Section 2, Subdivision 33a, defines "state-authorized video provider."

Section 3, subdivision 35, defines "video service."

Section 4 exempts state-authorized video providers from application of Chapter 238 (Cable Communications), unless provided for elsewhere.

Section 5 requires a cable communications system provider (CCSP) to use reasonable efforts when technically feasible to interconnect its system with a state-authorized video service provider for the purpose of providing programs over access channels. Specifies how interconnection may be accomplished, that negotiation must be in good faith, and that a CCSP may not withhold interconnection of access channels.

Section 6, subdivision 1, prohibits a cable communications system from placing logos, advertisements, promotions, or other marketing materials that favor or promote any cable communications system over other video service providers on access channels.

Subdivision 2 prohibits a CCSP from refusing to carry advertising requested by another provider of video service on advertising space owned and controlled by the provider of the cable or video service. Provides that a cable communications system ensures that no less than ten percent of the advertising space owned and controlled by the CCSP is made available to all video service providers and that it has a private right of action with regard to these requirements.

Section 7 provides that a cable communications system may not prohibit or limit a program, or a class/type of program presented over a leased channel or a channel available for public access, governmental, or educational purposes. The cable communications system, its officers, directors, and employees are not liable for penalties or damages arising from program content that is not originated from or produced by the cable communications system.

Section 8, subdivision 1, requires a person seeking to provide video service in the state after August 1, 2007, to file an application for authorization.

Subdivision 2 specifies the required content of an application for authorization.

Subdivision 3 provides that the Commission may grant a certificate if it determines that the applicant has demonstrated financial, technical, and managerial capability to provide the services described in the application. The Commission must consider the following:

(1) experience providing video service in this state and other states;

(2) personnel, staffing, equipment, and procedures, and the extent to which these are adequate to ensure compliance with state and federal law;

(3) civil, criminal, or administrative action taken against the applicant in connection with provision of video service;

(4) cash reserve and the extent to which it is adequate to meet startup costs and expenses;

(5) business or owner equity must be positive;

(6) plan and facilities for receiving and responding to customer inquiries and complaints, including a toll-free telephone number; and

(7) any other factors relevant to determining technical, managerial, and financial capability.

Subdivision 4 authorizes the Commission to require an application fee, not in excess of $2,000 and not in excess of the direct and indirect cost of processing an application. The Commission is required to review the fee annually and adjust it as necessary.

Subdivision 5 prohibits a state-authorized video service provider from operating in an area for which it has not received authorization. Specifies application requirements for an amended authorization on expansion or acquisition.

Subdivision 6 requires the Commission to make a determination on an application within 30 days of receipt.

Subdivision 7 provides that an authorization may be terminated by the state-authorized video provider by filing notice with the Commission.

Section 9, subdivision 1, requires a state-authorized video service provider to designate a sufficient amount of capacity on its communications network to allow the provision of an equal number of public, educational, and governmental access channels as provided by the existing CCSP, no later than 180 days after a request by the municipality receiving service.

Subdivision 2 requires a municipality to ensure that all transmissions, content, and programming to be transmitted by a state-authorized video service provider are provided in a manner that the provider is capable of accepting and transmitting over its network without requiring alteration in content and which is compatible with the technology or protocol the provider uses to deliver services.

Subdivision 3 provides that if a CCSP collects for and remits a monthly fee to a municipality for public, educational, and governmental access channels, a state-authorized video service provider must pay the fee at the same rate.

Section 10, subdivision 1, requires a state-authorized video service provider to pay a provider fee to the municipality for which it provides service. Specifies that the fee must be calculated as a percentage of gross revenues and the time of payment.

Subdivision 2 requires a state-authorized video service provider to pay the municipality a provider fee equal to the lesser of: (1) five percent of its gross revenues as collected for video services within the municipality less all costs, fees, and other mandatory payments or compensation that the provider is required to pay the municipality; or (2) the percentage of gross revenues paid to the municipality by a CCSP providing video service in the municipality.

Subdivision 3 defines "gross revenues."

Subdivision 4 permits a state-authorized video service provider to identify the video provider fee or a tax or monthly charge for public, educational, and governmental channels collected for a governmental unit as a separate line item on the subscriber's bill.

Section 11 prohibits a state-authorized video service provider from denying access to service to any group of subscribers because of the income, racial, or ethnic characteristics in the local subscriber area.

Section 12 requires a state-authorized video service provider to comply with customer service and emergency alert requirements consistent with specified federal regulations.

Section 13, subdivision 1, requires a state-authorized video service provider to implement a process to respond to inquiries made by a subscriber or municipality. Provides that if an inquiry is not resolved through this process, a subscriber or municipality may request to enter a confidential nonbinding mediation with the provider.

Subdivision 2 provides that if an inquiry is not resolved under subdivision 1, sections 238.50 to 238.64 may be enforced in an action brought exclusively in district court for an injunction or action to compel performance.

Section 14, subdivision 1, provides that a state-authorized video service provider is exclusively governed by the provisions of sections 238.50 to 238.64, except that the provisions of 238.02, subdivisions 3b, 33a, and 35; and 238.35 to 238.46 apply to a state-authorized provider.

Subdivision 2 provides that a municipality may require fee payments and the provisioning of public, educational, and governmental access channels only as specified in sections 238.50 to 238.64.

Section 15 provides that the provisions of sections 1 to 14 are severable and if one provision is held invalid, the invalidity does not affect the other provisions.

DWS:cs

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