An Act To Create the Cable Television Franchise Board
Maine Legislature, Session 121, LD 0947
Committee: Utilities and Energy
Sponsors: GLYNN, BLAIS, GERZOFSKY, SUSLOVIC, TWOMEY
Amends: 5 MRSA §12004-G, 30-A MRSA §3008

Legislative Document 
No. 947 
H.P.704 
House of Representatives, February 25, 2003 
An Act To Create the Cable Television Franchise Board 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative GLYNN of South Portland. 
Cosponsored by Senator BLAIS of Kennebec and 
11l~ 
1?1·711d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: GERZOFSKY of Brunswick, SUSLOVIC of Portland, TWOMEY of 
Biddeford. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §12004-G, sub-§5-A is enacted to read: 
5-A. 
Cable 
EX,Qenses 
MRSA 
Cable 
Television 
Only 
c. 226 
Tel~vision 
Franchise 
Board 
Sec. 2. 30-A MRSA §3008. sub-§5, as amended by PL 1989, c. 6; 
c. 9, §2; c. 104, Pt. C, §§8 and 10, is further amended to read: 
5. 
Franchise 
agreements 
or 
contracts. 
The 
State 
specifically authorizes municipal officers pursuant to ordinances 
but subject to the ,Qrovisions of Title 10, cha,Qter 226 and any 
rules ado,Qted by the Cable Television Franchise Board pursuant to 
that chapter to contract on such terms and conditions and impose 
such fees 
as are in the best interests of the municipality, 
including the grant of exclusive or nonexclusive franchises for a 
period not to exceed 15 years, for the placing and maintenance of 
cable television systems 
and appurtenances, 
or parts thereof, 
along public ways and including contracts with cable television 
companies wa;i"ea that receive the services of television signal 
transmission offered by any public utilities using public ways 
for such transmission. 
No public utility may be required to 
contract with the municipal officers under this subsection. 
Each 
franchise must contain the following provisions: 
A. 
The area or areas to be served; 
B. 
A line extension policy; 
C. 
A provision for 
renewal, 
the term of which may not 
exceed 15 years; 
D. 
Procedures 
for 
the 
investigation 
and 
resolution 
of 
complaints by the cable television company; and 
E. 
Any other terms and conditions that are in the best 
interests of the municipality. 
Sec.3. 10 MRSA c. 226 is enacted to read: 
CHAPTER 226 
CABLE TELEVISION REGULATION 
§1499-A. 
Cab1e Te1evision Franchise Board 
• 
• 
1. 
Board 
established. 
The 
Cable 
Television 
Franchise 
Board, referred to in this chapter as "the board," is established 
to oversee 
and regulate 
the 
franchising of cable television 
companies. 
2. 
Membership; 
appointment. 
The 
board consists of the 
following 7 members, appointed by the Governor and subject to 
review by the joint standing committee of the Legislature having 
jurisdiction over utilities and to confirmation by the Senate: 
A. 
Two members of the public; 
B. 
One member representing the education community; 
c. 
One member representing a statewide community television 
association; 
D. 
One member representing a statewide municipal government 
organization; 
E. 
One member representing municipalities with populations 
greater than 15,000; and 
F. 
One member representing municipalities with populations 
less than 15,000. 
3. 
Terms. 
Members of the board serve 3-year terms, except 
that, initially 3 members serve 3-year terms, 
members serve 
2-year terms and 2 members to serve I-year terms. 
A member is 
eligible for reappointment upon completion of any term on the 
board. 
A member may continue to serve beyond the end of the 
member's term until a successor is appointed and gualified. 
Any 
vacancy must be filled by appointment for the unexpired portion 
of the term. 
4. 
Chair. 
The board annually shall select a chair from 
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chair, but no less than once every 3 months. 
5. 
Compensation. 
Members of the board receive compensation 
as provided in Title 5, section 12004-G, subsection 5-A. 
6. 
Powers and duties. 
The board shall: 
A. 
Establish by rule a uniform procedure for municipalities 
to 
follow 
in 
granting 
franchises 
to 
cable 
television 
companies: 
B. 
Adopt and enforce rules establishing standards for the 
granting, 
renewal 
and 
transfer 
of 
cable 
television 
franchises; 
C. 
Provide 
technical 
assistance 
and 
legal 
guidance 
to 
municipalities regarding cable television franchising; 
D. 
Review and approve all cable television applications for 
a franchise or a renewal or transfer of a franchise; and 
E. 
License 
cable 
television 
companies 
providing 
cable 
television 
services 
through 
franchise 
agreements 
with 
municipalities in this State. 
7. 
Rules. 
Rules adopted by the board are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
8. 
Review; 
standards. 
Each 
cable 
television 
company 
applying for 
a 
franchise or for 
a 
renewal or transfer of 
a 
franchise 
after the effective date of this subsection shall 
submit the application to the board for review and approval prior 
to submission to a municipality. 
The board, in its review, shall 
evaluate at least the following: 
A. 
The financial soundness and stability of the applicant 
and the soundness of the application; 
B. 
The proposed service offerings to customers, including 
the number of channels and the ability and capacity of the 
cable 
television 
system 
to 
offer 
additional 
and 
varied 
services in the future, especially the ability to provide 
public, 
educational 
and 
government 
access 
channels 
and 
capital funding to support the equipment requirements of 
such channels; 
C. The applicant's commitment to construction and in-service 
schedules and appropriate bonding insurance; 
D. The experience and ability of the applicant to run and 
manage a cable television system; 
E. The tariff of rates proposed to be charged to customers; 
F. 
Proposed 
consumer 
policies, 
including 
policies 
on 
addressing complaints and service problems; 
G. The availability of the proposed service and the maximum 
number of residences that will be served; 
• 
H. 
The technical qualifications of the applicant and the 
quality of the engineering design and materials to be used 
in the system; 
I. The compatibility of the system with neighboring systems 
that would allow for possible future interconnection; and 
J. The proposed franchise fee and schedule of payments. 
9. 
Prohibition. 
A cable television company may not: 
A. 
After January 1, 2004, apply for or have a franchise 
agreement 
with 
any 
municipality 
unless 
licensed 
by 
the 
board; or 
B. 
Apply for a franchise or for a renewal or transfer of a 
franchise after the effective date of this paragraph unless 
the company complies with the provisions of this section and 
any rules adopted by the board. 
A cable television company that violates this subsection commits 
a civil violation for which a forfeiture of up to $5,000 may be 
adjudged. 
10. 
Staff. 
The board shall appoint an executive director 
and 
such 
other 
staff 
as 
the 
board 
determines 
necessary. 
Employees of the board are subject to the Civil Service Law. 
11. 
Funding established. 
Every cable television company 
licensed 
by 
the 
board 
with 
intrastate 
operating 
revenues 
exceeding $1,000,000, 
as 
shown 
in the 
company's 
most 
recent 
annual report or based on such other information as the board may 
require, is subject to an assessment based on its intrastate 
operating revenues to produce no more than $200,000 in revenues 
annually. 
The 
board shall determine 
the 
assessment 
annually 
prior 
to 
May 
1st 
by 
allocating the 
total 
assessment 
among 
licensees 
in 
the 
same 
proportion 
as 
each 
licensee's 
total 
intrastate 
operating 
revenues 
is 
to 
the 
total 
intrastate 
operating revenues of all licensees in the previous calendar 
year. 
All 
funds 
derived 
from 
assessments 
levied under 
this 
subsection must be deposited with the Treasurer of State in a 
separate account to be known as the Cable Television Franchise 
Oversight 
Fund. 
The 
board 
shall 
submit 
its 
budget 
recommendations as part of the unified current services budget 
legislation in accordance with Title 5, sections 1663 to 1666. 
The board may use the revenues provided in accordance with this 
subsection to fund employee positions and to defray the costs 
incurred by the commission pursuant to this section, including 
administrative expenses, consulting fees and all other reasonable 
costs incurred to administer this section. 
The money in the fund 
may be invested as provided by law with the earnings credited to 
the fund. 
Funds not expended at the end of a fiscal year do not 
lapse but are carried forward for the purposes specified in this 
subsection. 
SUMMARY 
This bill creates the Cable Television Franchise Oversight 
Board to license cable television companies and to oversee and 
regulate 
the 
cable 
television 
franchising 
process 
between 
municipalities and cable television companies. 
The board has 7 
members appointed by the Governor. 
The board has rulemaking and 
regulatory 
authority, 
is 
authorized 
to 
hire 
staff 
and 
is 
authorized to assess 
cable television companies 
to 
fund its 
operations. 
..