State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]

90_SB0999eng

      55 ILCS 5/5-1095          from Ch. 34, par. 5-1095
      65 ILCS 5/11-42-11        from Ch. 24, par. 11-42-11
          Amends the Counties Code and the Illinois Municipal Code.
      Provides that when deciding whether to  grant  an  additional
      cable  television  franchise, the franchising authority shall
      consider the statutory factors and consider and evaluate  the
      terms  and conditions of the existing franchise and the terms
      and conditions of the proposed franchise.  Provides  that  if
      it  is  determined  to  be  in the best interest to grant the
      additional franchise, the franchising authority must  make  a
      written finding that the terms and conditions of the proposed
      franchise  are  no more favorable or less burdensome than the
      terms and conditions of the existing franchise and grant  the
      franchise.  Provides the decision as to whether the terms and
      conditions  are  equivalent rests solely with the franchising
      authority.  Provides that counties and municipalities are not
      subject to suit for damages based upon the decision to  grant
      or   refusal   to   grant   additional  franchise.  Effective
      immediately.
                                                     LRB9001711DNsb
SB999 Engrossed                                LRB9001711DNsb
 1        AN ACT concerning community antenna  television  systems,
 2    amending named Acts.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Counties  Code  is  amended  by  changing
 6    Section 5-1095 as follows:
 7        (55 ILCS 5/5-1095) (from Ch. 34, par. 5-1095)
 8        Sec.   5-1095.   Community  antenna  television  systems;
 9    satellite transmitted television programming.
10        (a)  The County Board may license, tax or  franchise  the
11    business  of  operating a community antenna television system
12    or systems within the County and outside of  a  municipality,
13    as defined in Section 1-1-2 of the Illinois Municipal Code.
14        When  an  area is annexed to a municipality, the annexing
15    municipality shall thereby become the  franchising  authority
16    with  respect  to  that  portion  of  any  community  antenna
17    television  system  that,  immediately before annexation, had
18    provided cable television services within  the  annexed  area
19    under  a  franchise  granted  by the county, and the owner of
20    that community antenna television  system  shall  thereby  be
21    authorized  to  provide  cable television services within the
22    annexed area under the terms and provisions of  the  existing
23    franchise.   In  that instance, the franchise shall remain in
24    effect until, by its  terms,  it  expires,  except  that  any
25    franchise  fees  payable under the franchise shall be payable
26    only to the county for a period of 5 years or until,  by  its
27    terms,  the franchise expires, whichever occurs first.  After
28    the 5 year period,  any  franchise  fees  payable  under  the
29    franchise  shall be paid to the annexing municipality. In any
30    instance  in  which  a  duly  franchised  community   antenna
31    television  system  is  providing  cable  television services
SB999 Engrossed             -2-                LRB9001711DNsb
 1    within the annexing municipality at the time  of  annexation,
 2    the  annexing  municipality  may  permit  that  franchisee to
 3    extend its community antenna television system to the annexed
 4    area under terms and conditions that are no  more  burdensome
 5    nor  less  favorable  to  that  franchisee than those imposed
 6    under any community antenna television  franchise  applicable
 7    to   the  annexed  area  at  the  time  of  annexation.   The
 8    authorization to  extend  cable  television  service  to  the
 9    annexed  area  and  any  community  antenna television system
10    authorized to provide cable television  services  within  the
11    annexed  area  at the time of annexation shall not be subject
12    to the provisions of subsection (e) of this Section.
13        (b)  "Community antenna television  system"  as  used  in
14    this  Section,  means  any  facility  which is constructed in
15    whole or in part in, on, under or over any highway  or  other
16    public  place  and  which is operated to perform for hire the
17    service of receiving and amplifying the signals broadcast  by
18    one  or  more  television  stations  and  redistributing such
19    signals by wire, cable or  other  means  to  members  of  the
20    public  who  subscribe  to such service except that such term
21    does not include (i) any system which serves  fewer  than  50
22    subscribers   or  (ii)  any  system  which  serves  only  the
23    residents of one or more  apartment  dwellings  under  common
24    ownership,    control    or    management,   and   commercial
25    establishments located on the premises of such dwellings.
26        (c)  The authority hereby granted does  not  include  the
27    authority to license or franchise telephone companies subject
28    to  the  jurisdiction  of the Illinois Commerce Commission or
29    the Federal  Communications  Commission  in  connection  with
30    furnishing circuits, wires, cables or other facilities to the
31    operator of a community antenna television system.
32        The  County  Board may, in the course of franchising such
33    community antenna television system, grant to such franchisee
34    the authority and the right and permission to use all  public
SB999 Engrossed             -3-                LRB9001711DNsb
 1    streets,  rights  of  way,  alleys,  ways  for public service
 2    facilities, parks,  playgrounds,  school  grounds,  or  other
 3    public  grounds,  in  which such county may have an interest,
 4    for the construction, installation,  operation,  maintenance,
 5    alteration, addition, extension or improvement of a community
 6    antenna television system.
 7        Any  charge  imposed  by  a  community antenna television
 8    system franchised pursuant to this Section for the raising or
 9    removal of cables or lines to permit passage on, to or from a
10    street  shall  not  exceed  the  reasonable  costs  of   work
11    reasonably necessary to safely permit such passage.  Pursuant
12    to subsections (h) and (i) of Section 6 of Article VII of the
13    Constitution  of  the State of Illinois, the General Assembly
14    declares the regulation of charges which may  be  imposed  by
15    community  antenna  television  systems  for  the  raising or
16    removal of cables or lines to permit passage on, to  or  from
17    streets is a power or function to be exercised exclusively by
18    the  State  and not to be exercised or performed concurrently
19    with the State by any unit of local government, including any
20    home rule unit.
21        The  County  Board  may,  upon  written  request  by  the
22    franchisee of a community antenna television system, exercise
23    its right  of  eminent  domain  solely  for  the  purpose  of
24    granting  an  easement right no greater than 8 feet in width,
25    extending no greater than 8 feet from any lot  line  for  the
26    purpose  of  extending cable across any parcel of property in
27    the manner  provided  for  by  the  law  of  eminent  domain,
28    provided,  however,  such franchisee deposits with the county
29    sufficient security to pay all costs incurred by  the  county
30    in the exercise of its right of eminent domain.
31        Except   as   specifically  provided  otherwise  in  this
32    Section, this Section is not a limitation on  any  home  rule
33    county.
34        (d)  The   General   Assembly  finds  and  declares  that
SB999 Engrossed             -4-                LRB9001711DNsb
 1    satellite-transmitted  television   programming   should   be
 2    available   to   those   who  desire  to  subscribe  to  such
 3    programming and that decoding devices should be obtainable at
 4    reasonable  prices  by  those  who  are  unable   to   obtain
 5    satellite-transmitted  television  programming  through  duly
 6    franchised community antenna television systems.
 7        In  any  instance  in  which a person is unable to obtain
 8    satellite-transmitted television programming through  a  duly
 9    franchised community antenna television system either because
10    the  municipality and county in which such person resides has
11    not granted a franchise to operate and maintain  a  community
12    antenna  television  system,  or  because the duly franchised
13    community antenna television system operator  does  not  make
14    cable  television  services  available  to  such  person, any
15    programming  company  that   delivers   satellite-transmitted
16    television  programming  in scrambled or encrypted form shall
17    ensure that devices for decryption of  such  programming  are
18    made  available  to  such person, through the local community
19    antenna television operator  or  directly,  for  purchase  or
20    lease at prices reasonably related to the cost of manufacture
21    and distribution of such devices.
22        (e)  The  General  Assembly  finds  and declares that, in
23    order to ensure that community  antenna  television  services
24    are  provided  in  an  orderly,  competitive and economically
25    sound manner, the best interests of the public will be served
26    by  the  establishment  of  certain  minimum  standards   and
27    procedures  for  the  granting of additional cable television
28    franchises.
29        Subject  to  the  provisions  of  this  subsection,   the
30    authority  granted  under subsection (a) hereof shall include
31    the authority to license, franchise and  tax  more  than  one
32    cable   operator  to  provide  community  antenna  television
33    services  within  the  territorial   limits   of   a   single
34    franchising  authority.  For purposes of this subsection (e),
SB999 Engrossed             -5-                LRB9001711DNsb
 1    the term:
 2             (i)  "Existing cable television franchise"  means  a
 3        community  antenna  television  franchise  granted  by  a
 4        county  which  is in use at the time such county receives
 5        an application or request by another cable operator for a
 6        franchise to provide cable  antenna  television  services
 7        within  all  or any portion of the territorial area which
 8        is or may be served under the existing  cable  television
 9        franchise.
10             (ii)  "Additional  cable television franchise" means
11        a  franchise  pursuant   to   which   community   antenna
12        television   services   may   be   provided   within  the
13        territorial areas, or any portion thereof, which  may  be
14        served under an existing cable television franchise.
15             (iii)  "Franchising  Authority"  is  defined as that
16        term  is  defined  under  Section  602(9)  of  the  Cable
17        Communications Policy Act of 1984, Public Law 98-549.
18             (iv)  "Cable operator" is defined as  that  term  is
19        defined  under Section 602(4) of the Cable Communications
20        Policy Act of 1984, Public Law 98-549.
21        Before granting an additional cable television franchise,
22    the franchising authority shall:
23             (1)  Give written notice to the owner or operator of
24        any other community antenna television system  franchised
25        to serve all or any portion of the territorial area to be
26        served  by  such  additional  cable television franchise,
27        identifying the applicant for such  additional  franchise
28        and  specifying  the  date,  time  and place at which the
29        franchising authority shall conduct  public  hearings  to
30        consider  and  determine  whether  such  additional cable
31        television franchise should be granted.
32             (2)  Conduct  a  public  hearing  to  determine  the
33        public  need  for  such   additional   cable   television
34        franchise,   the  capacity  of  public  rights-of-way  to
SB999 Engrossed             -6-                LRB9001711DNsb
 1        accommodate such additional community antenna  television
 2        services,  the  potential disruption to existing users of
 3        public  rights-of-way  to  be  used  by  such  additional
 4        franchise  applicant  to  complete  construction  and  to
 5        provide cable television  services  within  the  proposed
 6        franchise  area,  the  long  term economic impact of such
 7        additional cable television system within the  community,
 8        and such other factors as the franchising authority shall
 9        deem appropriate.
10             (3)  Determine,  based  upon  the foregoing factors,
11        whether  it  is  in  the  best  interest  of  the  county
12        municipality to grant such  additional  cable  television
13        franchise.  In  determining  whether  it  is  in the best
14        interest of the  county  to  grant  an  additional  cable
15        television  franchise,  the  franchising  authority shall
16        consider the foregoing factors set  forth  in  subsection
17        (e)(2)  and  shall  consider  and  evaluate the terms and
18        conditions of the existing cable television franchise and
19        the proposed terms and conditions of the additional cable
20        television franchise in their entirety.
21             (4)  If,  based  upon  the  foregoing  factors,  the
22        franchising authority determines shall determine that  it
23        is  in the best interest of the county municipality to do
24        so,  it  may  grant  the  additional   cable   television
25        franchise, the franchising authority shall make a written
26        finding  provided  that  the  no  such  additional  cable
27        television  franchise shall be granted under terms and or
28        conditions of the additional cable  television  franchise
29        are  no  more  favorable  nor  or  less burdensome to the
30        applicant than those required under  the  existing  cable
31        television  franchise  (,  including  but  not limited to
32        terms and conditions pertaining to the territorial extent
33        of the franchise, system  design,  technical  performance
34        standards,  construction  schedules,  performance  bonds,
SB999 Engrossed             -7-                LRB9001711DNsb
 1        standards  for  construction  and  installation  of cable
 2        television facilities,  service  to  subscribers,  public
 3        educational   and   governmental   access   channels  and
 4        programming,   production   assistance,   liability   and
 5        indemnification,  and  franchise  fees)  and  grant   the
 6        franchise.
 7        The  determination as to whether the terms and conditions
 8    of  any  additional  cable  television  franchise  are   more
 9    favorable  or  less  burdensome  to  the applicant than those
10    required under the existing cable television franchise  rests
11    solely with the franchising authority.
12        No county shall be subject to suit for damages based upon
13    the  county's  determination to grant or its refusal to grant
14    an additional cable television  franchise,  provided  that  a
15    public  hearing  as  herein  provided  has  been held and the
16    franchising authority has determined that it is  not  in  the
17    best  interest  of  the county to grant or to refuse to grant
18    such additional franchise, as the case may be.
19        It is declared to be the law of this State,  pursuant  to
20    paragraphs  (h)  and  (i)  of Section 6 of Article VII of the
21    Illinois Constitution,  that  the  establishment  of  minimum
22    standards and procedures for the granting of additional cable
23    television  franchises  as provided in this subsection (e) is
24    an exclusive  State  power  and  function  that  may  not  be
25    exercised concurrently by a home rule unit.
26    (Source: P.A. 86-962; 86-1410.)
27        Section  10.  The  Illinois  Municipal Code is amended by
28    changing Section 11-42-11 as follows:
29        (65 ILCS 5/11-42-11) (from Ch. 24, par. 11-42-11)
30        Sec. 11-42-11.   Community  antenna  television  systems;
31    satellite transmitted television programming.
32        (a)  The  corporate  authorities of each municipality may
SB999 Engrossed             -8-                LRB9001711DNsb
 1    license, franchise  and  tax  the  business  of  operating  a
 2    community  antenna  television system as hereinafter defined.
 3    In municipalities with less than 2,000,000  inhabitants,  the
 4    corporate  authorities  may  own  (or  lease  as  lessee) and
 5    operate  a  community  antenna  television  system.    Before
 6    acquiring,   constructing,   or  commencing  operation  of  a
 7    community antenna television system, the  municipality  shall
 8    comply with the following:
 9             (1)  Give written notice to the owner or operator of
10        any  other community antenna television system franchised
11        to serve all or any portion of the territorial area to be
12        served by the municipality's community antenna television
13        system, specifying the date, time, and place at which the
14        municipality shall conduct public  hearings  to  consider
15        and  determine  whether  the municipality should acquire,
16        construct, or commence operation of a  community  antenna
17        television   system.    The   public  hearings  shall  be
18        conducted at least 14 days after this notice is given.
19             (2)  Publish a notice of the hearing in  2  or  more
20        newspapers   published  in  the  county,  city,  village,
21        incorporated town, or town, as the case may be.  If there
22        is no such newspaper, then notice shall be  published  in
23        any  2  or  more  newspapers  published in the county and
24        having a general circulation  throughout  the  community.
25        The  public  hearings shall be conducted at least 14 days
26        after this notice is given.
27             (3)  Conduct a public hearing to determine the means
28        by which construction, maintenance, and operation of  the
29        system will be financed, including whether the use of tax
30        revenues or other fees will be required.
31        (b)  The  words  "community  antenna  television  system"
32    shall  mean  any facility which is constructed in whole or in
33    part in, on, under or over any highway or other public  place
34    and  which  is  operated  to  perform for hire the service of
SB999 Engrossed             -9-                LRB9001711DNsb
 1    receiving and amplifying the signals broadcast by one or more
 2    television stations and redistributing such signals by  wire,
 3    cable  or  other means to members of the public who subscribe
 4    to such  service;  except  that  such  definition  shall  not
 5    include   (i)  any  system  which  serves  fewer  than  fifty
 6    subscribers,  or  (ii)  any  system  which  serves  only  the
 7    residents of one or more  apartment  dwellings  under  common
 8    ownership,    control    or    management,   and   commercial
 9    establishments located on the premises of such dwellings.
10        (c)  The  authority  hereby  granted  does  not   include
11    authority  to  license,  franchise or tax telephone companies
12    subject to jurisdiction of the Illinois  Commerce  Commission
13    or  the  Federal Communications Commission in connection with
14    the  furnishing  of  circuits,  wires,  cables,   and   other
15    facilities  to the operator of a community antenna television
16    system.
17        The corporate authorities of each  municipality  may,  in
18    the  course  of franchising such community antenna television
19    system, grant to such franchisee the authority and the  right
20    and  permission  to  use  all  public streets, rights of way,
21    alleys,  ways   for   public   service   facilities,   parks,
22    playgrounds,  school  grounds,  or  other  public grounds, in
23    which  such  municipality  may  have  an  interest,  for  the
24    construction,    installation,    operation,     maintenance,
25    alteration, addition, extension or improvement of a community
26    antenna television system.
27        Any  charge  imposed  by  a  community antenna television
28    system franchised pursuant to this Section for the raising or
29    removal of cables or lines to permit passage on, to or from a
30    street  shall  not  exceed  the  reasonable  costs  of   work
31    reasonably necessary to safely permit such passage.  Pursuant
32    to subsections (h) and (i) of Section 6 of Article VII of the
33    Constitution  of  the State of Illinois, the General Assembly
34    declares the regulation of charges which may  be  imposed  by
SB999 Engrossed             -10-               LRB9001711DNsb
 1    community  antenna  television  systems  for  the  raising or
 2    removal of cables or lines to permit passage on, to  or  from
 3    streets is a power or function to be exercised exclusively by
 4    the  State  and not to be exercised or performed concurrently
 5    with the State by any unit of local government, including any
 6    home rule unit.
 7        The  municipality  may,  upon  written  request  by   the
 8    franchisee of a community antenna television system, exercise
 9    its  right  of  eminent  domain  solely  for  the  purpose of
10    granting an easement right no greater than 8 feet  in  width,
11    extending  no  greater  than 8 feet from any lot line for the
12    purpose of extending cable across any parcel of  property  in
13    the  manner  provided by the law of eminent domain, provided,
14    however,  such  franchisee  deposits  with  the  municipality
15    sufficient  security  to  pay  all  costs  incurred  by   the
16    municipality in the exercise of its right of eminent domain.
17        (d)  The   General   Assembly  finds  and  declares  that
18    satellite-transmitted  television   programming   should   be
19    available   to   those   who  desire  to  subscribe  to  such
20    programming and that decoding devices should be obtainable at
21    reasonable  prices  by  those  who  are  unable   to   obtain
22    satellite-transmitted  television  programming  through  duly
23    franchised community antenna television systems.
24        In  any  instance  in  which a person is unable to obtain
25    satellite-transmitted television programming through  a  duly
26    franchised community antenna television system either because
27    the  municipality and county in which such person resides has
28    not granted a franchise to operate and maintain  a  community
29    antenna  television  system,  or  because the duly franchised
30    community antenna television system operator  does  not  make
31    cable  television  services  available  to  such  person, any
32    programming  company  that   delivers   satellite-transmitted
33    television  programming  in scrambled or encrypted form shall
34    ensure that devices for description of such  programming  are
SB999 Engrossed             -11-               LRB9001711DNsb
 1    made  available  to  such person, through the local community
 2    antenna television operator  or  directly,  for  purchase  or
 3    lease at prices reasonably related to the cost of manufacture
 4    and distribution of such devices.
 5        (e)  The  General  Assembly  finds  and declares that, in
 6    order to ensure that community  antenna  television  services
 7    are  provided  in  an  orderly,  competitive and economically
 8    sound manner, the best interests of the public will be served
 9    by  the  establishment  of  certain  minimum  standards   and
10    procedures  for  the  granting of additional cable television
11    franchises.
12        Subject  to  the  provisions  of  this  subsection,   the
13    authority  granted  under subsection (a) hereof shall include
14    the authority to license, franchise and  tax  more  than  one
15    cable   operator  to  provide  community  antenna  television
16    services within the corporate limits of a single  franchising
17    authority.  For purposes of this subsection (e), the term:
18             (i)  "Existing  cable  television franchise" means a
19        community  antenna  television  franchise  granted  by  a
20        municipality  which  is  in  use   at   the   time   such
21        municipality   receives  an  application  or  request  by
22        another cable operator for a franchise to  provide  cable
23        antenna  television services within all or any portion of
24        the territorial area which is or may be served under  the
25        existing cable television franchise.
26             (ii)  "Additional  cable television franchise" means
27        a  franchise  pursuant   to   which   community   antenna
28        television   services   may   be   provided   within  the
29        territorial areas, or any portion thereof, which  may  be
30        served under an existing cable television franchise.
31             (iii)  "Franchising  Authority"  is  defined as that
32        term  is  defined  under  Section  602(9)  of  the  Cable
33        Communications Policy Act of 1984, Public Law 98-549, but
34        does not include any municipality with  a  population  of
SB999 Engrossed             -12-               LRB9001711DNsb
 1        1,000,000 or more.
 2             (iv)  "Cable  operator"  is  defined as that term is
 3        defined under Section 602(4) of the Cable  Communications
 4        Policy Act of 1984, Public Law 98-549.
 5        Before granting an additional cable television franchise,
 6    the franchising authority shall:
 7             (1)  Give written notice to the owner or operator of
 8        any  other community antenna television system franchised
 9        to serve all or any portion of the territorial area to be
10        served by such  additional  cable  television  franchise,
11        identifying  the  applicant for such additional franchise
12        and specifying the date, time  and  place  at  which  the
13        franchising  authority  shall  conduct public hearings to
14        consider and  determine  whether  such  additional  cable
15        television franchise should be granted.
16             (2)  Conduct  a  public  hearing  to  determine  the
17        public   need   for   such  additional  cable  television
18        franchise,  the  capacity  of  public  rights-of-way   to
19        accommodate  such additional community antenna television
20        services, the potential disruption to existing  users  of
21        public  rights-of-way  to  be  used  by  such  additional
22        franchise  applicant  to  complete  construction  and  to
23        provide  cable  television  services  within the proposed
24        franchise area, the long term  economic  impact  of  such
25        additional  cable television system within the community,
26        and such other factors as the franchising authority shall
27        deem appropriate.
28             (3)  Determine, based upon  the  foregoing  factors,
29        whether it is in the best interest of the municipality to
30        grant  such  additional  cable  television  franchise. In
31        determining whether it is in the  best  interest  of  the
32        municipality  to  grant  an  additional  cable television
33        franchise, the franchising authority shall  consider  the
34        foregoing  factors  set  forth  in  subsection (e)(2) and
SB999 Engrossed             -13-               LRB9001711DNsb
 1        shall consider and evaluate the terms and  conditions  of
 2        the  existing cable television franchise and the proposed
 3        terms and conditions of the additional  cable  television
 4        franchise in their entirety.
 5             (4)  If,  based  upon  the  foregoing  factors,  the
 6        franchising  authority determines shall determine that it
 7        is in the best interest of the municipality to do so,  it
 8        may  grant the additional cable television franchise, the
 9        franchising  authority  shall  make  a  written   finding
10        provided  that  the  no  such additional cable television
11        franchise shall be granted under terms and or  conditions
12        of  the additional cable television franchise are no more
13        favorable nor or less burdensome to  the  applicant  than
14        those   required  under  the  existing  cable  television
15        franchise (, including  but  not  limited  to  terms  and
16        conditions  pertaining  to  the territorial extent of the
17        franchise,   system   design,    technical    performance
18        standards,   construction  schedules,  performance bonds,
19        standards for  construction  and  installation  of  cable
20        television  facilities,  service  to  subscribers, public
21        educational  and   governmental   access   channels   and
22        programming,   production   assistance,   liability   and
23        indemnification,   and  franchise  fees)  and  grant  the
24        franchise.
25        The determination as to whether the terms and  conditions
26    of   any  additional  cable  television  franchise  are  more
27    favorable or less burdensome  to  the  applicant  than  those
28    required  under the existing cable television franchise rests
29    solely with the franchising authority.
30        No municipality shall be  subject  to  suit  for  damages
31    based  upon  the municipality's determination to grant or its
32    refusal to grant an additional  cable  television  franchise,
33    provided  that  a  public hearing as herein provided has been
34    held and the franchising authority has determined that it  is
SB999 Engrossed             -14-               LRB9001711DNsb
 1    not  in  the best interest of the municipality to grant or to
 2    refuse to grant such additional franchise, as  the  case  may
 3    be.
 4        It  is  declared to be the law of this State, pursuant to
 5    paragraphs (h) and (i) of Section 6 of  Article  VII  of  the
 6    Illinois  Constitution,  that  the  establishment  of minimum
 7    standards and procedures for the granting of additional cable
 8    television franchises by  municipalities  with  a  population
 9    less  than 1,000,000 as provided in this subsection (e) is an
10    exclusive State power and function that may not be  exercised
11    concurrently by a home rule unit.
12    (Source: P.A. 89-657, eff. 8-14-96.)
13        Section  99.  Effective date.  This Act takes effect upon
14    becoming law.

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