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91_HB1751 LRB9104275DHmg 1 AN ACT to amend the Illinois Municipal Code by changing 2 Section 11-42-11. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Municipal Code is amended by 6 changing Section 11-42-11 as follows: 7 (65 ILCS 5/11-42-11) (from Ch. 24, par. 11-42-11) 8 Sec. 11-42-11. Community antenna television systems; 9 satellite transmitted television programming. 10 (a) The corporate authorities of each municipality may 11 license, franchise and tax the business of operating a 12 community antenna television system ashereinafterdefined in 13 this Section. In municipalities with fewerlessthan 14 2,000,000 inhabitants, the corporate authorities may own (or 15 lease as lessee) and operate a community antenna television 16 system. Before acquiring, constructing, or commencing 17 operation of a community antenna television system, the 18 municipality shall comply with the following: 19 (1) Give written notice to the owner or operator of 20 any other community antenna television system franchised 21 to serve all or any portion of the territorial area to be 22 served by the municipality's community antenna television 23 system, specifying the date, time, and place at which the 24 municipality shall conduct public hearings to consider 25 and determine whether the municipality should acquire, 26 construct, or commence operation of a community antenna 27 television system. The public hearings shall be 28 conducted at least 14 days after this notice is given. 29 (2) Publish a notice of the hearing in 2 or more 30 newspapers published in the county, city, village, 31 incorporated town, or town, as the case may be. If there -2- LRB9104275DHmg 1 is no such newspaper, then notice shall be published in 2 any 2 or more newspapers published in the county and 3 having a general circulation throughout the community. 4 The public hearings shall be conducted at least 14 days 5 after this notice is given. 6 (3) Conduct a public hearing to determine the means 7 by which construction, maintenance, and operation of the 8 system will be financed, including whether the use of tax 9 revenues or other fees will be required. 10 (b) The words "community antenna television system" 11shallmean any facility which is constructed in whole or in 12 part in, on, under or over any highway or other public place 13 and which is operated to perform for hire the service of 14 receiving and amplifying the signals broadcast by one or more 15 television stations and redistributing such signals by wire, 16 cable or other means to members of the public who subscribe 17 to such service; except that thissuchdefinition doesshall18 not include (i) any system which serves fewer than fifty 19 subscribers, or (ii) any system which serves only the 20 residents of one or more apartment dwellings under common 21 ownership, control or management, and commercial 22 establishments located on the premises of such dwellings. 23 (c) The authority hereby granted does not include 24 authority to license, franchise or tax telephone companies 25 subject to jurisdiction of the Illinois Commerce Commission 26 or the Federal Communications Commission in connection with 27 the furnishing of circuits, wires, cables, and other 28 facilities to the operator of a community antenna television 29 system. 30 The corporate authorities of each municipality may, in 31 the course of franchising such community antenna television 32 system, grant to thesuchfranchisee the authority and the 33 right and permission to use all public streets, rights of 34 way, alleys, ways for public service facilities, parks, -3- LRB9104275DHmg 1 playgrounds, school grounds, or other public grounds, in 2 which thesuchmunicipality may have an interest, for the 3 construction, installation, operation, maintenance, 4 alteration, addition, extension or improvement of a community 5 antenna television system. 6 Any charge imposed by a community antenna television 7 system franchised pursuant to this Section for the raising or 8 removal of cables or lines to permit passage on, to or from a 9 street shall not exceed the reasonable costs of work 10 reasonably necessary to safely permitsuchpassage. Pursuant 11 to subsections (h) and (i) of Section 6 of Article VII of the 12 Constitution of the State of Illinois, the General Assembly 13 declares the regulation of charges which may be imposed by 14 community antenna television systems for the raising or 15 removal of cables or lines to permit passage on, to or from 16 streets is a power or function to be exercised exclusively by 17 the State and not to be exercised or performed concurrently 18 with the State by any unit of local government, including any 19 home rule unit. 20 The municipality may, upon written request by the 21 franchisee of a community antenna television system, exercise 22 its right of eminent domain solely for the purpose of 23 granting an easement right no greater than 8 feet in width, 24 extending no greater than 8 feet from any lot line for the 25 purpose of extending cable across any parcel of property in 26 the manner provided by the law of eminent domain, provided, 27 however, thesuchfranchisee deposits with the municipality 28 sufficient security to pay all costs incurred by the 29 municipality in the exercise of its right of eminent domain. 30 (d) The General Assembly finds and declares that 31 satellite-transmitted television programming should be 32 available to those who desire to subscribe to thatsuch33 programming and that decoding devices should be obtainable at 34 reasonable prices by those who are unable to obtain -4- LRB9104275DHmg 1 satellite-transmitted television programming through duly 2 franchised community antenna television systems. 3 In any instance in which a person is unable to obtain 4 satellite-transmitted television programming through a duly 5 franchised community antenna television system either because 6 the municipality and county in which thesuchperson resides 7 has not granted a franchise to operate and maintain a 8 community antenna television system, or because the duly 9 franchised community antenna television system operator does 10 not make cable television services available to thatsuch11 person, any programming company that delivers 12 satellite-transmitted television programming in scrambled or 13 encrypted form shall ensure that devices for description of 14 thatsuchprogramming are made available to thatsuchperson, 15 through the local community antenna television operator or 16 directly, for purchase or lease at prices reasonably related 17 to the cost of manufacture and distribution of thosesuch18 devices. 19 (e) The General Assembly finds and declares that, in 20 order to ensure that community antenna television services 21 are provided in an orderly, competitive and economically 22 sound manner, the best interests of the public will be served 23 by the establishment of certain minimum standards and 24 procedures for the granting of additional cable television 25 franchises. 26 Subject to the provisions of this subsection, the 27 authority granted under subsection (a) hereof shall include 28 the authority to license, franchise and tax more than one 29 cable operator to provide community antenna television 30 services within the corporate limits of a single franchising 31 authority. For purposes of this subsection (e), the term: 32 (i) "Existing cable television franchise" means a 33 community antenna television franchise granted by a 34 municipality which is in use at the time thesuch-5- LRB9104275DHmg 1 municipality receives an application or request by 2 another cable operator for a franchise to provide cable 3 antenna television services within all or any portion of 4 the territorial area which is or may be served under the 5 existing cable television franchise. 6 (ii) "Additional cable television franchise" means 7 a franchise pursuant to which community antenna 8 television services may be provided within the 9 territorial areas, or any portion thereof, which may be 10 served under an existing cable television franchise. 11 (iii) "Franchising Authority" is defined as that 12 term is defined under Section 602(9) of the Cable 13 Communications Policy Act of 1984, Public Law 98-549, but 14 does not include any municipality with a population of 15 1,000,000 or more. 16 (iv) "Cable operator" is defined as that term is 17 defined under Section 602(4) of the Cable Communications 18 Policy Act of 1984, Public Law 98-549. 19 Before granting an additional cable television franchise, 20 the franchising authority shall: 21 (1) Give written notice to the owner or operator of 22 any other community antenna television system franchised 23 to serve all or any portion of the territorial area to be 24 served by thesuchadditional cable television franchise, 25 identifying the applicant for thesuchadditional 26 franchise and specifying the date, time and place at 27 which the franchising authority shall conduct public 28 hearings to consider and determine whether thesuch29 additional cable television franchise should be granted. 30 (2) Conduct a public hearing to determine the 31 public need for ansuchadditional cable television 32 franchise, the capacity of public rights-of-way to 33 accommodatesuchadditional community antenna television 34 services, the potential disruption to existing users of -6- LRB9104275DHmg 1 public rights-of-way to be used by thesuchadditional 2 franchise applicant to complete construction and to 3 provide cable television services within the proposed 4 franchise area, the long term economic impact of thesuch5additional cable television system within the community, 6 and anysuchother factors as the franchising authority 7 considersshall deemappropriate. 8 (3) Determine, based upon the foregoing factors, 9 whether it is in the best interest of the municipality to 10 grant ansuchadditional cable television franchise. 11 (4) If the franchising authority determinesshall12 determine that it is in the best interest of the 13 municipality to do so, it may grant the additional cable 14 television franchise. Except as provided in paragraph 15 (5) of this subsection (e), nosuchadditional cable 16 television franchise shall be granted under terms or 17 conditions more favorable or less burdensome to the 18 applicant than those required under the existing cable 19 television franchise, including but not limited to terms 20 and conditions pertaining to the territorial extent of 21 the franchise, system design, technical performance 22 standards, construction schedules, performance bonds, 23 standards for construction and installation of cable 24 television facilities, service to subscribers, public 25 educational and governmental access channels and 26 programming, production assistance, liability and 27 indemnification, and franchise fees. 28 (5) Unless the existing cable television franchise 29 provides that any additional cable television franchise 30 shall be subject to the same terms or substantially 31 equivalent terms and conditions as those of the existing 32 cable television franchise, the franchising authority may 33 grant an additional cable television franchise under 34 different terms and conditions than those of the existing -7- LRB9104275DHmg 1 franchise, in which event the franchising authority shall 2 enter into good faith negotiations with the existing 3 franchisee and shall, within 120 days after the effective 4 date of the additional cable television franchise, modify 5 the existing cable television franchise in a manner and 6 to the extent necessary to ensure that neither the 7 existing cable television franchise nor the additional 8 cable television franchise, each considered in its 9 entirety, provides a competitive advantage over the 10 other, provided that beforeprior tomodifying the 11 existing cable television franchise, the franchising 12 authority must conductshall have conducteda public 13 hearing to consider the proposed modification. No 14 modification in the terms and conditions of the existing 15 cable television franchise shall oblige the existing 16 cable television franchisee (1) to make any additional 17 payment to the franchising authority, including the 18 payment of any additional franchise fee, (2) to engage in 19 any additional construction of the existing cable 20 television system or, (3) to modify the specifications or 21 design of the existing cable television system; and the 22 inclusion of the factors identified in items (2) and (3) 23 shall not be considered in determining whether either 24 franchise considered in its entirety, has a competitive 25 advantage over the other except to the extent that the 26 additional franchisee provides additional video or data 27 services or the equipment or facilities necessary to 28 generate and or carry such service. No modification in 29 the terms and conditions of the existing cable television 30 franchise shall be made if the existing cable television 31 franchisee elects to continue to operate under all terms 32 and conditions of the existing franchise. 33 If within the 120 day period the franchising 34 authority and the existing cable television franchisee -8- LRB9104275DHmg 1 are unable to reach agreement on modifications to the 2 existing cable television franchise, then the franchising 3 authority shall modify the existing cable television 4 franchise, effective 45 days thereafter, in a manner, and 5 only to the extent, that the terms and conditions of the 6 existing cable television franchise shall no longer 7 impose any duty or obligation on the existing franchisee 8 which is not also imposed under the additional cable 9 television franchise; however, if by the modification the 10 existing cable television franchisee is relieved of 11 duties or obligations not imposed under the additional 12 cable television franchise, then within the same 45 days 13 and following a public hearing concerning modification of 14 the additional cable television franchise within that 15 45-day period, the franchising authority shall modify the 16 additional cable television franchise to the extent 17 necessary to insure that neither the existing cable 18 television franchise nor the additional cable television 19 franchise, each considered in its entirety, shall have a 20 competitive advantage over the other. 21 No municipality shall be subject to suit for damages 22 based upon the municipality's determination to grant or its 23 refusal to grant an additional cable television franchise, 24 provided that a public hearing as herein provided has been 25 held and the franchising authority has determined that it is 26 in the best interest of the municipality to grant or refuse 27 to grant such additional franchise, as the case may be. 28 It is declared to be the law of this State, pursuant to 29 paragraphs (h) and (i) of Section 6 of Article VII of the 30 Illinois Constitution, that the establishment of minimum 31 standards and procedures for the granting of additional cable 32 television franchises by municipalities with a population 33 less than 1,000,000 as provided in this subsection (e) is an 34 exclusive State power and function that may not be exercised -9- LRB9104275DHmg 1 concurrently by a home rule unit. 2 (Source: P.A. 89-657, eff. 8-14-96; 90-285, eff. 7-31-97.)