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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 12municipalityto 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 determinesshall determinethat it 23 is in the best interest of the countymunicipalitytodo24so, it maygrant the additional cable television 25 franchise, the franchising authority shall make a written 26 findingprovidedthat theno such additional cable27television franchise shall be granted underterms andor28 conditions of the additional cable television franchise 29 are no more favorable nororless 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 isnotin 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 determinesshall determinethat it 7 is in the best interest of the municipality todo so, it8maygrant the additional cable television franchise, the 9 franchising authority shall make a written finding 10providedthat theno such additional cable television11franchise shall be granted underterms andorconditions 12 of the additional cable television franchise are no more 13 favorable nororless 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 1notin 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.