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H.B. 273

             1     

MUNICIPAL TELECOMMUNICATIONS AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Keith Grover

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to a rate charged by a municipality for cable
             10      television or public telecommunication service.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires a municipality that offers cable television service or public
             14      telecommunication service to charge a rate that is just and reasonable for the
             15      service;
             16          .    prohibits a municipality from collecting compensation in excess of a rate or
             17      discounting a rate;
             18          .    repeals outdated language; and
             19          .    makes technical corrections.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          10-18-104, as enacted by Laws of Utah 2001, Chapter 83
             27          10-18-301, as enacted by Laws of Utah 2001, Chapter 83


             28          10-18-303, as last amended by Laws of Utah 2009, Chapter 388
             29      ENACTS:
             30          10-18-303.5, Utah Code Annotated 1953
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 10-18-104 is amended to read:
             34           10-18-104. Application to existing contracts.
             35          (1) (a) If before the sooner of March 1 or the effective date of the chapter, the
             36      legislative body of a municipality authorized the municipality to offer or provide cable
             37      television services or public telecommunications services, each authorized service:
             38          (i) is exempt from Part 2, Conditions for Providing Services; and
             39          (ii) is subject to Part 3, Operational Requirements and Limitations.
             40          (b) The exemption described in Subsection (1)(a)(i) may not apply to any cable
             41      television service or public telecommunications service authorized by the legislative body of a
             42      municipality on or after the sooner of March 1 or the effective date of this chapter.
             43          (2) This chapter does not:
             44          (a) invalidate any contract entered into by a municipality before the sooner of March 1
             45      or the effective date of this chapter:
             46          (i) for the design, construction, equipping, operation, or maintenance of facilities used
             47      or to be used by the municipality, or by a private provider under a contract with the
             48      municipality for the purpose of providing:
             49          (A) cable television services; or
             50          (B) public telecommunications services;
             51          (ii) with a private provider for the use of the facilities described in Subsection (2)(a)(i)
             52      in connection with the private provider offering:
             53          (A) cable television services; or
             54          (B) public telecommunications services;
             55          (iii) with a subscriber for providing:
             56          (A) a cable television service; or
             57          (B) a public telecommunications service; or
             58          (iv) to obtain or secure financing for the acquisition or operation of the municipality's


             59      facilities or equipment used in connection with providing:
             60          (A) a cable television service; or
             61          (B) a public telecommunications service; or
             62          (b) impair any security interest granted by a municipality as collateral for the
             63      municipality's obligations under a contract described in Subsection (2)(a).
             64          (3) (a) A municipality meeting the one or more of the following conditions is exempt
             65      from this chapter as provided in Subsection (3)(b):
             66          (i) a municipality that adopts or enacts a bond resolution on or before January 1, 2001,
             67      to fund facilities or equipment that the municipality uses to provide:
             68          (A) cable television services; or
             69          (B) public telecommunications services; or
             70          (ii) a municipality that has operated for at least three years consecutively before the
             71      sooner of March 1 or the effective date of this chapter:
             72          (A) a cable television service; or
             73          (B) a public telecommunications service.
             74          (b) A municipality described in Subsection (3)(a) is exempt from this chapter except
             75      for:
             76          (i) Subsection 10-18-303 (4);
             77          (ii) Subsection 10-18-303 (7);
             78          (iii) Subsection 10-18-303 (9);
             79          (iv) Section 10-18-304 ; and
             80          (v) Section 10-18-305 .
             81          [(4) For the time period beginning on the effective date of this chapter and ending on
             82      December 31, 2001, a municipality that operated a cable television service as of January 1,
             83      2001, is exempt from Subsection 10-18-301 (1)(d).]
             84          Section 2. Section 10-18-301 is amended to read:
             85           10-18-301. Enterprise funds for cable television or public telecommunications
             86      services.
             87          [(1)] A municipality that provides a cable television service or a public
             88      telecommunications service under this chapter:
             89          [(a)] (1) shall establish an enterprise fund to account for the municipality's operations


             90      of a cable television service or public telecommunications service;
             91          [(b)] (2) for accounting purposes only, may account for its cable television services and
             92      its public telecommunications services in a single enterprise fund under Chapter 6, Uniform
             93      Fiscal Procedures Act for Utah Cities;
             94          [(c)] (3) shall, consistent with the requirements of Section 10-6-135 , adopt separate
             95      operating and capital budgets for the municipality's:
             96          [(i)] (a) cable television services; and
             97          [(ii)] (b) public telecommunications services;
             98          [(d)] (4) may not transfer any appropriation or other balance in any enterprise fund
             99      established by the municipality under this section to another enterprise fund; and
             100          [(e)] (5) may not transfer any appropriation or other balance in any other enterprise
             101      fund established by the municipality under Chapter 6, Uniform Fiscal Procedures Act for Utah
             102      Cities, to any enterprise fund established by the municipality under this section.
             103          [(2) The restrictions on transfers described in Subsections (1)(d) and (e) do not apply to
             104      transfers made by a municipality between other enterprise funds established by the
             105      municipality.]
             106          Section 3. Section 10-18-303 is amended to read:
             107           10-18-303. General operating limitations.
             108          A municipality that provides a cable television service or a public telecommunications
             109      service under this chapter is subject to the operating limitations of this section.
             110          (1) A municipality that provides a cable television service shall comply with:
             111          (a) the Cable Communications Policy Act of 1984, 47 U.S.C. 521, et seq.; and
             112          (b) the regulations issued by the Federal Communications Commission under the Cable
             113      Communications Policy Act of 1984, 47 U.S.C. 521, et seq.
             114          (2) A municipality that provides a public telecommunications service shall comply
             115      with:
             116          (a) the Telecommunications Act of 1996, Pub. L. 104-104;
             117          (b) the regulations issued by the Federal Communications Commission under the
             118      Telecommunications Act of 1996, Pub. L. 104-104;
             119          (c) Section 54-8b-2.2 relating to:
             120          (i) the interconnection of essential facilities; and


             121          (ii) the purchase and sale of essential services; and
             122          (d) the rules made by the Public Service Commission of Utah under Section 54-8b-2.2 .
             123          (3) A municipality may not cross subsidize its cable television services or its public
             124      telecommunications services with:
             125          (a) tax dollars;
             126          (b) income from other municipal or utility services;
             127          (c) below-market rate loans from the municipality; or
             128          (d) any other means.
             129          (4) (a) A municipality may not make or grant any undue or unreasonable preference or
             130      advantage to itself or to any private provider of:
             131          (i) cable television services; or
             132          (ii) public telecommunications services.
             133          (b) A municipality shall apply without discrimination as to itself and to any private
             134      provider the municipality's ordinances, rules, and policies, including those relating to:
             135          (i) obligation to serve;
             136          (ii) access to public rights of way;
             137          (iii) permitting;
             138          (iv) performance bonding;
             139          (v) reporting; and
             140          (vi) quality of service.
             141          (c) Subsections (4)(a) and (b) do not supersede the exception for a rural telephone
             142      company in Section 251 of the Telecommunications Act of 1996, Pub. L. 104-104.
             143          (5) In calculating the rates charged by a municipality for a cable television service or a
             144      public telecommunications service, the municipality:
             145          (a) shall include within its rates an amount equal to all taxes, fees, and other
             146      assessments that would be applicable to a similarly situated private provider of the same
             147      services, including:
             148          (i) federal, state, and local taxes;
             149          (ii) franchise fees;
             150          (iii) permit fees;
             151          (iv) pole attachment fees; and


             152          (v) fees similar to those described in Subsections (5)(a)(i) through (iv); [and]
             153          (b) may not price any cable television service or public telecommunications service at a
             154      level that is less than the sum of:
             155          (i) the actual direct costs of providing the service;
             156          (ii) the actual indirect costs of providing the service; and
             157          (iii) the amount determined under Subsection (5)(a)[.]; and
             158          (c) shall comply with the requirements of Section 10-18-303.5 .
             159          (6) (a) A municipality that provides cable television services or public
             160      telecommunications services shall establish and maintain a comprehensive price list of all cable
             161      television services or public telecommunications services offered by the municipality.
             162          (b) The price list required by Subsection (6)(a) shall:
             163          (i) include all terms and conditions relating to the municipality providing each cable
             164      television service or public telecommunications service offered by the municipality;
             165          (ii) (A) be published in a newspaper having general circulation in the municipality; and
             166          (B) be published in accordance with Section 45-1-101 ; and
             167          (iii) be available for inspection:
             168          (A) at a designated office of the municipality; and
             169          (B) during normal business hours.
             170          (c) At least five days before the date a change to a municipality's price list becomes
             171      effective, the municipality shall:
             172          (i) notify the following of the change:
             173          (A) all subscribers to the services for which the price list is being changed; and
             174          (B) any other persons requesting notification of any changes to the municipality's price
             175      list; and
             176          (ii) (A) publish notice in a newspaper of general circulation in the municipality; and
             177          (B) publish notice in accordance with Section 45-1-101 .
             178          (d) In accordance with Subsection (6)(c)(ii)(A), if there is no newspaper of general
             179      circulation in the municipality, the municipality shall publish the notice required by this
             180      Subsection (6) in a newspaper of general circulation that is nearest the municipality.
             181          (e) A municipality may not offer a cable television service or a public
             182      telecommunications service except in accordance with the prices, terms, and conditions set


             183      forth in the municipality's price list.
             184          (7) A municipality may not offer to provide or provide cable television services or
             185      public telecommunications services to a subscriber that does not reside within the geographic
             186      boundaries of the municipality.
             187          (8) (a) A municipality shall keep accurate books and records of the municipality's:
             188          (i) cable television services; and
             189          (ii) public telecommunications services.
             190          (b) The books and records required to be kept under Subsection (8)(a) are subject to
             191      legislative audit to verify the municipality's compliance with the requirements of this chapter
             192      including:
             193          (i) pricing;
             194          (ii) recordkeeping; and
             195          (iii) antidiscrimination.
             196          (9) A municipality may not receive distributions from the Universal Public
             197      Telecommunications Service Support Fund established in Section 54-8b-15 .
             198          Section 4. Section 10-18-303.5 is enacted to read:
             199          10-18-303.5. Rate is just and reasonable -- Rate may not vary.
             200          (1) If a municipality calculates and charges a rate in accordance with Section
             201      10-18-303 , the municipality shall:
             202          (a) charge a rate that is just and reasonable;
             203          (b) in accordance with Subsection (1)(a), consider in its rate calculation:
             204          (i) the cost of providing service to each category of customer;
             205          (ii) the economic impact of a charge on:
             206          (A) each category of customer; and
             207          (B) the state;
             208          (iii) consider methods to reduce wide periodic variation in demand of the service
             209      provided by the municipality; and
             210          (iv) consider methods to encourage municipal and customer conservation of resources
             211      and energy.
             212          (2) (a) A municipality may not charge, demand, collect, contract for, or receive a
             213      greater, less, or different compensation for a cable television service or public


             214      telecommunication service than the rate calculated and charged in accordance with this section
             215      and Section 10-18-303 .
             216          (b) A municipality may not charge or collect compensation for cable television service
             217      or public telecommunication service from a person who does not receive the service.




Legislative Review Note
    as of 1-2-13 4:13 PM


Office of Legislative Research and General Counsel


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