HB 5446 — AN ACT CONCERNING FUNDING FOR COMMUNITY ACCESS TELEVISION, THE CONNECTICUT TELEVISION NETWORK AND LOW-INCOME INTERNET ACCESS AND TAXATION OF COMMUNICATIONS SERVICES PROVIDERS.
Last action — FILE NO. 372
-
✓Introduced
-
2In Committee
-
3Passed House
-
4Passed Senate
-
5To Executive
-
6Enacted
This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
460 added · 43 removed460 line(s) added, 43 removed.
House of Representatives General Assembly SubstituteFile Bill No.
5446372 February Session, 2024 ANSubstitute ACTHouse CONCERNINGBill FUNDINGNo. FOR COMMUNITY ACCESS TELEVISION, THE CONNECTICUT TELEVISION NETWORK AND LOW-INCOME INTERNET ACCESS AND TAXATION OF COMMUNICATIONS SERVICES PROVIDERS.
5446 House of Representatives, April 9, 2024 The Committee on Energy and Technology reported through REP.
STEINBERG of the 136th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.
AN ACT CONCERNING FUNDING FOR COMMUNITY ACCESS TELEVISION, THE CONNECTICUT TELEVISION NETWORK AND LOW-INCOME INTERNET ACCESS AND TAXATION OF COMMUNICATIONS SERVICES PROVIDERS.
(a) For purposes of this section;section:
(B)sHB5446 a/ certifiedFile telecommunicationsNo. provider, as defined in section 16-1, that holds a certificate of public convenience and necessity;
372 1 sHB5446 File No.
372 (B) a certified telecommunications provider, as defined in section 16-1, that holds a certificate of public convenience and necessity;
(F) a cellular mobile telephone carrier that provides cellular mobile LCOtelephone 1service ofpursuant 19to Substitutesection Bill16-250b; No.
5446 telephone service pursuant to section 16-250b;
(b) Each [person operating a community antenna television system under chapter 289 or a certified competitive video service pursuant to sections 16-331e to 16-331o, inclusive, and each person operating a business that provides one-way transmission to subscribers of video programming by satellite,] communications services provider shall pay asHB5446 quarterly/ taxFile upon the gross earnings from (1) [the lines, facilities, apparatus and auxiliary equipment in this state used for operating a community antenna television system] landline facilities used to provide communications services to persons in the state, or (2) the transmission [to subscribers in this state of video programming by satellite or by a certified competitive video service provider, as the case may be] of any communications services to persons in the state through LCO 2 of 19 Substitute Bill No.
5446372 wireless2 facilitiessHB5446 orFile throughNo. satellite transmission.
372 a quarterly tax upon the gross earnings from (1) [the lines, facilities, apparatus and auxiliary equipment in this state used for operating a community antenna television system] landline facilities used to provide communications services to persons in the state, or (2) the transmission [to subscribers in this state of video programming by satellite or by a certified competitive video service provider, as the case may be] of any communications services to persons in the state through wireless facilities or through satellite transmission.
(4) any charges for the purchase or rental of equipment, modems, phones or other devices that enable or facilitatesHB5446 theuse/ andenjoymentFile ofanyNo. communicationsservices;and (5) any other service charges or fees assessed by the communications services provider.
372 3 sHB5446 File No.
372 facilitate theuse andenjoyment ofany communicationsservices;and (5) any other service charges or fees assessed by the communications services provider.
LCOSec. 3 of 19 Substitute Bill No.
5446 Sec.
(1) In the case of a [person operating a community antenna television system] communications services provider, as defined in section 12-256, as amended by this act, that provides services to persons in the state through landline facilities, as defined in section 12-256, as amended by this act, such portion of the total gross earnings from the lines, facilities, apparatus and auxiliary equipment operated by it as is represented by the total number of miles of lines operated by such person within this statesHB5446 on/ theFile firstNo. day and on the last day of such quarterly period to the total number of miles of lines operated by such person both within and without the state on said dates, except as provided in subdivision (3) of this subsection;
(2)[in]Inthecase372 ofa [personoperating abusinessthat providesone- LCO 4 ofsHB5446 19File Substitute Bill No.
5446372 way transmission to subscribers of video programming by satellite] communications services provider, as defined in section 12-256, as amended by this act, that provides services to persons in the state by satellite or wireless facilities, as defined in section 12-256, as amended bythisact,suchportionofthetotalgrossearningsfromthetransmission to subscribers in this state as is represented by the total number of subscribers served by such person within this state on the first day and on the last day of such quarterly period to the total number of subscribersmiles servedof lines operated by such person both within and without the state on said dates;dates, except as provided in subdivision (3) of this subsection;
(2)[in]Inthecase ofa [personoperating abusinessthat providesone- way transmission to subscribers of video programming by satellite] communications services provider, as defined in section 12-256, as amended by this act, that provides services to persons in the state by satellite or wireless facilities, as defined in section 12-256, as amended bythisact,suchportionofthetotalgrossearningsfromthetransmission to subscribers in this state as is represented by the total number of subscribers served by such person within this state on the first day and on the last day of such quarterly period to the total number of subscribers served by such person both within and without the state on said dates;
and (2) [persons operating a business that provides one-way transmission to subscribers of video programming by satellite, five per cent of such gross earnings] any fee for community access operations funding assessed to such communications services provider, assHB5446 defined/ inFile sectionNo. 12-256, as amended by this act, by the Public Utilities Regulatory Authority pursuant to subsection (k) of section 16- 331a,asamendedbythisact,providedanysuchproviderdidnotcharge any community access fee on any bill to a subscriber of cable or video service or to any other end-user of services provided by such provider.
LCO372 5 ofsHB5446 19File Substitute Bill No.
5446372 Sec.as defined in section 12-256, as amended by this act, by the Public Utilities Regulatory Authority pursuant to subsection (k) of section 16- 331a,asamendedbythisact,providedanysuchproviderdidnotcharge any community access fee on any bill to a subscriber of cable or video service or to any other end-user of services provided by such provider.
Sec.
(e) For assessment years commencing on or after October 1, [1997] 2024, the provisions of this section, including informational reporting requirements imposed on owners, shall [also] apply [, to the extent provided in section 12-80b,] to property that is used both to render telecommunicationssHB5446 service/ subjectFile toNo. tax under chapter 219 and to render community antenna television service subject to tax under chapter 219.
[and372 that is required, under subsection (a) of section 12-80b, to be taxed as provided in this section.] LCO 6 ofsHB5446 19File Substitute Bill No.
5446372 Sec.telecommunications service subject to tax under chapter 219 and to render community antenna television service subject to tax under chapter 219.
[and that is required, under subsection (a) of section 12-80b, to be taxed as provided in this section.] Sec.
(2) a review of the organization's or thesHB5446 company's/ performanceFile inNo. providing community access programming;
372 7 sHB5446 File No.
372 the company's performance in providing community access programming;
(5) LCOthe 7organization's ofand 19the Substitutecompany's Billproposed No.budget, including expenses for salaries, consultants, attorneys, and other professionals;
5446 the organization's and the company's proposed budget, including expenses for salaries, consultants, attorneys, and other professionals;
(e)sHB5446 Each/ companyFile orNo. organization shall adopt for its community access programming a scheduling policy which encourages programming diversity.
372 8 sHB5446 File No.
372 (e) Each company or organization shall adopt for its community access programming a scheduling policy which encourages programming diversity.
(1) LCO[limiting] 8Limiting a program, except instructional access and governmental access programming, to thirteen weeks in any one time slot when a producer of 19another Substituteprogram Billrequests No.the same time slot, (2) procedures for resolving program scheduling conflicts, and (3) other measures which the company or organization deems appropriate.
Show all 269 changed lines (229 more)
5446 [limiting] Limiting a program, except instructional access and governmental access programming, to thirteen weeks in any one time slot when a producer of another program requests the same time slot, (2) procedures for resolving program scheduling conflicts, and (3) other measures which the company or organization deems appropriate.
[sharingsHB5446 any/ profitFile realized from such programming so utilized.] An organization providing community access operations shall consult with LCO 9 of 19 Substitute Bill No.
5446372 the9 companysHB5446 inFile theNo. franchise area prior to making such an agreement.
372 [sharing any profit realized from such programming so utilized.] An organization providing community access operations shall consult with the company in the franchise area prior to making such an agreement.
(i) (1) Each company and nonprofit organization providing communitysHB5446 access/ operationsFile shallNo. report annually to the authority on or before February fifteenth.
The372 authority shall adopt regulations, in LCO 10 ofsHB5446 19File Substitute Bill No.
5446372 accordancecommunity withaccess theoperations provisionsshall ofreport chapterannually 54, to specify the informationauthority [whichon shallor be]before thatFebruary isfifteenth. required in such report.
The authority shall adopt regulations, in accordance with the provisions of chapter 54, to specify the information [which shall be] that is required in such report.
(A) The criteria set forth in subsection (c) of this section, [(2)]sHB5446 (B)/ theFile level of public interest in community access operations in LCO 11 of 19 Substitute Bill No.
5446372 the11 franchisesHB5446 area,File [(3)]No. (C) the level of community need for educational access programming, [(4)] (D) the level and breadth of participation in communityaccessoperations, [(5)](E)theadequacyofexistingfacilities, equipment and training programs to meet the current and future needs of the franchise area, and [(6)] (F) any other factors determined to be relevant by the authority.
372 [(2)] (B) the level of public interest in community access operations in the franchise area, [(3)] (C) the level of community need for educational access programming, [(4)] (D) the level and breadth of participation in communityaccessoperations, [(5)](E)theadequacyofexistingfacilities, equipment and training programs to meet the current and future needs of the franchise area, and [(6)] (F) any other factors determined to be relevant by the authority.
The amount shall be assessedonceeachyearforeachenduserpremisesconnectedtoanopen video system, irrespective of the number of multichannel video programming distributorsprovidingdistributors providing programming over theopenvideo system.] (3) The authority shall assess a fee to each holder of a certificate of cable franchise authority or acertificate ofvideo franchise authority that provides video programming to a franchise area that existed on October 1, 2007.
(4) When the authority [issues, transfers or renews a certificate of public convenience and necessity to operate a community antenna television system] (A) approves the transfer of a certificate of video franchisesHB5446 authority/ orFile a certificate of cable franchise authority, or (B) LCO 12 of 19 Substitute Bill No.
5446372 approves12 ansHB5446 applicationFile underNo. section 16-47 for a merger, acquisition or change of control involving any holder of a certificate of cable franchise authority or certificate of video franchise authority, or involving a holding company that controls any such holder of a certificate of cable franchise authority or certificate of video franchise authority, the authority shall include in the [franchise agreement] final decision the amount that the company or organization responsible for community access operations shall receive for such operations.
372 franchise authority or a certificate of cable franchise authority, or (B) approves an application under section 16-47 for a merger, acquisition or change of control involving any holder of a certificate of cable franchise authority or certificate of video franchise authority, or involving a holding company that controls any such holder of a certificate of cable franchise authority or certificate of video franchise authority, the authority shall include in the [franchise agreement] final decision the amount that the company or organization responsible for community access operations shall receive for such operations.
Upon a determination that a franchise area is subject to effective competition, the provisions of thissectionshallapply tomultichannelvideoprogrammingdistributors operating in the franchise area, provided (1) where multichannel video programming distributors provide programming over a single open video system, the provisions of this section shall apply jointly and not separately to all such distributors providing programming on the same open video system, and (2) the provisions of subsection (k) of this section shall apply to multichannel video programming distributors whether or not such distributors operate in a franchise area subject to such effective competition.] LCOsHB5446 13/ ofFile 19 Substitute Bill No.
5446372 [(n)]13 (m)sHB5446 NoFile communityNo. antenna television company or nonprofit organization providing community access operations shall refuse to engage in good faith negotiation regarding interconnection of such operations with other community antenna television companies serving the same area.
372 [(n)] (m) No community antenna television company or nonprofit organization providing community access operations shall refuse to engage in good faith negotiation regarding interconnection of such operations with other community antenna television companies serving the same area.
The authority may investigate any dispute or complaint LCOsHB5446 14/ ofFile 19 Substitute Bill No.
5446372 arising14 undersHB5446 thisFile subsection.No.
372 arising under this subsection.
LCOsHB5446 15/ ofFile 19 Substitute Bill No.
5446372 (b)15 ThesHB5446 moneysFile inNo. said account shall be expended by the Public Utilities Regulatory Authority as follows:
372 (b) The moneys in said account shall be expended by the Public Utilities Regulatory Authority as follows:
Such tax for a quarterly period shall be remitted to the Department of Revenue Services, onor beforethelast dayofthemonthnext succeeding the quarterly period, on a form prescribed by the Commissioner of Revenue Services, which form shall be signed by the person performing LCOthe 16duties of 19treasurer Substituteor Billan No.authorized agent or officer.
5446For the dutiessHB5446 of/ treasurerFile orNo. an authorized agent or officer.
For372 the16 purposessHB5446 ofFile thisNo. section, gross earnings in this state shall be determined in a manner consistent with chapter 211.
372 purposes of this section, gross earnings in this state shall be determined in a manner consistent with chapter 211.
[(e) For purposes of this section, a holder of a certificate of cable franchise authority pursuant to section 16-331p shall be treated as a person operating a community antenna television system pursuant to this chapter and community antenna television service shall include service provided by a holder of a certificate of cable franchise authority pursuant to section 16-331p.] [(f)](e)The Comptroller shallshalldeposit deposit into thepublic, educationaland governmental programming and education technology investment account, establishedpursuant tothissection,thetotalofthetaximposed on [community antenna television service, video programming service by satellite and certified competitive video service] communications services providers, as defined in section 12-256, as amended by this act, pursuant to this section.
[(g)Whenthebalance ofsaidaccount reachesmorethanonehundred LCOfifty 17thousand dollars, the authority shall make a one-time transfer of 19sHB5446 Substitute/ BillFile No.
5446372 fifty17 thousandsHB5446 dollars,File theNo. authority shall make a one-time transfer of one hundred fifty thousand dollars to the Office of Legislative Management for expenses related to the allowance of interconnection of the Connecticut Television Network with a certified competitive video service provider, as defined in section 16-1, for the purpose of making the Connecticut Television Network available to such provider's customers.] Sec.8.(NEW)(Effective frompassage)TheOfficeofConsumerCounsel, in consultation with the Departments of Administrative Services, Energy and Environmental Protection and Social Services, shall develop a plan for a Connecticut Internet for All Program to provide financial assistance to low-income households for subscriptions to broadband Internet access service.
372 one hundred fifty thousand dollars to the Office of Legislative Management for expenses related to the allowance of interconnection of the Connecticut Television Network with a certified competitive video service provider, as defined in section 16-1, for the purpose of making the Connecticut Television Network available to such provider's customers.] Sec.8.(NEW)(Effective frompassage)TheOfficeofConsumerCounsel, in consultation with the Departments of Administrative Services, Energy and Environmental Protection and Social Services, shall develop a plan for a Connecticut Internet for All Program to provide financial assistance to low-income households for subscriptions to broadband Internet access service.
LCOSection 181 ofOctober 191, Substitute2024, Billand 12-256 applicable to quarterly periods commencing on and after October 1, 2024 sHB5446 / File No.
5446372 Section18 1sHB5446 OctoberFile 1,No. 2024, and 12-256 applicable to quarterly periods commencing on and after October 1, 2024 Sec.
372 Sec.
8 from passage New section October 1, 2024 Sec.
9 October 1, 2024 Repealer section Statement of Legislative Commissioners:
-LCO LCOsHB5446 19/ ofFile 19No.
372 19 sHB5446 File No.
372 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $ Department of Revenue Services GF - Revenue Up to 15 Up to 20 Gain million million Department of Revenue Services GF - Cost Up to None 150,000 Revenue Serv., Dept.;
Public PEGPETIA - See See Below See Below Utilities Regulatory Authority Below (PURA) Legislative Mgmt.
GF - Potential See Below See Below Revenue Loss Public Utilities Regulatory CC&PUCF - See See Below See Below Authority (PURA) Below Note:
GF=General Fund;
PEGPETIA=Public Educational and Governmental Programming an;
CC&PUCF=Consumer Counsel and Public Utility Control Fund Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $ Various Municipalities Grand List None See Below Expansion Explanation The bill, which expands the public service companies tax with regard to communications providers, results in the following fiscal impacts:
Sections 1 and 2 establish an expanded gross earnings tax on communications providers which results in an estimated General Fund revenue gain of up to $15 million in FY 25 and up to $20 million in FY 26.
This also results in a one-time cost of up to $150,000 to the Department of Revenue Services in FY 25 associated with programming updates to the CTax tax administration system and myconneCT online sHB5446 / File No.
372 20 sHB5446 File No.
372 portal, printing/mailing costs, and form modification.
Sections 3, 4 and 9 eliminate a current property tax exemption on certain personal property used for telecommunications and cable services.
This results in a grand list expansion beginning in FY 26.
Section 5 adjusts the way community access programming is funded and results in a revenue loss to the Public Utilities Regulatory Authority (PURA).
The bill requires PURA to use FY 15 assessment figures adjusted for inflation.
PURA is empowered to adjust assessments by up to 40% for each individual franchise, but now must make those adjustments statewide.
This adjustment results in a revenue loss to PURA.
Section 6 clarifies that the same $3.2 million that is segregated annually from the gross earnings tax on cable and satellite companies for the operations of CT-N currently will continue to be provided under theexpandedtax establishedinthebill.
This doesnotresult inany fiscal impact.
Section 7 repeals the existing 0.25% tax that funds the Public Educational and Governmental Programming and Educational Technology Investment Account (PEGPETIA) and replaces it with an expanded tax.
This results in an estimated net revenue loss of $200,000 in FY 25 and an estimated ongoing revenue gain of $1 million annually beginning in FY 26 to PEGPETIA.
2 Section 7 also eliminates a one-time transfer from PEGPETIA to the Office ofLegislative Management (OLM)iftheaccount reaches$150,000 resulting in a potential savings to the PEGPETIA and a corresponding potential revenue loss to OLM.
Section 8 requires the Office of the Consumer Counsel (OCC) to 1A grand list expansion results in a revenue gain to municipalities given a constant mill rate.
2The bill repeals the existing PEGPETIA tax on October 1, 2024, but the new tax does not start until January 1, 2025.
Thus, under the bill, there is no tax for the last calendar quarter of 2024.
sHB5446 / File No.
372 21 sHB5446 File No.
372 develop a Connecticut Internet for All Program plan in consultation with various state agencies and does not result in a fiscal impact as this can be completed within existing resources.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
sHB5446 / File No.
372 22 sHB5446 File No.
372 OLR Bill Analysis sHB 5446 AN ACT CONCERNING FUNDING FOR COMMUNITY ACCESS TELEVISION, THE CONNECTICUT TELEVISION NETWORK AND LOW-INCOME INTERNET ACCESS AND TAXATION OF COMMUNICATIONS SERVICES PROVIDERS.
SUMMARY This bill replaces the gross earnings tax on cable and satellite television companies with a broader gross earnings tax on communications providers.
Under the bill, these are any business providing services to end users in the state through landline or wireless facilities or satellite transmission maintained by any combination of telephone companies, telecommunications providers, cable companies, or cellular mobile telephone carriers.
The bill sets the tax at 5% of gross earnings, reduced by certain fees, including fees for community access programming (CAP) as established in the bill.
On October 1, 2024, it also repeals, the current 0.25% cable and satellite television companies gross earnings tax that funds the Public Educational and Governmental Programming and Educational Technology Investment Account (PEGPETIA) and, starting January 1, 2025, replaces it with a broader 0.25% gross earnings tax on communications providers to fund the account.
(In doing so, it eliminates the tax for the last quarter of 2024.) The bill also narrows the entities and activities that may be supported by the account.
The bill eliminates a partial property tax exemption for tangible personal property used to provide cable or telecommunications services currently subject to the gross earnings tax (i.e., from cable and satellite television companies).
Undercurrentlaw,CAPisprimarilyfundedthroughasubscriberfee, sHB5446 / File No.
372 23 sHB5446 File No.
372 set in statute at $5 per subscriber per year, adjusted for inflation.
The bill instead sets the total amount of CAP funding for the state at the FY 15 level, adjusted for inflation, and requires the Public Utilities Regulatory Authority (PURA) to assess the fee based on cable franchise areas.
The bill makes other changes related to CAPs, including on evaluation and reporting requirements and rights to record or transmit municipal meetings.
The bill also requires the Office of Consumer Counsel (OCC) to develop a plan for a Connecticut Internet for All program funded with revenue from the gross earnings tax on communications providers established under the bill.
Lastly, the bill makes minor, technical, and conforming changes.
EFFECTIVE DATE:
October 1, 2024, with gross earnings tax provisions applicable to quarterly periods starting on October 1, 2024, except that the Connecticut Internet for All program plan requirement is effective upon passage.
§§ 1 & 2 — GROSS EARNINGS TAX ON COMMUNICATIONS PROVIDERS Communications Providers The bill establishes a gross earnings tax on communications providers, which are businesses providing service to end users in the state over the following technologies:
1.
landline facilities (i.e., lines, facilities, and equipment located in, under, or over public streets or highways or in other areas, used to transmit or deliver communications services);
2.
wireless facilities (i.e., facilities used for satellite transmission or to transmit cellular mobile telephone or mobile telecommunications services);
and 3.
satellite transmission (under a PURA certificate or otherwise).
The tax applies to communications services delivered over landline sHB5446 / File No.
372 24 sHB5446 File No.
372 or wireless facilities, or satellite transmission, built, operated, or maintained by any combination of the following companies:
1.
telephone companies, 2.
certified telecommunications providers that hold a certificate of public convenience and necessity (CPCN), 3.
cable television companies, and 4.
cellular mobile carriers.
For cable companies, the bill specifically applies to (1) community antenna televisioncompanies(CATV),operating under aCPCN;and(2) certified competitive video service providers, operating under a certificate of video franchise authority (CVFA), and providers of noncable services (generally, telecommunications services provided by a cable company, excluding cable services).
(It is unclear whether any cable companies currently operate under a CPCN.
In practice, cable companies issued a franchise under a CPCN before the industry was deregulated now operate under a certificate of cable franchise authority (CCFA) to provide services in a discrete geographic region (e.g., their franchise).
Companies operating under CCFAs are not subject to the grossearningstaxunderthebill.Althoughin practice,manyofthesame companies also hold CVFAs, a statewide certificate.) The bill also exempts the Connecticut Education Network from having to pay the tax.
Tax Administration Under the bill, the gross earnings tax for communications services providers is a quarterly tax on their gross earnings from services delivered by landline facilities, wireless facilities, or satellite transmission to people in the state.
Like the current gross earnings tax, the bill’s tax (1) does not allow for deductions for operations related to commissions, rebates, or other payments, unless they arise from errors or overcharges, and (2) requires taxpayers to file returns quarterly with the Department of Revenue Services to provide information on their sHB5446 / File No.
372 25 sHB5446 File No.
372 business and gross earnings.
Gross Earnings Subject to the Tax Under the bill, the following gross earnings are taxable:
1.
gross receipts from communications service charges billed to a person in the state;
2.
receipts from subscriber line charges or other charges or assessment required by the Federal Communications Commission, or any other governmental fees or assessments itemized on a customer’s billing statement;
3.
installation or maintenance charges for wiring on a customer’s premises;
4.
charges to purchase or rent equipment, modems, phones, or other devices that enable or facilitate communications services;
and 5.
any other service chargesor feesassessedby thecommunications service provider.
Tax Calculation The bill sets the gross earnings tax rate at 5% of gross earnings.
Communications service providers may subtract the following from their tax liability:
1.
any assessment PURA makes on companies to pay for expenses related to PURA’s, OCC’s, and the Department of Energy and Environmental Protection’s (DEEP) Bureau of Energy and Technology operations, as well as certain Office of Policy and Management (OPM) broadband internet activities;
and 2.
any fee for community access operations funding assessed by PURA(see§5below)ifthecompanydidnotchargeacommunity access fee on a subscriber’s or other end-user’s bill.
(Presumably, this refers to an itemized charge on the bill.
Because sHB5446 / File No.
372 26 sHB5446 File No.
372 most communications services providers are not rate-regulated, it is not possible to determine whether a specific expense was passed through to a customer unless the company chooses to itemize the charge.) Apportioning Revenues in the State As is the case in current law, for companies that operate in multiple states, the bill’s tax applies to the portion of company’s gross earnings apportioned to Connecticut.
Generally, companies apportion their earnings by multiplying their total gross earnings by a percentage representing the portion of their total business that is attributable to Connecticut.
Under the bill, for cable companies operating under a CVFA and for companies providing service through satellite or wireless facilities, the apportionment percentage is the ratio of the company’s subscribers in Connecticut to its overall subscribers (in Connecticut and elsewhere).
For companies providing services through landline facilities, the apportionment percentage istheratio oftotalmilesoflinesthecompany operates in Connecticut to the total miles of lines it operates inside and outside Connecticut.
§§ 3, 4 & 9 — PROPERTY TAX EXEMPTION Current law provides a property tax exemption for tangible personal property for companies subject to the gross earnings tax (i.e., cable and satellite television companies).
The exemption applies to the part of the tangible personal property used to render telecommunications and cable services that are subject to the gross earnings tax.
The bill eliminates this exemption and makes conforming changes.
§ 5 — COMMUNITY ACCESS PROGRAMMING Existing law requires cable companies to provide facilities, equipment, and technical and managerial support to produce meaningful community access programming.
A community-based nonprofit organization may petition PURA to assume these responsibilities, and PURA must assign the responsibilities to the nonprofit organizationor tothecablecompany basedoncertaincriteria.
sHB5446 / File No.
372 27 sHB5446 File No.
372 Funding Under current law, community access programming is primarily funded through a subscriber fee, set in statute at $5 per subscriber per year,andadjusted for inflationbasedontheconsumerpriceindex (CPI).
The fee applies to subscribers of cable and telecommunications companies that offer video services under a CCFA or CVFA.
PURA may increase or decrease this amount by up to 40% based on the following criteria:
1.
recommendations from the advisory council and the municipalities in the franchise area;
2.
a review of the CAP provider’s performance and its experience providing community access programming;
3.
the CAP provider’s operating plan and proposed budget;
4.
the programming quality and quantity;
5.
the CAP provider’s procedures to ensure compliance with state and federal law;
6.
the level of public interest in community access operations in the franchise area;
7.
the level of community need for educational access programming;
8.
the level and breadth of participation in community access operations;
9.
the adequacy of existing facilities, equipment, and training programs to meet the franchise area’s current and future needs;
and 10.
any other criteria PURA deems relevant.
Under current law, thisamount isassessedonce per year for eachend user premises connected to the cable company’s system.
In practice, the subscriber fee is collected as a surcharge on the subscriber’s monthly sHB5446 / File No.
372 28 sHB5446 File No.
372 bill.
The bill instead sets a total amount of funding for community access operations statewide, beginning January 1, 2025.
This amount is equal to the total amount of funding that all CAP organizations and companies received from subscriber fees in FY 15, adjusted annually based on the changes in the CPI in the years following FY 15.
The bill specifies that the CPI information is as published by the U.S.
Department of Labor’s Bureau of Labor Statistics.
The bill maintains PURA’s authority to increase or decrease the funding, but applies it to the total statewide amount, rather than amounts for each franchise.
It requires PURA to consider the same criteria described above.
(It is unclear how PURA would apply this criteria to a statewide amount because the criteria is based on individual franchises and local conditions.) The bill requires PURA to assess a fee to each cable company providing services in a franchise area that existed on October 1, 2007, and requires the total annual fees PURA assesses to equal the amount described above (FY 15 total after adjustments).
If more than one cable company provides service in the same franchise area, PURA must divide the fee proportionately based on the company’s subscribers on January 1 of that calendar year.
For nonprofit CAP providers, PURA must require the cable company to pay the fee in installments of at least 25% directly to the CAP provider after the last day of each calendar quarter.
Underthebill,eachhouseholdunitinamultiunitresidentialbuilding or other facility connected to a cable company’s system that subscribes to cable programming is an individual subscriber for purposes of apportioning the fee, regardless of any existing joint or bulk billing arrangement.
The bill (1) requires PURA to ensure the accuracy of past and ongoing subscriber counting and (2) allows PURA to issue orders retroactively and prospectively correcting the subscriber count.
The billrequiresPURAtoincludetheamounttheCAPprovider must receive in any final decision on a cable company’s certificate transfer, sHB5446 / File No.
372 29 sHB5446 File No.
372 merger, acquisition, or other change in control.
Outreach By law, CAP providers must conduct outreach programs and promote their services.
Current law authorizes them to do so through several means, including broadcasting cross-channel video announcements and distributing information throughout their franchise area.
The bill instead requires them to do so in a way that best serves one or more relevant communities as PURA determines.
Right to Record Municipal Events The bill grants each CAP provider the right to record in person and transmit live any municipality’s or council of government’s public meeting or official event.
The bill authorizes PURA to investigate any dispute or complaint.
CAP Reviews, Evaluations, and Audits Current law allows PURA to review and evaluate the CAP provider’s provision of community access programming, but only during a franchise proceeding and according to a certain schedule.
Due to subsequent changesin thelawand theindustry,thisprovisionislargely obsolete (see BACKGROUND).
The bill instead allows PURA to do this review and evaluation on its own initiative or if OCC or any interested party petitions PURA for it.
Under current law, PURA must require nonprofit organizations responsible for community access programming to undergo an independent audit at the organization’s expense if the OCC or advisory council requests it and shows good cause.
The bill extends this requirement to cable companies responsible for community access programming.
Under current law, “good cause” may include an organization’s failure or refusal to perform certain functions (e.g., maintain facilities and equipment in proper repair).
Under the bill, “good cause” may also include failure or refusal to try to facilitate the local programming production and ensure that the programming is carried on a cable company’s basic service package.
sHB5446 / File No.
372 30 sHB5446 File No.
372 Information and Reporting Requirements Existing law requires nonprofits and cable companies responsible for community access programming to report annually to PURA by February 15.
The bill authorizes PURA to request additional information if needed for PURA to carry out its duties under the bill and existing law.
The bill requires PURA to report every five years, starting July 1, 2030, to the Energy and Technology Committee on the funding status for community access operations during the previous five years and the quantity of community access programming produced locally over the same period, as reported by each community access organization or cable company.
§ 6 — CONNECTICUT TELEVISION NETWORK (CT-N) Current law requires the comptroller to segregate $3.2 million annually from proceeds of the current gross earnings tax on cable and satellite companies to fund CT-N.
The bill instead sets this same requirement for the gross earnings tax on communications providers.
§ 7 — PEGPETIA Under current law, PEGPETIA is funded by a 0.25% gross earnings tax on cable and satellite television companies.
The bill repeals this tax and instead applies a 0.25% tax on communications providers starting January 1, 2025.
(Because the bill’s repeal of the current tax takes effect on October 1, 2024, but the new tax does not start until January 1, 2025, under the bill, there is no tax for the last quarter of 2024.) Companies determine their gross earnings in the same way as for the gross earnings tax described above.
The bill retains current law’s provisions on penalties and interest.
The bill also narrows the types of entities that may apply for funding from the account.
Under current law, 50% of PEGPETIA funds must be available to local and statewide cable advisory councils and public, educational, and governmental (PEG) programmers and studio operators.
Under the bill, these funds are only available to PEG studio sHB5446 / File No.
372 31 sHB5446 File No.
372 operators.
By law, operators must use these funds to subsidize capital and equipment costs related to producing and procuring PEG programming.
Under current law, the other 50% of PEGPETIA funds must be available to boards of education and other education entities for education technology initiatives.
The bill narrows the types of other education entities that may apply for this funding to primary or secondary education entities.
It also specifies that these funds must be grants and the funded initiatives must promote:
1.
digital equity, which is a condition in which all people and communities have the information technology capacity needed to participate insociety,democracy,andthestate’seconomy,and 2.
digital literacy, which is the ability to use information and communication technology to find, evaluate, create, and communicate information, using both cognitive and technical skills.
The bill requires PURA to consult with the Commission for Educational Technology, at the commission’s request, on any PEGPETIA grant application for an education technology initiative.
§ 8 — CONNECTICUT INTERNET FOR ALL PROGRAM PLAN The bill requires OCC to develop a plan for a Connecticut Internet for All program to provide financial assistance to low-income households for broadband internet subscriptions.
The bill requires the office to consult with the Department of Administrative Services, DEEP, and the Department of Social Services and allows these agencies to consult with other state agencies and broadband providers to develop the plan.
The plan must base the program’s funding on revenue from the gross earnings tax on communications providers established under the bill.
The bill requires OCC to submit the plan and its recommendations by November 15, 2024, to the governor, the OPM secretary, and the Energy and Technology and Finance, Revenue and Bonding sHB5446 / File No.
372 32 sHB5446 File No.
372 committees.
COMMITTEE ACTION Energy and Technology Committee Joint Favorable Yea 12 Nay 8 (03/21/2024) sHB5446 / File No.
372 33
Show all 269 changed rows (229 more)
Action History
-
FILE NO. 372
-
HOUSE CALENDAR NUMBER 247
-
FAV. RPT., TABLED FOR HOUSE CALENDAR
-
RPTD. OUT OF LCO
-
REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/08/24
-
FILED WITH LCO
-
Joint Favorable
-
PUBLIC HEARING 0314
-
REF. TO JOINT COMM. ON Energy and Technology
Sponsors
- MD Rahman · Primary
- Jaime S. Foster · Primary
- Anthony L. Nolan · Primary
- Josh Elliott · Primary
- Robin E. Comey · Primary
- Mary M. Mushinsky · Primary
- Eleni Kavros DeGraw · Primary
- Mike Demicco · Primary
- Aundre Bumgardner · Primary
- Melissa Osborne · Primary
- Kate Farrar · Primary
- Moira Rader · Primary
- Kevin Brown · Primary
- Jane M. Garibay · Primary
- Brandon Chafee · Primary
- David Michel · Primary
- Christopher Rosario · Primary
- Michelle L. Cook · Primary
- Bobby G. Gibson · Primary
- Gary A. Turco · Primary
- Sarah Keitt · Primary
- Chris Aniskovich · Primary
- Joshua M. Hall · Primary
- James Sanchez · Primary
Sponsorship breakdown
Export CSV (upgrade) →24 sponsors · 0 co-sponsors · 163 not signed on
Sponsors (24)
- MD Rahman Democratic
- Jaime S. Foster Democratic
- Anthony L. Nolan Democratic
- Josh Elliott Democratic
- Robin E. Comey Democratic
- Mary M. Mushinsky Democratic
- Eleni Kavros DeGraw Democratic
- Mike Demicco Democratic
- Aundre Bumgardner Democratic
- Melissa Osborne Democratic
- Kate Farrar Democratic
- Moira Rader Democratic
- Kevin Brown Democratic
- Jane M. Garibay Democratic
- Brandon Chafee Democratic
- David Michel
- Christopher Rosario Democratic
- Michelle L. Cook
- Bobby G. Gibson Democratic
- Gary A. Turco Democratic
- Sarah Keitt Democratic
- Chris Aniskovich Republican
- Joshua M. Hall Democratic
- James Sanchez Democratic
Co-sponsors (0)
None.
Not signed on (163)
163 members have not signed on to this bill.
Show all 163 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors HB 5446?
- HB 5446 is sponsored by MD Rahman (Democratic), Jaime S. Foster (Democratic), Anthony L. Nolan (Democratic), Josh Elliott (Democratic), Robin E. Comey (Democratic), Mary M. Mushinsky (Democratic), Eleni Kavros DeGraw (Democratic), Mike Demicco (Democratic), Aundre Bumgardner (Democratic), Melissa Osborne (Democratic), Kate Farrar (Democratic), Moira Rader (Democratic), Kevin Brown (Democratic), Jane M. Garibay (Democratic), Brandon Chafee (Democratic), David Michel, Christopher Rosario (Democratic), Michelle L. Cook, Bobby G. Gibson (Democratic), Gary A. Turco (Democratic), Sarah Keitt (Democratic), Chris Aniskovich (Republican), Joshua M. Hall (Democratic), and James Sanchez (Democratic).
- What is the current status of HB 5446?
- This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track HB 5446?
- Track HB 5446 free on One Click Politics — get push/email alerts when it moves.
Make your voice heard on HB 5446
Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.
Stay ahead of HB 5446
Last checked for changes 2 months ago · updated continuously
One Click Politics tracks every bill in Congress and all 50 states.
Track this bill →