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C�u C BEET NG. _ <br />TO: ALL CLERKS <br />FROM: Joel Jamnik, Legislative Counsel <br />RE: Cable Television <br />1� <br />I CI i Y OF ORGivC� I <br />As you probably already know, President Reagan signed the Cable <br />Communications Policy Act of 1984 on October 30, 1984. It is <br />important to note, however, that the bill goes into effect on <br />December 29, 1984. <br />It is essential that cities exercise great caution before making any <br />changes in the provisions of existing franchises, particularly <br />changes requested by the city's cable operator. While the <br />legislation will eventually require some changes in the relationship <br />betweer, cities and cable operators, it has no immediate effect for - <br />existing franchises for two reasons. <br />First, the legislation is not effective until the end of December <br />arid, second, it grandfathers many provisions of existing franchises. <br />Ir, those areas in which changes are necessary, the changes are <br />gradually phased in over an extended period of time. The authority <br />to regulate basic service rates, for example, is grandfathered for <br />two years in existing franchises and franchise renewals. No changes <br />should be made without consulting the new legislation. The League <br />hopes to have a comprehensive guidebook on cable (published by the <br />National League of Cities) available some time before the <br />legislation s effective date. <br />In a relate, cable matter, the State Cable Communications Board rx1l— <br />be wlU*%ting comments for its December and January meetings <br />need for or desirability of a separate rule or set of rules <br />regulating the m'inicipally owned or operated cable television <br />systems. Last week the City of Windom received confirmation from the <br />board as the owner and operator of the system within the city by <br />means of granting the city variances from the existing rules. Not <br />surprisingly, private cable operators who do not like the idea of <br />municipally owned systems; raised the question whether separate rules <br />relating to municipal ownership of cabl? systems ought to be enacted. <br />If you wish to make formal or informal comments on this sub,)ect or if <br />your• City may be interested in a municip.•1 system, either upon <br />orlgl►,al construction or on renewal, please contact Stan Peskar or <br />myself at the League offices. <br />