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90_SB0999ham001 LRB9001711JSmgam05 1 AMENDMENT TO SENATE BILL 999 2 AMENDMENT NO. . Amend Senate Bill 999 by replacing 3 the title with the following: 4 "AN ACT concerning community antenna television systems, 5 amending named Acts."; and 6 by replacing everything after the enacting clause with the 7 following: 8 "Section 5. The Counties Code is amended by changing 9 Section 5-1095 as follows: 10 (55 ILCS 5/5-1095) (from Ch. 34, par. 5-1095) 11 Sec. 5-1095. Community antenna television systems; 12 satellite transmitted television programming. 13 (a) The County Board may license, tax or franchise the 14 business of operating a community antenna television system 15 or systems within the County and outside of a municipality, 16 as defined in Section 1-1-2 of the Illinois Municipal Code. 17 When an area is annexed to a municipality, the annexing 18 municipality shall thereby become the franchising authority 19 with respect to that portion of any community antenna 20 television system that, immediately before annexation, had 21 provided cable television services within the annexed area -2- LRB9001711JSmgam05 1 under a franchise granted by the county, and the owner of 2 that community antenna television system shall thereby be 3 authorized to provide cable television services within the 4 annexed area under the terms and provisions of the existing 5 franchise. In that instance, the franchise shall remain in 6 effect until, by its terms, it expires, except that any 7 franchise fees payable under the franchise shall be payable 8 only to the county for a period of 5 years or until, by its 9 terms, the franchise expires, whichever occurs first. After 10 the 5 year period, any franchise fees payable under the 11 franchise shall be paid to the annexing municipality. In any 12 instance in which a duly franchised community antenna 13 television system is providing cable television services 14 within the annexing municipality at the time of annexation, 15 the annexing municipality may permit that franchisee to 16 extend its community antenna television system to the annexed 17 area under terms and conditions that are no more burdensome 18 nor less favorable to that franchisee than those imposed 19 under any community antenna television franchise applicable 20 to the annexed area at the time of annexation. The 21 authorization to extend cable television service to the 22 annexed area and any community antenna television system 23 authorized to provide cable television services within the 24 annexed area at the time of annexation shall not be subject 25 to the provisions of subsection (e) of this Section. 26 (b) "Community antenna television system" as used in 27 this Section, means any facility which is constructed in 28 whole or in part in, on, under or over any highway or other 29 public place and which is operated to perform for hire the 30 service of receiving and amplifying the signals broadcast by 31 one or more television stations and redistributing such 32 signals by wire, cable or other means to members of the 33 public who subscribe to such service except that such term 34 does not include (i) any system which serves fewer than 50 -3- LRB9001711JSmgam05 1 subscribers or (ii) any system which serves only the 2 residents of one or more apartment dwellings under common 3 ownership, control or management, and commercial 4 establishments located on the premises of such dwellings. 5 (c) The authority hereby granted does not include the 6 authority to license or franchise telephone companies subject 7 to the jurisdiction of the Illinois Commerce Commission or 8 the Federal Communications Commission in connection with 9 furnishing circuits, wires, cables or other facilities to the 10 operator of a community antenna television system. 11 The County Board may, in the course of franchising such 12 community antenna television system, grant to such franchisee 13 the authority and the right and permission to use all public 14 streets, rights of way, alleys, ways for public service 15 facilities, parks, playgrounds, school grounds, or other 16 public grounds, in which such county may have an interest, 17 for the construction, installation, operation, maintenance, 18 alteration, addition, extension or improvement of a community 19 antenna television system. 20 Any charge imposed by a community antenna television 21 system franchised pursuant to this Section for the raising or 22 removal of cables or lines to permit passage on, to or from a 23 street shall not exceed the reasonable costs of work 24 reasonably necessary to safely permit such passage. Pursuant 25 to subsections (h) and (i) of Section 6 of Article VII of the 26 Constitution of the State of Illinois, the General Assembly 27 declares the regulation of charges which may be imposed by 28 community antenna television systems for the raising or 29 removal of cables or lines to permit passage on, to or from 30 streets is a power or function to be exercised exclusively by 31 the State and not to be exercised or performed concurrently 32 with the State by any unit of local government, including any 33 home rule unit. 34 The County Board may, upon written request by the -4- LRB9001711JSmgam05 1 franchisee of a community antenna television system, exercise 2 its right of eminent domain solely for the purpose of 3 granting an easement right no greater than 8 feet in width, 4 extending no greater than 8 feet from any lot line for the 5 purpose of extending cable across any parcel of property in 6 the manner provided for by the law of eminent domain, 7 provided, however, such franchisee deposits with the county 8 sufficient security to pay all costs incurred by the county 9 in the exercise of its right of eminent domain. 10 Except as specifically provided otherwise in this 11 Section, this Section is not a limitation on any home rule 12 county. 13 (d) The General Assembly finds and declares that 14 satellite-transmitted television programming should be 15 available to those who desire to subscribe to such 16 programming and that decoding devices should be obtainable at 17 reasonable prices by those who are unable to obtain 18 satellite-transmitted television programming through duly 19 franchised community antenna television systems. 20 In any instance in which a person is unable to obtain 21 satellite-transmitted television programming through a duly 22 franchised community antenna television system either because 23 the municipality and county in which such person resides has 24 not granted a franchise to operate and maintain a community 25 antenna television system, or because the duly franchised 26 community antenna television system operator does not make 27 cable television services available to such person, any 28 programming company that delivers satellite-transmitted 29 television programming in scrambled or encrypted form shall 30 ensure that devices for decryption of such programming are 31 made available to such person, through the local community 32 antenna television operator or directly, for purchase or 33 lease at prices reasonably related to the cost of manufacture 34 and distribution of such devices. -5- LRB9001711JSmgam05 1 (e) The General Assembly finds and declares that, in 2 order to ensure that community antenna television services 3 are provided in an orderly, competitive and economically 4 sound manner, the best interests of the public will be served 5 by the establishment of certain minimum standards and 6 procedures for the granting of additional cable television 7 franchises. 8 Subject to the provisions of this subsection, the 9 authority granted under subsection (a) hereof shall include 10 the authority to license, franchise and tax more than one 11 cable operator to provide community antenna television 12 services within the territorial limits of a single 13 franchising authority. For purposes of this subsection (e), 14 the term: 15 (i) "Existing cable television franchise" means a 16 community antenna television franchise granted by a 17 county which is in use at the time such county receives 18 an application or request by another cable operator for a 19 franchise to provide cable antenna television services 20 within all or any portion of the territorial area which 21 is or may be served under the existing cable television 22 franchise. 23 (ii) "Additional cable television franchise" means 24 a franchise pursuant to which community antenna 25 television services may be provided within the 26 territorial areas, or any portion thereof, which may be 27 served under an existing cable television franchise. 28 (iii) "Franchising Authority" is defined as that 29 term is defined under Section 602(9) of the Cable 30 Communications Policy Act of 1984, Public Law 98-549. 31 (iv) "Cable operator" is defined as that term is 32 defined under Section 602(4) of the Cable Communications 33 Policy Act of 1984, Public Law 98-549. 34 Before granting an additional cable television franchise, -6- LRB9001711JSmgam05 1 the franchising authority shall: 2 (1) Give written notice to the owner or operator of 3 any other community antenna television system franchised 4 to serve all or any portion of the territorial area to be 5 served by such additional cable television franchise, 6 identifying the applicant for such additional franchise 7 and specifying the date, time and place at which the 8 franchising authority shall conduct public hearings to 9 consider and determine whether such additional cable 10 television franchise should be granted. 11 (2) Conduct a public hearing to determine the 12 public need for such additional cable television 13 franchise, the capacity of public rights-of-way to 14 accommodate such additional community antenna television 15 services, the potential disruption to existing users of 16 public rights-of-way to be used by such additional 17 franchise applicant to complete construction and to 18 provide cable television services within the proposed 19 franchise area, the long term economic impact of such 20 additional cable television system within the community, 21 and such other factors as the franchising authority shall 22 deem appropriate. 23 (3) Determine, based upon the foregoing factors, 24 whether it is in the best interest of the county 25municipalityto grant such additional cable television 26 franchise. 27 (4) If the franchising authority shall determine 28 that it is in the best interest of the county 29municipalityto do so, it may grant the additional cable 30 television franchise. Except as provided in paragraph 31 (5) of this subsection (e),provided thatno such 32 additional cable television franchise shall be granted 33 under terms or conditions more favorable or less 34 burdensome to the applicant than those required under the -7- LRB9001711JSmgam05 1 existing cable television franchise, including but not 2 limited to terms and conditions pertaining to the 3 territorial extent of the franchise, system design, 4 technical performance standards, construction schedules, 5 performance bonds, standards for construction and 6 installation of cable television facilities, service to 7 subscribers, public educational and governmental access 8 channels and programming, production assistance, 9 liability and indemnification, and franchise fees. 10 (5) Unless the existing cable television franchise 11 provides that any additional cable television franchise 12 shall be subject to the same terms or substantially 13 equivalent terms and conditions as those of the existing 14 cable television franchise, the franchising authority may 15 grant an additional cable television franchise under 16 different terms and conditions than those of the existing 17 franchise, in which event the franchising authority shall 18 enter into good faith negotiations with the existing 19 franchisee and shall, within 120 days after the effective 20 date of the additional cable television franchise, modify 21 the existing cable television franchise in a manner and 22 to the extent necessary to ensure that neither the 23 existing cable television franchise nor the additional 24 cable television franchise, each considered in its 25 entirety, provides a competitive advantage over the 26 other, provided that prior to modifying the existing 27 cable television franchise, the franchising authority 28 shall have conducted a public hearing to consider the 29 proposed modification. No modification in the terms and 30 conditions of the existing cable television franchise 31 shall oblige the existing cable television franchisee (1) 32 to make any additional payment to the franchising 33 authority, including the payment of any additional 34 franchise fee, (2) to engage in any additional -8- LRB9001711JSmgam05 1 construction of the existing cable television system or, 2 (3) to modify the specifications or design of the 3 existing cable television system; and the inclusion of 4 the factors identified in items (2) and (3) shall not be 5 considered in determining whether either franchise 6 considered in its entirety, has a competitive advantage 7 over the other except to the extent that the additional 8 franchisee provides additional video or data services or 9 the equipment or facilities necessary to generate and or 10 carry such service. No modification in the terms and 11 conditions of the existing cable television franchise 12 shall be made if the existing cable television franchisee 13 elects to continue to operate under all terms and 14 conditions of the existing franchise. 15 If within the 120 day period the franchising 16 authority and the existing cable television franchisee 17 are unable to reach agreement on modifications to the 18 existing cable television franchise, then the franchising 19 authority shall modify the existing cable television 20 franchise, effective 45 days thereafter, in a manner, and 21 only to the extent, that the terms and conditions of the 22 existing cable television franchise shall no longer 23 impose any duty or obligation on the existing franchisee 24 which is not also imposed under the additional cable 25 television franchise; however, if by the modification the 26 existing cable television franchisee is relieved of 27 duties or obligations not imposed under the additional 28 cable television franchise, then within the same 45 days 29 and following a public hearing concerning modification of 30 the additional cable television franchise within that 45 31 day period, the franchising authority shall modify the 32 additional cable television franchise to the extent 33 necessary to insure that neither the existing cable 34 television franchise nor the additional cable television -9- LRB9001711JSmgam05 1 franchise, each considered in its entirety, shall have a 2 competitive advantage over the other. 3 No county shall be subject to suit for damages based upon 4 the county's determination to grant or its refusal to grant 5 an additional cable television franchise, provided that a 6 public hearing as herein provided has been held and the 7 franchising authority has determined that it isnotin the 8 best interest of the county to grant or refuse to grant such 9 additional franchise, as the case may be. 10 It is declared to be the law of this State, pursuant to 11 paragraphs (h) and (i) of Section 6 of Article VII of the 12 Illinois Constitution, that the establishment of minimum 13 standards and procedures for the granting of additional cable 14 television franchises as provided in this subsection (e) is 15 an exclusive State power and function that may not be 16 exercised concurrently by a home rule unit. 17 (Source: P.A. 86-962; 86-1410; revised 1-27-97.) 18 Section 10. The Illinois Municipal Code is amended by 19 changing Section 11-42-11 as follows: 20 (65 ILCS 5/11-42-11) (from Ch. 24, par. 11-42-11) 21 Sec. 11-42-11. Community antenna television systems; 22 satellite transmitted television programming. 23 (a) The corporate authorities of each municipality may 24 license, franchise and tax the business of operating a 25 community antenna television system as hereinafter defined. 26 In municipalities with less than 2,000,000 inhabitants, the 27 corporate authorities may own (or lease as lessee) and 28 operate a community antenna television system. Before 29 acquiring, constructing, or commencing operation of a 30 community antenna television system, the municipality shall 31 comply with the following: 32 (1) Give written notice to the owner or operator of -10- LRB9001711JSmgam05 1 any other community antenna television system franchised 2 to serve all or any portion of the territorial area to be 3 served by the municipality's community antenna television 4 system, specifying the date, time, and place at which the 5 municipality shall conduct public hearings to consider 6 and determine whether the municipality should acquire, 7 construct, or commence operation of a community antenna 8 television system. The public hearings shall be 9 conducted at least 14 days after this notice is given. 10 (2) Publish a notice of the hearing in 2 or more 11 newspapers published in the county, city, village, 12 incorporated town, or town, as the case may be. If there 13 is no such newspaper, then notice shall be published in 14 any 2 or more newspapers published in the county and 15 having a general circulation throughout the community. 16 The public hearings shall be conducted at least 14 days 17 after this notice is given. 18 (3) Conduct a public hearing to determine the means 19 by which construction, maintenance, and operation of the 20 system will be financed, including whether the use of tax 21 revenues or other fees will be required. 22 (b) The words "community antenna television system" 23 shall mean any facility which is constructed in whole or in 24 part in, on, under or over any highway or other public place 25 and which is operated to perform for hire the service of 26 receiving and amplifying the signals broadcast by one or more 27 television stations and redistributing such signals by wire, 28 cable or other means to members of the public who subscribe 29 to such service; except that such definition shall not 30 include (i) any system which serves fewer than fifty 31 subscribers, or (ii) any system which serves only the 32 residents of one or more apartment dwellings under common 33 ownership, control or management, and commercial 34 establishments located on the premises of such dwellings. -11- LRB9001711JSmgam05 1 (c) The authority hereby granted does not include 2 authority to license, franchise or tax telephone companies 3 subject to jurisdiction of the Illinois Commerce Commission 4 or the Federal Communications Commission in connection with 5 the furnishing of circuits, wires, cables, and other 6 facilities to the operator of a community antenna television 7 system. 8 The corporate authorities of each municipality may, in 9 the course of franchising such community antenna television 10 system, grant to such franchisee the authority and the right 11 and permission to use all public streets, rights of way, 12 alleys, ways for public service facilities, parks, 13 playgrounds, school grounds, or other public grounds, in 14 which such municipality may have an interest, for the 15 construction, installation, operation, maintenance, 16 alteration, addition, extension or improvement of a community 17 antenna television system. 18 Any charge imposed by a community antenna television 19 system franchised pursuant to this Section for the raising or 20 removal of cables or lines to permit passage on, to or from a 21 street shall not exceed the reasonable costs of work 22 reasonably necessary to safely permit such passage. Pursuant 23 to subsections (h) and (i) of Section 6 of Article VII of the 24 Constitution of the State of Illinois, the General Assembly 25 declares the regulation of charges which may be imposed by 26 community antenna television systems for the raising or 27 removal of cables or lines to permit passage on, to or from 28 streets is a power or function to be exercised exclusively by 29 the State and not to be exercised or performed concurrently 30 with the State by any unit of local government, including any 31 home rule unit. 32 The municipality may, upon written request by the 33 franchisee of a community antenna television system, exercise 34 its right of eminent domain solely for the purpose of -12- LRB9001711JSmgam05 1 granting an easement right no greater than 8 feet in width, 2 extending no greater than 8 feet from any lot line for the 3 purpose of extending cable across any parcel of property in 4 the manner provided by the law of eminent domain, provided, 5 however, such franchisee deposits with the municipality 6 sufficient security to pay all costs incurred by the 7 municipality in the exercise of its right of eminent domain. 8 (d) The General Assembly finds and declares that 9 satellite-transmitted television programming should be 10 available to those who desire to subscribe to such 11 programming and that decoding devices should be obtainable at 12 reasonable prices by those who are unable to obtain 13 satellite-transmitted television programming through duly 14 franchised community antenna television systems. 15 In any instance in which a person is unable to obtain 16 satellite-transmitted television programming through a duly 17 franchised community antenna television system either because 18 the municipality and county in which such person resides has 19 not granted a franchise to operate and maintain a community 20 antenna television system, or because the duly franchised 21 community antenna television system operator does not make 22 cable television services available to such person, any 23 programming company that delivers satellite-transmitted 24 television programming in scrambled or encrypted form shall 25 ensure that devices for description of such programming are 26 made available to such person, through the local community 27 antenna television operator or directly, for purchase or 28 lease at prices reasonably related to the cost of manufacture 29 and distribution of such devices. 30 (e) The General Assembly finds and declares that, in 31 order to ensure that community antenna television services 32 are provided in an orderly, competitive and economically 33 sound manner, the best interests of the public will be served 34 by the establishment of certain minimum standards and -13- LRB9001711JSmgam05 1 procedures for the granting of additional cable television 2 franchises. 3 Subject to the provisions of this subsection, the 4 authority granted under subsection (a) hereof shall include 5 the authority to license, franchise and tax more than one 6 cable operator to provide community antenna television 7 services within the corporate limits of a single franchising 8 authority. For purposes of this subsection (e), the term: 9 (i) "Existing cable television franchise" means a 10 community antenna television franchise granted by a 11 municipality which is in use at the time such 12 municipality receives an application or request by 13 another cable operator for a franchise to provide cable 14 antenna television services within all or any portion of 15 the territorial area which is or may be served under the 16 existing cable television franchise. 17 (ii) "Additional cable television franchise" means 18 a franchise pursuant to which community antenna 19 television services may be provided within the 20 territorial areas, or any portion thereof, which may be 21 served under an existing cable television franchise. 22 (iii) "Franchising Authority" is defined as that 23 term is defined under Section 602(9) of the Cable 24 Communications Policy Act of 1984, Public Law 98-549, but 25 does not include any municipality with a population of 26 1,000,000 or more. 27 (iv) "Cable operator" is defined as that term is 28 defined under Section 602(4) of the Cable Communications 29 Policy Act of 1984, Public Law 98-549. 30 Before granting an additional cable television franchise, 31 the franchising authority shall: 32 (1) Give written notice to the owner or operator of 33 any other community antenna television system franchised 34 to serve all or any portion of the territorial area to be -14- LRB9001711JSmgam05 1 served by such additional cable television franchise, 2 identifying the applicant for such additional franchise 3 and specifying the date, time and place at which the 4 franchising authority shall conduct public hearings to 5 consider and determine whether such additional cable 6 television franchise should be granted. 7 (2) Conduct a public hearing to determine the 8 public need for such additional cable television 9 franchise, the capacity of public rights-of-way to 10 accommodate such additional community antenna television 11 services, the potential disruption to existing users of 12 public rights-of-way to be used by such additional 13 franchise applicant to complete construction and to 14 provide cable television services within the proposed 15 franchise area, the long term economic impact of such 16 additional cable television system within the community, 17 and such other factors as the franchising authority shall 18 deem appropriate. 19 (3) Determine, based upon the foregoing factors, 20 whether it is in the best interest of the municipality to 21 grant such additional cable television franchise. 22 (4) If the franchising authority shall determine 23 that it is in the best interest of the municipality to do 24 so, it may grant the additional cable television 25 franchise. Except as provided in paragraph (5) of this 26 subsection (e),provided thatno such additional cable 27 television franchise shall be granted under terms or 28 conditions more favorable or less burdensome to the 29 applicant than those required under the existing cable 30 television franchise, including but not limited to terms 31 and conditions pertaining to the territorial extent of 32 the franchise, system design, technical performance 33 standards, construction schedules, performance bonds, 34 standards for construction and installation of cable -15- LRB9001711JSmgam05 1 television facilities, service to subscribers, public 2 educational and governmental access channels and 3 programming, production assistance, liability and 4 indemnification, and franchise fees. 5 (5) Unless the existing cable television franchise 6 provides that any additional cable television franchise 7 shall be subject to the same terms or substantially 8 equivalent terms and conditions as those of the existing 9 cable television franchise, the franchising authority may 10 grant an additional cable television franchise under 11 different terms and conditions than those of the existing 12 franchise, in which event the franchising authority shall 13 enter into good faith negotiations with the existing 14 franchisee and shall, within 120 days after the effective 15 date of the additional cable television franchise, modify 16 the existing cable television franchise in a manner and 17 to the extent necessary to ensure that neither the 18 existing cable television franchise nor the additional 19 cable television franchise, each considered in its 20 entirety, provides a competitive advantage over the 21 other, provided that prior to modifying the existing 22 cable television franchise, the franchising authority 23 shall have conducted a public hearing to consider the 24 proposed modification. No modification in the terms and 25 conditions of the existing cable television franchise 26 shall oblige the existing cable television franchisee (1) 27 to make any additional payment to the franchising 28 authority, including the payment of any additional 29 franchise fee, (2) to engage in any additional 30 construction of the existing cable television system or, 31 (3) to modify the specifications or design of the 32 existing cable television system; and the inclusion of 33 the factors identified in items (2) and (3) shall not be 34 considered in determining whether either franchise -16- LRB9001711JSmgam05 1 considered in its entirety, has a competitive advantage 2 over the other except to the extent that the additional 3 franchisee provides additional video or data services or 4 the equipment or facilities necessary to generate and or 5 carry such service. No modification in the terms and 6 conditions of the existing cable television franchise 7 shall be made if the existing cable television franchisee 8 elects to continue to operate under all terms and 9 conditions of the existing franchise. 10 If within the 120 day period the franchising 11 authority and the existing cable television franchisee 12 are unable to reach agreement on modifications to the 13 existing cable television franchise, then the franchising 14 authority shall modify the existing cable television 15 franchise, effective 45 days thereafter, in a manner, and 16 only to the extent, that the terms and conditions of the 17 existing cable television franchise shall no longer 18 impose any duty or obligation on the existing franchisee 19 which is not also imposed under the additional cable 20 television franchise; however, if by the modification the 21 existing cable television franchisee is relieved of 22 duties or obligations not imposed under the additional 23 cable television franchise, then within the same 45 days 24 and following a public hearing concerning modification of 25 the additional cable television franchise within that 45 26 day period, the franchising authority shall modify the 27 additional cable television franchise to the extent 28 necessary to insure that neither the existing cable 29 television franchise nor the additional cable television 30 franchise, each considered in its entirety, shall have a 31 competitive advantage over the other. 32 No municipality shall be subject to suit for damages 33 based upon the municipality's determination to grant or its 34 refusal to grant an additional cable television franchise, -17- LRB9001711JSmgam05 1 provided that a public hearing as herein provided has been 2 held and the franchising authority has determined that it is 3notin the best interest of the municipality to grant or 4 refuse to grant such additional franchise, as the case may 5 be. 6 It is declared to be the law of this State, pursuant to 7 paragraphs (h) and (i) of Section 6 of Article VII of the 8 Illinois Constitution, that the establishment of minimum 9 standards and procedures for the granting of additional cable 10 television franchises by municipalities with a population 11 less than 1,000,000 as provided in this subsection (e) is an 12 exclusive State power and function that may not be exercised 13 concurrently by a home rule unit. 14 (Source: P.A. 89-657, eff. 8-14-96.) 15 Section 99. Effective date. This Act takes effect upon 16 becoming law.".