Prohibits exclusive multichannel video programming from entering into exclusive marketing agreements with the owner or manager of a residential multiple dwelling unit

BILL NUMBER:S2097

Title of bill

An act to amend the public service law, in relation to prohibiting providers of multichannel video programming from entering into exclusive marketing agreements with the owner or manager of a residential multiple dwelling unit

Purpose or general idea of bill

To prohibit any provider of multichannel video programming from entering into an exclusive marketing agreement with the owner, lessor or manager of a multiunit building.

Summary of specific provisions

This bill would amend the Public Service Law by adding a new subdivision (4) to Section 228 that would prohibit building owners, lessors, managers, or those managing or controlling a multiunit building, from entering into or renewing exclusive marketing agreements with regard to multichannel video programming services. The bill also defines the term "exclusive marketing agreement."

Justification

Existing New York law prohibits exclusive access agreements that allow a landlord to bar cable television companies from entering upon the property of a multiple dwelling unit (MDU), exacting payment to allow access, or discriminating against operators who wish access to offer cable television service. Current law, however, permits a landlord to enter an exclusive marketing agreement, which enables a cable television company to obtain the exclusive right to market video service in a residential building by, among other things, providing marketing materials in the leasing office or installing signage in common areas of the building.

This bill bars such exclusive marketing agreements so that residents of MDUs can enjoy the benefits of competition among cable television operators. The bill ensures that MDU residents receive equal access to information about their choice of cable provider, thereby allowing MDU residents to obtain the best product at the lowest price.

This bill does not abrogate existing contracts or prohibit bulk sales agreements. The Contract Clause likely voids any attempt to abrogate these previously entered into agreements. Bulk sales agreements, which often reduce the cost of cable television for MDU residents, would still be permitted. Further, the bill does not require landlords to provide access for marketing purposes, simply that any such access must be granted in a non-discriminatory fashion.

Prior legislative history

None.

Fiscal implications for state and local government

None.

Effective date

This act shall take effect immediately.