FRANCHISING OR TRANSFER PROCESS (4-284-010 et seq.)

Municipal Code of Chicago tit. 4, ch. 4-284, art. I

in effect

Municipal Code of Chicago § 4-284-010 Short title.

4-284-010 Short title. This ordinance shall be known as the Chicago Cable Ethics Ordinance – Franchising or Transfer Process. (Prior code § 113.2-1; Amend Coun. J. 6-20-84, p. 7810; Amend Coun. J. 5-16-90, p. 15716; Amend Coun. J. 12-9-92, p. 25465)

Municipal Code of Chicago § 4-284-020 Definitions.

4-284-020 Definitions. For purposes of this chapter: A. "Applicant" means any person who applies for a cable communications franchise in the City of Chicago, excluding any person seeking to renew an existing franchise but including any person who applies for an assignment or other interest of ownership of cable communications franchise in the City of Chicago by way of transfer, sale or other means of assignment, under procedures established pursuant to the Chicago Cable Communications Ordinance, Chapter 4-280 of the Municipal Code, or any successor ordinance or provisions of law relating to the same subject matter. B. "Application period" means a period commencing with the date of the first communication from an applicant to any city representative expressing an interest in acquiring a cable communications franchise, and ending with the date of the approval or disapproval of the application for a franchise or a transfer of ownership of a franchise by the city council pursuant to Section 4-280-170 or Section 4-280-470 A of the Municipal Code, or such date as the applicant formally notifies the cable administrator in writing of the withdrawal of the application for a franchise or a transfer of ownership of a franchise. C. "Cable administrator" means the cable administrator provided for pursuant to Section 4-280-420 of the Municipal Code. D. "City" means the City of Chicago. E. "City advisor" means any outside consultant, counsel, or other person retained by the city with respect to cable communications in the City of Chicago. F. "City employee" means any employee or official of the city, including any city representative but, unless otherwise specified in this ordinance, shall not include members of boards or commissions whose duties and responsibilities are part-time in nature. G. "City representative" means the mayor; members of the city council and their staff; all city department heads; the cable administrator; and all other city employees designated by the cable administrator on the basis of their relevance to cable communications in the City of Chicago but, unless otherwise specified by the cable administrator, shall not include members of boards or commissions whose duties and responsibilities are part-time in nature. H. "Communication" means the discussion, presentation, or any oral, written or other transmission of information relating in any way to cable communications in the City of Chicago. I. "Expenditure" means a payment, distribution, loan, advance, deposit, political or campaign contribution or loan, or gift of money or anything of value, or the conferring of an economic benefit or the incurring of an economic cost, and includes a contract, promise or agreement; whether or not legally enforceable; whether or not made or incurred in the City of Chicago; relating in any way to cable communications in the City of Chicago. "Expenditure" includes expenditures by a person's parent corporation, subsidiary, predecessor or other affiliated entity, or by any business or professional entity, with which an individual is affiliated or associated. J. "Family member" means and includes spouse or qualified domestic partner, siblings and their spouses, children and their spouses, grandchildren and their spouses, parents and grandparents; whether or not they are members of the same household. K. "Immediate family" means and includes spouse or qualified domestic partner and family members living with the person. L. "Interest" means any economic interest or relationship, whether by ownership, purchase, sales, lease, contract, option, investment, employment, gift, fee or otherwise; whether present, promised or reasonably expected; whether direct or indirect; whether or not legally enforceable; whether in the person itself or in a parent or subsidiary corporation or in another subsidiary of the same parent. "Interest" shall not include ownership through purchase at fair market value of less than one percent of the shares of a parent, subsidiary or other affiliated corporation whose shares are registered on a national securities exchange pursuant to the Securities Exchange Act of 1934. "Interest" shall also not include any interest provided equally to all cable subscribers or to all persons who agree to become cable subscribers, or any interest publicly determined by the cable administrator to be so minor that it doesn't reasonably constitute an actual or apparent conflict of interest. M. "Municipal Code" means the Municipal Code of the City of Chicago. N. "Person" means an individual, firm, corporation, cooperative, association, trust, partnership, joint venture, combination or other legally recognized entity. O. "Person with whom a city representative maintains a close economic association" means a person associated with a city representative in a partnership, professional service corporation or other form of business association or professional association, whether as a partner, officer, employee, associate, principal, agent or otherwise; provided that such "association" shall not include participation by both the representative and the other person as limited partners or other passive investors in an entity in which neither owns or controls more than five percent of the equity of the entity. P. "Request for proposals" means the City's request for proposals to construct and operate a cable system pursuant to Chapter 4-48, Section 4-280-050 B of the Municipal Code, or any successor ordinance or provisions of law relating to the same subject matter. Q. "Spokesperson" means and include any person who, at any time during the application period, is authorized to speak on behalf of an applicant or otherwise to represent the applicant or to serve the applicant in an agency capacity or by contract, with respect to any matter relating to cable communications in the City of Chicago. "Spokesperson" includes, but is not limited to, any attorney, consultant, franchise representative, public relations advisor or representative, advertising agency, marketing research firm, accountant, banker, underwriter, financial or investment advisor, broker, person conducting needs assessments on behalf of the applicant, and the like, and any person who is authorized to or who on behalf of the applicant makes any communication or engages in any activity relating to the content or approval of any request for proposals, franchise application, franchise, or ordinance concerning cable communications in the City of Chicago. In the case of an individual "spokesperson", spokesperson also includes any firm or other business or other business or professional association by which the individual is employed or with which he or she is otherwise affiliated. In the case of a firm or other entity, "spokesperson" also includes any individuals who perform or will perform any of the activities as "spokesperson". "Spokesperson" includes any person employed by or retained by the applicant or by a parent corporation, subsidiary or other affiliated entity, whose responsibilities include any of the foregoing communications or activities. (Prior code § 113.2-2; Amend Coun. J. 6-20-84, p. 7810; Amend Coun. J. 5-16-90, p. 15716; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-13-07, p. 14999, Art. I, § 1; Amend Coun. J. 11-17-10, p. 106597, Art. VIII, § 1; Amend Coun. J. 4-24-12, p. 23998, § 1)

Municipal Code of Chicago § 4-284-030 Ineligible applicants.

4-284-030 Ineligible applicants. The following persons shall not be eligible to be or to remain applicants: A. Any person in whom a city employee or immediate family member of a city employee has an interest; B. Any person in whom a family member of a city representative has an interest; C. Any person in whom an interest is held by a person with whom a city representative maintains a close economic association; D. Any person who, directly or indirectly, knowingly offers, promises, suggests or otherwise communicates the possible provision of an interest to a city employee, to an immediate family member of a city employee, to a family member of a city representative or to a person with whom a city representative maintains a close economic association; E. Any person who, directly or indirectly, knowingly communicates with a city employee in violation of the restrictions on ex parte communications provided by Section 4-284-090 of this chapter. F. Any person who is ineligible to do business with the city under Article I of Chapter 1-23 of this Code. (Prior code § 113.2-3; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 6-30-10, p. 95061, § 6; Amend Coun. J. 9-8-10, p. 99116, § 6)

Municipal Code of Chicago § 4-284-040 Disclosures by applicant.

4-284-040 Disclosures by applicant. A. Each applicant shall file with the cable administrator a written statement by the applicant or by an authorized officer of the applicant, publicly disclosing the following information: 1. The name, mailing address, email address, and business phone number of each spokesperson for the applicant; the capacity (e.g., public relations attorney) in which each acts as spokesperson; and the amounts of all compensation paid to or reasonably expected by each spokesperson (whether or not formal billing or payment has yet occurred) for services rendered or to be rendered as a spokesperson for the applicant with respect to any matter relating to Chicago Cable Communications at any time during the application period; 2. All expenditures by or on behalf of the applicant at any time during the application period, itemized by categories and amount, as specified in forms provided by the cable administrator; 3. All information concerning ownership of the applicant as requested by the city. Such ownership information shall include disclosure of owners, including any beneficiary or beneficiaries of any trust or similar entity, and disclosure of principals whenever any ownership interest is held by an agent or nominee; 4. The identities of all city employees, and immediate family members of city employees, family members of city representatives, and persons with whom a city representative maintains a close economic association, who have or at any time during the application period, have had an interest in the applicant; and the nature and amount of each such interest. For the purpose of this subsection, city employee and city representative shall include members of boards or commissions whose duties and responsibilities are part-time in nature; 5. All communications by or on behalf of the applicant with any city representative, family member or person with whom a city representative maintains a close economic association, at any time during the application period, whether or not restricted by the provisions of Section 4-284-090 of this chapter. The written statement disclosing such communications shall include the following information: (a) The name, address, and telephone number of the person to whom the communication was made; (b) The date, time, and duration of the communication and the circumstances (such as telephone conversation or meeting) under which it was made; (c) A brief statement describing any oral communications; (d) A copy of any written materials which were the subject of the communication. B. Such disclosure statements shall be filed on or before the date the applicant first applies for a franchise or transfer of ownership. These statements shall cover the time from the beginning of the application period up to the date of the disclosure statement. Additional statements supplementing the information initially filed shall be filed on the last day of each month until the award of any franchise, or the approval of transfer of ownership of a franchise, for which the applicant applied. An applicant need not file such monthly supplemental statement if there has been no change in the information initially filed. C. Each applicant shall make disclosures, consistent with the provisions and intent of this ordinance, regarding changes of ownership interests, spokespersons, expenditures, and any other matter relating to cable communications, on forms provided by the cable administrator. Nothing herein shall be construed to prevent the cable administrator from requiring disclosure of information in addition to that needed to comply with the terms of this ordinance. (Prior code § 113.2-4; Amend Coun. J. 6-20-84, p. 7810; Amend Coun. J. 5-16-90, p. 15716; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-17-10, p. 106597, Art. VIII, § 1; Amend Coun. J. 4-24-12, p. 23998, § 1)

Municipal Code of Chicago § 4-284-050 Spokespersons - Prohibited activities.

4-284-050 Spokespersons - Prohibited activities. Spokespersons shall not, directly or indirectly, knowingly: A. Provide, offer, promise, suggest or otherwise communicate the possible provision of an interest to a city employee, to any immediate family member of a city employee, to a family member of a city representative or to a person with whom a city representative maintains a close economic association. B. Communicate with a city employee in violation of the restrictions on ex parte communications provided by Section 4-284-090 of this chapter. (Prior code § 113.2-5; Amend Coun. J. 12-9-92, p. 25465)

Municipal Code of Chicago § 4-284-060 Spokespersons - Registration and disclosure.

4-284-060 Spokespersons - Registration and disclosure. A. All spokespersons shall register with the cable administrator before engaging in any activities as a spokesperson. B. Any applicant may register on behalf of all spokespersons who are full-time employees of itself and of any parent, subsidiary or affiliated corporation. Each applicant shall be responsible for informing all its spokespersons of the provisions of this chapter in a timely manner, and for ensuring that all its spokespersons comply with the provisions of this chapter. C. Registration shall consist of filing with the cable administrator a written statement, subscribed under oath before a notary public by the spokesperson (or by the applicant in the case of spokespersons who are its full-time employees), publicly disclosing the following information: 1. The name, mailing address, email address, and business phone number of the spokesperson; 2. The name, mailing address, email address, and business phone number of any firm or other business or professional association with which an individual spokesperson is employed or otherwise affiliated, or, in the case of a spokesperson which is a firm or other entity, the names and addresses of any individuals who perform or will perform any activities as spokesperson; 3. The name, mailing address, email address, and business phone number of any applicant on whose behalf the spokesperson acts or will act; 4. The name, mailing address, email address, and business phone number of any person employing, retaining or paying the spokesperson to act on behalf of the applicant; 5. All expenditures by the spokesperson on behalf of the applicant, at any time during the application period, itemized by category and amount and identifying the person to whom each amount of money or other expenditure was directly or indirectly paid; 6. All communications by the spokesperson, on behalf of the applicant, with a city employee, family member of a city representative or person with whom a city representative maintains a close economic association, at any time during the application period. D. Additional registration statements supplementing the information initially filed shall be filed on the date of the applicant's application for a franchise or transfer of ownership of a franchise and on the last day of each month until the award of any franchise or approval of transfer of ownership for which the applicant applied. If the spokesperson made no expenditures or communications on behalf of the applicant subsequent to those previously disclosed, the spokesperson need not file such supplemental statement. A spokesperson who no longer acts or is authorized to act as a spokesperson shall file written notice of such termination, including therewith a report of all expenditures and communications not previously reported. (Prior code § 113.2-6; Amend Coun. J. 5-16-90, p. 15716; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-17-10, p. 106597, Art. VIII, § 1)

Municipal Code of Chicago § 4-284-070 City employees or representatives - Prohibited activities.

4-284-070 City employees or representatives - Prohibited activities. A. No city employee or member of his or her immediate family shall have an interest in an applicant or grantee. B. No city representative or member of his or her immediate family shall have an interest in an applicant, a grantee or a person who supplies materials or services to an applicant or a grantee. C. No city employee or member of his or her immediate family shall, directly or indirectly: 1. Solicit or accept an interest in, expenditure from or any other thing of value or transaction conferring an economic benefit, from an applicant, grantee, spokesperson or person who supplies materials or services to an applicant or grantee; 2. Solicit, request from or recommend to any applicant, spokesperson or person who supplies materials or services to an applicant, the appointment of any person to a place or position or the provision of an interest, expenditure or any other thing of value or transaction conferring an economic benefit, to any person. (Prior code § 113.2-7; Amend Coun. J. 6-20-84, p. 7810; Amend Coun. J. 12-9-92, p. 25465)

Municipal Code of Chicago § 4-284-080 City representatives and advisors - Disclosure.

4-284-080 City representatives and advisors - Disclosure. A. Each city representative and advisor shall file with the cable administrator a written statement, publicly disclosing the following information: 1. All interests or other economic relationships which the city representative or city advisor or a member of his or her immediate family has or had at any time during the application period, in any applicant or any person who supplies materials or services to an applicant; 2. All interests which the city representative or city advisor knows have been held, at any time during the application period in an applicant or in a person who supplies materials or services to an applicant, by a family member or by a person with whom the city representative or city advisor maintains a close economic association; 3. With respect to each of the interests or other economic relationships described in subparagraph 1 and 2 of this section: (a) The name and address of the person who has or had it, and that person's relationship to the city representative or city advisor; (b) The dates the interest was acquired and held; (c) The amount and nature of the interest, and a description of the transaction in which it was acquired; (d) The name and address of the person in whom the interest is or was had; 4. All communications, direct or indirect, which the city representative or city advisor or a member of his or her immediate family, at any time during the application period, has had with an applicant, and any such communications, relating in any way to cable communications in the City of Chicago with a person who supplies materials or services to an applicant or with a person who has a direct economic interest in the award of a franchise. B. City representatives and city advisors shall file their disclosure statements within 30 days after the cable administrator has sent them notice pursuant to Section 4-284-100(B), the franchise application or transfer of ownership application has been filed, covering the commencement of the application period to the date of the statement. Additional statements, supplementing the information initially filed, shall be filed on the last day of each month until the award of the franchise or approval of the transfer of ownership of the franchise. City representatives and city advisors need not file such monthly supplemental statements if there has been no change in the information initially filed. (Prior code § 113.2-8; Amend Coun. J. 6-20-84, p. 7810; 5-16-90, p. 15716; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-17-10, p. 106597, Art. VIII, § 1)

Municipal Code of Chicago § 4-284-090 Ex parte communications.

4-284-090 Ex parte communications. A. No applicant, spokesperson or person who supplies materials or services to an applicant shall directly or indirectly communicate with a city employee, concerning any matter related in any way to cable communications in the City of Chicago, the request for proposals, applications for franchises, applications for transfer of ownership, franchises, or transfer of ownership of a franchise, any franchise ordinance, or transfer of ownership resolutions except in writing addressed to: Cable Division City Hall 121 North LaSalle Street Chicago, Illinois 60602 All responses on behalf of the city or any city employee to such communications shall be in writing filed with the cable administrator. The cable administrator shall maintain all such communications and responses in his or her office, available for public inspection during regular business hours, pursuant to the Illinois Freedom of Information Act, as amended. B. The foregoing shall not apply to communications consisting exclusively of the following: 1. Requests for application forms for a franchise or transfer of ownership of a franchise; 2. Requests for schedules of meetings of the city council; 3. Requests for information regarding procedural matters not in dispute; 4. Testimony, debate or deliberation at any meeting of the city council or any committee or subcommittee thereof held in conformity with the rules of the council and applicable laws with the State of Illinois; 5. Negotiations or other discussions with applicants formally and publicly authorized by the city council; 6. Communications through the public media, such as statements in news interviews and paid advertisements. In addition, nothing in this section shall preclude the mayor from publicly designating one representative of each city department to respond to inquiries from applicants concerning ascertainment of the needs of each department for possible use of the cable communications system. Any representative so designated shall be listed on a list made available to all applicants and to the public, and shall keep a log of each such meeting, which shall be available for public inspection during regular business hours. (Prior code § 113.2-9; Amend Coun. J. 6-20-84, p. 7810; 5-16-90, p. 15716; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-17-10, p. 106597, Art. VIII, § 1; Amend Coun. J. 4-24-12, p. 23998, § 1)

Municipal Code of Chicago § 4-284-100 Cable administrator - Duties and responsibilities.

4-284-100 Cable administrator - Duties and responsibilities. A. As soon as reasonably practicable following receipt from an applicant of an application for a cable communications franchise; or transfer, sale, or other means of assignment of a cable communications franchise; the cable administrator shall send notice in electronic form or other form to each city representative and city advisor of his or her responsibility to file such a statement as well as the date by which he or she must file such statement. B. As statements and reports are filed in his or her office pursuant to this chapter, the cable administrator shall maintain a record of such filings. Any person who files a statement or report under this chapter and who requests, in writing or by e-mail, a receipt from the cable administrator, is entitled to receive from the cable administrator a receipt indicating that he or she has filed such a statement or report and the date of such filing. C. All statements, reports, logs, listings, and other documents filed pursuant to this chapter shall be available for examination and copying pursuant to the Illinois Freedom of Information Act, as amended. D. Upon request, the cable administration shall promptly notify each person required to file a statement or report under this chapter of all instances of examination thereof by sending duplicate copies of the identification forms filled out by persons examining his or her statements or reports. E. The cable administrator shall notify the mayor and city council of any verified violations of this ordinance. (Prior code § 113.2-10; Amend Coun. J. 5-16-90, p. 15716; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-17-10, p. 106597, Art. VIII, § 1)

Municipal Code of Chicago § 4-284-110 Additional penalties.

4-284-110 Additional penalties. In addition to any other remedies provided by this chapter, or other applicable law, violations of the provisions of this chapter shall be subject to the following additional penalties: A. Violations of Sections 4-284-040, 4-284-050, 4-284-060 and 4-284-090, may render an applicant ineligible for a franchise or a transfer of ownership of a franchise at the option of the city council, and may render any franchise ordinance or other city action relating to the applicant voidable at the option of the city council. B. Any person who knowingly violates any provision of this chapter shall be subject to a fine not to exceed $500.00 for each offense. Each day of violation shall constitute a separate offense. (Prior code § 113.2-11; Amend Coun. J. 6-20-84, p. 7810; Amend Coun. J. 5-16-90, p. 15716; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-17-10, p. 106597, Art. VIII, § 1)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2637450Fetched: 10/24/2026