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State Cable Law Money! Money! PEG & Franchise Fees Is There Anything Good on TV? So You Want to be a TV Producer? 90% Statistics

This entity pays to interconnect your existing PEG programming with a State authorization holder. The State Authorization Holder

220 ILCS 5/21-601(b), (c) and/or (d) Is programming in compatible form? Holder/incumbent cable provider interconnection Equivalent visual/audio quality Equivalent functionality

These buildings are entitled to free cable service. Public Buildings

220 ILCS 5/22-501(f) “…shall provide a free service line drop and free basic service to all current and future public buildings within their footprint, including, but not limited to, all local unit of government buildings, public libraries, and public primary and secondary schools, whether owned or leased by that local unit of government ("eligible buildings"). Such service shall be used in a manner consistent with the government purpose for the eligible building and shall not be resold.”

In most cases you will need this piece of equipment to view your PEG channel. Converter Box

47 USC §543(b)(7)(A)(ii) – PEG programming required by the franchise shall comprise a portion of the “basic service tier” 220 ILCS 5/21-601(f) – PEG must be available on basic service tier. Comcast – Converting most of analog tier to digital and distributing small converter boxes to non- digital subscribers Comcast requests authority in franchise agreements to place PEG channels on digital tier Other holders – Only available with a set top box.

This entity pays for service drops up to 125 feet from its existing system. Cable or Video Service Provider

220 ILCS 5/22-601(e)(1); 47 C.F.R. §76.309(C)(2)(i) If over 125 feet, Subscriber pays the difference

The term referring to a cable or video provider’s attempt to select specific subdivisions or areas in which to provide service. Cherry Picking

Cable Providers: Local franchise governs areas of required service State Authorization Holders: Permitted, subject to conditions. State law prohibits denial of service based on race or income. 220 ILCS 5/ (a)

I can pay for studio renovations and equipment with these fees. PEG Fees

Cable Act: 47 USC §542(g)(2)(C) sets limits on use Franchise Fees do not include…capital costs which are required by the franchise to be incurred by the cable operator for PEG access facilities

I can pay my camera person’s salary with these fees. General Fund/Franchise Fees/Service Provider Fees

General Fund: Unrestricted Franchise Fees: Cable Act sets no limit on use Holder/Service Provider: 5% Fee—No state law limit on use PEG Holder/Service Provider: 1% Fee— No state law limit on use

This legislation passed last year and allows you to determine if you are getting all of your Franchise Fees. State Audit Law

Public Act : Amends Local Government Taxpayers’ Bill of Rights Act and Municipal and Counties Codes to include Franchise Fees (not PEG) Defines terms and conditions for audit (2 year look- back, etc.) 65 ILCS and 55 ILCS 5/ both require local governments to provide a complete list of addresses within their corporate limits and annually update the list.

Some communities do not charge a cable or video provider these fees to work in the municipal right of way Permit Fees

Franchise agreement may require that the municipality waive these fees Telecommunications utilities may have right to operate in ROW without permit fees State law requires holders to have equal treatment with franchisees

My Village cannot request that this party pay for the cost of franchise renewal The Cable Provider

47 USC 542(g)(2)(D) Franchise fees do not include….requirements or charges incidental to the awarding or enforcing of the franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, penalties, or liquidated damages Narrowly construed by FCC to include only the specifically enumerated categories of expenses All other costs may be taken as a credit against the franchise fee

The person or body that makes the rules related to channel usage. The Local Franchise Authority

47 USC § ILCS 5/21-601(j) Cable operator does not have editorial control PEG operator has control

When PEG channels are shared with other governmental and/or educational bodies, this should be in place to define how the channel is shared. An Intergovernmental Agreement

Types of programming Schedule Entities who can program Is “public” access allowed? Who controls ?

This “for-profit” time cannot be sold on a PEG channel. Advertising Time

PEG is for “noncommercial purposes” under most franchises and state law 220 ILCS 5/21-601(e): Advertising, underwriting, or sponsorship recognition may be carried on the channels for the purpose of funding public, education, and government access related activities.) Time Warner Cable of New York City, a Div. of Time Warner Entertainment Co., L.P. v. City of New York, S.D.N.Y.1996, 943 F.Supp. 1357, Goldberg v. Cablevision Systems Corp., E.D.N.Y.1999, 69 F.Supp.2d 398

This establishes a requirement for a minimum number of hours of original programming. Threshold Use Requirement

Cable Operators: a local franchise issue Holders of State Authorization: see 220 ILCS 5/21-601(h), (i); 40 hours/week

This law protects the rights of PEG channel users and applies in some cases with PEG. The First Amendment

Cable operator: No editorial control except to prohibit obscene programming “Public” access not required Limited Public Forum: Rules granting public use of PEG channel must be content-neutral

This is needed to play music on my PEG channel. License and Consent

License from performer of music: ASCAP or BMI Master Agreements; see Consent from owner of musical work: author, purchaser, or administrator

This is needed to include someone on my program. Publicity Rights

Consent from person being interviewed Consent from person in a public place Consent from person in a private location

You may have liability for this if you incorrectly or negatively portray someone or something. False Light

A tort claim by someone who feels you have attributed to him or her: –views that he or she does not hold, and –placed the person before the public in a highly offensive and untrue manner Related to tort of invasion of privacy

This would limit your ability to advertise specific businesses in your Shop Local program on your PEG channel. Commercial/Non Commercial Rule

State Non-Commercial requirements: 220 ILCS 5/21-601(e), allow advertising, underwriting, or sponsorship recognition for the purpose of funding public, education, and government access related activities.

This document permits me to use private property for filming purposes. Production Location Agreement

Hours of use Type of production Changes to property Liability, insurance, indemnity Payment of fees

The number of counties in IL. 102

The number of units of local government in the State of IL. 6,994 ( Based on 2007 U.S. Census of State and Local Governments )

Percentage of cable companies who meet the customer service standards 100% of the time. 0%

Number of cable TV headends in the US today. 7,426 ( Source: )

The year cable television originated ( Source: )