Cable Television, In re

• Decision Date: 26 December 1974
• Citation: 332 A.2d 209,132 N.J.Super. 45
• Parties: In the Matter of the Promulgation of Rules of Practice and Regulations for the Office of CABLE TELEVISION. New Jersey Cable Television Association, Appellant.
• Court: New Jersey Superior Court — Appellate Division

Page 45

132 N.J.Super. 45

332 A.2d 209

In the Matter of the Promulgation of Rules of Practice and

Regulations for the Office of CABLE TELEVISION.

New Jersey Cable Television Association, Appellant.

Superior Court of New Jersey,

Appellate Division.

Argued Dec. 9, 1974.

Decided Dec. 26, 1974.

Francis R. Perkins, Cranford, for appellant (Holzapfel & Perkins, Cranford, attorneys; John J. Janasie, Holzapfel & Perkins, Cranford, on the brief).

Bertram P. Goltz, Deputy Atty. Gen., for respondent Director, Office of Cable Television, Bd. of Public Utility Com'rs (William F. Hyland, Atty. Gen., attorney; Stephen Skillman, Asst. Atty. Gen., of counsel; and William Gural, Deputy Atty. Gen., on the brief).

Before Judges LEONARD, SEIDMAN and BISCHOFF.

PER CURIAM.

An Office of Cable Television was established within the Department of the Public Utility Commission (PUC) by statute effective December 15, 1972. N.J.S.A. 48:5A--1 et seq. The Acting Director of the Office of Cable Television (hereafter Director), through the Board of Public Utility Commissioners (Board), issued an order promulgating rules and regulations for the Office of Cable Television within the Department of Public Utilities. Prior to promulgation, the proposed rules had been published, comments thereon received and a hearing held. The New Jersey Cable Television Association had filed written comments on the proposed regulations along with suggestions for changes and was represented at the hearings. After the rules and regulations were approved, it filed a motion for reconsideration, rehearing and reargument. The motion was denied. This appeal followed.

The association argues on this appeal that certain of the regulations adopted are invalid. The regulations thus attacked provide:

(1) 'deposits to insure credit' must be maintained in separate accounts and used only for the maintenance of subscriber accounts (Reg. 14:507--1);

(2) simple interest at the rate of at least 6% Per annum must be paid on deposits held more than 6 months (Reg. 14:507--1);

(3) 'at least 15 days time for each payment shall be allowed after sending a bill' (Reg. 14:507--5E);

(4) at least 15 days written notice of intention to discontinue service must be given if the service is to be discontinued for non-payment of bills (Reg. 14:507--5E).

The association contends, first, that the Director lacks legislative authority to promulgate rules and regulations concerning consumer deposits. This argument proceeds as follows. The statute provides:

* * * (N)othing in this act shall be construed as declaring or defining cable television to be a public utility or subjecting it to the application of any of the provisions of Title 48 (Public Utilities) of the Revised Statutes, except as otherwise specifically provided in this act. N.J.S.A. 48:5A--4.

Reference is then made to N.J.S.A. 48:2--29.5 which deals with consumer deposits and grants authority to the PUC to adopt rules and regulations with respect to them. The argument continues with the conclusion that if there was no authority to regulate consumer deposits contained within the broad grant of power delegated to the PUC, it does not exist in the grant of authority issued to the Office of Cable Television absent a specific provision similar to that contained in N.J.S.A. 48:2--29.5. It is conceded such a provision is here missing. Therefore, the association contends the regulation on consumer deposits is Ultra vires and invalid.

We do not think the power delegated can be so narrowly construed. The broad public policy to be fostered by the statute is set forth in N.J.S.A. 48: 5A--2 and the means by which this public policy is to be implemented is detailed in N.J.S.A. 48:5A--10. The authority of the Director and the Board under the Act expressly includes the power to 'supervise and regulate' the 'contracts' entered into by every CATV company. N.J.S.A. 48:5A--9(b). In order to discharge its responsibilities under the Act, the Director with the approval of the Board is given authority to adopt rules and regulations governing, Inter alia:

* * * The prohibition and prevention of the imposition of any unjust or unreasonable, unjustly discriminatory or unduly preferential individual or joint rate, charge or schedule for any service supplied or rendered by a CATV company within this State, or the adoption or imposition of any unjust or unreasonable classification in the making or as the basis of any individual or joint rate, charge or schedule for any service rendered by a CATV company within this State. N.J.S.A. 48:5A--10(b).

In short, the Cable Television Act confers comprehensive jurisdiction upon the Director and the Board to regulate cable television, comparable in scope in most respects to the PUC's jurisdiction over public utilities.

It is now well established that such a grant of authority is to be liberallyconstrued so as to enable an agency to discharge its statutory responsibilities. N.J. Builders Owners and Managers Association v. Blair, 60 N.J. 330, 288 A.2d 855 (1972); Township of Deptford v. Woodbury Ter. Sewerage Corp., 54 N.J. 418, 255 A.2d 737 (1969).

We conclude that the regulations regarding consumer deposits, billing and discontinuance of service are well within the...