State of Illinois
90th General Assembly
Legislation

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90_SB0272

      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  before  the  county  board  or  the  corporate
      authorities   may  authorize  the  transfer  of  a  cable  TV
      franchise, they shall require  the  transferee  to  agree  to
      provide,  for  one  year after the transfer, all services and
      options  provided  by  the  franchise  at  the  time  of  the
      transfer.  Effective immediately.
                                                     LRB9000504JSpk
                                               LRB9000504JSpk
 1        AN  ACT  concerning  the  transfer  of  cable  television
 2    franchises, 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
                            -2-                LRB9000504JSpk
 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
                            -3-                LRB9000504JSpk
 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
                            -4-                LRB9000504JSpk
 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),
                            -5-                LRB9000504JSpk
 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
24             operator of any other community  antenna  television
25             system franchised to serve all or any portion of the
26             territorial  area  to  be  served by such additional
27             cable   television   franchise,   identifying    the
28             applicant   for   such   additional   franchise  and
29             specifying the date, time and  place  at  which  the
30             franchising  authority shall conduct public hearings
31             to consider and determine  whether  such  additional
32             cable television franchise should be granted.
33                  (2)  Conduct  a public hearing to determine the
34             public need for  such  additional  cable  television
                            -6-                LRB9000504JSpk
 1             franchise,  the  capacity of public rights-of-way to
 2             accommodate  such   additional   community   antenna
 3             television  services,  the  potential  disruption to
 4             existing users of public rights-of-way to be used by
 5             such  additional  franchise  applicant  to  complete
 6             construction  and  to   provide   cable   television
 7             services  within  the  proposed  franchise area, the
 8             long term economic impact of such  additional  cable
 9             television  system  within  the  community, and such
10             other factors as  the  franchising  authority  shall
11             deem appropriate.
12                  (3)  Determine,   based   upon   the  foregoing
13             factors, whether it is in the best interest  of  the
14             county  municipality  to grant such additional cable
15             television franchise.
16        If the franchising authority shall determine that  it  is
17    in  the best interest of the county municipality to do so, it
18    may grant the additional cable television franchise, provided
19    that no such additional cable television franchise  shall  be
20    granted  under  terms  or  conditions  more favorable or less
21    burdensome to the applicant than  those  required  under  the
22    existing   cable  television  franchise,  including  but  not
23    limited to terms and conditions pertaining to the territorial
24    extent of the franchise, system design, technical performance
25    standards,   construction   schedules,   performance   bonds,
26    standards  for  construction  and   installation   of   cable
27    television   facilities,   service   to  subscribers,  public
28    educational and governmental access channels and programming,
29    production assistance,  liability  and  indemnification,  and
30    franchise fees.
31        No county shall be subject to suit for damages based upon
32    the   refusal   to   grant  an  additional  cable  television
33    franchise, provided that a public hearing as herein  provided
34    has  been  held  and the franchising authority has determined
                            -7-                LRB9000504JSpk
 1    that it is not in the best interest of the  county  to  grant
 2    such additional franchise.
 3        It  is  declared to be the law of this State, pursuant to
 4    paragraphs (h) and (i) of Section 6 of  Article  VII  of  the
 5    Illinois  Constitution,  that  the  establishment  of minimum
 6    standards and procedures for the granting of additional cable
 7    television franchises as provided in this subsection  (e)  is
 8    an  exclusive  State  power  and  function  that  may  not be
 9    exercised concurrently by a home rule unit.
10        (f)  Before approving the transfer of a cable  television
11    franchise,  the  county board shall require the transferee to
12    agree to  provide,  for  a  period  of  one  year  after  the
13    transfer,  all services and options provided by the franchise
14    at the time of the transfer.
15    (Source: P.A. 86-962; 86-1410.)
16        Section 10.  The Illinois Municipal Code  is  amended  by
17    changing Section 11-42-11 as follows:
18        (65 ILCS 5/11-42-11) (from Ch. 24, par. 11-42-11)
19        Sec.  11-42-11.  Community  antenna  television  systems;
20    satellite transmitted television programming.
21        (a)  The  corporate  authorities of each municipality may
22    license, franchise  and  tax  the  business  of  operating  a
23    community  antenna  television system as hereinafter defined.
24    In municipalities with less than 2,000,000  inhabitants,  the
25    corporate  authorities  may  own  (or  lease  as  lessee) and
26    operate  a  community  antenna  television  system.    Before
27    acquiring,   constructing,   or  commencing  operation  of  a
28    community antenna television system, the  municipality  shall
29    comply with the following:
30             (1)  Give written notice to the owner or operator of
31        any  other community antenna television system franchised
32        to serve all or any portion of the territorial area to be
                            -8-                LRB9000504JSpk
 1        served by the municipality's community antenna television
 2        system, specifying the date, time, and place at which the
 3        municipality shall conduct public  hearings  to  consider
 4        and  determine  whether  the municipality should acquire,
 5        construct, or commence operation of a  community  antenna
 6        television   system.    The   public  hearings  shall  be
 7        conducted at least 14 days after this notice is given.
 8             (2)  Publish a notice of the hearing in  2  or  more
 9        newspapers   published  in  the  county,  city,  village,
10        incorporated town, or town, as the case may be.  If there
11        is no such newspaper, then notice shall be  published  in
12        any  2  or  more  newspapers  published in the county and
13        having a general circulation  throughout  the  community.
14        The  public  hearings shall be conducted at least 14 days
15        after this notice is given.
16             (3)  Conduct a public hearing to determine the means
17        by which construction, maintenance, and operation of  the
18        system will be financed, including whether the use of tax
19        revenues or other fees will be required.
20        (b)  The  words  "community  antenna  television  system"
21    shall  mean  any facility which is constructed in whole or in
22    part in, on, under or over any highway or other public  place
23    and  which  is  operated  to  perform for hire the service of
24    receiving and amplifying the signals broadcast by one or more
25    television stations and redistributing such signals by  wire,
26    cable  or  other means to members of the public who subscribe
27    to such  service;  except  that  such  definition  shall  not
28    include   (i)  any  system  which  serves  fewer  than  fifty
29    subscribers,  or  (ii)  any  system  which  serves  only  the
30    residents of one or more  apartment  dwellings  under  common
31    ownership,    control    or    management,   and   commercial
32    establishments located on the premises of such dwellings.
33        (c)  The  authority  hereby  granted  does  not   include
34    authority  to  license,  franchise or tax telephone companies
                            -9-                LRB9000504JSpk
 1    subject to jurisdiction of the Illinois  Commerce  Commission
 2    or  the  Federal Communications Commission in connection with
 3    the  furnishing  of  circuits,  wires,  cables,   and   other
 4    facilities  to the operator of a community antenna television
 5    system.
 6        The corporate authorities of each  municipality  may,  in
 7    the  course  of franchising such community antenna television
 8    system, grant to such franchisee the authority and the  right
 9    and  permission  to  use  all  public streets, rights of way,
10    alleys,  ways   for   public   service   facilities,   parks,
11    playgrounds,  school  grounds,  or  other  public grounds, in
12    which  such  municipality  may  have  an  interest,  for  the
13    construction,    installation,    operation,     maintenance,
14    alteration, addition, extension or improvement of a community
15    antenna television system.
16        Any  charge  imposed  by  a  community antenna television
17    system franchised pursuant to this Section for the raising or
18    removal of cables or lines to permit passage on, to or from a
19    street  shall  not  exceed  the  reasonable  costs  of   work
20    reasonably necessary to safely permit such passage.  Pursuant
21    to subsections (h) and (i) of Section 6 of Article VII of the
22    Constitution  of  the State of Illinois, the General Assembly
23    declares the regulation of charges which may  be  imposed  by
24    community  antenna  television  systems  for  the  raising or
25    removal of cables or lines to permit passage on, to  or  from
26    streets is a power or function to be exercised exclusively by
27    the  State  and not to be exercised or performed concurrently
28    with the State by any unit of local government, including any
29    home rule unit.
30        The  municipality  may,  upon  written  request  by   the
31    franchisee of a community antenna television system, exercise
32    its  right  of  eminent  domain  solely  for  the  purpose of
33    granting an easement right no greater than 8 feet  in  width,
34    extending  no  greater  than 8 feet from any lot line for the
                            -10-               LRB9000504JSpk
 1    purpose of extending cable across any parcel of  property  in
 2    the  manner  provided by the law of eminent domain, provided,
 3    however,  such  franchisee  deposits  with  the  municipality
 4    sufficient  security  to  pay  all  costs  incurred  by   the
 5    municipality in the exercise of its right of eminent domain.
 6        (d)  The   General   Assembly  finds  and  declares  that
 7    satellite-transmitted  television   programming   should   be
 8    available   to   those   who  desire  to  subscribe  to  such
 9    programming and that decoding devices should be obtainable at
10    reasonable  prices  by  those  who  are  unable   to   obtain
11    satellite-transmitted  television  programming  through  duly
12    franchised community antenna television systems.
13        In  any  instance  in  which a person is unable to obtain
14    satellite-transmitted television programming through  a  duly
15    franchised community antenna television system either because
16    the  municipality and county in which such person resides has
17    not granted a franchise to operate and maintain  a  community
18    antenna  television  system,  or  because the duly franchised
19    community antenna television system operator  does  not  make
20    cable  television  services  available  to  such  person, any
21    programming  company  that   delivers   satellite-transmitted
22    television  programming  in scrambled or encrypted form shall
23    ensure that devices for description of such  programming  are
24    made  available  to  such person, through the local community
25    antenna television operator  or  directly,  for  purchase  or
26    lease at prices reasonably related to the cost of manufacture
27    and distribution of such devices.
28        (e)  The  General  Assembly  finds  and declares that, in
29    order to ensure that community  antenna  television  services
30    are  provided  in  an  orderly,  competitive and economically
31    sound manner, the best interests of the public will be served
32    by  the  establishment  of  certain  minimum  standards   and
33    procedures  for  the  granting of additional cable television
34    franchises.
                            -11-               LRB9000504JSpk
 1        Subject  to  the  provisions  of  this  subsection,   the
 2    authority  granted  under subsection (a) hereof shall include
 3    the authority to license, franchise and  tax  more  than  one
 4    cable   operator  to  provide  community  antenna  television
 5    services within the corporate limits of a single  franchising
 6    authority.  For purposes of this subsection (e), the term:
 7             (i)  "Existing  cable  television franchise" means a
 8        community  antenna  television  franchise  granted  by  a
 9        municipality  which  is  in  use   at   the   time   such
10        municipality   receives  an  application  or  request  by
11        another cable operator for a franchise to  provide  cable
12        antenna  television services within all or any portion of
13        the territorial area which is or may be served under  the
14        existing cable television franchise.
15             (ii)  "Additional  cable television franchise" means
16        a  franchise  pursuant   to   which   community   antenna
17        television   services   may   be   provided   within  the
18        territorial areas, or any portion thereof, which  may  be
19        served under an existing cable television franchise.
20             (iii)  "Franchising  Authority"  is  defined as that
21        term  is  defined  under  Section  602(9)  of  the  Cable
22        Communications Policy Act of 1984, Public Law 98-549, but
23        does not include any municipality with  a  population  of
24        1,000,000 or more.
25             (iv)  "Cable  operator"  is  defined as that term is
26        defined under Section 602(4) of the Cable  Communications
27        Policy Act of 1984, Public Law 98-549.
28        Before granting an additional cable television franchise,
29    the franchising authority shall:
30             (1)  Give written notice to the owner or operator of
31        any  other community antenna television system franchised
32        to serve all or any portion of the territorial area to be
33        served by such  additional  cable  television  franchise,
34        identifying  the  applicant for such additional franchise
                            -12-               LRB9000504JSpk
 1        and specifying the date, time  and  place  at  which  the
 2        franchising  authority  shall  conduct public hearings to
 3        consider and  determine  whether  such  additional  cable
 4        television franchise should be granted.
 5             (2)  Conduct  a  public  hearing  to  determine  the
 6        public   need   for   such  additional  cable  television
 7        franchise,  the  capacity  of  public  rights-of-way   to
 8        accommodate  such additional community antenna television
 9        services, the potential disruption to existing  users  of
10        public  rights-of-way  to  be  used  by  such  additional
11        franchise  applicant  to  complete  construction  and  to
12        provide  cable  television  services  within the proposed
13        franchise area, the long term  economic  impact  of  such
14        additional  cable television system within the community,
15        and such other factors as the franchising authority shall
16        deem appropriate.
17             (3)  Determine, based upon  the  foregoing  factors,
18        whether it is in the best interest of the municipality to
19        grant such additional cable television franchise.
20        If  the  franchising authority shall determine that it is
21    in the best interest of the municipality to  do  so,  it  may
22    grant  the  additional  cable  television franchise, provided
23    that no such additional cable television franchise  shall  be
24    granted  under  terms  or  conditions  more favorable or less
25    burdensome to the applicant than  those  required  under  the
26    existing   cable  television  franchise,  including  but  not
27    limited to terms and conditions pertaining to the territorial
28    extent of the franchise, system design, technical performance
29    standards,   construction   schedules,   performance   bonds,
30    standards   for   construction   and  installation  of  cable
31    television  facilities,  service   to   subscribers,   public
32    educational and governmental access channels and programming,
33    production  assistance,  liability  and  indemnification, and
34    franchise fees.
                            -13-               LRB9000504JSpk
 1        No municipality shall be  subject  to  suit  for  damages
 2    based   upon   the  refusal  to  grant  an  additional  cable
 3    television franchise,  provided  that  a  public  hearing  as
 4    herein  provided  has been held and the franchising authority
 5    has determined that it is not in the  best  interest  of  the
 6    municipality to grant such additional franchise.
 7        It  is  declared to be the law of this State, pursuant to
 8    paragraphs (h) and (i) of Section 6 of  Article  VII  of  the
 9    Illinois  Constitution,  that  the  establishment  of minimum
10    standards and procedures for the granting of additional cable
11    television franchises by  municipalities  with  a  population
12    less  than 1,000,000 as provided in this subsection (e) is an
13    exclusive State power and function that may not be  exercised
14    concurrently by a home rule unit.
15        (f)  Before  approving the transfer of a cable television
16    franchise,  the  corporate  authorities  shall  require   the
17    transferee  to  agree  to  provide,  for a period of one year
18    after the transfer, all services and options provided by  the
19    franchise at the time of the transfer.
20    (Source: P.A. 89-657, eff. 8-14-96.)
21        Section  99.  Effective date.  This Act takes effect upon
22    becoming law.

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