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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 countymunicipalityto grant such additional cable 15 television franchise. 16 If the franchising authority shall determine that it is 17 in the best interest of the countymunicipalityto 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.