01-14-1985 Council Packet - Laserfiche WebLink

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TO: STATE OF MINNESOTA DEPARTMENT OF ADMINISTRATION MINNESOTA CA13LE COMMUNICATIONS BOARD 500 RICE STREET, SAINT PAUL, MINNESOTA 55103 (612) 296.2545 MU NICIPA WTIES FROM: W.D. Donaldson, Executive Director December 27, 1984 OMER WP =JrDEC2 The Cable Communications Policy Act of 1984 (CCPA) becomes effective December 29, 1984. As major federal legislation that for the first time establishes the authority of federal, state and local governments in the franchising and oversight of cable communications systems, it provides benefits to the cable industry chiefly in rate deregulation and in reasonable assurance of franchise renewal. Certain provisions call for Federal Communications Commission rulemaking to be completed by the latter part of 1985. There are many ambiguities in the law that may only be resolved by court action. To many, the bill may seem to raise more questions then it answers. We can appreciate that many municipal officials are concerned about the effects of the act on their present and future cable franchises. Some cabled cities are already being asked to accept subscriber rate increases allowed under the new law, and questions about franchise terms and conditions, and the authority of municipalities, are being raised. Some organizations have released Interpretations prepared from their own perspectives, and legal challenges seeking clarification of certain issues have been Initiated. The Cable Board's staff has also analyzed the new legislation, focusing princlpaliy on its effect on Minnesota's cable statutes and the Cable Board's rules. The importance of this approach is obvious since these constitute the guides for the state's municipalities in the franchising and regulation of the cable systems that serve their citizens. While some elements of the act may not be altogether clear for some time, it Is our conclusion that It has little effect on Minnesota's state cable regulations or on the cable systems franchised and certified under terms of the state's provision. Nor do we expect significant change in future franchising and franchise renewal procedures undertaken by Minnesota municipalities. It appears at this point that the major effect of the new legislation will be in the degree of rate regulation and program selection control franchising authorities will be permitted to execute. Existing franchising procedures and provisions will remain essentially the same as now. Any minor changes or fine tuning may come later. The general rule can be considered to be "business as usual" in Minnesota. There are reasons for this ongoing stability under the new federal low in our state. Minnesota in 1972 created a shared system of cable regulation and development through which state - AN EQUAL OPPORTUNITY EMPLOYER .V ..