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H.B. 149 Enrolled

                 

MUNICIPAL CABLE TELEVISION AND PUBLIC

                 
TELECOMMUNICATIONS SERVICES ACT

                 
2001 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Greg J. Curtis

                  This act modifies the Utah Municipal Code and the Interlocal Cooperation Act to limit the
                  authority of municipalities to own and operate cable television and public
                  telecommunications facilities and to provide cable television and public telecommunications
                  services to a municipality's inhabitants. This act enacts the Municipal Cable Television and
                  Public Telecommunications Services Act. This act makes related conforming and technical
                  amendments. This act has an immediate effective date.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      10-8-14, as last amended by Chapter 365, Laws of Utah 1999
                      11-13-4, as enacted by Chapter 14, Laws of Utah 1965
                  ENACTS:
                      10-18-101, Utah Code Annotated 1953
                      10-18-102, Utah Code Annotated 1953
                      10-18-103, Utah Code Annotated 1953
                      10-18-104, Utah Code Annotated 1953
                      10-18-105, Utah Code Annotated 1953
                      10-18-106, Utah Code Annotated 1953
                      10-18-201, Utah Code Annotated 1953
                      10-18-202, Utah Code Annotated 1953
                      10-18-203, Utah Code Annotated 1953
                      10-18-204, Utah Code Annotated 1953
                      10-18-301, Utah Code Annotated 1953
                      10-18-302, Utah Code Annotated 1953
                      10-18-303, Utah Code Annotated 1953


                      10-18-304, Utah Code Annotated 1953
                      10-18-305, Utah Code Annotated 1953
                      10-18-306, Utah Code Annotated 1953
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 10-8-14 is amended to read:
                       10-8-14. Water, sewer, gas, electricity, and public transportation -- Service beyond city
                  limits -- Retainage -- Cable television and public telecommunications services.
                      (1) [They] A city may:
                      (a) construct, maintain, and operate waterworks, sewer collection, sewer treatment systems,
                  gas works, electric light works, [telephone] telecommunications lines, cable television lines, or
                  public transportation systems[, or];
                      (b) authorize the construction, maintenance and operation of the [same] works or systems
                  listed in Subsection (1)(a) by others[, or];
                      (c) purchase or lease [such] the works or systems listed in Subsection (1)(a) from any person
                  or corporation[,]; and [they may]
                      (d) sell and deliver the surplus product or service capacity of any [such] works or system
                  listed in Subsection (1)(a), not required by the city or [its] the city's inhabitants, to others beyond the
                  limits of the city, except the sale and delivery of cable television services or public
                  telecommunications services is governed by Subsection (3).
                      (2) If any payment on a contract with a private person, firm, or corporation to construct
                  waterworks, sewer collection, sewer treatment systems, gas works, electric light works, [telephone
                  lines] telecommunications lines, cable television lines, or public transportation systems is retained
                  or withheld, it shall be retained or withheld and released as provided in Section 13-8-5 .
                      (3) A city's actions under this section related to works or systems involving public
                  telecommunications services or cable television services are subject to the requirements of Chapter
                  18, Municipal Cable Television and Public Telecommunications Services Act.
                      Section 2. Section 10-18-101 is enacted to read:
                 
CHAPTER 18. MUNICIPAL CABLE TELEVISION AND PUBLIC


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TELECOMMUNICATIONS SERVICES ACT

                 
Part 1. General Provisions

                      10-18-101. Title -- Policy statement.
                      (1) This chapter is known as the "Municipal Cable Television and Public
                  Telecommunications Services Act."
                      (2) The Legislature finds that it is the policy of this state to:
                      (a) ensure that cable television services and public telecommunications services are provided
                  through fair competition consistent with the federal Telecommunications Act of 1996, Pub. L.
                  104-104, in order to provide the widest possible diversity of information and news sources to the
                  general public;
                      (b) advance the exercise of rights under the First Amendment of the Constitution of the
                  United States;
                      (c) enhance the development and widespread use of technological advances in providing
                  cable television services and public telecommunications services;
                      (d) encourage improved customer service of cable television services and public
                  telecommunications services at competitive rates;
                      (e) ensure that cable television services and public telecommunications services are each
                  provided within a consistent, comprehensive, and nondiscriminatory federal, state, and local
                  government framework; and
                      (f) ensure that when a municipality provides to its inhabitants cable television services,
                  public telecommunications services, or both, and competes with private providers whose activities
                  are regulated by the municipality, the municipality does not discriminate against the competing
                  providers of the same services.
                      Section 3. Section 10-18-102 is enacted to read:
                      10-18-102. Definitions.
                      As used in this chapter:
                      (1) "Cable television service" means:
                      (a) the one-way transmission to subscribers of:

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                      (i) video programming; or
                      (ii) other programming service; and
                      (b) subscriber interaction, if any, that is required for the selection or use of:
                      (i) the video programming; or
                      (ii) other programming service.
                      (2) "Capital costs" means all costs of providing a service that are capitalized in accordance
                  with generally accepted accounting principles.
                      (3) "Cross subsidize" means to pay a cost included in the direct costs or indirect costs of
                  providing a service that is not accounted for in the full cost of accounting of providing the service.
                      (4) "Direct costs" means those expenses of a municipality that:
                      (a) are directly attributable to providing:
                      (i) a cable television service; or
                      (ii) a public telecommunications service; and
                      (b) would be eliminated if the service described in Subsection (4)(a) were not provided by
                  the municipality.
                      (5) "Feasibility consultant" means an individual or entity with expertise in the processes and
                  economics of providing:
                      (a) cable television service; and
                      (b) public telecommunications service.
                      (6) (a) "Full-cost accounting" means the accounting of all costs incurred by a municipality
                  in providing:
                      (i) a cable television service; or
                      (ii) a public telecommunications service.
                      (b) The costs included in a full-cost accounting include all:
                      (i) capital costs;
                      (ii) direct costs; and
                      (iii) indirect costs.
                      (7) (a) "Indirect costs" means any costs:

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                      (i) identified with two or more services or other functions; and
                      (ii) that are not directly identified with a single service or function.
                      (b) "Indirect costs" may include cost factors for:
                      (i) administration;
                      (ii) accounting;
                      (iii) personnel;
                      (iv) purchasing;
                      (v) legal support; and
                      (vi) other staff or departmental support.
                      (8) "Private provider" means a person that:
                      (a) provides:
                      (i) cable television services; or
                      (ii) public telecommunications services; and
                      (b) is a private entity.
                      (9) "Public telecommunications service" means the two-way transmission of signs, signals,
                  writing, images, sounds, messages, data, or other information of any nature by wire, radio,
                  lightwaves, or other electromagnetic means offered to the public generally.
                      (10) "Subscribers" means a person that lawfully receives:
                      (a) cable television services; or
                      (b) public telecommunications services.
                      Section 4. Section 10-18-103 is enacted to read:
                      10-18-103. Antitrust immunity.
                      (1) When a municipality is offering or providing a cable television service or public
                  telecommunications service, the immunity from antitrust liability afforded to political subdivisions
                  of the state under Section 76-10-919 does not apply to the municipality providing those services.
                      (2) A municipality that provides a cable television service or a public telecommunications
                  service is subject to applicable antitrust liabilities under the federal Local Government Antitrust Act
                  of 1984, 15 U.S.C. Secs. 34 to 36.

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                      Section 5. Section 10-18-104 is enacted to read:
                      10-18-104. Application to existing contracts.
                      (1) (a) If before the sooner of March 1 or the effective date of the chapter, the legislative
                  body of a municipality authorized the municipality to offer or provide cable television services or
                  public telecommunications services, each authorized service:
                      (i) is exempt from Part 2; and
                      (ii) is subject to Part 3.
                      (b) The exemption described in Subsection (1)(a)(i) may not apply to any cable television
                  service or public telecommunications service authorized by the legislative body of a municipality
                  on or after the sooner of March 1 or the effective date of this chapter.
                      (2) This chapter does not:
                      (a) invalidate any contract entered into by a municipality before the sooner of March 1 or
                  the effective date of this chapter:
                      (i) for the design, construction, equipping, operation, or maintenance of facilities used or to
                  be used by the municipality, or by a private provider under a contract with the municipality for the
                  purpose of providing:
                      (A) cable television services; or
                      (B) public telecommunications services;
                      (ii) with a private provider for the use of the facilities described in Subsection (2)(a)(i) in
                  connection with the private provider offering:
                      (A) cable television services; or
                      (B) public telecommunications services;
                      (iii) with a subscriber for providing:
                      (A) a cable television service; or
                      (B) a public telecommunications service; or
                      (iv) to obtain or secure financing for the acquisition or operation of the municipality's
                  facilities or equipment used in connection with providing:
                      (A) a cable television service; or

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                      (B) a public telecommunications service; or
                      (b) impair any security interest granted by a municipality as collateral for the municipality's
                  obligations under a contract described in Subsection (2)(a).
                      (3) (a) A municipality meeting the one or more of the following conditions is exempt from
                  this chapter as provided in Subsection (3)(b):
                      (i) a municipality that adopts or enacts a bond resolution on or before January 1, 2001, to
                  fund facilities or equipment that the municipality uses to provide:
                      (A) cable television services; or
                      (B) public telecommunications services; or
                      (ii) a municipality that has operated for at least three years consecutively before the sooner
                  of March 1 or the effective date of this chapter:
                      (A) a cable television service; or
                      (B) a public telecommunications service.
                      (b) A municipality described in Subsection (3)(a) is exempt from this chapter except for:
                      (i) Subsection 10-18-303 (4);
                      (ii) Subsection 10-18-303 (7);
                      (iii) Subsection 10-18-303 (9);
                      (iv) Section 10-18-304 ; and
                      (v) Section 10-18-305 .
                      (4) For the time period beginning on the effective date of this chapter and ending on
                  December 31, 2001, a municipality that operated a cable television service as of January 1, 2001, is
                  exempt from Subsection 10-18-301 (1)(d).
                      Section 6. Section 10-18-105 is enacted to read:
                      10-18-105. Scope of chapter.
                      (1) Nothing in this chapter authorizes any county or other political subdivision of this state
                  to:
                      (a) provide:
                      (i) a cable television service; or

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                      (ii) a public telecommunications service; or
                      (b) purchase, lease, construct, maintain, or operate a facility for the purpose of providing:
                      (i) a cable television service; or
                      (ii) a public telecommunications service.
                      (2) Nothing in this chapter applies to a municipality purchasing, leasing, constructing, or
                  equipping facilities:
                      (a) that are designed to provide services within the municipality; and
                      (b) that the municipality:
                      (i) uses for internal municipal government purposes; or
                      (ii) by written contract, leases, sells capacity in, or grants other similar rights to a private
                  provider to use the facilities in connection with a private provider offering:
                      (A) cable television services; or
                      (B) public telecommunications services.
                      Section 7. Section 10-18-106 is enacted to read:
                      10-18-106. Severability.
                      If any provision of this chapter or the application of any provision of this chapter is found
                  invalid, the remainder of this chapter shall be given effect without the invalid provision or
                  application.
                      Section 8. Section 10-18-201 is enacted to read:
                 
Part 2. Conditions for Providing Services

                      10-18-201. Limitations on providing a cable television and public telecommunications
                  services.
                      (1) Except as provided in this chapter, a municipality may not:
                      (a) provide to one or more subscribers:
                      (i) a cable television service; or
                      (ii) a public telecommunications service; or
                      (b) for the purpose of providing a cable television service or a public telecommunications
                  service to one or more subscribers, purchase, lease, construct, maintain, or operate any facility.

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                      (2) For purposes of this chapter, a municipality provides a cable television service or public
                  telecommunications service if the municipality provides the service:
                      (a) directly or indirectly, including through an authority or instrumentality:
                      (i) acting on behalf of the municipality; or
                      (ii) for the benefit of the municipality;
                      (b) by itself;
                      (c) through:
                      (i) a partnership; or
                      (ii) joint venture; or
                      (d) by contract, resale, or otherwise.
                      Section 9. Section 10-18-202 is enacted to read:
                      10-18-202. Required steps before a municipality may provide cable television or public
                  telecommunications services.
                      Before a municipality may engage or offer to engage in an activity described in Subsection
                  10-18-201 (1), the legislative body of the municipality shall:
                      (1) hold a preliminary public hearing;
                      (2) if the legislative body elects to proceed after holding the preliminary public hearing
                  required by Subsection (1), approve the hiring of a feasibility consultant to conduct a feasibility study
                  in accordance with Section 10-18-203 ;
                      (3) determine whether under the feasibility study conducted under Section 10-18-203 , the
                  average annual revenues under Subsection 10-18-203 (2)(f) exceed the average annual costs under
                  Subsection 10-18-203 (2)(e) by at least the amount necessary to meet the bond obligations of any
                  bonds issued to fund the proposed cable television services or public telecommunications services:
                      (a) based on the feasibility study's analysis:
                      (i) for the first year of the study; and
                      (ii) the five-year projection; and
                      (b) separately stated with respect to:
                      (i) the proposed cable television services; or

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                      (ii) the proposed public telecommunications services;
                      (4) if the conditions of Subsection (3) are met, hold the public hearings required by Section
                  10-18-203 ; and
                      (5) after holding the public hearings required by Section 10-18-203 , if the legislative body
                  of the municipality elects to proceed, adopt by resolution the feasibility study.
                      Section 10. Section 10-18-203 is enacted to read:
                      10-18-203. Feasibility study on providing cable television or public telecommunications
                  services -- Public hearings.
                      (1) If a feasibility consultant is hired under Section 10-18-202 , the legislative body of the
                  municipality shall require the feasibility consultant to:
                      (a) complete the feasibility study in accordance with this section;
                      (b) submit to the legislative body by no later than 180 days from the date the feasibility
                  consultant is hired to conduct the feasibility study:
                      (i) the full written results of the feasibility study; and
                      (ii) a summary of the results that is no longer than one page in length; and
                      (c) attend the public hearings described in Subsection (4) to:
                      (i) present the feasibility study results; and
                      (ii) respond to questions from the public.
                      (2) The feasibility study described in Subsection (1) shall at a minimum consider:
                      (a) (i) if the municipality is proposing to provide cable television services to subscribers,
                  whether the municipality providing cable television services in the manner proposed by the
                  municipality will hinder or advance competition for cable television services in the municipality;
                      (ii) if the municipality is proposing to provide public telecommunications services to
                  subscribers, whether the municipality providing public telecommunications services in the manner
                  proposed by the municipality will hinder or advance competition for public telecommunications
                  services in the municipality;
                      (b) whether but for the municipality any person would provide the proposed:
                      (i) cable television services; or

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                      (ii) public telecommunications services;
                      (c) the fiscal impact on the municipality of:
                      (i) the capital investment in facilities that will be used to provide the proposed:
                      (A) cable television services; or
                      (B) public telecommunications services; and
                      (ii) the expenditure of funds for labor, financing, and administering the proposed:
                      (A) cable television services; or
                      (B) public telecommunications services;
                      (d) the projected growth in demand in the municipality for the proposed:
                      (i) cable television services; or
                      (ii) public telecommunications services;
                      (e) the projections at the time of the feasability study and for the next five years, of a
                  full-cost accounting for a municipality to purchase, lease, construct, maintain, or operate the facilities
                  necessary to provide the proposed:
                      (i) cable television services; or
                      (ii) public telecommunications services; and
                      (f) the projections at the time of the feasability study and for the next five years of the
                  revenues to be generated from the proposed:
                      (i) cable television services; or
                      (ii) public telecommunications services.
                      (3) For purposes of the financial projections required under Subsections (2)(e) and (f), the
                  feasibility consultant shall assume that the municipality will price the proposed cable television
                  services or public telecommunications services consistent with Subsection 10-18-303 (5).
                      (4) If the results of the feasibility study satisfy the revenue requirement of Subsection
                  10-18-202 (3), the legislative body, at the next regular meeting after the legislative body receives the
                  results of the feasibility study, shall schedule at least two public hearings to be held:
                      (a) within 60 days of the meeting at which the public hearings are scheduled;
                      (b) at least seven days apart; and

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                      (c) for the purpose of allowing:
                      (i) the feasibility consultant to present the results of the feasibility study; and
                      (ii) the public to:
                      (A) become informed about the feasibility study results; and
                      (B) ask questions of the feasibility consultant about the results of the feasibility study.
                      (5) (a) Except as provided in Subsection (5)(c), the municipality shall publish notice of the
                  public hearings required under Subsection (4) at least once a week for three consecutive weeks in
                  a newspaper of general circulation in the municipality.
                      (b) The last publication of notice required under Subsection (5)(a) shall be at least three days
                  before the first public hearing required under Subsection (4).
                      (c) (i) If there is no newspaper of general circulation in the municipality, for each 1,000
                  residents, the municipality shall post at least one notice of the hearings in a conspicuous place within
                  the municipality that is likely to give notice of the hearings to the greatest number of residents of the
                  municipality.
                      (ii) The municipality shall post the notices at least seven days before the first public hearing
                  required under Subsection (4) is held.
                      Section 11. Section 10-18-204 is enacted to read:
                      10-18-204. Vote permissible -- Referendum.
                      (1) (a) A legislative body by a majority vote may call an election on whether or not the
                  municipality shall provide the proposed:
                      (i) cable television services; or
                      (ii) public telecommunications services.
                      (b) If under Subsection (1)(a) the legislative body calls an election, the election shall be held:
                      (i) (A) at the next municipal general election; or
                      (B) as provided in Subsection 20A-1-203 (1), at a local special election the purpose of which
                  is authorized by this section; and
                      (ii) in accordance with Title 20A, Election Code, except as provided in this section.
                      (c) The notice of the election shall include with any other information required by law:

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                      (i) a summary of the cable television services or public telecommunications services that the
                  legislative body of the municipality proposes to provide to subscribers residing within the boundaries
                  of the municipality;
                      (ii) the feasibility study summary under Section 10-18-203 ;
                      (iii) a statement that a full copy of the feasibility study is available for inspection and
                  copying; and
                      (iv) the location in the municipality where the feasibility study may be inspected or copied.
                      (d) The ballot at the election shall pose the question substantially as follows: Shall the [name
                  of the municipality] provide [cable television service or public telecommunications service] to the
                  inhabitants of the [municipality].
                      (e) The ballot proposition may not take effect until submitted to the electors and approved
                  by the majority of those voting on the ballot.
                      (2) In accordance with Title 20A, Chapter 7, Issues Submitted to the Voters, a municipality
                  legislative body's action to have the municipality provide cable television services or public
                  telecommunications services is subject to local referenda.
                      Section 12. Section 10-18-301 is enacted to read:
                 
Part 3. Operational Requirements and Limitations

                      10-18-301. Enterprise funds for cable television or public telecommunications services.
                      (1) A municipality that provides a cable television service or a public telecommunications
                  service under this chapter:
                      (a) shall establish an enterprise fund to account for the municipality's operations of a cable
                  television service or public telecommunications service;
                      (b) for accounting purposes only, may account for its cable television services and its public
                  telecommunications services in a single enterprise fund under Chapter 6, Uniform Fiscal Procedures
                  Act for Utah Cities;
                      (c) shall, consistent with the requirements of Section 10-6-135 , adopt separate operating and
                  capital budgets for the municipality's:
                      (i) cable television services; and

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                      (ii) public telecommunications services;
                      (d) may not transfer any appropriation or other balance in any enterprise fund established
                  by the municipality under this section to another enterprise fund; and
                      (e) may not transfer any appropriation or other balance in any other enterprise fund
                  established by the municipality under Chapter 6, Uniform Fiscal Procedures Act for Utah Cities, to
                  any enterprise fund established by the municipality under this section.
                      (2) The restrictions on transfers described in Subsections (1)(d) and (e) do not apply to
                  transfers made by a municipality between other enterprise funds established by the municipality.
                      Section 13. Section 10-18-302 is enacted to read:
                      10-18-302. Bonding authority.
                      (1) The legislative body of a municipality may by resolution determine to issue one or more
                  bonds to finance the capital costs for facilities necessary to provide to subscribers:
                      (a) a cable television service; or
                      (b) a public telecommunications service.
                      (2) The resolution described in Subsection (1) shall:
                      (a) describe the purpose for which the indebtedness is to be created; and
                      (b) specify the dollar amount of the one or more bonds proposed to be issued.
                      (3) (a) A bond issued under this section shall be secured and paid for solely from the
                  revenues generated by the municipality from providing:
                      (i) cable television services with respect to bonds issued to finance facilities for the
                  municipality's cable television services; and
                      (ii) public telecommunications services with respect to bonds issued to finance facilities for
                  the municipality's public telecommunications services.
                      (b) A municipality may not pay the origination, financing, or other carrying costs associated
                  with the one or more bonds issued under this section from the general funds or other enterprise funds
                  of the municipality.
                      Section 14. Section 10-18-303 is enacted to read:
                      10-18-303. General operating limitations.

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                      A municipality that provides a cable television service or a public telecommunications
                  service under this chapter is subject to the operating limitations of this section.
                      (1) A municipality that provides a cable television service shall comply with:
                      (a) the Cable Communications Policy Act of 1984, 47 U.S.C. 521, et seq.; and
                      (b) the regulations issued by the Federal Communications Commission under the Cable
                  Communications Policy Act of 1984, 47 U.S.C. 521, et seq.
                      (2) A municipality that provides a public telecommunications service shall comply with:
                      (a) the Telecommunications Act of 1996, Pub. L. 104-104;
                      (b) the regulations issued by the Federal Communications Commission under the
                  Telecommunications Act of 1996, Pub. L. 104-104;
                      (c) Section 54-8b-2.2 relating to:
                      (i) the interconnection of essential facilities; and
                      (ii) the purchase and sale of essential services; and
                      (d) the rules made by the Public Service Commission of Utah under Section 54-8b-2.2 .
                      (3) A municipality may not cross subsidize its cable television services or its public
                  telecommunications services with:
                      (a) tax dollars;
                      (b) income from other municipal or utility services;
                      (c) below-market rate loans from the municipality; or
                      (d) any other means.
                      (4) (a) A municipality may not make or grant any undue or unreasonable preference or
                  advantage to itself or to any private provider of:
                      (i) cable television services; or
                      (ii) public telecommunications services.
                      (b) A municipality shall apply without discrimination as to itself and to any private provider
                  the municipality's ordinances, rules, and policies, including those relating to:
                      (i) obligation to serve;
                      (ii) access to public rights of way;

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                      (iii) permitting;
                      (iv) performance bonding;
                      (v) reporting; and
                      (vi) quality of service.
                      (c) Subsections (4)(a) and (b) do not supersede the exception for a rural telephone company
                  in Section 251 of the Telecommunications Act of 1996, Pub. L. 104-104.
                      (5) In calculating the rates charged by a municipality for a cable television service or a public
                  telecommunications service, the municipality:
                      (a) shall include within its rates an amount equal to all taxes, fees, and other assessments that
                  would be applicable to a similarly situated private provider of the same services, including:
                      (i) federal, state, and local taxes;
                      (ii) franchise fees;
                      (iii) permit fees;
                      (iv) pole attachment fees; and
                      (v) fees similar to those described in Subsections (5)(a)(i) through (iv); and
                      (b) may not price any cable television service or public telecommunications service at a level
                  that is less than the sum of:
                      (i) the actual direct costs of providing the service;
                      (ii) the actual indirect costs of providing the service; and
                      (iii) the amount determined under Subsection (5)(a).
                      (6) (a) A municipality that provides cable television services or public telecommunications
                  services shall establish and maintain a comprehensive price list of all cable television services or
                  public telecommunications services offered by the municipality.
                      (b) The price list required by Subsection (6)(a) shall:
                      (i) include all terms and conditions relating to the municipality providing each cable
                  television service or public telecommunications service offered by the municipality;
                      (ii) be published in a newspaper having general circulation in the municipality; and
                      (iii) be available for inspection:

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                      (A) at a designated office of the municipality; and
                      (B) during normal business hours.
                      (c) At least five days before the date a change to a municipality's price list becomes effective,
                  the municipality shall:
                      (i) notify the following of the change:
                      (A) all subscribers to the services for which the price list is being changed; and
                      (B) any other persons requesting notification of any changes to the municipality's price list;
                  and
                      (ii) publish notice in a newspaper of general circulation in the municipality.
                      (d) If there is no newspaper of general circulation in the municipality, the municipality shall
                  publish the notice required by this Subsection (6) in a newspaper of general circulation that is nearest
                  the municipality.
                      (e) A municipality may not offer a cable television service or a public telecommunications
                  service except in accordance with the prices, terms, and conditions set forth in the municipality's
                  price list.
                      (7) A municipality may not offer to provide or provide cable television services or public
                  telecommunications services to a subscriber that does not reside within the geographic boundaries
                  of the municipality.
                      (8) (a) A municipality shall keep accurate books and records of the municipality's:
                      (i) cable television services; and
                      (ii) public telecommunications services.
                      (b) The books and records required to be kept under Subsection (8)(a) are subject to
                  legislative audit to verify the municipality's compliance with the requirements of this chapter
                  including:
                      (i) pricing;
                      (ii) recordkeeping; and
                      (iii) antidiscrimination.
                      (9) A municipality may not receive distributions from the Universal Public

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                  Telecommunications Service Support Fund established in Section 54-8b-15 .
                      Section 15. Section 10-18-304 is enacted to read:
                      10-18-304. Eminent domain.
                      A municipality may not exercise its power of eminent domain to condemn plant and
                  equipment of a private provider for the purpose of providing to a subscriber:
                      (1) a cable television service; or
                      (2) a public telecommunications service.
                      Section 16. Section 10-18-305 is enacted to read:
                      10-18-305. Quality of service standards.
                      (1) A municipality that provides a cable television service or a public telecommunications
                  service shall adopt an ordinance governing the quality of service the municipality shall provide to
                  its subscribers.
                      (2) The ordinance required by Subsection (1) shall:
                      (a) be competitively neutral; and
                      (b) contain standards that are substantially similar to the standards imposed on private
                  providers operating within the geographic boundaries of the municipality under:
                      (i) the Cable Communications Policy Act of 1984, 47 U.S.C. 521, et seq.;
                      (ii) the Telecommunications Act of 1996, Pub. L. 104-104;
                      (iii) Title 54, Public Utilities;
                      (iv) regulations issued by the Federal Communications Commission under the statutes listed
                  in Subsections (2)(b)(i) and (ii); and
                      (v) rules made by the Public Service Commission of Utah under Title 54, Public Utilities.
                      Section 17. Section 10-18-306 is enacted to read:
                      10-18-306. Enforcement and appeal.
                      (1) Before a person that is or is likely to have a substantial interest affected by a
                  municipality's violation of this chapter may file an action in district court for violation of this
                  chapter, that person shall file a written complaint with the municipality in accordance with this
                  section.

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                      (2) (a) A municipality that provides a cable television service or a public                   telecommunications
                  service shall enact an ordinance establishing a procedure for the filing and resolution of complaints
                  relating to the municipality providing:
                      (i) a cable television service; or
                      (ii) a public telecommunications service.
                      (b) The procedure required by Subsection (2)(a) shall:
                      (i) permit any person described in Subsection (1) to file a complaint including:
                      (A) an individual subscriber; or
                      (B) a private provider that competes with the municipality in the geographic boundaries of
                  the municipality;
                      (ii) establish an expedited process that requires within 45 days after the date the complaint
                  is filed:
                      (A) that a hearing be held, unless the parties to the proceeding waive the requirement of a
                  hearing; and
                      (B) the issuance of a final decision; and
                      (iii) provide that failure to render a decision within the time allotted shall be treated as an
                  adverse decision for purposes of appeal.
                      (3) Appeal of an adverse decision from the municipality may be taken to the district court
                  for a de novo proceeding.
                      Section 18. Section 11-13-4 is amended to read:
                       11-13-4. Joint exercise of powers, privileges, or authority by public agencies
                  authorized -- Relationship to the Municipal Cable Television and Public Telecommunications
                  Services Act.
                      (1) Any power or powers, privileges or authority exercised or capable of exercise by a public
                  agency of this state may be exercised and enjoyed jointly with any other public agency of this state
                  having the power or powers, privileges or authority, and jointly with any public agency of any other
                  state or of the United States permit such joint exercise or enjoyment. Any agency of the state
                  government when acting jointly with any public agency may exercise and enjoy all of the powers,

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                  privileges, and authority conferred by this [act] chapter upon a public agency.
                      (2) This chapter may not enlarge or expand the authority of a public agency not authorized
                  to offer and provide cable television services and public telecommunications services under Title
                  10, Chapter 18, Municipal Cable Television and Public Telecommunications Services Act, to offer
                  or provide cable television services and public telecommunications services.
                      Section 19. Effective date.
                      If approved by two-thirds of all the members elected to each house, this act takes effect upon
                  approval by the governor, or the day following the constitutional time limit of Utah Constitution
                  Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto
                  override.

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