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Cable Television Theft of Service Prevention Amendment Act of 2001
Bill 14-40

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Councilmember Vincent B. Orange, Sr.

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

Councilmember Vincent B. Orange, Sr. introduced the following bill, which was referred to the Committee on Economic Development.

To amend the Cable Television Communications Act of 1981 to enhance criminal penalties and civil liability for the theft of cable television services and for the manufacturing, use, selling of devices designed to descramble encoded signals of cable television companies.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Cable Television Theft of Service Prevention Amendment Act of 1999".

Sec. 2. Section 49(a) The Cable Television Communications Act of 1981, effective March 16, 1988 (D.C. Law 7-93; D.C. Code §43-1848.1), is amended as follows:

(a) Section 49 (D.C. Code § 43-1848.1) is amended to read as follows:

"Sec. 49(a). Theft of Cable Television Service; criminal penalties; civil liability.

      "(a) For the purpose of this section, the term:

"(1) "Cable television service" means any audio, including telephonic, video, data, including internet, or other service provided for payment by a cable television company over its cable television system facilities, including coaxial cable, wire, fiber optic, or similar transmission services used in connection with any cable television system.

"(2) "Cable Television company" or "company" means any franchised company that is operated or intended to be operated to perform the service of receiving and amplifying television and other video programming and other video and non-video signals and services, and redistributing such programming and signals by wire, cable, fiber, or other means for accomplishing such redistribution, to members of the public who subscribe to such service, or distributing other signals and services through such company's cable television system facilities including poles, wires, cables, fiber, conduits, or other property used in providing cable television service an other services to subscribers and customers.

"(3) "Knowingly" means that the person knows or has reason to know that the action taken is in violation of the law. For any person who violates subsection (b)(4) or (b)(5) of the section, "knowingly" means that the person knows or has reason to know that the action taken is in violation of the law or that the device at issue is intended to be used, and its design is primarily used, to obtain any unauthorized cable television services from a company providing such services.

"(4) "Person" means any individual, firm, partnership, corporation, company, association, or other legal entity.

"(5) "Device" means a device other than a nondescrambling channel frequency converter accepted by the Federal Communications Commission.

"(6) "Assist" includes the manufacture, distribution, provision, or connection, of equipment intended by the manufacturer, distributor, provider, or connector for unauthorized reception of any communications service offered by a cable television company in violation of this section.

"(b) No person shall:

"(1) Obtain, intercept or receive, or attempt to obtain, intercept or receive cable television services from a cable television company by device, converter, decoder, trick, artifice, deception or other means with the intent or purpose to deprive such company of an or all lawful compensation for rendering each type of service obtained;

"(2) Assist or instruct any other person or persons in obtaining, intercepting or receiving, or attempting to obtain, intercept or receive any cable television service, by any means whatsoever, without payment of all lawful compensation to the cable television company for rendering each type of service obtained;

"(3) Make or maintain a connection or connections, whether physical, electrical, mechanical, acoustical or by other means, tamper with or otherwise interfere with any cables, wires, components, modems, lock boxes, pedestals, or other devices or equipment of the cable television company used for the distribution of cable television service, with the intent or purpose to deprive such company of any or all lawful compensation, and without express authority from the cable television company;

"(4) Make or maintain any modification or alteration to any device, equipment or apparatus or remove, disconnect or sell any device, equipment or apparatus installed by the cable television company without the authorization of a cable television company for the purpose of intercepting, descrambling, decoding or receiving any program or other service carried by such company which such person is not authorized by such company to receive, or for the purpose of selling any such device, equipment, or apparatus; or

"(5) Make, manufacture, import into the District of Columbia, assemble, transfer, distribute, promote, sell, lease, lend, offer, own, possess, or possess for sale, advertise or publish for sale or lease any device, equipment or apparatus, or any instructions, information, plan or kit for such device, equipment or apparatus, or for a printed circuit designed in whole or in part to intercept, decode, descramble or otherwise make intelligible any encoded, encrypted, scrambled or other nonstandard signal distributed by a cable television company.

"(c)(1) Except as provided in paragraphs (2) - (4) of this subsection, a person who violates any provision of this section is guilty of a misdemeanor and on conviction shall be subject to a fine not exceeding $1000 or imprisonment not exceeding 6 months or both.

"(2) Except as provided in paragraphs (3) - (4) of this subsection, a person who violates any provision of this section where the value of the service obtained or issued is $250 or more, or a person convicted of a second or subsequent violation of any provision of this section, is guilty of a misdemeanor and on conviction shall be subject to a fine not exceeding $2,500 or imprisonment not exceeding 1 year, or both.

"(3) A person who commits an act prohibited by any provision of this section for payment or offer of payment, or with intent to profit from any consideration received or expected is less than $20,000, is guilty of a felony and on conviction shall be subject to a fine of not more than $5,000 or imprisonment not exceeding 5 years, or both.

"(4) A person who commits an act prohibited by any provision of this section for payment or offer of payment, or with intent to profit from any consideration received or expected, where the value of the services, equipment, credit or benefit received or expected is $20,000 or more, is guilty of a felony and on conviction shall be subject to a fine not exceeding the greater of $10,000 or three times the value of the theft and imprisonment not exceeding 10 years, or both.

"(5) Each day a person is in violation of the section constitutes a separate offense, or each device at issue pursuant to this section constitutes a separate offense, whichever is the greater number;

"(6) Where a single connection, whether physical, electrical, mechanical, or acoustical, or modification or alteration to any device, equipment, or apparatus installed by the cable television company without the authorization of the cable television, is made or maintained for the purpose of allowing for the reception of cable television service by multiple individuals without express authority from the cable television company, each reception so made constitutes a separate offense, or each device, equipment, or apparatus so modified or altered constitutes a separate offense, whichever is the greater number;

"(7) Prosecution of violations of this section shall be brought by the Corporation Counsel of the District of Columbia in the name of the District of Columbia.

"(d) Any person who violates the provisions of this section shall, in addition to the criminal penalties provided in subsection (c), be civilly liable, for each violation of this section, to the aggrieved cable television company:

"(1) For an amount not to exceed the greater of the following amounts:

"(a) One Thousand Dollars; or

"(b) Three times the amount of the actual damages, if any, sustained by the plaintiff cable television company.

"(2) Any person who violates subsection (b)(5) of this section is liable to the plaintiff cable television company for the greater of the following amounts:

"(a) Ten Thousand Dollars; or

"(b) Three times the amount of the actual damages, if any sustained by the plaintiff cable television company.

"(3) The manufacture, sale, importation, assembly, transfer, distribution, promotion, lease, offer, ownership, possession, of any device whatsoever designed in whole or in part to facilitate the performance of any of the illegal acts set out in this section shall constitute a separate violation of this section subject to the remedies provided for in subsections (d)(1) and (d)(2).

"(4) Where a single connection, whether physical, electrical, mechanical, or acoustical, or modification or alteration to any device, equipment, or apparatus installed by the cable television company without the authorization of the cable television, is made or maintained for the purpose of allowing for the reception of cable television service by multiple individuals without express authority from the cable television company, each reception so made constitutes a separate offense, or each device, equipment, or apparatus so modified or altered constitutes a separate offense, whichever is the greater number, subject to the remedies provided for in subsections (d)(1) and (d)(2).

"(5) Any person who violates any of tie provisions in the section for a second or subsequent time is liable to the plaintiff cable television company for the greater of the following amounts:

"(a) Twenty Thousand Dollars; or

"(b) Three times the amount of actual damages, if any, sustained by the plaintiff cable television company.

"(6) In the event of a verdict in favor of the plaintiff cable television company, in addition to any actual or statutory damages, the plaintiff cable television company is entitled to full costs, including reasonable investigative expenses, plus reasonable attorney fees and may be entitled to additional damages of up to and including $100,000 in any case in which the court finds that the violation was committed willfully and (i) for purposes of direct or indirect commercial advantage or private financial remuneration or (ii) for the purpose of allowing for reception of cable television service by multiple individuals from a single connection. A defendant who prevails in the action shall also be awarded his or her reasonable attorney fees and any other reasonable costs associated therein.

"(7) It is not a necessary prerequisite to an action pursuant to this section that the plaintiff cable television company has suffered, or is threatened with, actual damages.

"(e) In a criminal prosecution for violation of this section, or in a civil litigation pursuant to, but not limited to, this section the following shall constitute prima facie evidence of intent to violate and of the violation of the provisions of this section:

"(1) The existence on the property or premises of the defendant of any connection, wire conductor, microwave antenna, lock box key, pedestal key, lock box tool, or any device whatsoever, or connection in any pedestal or lock box, which is connected in such a manner as would permit the receipt of cable television service without such service being reported for payment to and specifically authorized by the cable television company; or

"(2) The existence on the property or premises of the defendant, where the totality of the circumstances, including quantities or volumes, indicate possession for resale of any device whatsoever designed in whole or in part to facilitate the performance of any of the illegal acts set out in this section.

"(f) Any cable television company may, in accordance with the District of Columbia Rules of Civil Procedure, bring an action to enjoin or restrain any violation or threatened violation of the provisions of this section, or bring an action for conversion, and may in the same action seek damages as provided in subsection (d). Injunctive relief shall issue upon a showing that a violation of this section has occurred or will occur, without the need for demonstrating irreparable injury, inadequacy of legal remedies, or probability of recovery. In any such action, injunctive relief shall also be awarded directing the defendants to turn over to plaintive cable television company all equipment and devices that are or could reasonably be intended to be used in violation of the provisions of this section, or that have been previously disconnected, removed, sold, altered, or modified without authorization of the cable television company. The successful party may recover reasonable attorney fees.

"(g) Except as provided in subsection (f), any electrical or communications equipment, apparatus or any other such device used, modified, altered, disconnected, removed, or sold, in violation of the provisions of this section shall be considered contraband subject to seizure and forfeiture to the District of Columbia.

"(h) The provisions of this section are severable. If any part of this section is declared invalid or unconstitutional, such declaration shall not affect the part which remains.

      "(i) All laws or parts of laws which conflict with this section are hereby repealed.".

(b) Section 51(a)(D.C. Code § 43-1849), is mended to read as follows:

"(a) Any individual who violates any provision of this chapter shall be fined a civil penalty not to exceed $10,000 per infraction. Any individual who violates any provision of this act shall be fined a civil penalty in accordance with that stated in section 49a."

Sec. 3.

Section 3 of the Cable Television Communications Act of 1981 Amendment Act of 1987, effective March 16, 1988 (D.C. Law 7-93; D.C. Code § 43-1848.1) is amended by striking the section designation "49A" and inserting the section designation "49a" in its place wherever it appears.

Sec. 4. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by Section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1233(c)(3)).

Sec. 4. Effective date.

This Act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approved by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a), and a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Self-Government Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(1)), and publication in the District of Columbia Register.

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