PEG Jeopardy -

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State Cable
Is There
Money! Money!
PEG & Franchise Anything Good
on TV?
So You Want
to be a TV
90% Statistics
This entity pays to interconnect
your existing PEG programming
with a State authorization
The State Authorization Holder
The State Authorization Holder
• 220 ILCS 5/21-601(b), (c) and/or (d)
• Is programming in compatible form?
• Holder/incumbent cable provider
• Equivalent visual/audio quality
• Equivalent functionality
These buildings are entitled to
free cable service.
Public Buildings
Public Buildings
• 220 ILCS 5/22-501(f)
• “…shall provide a free service line drop and free
basic service to all current and future public
buildings within their footprint, including, but not
limited to, all local unit of government buildings,
public libraries, and public primary and secondary
schools, whether owned or leased by that local unit
of government ("eligible buildings"). Such service
shall be used in a manner consistent with the
government purpose for the eligible building and
shall not be resold.”
In most cases you will need this
piece of equipment to view your
PEG channel.
Converter Box
Converter Box
• 47 USC §543(b)(7)(A)(ii) – PEG programming
required by the franchise shall comprise a portion
of the “basic service tier”
• 220 ILCS 5/21-601(f) – PEG must be available on
basic service tier.
• Comcast – Converting most of analog tier to digital
and distributing small converter boxes to nondigital subscribers
• Comcast requests authority in franchise
agreements to place PEG channels on digital tier
• Other holders – Only available with a set top box.
This entity pays for service drops
up to 125 feet from its existing
Cable or Video Service Provider
Cable or Video Service Provider
•220 ILCS 5/22-601(e)(1); 47 C.F.R.
•If over 125 feet, Subscriber pays
the difference
The term referring to a cable or
video provider’s attempt to
select specific subdivisions or
areas in which to provide service.
Cherry Picking
Cherry Picking
•Cable Providers: Local franchise
governs areas of required service
•State Authorization Holders:
Permitted, subject to conditions.
State law prohibits denial of service
based on race or income. 220 ILCS
I can pay for studio renovations
and equipment with these fees.
PEG Fees
PEG Fees
•Cable Act: 47 USC §542(g)(2)(C)
sets limits on use
•Franchise Fees do not
include…capital costs which are
required by the franchise to be
incurred by the cable operator for
PEG access facilities
I can pay my camera person’s
salary with these fees.
General Fund/Franchise Fees/Service Provider Fees
General Fund/Franchise
Fees/Service Provider Fees
• General Fund: Unrestricted
• Franchise Fees: Cable Act sets no limit on
• Holder/Service Provider: 5% Fee—No
state law limit on use
• PEG Holder/Service Provider: 1% Fee—
No state law limit on use
This legislation passed last year
and allows you to determine if
you are getting all of your
Franchise Fees.
State Audit Law
State Audit Law
• Public Act 96-1422: Amends Local Government
Taxpayers’ Bill of Rights Act and Municipal and
Counties Codes to include Franchise Fees (not PEG)
• Defines terms and conditions for audit (2 year lookback, etc.)
• 65 ILCS 11-42-11.05 and 55 ILCS 5/5-1095.1 both
require local governments to provide a complete
list of addresses within their corporate limits and
annually update the list.
Some communities do not
charge a cable or video provider
these fees to work in the
municipal right of way
Permit Fees
Permit Fees
• Franchise agreement may require that
the municipality waive these fees
• Telecommunications utilities may have
right to operate in ROW without permit
• State law requires holders to have equal
treatment with franchisees
My Village cannot request that
this party pay for the cost of
franchise renewal
The Cable Provider
The Cable Provider
• 47 USC 542(g)(2)(D)
• Franchise fees do not include….requirements or
charges incidental to the awarding or enforcing of
the franchise, including payments for bonds,
security funds, letters of credit, insurance,
indemnification, penalties, or liquidated damages
• Narrowly construed by FCC to include only the
specifically enumerated categories of expenses
• All other costs may be taken as a credit against the
franchise fee
The person or body that makes
the rules related to channel
The Local Franchise Authority
The Local Franchise Authority
•47 USC §531
•220 ILCS 5/21-601(j)
•Cable operator does not have
editorial control
•PEG operator has control
When PEG channels are shared
with other governmental and/or
educational bodies, this should
be in place to define how the
channel is shared.
An Intergovernmental Agreement
An Intergovernmental
•Types of programming
•Entities who can program
•Is “public” access allowed?
•Who controls ?
This “for-profit” time cannot be
sold on a PEG channel.
Advertising Time
Advertising Time
• PEG is for “noncommercial purposes” under most
franchises and state law
• 220 ILCS 5/21-601(e): Advertising, underwriting, or
sponsorship recognition may be carried on the
channels for the purpose of funding public,
education, and government access related
• Time Warner Cable of New York City, a Div. of Time
Warner Entertainment Co., L.P. v. City of New York,
S.D.N.Y.1996, 943 F.Supp. 1357,
• Goldberg v. Cablevision Systems Corp.,
E.D.N.Y.1999, 69 F.Supp.2d 398
This establishes a requirement
for a minimum number of hours
of original programming.
Threshold Use Requirement
Threshold Use Requirement
•Cable Operators: a local franchise
•Holders of State Authorization: see
220 ILCS 5/21-601(h), (i); 40
This law protects the rights of
PEG channel users and applies in
some cases with PEG.
The First Amendment
The First Amendment
•Cable operator: No editorial
control except to prohibit obscene
•“Public” access not required
•Limited Public Forum: Rules
granting public use of PEG channel
must be content-neutral
This is needed to play music on
my PEG channel.
License and Consent
License and Consent
•License from performer of music:
ASCAP or BMI Master Agreements;
•Consent from owner of musical
work: author, purchaser, or
This is needed to include
someone on my program.
Publicity Rights
Publicity Rights
•Consent from person being
•Consent from person in a public
•Consent from person in a private
You may have liability for this if
you incorrectly or negatively
portray someone or something.
False Light
False Light
• A tort claim by someone who feels you
have attributed to him or her:
– views that he or she does not hold,
– placed the person before the public in
a highly offensive and untrue manner
• Related to tort of invasion of privacy
This would limit your ability to
advertise specific businesses in
your Shop Local program on your
PEG channel.
Commercial/Non Commercial Rule
Commercial/Non Commercial Rule
• State Non-Commercial requirements: 220 ILCS
5/21-601(e), allow advertising, underwriting,
or sponsorship recognition for the purpose of
funding public, education, and government
access related activities.
This document permits me to
use private property for filming
Production Location Agreement
Production Location Agreement
•Hours of use
•Type of production
•Changes to property
•Liability, insurance, indemnity
•Payment of fees
The number of counties in IL.
The number of units of local
government in the State of IL.
( Based on 2007 U.S. Census of State and Local Governments )
Percentage of cable companies
who meet the customer service
standards 100% of the time.
Number of cable TV headends in
the US today.
( Source: )
The year cable television
( Source: )
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