Skip to main content

Article 13-3 Definitions

This article is included in your selections.

For purposes of this chapter, the following words, abbreviations, and their derivations shall have the meanings given herein. Words not defined are given the meaning in Section 602 of the Cable Act, 47 U.S.C. Section 522, and, if none, their common and ordinary meaning. 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 words “must” or “shall” are mandatory and the word “may” is permissive.

“Access channel” shall mean one or more channels dedicated in whole or in part for local noncommercial programming which is set aside for educational use or governmental use without a charge by the licensee for channel usage and which is not originated by a cable company; provided, that such access programming shall not include:

1. The retransmission of local television broadcast signals; or

2. Programming produced by persons unaffiliated with the cable company under the provisions of Section 612 of the Cable Act.

“Applicant” means any person that applies for a license.

“Application” means a proposal to construct and/or operate a cable system within the Town, transfer a license, renew a license or modify a license. Beginning June 18, 2019, all license applications shall be submitted in the form of a uniform cable licensing agreement application and affidavit as adopted by the Council in accordance with A.R.S. § 9-1401 et seq. An application includes the initial proposal plus all subsequent amendments or supplements to the proposal and relevant correspondence.

“Basic cable service” or “basic service” means any service tier which includes the retransmission of local television broadcast signals.

“Cable Act” means the Cable Communications Policy Act of 1984, 47 U.S.C. Section 521 et seq., as amended.

“Cable service” means:

1. One-way transmission to subscribers of:

a. Video programming; or

b. Other programming service; and

2. Subscriber interaction, if any, which is required for the selection of such video programming or other programming service; and

3. Video services as defined in A.R.S. § 9-1401.

“Cable television system” or “cable system” means a facility consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within the Town. Such term does not include:

1. Facility that serves only to retransmit the television signals of one or more television broadcast stations;

2. A facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control or management, unless such facility uses or crosses (above or through) any public right-of-way;

3. A facility of a common carrier that is subject, in whole or part, to the provisions of Title II of the Communications Act of 1934, 47 U.S.C. Section 201 et seq., except that such facility shall be considered a cable system to the extent such facility is used in the transmission of video programming directly to subscribers; or

4. Any facility of any electric utility used solely for operating its electric utility systems. Furthermore, if there is a connection of any such exempt system to a licensed system such exemption shall cease.

“Cablecasting” means a nonbroadcast signal that originates within the facilities of the cable communications system.

“Change of service” means all requests by existing subscribers for modification to their cable service, such as additions or deletions of premium services, additional outlets, remote controls, FM service, etc. Such terms shall not include initial installation of basic cable service, total disconnection of basic cable service or service calls.

“Channel” means a portion of the electromagnetic frequency spectrum which is used in a cable system and is capable of delivering a television channel.

“Complaint” is a subscriber or citizen issue, presented in verbal or written form, to the licensee or the Town relating to any aspect of the licensee’s performance under this chapter.

“Control of licensee or applicant” means the legal or practical ability to direct the affairs of the licensee or applicant either directly or indirectly, whether by contractual agreement or majority ownership of an economic interest. In the case of a limited partnership, a change in limited partner interests shall not constitute a change in control where the limited partners have no power to participate in the management of the partnership, and the general partner retains full power.

“Council” means the Town Council of the Town of Fountain Hills, Arizona, or such representative person or entity as may be designated initially or at some future date to act on cable television matters.

“FCC” means the Federal Communications Commission or successor agency.

“Gross revenues” shall mean all cash, credits, property of any kind or nature, or other consideration, less related bad debts received directly or indirectly by a licensee, its affiliates, subsidiaries, parent and any person, firm or corporation in which a licensee has a financial interest or which has a financial interest in a licensee, arising from or attributable to the licensee’s operation of its cable television system within the Town, including, but not limited to:

1. Revenue from all charges for services provided to subscribers;

2. Revenue from all charges for the installation, removal, connection and reinstatement of equipment necessary for a subscriber to receive cable service;

3. Revenue from the production or transmission over the cable system of video programming by licensee including programming produced by its mobile facilities;

4. Any other income derived from the cable system.

Gross revenues shall not include taxes collected by licensee on behalf of any governmental authority; any surcharges for underground conversion of cable plant costs; any increase in the value of any stock, security or asset; the value of complimentary services provided to licensee’s employees and as required by this chapter or any license; and dividends or other distributions made in respect of any stock or securities, or value received by a licensee or any of its affiliates, subsidiaries or parent relating to licensee services or through cooperative advertising. Gross revenues shall not include cash, credit, property of any kind or nature or other consideration received by a licensee’s affiliates, subsidiaries, parent or any person, firm or corporation (“affiliate”) in which a licensee has a financial interest or which has financial interest in a licensee for any sales of advertising on the cable system, services to provide programming on the cable system, production services and/or telecommunication services which are cable services when such services are provided by an affiliate which has all the following characteristics: the affiliate is a separate legal entity, with separate employees, with separate financial records (which may be part of consolidated financial reporting records) and a separate mission; it makes payments to licensee which meet market standards for the services and industries involved, even if it does not offer and provide its services to persons other than licensee in the same industry as licensee; and it was established for valid business purposes and not with the intent and purpose of circumventing payment of license fees on gross revenues. Nothing contained in this exclusion from gross revenues shall be interpreted to exclude from gross revenues such cash, credit, property of any kind or nature or other consideration which would be considered the licensee’s gross revenues derived from the operation of the cable system under the Cable Act. Except for gross revenue from such sales of advertising on the cable system, services to provide programming on the cable system, production services or telecommunication services which are cable services received by such affiliate, this paragraph shall not exclude from gross revenues any source of gross revenues which an existing licensee itself is receiving at the time it is granted a license under this chapter, as revised April 6, 1995.

When a licensee (or an affiliate) holds one or more other cable television licenses in Maricopa County, Arizona, and receives revenues from subsection 3 of this definition, then revenue derived under subsection 3 of this definition shall be allocated pro rata to the Town based on the ratio of the number of subscribers of licensee (or an affiliate) in the Town to the number of subscribers of licensee (or an affiliate) in all the jurisdictions in Maricopa County, Arizona, in which licensee (or an affiliate) holds a cable license. If a licensee does not allocate its gross revenues derived under subsection 3 of this definition from such other jurisdictions then the number of subscribers in such jurisdictions shall not be included in the total number of subscribers in all other jurisdictions.

“Leased channel” or “leased access channel” means any channel designated in accordance with Section 612 of the Cable Act, 47 U.S.C. Section 532, for commercial use by persons unaffiliated with the licensee.

“License” means the nonexclusive right and authority granted by the Council, as described in this chapter, to construct, maintain and operate a cable television system through use of the public streets or public places in the Town. This term does not include any license or permit that may be required by the chapter or other laws, ordinances or regulations of the Council for the privilege of transacting and carrying on a business within the Town or for disturbing the surface of any street or public thoroughfare.

“License agreement” means a contract entered into in accordance with the provisions of this chapter between the Council and a licensee that sets forth the terms and conditions under which the license will be exercised.

“Licensee” means the person granted a license agreement by the Council and any lawful successor, transferee or assignee of said person.

“Malfunction” means an equipment or facility failure that results in the loss of a viewable signal on one or more channels. A “major malfunction” has occurred when five or more channels are affected.

“Outage” means an equipment or facility failure that results in a total loss of signal on all cable channels affecting three or more subscribers in a quarter section within any one hundred twenty (120) minute period.

“PEG access channel” or “PEG channel” means any channel set aside for educational use or governmental use without a charge by the licensee for channel usage.

“Person” means any individual, corporation, joint venture, association, syndicate, trust, partnership or any other business entity who holds or applies for a license from the Council.

“Property of licensee” means all property owned, installed or used within the Town by a licensee in the conduct of a cable television system business.

“School” means any public educational institution which is accredited by a nationally recognized institution, including primary and secondary schools, colleges and universities.

“Service call” shall result when service problems occur relating to:

1. Fewer than three complaints regarding total loss of signal on all channels within the same quarter section within one hundred twenty (120) minutes;

2. A degraded signal or picture on one or more channels; or

3. Property damage by licensee employees or authorized contractors.

“Standard drop” means that cable connection which requires no more than two hundred fifty (250) foot drop measured from the nearest point of subscriber’s home or place of business to the nearest active tap on the cable system, involving only one outlet and standard materials and does not involve a wallfish. In addition, a standard drop shall exclude custom installation work including specific subscriber requested work that requires nonstandard inventory or cable routing that requires construction methods exceeding reasonable underground or aerial work.

“Street” means the surface, the air space above the surface and the area below the surface of any public street, road, highway, path, sidewalk, alley, court, easement or other public right-of-way or public place now or hereafter held by the Town, County of Maricopa or State of Arizona for the purpose of public travel or public utilities.

“Subscriber” means any individual or entity legally receiving, for any purpose, cable services of the licensee’s cable television system including, but not limited to, the basic service, redistribution of television broadcast signals, radio signals, licensee’s original cablecasting, community programming, government and education access channels and other services such as leased channels, data and facsimile distribution, premium and pay per view channels and police, fire and similar public service communication.

“Town” means the Town of Fountain Hills, a municipal corporation of the State of Arizona, in its present boundaries, and its future boundaries as increased or decreased by law.

“Town Manager” means the Town Manager of Fountain Hills, Arizona, or his designee, as will be communicated to the licensee in writing, if and when such designation occurs. (19-18, Amended, 12/03/2019)