1997 Minnesota Statutes

     238.084 Required contents of franchise ordinance. 

    Subdivision 1.    All systems.  The following 
 requirements apply to all classes A, B, and C systems unless 
 provided otherwise: 

    (a) a provision that the franchise complies with the 
 Minnesota franchise standards contained in this section; 

    (b) a provision requiring the franchisee and the 
 franchising authority to conform to state laws and rules 
 regarding cable communications not later than one year after 
 they become effective, unless otherwise stated, and to conform 
 to federal laws and regulations regarding cable as they become 
 effective; 

    (c) a provision limiting the initial and renewal franchise 
 term to not more than 15 years each; 

    (d) a provision specifying that the franchise is 
 nonexclusive; 

    (e) a provision prohibiting sale or transfer of the 
 franchise or sale or transfer of stock so as to create a new 
 controlling interest under section 238.083, except at the 
 approval of the franchising authority, which approval must not 
 be unreasonably withheld, and that the sale or transfer is 
 completed pursuant to section 238.083; 

    (f) a provision granting the franchising authority 
 collecting a franchise fee the authority to audit the 
 franchisee's accounting and financial records upon reasonable 
 notice, and requiring that the franchisee file with the 
 franchising authority annually reports of gross subscriber 
 revenues and other information as the franchising authority 
 deems appropriate; 

    (g) provisions specifying:  

    (1) current subscriber charges or that the current charges 
 are available for public inspection in the municipality; 

    (2) the length and terms of residential subscriber 
 contracts, if they exist, or that the current length and terms 
 of residential subscriber contracts are available for public 
 inspection in the municipality; and 

    (3) the procedure by which subscriber charges are 
 established, unless such a provision is contrary to state or 
 federal law; 

    (h) a provision indicating by title the office or officer 
 of the franchising authority that is responsible for the 
 continuing administration of the franchise; 

    (i) a provision requiring the franchisee to indemnify and 
 hold harmless the franchising authority during the term of the 
 franchise, and to maintain throughout the term of the franchise, 
 liability insurance in an amount as the franchising authority 
 may require insuring both the franchising authority and the 
 franchisee with regard to damages and penalties which they may 
 legally be required to pay as a result of the exercise of the 
 franchise; 

    (j) a provision that at the time the franchise becomes 
 effective and thereafter until the franchisee has liquidated all 
 of its obligation with the franchising authority, the franchisee 
 shall furnish a performance bond, certificate of deposit, or 
 other type of instrument approved by the franchising authority 
 in an amount as the franchising authority deems to be adequate 
 compensation for damages resulting from the franchisee's 
 nonperformance.  The franchising authority may, from year to 
 year and in its sole discretion, reduce the amount of the 
 performance bond or instrument; 

    (k) a provision that nothing contained in the franchise 
 relieves a person from liability arising out of the failure to 
 exercise reasonable care to avoid injuring the franchisee's 
 facilities while performing work connected with grading, 
 regrading, or changing the line of a street or public place or 
 with the construction or reconstruction of a sewer or water 
 system; 

    (l) a provision that the franchisee's technical ability, 
 financial condition, and legal qualification were considered and 
 approved by the franchising authority in a full public 
 proceeding that afforded reasonable notice and a reasonable 
 opportunity to be heard; 

    (m) a provision requiring the construction of a cable 
 system with a channel capacity available for immediate or 
 potential use, equal to a minimum of 72 MHz of bandwidth, the 
 equivalent of 12 television broadcast channels.  For purposes of 
 this section, a cable system with a channel capacity, available 
 for immediate or potential use, equal to a minimum of 72 MHz of 
 bandwidth means:  the provision of a distribution system 
 designed and constructed so that a minimum of 72 MHz of 
 bandwidth, the equivalent of 12 television broadcast channels, 
 can be put into use with only the addition of the appropriate 
 headend equipment; 

    (n) a provision in initial franchises that there be a full 
 description of the system proposed for construction and a 
 schedule showing: 

    (1) that for franchise areas which will be served by a 
 system proposed to have fewer than 100 plant miles of cable: 

    (i) that within 90 days of the granting of the franchise, 
 the franchisee shall apply for the necessary governmental 
 permits, licenses, certificates, and authorizations; 

    (ii) that energized trunk cable must be extended 
 substantially throughout the authorized area within one year 
 after receipt of the necessary governmental permits, licenses, 
 certificates, and authorizations and that persons along the 
 route of the energized cable will have individual "drops" as 
 desired during the same period of time; and 

    (iii) that the requirement of this section may be waived by 
 the franchising authority only upon occurrence of unforeseen 
 events or acts of God; or 

    (2) that for franchise areas which will be served by a 
 system proposed to have 100 plant miles of cable or more, a 
 provision: 

    (i) that within 90 days of the granting of the franchise, 
 the franchisee shall apply for the necessary governmental 
 permits, licenses, certificates, and authorizations; 

    (ii) that engineering and design must be completed within 
 one year after the granting of the franchise and that a 
 significant amount of construction must be completed within one 
 year after the franchisee's receipt of the necessary 
 governmental permits, licenses, certificates, and 
 authorizations; 

    (iii) that energized trunk cable must be extended 
 substantially throughout the authorized area within five years 
 after commencement of construction and that persons along the 
 route of the energized cable will have individual "drops" within 
 the same period of time, if desired; and 

    (iv) that the requirement of this section be waived by the 
 franchising authority only upon occurrence of unforeseen events 
 or acts of God; 

    (o) unless otherwise already provided for by local law, a 
 provision that the franchisee shall obtain a permit from the 
 proper municipal authority before commencing construction of a 
 cable communications system, including the opening or 
 disturbance of a street, sidewalk, driveway, or public place. 
 The provision must specify remedies available to the franchising 
 authority in cases where the franchisee fails to meet the 
 conditions of the permit; 

    (p) unless otherwise already provided for by local law, a 
 provision that wires, conduits, cable, and other property and 
 facilities of the franchisee be located, constructed, installed, 
 and maintained in compliance with applicable codes.  The 
 provision must also specify that the franchisee keep and 
 maintain its property so as not to unnecessarily interfere with 
 the usual and customary trade, traffic, or travel upon the 
 streets and public places of the franchise area or endanger the 
 life or property of any person; 

    (q) unless otherwise already provided for by local law, a 
 provision that the franchising authority and the franchisee 
 shall establish a procedure in the franchise for the relocation 
 or removal of the franchisee's wires, conduits, cables, and 
 other property located in the street, right-of-way, or public 
 place whenever the franchising authority undertakes public 
 improvements which affect the cable equipment; 

    (r) a provision incorporating by reference as a minimum the 
 technical standards promulgated by the Federal Communications 
 Commission relating to cable communications systems contained in 
 subpart K of part 76 of the Federal Communications Commission's 
 rules and regulations relating to cable communications systems 
 and found in Code of Federal Regulations, title 47, sections 
 76.601 to 76.617.  The results of tests required by the Federal 
 Communications Commission must be filed within ten days of the 
 conduct of the tests with the franchising authority; 

    (s) a provision establishing how the franchising authority 
 and the cable communications company shall determine who is to 
 bear the costs of required special testing; 

    (t) a provision pertaining to the franchisee's construction 
 and maintenance of a cable communications system having the 
 technical capacity for nonvoice return communications which, for 
 purposes of this section, means the provision of appropriate 
 system design techniques with the installation of cable and 
 amplifiers suitable for the subsequent insertion of necessary 
 nonvoice communications electronic modules.  

    In cases where an initial franchise is granted, the 
 franchisee shall provide a cable communications system having 
 the technical capacity for nonvoice return communications. 

    When a franchise is renewed, sold, or transferred and is 
 served by a system that does not have the technical capacity for 
 nonvoice return communications, the franchising authority shall 
 determine when and if the technical capacity for nonvoice return 
 communications is needed after appropriate public proceedings at 
 the municipal level giving reasonable notice and a reasonable 
 opportunity to be heard; 

    (u) a provision stating that no signals of a class IV cable 
 communications channel may be transmitted from a subscriber 
 terminal for purposes of monitoring individual viewing patterns 
 or practices without the express written permission of the 
 subscriber.  The request for permission must be contained in a 
 separate document with a prominent statement that the subscriber 
 is authorizing the permission in full knowledge of its 
 provisions.  The written permission must be for a limited period 
 of time not to exceed one year which is renewable at the option 
 of the subscriber.  No penalty may be invoked for a subscriber's 
 failure to provide or renew the authorization.  The 
 authorization is revocable at any time by the subscriber without 
 penalty of any kind.  The permission must be required for each 
 type or classification of class IV cable communications activity 
 planned for the purpose; 

    (1) No information or data obtained by monitoring 
 transmission of a signal from a subscriber terminal, including 
 but not limited to lists of the names and addresses of the 
 subscribers or lists that identify the viewing habits of 
 subscribers, may be sold or otherwise made available to any 
 party other than to the company and its employees for internal 
 business use, or to the subscriber who is the subject of that 
 information, unless the company has received specific written 
 authorization from the subscriber to make the data available; 

    (2) Written permission from the subscriber must not be 
 required for the systems conducting systemwide or individually 
 addressed electronic sweeps for the purpose of verifying system 
 integrity or monitoring for the purpose of billing. 
 Confidentiality of this information is subject to clause (1); 

    (3) For purposes of this provision, a "class IV cable 
 communications channel" means a signaling path provided by a 
 cable communications system to transmit signals of any type from 
 a subscriber terminal to another point in the communications 
 system; 

    (v) a provision specifying the procedure for the 
 investigation and resolution by the franchisee of complaints 
 regarding quality of service, equipment malfunction, billing 
 disputes, and other matters; 

    (w) a provision requiring that at least a toll-free or 
 collect telephone number for the reception of complaints be 
 provided to the subscriber and that the franchisee maintain a 
 repair service capable of responding to subscriber complaints or 
 requests for service within 24 hours after receipt of the 
 complaint or request.  The provision must also state who will 
 bear the costs included in making these repairs, adjustments, or 
 installations; 

    (x) a provision granting the franchising authority the 
 right to terminate and cancel the franchise and the rights and 
 privileges of the franchise if the franchisee substantially 
 violates a provision of the franchise ordinance, attempts to 
 evade the provisions of the franchise ordinance, or practices 
 fraud or deceit upon the franchising authority.  

    The municipality shall provide the franchisee with a 
 written notice of the cause for termination and its intention to 
 terminate the franchise and shall allow the franchisee a minimum 
 of 30 days after service of the notice in which to correct the 
 violation.  

    The franchisee must be provided with an opportunity to be 
 heard at a public hearing before the governing body of the 
 municipality before the termination of the franchise; 

    (y) a provision that no cable communications company, 
 notwithstanding any provision in a franchise, may abandon a 
 cable communications service or a portion of it without having 
 given three months prior written notice to the franchising 
 authority.  No cable communications company may abandon a cable 
 communications service or a portion of it without compensating 
 the franchising authority for damages resulting to it from the 
 abandonment; 

    (z) a provision requiring that upon termination or 
 forfeiture of a franchise, the franchisee remove its cable, 
 wires, and appliances from the streets, alleys, and other public 
 places within the franchise area if the franchising authority so 
 requests, and a procedure to be followed in the event the 
 franchisee fails to remove its cable, wires, and appliances from 
 the streets, alleys, and other public places within the 
 franchise area; 

    (aa) a provision that when a franchise or cable system is 
 offered for sale, the franchising authority shall have the right 
 to purchase the system; 

    (bb) a provision establishing the minimum number of access 
 channels that the franchisee shall make available.  This 
 provision must require that the franchisee shall provide to each 
 of its subscribers who receive some or all of the services 
 offered on the system, reception on at least one specially 
 designated access channel.  The specially designated access 
 channel may be used by local educational authorities and local 
 government on a first-come, first-served, nondiscriminatory 
 basis.  During those hours that the specially designated access 
 channel is not being used by the local educational authorities 
 or local government, the franchisee shall lease time to 
 commercial or noncommercial users on a first-come, first-served, 
 nondiscriminatory basis if the demand for that time arises.  The 
 franchisee may also use this specially designated access channel 
 for local origination during those hours when the channel is not 
 in use by local educational authorities, local government, or 
 commercial or noncommercial users who have leased time.  The VHF 
 spectrum must be used for the specially designated access 
 channel required in this paragraph. 

    The provision must also require that the franchisee shall 
 establish rules for the administration of the specially 
 designated access channel.  

    Franchisees providing only alarm services or only data 
 transmission services for computer-operated functions do not 
 need to provide access channel reception to alarm and data 
 service subscribers. 

    Subd. 2.    Required provisions for class B system.  
 Franchises for class B cable systems must contain statements and 
 provisions consistent with subdivision 1, unless hereafter 
 provided otherwise, and statements and provisions consistent 
 with the following requirements: 

    (a) a provision establishing the minimum number of access 
 channels that the franchisee shall make available.  Franchisees 
 subject to this provision are not subject to subdivision 1, 
 paragraph (bb). 

    (1) The provision must require that the franchisee provide 
 to each of its subscribers who receive all or a part of the 
 total services offered on the system, reception on at least one 
 specially designated access channel available for use by the 
 general public on a first-come, first-served, nondiscriminatory 
 basis.  Channel time and playback of prerecorded programming on 
 this specially designated access channel must be provided 
 without charge to the general public, except that personnel, 
 equipment, and production costs may be assessed for live studio 
 presentations exceeding five minutes in length.  Charges for 
 production costs must be consistent with the goal of affording 
 the public a low-cost means of television access.  The specially 
 designated access channel may be used by local education 
 authorities and local government on a first-come, first-served, 
 nondiscriminatory basis during those hours when the channel is 
 not in use by the general public.  During those hours that the 
 specially designated access channel is not being used by the 
 general public, local educational authorities, or local 
 government, the franchisee shall lease time to commercial or 
 noncommercial users on a first-come, first-served, 
 nondiscriminatory basis if the demand for that time arises.  The 
 franchisee may also use this specially designated access channel 
 for local origination during those hours when the channel is not 
 in use by the general public, local educational authorities, 
 local government, or commercial or noncommercial users who have 
 leased time.  The VHF spectrum must be used for the specially 
 designated access channel required in this paragraph. 

    (2) The provision must also require that the franchisee 
 establish rules for the administration of the specially 
 designated access channel.  

    (3) The provision must require that whenever the specially 
 designated access channel required in clause (1) is in use 
 during 80 percent of the weekdays, Monday to Friday, for 80 
 percent of the time during a consecutive three-hour period for 
 six weeks running, and there is a demand for use of an 
 additional channel for the same purpose, the franchisee has six 
 months in which to provide a new specially designated access 
 channel for the same purpose, provided that provision of the 
 additional channel or channels does not require the cable system 
 to install converters.  Nothing in this section precludes the 
 installation of converters by the system on a voluntary basis, 
 as a result of an agreement arrived at through negotiation 
 between the parties to a franchise, or by a potential access 
 user who wishes to install converters in order to make use of an 
 additional channel or channels. 

    (4) Franchisees providing only alarm services or only data 
 transmission services for computer-operated functions do not 
 need to provide access channel reception to alarm and data 
 service subscribers.  

    (b) A provision establishing the minimum equipment that the 
 franchisee shall make available for public use.  The provision 
 shall require that the franchisee make readily available for 
 public use upon need being shown, at least the minimal equipment 
 necessary to perform good quality playback of prerecorded 
 programming, and to make it possible to record programs at 
 remote locations with battery-operated portable equipment.  Need 
 within the meaning of this section must be determined by 
 subscriber petition.  The petition must contain the signatures 
 of at least ten percent of the subscribers of the system, but in 
 no case more than 350 nor fewer than 100 signatures. 

    Subd. 3.    Required provisions for class C system.  
 Franchises for class C cable systems must contain statements and 
 provisions consistent with subdivision 1, unless this section 
 provides otherwise, and statements and provisions consistent 
 with the following requirements: 

    (a) a provision establishing the minimum number of public, 
 educational, governmental, and leased access channels that the 
 franchisee shall make available.  Franchisees subject to this 
 provision are not subject to subdivision 1, paragraph (bb). 

    (1) The provision must require that the franchisee shall, 
 to the extent of the system's available channel capacity, 
 provide to each of its subscribers who receives some or all of 
 the services offered on the system, reception on at least one 
 specially designated noncommercial public access channel 
 available for use by the general public on a first-come, 
 first-served, nondiscriminatory basis; at least one specially 
 designated access channel for use by local educational 
 authorities; at least one specially designated access channel 
 available for local government use; and at least one specially 
 designated access channel available for lease on a first-come, 
 first-served, nondiscriminatory basis by commercial and 
 noncommercial users.  The VHF spectrum must be used for at least 
 one of the specially designated noncommercial public access 
 channels required in this paragraph.  The provision must require 
 that no charges may be made for channel time or playback of 
 prerecorded programming on at least one of the specially 
 designated noncommercial public access channels required by this 
 paragraph.  Personnel, equipment, and production costs may be 
 assessed, however, for live studio presentations exceeding five 
 minutes in length.  Charges for those production costs and fees 
 for use of other public access channels must be consistent with 
 the goal of affording the public a low-cost means of television 
 access.  

    (2) The provision must require that whenever the specially 
 designated noncommercial public access channel, the specially 
 designated education access channel, the specially designated 
 local government access channel, or the specially designated 
 leased access channel required in clause (1) is in use during 80 
 percent of the weekdays, Monday to Friday, for 80 percent of the 
 time during any consecutive three-hour period for six weeks 
 running, and there is demand for use of an additional channel 
 for the same purpose, the franchisee shall then have six months 
 in which to provide a new specially designated access channel 
 for the same purpose, provided that provision of the additional 
 channel or channels must not require the cable system to install 
 converters.  However, nothing in this section precludes the 
 installation of converters by the system on a voluntary basis, 
 or as a result of an agreement arrived at through negotiation 
 between the parties to a franchise, or by a potential access 
 user who wishes to install converters in order to make use of an 
 additional channel or channels. 

    (3) The provision must also require that the franchisee 
 establish rules pertaining to the administration of the 
 specially designated noncommercial public access channel, the 
 specially designated educational access channel, and the 
 specially designated leased access channel required in this 
 section.  

    (4) Those systems which offer subscribers the option of 
 receiving programs on one or more special service channels 
 without also receiving the regular subscriber services may 
 comply with this section by providing the subscribers who 
 receive the special service only, at least one specially 
 designated composite access channel composed of the programming 
 on the specially designated noncommercial public access channel, 
 the specially designated education access channel, and the 
 specially designated local government access channel required in 
 this section.  

    (5) On those systems without sufficient available channel 
 capacity to allow for activation of all specially designated 
 access channels required in this section, or when demand for use 
 of the channels does not warrant activation of all specially 
 designated access channels required in this section, public, 
 educational, governmental, and leased access channel programming 
 may be combined on one or more cable channels.  To the extent 
 time is available, access channels may also be used for other 
 broadcast and nonbroadcast services, provided that these 
 services are subject to immediate displacement if there is 
 demand to use the channel for its specially designated purpose.  
 The system shall, in any case, provide at least one full channel 
 on the VHF spectrum for shared access programming. 

    (6) Franchisees providing only alarm services or only data 
 transmission services for computer-operated functions do not 
 need to provide access channel reception to alarm and data 
 service subscribers.  

    (b) a provision establishing the minimum equipment that the 
 franchisee shall make available for public use.  The provision 
 shall require that the franchisee shall make readily available 
 for public use at least the minimal equipment necessary for the 
 production of programming and playback of prerecorded programs 
 for the specially designated noncommercial public access channel 
 required by paragraph (a), clause (1).  The franchisee shall 
 also make readily available, upon need being shown, the minimum 
 equipment necessary to make it possible to record programs at 
 remote locations with battery-operated portable equipment.  Need 
 within the meaning of this section must be determined by 
 subscriber petition.  The petition must contain the signatures 
 of at least ten percent of the subscribers of the system, but in 
 no case more than 500 nor fewer than 100 signatures. 

    (c) a provision establishing the minimum systemwide channel 
 capacity that the franchisee shall make available. Franchisees 
 subject to the requirement of this provision are not subject to 
 the requirements of subdivision 1, paragraph (bb). 

    (1) The provision must require the construction of a cable 
 system with a channel capacity, available for immediate or 
 potential use, equal to a minimum of 120 MHz of bandwidth, the 
 equivalent of 20 television broadcast channels. 

    (2) Systems that are already constructed pursuant to a 
 preexisting franchise requiring fewer than 120 MHz of bandwidth, 
 the equivalent of fewer than 20 television broadcast channels, 
 shall have until June 21, 1986, to increase the system's channel 
 capacity to a minimum of 120 MHz of bandwidth.  However, nothing 
 in this section precludes the parties to a franchise from 
 negotiating an agreement calling for an increase to a minimum of 
 120 MHz of bandwidth before June 21, 1986. 

    (3) For purposes of this section, a cable system with a 
 channel capacity, available for immediate or potential use, 
 equal to a minimum of 120 MHz of bandwidth means:  the provision 
 of a distribution system designed and constructed so that a 
 minimum of 120 MHz of bandwidth, the equivalent of 20 television 
 broadcast channels, can be put into use with only the addition 
 of the appropriate headend and subscriber terminal equipment. 

    (d) In Twin Cities metropolitan area franchises, a 
 provision designating the standard VHF channel 6 for uniform 
 regional channel usage as required in section 238.43. 

    Subd. 4.    Additional terms and conditions permitted.  
 A franchise may contain additional terms and conditions as the 
 municipality and the franchisee deem appropriate, provided the 
 additional terms and conditions are consistent with federal and 
 state law. 

    Subd. 5.    Reclassification of systems.  A franchise 
 must be amended by the franchising authority when the number of 
 subscribers served by the cable communications system in the 
 franchise area changes so as to result in reclassification of 
 the system under this section.  Amendments must include 
 provisions consistent with the requirements of that class of 
 cable communications systems. 

    HIST: 1985 c 285 s 23