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3 <br />suit challenging the right of the city to allow private <br />companies to use homeowners' public utility ease- <br />ments and the authority of the city to grant rights -of- <br />way on public property to private companies. <br />• A rule proposed by the MCCB would assure cable <br />communications systems reasonable access to multi- <br />ple, dwelling units and manufactured home parks. <br />One draft of the rule, rewritten in light of the United <br />States Supreme Court decision in Loretto, contem- <br />plated the property owner being reimbursed for per- <br />mitting the installation of cable communications <br />facilities on or within the property owner's property in <br />an amount not to exceed one percent of the gross <br />subscriber revenues derived from the premises. The <br />hoard. at i is August 13 meeting. voted to delete the one <br />percent language in favor of compensation being <br />negotiated by the landlord and the cable company. <br />The next step is for the proposed rule to be heard by a <br />hearing examiner. <br />• A national conference. entitled Upgrading Cable <br />Systems: Renegotiating. Renewal. Rebuilding or Re- <br />franchising, is scheduled for October 11 -12, 1982, at <br />the Sheraton Inn and Conference Center in Madison, <br />Wisconsin. Additional information may be obtained <br />by contacting Barry Orton. associate professor of <br />telecommunications. 220 Lowell Hall, 610 Langdon <br />Street, Madison, Wisconsin 53706:608- 262 -2394. <br />• The Federal Communications Commission (FCC). <br />in a memorandum opinion and order released August <br />6. 1982, denied a petition filed by General Electric <br />' ablevision Corporation of Bartonville. Illinois. and <br />Peoria Heights. Illinois, requesting authorization to <br />pay the respective municipalities a ten- percent fran- <br />chise fee. In denying the petition. the commission <br />cited the company's willingness to pay the fees and the <br />company's statement that the fee would not impair <br />cable operations, but the commission, nevertheles <br />held that no showing had been made by either muniL:- <br />pality that such a fee "is appropriate in light of the <br />planned local regulatory program." <br />• The city of Minot, North Dakota, recently advertised <br />nationally the availability of a request for proposal to <br />provide cable communications service to the city. <br />Cable TV of Minot, a Telecommunications, Inc. subsid- <br />iary. has held the franchise for the past fifteen years. <br />The city sought to avoid possible antitrust actions by <br />advertising nationally for other applicants. The present <br />franchisee, Cable TV of Minot. has already submitted a <br />proposal. <br />• A Pawnee county court. Nebraska. has ruled that a <br />cable communications drop is taxable as personal <br />property. The dispute centered on whether a cable <br />drop should be treated as a fixture and thus taxable as <br />real property to the subscriberoras personal property <br />and taxable to the company. TV Transmission. Inc. <br />has indicated that an appeal will be made. A decision <br />Cable Communications Newsletter /September 1982 <br />from the Nebraska supreme court is not expected for <br />approximately one year. <br />• At itsJune 11, 1982, meeting the MCCB ruled that <br />a Mankato. Minnesota. firm is operating a cable <br />communications system and not a master antenna <br />system as the firm claimed. Mid - America Satellite TV, <br />Inc. has been offering six broadcast stations and five <br />satellite signals to an apartment complex in Mankato. <br />Under MCCB regulations and Minnesota Statutes § <br />238.02. a master antenna television system is excluded <br />from the definition of a cable communications system. <br />The MCCB's decision emphasized, however, that mas- <br />ter antenna systems are allowed to transmit only <br />broadcast or "non- satellite" signals. It is not clear at <br />this time what the consequences of the MCCB ruling <br />will be. The firm could eliminate the satellite signals <br />and thus conform to the MCCB's interpretation of a <br />master antenna system or the city of Mankato could <br />grant a cable communications franchise to Mid - <br />America. In the meantime, Mid - America is seeking - <br />judicial relief. <br />• The Illinois legislature recently passed a bill de- <br />signed to promote the wiring of condominium com- <br />plexes. H. 2284. 82nd Gen. Assembly, permits cable <br />communications systems to wire condominium com- <br />plexes on a majority vote of the individual condo- <br />minium owners. No compensation provision is in- <br />cluded. The bill was signed into law on August 19, <br />1982. <br />FRANCHISING TIPS <br />Our community has received three proposals to <br />provide cable communications service to the city. <br />Each proposal contains a variety of interactive <br />services. Some questions have been raised as to <br />whether these services will intrude on the sub- <br />scriber's privacy. What can we, as a city, do to <br />ensure that the subscriber's privacy is respected? <br />A. The issue of the subscriber's right of privacy has <br />become increasingly significant with the emerg- <br />ence of the state -of- the -art interactive systems <br />now being proposed and even constructed. Never <br />before has one entity been in such a position to <br />collect and maintain a rich data base on each <br />subscriber. This information could include what <br />goods we purchase, how we spend our money, and <br />even when we are away from our homes for <br />purposes of security monitoring. <br />There are two significant steps a franchising <br />authority should take to protect this right of <br />privacy. First, the request for proposal or invitation <br />for application should ask the applicant to clearly <br />describe its policy on privacy and to describe in <br />detail what steps. if any. the applicant will take to <br />'!tt <br />