1983-07-20 Public Hearings and Regular Meeting

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0 E • Page 10 PROHIBITION OF COMMON CARRIER OR UTILITY REGULATION No common carrier or utility regulation. Section 614, which pro- hibits common carrier or utility regulation of .any service pro- vided over a cable system other than basic telephone service, will effectively prohibit the substitution of state regulatory requirements for franchise requirements. If traditional public utility regulation of cable systems is not restricted, a state public service commission (PSC) may prohibit or impose unreasona- ble conditions on the provision of two-way services over cable systems. Assertion of PSC jurisdiction over these services, as is occurring in several states, will mean that franchise require- ments governing the provision of two-way services are nullified and superseded. .Affect on leased access requirements. Section 614 does not affect provisions of franchise agreements requiring the set aside of system capacity for leased access or guaranteeing access to the system, including the institutional networks, on a nondis- criminatory basis. Section 614 prohibits the unilateral imposi- tion of common carrier or utility regulation, but does not pro- hibit the establishment of such regulation through franchise negotiations. EFFECTIVE DATE Grandfathering. Access, service, and facility requirements in existing franchises or those resulting from any RFP issued prior to October 1, 1982 are grandfathered. Required payments or fees to facilitate the use of access channels in existing franchises are not affected by the five percent cap on franchise fees. The regulation of basic service rates in communities for which dereg- ulation of rates is required is grandfathered under existing franchises for the longer of five years or one half the remaining life of the franchise. California law governing regulation of basic service rates is grandfathered for the longer of five years or the remaining life of the franchise. Other provisions. Other provisions of the bill, including the franchise renewal, privacy, and ownership provisions, take effect on the bill 's date of enactment (Sec. 4). Under section 2(b), however, franchise requirements and other laws which are not grandfathered by the bill and are in conflict with the bill's requirements may remain in effect until six months after enact- ment of the bill. •