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Cable Communications Newsletter /September 1982 2 4. prohibit municipalities from regulating rates for satellite - delivered programming and telecommun- ications services, such as institutional network services, two -way interactive services, and security services. 5. authorize the FCC to establish a reasonable ceiling for franchise fees paid to a municipality. Franchise - fees would be limited to cover only the cost of local regulation. Franchise fees would not be available for programming support or for general funds. ISSN 0734 -0958 Copyright ©1982 by Mason Publishi ngCotnpany All rights reserved. Cable Communications Newsletteris published monthly by Mason Publishing Company, a mem- ber of the Butterworth Publishing Group. Mailing address: 366 Wacouta Street. St. Paul. Minnesota 55101-1989. Subscription price is 575.00 for one year. EDITOR Adrian E. Herbst Herbst & Thue, Ltd. Attorneys at Law CONTRIBUTING EDITORS Gary R. Matz John F. Gibbs Ann C. Viitala Herbst & Thue. Ltd. Attorneys at Law PUBLISHER EDITOR Kathleen A. Prior Mason publications are designed to provide ac- curate and current information with regard to the subject matter covered. They are intended to help attorneys and other professionals maintain their professional competence. Publications are sold with the understanding that Mason is not engaged in rendering legal. accounting, or other professional advice. If legal services or other expert assistance is required, the services of a competent professional should be sought. Attor- neys using Mason publications in dealing with specific legal matters should also research orig- inal sources of authority. 6. require automatic franchise renewal provided t hat the company has substantially complied with the material terns of the franchise: provided that there has been no change in t he legal. technical, or financial qualifications ul'the company that would substantially impair the continued service: and provided that the services and facilities provided by the company are reasonable in light of the size. nature. needs, and interests of the community to be served. 7. prohibi1 the municipal ownershipofcablesystems, unless the city has acquired the system at fair - market value. Except fur the access channel ceiling. local fran- chises would not be grand fathered from the impact of the bill. Municipalities would have sixty days to bring the existing franchise into compliance. An amendment offered by Senator Howard W. Gannon. D -Nev., would have eliminated all federal, state. and local regulation of cable within five years. This was defeated by the Senate Continent Committee by an 11 to 4 vote. According to Senator I3arry Goldwater's office, R- Ariz., the sponsor of S. 2172. 97th Cong., 2d Sess. (1982), no date has been set for floor action. It is hoped. however. that the Senate will hear the bill after the August recess. REGIONAL BRIEFS ► The Minnesota Cable Comtiutnications Board (MCCB) ruled at its March 12. 1982. meeting that existing MCC[3 rules do not prohibit the use of sponsorships or advertisements on the state -man- dated access channels. The use of sponsorships or advertisements on these channels is now at the discretion of the municipality. Some believe that spon- sorships or advertisements offer a new source of revenue for nonprofit access corporations and other entities responsible for access programming. I. The state of Wisconsin recently enacted its first significant privacy legislation for cable communica- tions systems. Wisconsin Statutes § 134.43. among other things. requires a cable communications com- pany to obtain written consent of the subscriber prior to monitoring the subscriber's equipment. prior to releasing any information that may reasonably lead to the disclosure of any aspect of the subscriber's be- havior. and prior to conducting research that requires the response of a subscriber or any member of the subscriber's household. A Cook County Circuit Court has enjoined Omni - com of Illinois from constructing its cable system in Highland Park. Illinois. A local homeowner filed the