The time in which a CATV operator must provide the information requested under subsection (b) may be extended by written agreement between the municipality or its agent and the CATV operator.

(c-5) The
municipality
or
its
agent
must
provide
an
initial
report
of
its
audit
findings
to
the
CATV
operator
no
later
than
90
days
after
the
information
set
forth
in
subsection
(b)
of this Section has
been
provided
by
the
CATV
operator.
This
90-day
timeline
may
be
extended
one
time
by
written
agreement
between
the
municipality
or
its
agents
and
the
CATV
operator.
However,
in
no
event
shall
an
extension
of
time
exceed
90
days.
This
initial
report
of
audit
findings
shall
detail
the
basis
of
its
findings
and
provide,
but
not
be
limited
to,
the
following
information:
(i)
any
overpayments
of
franchise
fees
or
service
provider
fees,
(ii)
any
underpayments
of
franchise
fees
or
service
provider
fees,
(iii)
the complete list of all addresses within the corporate limits of the municipality for which the audit is being conducted, (iv) all
municipal
addresses
that
should
be
included
in
the
CATV
operator's
database
and
attributable
to
that
municipality
for
determination
of
franchise
fees
or
service
provider
fees,
and
(v) 
addresses
that
should
not
be
included
in
the
CATV
operator's
database
and
addresses
that
are
not
attributable
to
that
municipality
for
determination
of
franchise
fees
or
service
provider
fees.
Generally
accepted
auditing
standards
shall
be
utilized
by
the
municipality
and
its
agents
in
its
review
of
information
provided
by
the
CATV
operator.

(c-10)
In
the
event
that
the
municipality
or
its
agent
does
not
provide
the
initial
report
of
the
audit
findings
to
the
CATV
operator
with
the
timeframes
set
forth
in
subsection
(c-5) of this Section,
then
the
audit
shall
be
deemed
completed
and
to
have
conclusively
found
that
there
was
no
overpayment
or
underpayment
by
the
CATV
operator
for the audit period. Further, the municipality may not thereafter commence or conduct any such audit for the same audit period or for any part of that same audit period.

(d) If an audit by the municipality or its agents finds an error by the CATV operator in the amount of the franchise fees or service provider fees paid by the CATV operator to the municipality, then the municipality shall notify the CATV operator of the error. Any such notice must be given to the CATV operator by the municipality or its agent within 90 days after the municipality or its agent discovers the error, and no later than 4 years after the date the franchise fee or service provider fee was due. Upon such a notice, the CATV operator must submit a written response within 60 days after receipt of the notice stating that the CATV operator has corrected the error on a prospective basis or stating the reason that the error is inapplicable or inaccurate. The municipality or its agent then has 60 days after the receipt of the CATV operator's response to review and contest the conclusion of the CATV operator. No legal proceeding to collect a deficiency or overpayment based upon an alleged error shall be commenced unless within 180 days after the municipality's notification of the error to the CATV operator the parties are unable to agree on the disposition of the audit findings.

Any
legal
proceeding
to
collect
a
deficiency
as
set
forth
in
this subsection
(d)
shall
be
filed
in
the
appropriate
circuit
court.

(e) No CATV operator is liable for any error in past franchise fee or service provider fee payments that was unknown by the CATV operator prior to the audit process unless (i) the error was due to negligence on the part of the CATV operator in the collection or processing of required data and (ii) the municipality had not failed to respond in writing in a timely manner to any written request of the CATV operator to review and correct information used by the CATV operator to calculate the appropriate franchise fees or service provider fees if a diligent review of such information by the municipality reasonably could have been expected to discover such error.

(f) All account specific information provided by a CATV operator under this Section may be used only for the purpose of an audit conducted under this Section and the enforcement of any franchise fee or service provider fee delinquent claim. All such information must be held in strict confidence by the municipality and its agents and may not be disclosed to the public under the Freedom of Information Act or under any other similar statutes allowing for or requiring public disclosure.

(f-5)
All
contracts
by
and
between
a
municipality
and
a
third
party
for
the
purposes
of
conducting
an
audit
as
contemplated
in
this
Article
shall
be
disclosed
to
the
public
under
the
Freedom
of
Information
Act
or
under
similar
statutes
allowing
for
or
requiring
public
disclosure.

(g) For the purposes of this Section, "CATV operator" means a person or entity that provides cable and video services under a franchise agreement with a municipality pursuant to Section 11-42-11 of the Municipal Code and a holder authorized under Section 21-401 of the Cable and Video Competition Law of 2007 as consistent with Section 21-901 of that Law.

(h) This Section does not apply to any action that was commenced, to any complaint that was filed, or to any audit that was commenced before the effective date of this amendatory Act of the 96th General Assembly. This Section also does not apply to any franchise agreement that was entered into before the effective date of this amendatory Act of the 96th General Assembly.

(h-5) The audit procedures set forth in this Section shall be the exclusive audit procedures for: (i) any franchise agreement entered into, amended, or renewed on or after the effective date of this amendatory Act of the 100th General Assembly; and (ii) any franchise fee or service provider fee audit of a CATV operator commenced on or after the effective date of this amendatory Act of the 100th General Assembly.

(i) The provisions of this Section shall not be construed as diminishing or replacing any civil remedy available to a municipality, taxpayer, or tax collector.

(j) If a contingent fee is paid to an auditor, then the payment must be based upon the net difference of the complete audit.

(k) A municipality shall provide to each CATV operator an updated complete list of addresses within the corporate limits of the municipality annually. In addition, the municipality shall provide a CATV operator the updated address list within 90 days after the date of a written request by the CATV operator.

As a prerequisite to performing an audit of a CATV operator's franchise fees or service provider fees derived from the provision of cable and video services to subscribers within the franchise area, a municipality shall provide to a CATV operator the complete list of addresses within the corporate limits of the municipality for each calendar year subject to the audit. If an address is not included in the list or if no list is provided, the CATV operator shall be held harmless for any franchise fee underpayments, including penalty and interest, from situsing errors if it used a reasonable methodology to assign the address or addresses to a municipality.

An address list provided by a municipality to a CATV operator shall be maintained as confidential by the CATV operator and shall only be used by the CATV operator for the purposes of determining the situs of any franchise fee or service provider fee.  Any situs issues identified by a CATV provider as a result of the provision of an address list by a municipality to the CATV operator shall first be confirmed in writing to the municipality by the CATV operator prior to the CATV operator making any situs change that may result in a change of allocation of a franchise fee or service provider fee to the municipality.

(l) This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(m) This Section does not apply to any municipality having a population of more than 1,000,000.

(Source: P.A. 99-6, eff. 6-29-15; 100-945, eff. 8-17-18.)