental corporate change, requires the written 6.21 approval of the franchising authority. The parties to the sale 6.22 or transfer of a franchise shall make a written request to the 6.23 franchising authority for its approval of the sale or transfer. 6.24 The franchising authority shall reply in writing within 30 days6.25 of the request and shall indicate its approval of the request or6.26 its determination that a public hearing is necessary if it6.27 determines that a sale or transfer of a franchise may adversely6.28 affect the company's subscribers. The franchising authority6.29 shall conduct a public hearing on the request within 30 days of6.30 that determination.6.31 Sec. 7. Minnesota Statutes 2002, section 238.083, 6.32 subdivision 4, is amended to read: 6.33 Subd. 4. [APPROVAL OR DENIAL OF TRANSFER REQUEST.] Within6.34 30 days after the public hearing,The franchising authority 6.35 shall approve or deny in writing the sale or transfer request. 6.36 The approval must not be unreasonably withheld. 7.1 Sec. 8. Minnesota Statutes 2002, section 238.084, 7.2 subdivision 1, is amended to read: 7.3 Subdivision 1. [ALL SYSTEMS.] The following requirements7.4 franchise provisions are required and apply to all classes A, B,7.5 and Ccable communications systems unless provided otherwise: 7.6 (a) a provision thatThe franchise compliesshall comply 7.7 with the Minnesota franchise standards contained in this 7.8 section ;. 7.9 (b) a provision requiring the franchisee and the7.10 franchising authority to conform to state laws and rules7.11 regarding cable communications not later than one year after7.12 they become effective, unless otherwise stated, and to conform7.13 to federal laws and regulations regarding cable as they become7.14 effective;7.15 (c) a provision limitingThe initial and renewal franchise 7.16 term must be limited to not more than 15 years each ;. 7.17 (d) a provision specifying that(c) The franchise ismust 7.18 be nonexclusive ;. 7.19 (e)(d) A provision prohibitingsale or transfer of the 7.20 franchise or sale or transfer of stock so as to create a new 7.21 controlling interest under section 238.083 is prohibited, except 7.22 at the approval of the franchising authority, which approval 7.23 must not be unreasonably withheld, and conditioned that the sale 7.24 or transfer is completed pursuant to section 238.083 ;. 7.25 (f) a provision granting(e) The franchising authority 7.26 collecting a franchise fee is granted the authority to audit the 7.27 franchisee's accounting and financial records upon reasonable 7.28 notice , and requiring that. 7.29 (f) The franchisee shall file with the franchising 7.30 authority annually reports of gross subscriber revenues and 7.31 other information as the franchising authority deems 7.32 appropriate ;. 7.33 (g) Provisions specifyingrelating to subscribers must 7.34 specify: 7.35 (1) current subscriber charges or that the current charges 7.36 are available for public inspection in the municipality; 8.1 (2) the length and terms of residential subscriber 8.2 contracts, if they exist, or that the current length and terms 8.3 of residential subscriber contracts are available for public 8.4 inspection in the municipality; and 8.5 (3) the procedure by which subscriber charges are 8.6 established, unless such a provision is contrary to state or 8.7 federal law ;. 8.8 (h) a provision indicating by titleThe office or officer 8.9 of the franchising authority that is responsible for the 8.10 continuing administration of the franchise ;must be indicated by 8.11 title. 8.12 (i) a provision requiringThe franchisee toshall indemnify 8.13 and hold harmless the franchising authority during the term of 8.14 the franchise, and tomaintain throughout the term of the 8.15 franchise ,liability insurance in an amount as the franchising 8.16 authority may require insuring both the franchising authority 8.17 and the franchisee with regard to damages and penalties which8.18 that they may legally be required to pay as a result of the 8.19 exercise of the franchise ;. 8.20 (j) a provision thatAt the time the franchise becomes 8.21 effective and thereafter until the franchisee has liquidated all 8.22 of its obligation with the franchising authority, the franchisee 8.23 shall furnish a performance bond, certificate of deposit, or 8.24 other type of instrument approved by the franchising authority 8.25 in an amount as the franchising authority deems to be adequate 8.26 compensation for damages resulting from the franchisee's 8.27 nonperformance. The franchising authority may, from year to 8.28 year and in its sole discretion, reduce the amount of the 8.29 performance bond or instrument ;. 8.30 (k) a provision that nothing contained inThe franchise 8.31 must contain a provision that nothing relieves a person from 8.32 liability arising out of the failure to exercise reasonable care 8.33 to avoid injuring the franchisee's facilities while performing 8.34 work connected with grading, regrading, or changing the line of 8.35 a street or public place or with the construction or 8.36 reconstruction of a sewer or water system ;. 9.1 (l) a provision thatThe franchisee's technical ability, 9.2 financial condition, and legal qualification weremust have been 9.3 considered and approved by the franchising authority in a full 9.4 public proceeding that afforded reasonable notice and a 9.5 reasonable opportunity to be heard ;. 9.6 (m) a provision requiring the construction of a cable9.7 system with a channel capacity available for immediate or9.8 potential use, equal to a minimum of 72 MHz of bandwidth, the9.9 equivalent of 12 television broadcast channels. For purposes of9.10 this section, a cable system with a channel capacity, available9.11 for immediate or potential use, equal to a minimum of 72 MHz of9.12 bandwidth means: the provision of a distribution system9.13 designed and constructed so that a minimum of 72 MHz of9.14 bandwidth, the equivalent of 12 television broadcast channels,9.15 can be put into use with only the addition of the appropriate9.16 headend equipment;9.17 (n) a provision in initial franchises that there be a full9.18 description of the system proposed for construction and a9.19 schedule showing:9.20 (1) that for franchise areas which will be served by a9.21 system proposed to have fewer than 100 plant miles of cable:9.22 (i) that within 90 days of the granting of the franchise,9.23 the franchisee shall apply for the necessary governmental9.24 permits, licenses, certificates, and authorizations;9.25 (ii) that energized trunk cable must be extended9.26 substantially throughout the authorized area within one year9.27 after receipt of the necessary governmental permits, licenses,9.28 certificates, and authorizations and that persons along the9.29 route of the energized cable will have individual "drops" as9.30 desired during the same period of time; and9.31 (iii) that the requirement of this section may be waived by9.32 the franchising authority only upon occurrence of unforeseen9.33 events or acts of God; or9.34 (2) that for franchise areas which will be served by a9.35 system proposed to have 100 plant miles of cable or more, a9.36 provision:10.1 (i) that within 90 days of the granting of the franchise,10.2 the franchisee shall apply for the necessary governmental10.3 permits, licenses, certificates, and authorizations;10.4 (ii) that engineering and design must be completed within10.5 one year after the granting of the franchise and that a10.6 significant amount of construction must be completed within one10.7 year after the franchisee's receipt of the necessary10.8 governmental permits, licenses, certificates, and10.9 authorizations;10.10 (iii) that energized trunk cable must be extended10.11 substantially throughout the authorized area within five years10.12 after commencement of construction and that persons along the10.13 route of the energized cable will have individual "drops" within10.14 the same period of time, if desired; and10.15 (iv) that the requirement of this section be waived by the10.16 franchising authority only upon occurrence of unforeseen events10.17 or acts of God;10.18 (o)The system capacity and system technical design must be 10.19 identified. 10.20 (n) The schedule for system construction must be identified. 10.21 (o) Unless otherwise already provided for by local law, a10.22 provision thatthe franchisee shall obtain a permit from the 10.23 proper municipal authority before commencing construction of a 10.24 cable communications system, including the opening or 10.25 disturbance of a street, sidewalk, driveway, or public place. 10.26 The provision must specify remedies available to the franchising 10.27 authority in cases where the franchisee fails to meet the 10.28 conditions of the permit ;. 10.29 (p) Unless otherwise already provided for by local law, a10.30 provision thatwires, conduits, cable, and other property and 10.31 facilities of the franchisee must be located, constructed, 10.32 installed, and maintained in compliance with applicable codes. 10.33 The provision must also specify that thefranchisee shall keep 10.34 and maintain its property so as not to unnecessarily interfere 10.35 with the usual and customary trade, traffic, or travel upon the 10.36 streets and public places of the franchise area or endanger the 11.1 life or property of any person ;. 11.2 (q) Unless otherwise already provided for by local law, a11.3 provision thatthe franchising authority and the franchisee 11.4 shall establish a procedure in the franchise for the relocation 11.5 or removal of the franchisee's wires, conduits, cables, and 11.6 other property located in the street, right-of-way, or public 11.7 place whenever the franchising authority undertakes public 11.8 improvements whichthat affect the cable equipment ;. 11.9 (r) a provision incorporating by referenceAs a minimum, 11.10 the technical standards promulgated by the Federal 11.11 Communications Commission relating to cable communications 11.12 systems contained in subpart K of part 76 of the Federal 11.13 Communications Commission's rules and regulations relating to 11.14 cable communications systems and found in Code of Federal 11.15 Regulations, title 47, sections 76.601 to 76.617, must be 11.16 incorporated by reference into the franchise. The results of 11.17 tests required by the Federal Communications Commission must be 11.18 filed within ten days of the conduct of the tests with the 11.19 franchising authority ;. 11.20 (s) a provision establishing howThe franchising authority 11.21 and the person operating a cable communications companysystem 11.22 shall determine who is to bear the costs of required special11.23 testing;additional system testing required by the franchising 11.24 authority. 11.25 (t) a provision pertaining to the franchisee's construction11.26 and maintenance of a cable communications system having the11.27 technical capacity for nonvoice return communications which, for11.28 purposes of this section, means the provision of appropriate11.29 system design techniques with the installation of cable and11.30 amplifiers suitable for the subsequent insertion of necessary11.31 nonvoice communications electronic modules.11.32 In cases where an initial franchise is granted, the franchisee11.33 shall provide a cable communications system having the technical11.34 capacity for nonvoice return communications.11.35 When a franchise is renewed, sold, or transferred and is served11.36 by a system that does not have the technical capacity for12.1 nonvoice return communications, the franchising authority shall12.2 determine when and if the technical capacity for nonvoice return12.3 communications is needed after appropriate public proceedings at12.4 the municipal level giving reasonable notice and a reasonable12.5 opportunity to be heard;12.6 (u) a provision stating thatNo signals of a class IVcable 12.7 communications channel may be transmitted from a subscriber 12.8 terminal for purposes of monitoring individual viewing patterns 12.9 or practices without the express written permission of the 12.10 subscriber. The request for permission must be contained in a 12.11 separate document with a prominent statement that the subscriber 12.12 is authorizing the permission in full knowledge of its 12.13 provisions. The written permission must be for a limited period 12.14 of time not to exceed one year, which is renewable at the option 12.15 of the subscriber. No penalty may be invoked for a subscriber's 12.16 failure to provide or renew the authorization. The 12.17 authorization is revocable at any time by the subscriber without 12.18 penalty of any kind. The permission must be required for each12.19 type or classification of class IV cable communications activity12.20 planned for the purpose;12.21 (1) No information or data obtained by monitoring 12.22 transmission of a signal from a subscriber terminal, including 12.23 but not limited to lists of the names and addresses of the 12.24 subscribers or lists that identify the viewing habits of 12.25 subscribers, may be sold or otherwise made available to any 12.26 partyperson other than to the company and its employees for 12.27 internal business use, or to the subscriber who is the subject 12.28 of that information, unless the company has received specific 12.29 written authorization from the subscriber to make the data 12.30 available ;. 12.31 (2) Written permission from the subscriber must not be 12.32 required for the systems conducting systemwide or individually 12.33 addressed electronic sweeps for the purpose of verifying system 12.34 integrity or monitoring for the purpose of billing. 12.35 Confidentiality of this information is subject to clause (1) ;. 12.36 (3) For purposes of this provision, a "class IV cable13.1 communications channel" means a signaling path provided by a13.2 cable communications system to transmit signals of any type from13.3 a subscriber terminal to another point in the communications13.4 system;13.5 (v) a provision specifying(u) The procedure for the 13.6 investigation and resolution by the franchisee of complaints 13.7 regarding quality of service, equipment malfunction, billing 13.8 disputes, and other matters ;must be specified. 13.9 (w) a provision requiring that(v) At least a toll-free or 13.10 collect telephone number for the reception of complaints must be 13.11 provided to the subscriber and that the franchisee shall 13.12 maintain a repair service capable of responding to subscriber 13.13 complaints or requests for service within 24 hours after receipt 13.14 of the complaint or request. TheA provision must also state 13.15 who will bear the costs included in making these repairs, 13.16 adjustments, or installations ;. 13.17 (x) a provision granting(w) The franchising authority has 13.18 the right to terminate and cancel the franchise and the rights 13.19 and privileges of the franchise if the franchisee substantially 13.20 violates a provision of the franchise ordinance, attempts to 13.21 evade the provisions of the franchise ordinance, or practices 13.22 fraud or deceit upon the franchising authority. The 13.23 municipality shall provide the franchisee with a written notice 13.24 of the cause for termination and its intention to terminate the 13.25 franchise and shall allow the franchisee a minimum of 30 days 13.26 after service of the notice in which to correct the violation. 13.27 The franchisee must be provided with an opportunity to be heard 13.28 at a public hearing before the governing body of the 13.29 municipality before the termination of the franchise ;. 13.30 (y) a provision that(x) No cable communications company13.31 system, notwithstanding any provision in a franchise, may 13.32 abandon a cable communications service or a portion of it 13.33 without having given three months prior written notice to the 13.34 franchising authority. No cable communications companysystem 13.35 may abandon a cable communications service or a portion of it 13.36 without compensating the franchising authority for damages 14.1 resulting to it from the abandonment ;. 14.2 (z) a provision requiring that(y) Upon termination or 14.3 forfeiture of a franchise, unless otherwise required by 14.4 applicable law, the franchisee shall remove its cable, wires, 14.5 and appliances from the streets, alleys, and other public places 14.6 within the franchise area if the franchising authority so 14.7 requests , and. A procedure to be followed in the event the 14.8 franchisee fails to remove its cable, wires, and appliances from 14.9 the streets, alleys, and other public places within the 14.10 franchise area ;must be specified. 14.11 (aa) a provision that(z) When a franchise or cable system 14.12 is offered for saleto be transferred or sold, the franchising 14.13 authority shall havehas the right to purchase the system ;. 14.14 (bb) a provision establishing(aa) The minimum number of 14.15 access channels that the franchisee shall make available must be 14.16 specified. This provision must require that the franchisee 14.17 shall provide to each of its subscribers who receive some or all 14.18 of the services offered on the system, reception on at least one 14.19 specially designated access channel. The specially designated14.20 access channel may be used by local educational authorities and14.21 local government on a first-come, first-served,14.22 nondiscriminatory basis. During those hours that the specially14.23 designated access channel is not being used by the local14.24 educational authorities or local government, the franchisee14.25 shall lease time to commercial or noncommercial users on a14.26 first-come, first-served, nondiscriminatory basis if the demand14.27 for that time arises. The franchisee may also use this14.28 specially designated access channel for local origination during14.29 those hours when the channel is not in use by local educational14.30 authorities, local government, or commercial or noncommercial14.31 users who have leased time.As the municipality deems 14.32 appropriate, the provision may require the franchisee to provide 14.33 separate public access channels available for use by the general 14.34 public on a first-come, first-served, nondiscriminatory basis; 14.35 local educational access channels; local governmental access 14.36 channels; and channels available for lease on a first-come, 15.1 first-served, nondiscriminatory basis by commercial and 15.2 noncommercial users. The provision must require that whenever 15.3 the specially designated access channel required by this 15.4 paragraph is in use during 80 percent of the weekdays, Monday 15.5 through Friday, for 80 percent of the time during a consecutive 15.6 three-hour period for six weeks running, and there is a demand 15.7 for use of an additional channel for the same purpose, the 15.8 franchisee has six months in which to provide a new, specially 15.9 designated access channel for the same purpose; provided that, 15.10 the provision of the additional channel or channels does not 15.11 require the cable system to install converters. The VHF 15.12 spectrum must be used for the specially designated access 15.13 channel required in this paragraph. The provision must also 15.14 require that the franchisee shall establish rules for the 15.15 administration of the specially designated access channel unless 15.16 such channel is administered by the municipality. 15.17 Franchisees providing only alarm services or only data15.18 transmission services for computer-operated functions do not15.19 need to provide access channel reception to alarm and data15.20 service subscribers.15.21 (bb) The minimum equipment that the franchisee shall make 15.22 available for public use must be specified. The franchisee 15.23 shall make readily available for public use at least the minimal 15.24 equipment necessary for the production of programming and 15.25 playback of prerecorded programs for the access channels. Upon 15.26 request, the franchisee, at minimum, shall also make readily 15.27 available the minimum equipment necessary to make it possible to 15.28 record programs at remote locations with battery-operated 15.29 portable equipment. 15.30 (cc) A franchise in the metropolitan area, as defined in 15.31 section 473.121, must designate the standard VHF channel 6 for 15.32 uniform regional channel usage as required in section 238.43. 15.33 Sec. 9. Minnesota Statutes 2002, section 238.11, 15.34 subdivision 2, is amended to read: 15.35 Subd. 2. [ACCESS CHANNEL.] No cable communications 15.36 companysystem may prohibit or limit a program or class or type 16.1 of program presented over a leased channel or a channel made 16.2 available for public access, governmental or educational 16.3 purposes. Neither the person operating a cable communications 16.4 companysystem nor the officers, directors, or employees of the 16.5 cable communications system is liable for any penalties or 16.6 damages arising from programming content not originating from or 16.7 produced by the cable communications companysystem and shown on 16.8 any public access channel, education access channel, government 16.9 access channel, leased access channel, or regional channel. 16.10 Sec. 10. Minnesota Statutes 2002, section 238.22, 16.11 subdivision 13, is amended to read: 16.12 Subd. 13. [PROPERTY OWNER.] "Property owner" means any 16.13 person with a recorded interest in a multiple dwelling complex, 16.14 or person known to the person operating a cable communications 16.15 companysystem to be an owner, or the authorized agent of the 16.16 person. 16.17 Sec. 11. Minnesota Statutes 2002, section 238.23, is 16.18 amended to read: 16.19 238.23 [ACCESS REQUIRED.] 16.20 Subdivision 1. [PROVISION OF ACCESS.] A property owner or 16.21 other person controlling access shall provide a cable 16.22 communications companysystem access to the property owner's 16.23 multiple dwelling complex. The access provided must be 16.24 perpetual and freely transferable by one person operating a 16.25 cable communications companysystem to another. A cable 16.26 communications companysystem granted access, and its successors 16.27 in interest, must fully comply with sections 238.22 to 238.27. 16.28 Subd. 2. [RESIDENT'S RIGHTS.] The intent of sections 16.29 238.22 to 238.27 is to give residents the freedom to choose 16.30 among competing cable communications services and nothing in 16.31 sections 238.22 to 238.27 shall be interpreted to require16.32 requires residents to hook up or subscribe to any services 16.33 offered by any cable communications companysystem or 16.34 alternative provider of cable communications services. 16.35 Sec. 12. Minnesota Statutes 2002, section 238.24, 16.36 subdivision 3, is amended to read: 17.1 Subd. 3. [INSTALLATION; BOND.] The facilities must be 17.2 installed in an expeditious and workmanlike manner, must comply 17.3 with applicable codes, and must be installed parallel to utility 17.4 lines when economically feasible. A property owner may require 17.5 a person operating a cable communications companysystem to post 17.6 a bond or equivalent security in an amount not exceeding the 17.7 estimated cost of installation of the cable communications 17.8 facilities on the premises. Any bond filed by a cable 17.9 communications companysystem with a municipality whichthat 17.10 would provide coverage to the property owner as provided under 17.11 this subdivision shall be considered to fulfillfulfills the 17.12 requirements of this subdivision. 17.13 Sec. 13. Minnesota Statutes 2002, section 238.24, 17.14 subdivision 4, is amended to read: 17.15 Subd. 4. [INDEMNIFY FOR DAMAGE.] A person operating a 17.16 cable communications companysystem shall indemnify a property 17.17 owner for damage caused by the company in the installation, 17.18 operation, maintenance, or removal of its facilities. 17.19 Sec. 14. Minnesota Statutes 2002, section 238.24, 17.20 subdivision 6, is amended to read: 17.21 Subd. 6. [MASTER ANTENNA TELEVISION SYSTEM.] Nothing in 17.22 sections 238.22 to 238.27 precludes a property owner from 17.23 entering into an agreement for use of a master antenna 17.24 television system by a person operating a cable communications 17.25 companysystem or other television communications service. 17.26 Sec. 15. Minnesota Statutes 2002, section 238.24, 17.27 subdivision 9, is amended to read: 17.28 Subd. 9. [NOT RETROACTIVE.] Nothing in sections 238.22 to 17.29 238.27 affects the validity of an agreement effective before 17.30 June 15, 1983 between a property owner, a person operating a 17.31 cable communications companysystem, or any other person 17.32 providing cable communications services on or within the 17.33 premises of the property owner. 17.34 Sec. 16. Minnesota Statutes 2002, section 238.24, 17.35 subdivision 10, is amended to read: 17.36 Subd. 10. [CHANNEL CAPACITY.] (a) A property owner must 18.1 provide access byto a franchised person providing a cable 18.2 communications companysystem, as required under section 238.23, 18.3 only if that cable company installs equipment with channel 18.4 capacity sufficient to provide access to other providers of 18.5 television programming or cable communications services so that 18.6 residents or association members have a choice of alternative 18.7 providers of those services. If the equipment is installed, the 18.8 cable communications companysystem shall allow alternative 18.9 providers to use the equipment. If some of the residents or 18.10 association members choose to subscribe to the services of an 18.11 alternative provider, the cable company that installed the 18.12 equipment shallmust be reimbursed by the other providers for 18.13 the cost of equipment and installation on the property on a pro 18.14 rata basis whichthat reflects the number of subscribers of each 18.15 provider on that property to the total number of subscribers on 18.16 that property. In determining the pro rata amount of 18.17 reimbursement by any alternative provider, the cost of equipment 18.18 and installation shallmust be reduced to the extent of 18.19 cumulative depreciation of that equipment at the time the 18.20 alternative provider begins providing service. 18.21 (b) If equipment is already installed as of June 15, 1983, 18.22 with channel capacity sufficient to allow access to alternative 18.23 providers, the access and pro rata reimbursement provisions of 18.24 paragraph (a) apply. 18.25 Sec. 17. Minnesota Statutes 2002, section 238.242, 18.26 subdivision 1, is amended to read: 18.27 Subdivision 1. [PROVIDING ALTERNATIVE SERVICE.] Other 18.28 providers of television programming or cable communications 18.29 services shall notify the person operating a cable 18.30 communications companysystem when a resident or association 18.31 member occupying a dwelling unit in a multiple dwelling complex 18.32 requests the services provided for by this section or section 18.33 238.241. After reaching agreement with the alternative service 18.34 provider for reimbursement to be paid for use of the equipment, 18.35 the cable communications companysystem shall make available the 18.36 equipment necessary to provide the alternative service without 19.1 unreasonable delay. 19.2 Sec. 18. Minnesota Statutes 2002, section 238.242, 19.3 subdivision 3, is amended to read: 19.4 Subd. 3. [FINANCIAL RECORDS MADE AVAILABLE.] The person 19.5 operating a cable communications companysystem, upon written 19.6 request, shall make available to the alternative provider 19.7 financial records supporting the reimbursement cost requested. 19.8 Sec. 19. Minnesota Statutes 2002, section 238.25, 19.9 subdivision 5, is amended to read: 19.10 Subd. 5. [SERVICE OF PETITION.] The petition must be 19.11 served upon all persons named in the petition as property owners 19.12 in the same manner as a summons in a civil action; except that, 19.13 service may be made upon a property owner by three weeks' 19.14 published notice if the person operating a cable communications 19.15 companysystem, itsor the person's agent or attorney, files an 19.16 affidavit stating on belief that the property owner is not a 19.17 resident of the state and that the company has mailed a copy of 19.18 the notice to the property owner at the property owner's place 19.19 of residence, or that after diligent inquiry the property 19.20 owner's place of residence cannot be ascertained by the 19.21 company. If the state is a property owner, the notice must be 19.22 served upon the attorney general. Any property owner not served 19.23 as provided under this paragraph is not bound by the proceeding 19.24 unless the property owner voluntarily appears thereinin the 19.25 proceeding. 19.26 Sec. 20. Minnesota Statutes 2002, section 238.25, 19.27 subdivision 10, is amended to read: 19.28 Subd. 10. [FINAL CERTIFICATE.] Upon completion of the 19.29 proceedings, the attorney for the person operating the cable 19.30 communications companysystem shall make a certificate 19.31 describing the access acquired and the purpose or purposes for 19.32 which acquired, and reciting the fact of final payment of all 19.33 awards or judgments in relation thereto. The certificate must 19.34 be filed with the court administrator and a certified copy 19.35 thereof filed for record with the county recorder. The record 19.36 is notice to all parties of the access to the premises described 20.1 in the petition. 20.2 Sec. 21. Minnesota Statutes 2002, section 238.35, 20.3 subdivision 1, is amended to read: 20.4 Subdivision 1. [LEGISLATIVE FINDINGS.] There is a 20.5 long-standing legislative policy in the state of Minnesota to 20.6 provide for the dedication or other provision of easements and 20.7 public rights-of-way required by public utilities and cable 20.8 communications companiessystems. Except for applicable20.9 governmental rules, these easements do not include any20.10 limitation on the type, number, or size of cables or related20.11 cable communication system components.There is a public 20.12 understanding and acceptance of the need of public utilities and 20.13 cable communications companiessystems to have the ability to 20.14 use existing utility easements and public rights-of-way in order 20.15 to provide new and improved cable communications services made 20.16 possible by technological developments and to make changes to 20.17 the cables or related cable communication systems components. 20.18 Changing technology has caused and will continue to cause over 20.19 time the development of new cable communications services 20.20 requiring changing uses of existing utility easements and public 20.21 rights-of-way. Cable communications companiessystems have a 20.22 need to use existing utility easements and public rights-of-way 20.23 in order to deliver their services to the public. The addition 20.24 of cable communications system components does not constitute an 20.25 unanticipated or added burden on the real estate subject to the 20.26 easements or public rights-of-way. 20.27 Sec. 22. Minnesota Statutes 2002, section 238.35, 20.28 subdivision 4, is amended to read: 20.29 Subd. 4. [RESTRICTIONS ON USE.] (a) As a condition of 20.30 using any utility easement, a cable communications company shall20.31 besystem is subject to any burdens, duties, or obligations 20.32 specified in the easement of the grantee of the easement. 20.33 (b) A cable communications company shall restore the real20.34 estate, and any landscaping or improvements thereon, to the20.35 condition they were in prior to entry within 30 days of20.36 completing the installation of the cables and related cable21.1 communications system components upon that real estate and to21.2 make changes to the cables or related cable communication21.3 systems components. Changing technology has caused and will21.4 continue to cause over time the development of new cable21.5 communications services requiring changing uses of existing21.6 utility easements. Restoration which cannot be completed during21.7 the winter months must be accomplished as promptly as weather21.8 conditions permitsystem seeking to use public rights-of-way is 21.9 subject to the rights and obligations of sections 237.162 and 21.10 237.163, and any local right-of-way ordinance adopted under 21.11 those statutes. 21.12 Sec. 23. Minnesota Statutes 2002, section 238.36, 21.13 subdivision 2, is amended to read: 21.14 Subd. 2. [CABLE COMMUNICATIONS COMPANY'SSYSTEM'S 21.15 EQUIPMENT.] "Cable communications company'ssystem's equipment" 21.16 means aerial wires, cables, amplifiers, associated power supply 21.17 equipment, and other transmission apparatus necessary for the 21.18 proper operation of the cable communications system in a 21.19 franchised area. 21.20 Sec. 24. Minnesota Statutes 2002, section 238.39, is 21.21 amended to read: 21.22 238.39 [LEGAL AUTHORITY.] 21.23 Every pole, duct, and conduit agreement must contain a 21.24 provision that the cable communications companysystem shall 21.25 submit to the public utility company evidence of the cable 21.26 communications company'ssystem's lawful authority to place, 21.27 maintain, and operate its facilities within public streets, 21.28 highways, and other thoroughfares and shall secure the legally 21.29 necessary permits and consents from federal, state, county, and 21.30 municipal authorities to construct, maintain, and operate 21.31 facilities at the locations of poles or conduit systems of the 21.32 public utility company whichthat it uses. The parties to the 21.33 agreement shall at all times observe and comply with, and the 21.34 provisions of a pole, duct, and conduit agreement are subject 21.35 to, the laws, ordinances, and rules whichthat in any manner 21.36 affect the rights and obligations of the parties to the 22.1 agreement, so long as the laws, ordinances, or rules remain in 22.2 effect. 22.3 Sec. 25. Minnesota Statutes 2002, section 238.40, is 22.4 amended to read: 22.5 238.40 [LIABILITY; INDEMNIFY PUBLIC UTILITY.] 22.6 (a) Every pole, duct, and conduit agreement must contain a 22.7 provision that the cable communications companysystem shall 22.8 defend, indemnify, protect, and save harmless the public utility 22.9 from and against any and all claims and demands for damages to 22.10 property and injury or death to persons, including payments made 22.11 under any worker's compensation law or under any plan for 22.12 employees' disability and death benefits, which may arise out of 22.13 or be caused: 22.14 (1) by the erection, maintenance, presence, use, or removal 22.15 of the cable communications company'ssystem's cable, equipment, 22.16 and facilities or by the proximity of the cables, equipment, and 22.17 facilities of the parties to the agreement ,; or 22.18 (2) by any act of the cable communications companysystem 22.19 on or in the vicinity of the public utility company's poles and 22.20 conduit system, in the performance of the agreement. Nothing22.21 contained in this section relieves the public utility company22.22 from liability for the negligence of the public utility company22.23 or anyone acting under its direction and control.22.24 (b) The cable communications companysystem shall also 22.25 indemnify, protect, and save harmless the public utility: 22.26 (1) from any and all claims and demands whichthat arise 22.27 directly or indirectly from the operation of the cable 22.28 communications company'ssystem's facilities including taxes, 22.29 special charges by others, claims, and demands (i) for damages 22.30 or loss for infringement of copyright, (ii) for libel and 22.31 slander, (iii) for unauthorized use of television broadcast 22.32 programs, and (iv) for unauthorized use of other program 22.33 material ,; and 22.34 (2) from and against all claims and demands for 22.35 infringement of patents with respect to the manufacture, use, 22.36 and operation of the cable communications equipment in 23.1 combination with the public utility company's poles, conduit 23.2 system, or otherwise. 23.3 (c) Nothing contained in this section relieves the public 23.4 utility company from liability for the negligence of the public 23.5 utility company or anyone acting under its direction and control. 23.6 Sec. 26. Minnesota Statutes 2002, section 238.43, 23.7 subdivision 1, is amended to read: 23.8 Subdivision 1. [ DEFINITIONREGIONAL CHANNEL ENTITY.] For23.9 the purposes of this section"Regional channel entity" or 23.10 "entity" means an independent, nonprofit corporation to govern 23.11 the operation of the regional channel. 23.12 Sec. 27. [REVISOR INSTRUCTIONS.] 23.13 (a) The revisor of statutes shall delete the words "shall 23.14 mean" and insert "means" where found in Minnesota Statutes, 23.15 section 238.02. 23.16 (b) The revisor of statutes shall change the term "cable 23.17 communications company" to "cable communications system" where 23.18 found in Minnesota Statutes, chapter 238. 23.19 (c) In Minnesota Statutes, section 238.18, subdivision 1, 23.20 the revisor of statutes shall delete paragraph (a) and renumber 23.21 paragraph (b) as section 238.02, subdivision 1b, and renumber 23.22 paragraph (c) as section 238.02, subdivision 34. 23.23 (d) In Minnesota Statutes, section 238.22, the revisor of 23.24 statutes shall renumber subdivision 6 as section 238.02, 23.25 subdivision 1a; subdivision 7 as section 238.02, subdivision 1c; 23.26 subdivision 8 as section 238.02, subdivision 1d; subdivision 10 23.27 as section 238.02, subdivision 21a; subdivision 11 as section 23.28 238.02, subdivision 28a; subdivision 12 as section 238.02, 23.29 subdivision 29a; subdivision 13 as section 238.02, subdivision 23.30 31a; and subdivision 14 as section 238.02, subdivision 31d. 23.31 (e) In Minnesota Statutes, section 238.36, the revisor of 23.32 statutes shall renumber subdivision 2 as section 238.02, 23.33 subdivision 3a; subdivision 3 as section 238.02, subdivision 23.34 20a; and subdivision 4 as section 238.02, subdivision 31b. 23.35 (f) The revisor of statutes shall renumber Minnesota 23.36 Statutes, section 238.43, subdivision 1, as section 238.02, 24.1 subdivision 31c. 24.2 Sec. 28. [REPEALER.] 24.3 Minnesota Statutes 2002, sections 238.01; 238.02, 24.4 subdivisions 2, 17, 18, 19, and 25; 238.082; 238.083, 24.5 subdivisions 3 and 5; 238.084, subdivisions 2, 3, and 5; 238.12, 24.6 subdivision 1a; 238.15; 238.35, subdivisions 2 and 3; and 24.7 238.36, subdivision 1, are repealed.