ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2579: video service; certificates of authority |
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PRIME SPONSOR: Representative Norgaard, LD 18 BILL STATUS: House Engrossed
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Relating to certificates of authority for
video service providers.
Provisions
1. Adds Chapter 37 (Video Service) to Title 44 (Trade and Commerce) statutes.
2. Asserts the statewide concern for the regulation and use of VS and states the VSPs are not subject to further regulation. (Sec. 2)
Taxes and Fees
3. Stipulates that a political subdivision may require a telecommunications corporation to pay the reasonable cost associated with the repair of a public highway resulting from construction and maintenance of a telecommunication facility.
a. Except a political subdivision must:
i. Pay the excess costs, if the political subdivision requires repairs that are above the cost to restore a public highway to its previous condition before the damage; and,
ii. Reimburse the telecommunication corporation in full for excess costs incurred within two months after delivering an invoice itemizing the expenditures.
iii. Requires arbitration for disputed excess costs.
iv. Applies to all franchises, licenses and permits issued to a telecommunications corporation by a political subdivision. (Sec. 1)
4. Prohibits a local government from levying a tax, rent, fee or charge on a VSP for the use of highways to provide VS. (Sec. 2)
5. Outlines a local government's capacity to charge a license fee to the VSP based on the gross revenue the VSP receives from local subscribers. (Sec. 2)
6. Prescribes a local government capacity to conduct an audit of a VSP once every three years to ensure payment of license fees. (Sec. 2)
State Preemption (Sec. 2)
7. Specifies that the regulation and use of a VSP are of statewide concern and not subject to further regulation by a county, city, town or other political subdivision of this state.
8. States that regulation of a VSP is to promote the following:
a. Competitive video, telecommunications and information services throughout the state;
b. Uniform regulation of competitive VS throughout the state; and
c. Minimal interference regarding construction and operations across local government boundaries for a VSP to use highways to deliver video, telecommunications, information and other services.
9. Asserts the limits of a local government, beginning on January 1, 2020, to regulate or enforce all of the following:
a. The application of cable television system statutes to a VSP;
b. Any local law and local government agreements that do the following:
i. Require a person to obtain a license or permit to provide or construct a VS network using highways, unless the person is an HCO.
ii. Regulate VS or the construction of a VS network.
c. Impose an infrastructure, facility, or equipment requirement on a VSP;
d. Require a VSP to obtain a license or authorization from a local government to provide telecommunication, information, interactive computer or other services using its VS network within the boundaries of the local government; and
e. Require a VSP to place its facilities on ducts, conduits, or poles owned or leased by the local government. (Sec. 2)
Application (Sec. 2)
10. Stipulates the provisions do not:
a. Authorize the SOS to regulate or exercise oversight of VSP except as outlined in the bill;
b. Prevent a telecommunications provider from exercising any rights or authority as a public utility under federal or state law;
c. Affect any authority of a local government or district to determine the rates or terms of use of utility poles on highways; and
d. Grant the Arizona Corporation Commission (ACC) jurisdiction over VS, VSP or VS networks regarding rates and terms of utility pole attachments under federal law. (Sec. 2)
11. Authorizes the SOS to have exclusive authority to issue a Certificate to a VSP to construct and operate a VS network in any service area in Arizona beginning on January 1, 2020. (Sec. 2)
12. Requires the SOS to establish administrative procedures for the VS statute. (Sec. 2)
13. Except as provided by the bill, an entity may not act as a VSP to construct or operate a VS network within the boundaries of a local government without possessing a Certificate. (Sec. 2)
Video Service Fee Fund (Sec. 2)
14. Establishes the Video Service Fee Fund which is subject to the following:
a. Administration by the SOS including deposits into the Fund;
b. Any monies from the Fund are used only for administration and enforcement purposes;
c. Excess monies in the Fund do not revert to the GF; and
d. Monies in the Fund are exempt from lapsing and are continuously appropriated.
15. Allows the SOS to adopt rules regarding the amount or rate of fees and modifications or exemptions of fees.
16. Prohibits a VSP from passing the cost of fees onto subscribers of VS and requires a VSP to submit to the SOS an attestation of this provision.
17. States that the failure of a VSP to comply with provisions in the bill may result in the suspension or revocation of the VSP's Certificate by the SOS.
Incumbent Cable Operator (Sec. 2)
18. Allows an ICO, beginning January 1, 2020, to do the following:
a. Continue to operate within a service area as defined in statute; and
b. Terminate the ICO's local license for a service area by applying for and receiving a Certificate.
19. Requires an ICO, beginning on July 1, 2020, to apply for a Certificate in the same manner as a VSP.
20. Asserts that if an ICO obtains a Certificate, the following apply:
a. The ICO's local license is terminated on the date the Certificate is issued;
b. No later than five days after issuance of the Certificate, the ICO must file a statement notifying the local government of the Certificate and the termination of the local license;
c. The ICO must operate within the confines of the local license, unless an application for a Certificate to expand the service area falls within the boundaries of a local government has been submitted.
Incumbent cable Operator Procedure Under a Local License (Sec. 2)
21. Allows a cable operator to continue to use a local license until its expiration if the Operator decides not to apply for a Certificate.
a. The cable operator then becomes an HCO under the aforementioned provision.
22. Prohibits a local government from renewing or extending the local license.
23. Requires compliance from the local government and the HCO regarding local licenses as outlined.
24. Requires the HCO to apply for and obtain a Certificate once a local license expires.
25. Stipulates that if an HCO is issued a Certificate with a service area that matches the local license, the Certificate does not become effective until the local license expires.
26. Requires the HCO that decides to apply for a Certificate to do so one month before the local license expires.
Certificate of Authority (Sec. 2)
27. Outlines requirements to obtain a Certificate.
28. Requires an application for a Certificate to include the following:
a. The name of each local government in which the applicant intends to provide VS;
b. The applicant's primary business address including the name of the principal executive officers or the general partners and any changes to the aforementioned information;
c. The term of the Certificate which may not exceed 8 years; and
d. Certifications that the applicant agrees to follow all applicable federal, state and local laws.
29. States that if the SOS determines an application to be incomplete the SOS must provide written notice within 15 days of submission explaining the deficiency and specify the information needed.
30. Outlines requirements for a revised application.
31. Asserts that the copy of the application submitted to the local government is for informational purposes only and does not permit the local government to do any of the following:
a. Charge a fee more than $20 for filing the copy;
b. Vote or take other official action regarding the application; and
c. Require the applicant to obtain approval from the local government.
Authority Granted by a Certificate of Authority (Sec. 2)
32. Requires the SOS to issue a Certificate no later than 20 days after the submission of an application.
33. Asserts that the Certificate issued by the SOS is a nonexclusive state-issued license and authorizes the applicant to do the following:
a. Provide VS in each service area designated in the application;
b. Construct and operate a VS network using the highways in the service area in compliance with state and local laws; and
c. Maintain the VS network installed on the highways in the service area.
34. Prohibits the SOS from limiting a Certificate by implementing the following:
a. Impose an infrastructure, facility, or equipment requirement; and
b. Require a fee not authorized in the bill.
Amendment of a Certificate of Authority (Sec. 2)
35. Permits an amendment to a Certificate to add one or more new service areas by filing with the SOS and paying the applicable fees.
36. Requires the applicant to provide a copy to each local government named in the amendment within five days of submission.
Termination of Service (Sec. 2)
37. Allows a VSP to terminate VS in service areas authorized under the Certificate if the VSP files a written notice with the SOS and pays the associated fees.
38. Stipulates that the termination of service may begin once the written notice has been filed with the SOS.
39. Requires the VSP to file the notice of termination of service with each local government affected.
Transfer of A Certificate of Authority (Sec. 2)
40. Allows a Certificate to be transferred to any person through any type of transaction and does not function as an instrument to secure indebtedness.
41. Requires the Certificate holder to submit a written notice to the SOS of the transfer within 10 days after completion.
42. Requires the holder to provide a copy to each local government affected within five days of completion.
Miscellaneous
43. Requires a local government to notify a VSP if the boundaries of a local government change due to annexation or de-annexation. (Sec. 2)
44. Requires the Certificate holder to file an extension with the SOS at least one month before expiration for a period not to exceed 10 years and file a notice with each local government affected. (Sec. 2)
45. Requires a Certificate holder to provide VS to at least one subscriber in each authorized service area within 24 months or risk revocation of the Certificate by the SOS. (Sec. 2)
46. Outlines VSP semiannual reporting requirements to a local government that is receiving VS. (Sec. 2)
47. Lists the requirements for a VSP to be compliant with federal law. (Sec. 2)
48. Specifies a VSP's requirements to a local government regarding construction, installation and repairs of highways. or repairing facilities in, on, under, or over any highway in the affected service area. (Sec. 2)
49. Outlines television channel requirements a local government may impose on a VSP. (Sec. 2)
50. Prohibits a city or town from acquiring an ownership interest in a VS network. (Sec. 2)
51. Outlines the complaint process and the statute of limitations for a local government and a VSP. (Sec. 2)
52. Contains a legislative intent clause. (Sec. 3)
53. Specifies a general effective date of January 1, 2020. (Sec. 4)
54. Defines pertinent terms. (Sec. 1,2)
Current Law and Additional Information
Laws 2017, Chapter 124, established a permit process for a wireless provider to install, maintain or replace a wireless facility, utility pole or monopole inside or outside a right-of-way as outlined. Details the following: approval process; fee and height limitations; requirements to collocate and consolidate an application; and timeframe for project completion. The new law preserves existing agreements and details a termination process. Statute outlines exemptions that include private easements and certain authorities within 10 miles of the Mexican border as noted.
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Fifty-third Legislature HB 2579
Second Regular Session Version 3: House Engrossed
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