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H.B. 149

             1     

MUNICIPAL CABLE TELEVISION AND PUBLIC

             2     
TELECOMMUNICATIONS SERVICES ACT

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Greg J. Curtis

             6      This act modifies the Utah Municipal Code and the Interlocal Cooperation Act to limit the
             7      authority of municipalities to own and operate cable television and public
             8      telecommunications facilities and to provide cable television and public telecommunications
             9      services to a municipality's inhabitants. This act enacts the Municipal Cable Television and
             10      Public Telecommunications Services Act. This act makes related conforming and technical
             11      amendments. This act has an immediate effective date.
             12      This act affects sections of Utah Code Annotated 1953 as follows:
             13      AMENDS:
             14          10-8-14, as last amended by Chapter 365, Laws of Utah 1999
             15          11-13-4, as enacted by Chapter 14, Laws of Utah 1965
             16      ENACTS:
             17          10-18-101, Utah Code Annotated 1953
             18          10-18-102, Utah Code Annotated 1953
             19          10-18-103, Utah Code Annotated 1953
             20          10-18-104, Utah Code Annotated 1953
             21          10-18-105, Utah Code Annotated 1953
             22          10-18-106, Utah Code Annotated 1953
             23          10-18-201, Utah Code Annotated 1953
             24          10-18-202, Utah Code Annotated 1953
             25          10-18-203, Utah Code Annotated 1953
             26          10-18-204, Utah Code Annotated 1953
             27          10-18-301, Utah Code Annotated 1953


             28          10-18-302, Utah Code Annotated 1953
             29          10-18-303, Utah Code Annotated 1953
             30          10-18-304, Utah Code Annotated 1953
             31          10-18-305, Utah Code Annotated 1953
             32          10-18-306, Utah Code Annotated 1953
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 10-8-14 is amended to read:
             35           10-8-14. Water, sewer, gas, electricity, telephone, and public transportation --
             36      Service beyond city limits -- Retainage.
             37          (1) [They] A city may:
             38          (a) construct, maintain, and operate waterworks, sewer collection, sewer treatment
             39      systems, gas works, electric light works, [telephone] telecommunications lines, cable television
             40      lines, or public transportation systems[, or];
             41          (b) authorize the construction, maintenance and operation of the [same] works or systems
             42      listed in Subsection (1)(a) by others[, or];
             43          (c) purchase or lease [such] the works or systems listed in Subsection (1)(a) from any
             44      person or corporation[,]; and [they may]
             45          (d) sell and deliver the surplus product or service capacity of any [such] works or system
             46      listed in Subsection (1)(a), not required by the city or [its] the city's inhabitants, to others beyond
             47      the limits of the city, except the sale and delivery of cable television services or public
             48      telecommunications services is governed by Subsection (3).
             49          (2) If any payment on a contract with a private person, firm, or corporation to construct
             50      waterworks, sewer collection, sewer treatment systems, gas works, electric light works, [telephone
             51      lines] telecommunication lines, cable television lines, or public transportation systems is retained
             52      or withheld, it shall be retained or withheld and released as provided in Section 13-8-5 .
             53          (3) A city's actions under this section related to works or systems involving public
             54      telecommunications services or cable television services are subject to the requirements of Chapter
             55      18, Municipal Cable Television and Public Telecommunications Services Act.
             56          Section 2. Section 10-18-101 is enacted to read:
             57     
CHAPTER 18. MUNICIPAL CABLE TELEVISION AND PUBLIC

             58     
TELECOMMUNICATIONS SERVICES ACT


             59     
Part 1. General Provisions

             60          10-18-101. Title -- Policy statement.
             61          (1) This chapter is known as the "Municipal Cable Television and Public
             62      Telecommunications Services Act."
             63          (2) The Legislature finds that it is the policy of this state to:
             64          (a) ensure that cable television services and public telecommunications services are
             65      provided through fair competition consistent with the federal Telecommunications Act of 1996,
             66      Public Law 104-104, in order to provide the widest possible diversity of information and news
             67      sources to the general public;
             68          (b) advance the exercise of rights under the First Amendment of the Constitution of the
             69      United States;
             70          (c) enhance the development and widespread use of technological advances in providing
             71      cable television services and public telecommunications services;
             72          (d) encourage improved customer service of cable television services and public
             73      telecommunications services at competitive rates;
             74          (e) ensure that cable television services and public telecommunications services are each
             75      provided within a consistent, comprehensive, and nondiscriminatory federal, state, and local
             76      government framework; and
             77          (f) ensure that when a municipality provides to its inhabitants cable television services,
             78      public telecommunications services, or both, and competes with private providers whose activities
             79      are regulated by the municipality, the municipality does not discriminate against the competing
             80      providers of the same services.
             81          Section 3. Section 10-18-102 is enacted to read:
             82          10-18-102. Definitions.
             83          As used in this chapter:
             84          (1) "Cable television service" means:
             85          (a) the one-way transmission to subscribers of:
             86          (i) video programming, or
             87          (ii) other programming service; and
             88          (b) subscriber interaction, if any, that is required for the selection or use of:
             89          (i) the video programming; or


             90          (ii) other programming service.
             91          (2) "Capital costs" means all costs of providing a service that are capitalized in accordance
             92      with generally accepted accounting principles.
             93          (3) "Cross subsidize" means to pay a cost included in the direct costs or indirect costs of
             94      providing a service that is not accounted for in the full cost of accounting of providing the service.
             95          (4) "Direct costs" means those expenses of a municipality that:
             96          (a) are directly attributable to providing:
             97          (i) a cable television service; or
             98          (ii) a public telecommunications service; and
             99          (b) would be eliminated if the service described in Subsection (4)(a) were not provided
             100      by the municipality.
             101          (5) "Feasibility consultant" means an individual or entity with expertise in the processes
             102      and economics of providing:
             103          (a) cable television service; and
             104          (b) public telecommunications service.
             105          (6) (a) "Full-cost accounting" means the accounting of all costs incurred by a municipality
             106      in providing:
             107          (i) a cable television service; or
             108          (ii) a public telecommunications service.
             109          (b) The costs included in a full-cost accounting include all:
             110          (i) capital costs;
             111          (ii) direct costs; and
             112          (iii) indirect costs.
             113          (7) (a) "Indirect costs" means any costs:
             114          (i) identified with two or more services or other functions; and
             115          (ii) that are not directly identified with a single service or function.
             116          (b) "Indirect costs" may include cost factors for:
             117          (i) administration;
             118          (ii) accounting;
             119          (iii) personnel;
             120          (iv) purchasing;


             121          (v) legal support; and
             122          (vi) other staff or departmental support.
             123          (8) "Private provider" means a person that:
             124          (a) provides:
             125          (i) cable television services; or
             126          (ii) public telecommunications services; and
             127          (b) is a private entity.
             128          (9) "Public telecommunications service" means the two-way transmission of signs, signals,
             129      writing, images, sounds, messages, data, or other information of any nature by wire, radio,
             130      lightwaves, or other electromagnetic means offered to the public generally.
             131          (10) "Subscribers" means a person that lawfully receives:
             132          (a) cable television services; or
             133          (b) public telecommunications services.
             134          Section 4. Section 10-18-103 is enacted to read:
             135          10-18-103. Antitrust immunity.
             136          (1) When a municipality is offering or providing a cable television service or public
             137      telecommunications service, the immunity from antitrust liability afforded to political subdivisions
             138      of the state under Section 76-10-919 does not apply to the municipality providing those services.
             139          (2) A municipality that provides a cable television service or a public telecommunications
             140      service is subject to applicable antitrust liabilities under the federal Local Government Antitrust
             141      Act of 1984, 15 U.S.C. Sections 34 to 36.
             142          Section 5. Section 10-18-104 is enacted to read:
             143          10-18-104. Application to existing contracts.
             144          (1) (a) If before the sooner of March 1 or the effective date of the chapter, the legislative
             145      body of a municipality authorized the municipality to offer or provide cable television services or
             146      public telecommunication services, each authorized service:
             147          (i) is exempt from Part 2; and
             148          (ii) is subject to Part 3.
             149          (b) The exemption described in Subsection (1)(a)(i) may not apply to any cable television
             150      service or public telecommunications service authorized by the legislative body of a municipality
             151      on or after the sooner of March 1 or the effective date of this chapter.


             152          (2) This chapter does not:
             153          (a) invalidate any contract entered into by a municipality before the sooner of March 1 or
             154      the effective date of this chapter:
             155          (i) for the design, construction, equipping, operation, or maintenance of facilities used or
             156      to be used by the municipality, or by a private provider under a contract with the municipality for
             157      the purpose of providing:
             158          (A) cable television services; or
             159          (B) public telecommunications services;
             160          (ii) with a private provider for the use of the facilities described in Subsection (2)(a)(i) in
             161      connection with the private provider offering:
             162          (A) cable television services; or
             163          (B) public telecommunications services;
             164          (iii) with a subscriber for providing:
             165          (A) a cable television service; or
             166          (B) a public telecommunications service; or
             167          (iv) to obtain or secure financing for the acquisition or operation of the municipality's
             168      facilities or equipment used in connection with providing:
             169          (A) a cable television service; or
             170          (B) a public telecommunications service; or
             171          (b) impair any security interest granted by a municipality as collateral for the municipality's
             172      obligations under a contract described in Subsection (2)(a).
             173          (3) (a) A municipality meeting the one or more of the following conditions is exempt from
             174      this chapter as provided in Subsection (3)(b):
             175          (i) a municipality that adopts or enacts a bond resolution on or before January 1, 2001, to
             176      fund facilities or equipment that the municipality uses to provide:
             177          (A) cable television services; or
             178          (B) public telecommunications services; or
             179          (ii) a municipality that has operated for at least five years consecutively before the sooner
             180      of March 1 or the effective date of this bill:
             181          (A) a cable television service; or
             182          (B) a public television service.


             183          (b) A municipality described in Subsection (3)(a) is exempt from this chapter except for:
             184          (i) Subsection 10-18-303 (4);
             185          (ii) Subsection 10-18-303 (7);
             186          (iii) Subsection 10-18-303 (9);
             187          (iv) Section 10-18-304 ; and
             188          (v) Section 10-18-305 .
             189          Section 6. Section 10-18-105 is enacted to read:
             190          10-18-105. Scope of chapter.
             191          (1) Nothing in this chapter authorizes any county or other political subdivision of this state
             192      to:
             193          (a) provide:
             194          (i) a cable television service; or
             195          (ii) a public telecommunications service; or
             196          (b) purchase, lease, construct, maintain, or operate a facility for the purpose of providing:
             197          (i) a cable television service; or
             198          (ii) a public telecommunications service.
             199          (2) Nothing in this chapter applies to a municipality purchasing, leasing, constructing, or
             200      equipping facilities:
             201          (a) that are designed to provide services within the municipality; and
             202          (b) that the municipality:
             203          (i) uses for internal municipal government purposes; or
             204          (ii) by written contract, leases, sells capacity in, or grants other similar rights to a private
             205      provider to use the facilities in connection with a private provider offering:
             206          (A) cable television services; or
             207          (B) public telecommunication services.
             208          Section 7. Section 10-18-106 is enacted to read:
             209          10-18-106. Severability.
             210          If any provision of this chapter or the application of any provision of this chapter is found
             211      invalid, the remainder of this chapter shall be given effect without the invalid provision or
             212      application.
             213          Section 8. Section 10-18-201 is enacted to read:


             214     
Part 2. Conditions for Providing Services

             215          10-18-201. Limitations on providing a cable television and public telecommunications
             216      services.
             217          (1) Except as provided in this chapter, a municipality may not:
             218          (a) provide to one or more subscribers:
             219          (i) a cable television service; or
             220          (ii) a public telecommunications service; or
             221          (b) for the purpose of providing a cable television service or a public telecommunications
             222      service to one or more subscribers, purchase, lease, construct, maintain, or operate any facility.
             223          (2) For purposes of this chapter, a municipality provides a cable television service or
             224      public telecommunications service if the municipality provides the service:
             225          (a) directly or indirectly, including through an authority or instrumentality:
             226          (i) acting on behalf of the municipality; or
             227          (ii) for the benefit of the municipality;
             228          (b) by itself;
             229          (c) through:
             230          (i) a partnership; or
             231          (ii) joint venture; or
             232          (d) by contract, resale, or otherwise.
             233          Section 9. Section 10-18-202 is enacted to read:
             234          10-18-202. Required steps before a municipality may provide cable television or
             235      public telecommunications services.
             236          Before a municipality may engage or offer to engage in an activity described in Subsection
             237      10-8-201 (1), the legislative body of the municipality shall:
             238          (1) hold a preliminary public hearing;
             239          (2) if the legislative body elects to proceed after holding the preliminary public hearing
             240      required by Subsection (1), approve the hiring of a feasibility consultant to conduct a feasibility
             241      study in accordance with Section 10-18-203 ;
             242          (3) determine whether under the feasibility study conducted under Section 10-18-203 , the
             243      average annual revenues under Subsection 10-18-203 (2)(f) exceed the average annual costs under
             244      Subsection 10-18-203 (2)(e) by at least the amount necessary to meet the bond obligations of any


             245      bonds issued to fund the proposed cable television services or public telecommunications services:
             246          (a) based on the feasibility study's analysis:
             247          (i) for the first year of the study; and
             248          (ii) the five-year projection; and
             249          (b) separately stated with respect to:
             250          (i) the proposed cable television services; or
             251          (ii) the proposed public telecommunications services;
             252          (4) if the conditions of Subsection (3) are met, hold the public hearings required by Section
             253      10-18-203 ; and
             254          (5) after holding the public hearing required by Section 10-18-203 , if the legislative body
             255      of the municipality elects to proceed, adopt by resolution the feasibility study.
             256          Section 10. Section 10-18-203 is enacted to read:
             257          10-18-203. Feasibility study on providing cable television or public
             258      telecommunications services -- Public hearings.
             259          (1) If a feasibility consultant is hired under Section 10-18-202 , the legislative body of the
             260      municipality shall require the feasibility consultant to:
             261          (a) complete the feasibility study in accordance with this section;
             262          (b) submit to the legislative body by no later than 180 days from the date the feasibility
             263      consultant is hired to conduct the feasibility study:
             264          (i) the full written results of the feasibility study; and
             265          (ii) a summary of the results that is no longer than one page in length; and
             266          (c) attend the public hearings described in Subsection (4) to:
             267          (i) present the feasibility study results; and
             268          (ii) respond to questions from the public.
             269          (2) The feasibility study described in Subsection (1) shall at a minimum consider:
             270          (a) (i) if the municipality is proposing to provide cable television services to subscribers,
             271      whether the municipality providing cable television services in the manner proposed by the
             272      municipality will hinder or advance competition for cable television services in the municipality;
             273          (ii) if the municipality is proposing to provide public telecommunications services to
             274      subscribers, whether the municipality providing public telecommunications services in the manner
             275      proposed by the municipality will hinder or advance competition for public telecommunications


             276      services in the municipality;
             277          (b) whether but for the municipality any person would provide the proposed:
             278          (i) cable television services; or
             279          (ii) public telecommunications services;
             280          (c) the fiscal impact on the municipality of:
             281          (i) the capital investment in facilities that will be used to provide the proposed:
             282          (A) cable television services; or
             283          (B) public telecommunications services; and
             284          (ii) the expenditure of funds for labor, financing, and administering the proposed:
             285          (A) cable television services; or
             286          (B) public telecommunications services;
             287          (d) the projected growth in demand in the municipality for the proposed:
             288          (i) cable television services; or
             289          (ii) public telecommunications services;
             290          (e) the projections at the time of the feasability study and for the next five years, of a full
             291      cost accounting for a municipality to purchase, lease, construct, maintain, or operate the facilities
             292      necessary to provide the proposed:
             293          (i) cable television services; or
             294          (ii) public telecommunications services; and
             295          (f) the projections at the time of the feasability study and for the next five years of the
             296      revenues to be generated from the proposed:
             297          (i) cable television services; or
             298          (ii) public telecommunications services.
             299          (3) For purposes of the financial projections required under Subsections (2)(e) and (f), the
             300      feasibility consultant shall assume that the municipality will price the proposed cable television
             301      services or public telecommunications services consistent with Subsection 10-18-303 (5).
             302          (4) If the results of the feasibility study satisfy the revenue requirement of Subsection
             303      10-18-202 (3), the legislative body, at the next regular meeting after the legislative body receives
             304      the results of the feasibility study, shall schedule at least two public hearings to be held:
             305          (a) within 60 days of the meeting at which the public hearings are scheduled;
             306          (b) at least seven days apart; and


             307          (c) for the purpose of allowing:
             308          (i) the feasibility consultant to present the results of the feasibility study; and
             309          (ii) the public to:
             310          (A) become informed about the feasibility study results; and
             311          (B) ask questions of the feasibility consultant about the results of the feasibility study.
             312          (5) (a) Except as provided in Subsection (5)(c), the municipality shall publish notice of the
             313      public hearings required under Subsection (4) at least once a week for three consecutive weeks in
             314      a newspaper of general circulation in the municipality.
             315          (b) The last publication of notice required under Subsection (5)(a) shall be at least three
             316      days before the first public hearing required under Subsection (4).
             317          (c) (i) If there is no newspaper of general circulation in the municipality, for each 1,000
             318      residents, the municipality shall post at least one notice of the hearings in a conspicuous place
             319      within the municipality that is likely to give notice of the hearings to the greatest number of
             320      residents of the municipality.
             321          (ii) The municipality shall post the notices at least seven days before the first public
             322      hearing required under Subsection (4) is held.
             323          Section 11. Section 10-18-204 is enacted to read:
             324          10-18-204. Vote permissible -- Referendum.
             325          (1) (a) A legislative body by a majority vote may call an election on whether or not the
             326      municipality shall provide the proposed:
             327          (i) cable television services; or
             328          (ii) public telecommunications services.
             329          (b) If under Subsection (1)(a) the legislative body calls an election, the election shall be
             330      held:
             331          (i) (A) at the next municipal general election; or
             332          (B) as provided in Subsection 20A-1-203 (1), at a local special election the purpose of
             333      which is authorized by this section; and
             334          (ii) in accordance with Title 20A, Election Code, except as provided in this section.
             335          (c) The notice of the election shall include with any other information required by law:
             336          (i) a summary of the cable television services or public telecommunications services that
             337      the legislative body of the municipality proposes to provide to subscribers residing within the


             338      boundaries of the municipality;
             339          (ii) the feasibility study summary under Section 10-18-203 ;
             340          (iii) a statement that a full copy of the feasibility study is available for inspection and
             341      copying; and
             342          (iv) the location in the municipality where the feasibility study may be inspected or copied.
             343          (d) The ballot at the election shall pose the question substantially as follows: Shall the
             344      [name of the municipality] provide [cable television service or public telecommunications service]
             345      to the inhabitants of the [municipality].
             346          (e) The ballot proposition may not take effect until submitted to the electors and approved
             347      by the majority of those voting on the ballot.
             348          (2) In accordance with Title 20A, Chapter 7, Issues Submitted to the Voters, a municipality
             349      legislative body's action to have the municipality provide cable television services or public
             350      television services is subject to local referenda.
             351          Section 12. Section 10-18-301 is enacted to read:
             352     
Part 3. Operational Requirements and Limitations

             353          10-18-301. Enterprise funds for cable television of public telecommunications
             354      services.
             355          (1) A municipality that provides a cable television service or a public telecommunications
             356      service under this chapter:
             357          (a) shall establish an enterprise fund to account for the municipality's operations of a cable
             358      television service or public telecommunications service;
             359          (b) for accounting purposes only, may account for its cable television services and its
             360      public telecommunications services in a single enterprise fund under Chapter 6, Uniform Fiscal
             361      Procedures Act for Utah Cities;
             362          (c) shall, consistent with the requirements of Section 10-6-135 , adopt separate operating
             363      and capital budgets for the municipality's:
             364          (i) cable television services; and
             365          (ii) public telecommunications services;
             366          (d) may not transfer any appropriation or other balance in any enterprise fund established
             367      by the municipality under this section to another enterprise fund; and
             368          (e) may not transfer any appropriation or other balance in any other enterprise fund


             369      established by the municipality under Chapter 6, Uniform Fiscal Procedures Act for Utah Cities,
             370      to any enterprise fund established by the municipality under this section.
             371          (2) The restrictions on transfers described in Subsections (1)(d) and (e) do not apply to
             372      transfers made by a municipality between other enterprise funds established by the municipality.
             373          Section 13. Section 10-18-302 is enacted to read:
             374          10-18-302. Bonding authority.
             375          (1) The legislative body of a municipality may by resolution determine to issue one or
             376      more bonds to finance the capital costs for facilities necessary to provide to subscribers:
             377          (a) a cable television service; or
             378          (b) a public telecommunications service.
             379          (2) The resolution described in Subsection (1) shall:
             380          (a) describe the purpose for which the indebtedness is to be created; and
             381          (b) specify the dollar amount of the one or more bonds proposed to be issued.
             382          (3) (a) A bond issued under this section shall be secured and paid for solely from the
             383      revenues generated by the municipality from providing:
             384          (i) cable television services with respect to bonds issued to finance facilities for the
             385      municipality's cable television services; and
             386          (ii) public telecommunications services with respect to bonds issued to finance facilities
             387      for the municipality's public telecommunications services.
             388          (b) A municipality may not pay the origination, financing, or other carrying costs
             389      associated with the one or more bonds issued under this section from the general funds or other
             390      enterprise funds of the municipality.
             391          Section 14. Section 10-18-303 is enacted to read:
             392          10-18-303. General operating limitations.
             393          A municipality that provides a cable television service or a public telecommunications
             394      service under this chapter is subject to the operating limitations of this section.
             395          (1) A municipality that provides a cable television service shall comply with:
             396          (a) the Cable Communications Policy Act of 1984, 47 U.S.C. 521, et seq.; and
             397          (b) the regulations issued by the Federal Communications Commission under the Cable
             398      Communications Policy Act of 1984, 47 U.S.C. 521, et seq.
             399          (2) A municipality that provides a public telecommunications service shall comply with:


             400          (a) the Telecommunications Act of 1996, Pub. L. 104-104;
             401          (b) the regulations issued by the Federal Communications Commission under the
             402      Telecommunications Act of 1996, Pub. L. 104-104;
             403          (c) Section 54-8b-2.2 relating to:
             404          (i) the interconnection of essential facilities; and
             405          (ii) the purchase and sale of essential services; and
             406          (d) the rules made by the Public Service Commission of Utah under Section 54-8b-2.2 .
             407          (3) A municipality may not cross-subsidize its cable television services or its public
             408      telecommunications services with:
             409          (a) tax dollars;
             410          (b) income from other municipal or utility services;
             411          (c) below-market rate loans from the municipality; or
             412          (d) any other means.
             413          (4) (a) A municipality may not make or grant any undue or unreasonable preference or
             414      advantage to itself or to any private provider of:
             415          (i) cable television services; or
             416          (ii) public telecommunications services.
             417          (b) A municipality shall apply without discrimination as to itself and to any private
             418      provider the municipality's ordinances, rules, and policies, including those relating to:
             419          (i) obligation to serve;
             420          (ii) access to public rights of way;
             421          (iii) permitting;
             422          (iv) performance bonding;
             423          (v) reporting; and
             424          (vi) quality of service.
             425          (5) In calculating the rates charged by a municipality for a cable television service or a
             426      public telecommunications service, the municipality:
             427          (a) shall include within its rates an amount equal to all taxes, fees, and other assessments
             428      that would be applicable to a similarly situated private provider of the same services, including:
             429          (i) federal, state, and local taxes;
             430          (ii) franchise fees;


             431          (iii) permit fees;
             432          (iv) pole attachment fees; and
             433          (v) fees similar to those described in Subsections (5)(a)(i) through (iv); and
             434          (b) may not price any cable television service or public telecommunications service at a
             435      level that is less than the sum of:
             436          (i) the actual direct costs of providing the service;
             437          (ii) the actual indirect costs of providing the service; and
             438          (iii) the amount determined under Subsection (5)(a).
             439          (6) (a) A municipality that provides cable television services or public telecommunications
             440      services shall establish and maintain a comprehensive price list of all cable television services or
             441      public telecommunications services offered by the municipality.
             442          (b) The price list required by Subsection (6)(a) shall:
             443          (i) include all terms and conditions relating to the municipality providing each cable
             444      television service or public telecommunications service offered by the municipality;
             445          (ii) be published in a newspaper having general circulation in the municipality; and
             446          (iii) be available for inspection:
             447          (A) at a designated office of the municipality; and
             448          (B) during normal business hours.
             449          (c) At least five days before the date a change to a municipality's price list becomes
             450      effective, the municipality shall:
             451          (i) notify the following of the change:
             452          (A) all subscribers to the services for which the price list is being changed; and
             453          (B) any other persons requesting notification of any changes to the municipality's price list;
             454      and
             455          (ii) publish notice in a newspaper of general circulation in the municipality.
             456          (d) If there is no newspaper of general circulation in the municipality, the municipality
             457      shall publish the notice required by this Subsection (6) in a newspaper of general circulation that
             458      is nearest the municipality.
             459          (e) A municipality may not offer a cable television service or a public telecommunications
             460      service except in accordance with the prices, terms, and conditions set forth in the municipality's
             461      price list.


             462          (7) A municipality may not offer to provide or provide cable television services or public
             463      telecommunications services to a subscriber that does not reside within the geographic boundaries
             464      of the municipality.
             465          (8) (a) A municipality shall keep accurate books and records of the municipality's:
             466          (i) cable television services; and
             467          (ii) public telecommunications services.
             468          (b) The books and records required to be kept under Subsection (8)(a) are subject to
             469      legislative audit to verify the municipality's compliance with the requirements of this chapter
             470      including:
             471          (i) pricing;
             472          (ii) recordkeeping; and
             473          (iii) antidiscrimination.
             474          (9) A municipality may not receive distributions from the Universal Public
             475      Telecommunications Service Support Fund established in Section 54-8b-15 .
             476          Section 15. Section 10-18-304 is enacted to read:
             477          10-18-304. Eminent domain.
             478          A municipality may not exercise its power of eminent domain to condemn plant and
             479      equipment of a private provider for the purpose of providing to a subscriber:
             480          (1) a cable television service; or
             481          (2) a public telecommunications service.
             482          Section 16. Section 10-18-305 is enacted to read:
             483          10-18-305. Quality of service standards.
             484          (1) A municipality that provides a cable television service or a public telecommunications
             485      service shall adopt an ordinance governing the quality of service the municipality shall provide to
             486      its subscribers.
             487          (2) The ordinance required by Subsection (1) shall:
             488          (a) be competitively neutral; and
             489          (b) contain standards that are substantially similar to the standards imposed on private
             490      providers operating within the geographic boundaries of the municipality under:
             491          (i) the Cable Communications Policy Act of 1984, 47 U.S.C. 521, et seq.;
             492          (ii) the Telecommunications Act of 1996, Pub. L. 104-104;


             493          (iii) Title 54, Public Utilities;
             494          (iv) regulations issued by the Federal Communications Commission under the statutes
             495      listed in Subsections (2)(b)(i) and (ii); and
             496          (v) rules made by the Public Service Commission of Utah under Title 54, Public Utilities.
             497          Section 17. Section 10-18-306 is enacted to read:
             498          10-18-306. Enforcement and appeal.
             499          (1) Before a person that is or is likely to have a substantial interest affected by a
             500      municipality's violation of this chapter may file an action in district court for violation of this
             501      chapter, that person shall file a written complaint with the municipality in accordance with this
             502      section.
             503          (2) (a) A municipality that provides a cable television service or a public
             504      telecommunications service shall enact an ordinance establishing a procedure for the filing and
             505      resolution of complaints relating to the municipality providing:
             506          (i) a cable television service; or
             507          (ii) a public telecommunications service.
             508          (b) The procedure required by Subsection (2)(a) shall:
             509          (i) permit any person described in Subsection (1) to file a complaint including:
             510          (A) an individual subscriber; or
             511          (B) a private provider that competes with the municipality in the geographic boundaries
             512      of the municipality;
             513          (ii) establish an expedited process that requires within 45 days after the date the complaint
             514      is filed:
             515          (A) that a hearing be held, unless the parties to the proceeding waive the requirement of
             516      a hearing; and
             517          (B) the issuance of a final decision; and
             518          (iii) provide that failure to render a decision within the time allotted shall be treated as an
             519      adverse decision for purposes of appeal.
             520          (3) Appeal of an adverse decision from the municipality may be taken to the district court
             521      for a de novo proceeding.
             522          Section 18. Section 11-13-4 is amended to read:
             523           11-13-4. Joint exercise of powers, privileges, or authority by public agencies


             524      authorized.
             525          (1) Any power or powers, privileges or authority exercised or capable of exercise by a
             526      public agency of this state may be exercised and enjoyed jointly with any other public agency of
             527      this state having the power or powers, privileges or authority, and jointly with any public agency
             528      of any other state or of the United States permit such joint exercise or enjoyment. Any agency of
             529      the state government when acting jointly with any public agency may exercise and enjoy all of the
             530      powers, privileges, and authority conferred by this [act] chapter upon a public agency.
             531          (2) This chapter may not enlarge or expand the authority of a public agency not authorized
             532      to offer and provide cable television services and public telecommunications services under Title
             533      10, Chapter 18, Municipal Cable Television and Public Telecommunications Services Act, to offer
             534      or provide cable television services and public telecommunications services.
             535          Section 19. Effective date.
             536          If approved by two-thirds of all the members elected to each house, this act takes effect
             537      upon approval by the governor, or the day following the constitutional time limit of Utah
             538      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
             539      date of veto override.




Legislative Review Note
    as of 2-9-01 11:12 AM


This bill addresses a municipality's ability to provide certain services including cable television
and public telecommunication services. The bill might be challenged under the Utah Constitution
on grounds such as whether it is a municipal function to provide such services and if so whether
it is subject to limitations under Utah Constitution. These constitutional limitations include Article
VI, Sec. 28, which prohibits the Legislature from delegating to a special commission, such as the
Public Service Commission, the performance of a municipal function; or Article XI, Sec. 5, which
appears to give to charter cities the power to furnish local public services; to own, maintain, and
operate public utilities; or to acquire property through condemnation for public improvements.
There is conflicting case law as to whether Article XI, Sec. 5 applies to all cities or only charter
cities. Moreover, the Federal Telecommunications Law of 1996 may arguably preempt state law
and require competitively neutral state regulation of cable and telecommunication services. It
would be for a court to decide whether the Legislature has properly regulated a municipality's
provision of these cable television and telecommunication services.

Office of Legislative Research and General Counsel


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