4-280-010 Short title.

   This ordinance shall be known as the "Chicago Cable Communications Ordinance".

(Prior code § 113.1-1; Amend Coun. J. 12-9-92, p. 25465)

4-280-020 Purposes.

   The purpose of this chapter is to:

   A.   Provide for the franchising and regulation of cable systems within the City of Chicago; and

   B.   Provide for the payment of fees and other valuable consideration to the city for the use of city ways in the construction and operation of cable systems, and to compensate the city for other costs and activities associated therewith; and

   C.   Encourage the provision of advanced and competitive cable services on the widest possible basis to the businesses, institutions, and residents of the city; and

   D.   Provide for the development of cable systems as a means to improve communication between and among the citizens and public institutions of the city and as a vehicle for the participation of all segments of the city, including minorities and women, the economic opportunities created thereby, including ownership; and

   E.   Provide remedies and prescribe penalties for violation of this chapter and the franchise(s) granted hereunder.

(Prior code § 113.1-2; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 4-24-12, p. 23998, § 1)

ARTICLE II. DEFINITIONS (4-280-030 et seq.)

4-280-030 Definitions.

   For the purpose of this chapter, the following terms, phrases, words and their derivations shall have the meaning given herein, unless the context clearly indicates that another meaning is intended. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. If specific provisions of law referred to herein are subsequently renumbered, then the reference shall be read to refer to the renumbered provision. References to laws, ordinances, or regulations shall be interpreted broadly to cover government actions, however nominated, and include laws, ordinances, and regulations now in force or hereinafter enacted or amended.

   A.   "Basic service" means any service tier which includes the lawful retransmission of local television broadcast signals and any public, education, local government and leased access channels.

   B.   "Cable administrator" shall be defined as specified in section 4-280-380.

   C.   "Cable service" shall mean (a) the one-way transmission to subscribers of (i) video programming or (ii) other programming service, and (b) subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. For the purposes of this definition, "video programming is programming provided by, or generally considered comparable to programming provided by a television broadcast station; and "other programming service" is information that a cable operator makes available to all subscribers generally.

   D.   "Cable system means (i) a cable system, as defined in Title VI of the Federal Communications Act of 1934, 47 U.S.C. § 522(7) as amended, and any implementing regulations.

   E.   "Channel" is a band of frequencies, six megahertz wide in the electromagnetic spectrum capable of carrying either one audio-visual television signal and a few nonvideo signals or a large number of nonvideo signals.

   F.   "City" means the City of Chicago.

   G.   "Converter" means an electronic device which converts signals to a frequency susceptible to interference within the television receiver of a subscriber, and by an appropriate channel selector also permits a subscriber to view all signals delivered at designated dial locations.

   H.   "Council" means the city council of the City of Chicago.

   I.   "Federal Communications Commission" or "FCC" means the present federal agency of that name as constituted by the Communications Act of 1934, or any successor agency created by the United States Congress.

   J.   "Franchise" means the nonexclusive rights granted pursuant to this chapter to construct and operate a cable system along the public ways in the city, within specified areas in the city, and is not intended to include any license or permit required for the privilege of constructing, transacting and carrying on a business within the city as may be required by other ordinances and laws of the city.

   K.   "Franchise area" means that geographic portion of the city for which a franchise is granted under the authority of this chapter. If not otherwise stated in the franchise, the franchise area shall be the corporate limits of the city including a territory thereafter annexed to the city.

   L.   "Grantee" means the "person" granted a franchise pursuant to this chapter and its lawful and approved successor, transferee or assignee.

   M.   "Gross revenues" means any and all revenue derived directly or indirectly from the operation or use of all or part of a cable system franchised pursuant to this chapter by the grantee, its affiliates, subsidiaries, parents and any person in which the grantee has a financial interest to provide cable services within the city. Gross revenues include, by way of illustration and not limitation, monthly fees charged subscribers for cable services, any expanded tiers of cable service, optional premium or digital services; video on demand services; pay-per-view services; other optional pay services, installation, disconnection, reconnection and change-in-service fees, leased access channel fees, late fees and administrative fees, payments or other consideration received by grantee from programmers for carriage of programming on the cable system; revenues from rentals or sales of converters or other cable system equipment; advertising sales; revenues from program guides and electronic guides, additional outlet fees, franchise fees required under any franchise granted pursuant to this chapter, revenue from all interactive services to the extent they are considered cable services under applicable law; and revenues from home shopping and other revenue-sharing arrangements. Gross revenues shall not include : 1) any taxes on services furnished by a grantee herein imposed directly upon any subscriber or user by the state, local or other governmental unit and collected by a grantee on behalf of said governmental unit, provided that for purpose of this definition, franchise fee is not such a tax; 2) bad debt, provided, however, that all or part of any such bad debt that is written off but subsequently collected shall be included in gross revenues in the period collected.

   N.   "Mayor" means the mayor of the City of Chicago.

   O.   "Person" means an individual, firm, corporation, cooperative, association, trust, partnership, joint venture, combination or other legally recognized entity.

   P.   "Primary service area" or "PSA" means that portion of the franchise area within which a grantee shall:

      (1)   Provide service to subscribers at its standard charges for connection and service; and

      (2)   Complete construction and offer and be capable of delivering cable service to subscribers, in full accordance within this chapter and the franchise granted hereunder, within the timetable specified in the franchise.

   Q.   "Public way" means the surface, the air space above the surface and the area below the surface of any public street, highway, lane, path, alley, sidewalk, boulevard, drive, bridge, tunnel, park, parkways, waterways or other public right-of-way including public utility easements or rights-of-way and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the city which shall entitle the city and a grantee to the use thereof for the purpose of installing and maintaining a grantee's cable system.

   R.   "Schools" means all public and private tax- exempt educational institutions, including elementary and secondary schools, junior colleges, colleges and universities.

   S.   "Subscriber" means any person lawfully who receives residential cable service provided by a grantee's cable system and does not further distribute such service(s).

   T.   "User" means a person or organization utilizing a system channel or system equipment and facilities for purposes of production and/or transmission of material, as contrasted with receipt thereof in a subscriber capacity.

(Prior code § 113.1-3; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 5-2-01, p. 56849, § 1; Amend Coun. J. 4-24-12, p. 23998, § 1)

ARTICLE III. GRANT OF AUTHORITY (4-280-040 et seq.)

4-280-040 Franchise – Required.

   A.   No person shall construct, install, maintain or operate a cable system within the city, or within any other public property of the city, unless a franchise has first been obtained pursuant to : 1) this chapter and unless such franchise is in full force and effect; or 2) 220 ILCS 5/21-301. Such franchise shall not take the place of any other license or permit which may be legally required of a grantee in order to conduct such a business, or construct or install buildings, structures, facilities or equipment within the city.

   B.   A franchise shall not convey title, equitable or legal, in the public ways. The right granted is only the right to occupy those portions of the public way to which the city has the right to grant access, for the purposes and for the period stated in the franchise, and, subject to the limitations in this section and elsewhere in this chapter, the right may not be subdivided or subleased. Every franchise shall be interpreted in a manner that conforms to the requirements of this chapter and shall be deemed to include all the provisions that are required to be in a franchise under this chapter and all other applicable city code provisions, as if fully set forth in the franchise.

   C.   Nothing in this chapter nor any franchise granted pursuant to this chapter shall authorize the provision of any service other than cable services and shall in no way relieve the grantee of any obligation to obtain any authorizations, licenses or franchises to use the public ways to provide other non-cable services, or to comply with any requirements with respect to the use of the public ways or the provision of such non-cable services. The provisions of this chapter are not a bar to the imposition of similar, different or additional conditions with respect to the use of the public ways in connection with the provision of services other than cable services. Nothing in this chapter shall prevent grantee from providing other non-cable services to the extent consistent with applicable law.

(Prior code § 113.1-4; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 4-24-12, p. 23998, § 1)

4-280-050 Franchise – Initial applications.

   A.   After receiving applications for an initial cable system franchise, the council, after considering the legal, financial, technical and character qualifications of the applicants and the public interest, may grant one or more nonexclusive franchises creating a right to construct and operate a cable system within the public ways of the city; provided, however, no provision of this chapter shall be deemed or construed as to require the city to grant a franchise.

   B.   The application for an initial cable system franchise shall be submitted to the council or its designee on a written form included in the request for proposals furnished by the city and in accordance with procedures and schedules to be established by the city. The application form may request facts and information the city deems appropriate. Applications shall be accompanied by a nonrefundable application fee in an amount determined by the city, which amount shall be used by the city to offset direct expenses incurred in the franchising and evaluation procedures, including, but not limited to, staff time and consulting assistance.

   C.   An applicant (grantee) to whom the council grants an initial nonexclusive cable system franchise shall, in addition to the nonrefundable fee specified hereinabove, pay to the city at the time the grantee files the written instrument specified hereinafter, an amount to be determined by the cable administrator to be used to offset all direct, reasonable costs incurred by the city in granting the franchise not defrayed by fees forthcoming from the provisions of subsection B of this section.

(Prior code § 113.1-5; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 4-24-12, p. 23998, § 1)