This chapter shall be known and may be cited as the "Cecil County
Cable Service Franchising Act" (this "chapter"). The purposes of this
chapter are to: (i) establish the terms and conditions under which
a grantee occupying the public rights-of-way must operate within Cecil
County; (ii) provide for the payment of a franchise fee to the County
for use of the public rights-of-way and other costs associated with
administering and regulating cable service; and (iii) enhance the
County's authority to grant a cable service franchise while managing
the public rights-of-way.
As used in this chapter, the following terms shall have the
meanings indicated. Words not defined shall be given their common
and ordinary meaning.
ACCESS MANAGER
Any person, including a nonprofit community access corporation,
designated by the County to perform any or all of the following functions:
A.
Manage any necessary scheduling or allocation of any PEG or
institutional network channel capacity; and/or
B.
Program any PEG channel on the County's behalf.
AFFILIATE
Each person who falls into one or more of the following categories:
A.
Each person having, directly or indirectly, a controlling interest
in a grantee;
B.
Each person in which a grantee has, directly or indirectly,
a controlling interest; or
C.
Each person, directly or indirectly, controlling, controlled
by or under common management, common ownership or common control
with a grantee; provided that "affiliate" shall in no event mean any
creditor of a grantee solely by virtue of its status as a creditor
and which is not otherwise an affiliate by reason of owning, directly
or indirectly, a controlling interest in, being owned by or being
under common ownership, common management or common control with a
grantee.
AGREEMENT or FRANCHISE AGREEMENT
A binding contract granting a cable service franchise pursuant
to this chapter, and any amendments, exhibits or appendices thereto,
containing the specific provisions of the cable service franchise
granted, including references, specifications, requirements and other
related matters.
BASIC CABLE SERVICE
Any service tier, which includes the retransmission or delivery
of local television broadcast signals, origination channels and PEG
access channels. In the event that the definition of "basic cable
service" is amended by an act of the United States Congress, under
the Cable Act or otherwise, then the definition under this section
shall be amended to conform therewith.
CABLE ACT
The Cable Communications Policy Act of 1984, codified at
Title VI of the Communications Act of 1934, 47 U.S.C. §§ 521
through 573, as amended by the Cable Television Consumer Protection
and Competition Act of 1992 and the Telecommunications Act of 1996,
and as may be amended from time to time.
CABLE SERVICE
The one-way transmission to subscribers of video programming
or other programming services and subscriber interaction, if any,
which is required for the selection or use of such video programming
or other programming service.
CABLE SYSTEM or SYSTEM
A system of poles, wires, cables, fibers, lines, underground
conduits, converters, equipment, appliances and/or facilities designed,
constructed or used for the purpose of producing, receiving, amplifying,
transmitting and distributing radio, television, telephone, data and
two-way interactive impulses and energy and other information, related
services, products or matters to residential and commercial customers
of a grantee but such term does not include:
A.
A facility that serves only to retransmit the television signals
of one or more television broadcast stations;
B.
A facility that serves subscribers without using any public
rights-of-way;
C.
A facility of a common carrier which is subject, in whole or
in part, to the provisions of Chapter II of the Cable Act, except
that such facility shall be considered a cable system if such facility
is used in the transmission of video programming directly to subscribers,
unless the extent of such use is solely to provide interactive on-demand
services; or
D.
Any facilities of any electric utility used solely for operating
its electric utility system.
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A reference to a "cable system" in this chapter refers to any
part of such cable system. The foregoing definition of "cable system"
shall not be deemed to circumscribe or limit the ability of the grantee
to provide any other service over its facilities that may be permitted
under applicable law or the authority of the County to regulate or
franchise the activities of any such service to the maximum extent
permitted by law.
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CHANNEL
A portion of the electromagnetic frequency spectrum that
is used in a cable system and which is capable of delivering a television
channel (as a "television channel" is defined by the FCC).
CONTROL or CONTROLLING INTEREST
Actual working control or ownership of a system in whatever
manner exercised. A rebuttable presumption of the existence of control
or a controlling interest shall arise from the beneficial ownership,
directly or indirectly, by any person or entity (except underwriters
during the period in which they are offering securities to the public)
of 25% or more of a cable system or a franchise under which the system
is operated. A change in the control or controlling interest of any
entity which has control or a controlling interest in a grantee shall
constitute a change in the control or controlling interest of the
system under the same criteria. Control or a controlling interest,
as used herein, may be held simultaneously by more than one person
or entity.
CONVERTER
An electronic tuning device which converts cable service
signals into a signal that can be received and displayed on a subscriber's
television set. While not an explicit part of signal conversion, many
cable converter boxes include forms of descrambling to manage carrier-controlled
access restriction to various channels.
COUNTY
Cecil County, Maryland, a body politic and corporate under
the laws of the State of Maryland, and any agency or department thereof.
DIRECTOR OF ADMINISTRATION
The administrative head of the County, or his/her designee,
appointed by the County Executive.
[Amended 11-13-2012 by Ord. No. 2012-12]
FCC
The Federal Communications Commission and any legally appointed,
designated or elected agent or successor.
FRANCHISE
A nonexclusive authorization, or renewal thereof, evidenced
by a written franchise agreement, granted pursuant to this chapter
and applicable law, to construct, operate and maintain a cable system
and other services offered by a grantee from time to time within the
public rights-of-way to provide cable service within all or a specified
area of Cecil County. The term "franchise" includes a franchise agreement.
Any such authorization, in whatever form granted, shall not mean or
include any license or permit required for the privilege of transacting
and carrying on a business within Cecil County as required by applicable
law, or for attaching devices to poles or other structures, whether
owned by the County or a private entity, or for excavating or performing
other work in or along the public rights-of-way.
FRANCHISE AREA
The geographic area within Cecil County that a grantee is
authorized to serve by its franchise.
FRANCHISE FEE
The fee imposed by the County pursuant to §
A381-12 of this chapter. The term "franchise fee" does not include:
A.
Any tax, fee or assessment of general applicability (including
any such tax, fee or assessment imposed on both utilities and cable
operators);
B.
Capital costs that are required by a franchise agreement to
be incurred by the cable operator for public, educational or governmental
access facilities; or
C.
Requirements or charges incidental to the awarding or enforcing
of a franchise, including payments for bonds, security funds, letters
of credit, insurance, indemnification, penalties or liquidated damages.
GRANTEE
A person to whom or which a franchise is granted by the County
pursuant to this chapter, along with the lawful successors or assigns
of such person.
GROSS REVENUE
Any and all revenues or consideration of any kind or nature
that constitutes revenue within generally accepted accounting principles
(including, without limitation, cash and credits) actually received
by grantee, from the provision of cable service over the cable system
within the franchise area.
A.
Gross revenues include, by way of illustration and not limitation:
(1)
Monthly fees charged to subscribers for any basic, optional,
premium, per-channel, per-program service or any other cable service;
(2)
Installation, disconnection, reconnection, change-in-service
and late fees;
(3)
Leased access channel fees; and
(4)
Revenues from rentals or sales of converters and/or other subscriber
equipment.
B.
Gross revenues shall not include:
(1)
To the extent consistent with generally accepted accounting
principles, actual bad-debt write-offs;
(2)
Any taxes or fees, including the franchise fee, on services
furnished by a grantee which are imposed directly on any subscriber
or user by the state, the County or other governmental unit and which
are collected by the grantee on behalf of said governmental unit.
INITIAL SERVICE AREA
All areas in Cecil County that will receive cable service
initially, as set forth in a franchise agreement.
INSTALLATION
The connection of the system to subscribers' terminals,
and the provision of cable service.
LEASED ACCESS CHANNEL
Any channel designated or dedicated for use by persons unaffiliated
with a grantee.
NORMAL BUSINESS HOURS
Those hours during which businesses in Cecil County similar
to a grantee are open to serve customers.
NORMAL OPERATING CONDITIONS
Those service conditions which are within the control of
a grantee. Those conditions which are not within the control of a
grantee include, but are not limited to, natural disasters, civil
disturbances, power outages, telephone network outages and severe
or unusual weather conditions. Conditions which are ordinarily within
the control of a grantee include, but are not limited to, special
promotions, pay-per-view events, rate increases, regular peak or seasonal
demand periods and maintenance or upgrades of the cable system.
OUTAGE
The complete loss of picture, sound or both on multiple channels
from multiple programmers due to a common problem which affects multiple
customers on the system.
PEG ACCESS USER
A person authorized to administer or operate a PEG facility
and shall include the County and the access manager. If several persons
operate or share the same PEG facility, each person shall be considered
a separate PEG access user.
PERSON
Any natural person or any partnership, association, joint-stock
company, joint venture, domestic or foreign corporation, stock or
nonstock corporation, limited-liability company, professional limited-liability
company, an organization or entity of any kind or any lawful successor
thereto or transferee thereof. Such term does not include the County.
PUBLIC RIGHTS-OF-WAY
The surface of and all rights-of-way and the space above
and below any public street, road, highway, freeway, lane, path, public
way or place, sidewalk, alley, court, boulevard, parkway, bridge,
driveway, drive or easement now or hereafter held by the County for
the purpose of public travel and shall include other similar easements
or rights-of-way as shall be now held or hereafter held by the County
which shall, within their proper use and meaning, entitle a grantee
to the use thereof for the purposes of installing poles, wires, cable,
conductors, ducts, conduits, vaults, manholes, amplifiers, appliances,
attachments and other property as may be ordinarily necessary and
pertinent to a cable system.
SERVICE INTERRUPTION
The loss of either picture or sound or both, on one or more
channels, affecting at least one subscriber on the system.
STATE
The State of Maryland.
SUBSCRIBER
Any person lawfully receiving cable service provided by a
grantee by means of or in connection with the cable system, whether
or not a fee is paid for such cable service, including such persons
authorized to receive cable service without charge as provided for
in a franchise agreement.
Any franchise granted by the County shall grant to a grantee
the nonexclusive right and privilege to construct, erect, install,
maintain or operate: (i) a cable system in, upon, along, across, above,
over and under the public rights-of-way within Cecil County now in
existence and as may be created or established during any franchise
term; (ii) any poles, wires, cable, underground conduits, manholes
and other television conductors and fixtures necessary for the maintenance
and operation of a cable system to provide cable service; and (iii)
other services as may lawfully be allowed within a franchise area.
A franchise granted by the County does not expressly or implicitly
authorize a grantee to provide service to, or install a cable system
on, private property without the owner's consent (except for
use of compatible easements pursuant to the Cable Act) or to use publicly
or privately owned conduits or any other public property without a
separate agreement with the owner(s) thereof.
Franchise renewals shall be conducted in accordance with applicable
law, including, but not limited to, the Cable Act, as amended. The
County and a grantee, by mutual consent, may enter into renewal negotiations
at any time during the term of a franchise agreement.
All notices, reports or demands required to be given in writing
pursuant this chapter shall be delivered personally to the Director
of Administration or his/her designee, if to the County, and to the
person designated by the grantee in a franchise agreement, if to the
grantee. A grantee shall maintain with the County, throughout the
term of a franchise, an address for personal service and a central
office to address any issues relating to a franchise operating under
this chapter.