2018-11-13T06:36:24-06:00 2017-12-31 251408703 SCHNEIDER DOWNS & CO INC ONE PPG PLACE SUITE 1700 PITTSBURGH PA 15222 990 2017-01-01 943180176 AMERICAN CABLE ASSOCIATION INC AMER 4129228300 875 GREENTREE RD 7 PKWY CTR NO 755 PITTSBURGH PA 15220 MATTHEW M POLKA PRESIDENT & CEO 4129228300 2018-11-05 1 EUGENE J LOGAN P00227231 4122613644 208.79.164.82 2018-11-05 08:25:51 ES P 0395E11EB06D780ECFC245D51E1B24F35389E13E 9B917A9CD890140E230CF96B6B707F00B463B466 2017 2019-02-21 02:37:17Z MATTHEW M POLKA 875 GREENTREE RD 7 PKWY CTR NO 755 PITTSBURGH PA 15220 5773322 0 X WWW.AMERICANCABLE.ORG X 1993 PA PROTECTION AND ADVANCEMENT OF SMALL AND MEDIUM-SIZED TELECOMMUNICATIONS BUSINESSES BY INFORMING AND EDUCATING LEGISLATORS, REGULATORS, FINANCIAL INSTITUTIONS AND THE PUBLIC REGARDING THE UNIQUE NEEDS, INTERESTS AND THE ESSENTIAL SERVICES PROVIDED BY THESE SMALL AND MEDIUM-SIZED TELECOMMUNICATIONS COMPANIES, AS WELL AS THE BENEFITS PROVIDED TO THE COMMUNITIES THEY SERVE. ACA ALSO PROVIDES REGULATORY, TECHNICAL AND INDUSTRY INFORMATION TO ITS MEMBERS. 19 19 9 22 0 0 0 0 5879922 5745463 14990 17344 1622 979 5896534 5763786 0 0 0 0 1650717 1716583 0 0 0 4172254 3931985 5822971 5648568 73563 115218 2855989 3004462 458074 489345 2397915 2515117 X THE AMERICAN CABLE ASSOCIATION, INC. (ACA) PURPOSE SHALL BE THE PROTECTION AND ADVANCEMENT OF SMALL AND MEDIUM-SIZED TELECOMMUNICATIONS BUSINESSES BY INFORMING AND EDUCATING LEGISLATORS, REGULATORS, FINANCIAL INSTITUTIONS AND THE PUBLIC REGARDING THE UNIQUE NEEDS, INTERESTS AND THE ESSENTIAL SERVICES PROVIDED BY THESE SMALL AND MEDIUM-SIZED TELECOMMUNICATIONS COMPANIES, AS WELL AS THE BENEFITS PROVIDED TO THE COMMUNITIES THEY SERVE. ACA ALSO PROVIDES REGULATORY, TECHNICAL AND INDUSTRY INFORMATION TO ITS MEMBERS. 0 0 ACA IS IN ITS 24TH YEAR SERVING MEMBERS AND ADVOCATING ON BEHALF OF INDEPENDENT CABLE COMPANIES SO THEY CAN DELIVER THE BEST IN ADVANCED COMMUNICATIONS PRODUCTS AND SERVICES TO CONNECT HOMETOWN AMERICA.KEY DEVELOPMENTS 2017HOUSE PASSAGE OF SMALL BUSINESS ENHANCED TRANSPARENCY EXEMPTION BILLTHE US HOUSE REPRESENTATIVES PASSED THE SMALL BUSINESS BROADBAND DEPLOYMENT ACT. THE BILL INCLUDES A SMALL BUSINESS EXEMPTION FROM THE FEDERAL COMMUNICATIONS COMMISSION'S OPEN INTERNET ENHANCED REPORTING REQUIREMENTS. THE TEMPORARY EXEMPTION IS TO LAST FIVE YEARS AND INCREASES THE EXEMPTION-ELIGIBILITY THRESHOLD TO 250,000 OR FEWER BROADBAND SUBSCRIBERS FROM THE 100,000 OR FEWER BROADBAND SUBSCRIBERS PROVIDED BY THE FCC:BECAUSE THE FCC'S TEMPORARY EXEMPTION FOR SMALL ISPS UNEXPECTEDLY EXPIRED LAST MONTH, LEAVING SMALL PROVIDERS SUBJECT TO COMPLIANCE WITH THE ENHANCED OBLIGATIONS ON JANUARY 17, ACA APPRECIATES THE HOUSE'S ACTION TO ADOPT LEGISLATION THAT WOULD NOT ONLY REINSTATE THE EXEMPTION BUT EXPAND IT TO MORE BROADLY COVER SMALL ISPS. FCC APPROVAL OF N.Y. STATE'S WAIVER PETITION TO GAIN CAF SUPPORTACA APPRECIATES THE DILIGENT REVIEW CONDUCTED AND BALANCED DECISION REACHED BY THE FCC IN APPROVING NEW YORK STATE'S PETITION FOR A WAIVER TO ACCESS CONNECT AMERICA FUND SUPPORT. NEW YORK HAS ONE-UPPED THE FCC BY INSTITUTING A PROGRAM TO BRING BROADBAND SERVICE WITH PERFORMANCE CAPABILITIES THAT EXCEED THOSE REQUIRED BY THE FCC TO UNSERVED AREAS WHILE ENSURING GOVERNMENT MONEY IS USED EFFICIENTLY AND ACCOUNTABLY. MOREOVER, NEW YORK IS CHIPPING IN SUBSTANTIAL ADDITIONAL FUNDING. THAT FORWARD-LOOKING APPROACH, WHICH GREATLY BENEFITS NEW YORK RESIDENTS, BUSINESSES, AND COMMUNITIES, SHOULD BE REWARDED. SO LONG AS THOSE ROBUST REQUIREMENTS ARE MET, THE FCC SHOULD PERMIT OTHER STATES TO JOIN NEW YORK IN PARTNERING IN THE CONNECT AMERICA FUND PROGRAM.FCC VOTE ON ENHANCED TRANSPARENCYACA APPLAUDS THE FCC FOR REINSTATING, EXTENDING, AND EXPANDING THE SMALL INTERNET SERVICE PROVIDER (ISP) EXEMPTION FROM THE OPEN INTERNET ENHANCED TRANSPARENCY REQUIREMENTS. THE FCC'S ACTION WAS CLEARLY WARRANTED. AS ACA AND OTHERS DEMONSTRATED - AND AS A BI-PARTISAN GROUP OF MEMBERS OF CONGRESS FOUND - APPLICATION OF THESE REQUIREMENTS TO SMALL ISPS WOULD IMPOSE UNREASONABLE COSTS ON THEM WHILE PROVIDING LITTLE, IF ANY, BENEFIT FOR END USERS AND EDGE PROVIDERS. ACA THANKS CHAIRMAN PAI AND COMMISSIONER O'RIELLY FOR ACTING SO SWIFTLY TO REMOVE THE UNCERTAINTY SMALL ISPS HAVE LIVED UNDER FOR THE PAST TWO MONTHS. ACA ALSO THANKS COMMISSIONER CLYBURN, WHO UNDERSTOOD THE BURDENS THE ENHANCED REQUIREMENTS IMPOSED ON SMALL ISPS AND WHO WORKED DILIGENTLY SINCE LAST FALL TO TRY TO FASHION A CONSENSUS SOLUTION.PART III - ORGANIZATION'S EXEMPT PURPOSE ACHIEVEMENTS FOR 2017SENATE PASSAGE OF FLAKE RESOLUTION VOIDING FCC'S BROADBAND PRIVACY RULESACA IS VERY PLEASED THE SENATE VOTED TO USE THE CONGRESSIONAL REVIEW ACT (CRA) TO NULLIFY THE FCC'S BROADBAND PRIVACY REGULATIONS. ACA THANKS SEN. JEFF FLAKE (R-ARIZ.) AND HIS MANY SENATE CO-SPONSORS OF THE CRA RESOLUTION FOR THEIR LEADERSHIP ROLE IN ELIMINATING REGULATIONS THAT AS APPLIED TO SMALLER BROADBAND PROVIDERS WOULD IMPOSE UNWARRANTED AND BURDENSOME REGULATIONS, HARMFUL BOTH TO SMALL BUSINESSES AND THEIR CUSTOMERS.THE FCC'S REGULATIONS WERE NOT ONLY ONEROUS, BUT ALSO SINGLED OUT ISPS WITH OVERLY RESTRICTIVE PRIVACY RESPONSIBILITIES. MEANWHILE, THE INTERNET'S GIANT EDGE PROVIDERS WERE EXEMPT DESPITE HAVING ACCESS TO SIMILAR, IF NOT MORE, CONSUMER DATA FOR THEIR COMMERCIAL USE.TODAY'S VOTE IS AN IMPORTANT STEP FORWARD IN CLEARING THE PATH FOR FCC CHAIRMAN PAI AND ACTING FTC CHAIRMAN OHLHAUSEN, WHO HAVE PLEDGED TO WORK TOGETHER, TO DEVELOP A NEW 'COMPREHENSIVE AND CONSISTENT FRAMEWORK' FOR PROTECTING AMERICAN'S ONLINE PRIVACY.NOTWITHSTANDING TODAY'S VOTE, ACA MEMBERS ARE COMMITTED TO MAINTAINING THEIR EXCELLENT RECORD OF PROTECTING SUBSCRIBER PRIVACY. THEY REMAIN SUBJECT TO A VARIETY OF STATE AND FEDERAL UNFAIR AND DECEPTIVE TRADE PRACTICES, DATA SECURITY AND DATA BREACH LAWS. MOREOVER, THEY HAVE RELEASED A VOLUNTARY SET OF ISP PRIVACY PRINCIPLES THAT COVER TRANSPARENCY, CONSUMER CHOICE, DATA SECURITY AND DATA BREACH NOTIFICATION AND ARE CONSISTENT WITH THE FTC'S LONG-STANDING FRAMEWORK. ACA MEMBERS HAVE COMMITTED TO ADHERE TO THESE OBLIGATIONS REGARDLESS OF WHETHER THE FCC'S EXISTING REGULATIONS REMAIN IN PLACE.FCC ELIMINATED BROADBAND OVERBUILD MANDATE IN CHARTER-TWC-BHN MERGER ORDERACA IS VERY PLEASED THE FCC ELIMINATED THE REQUIREMENT FOR CHARTER TO OFFER BROADBAND SERVICE TO 1 MILLION HOMES THAT ARE ALREADY RECEIVING BROADBAND SERVICE FROM ANOTHER PROVIDER. IN ALL LIKELIHOOD, THESE OVERBUILDS WOULD HAVE OCCURRED WHERE SMALLER OPERATORS ARE SERVING AREAS THAT MIGHT NOT SUPPORT TWO PROVIDERS.THE FCC'S DECISION IS COMPELLING BECAUSE THE AGENCY IS SIMULTANEOUSLY ADVANCING THE GOAL OF AFFORDABLE AND UNIVERSAL BROADBAND BY REQUIRING CHARTER TO VENTURE INTO UNSERVED AREAS AND BY ELIMINATING THE THREAT OF GOVERNMENT-MANDATED UNECONOMIC ENTRY INTO SMALLER OPERATORS' MARKETS. THIS OVERBUILD THREAT, ADDED BY THEN-FCC CHAIRMAN WHEELER AT THE ELEVENTH HOUR OF THE MERGER APPROVAL, UNDERMINED THESE OPERATORS' ABILITY TO MAKE INVESTMENTS THAT WOULD BENEFIT THEIR EXISTING SUBSCRIBERS OR EXPAND THEIR NETWORKS TO REACH UNSERVED HOUSEHOLDS. FOR SMALLER OPERATORS, THIS THREAT WAS REAL AS EVIDENCED BY THE 38 ACA MEMBERS WHO RECENTLY URGED THE FCC TO ELIMINATE THE OVERBUILD CONDITION.ACA IS PLEASED THAT THE FCC IS GETTING RID OF THIS OVERBUILD CONDITION BY ACTING ON ACA'S PETITION FOR RECONSIDERATION THAT WAS FILED A MONTH AFTER THE MERGER ORDER WAS RELEASED.FCC VOTE LOOKING AT THE REMOVAL OF BARRIERS TO BROADBAND DEPLOYMENTACA APPLAUDS TODAY'S FCC ACTION TO CONTINUE ITS DECADES-LONG POLICY OF APPLYING LIGHT-TOUCH REGULATIONS TO COMPETITIVE PROVIDERS' OFFERING OF BUSINESS DATA SERVICES (BDS). THIS LONGSTANDING LIGHT-TOUCH APPROACH HAS BEEN A RESOUNDING SUCCESS. OVER THE PAST DECADE, HUNDREDS OF ACA'S SMALLER MEMBERS HAVE ENTERED THE BDS MARKET, OFFERING MORE INNOVATIVE SERVICES AT LOWER PRICES, AND THEY ARE NOW INVESTING BILLIONS MORE TO EXPAND THEIR NETWORKS AND OFFER EVEN MORE ROBUST SERVICES. BY MAINTAINING ITS POLICY DIRECTION, THE FCC WILL ENSURE THAT ACA MEMBERS' BUSINESS, COMMUNITY ANCHOR, AND WIRELESS PROVIDER CUSTOMERS WILL REAP THE BENEFITS OF ALL THE INVESTMENT ITS ACTION WILL GENERATE.FCC GIVING CABLE OPERATORS THE OPTION TO EMAIL ANNUAL NOTICESTHE FCC AMENDED ITS RULES TO GIVE CABLE OPERATORS, PURSUANT TO IMPORTANT CONSUMER PROTECTIONS, THE OPTION TO DISTRIBUTE REQUIRED ANNUAL REPORTS VIA EMAIL TO THEIR CUSTOMERS. THE FCC'S ORDER WILL REDUCE COST FOR CABLE OPERATORS, BENEFIT THE ENVIRONMENT, AND PROMOTE CONSUMER CONVENIENCE WITH REGARD TO ACCESSING KEY COMMUNICATIONS FROM CABLE OPERATORS.COURT AFFIRMED FCC'S FINDING THAT CABLE OPERATORS ARE SUBJECT TO EFFECTIVE COMPETITION NATIONALLYTHE COURT'S DECISION AFFIRMING THE FCC'S 2015 ORDER THAT ESTABLISHED A PRESUMPTION THAT CABLE OPERATORS NOW FACE 'EFFECTIVE COMPETITION' NATIONALLY. IN TODAY'S MARKET, CONSUMERS HAVE AT LEAST THREE CHOICES FOR TRADITIONAL PAY-TELEVISION SERVICE AND CAN ELECT TO SUBSCRIBE TO MANY ONLINE VIDEO SERVICES, LIKE NETFLIX AND HULU. THERE IS NO LONGER ANY GOOD REASON THAT CABLE OPERATORS SHOULD REMAIN SUBJECT TO BURDENSOME RATE REGULATION. ACA IS ALSO PLEASED TO SEE THAT BROADCASTERS' ATTEMPTS TO MAINTAIN UNNECESSARY AND UNWARRANTED REGULATORY HANDCUFFS ON CABLE OPERATORS HAVE BEEN THWARTED.BY WAY OF BACKGROUND: CONGRESS REGULATED CABLE RATES IN THE 1992 CABLE ACT. IN THE TELECOMMUNICATIONS ACT OF 1996, CONGRESS LIFTED RATE CAPS ON CABLE'S EXPANDED BASIC TIER - TYPICALLY, THE CHANNEL HOME OF CNN, FOX NEWS, AND ESPN - EFFECTIVE ON MARCH 31, 1999. BUT THE 1996 LAW DID NOT REMOVE RATE CAPS ON THE BASIC TIER, WHERE LOCAL TV STATION SIGNALS TYPICALLY RESIDE.TO GAIN BASIC TIER DEREGULATION, CONGRESS STILL REQUIRED CABLE OPERATORS TO MAKE A SHOWING TO THE FCC THAT THEIR PAY-TV COMPETITORS COMBINED SERVED 15% OF THE SUBSCRIBERS IN A FRANCHISE AREA. THAT WAS AN EXPENSIVE PROCESS FOR SMALLER PAY-TV PROVIDERS, ESPECIALLY WHEN THE POINT WAS TO DEMONSTRATE THE WELL-ESTABLISHED FACT THAT DISH AND DIRECTV HAD BECOME FORMIDABLE COMPETITORS ACROSS THE NATION. GIVEN THAT SITUATION, THE FCC TWO YEARS AGO DETERMINED THAT EVERY CABLE OPERATOR SHOULD BE PRESUMED SUBJECT TO EFFECTIVE COMPETITION AND WOULDN'T HAVE TO PROVE 15% COMPETITOR PENETRATION.SENS. MORAN AND SCHATZ'S TV VIEWER PROTECTION BILLTHIS NEW BILL INTRODUCED BY SEN. MORAN, SEN. SCHATZ AND THEIR COLLEAGUES WHICH WILL MAKE MORE MONEY AVAILABLE TO THE FEDERAL COMMUNICATIONS COMMISSION TO PREVENT CONSUMERS FROM LOSING ACCESS TO BROADCAST CHANNELS AS A RESULT OF THE RECENTLY CONCLUDED BROADCAST TV INCENTIVE AUCTION."UNDER THE MORAN/SCHATZ BILL, THE FCC MAY ALLOCATE ADDITIONAL MONEY TO PROVIDE REIMBURSEMENTS TO BOTH CABLE OPERATORS AND BROADCASTERS 0 0 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 54 0 1 9 1 0 0 0 0 0 0 X 19 19 0 0 0 0 1 1 0 1 1 0 0 0 1 1 0 0 0 1 1 0 X ROBERT SHEMA 4129228300 875 GREENTREE ROAD 7 PARKWAY CENTER PITTSBURGH PA 15220 X DIANA BLOCK DIRECTOR 1.00 X 0 0 0 LESLIE BROWN DIRECTOR 1.00 X 0 0 0 JIM BRUDER DIRECTOR 1.00 X 0 0 0 MARIE CENSOPLANO DIRECTOR (ENTERED 1/17) 1.00 X 0 0 0 JOHN CONRAD DIRECTOR 1.00 X 0 0 0 KATHY FORD DIRECTOR 1.00 X 0 0 0 JOHN GDOVIN DIRECTOR 1.00 X 0 0 0 JIM GLEASON DIRECTOR 1.00 X 0 0 0 PATRICK KNORR DIRECTOR 1.00 X 0 0 0 TOM LARSEN DIRECTOR 2.00 X 0 0 0 EARLE MACKENZIE DIRECTOR 1.00 X 0 0 0 TOM MIGHT DIRECTOR 1.00 X 0 0 0 ANDREW PETERSEN DIRECTOR 1.00 X 0 0 0 TINA PIDGEON DIRECTOR 1.00 X 0 0 0 ROBERT WIEAND DIRECTOR 1.00 X 0 0 0 ROBERT GESSNER CHAIRMAN 2.00 X X 0 0 0 PATTY BOYERS VICE CHAIRMAN 2.00 X X 0 0 0 BRYAN CIPOLETTI TREASURER 2.00 X X 0 0 0 LEAANN QUIST SECRETARY 1.00 X X 0 0 0 MATTHEW M POLKA PRESIDENT & CEO 40.00 X 326729 0 37503 ROBERT E SHEMA EXECUTIVE VICE PRESIDENT 40.00 X 192818 0 26992 ROSS J LIEBERMAN SENIOR VICE PRESIDENT 40.00 X 254203 0 24606 EDWARD T HEARN VICE PRESIDENT 40.00 X 159033 0 17072 MARY C LOVEJOY VICE PRESIDENT 40.00 X 199229 0 22366 KAREN D YOCHUM - SR DIR OF ADMIN & FINANCE 40.00 X 104873 0 28912 1236885 0 157451 6 0 1 0 THE ALPINE GROUP 660 PA AVENUE SUITE 201 WASHINGTON DC 20003 GOVERNMENT AFFAIRS CONSULTING 497125 CINNAMON MUELLER 307 NORTH MICHIGAN AVENUE SUITE 102 CHICAGO IL 60601 FCC CONSULTING/LEGAL 439931 KELLEY DRYE & WARREN LLP 101 PARK AVENUE NEW YORK NY 10178 FCC CONSULTING/LEGAL 393175 AMERICAN TELEVISION ALLIANCE 1401 H ST NW SUITE 1075 WASHINGTON DC 20005 PUBLIC RELATIONS CONSULTING 278966 CARTESIAN INC PO BOX 876364 KANSAS CITY MO 641876364 RESEARCH AND ANALYSIS 260934 5 MEMBER DUES 900099 5426018 5426018 MEETING SPONSORSHIPS 900099 196350 196350 EXHIBIT FEES 900099 61800 61800 REGISTRATION FEES 900099 61295 61295 5745463 26880 26880 9536 -9536 -9536 -9536 OTHER REVENUE 900099 979 979 979 5763786 5735927 0 27859 1260551 326809 7936 39856 81431 1452475 15766 565238 327438 58852 125203 65774 250195 386141 20173 9961 POLICY SUPPORT 602501 DUES & SUBSCRIPTIONS 33548 TRAINING 2737 15983 5648568 821194 584274 370485 399536 972289 891640 26620 54785 127304 84584 58658 42720 606743 1031507 2855989 3004462 334942 313256 23946 109964 99186 66125 458074 489345 X 2397915 2515117 2397915 2515117 2855989 3004462 115218 1984 0 X X 0 1 X 1 0 0 0 0 5426018 565238 565238 922423 -357185 13625 13625 0 69103 36449 32654 44576 34510 10066 42720 MEMBER DUES ADVANCED - LONG TERM 66125 66125 X 5775307 1984 1984 5773323 -9537 -9537 5763786 5658105 9537 9537 5648568 0 5648568 PART X, LINE 2: FOR INCOME TAX PURPOSES, THE ASSOCIATION IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(6) OF THE IRC AND IS NOT A PRIVATE FOUNDATION. ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS RECORDED IN THE FINANCIAL STATEMENTS. THE ASSOCIATION'S POLICY IS TO ACCRUE INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE, IF ANY, AS A COMPONENT OF OFFICE AND ADMINISTRATIVE EXPENSES. THE ASSOCIATION HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS REQUIRING AN ACCRUAL OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE STATUTORY TAX YEARS 2014, 2015 AND 2016 REMAIN OPEN TO EXAMINATION. PART XI, LINE 4B - OTHER ADJUSTMENTS: DISPOSAL OF ASSETS -9,537. PART XII, LINE 2D - OTHER ADJUSTMENTS: DISPOSAL OF ASSETS 9,537. X X X X 0 0 0 MATTHEW M POLKA PRESIDENT & CEO 297745 0 28726 0 258 0 9658 0 27845 0 364232 0 0 0 ROBERT E SHEMA EXECUTIVE VICE PRESIDENT 176180 0 16500 0 138 0 5364 0 21628 0 219810 0 0 0 ROSS J LIEBERMAN SENIOR VICE PRESIDENT 233180 0 20800 0 223 0 6781 0 17825 0 278809 0 0 0 EDWARD T HEARN VICE PRESIDENT 144207 0 14330 0 496 0 0 0 17072 0 176105 0 0 0 MARY C LOVEJOY VICE PRESIDENT 181234 0 17850 0 145 0 5547 0 16819 0 221595 0 0 0 PART I, LINE 3 THE PRESIDENT & CEO, MATTHEW M. POLKA, IS THE ONLY INDIVIDUAL WHO HAS AN EMPLOYMENT CONTRACT WITH THE ORGANIZATION. FORM 990, PART III, LINE 4A IF THE AGENCY DEEMS IT NEEDS MORE THAN THE ORIGINAL $1.75 BILLION ALLOCATION. ACA IS PLEASED THAT THE BILL ENSURES THAT FCC FUNDING IS ACCESSIBLE TO SMALLER CABLE OPERATORS AND GIVES EQUAL PRIORITY TO WHOEVER REQUESTS SUCH FUNDS, WHETHER IT IS A CABLE OPERATOR OR BROADCASTER. OUR MEMBERS ARE APPRECIATIVE OF THIS FINANCIAL SUPPORT THAT WILL ENABLE THEM TO CONTINUE OFFERING BROADCAST CHANNELS TO THEIR CUSTOMERS WITHOUT INTERRUPTION." ADDITIONAL BILL SPONSORS INCLUDE: SENS. JIM INHOFE (R-OKLA.), TODD YOUNG (R-IND.), RICHARD BLUMENTHAL (D-CONN.) AND TOM UDALL (D-COLO.). ACA MEMBER SURVEY REINFORCES THAT BROADCASTERS USE AGGRESSIVE BULLY TACTICS IN RETRANS NEGOTIATIONS THE AMERICAN CABLE ASSOCIATION HAS RELEASED KEY SURVEY FINDINGS ON WHAT ACA MEMBERS EXPERIENCE ON THE FRONT LINES OF RETRANSMISSION CONSENT NEGOTIATIONS WITH CORPORATE BROADCASTERS. THE RESULTS ARE NOT PRETTY: THE PREVAILING SENTIMENT IS THAT BROADCASTERS USE THEIR MARKET POWER TO BULLY SMALL AND MEDIUM-SIZED CABLE OPERATORS INTO LOPSIDED DEALS THAT HURT CONSUMERS. SEVENTY-SIX PERCENT OF SURVEY RESPONDENTS STATED THAT BROADCASTERS EMPLOY A "TAKE IT OR LEAVE IT" APPROACH TO RETRANS NEGOTIATIONS. "THIS IS ESSENTIALLY NOT A NEGOTIATION - IT IS AN AGREEMENT FORCED ON US," OFFERED ONE RESPONDENT. ANOTHER CHARACTERIZED RETRANSMISSION CONSENT NEGOTIATIONS AS "EXTREME BULLYING AND TAKE IT OR LEAVE IT ATTITUDE." CABLE OPERATORS REPORT THAT BROADCASTERS USE RETRANS NEGOTIATIONS TO DEMAND HUGE RATE HIKES AND FORCE UNWANTED CHANNELS INTO PROGRAM LINEUPS. TO MAKE MATTERS WORSE, CABLE OPERATORS ARE CONCERNED THAT THEIR CUSTOMERS OFTEN BLAME THEM FOR THESE RATE HIKES AND UNPOPULAR CHANNELS, WHEN IN FACT IT IS THE BROADCASTERS WHO DICTATE HOW MUCH CUSTOMERS ARE FORCED TO PAY AND WHICH CHANNELS AND NETWORKS MUST BE CARRIED. "WHEN WE ASKED OUR MEMBERS TO SHARE THEIR TOP OBJECTIVE DURING RETRANS MATTERS, NEARLY THREE QUARTERS SAID THAT THEY WANTED TO KEEP PRICES DOWN FOR THEIR CUSTOMERS," SAID MATTHEW M. POLKA, PRESIDENT AND CEO OF THE AMERICAN CABLE ASSOCIATION. "YET TIME AND TIME AGAIN, CORPORATE BROADCASTERS DON'T NEGOTIATE FAIRLY - OR AT ALL - AND CONSUMERS ARE LEFT HOLDING THE BAG." BROADCASTERS GENERALLY EXTRACT THE HIGHEST PER-SUBSCRIBER FEES FROM THE SMALLEST CABLE OPERATORS AND THEIR CUSTOMERS, AND THEIR DEMANDS KEEP ESCALATING. SNL KAGAN PROJECTS THAT THESE FEES WILL COST U.S. CONSUMERS AND SATELLITE AND CABLE OPERATORS $11.6 BILLION BY 2022, UP FROM $8.6 BILLION IN 2017, A 35 PERCENT INCREASE IN JUST FIVE YEARS. RETRANS FEES ARE THE FASTEST GROWING PART OF CONSUMERS' MONTHLY CABLE BILLS. WHEN ASKED ABOUT THE FUTURE OF RETRANSMISSION CONSENT NEGOTIATIONS, 63 PERCENT OF SURVEY RESPONDENTS SAID THEY WERE CONCERNED THAT IF THE PROCESS STAYS THE SAME, IT WILL HARM THEIR CUSTOMERS. "THIS IS UNSUSTAINABLE AND CONSUMERS WILL LOSE IN THE END," STATED ONE CABLE PROVIDER. THESE FINDINGS FURTHER SHED LIGHT ON BROADCASTERS' BAD BEHAVIORS, WHICH ACA HAS BEEN HIGHLIGHTING EACH WEEK THROUGH ITS TV RANSOM CAMPAIGN TO CALL OUT BROADCASTERS' RECKLESS, GREEDY, PUSHY, RUTHLESS AND SPITEFUL BEHAVIORS WHEN IT COMES TO RETRANS MATTERS. CURRENTLY, HUNDREDS OF LOCAL CABLE OPERATORS ACROSS THE COUNTRY ARE ATTEMPTING TO NEGOTIATE WITH A HANDFUL OF CORPORATE MEDIA CONGLOMERATES THAT OWN MOST OF THE LOCAL TV STATION AFFILIATES FOR ABC, CBS, FOX AND NBC. THIS PROCESS PITS ACA'S SMALL AND MID-SIZED CABLE OPERATOR MEMBERS, WHO SERVE RURAL AMERICANS AND SMALLER URBAN MARKETS, AGAINST HUGE CORPORATIONS WITH NO STAKE OR TIES TO THESE LOCAL COMMUNITIES. ACA CONDUCTED AN ONLINE SURVEY FROM NOVEMBER 8-15, 2017, WHICH RECEIVED 131 RESPONSES. FORM 990, PART VI, SECTION A, LINE 1 AN EXECUTIVE COMMITTEE SHALL BE ESTABLISHED WHICH WILL INCLUDE THE CHAIRPERSON, VICE CHAIRPERSON, TREASURER AND TWO (2) MEMBERS OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE SHALL HAVE THE AUTHORITY OF THE BOARD EXCEPT WITH RESPECT TO: - THE APPROVAL OF ANY ACTION FOR WHICH THE NONPROFIT LAW ALSO REQUIRES APPROVAL OF THE MEMBERS; - THE FILING OF VACANCIES ON THE BOARD OR ON ANY COMMITTEE WHICH HAS THE AUTHORITY OF THE BOARD; - THE FIXING OF COMPENSATION OF THE DIRECTORS FOR SERVING ON THE BOARD OR ON ANY COMMITTEE; - THE AMENDMENT OR REPEAL OF BYLAWS OR THE ADOPTION OF NEW BYLAWS; - THE AMENDMENT OR REPEAL OF ANY RESOLUTION OF THE BOARD WHICH BY ITS EXPRESS TERMS IS NOT SO AMENDABLE OR REPEALABLE; - THE APPOINTMENT OF COMMITTEES OF THE BOARD OR THE MEMBERS THEREOF; - THE EXPENDITURE OF CORPORATE FUNDS TO SUPPORT A NOMINEE FOR DIRECTOR AFTER THERE ARE MORE PEOPLE NOMINATED FOR DIRECTOR THAN CAN BE ELECTED; OR - WITH RESPECT TO ASSEST HELD IN CHARITABLE TRUST, THE APPROVAL OF ANY SELF-DEALING TRANSACTION AS DEFINED BY SECTION 5728 OF THE NONPROFIT LAW OR ANY SUCCESSOR SECTION THERETO, EXCEPT AS PROVIDED BY LAW. FORM 990, PART VI, SECTION A, LINE 6 AMERICAN CABLE ASSOCIATION, INC. SHALL HAVE ONE (1) CLASS OF VOTING MEMBERS. ONLY CABLE TELEVISION BUSINESSES MAY BECOME VOTING MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE DIRECTORS SHALL BE ELECTED BY THE MEMBERS AR A REGULAR OR SPECIAL MEETING OF THE MEMBERS CALLED FOR SUCH PURPOSES OR BY WRITTEN BALLOT. NOTWITHSTANDING THE FOREGOING, AT ANY MEETING OF THE MEMBERS WHERE DIRECTORS ARE TO BE ELECTED, EACH MEMBER SHALL DESIGNATE A PROXY TO CAST SUCH MEMBER'S VOTE FOR DIRECTORS AT A MEETING CALLED AND HELD FOR SUCH PURPOSES. AT THE MEETING CALLED FOR THE ELECTION OF DIRECTORS, EACH SUCH PROXY SHALL BE ENTITLED TO CAST THE NUMBER OF VOTES HELD FOR EACH OFFICE OF DIRECTOR TO BE FILLED, WITHOUT THE RIGHT TO CUMULATE VOTES. IN ANY ELECTION OF DIRECTORS BY MEMBERS, THE CANDIDATES RECEIVING THE HIGHEST NUMBER OF VOTES ARE ELECTED. ONLY THOSE PERSONS NOMINATED IN ACCORDANCE WITH THE PROCEDURES ESTABLISHED IN THE BYLAWS MAY STAND FOR ELECTION AS DIRECTOR. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY THE PRESIDENT AND CEO, EXECUTIVE VICE PRESIDENT AND THE TREASURER. FORM 990, PART VI, SECTION B, LINE 15 THE EVP OF FINANCE REVIEWS SEVERAL (5 OR MORE) SIMILAR ASSOCIATION FORM 990'S FOR CEO COMPENSATION. THIS INCLUDES ASSOCIATIONS BOTH IN WASHINGTON, D.C. AND IN PENNSYLVANIA. THE EVP OF FINANCE PURCHASES THE CEO UPDATE SALARY GUIDE FOR NATIONAL ASSOCIATIONS AND NON-PROFITS AND CREATES A COMPENSATION PROPOSAL FOR THE CHAIRMAN OF THE BOARD. THE CHAIRMAN OF THE BOARD SHARES THIS PROPOSAL WITH THE EXECUTIVE COMMITTEE OF THE BOARD. THE CHAIRMAN OF THE BOARD DETERMINES THE CEO'S COMPENSATION. THE EVP OF FINANCE USES THE SAME PROCESS FOR ALL OFFICERS AND PRESENTS THE COMPENSATION SUGGESTIONS TO THE CEO. THE CEO DETERMINES THE COMPENSATION FOR ALL OTHER OFFICERS OF THE CORPORATION. THE COMPENSATION FOR THE REMAINING STAFF MEMBERS IS REVIEWED BY THE FULL BOARD OF DIRECTORS AS PART OF THE BUDGET DISCUSSION AND IS APPROVED BY THE FULL BOARD AS PART OF THE BUDGET APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 NO DOCUMENTS ARE AVAILABLE TO THE PUBLIC. FORM 990, PART VII, EMERITUS TRUSTEES: THE FOLLOWING INDIVIDUALS SERVE ON THE BOARD OF AMERICAN CABLE ASSOCIATION, INC. WITH NO VOTING RIGHTS: DICK BEARD; PAT THOMPSON; COLLEEN ABDOULAH; AND DOUG FULLER. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS ASSUMES THE RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT. THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR.