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S.B. 190

This document includes Senate Committee Amendments incorporated into the bill on Mon, Feb 24, 2014 at 2:37 PM by lpoole. -->             


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Senate Committee Amendments 2-24-2014 lp/va
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UTILITY FEE LIMITATIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John L. Valentine

             5     
House Sponsor: James A. Dunnigan

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill amends the general operating limitations on a municipality that provides a
             10      cable television service or a public telecommunications service.
             11      Highlighted Provisions:
             12          This bill:
             12a           S. .    authorizes a municipality, in certain circumstances, to enact a per address utility
             12b      fee to cover costs related to the utility if the municipality has established a procedure for a
             12c      person who is economically indigent to opt out of the fee; and .S
             13          .    clarifies that any other means by which a municipality may not cross subsidize its
             14      cable television services or its public telecommunications services includes a fee.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             20a           S. 10-8-14, as last amended by Laws of Utah 2013, Chapter 242 .S
             21          10-18-303, as last amended by Laws of Utah 2009, Chapter 388
             22     

             23      Be it enacted by the Legislature of the state of Utah:
             23a      S. Section 1. Section 10-8-14 is amended to read: .S
             23b      10-8-14.   Water, sewer, gas, electricity, and public transportation -- Service beyond municipal limits.S


            
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     S.-- Retainage -- Notice of service and agreement -- Cable television and public telecommunications services.
             23d          (1) A municipality may:
             23e          (a) construct, maintain, and operate waterworks, sewer collection, sewer treatment systems, gas
             23f      works, electric light works, telecommunications lines, cable television lines, or public transportation systems;
             23g          (b) authorize the construction, maintenance and operation of the works or systems listed in
             23h      Subsection (1)(a) by others;
             23i          (c) purchase or lease the works or systems listed in Subsection (1)(a) from any person or
             23j      corporation; and
             23k          (d) sell and deliver the surplus product or service capacity of any works or system listed in
             23l      Subsection (1)(a), not required by the municipality or the municipality's inhabitants, to others beyond the
             23m      limits of the municipality, except the sale and delivery of:
             23n          (i) retail electricity beyond the municipal boundary is governed by Subsections (3) through (8); and
             23o          (ii) cable television services or public telecommunications services is governed by Subsection (11).
             23p          (2) If any payment on a contract with a private person, firm, or corporation to construct waterworks,
             23q      sewer collection, sewer treatment systems, gas works, electric works, telecommunications lines, cable
             23r      television lines, or public transportation systems is retained or withheld, it shall be retained or withheld and
             23s      released as provided in Section 13-8-5.
             23t          (3) (a) Except as provided in Subsection (3)(b), (5), or (9), a municipality may not sell or deliver the
             23u      electricity produced or distributed by its electric works constructed, maintained, or operated in accordance
             23v      with Subsection (1) to a retail customer located beyond its municipal boundary.
             23w          (b) A municipality that provides retail electric service to a customer beyond its municipal boundary
             23x      on or before June 15, 2013, may continue to serve that customer if:
             23y          (i) on or before December 15, 2013, the municipality provides the electrical corporation, as defined
             23z      in Section 54-2-1, that is obligated by its certificate of public convenience and necessity to serve the
             23aa      customer with an accurate and complete verified written notice described in Subsection (3)(c) that identifies
             23ab      each customer served by the municipality beyond its municipal boundary;
             23ac          (ii) no later than June 15, 2014, the municipality enters into a written filing agreement for the
             23ad      provision of electric service with the electrical corporation; and
             23ae          (iii) the Public Service Commission approves the written filing agreement in accordance with
             23af      Section 54-4-40.
             23ag          (c) The municipality shall include in the written notice required in Subsection (3)(b)(i) for each
             23ah      customer:
             23ai          (i) the customer's meter number;
             23aj          (ii) the location of the customer's meter by street address, global positioning system coordinates,
             23ak      metes and bounds description, or other similar method of meter location;
             23al          (iii) the customer's class of service; and
             23am          (iv) a representation that the customer was receiving service from the municipality on or before June
             23an      15, 2013..S


            
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23ao
     S.(4) The written filing agreement entered into in accordance with Subsection (3)(b)(ii) shall require
             23ap      the following:
             23aq          (a) The municipality shall provide electric service to a customer identified in accordance with
             23ar      Subsection (3)(b)(i) unless the municipality and the electrical corporation subsequently agree in writing that
             23as      the electrical corporation will provide electric service to the customer.
             23at          (b) If a customer who is located outside the municipal boundary and who is not identified in
             23au      accordance with Subsection (3)(b)(i) requests service from the municipality after June 15, 2013, the
             23av      municipality may not provide that customer electric service unless the municipality submits a request to and
             23aw      enters into a written agreement with the electric corporation in accordance with Subsection (5).
             23ax          (5) (a) A municipality may submit to the electrical corporation a request to provide electric service
             23ay      to an electric customer described in Subsection (4)(b).
             23az          (b) If a municipality submits a request, the electrical corporation shall respond to the request within
             23ba      60 days.
             23bb          (c) If the electrical corporation agrees to allow the municipality to provide electric service to the
             23bc      customer:
             23bd          (i) the electrical corporation and the municipality shall enter into a written agreement;
             23be          (ii) the municipality shall agree in the written agreement to subsequently transfer service to the
             23bf      customer described in Subsection (4)(b) if the electrical corporation notifies, in writing, the municipality that
             23bg      the electrical corporation has installed a facility capable of providing electric service to the customer; and
             23bh          (iii) the municipality may provide the service if the Public Service Commission approves the
             23bi      agreement in accordance with Section 54-4-40.
             23bj          (d) The municipality or the electrical corporation may terminate the agreement for the provision of
             23bk      electric service if the Public Service Commission imposes a condition authorized in Section 54-4-40 that is a
             23bl      material change to the agreement.
             23bm          (6) If the municipality and electrical corporation make a transfer described in Subsection (5)(c)(ii):
             23bn          (a) (i) the municipality shall transfer the electric service customer to the electrical corporation; and
             23bo          (ii) the electrical corporation shall provide electric service to the customer; and
             23bp          (b) the municipality shall transfer a facility in accordance with and for the value as provided in
             23bq      Section 10-2-421.
             23br          (7) (a) In accordance with Subsection (7)(b), the municipality shall establish a reasonable
             23bs      mechanism for resolving potential future complaints by an electric customer located outside its municipal
             23bt      boundary.
             23bu          (b) The mechanism shall require:
             23bv          (i) that the rates and conditions of service for a customer outside the municipality's boundary are at
             23bw      least as favorable as the rates and conditions of service for a similarly situated customer within the
             23bx      municipality's boundary; and
             23by          (ii) if the municipality provides a general rebate, refund, or other payment to a customer located
             23bz      within the municipality's boundary, that the municipality also provide the same general rebate, refund, or.S


            
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Senate Committee Amendments 2-24-2014 lp/va
23ca
     S.other payment to a similarly situated customer located outside the municipality's boundary.
             23cb          (8) The municipality is relieved of any obligation to transfer a customer described in Subsection
             23cc      (4)(b) or facility used to serve the customer in accordance with Subsection (5)(c)(ii) if the municipality
             23cd      annexes the property on which the customer is being served.
             23ce          (9) (a) A municipality may provide electric service outside of its municipal boundary to a facility
             23cf      that is solely owned and operated by the municipality for municipal service.
             23cg          (b) A municipality's provision of electric service to a facility that is solely owned and operated by
             23ch      the municipality does not expand the municipality's electric service area.
             23ci          (10) Nothing in this section expands or diminishes the ability of a municipality to enter into a
             23cj      wholesale electrical sales contract with another municipality that serves electric customers to sell and deliver
             23ck      wholesale electricity to the other municipality.
             23cl          (11) S. [ A ] Except as provided in Subsection (12), a .S municipality's actions under this
             23cl1      section related to works or systems involving public
             23cm      telecommunications services or cable television services are subject to the requirements of Chapter 18,
             23cn      Municipal Cable Television and Public Telecommunications Services Act.
             23co      S. (12) A municipality that constructs telecommunication lines and related facilities, and
             23cp      operates them as a communications utility that is open to providers, may enact a per address
             23cq      utility fee to cover costs related to the utility if the municipality has established a procedure for
             23cr      a person who is economically indigent to opt out of the fee. .S
             24          Section S. [ 1 ] 2 .S . Section 10-18-303 is amended to read:
             25           10-18-303. General operating limitations.
             26          A municipality that provides a cable television service or a public telecommunications
             27      service under this chapter is subject to the operating limitations of this section.



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             28
         (1) A municipality that provides a cable television service shall comply with:
             29          (a) the Cable Communications Policy Act of 1984, 47 U.S.C. 521, et seq.; and
             30          (b) the regulations issued by the Federal Communications Commission under the Cable
             31      Communications Policy Act of 1984, 47 U.S.C. 521, et seq.
             32          (2) A municipality that provides a public telecommunications service shall comply
             33      with:
             34          (a) the Telecommunications Act of 1996, Pub. L. 104-104;
             35          (b) the regulations issued by the Federal Communications Commission under the
             36      Telecommunications Act of 1996, Pub. L. 104-104;
             37          (c) Section 54-8b-2.2 relating to:
             38          (i) the interconnection of essential facilities; and
             39          (ii) the purchase and sale of essential services; and
             40          (d) the rules made by the Public Service Commission of Utah under Section 54-8b-2.2 .
             41          (3) (a) A municipality may not cross subsidize its cable television services or its public
             42      telecommunications services with:
             43          [(a)] (i) tax dollars;
             44          [(b)] (ii) income from other municipal or utility services;
             45          [(c)] (iii) below-market rate loans from the municipality; or
             46          [(d)] (iv) except as provided in Subsection (3)(b), any other means[.], including a fee
             47      collected by the municipality or a private provider on behalf of the municipality.
             48          (b) Subsection (3)(a)(iv) does not apply to a fee collected to pay the debt service on
             49      bonded indebtedness incurred before January 1, 2014.
             50          (4) (a) A municipality may not make or grant any undue or unreasonable preference or
             51      advantage to itself or to any private provider of:
             52          (i) cable television services; or
             53          (ii) public telecommunications services.
             54          (b) A municipality shall apply without discrimination as to itself and to any private
             55      provider the municipality's ordinances, rules, and policies, including those relating to:
             56          (i) obligation to serve;
             57          (ii) access to public rights of way;
             58          (iii) permitting;



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             59
         (iv) performance bonding;
             60          (v) reporting; and
             61          (vi) quality of service.
             62          (c) Subsections (4)(a) and (b) do not supersede the exception for a rural telephone
             63      company in Section 251 of the Telecommunications Act of 1996, Pub. L. 104-104.
             64          (5) In calculating the rates charged by a municipality for a cable television service or a
             65      public telecommunications service, the municipality:
             66          (a) shall include within its rates an amount equal to all taxes, fees, and other
             67      assessments that would be applicable to a similarly situated private provider of the same
             68      services, including:
             69          (i) federal, state, and local taxes;
             70          (ii) franchise fees;
             71          (iii) permit fees;
             72          (iv) pole attachment fees; and
             73          (v) fees similar to those described in Subsections (5)(a)(i) through (iv); and
             74          (b) may not price any cable television service or public telecommunications service at a
             75      level that is less than the sum of:
             76          (i) the actual direct costs of providing the service;
             77          (ii) the actual indirect costs of providing the service; and
             78          (iii) the amount determined under Subsection (5)(a).
             79          (6) (a) A municipality that provides cable television services or public
             80      telecommunications services shall establish and maintain a comprehensive price list of all cable
             81      television services or public telecommunications services offered by the municipality.
             82          (b) The price list required by Subsection (6)(a) shall:
             83          (i) include all terms and conditions relating to the municipality providing each cable
             84      television service or public telecommunications service offered by the municipality;
             85          (ii) (A) be published in a newspaper having general circulation in the municipality; and
             86          (B) be published in accordance with Section 45-1-101 ; and
             87          (iii) be available for inspection:
             88          (A) at a designated office of the municipality; and
             89          (B) during normal business hours.



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             90
         (c) At least five days before the date a change to a municipality's price list becomes
             91      effective, the municipality shall:
             92          (i) notify the following of the change:
             93          (A) all subscribers to the services for which the price list is being changed; and
             94          (B) any other persons requesting notification of any changes to the municipality's price
             95      list; and
             96          (ii) (A) publish notice in a newspaper of general circulation in the municipality; and
             97          (B) publish notice in accordance with Section 45-1-101 .
             98          (d) In accordance with Subsection (6)(c)(ii)(A), if there is no newspaper of general
             99      circulation in the municipality, the municipality shall publish the notice required by this
             100      Subsection (6) in a newspaper of general circulation that is nearest the municipality.
             101          (e) A municipality may not offer a cable television service or a public
             102      telecommunications service except in accordance with the prices, terms, and conditions set
             103      forth in the municipality's price list.
             104          (7) A municipality may not offer to provide or provide cable television services or
             105      public telecommunications services to a subscriber that does not reside within the geographic
             106      boundaries of the municipality.
             107          (8) (a) A municipality shall keep accurate books and records of the municipality's:
             108          (i) cable television services; and
             109          (ii) public telecommunications services.
             110          (b) The books and records required to be kept under Subsection (8)(a) are subject to
             111      legislative audit to verify the municipality's compliance with the requirements of this chapter
             112      including:
             113          (i) pricing;
             114          (ii) recordkeeping; and
             115          (iii) antidiscrimination.
             116          (9) A municipality may not receive distributions from the Universal Public
             117      Telecommunications Service Support Fund established in Section 54-8b-15 .



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Legislative Review Note
    as of 2-12-14 9:14 AM


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