ARIZONA
HOUSE OF REPRESENTATIVES
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SB 1140: S/E certificates of authority; video service |
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PRIME SPONSOR: Senator Griffin, LD 14 BILL STATUS: Caucus & COW |
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Relating to certificates of authority
for video service providers.
Provisions
1. Adds Chapter 13 (Video Service) to Title 9 (Cities and Towns) statutes.
Taxes and Fees (Sec. 1)
2. Prohibits a local government from levying a tax, rent, fee or charge on a VSP for the use of highways to provide VS.
3. Outlines a local government's capacity to charge a license fee and transaction privilege tax, which may not exceed 5%, to the VSP based on the gross revenue the VSP receives from local subscribers.
4. Requires a local government to adopt a local law that imposes a license fee equally and uniformly on a VSP and a HCO.
5. Authorizes a local government to conduct an audit of a VSP once every three years to ensure payment of license fees.
6. Prohibits a VSP from bundling services as a means of evading licensing fees.
Uniform Regulation and Licensing (Sec. 1)
7. Specifies that the licensing, regulation and use of a VSP are of statewide concern and not subject to further regulation by a local government.
8. States that regulation of a VSP, including application to local licenses of an ICO, is reasonable and necessary to promote the following:
a. Competitive video, telecommunications and information services statewide;
b. More uniform regulation of competitive VS statewide;
c. Streamlined licensing by local governments and more uniform terms and conditions for a VSP that use highways to provide VS and other services over a VSN;
d. Continued management by local governments regarding continuous highway maintenance and use, including license fees on subscriber gross revenue;
e. Continued levying of license fees by local governments on subscriber service revenues derived from operating a VSN to provide VS; and
f. Specifies that the provisions comply with federal regulations.
9. Asserts the limits of a local government, beginning on January 1, 2020, to regulate the following:
a. The application of cable television system statutes to a VSP;
b. Any local law or government agreements that:
i. Require a person, except an HCO, to obtain a license or permit to construct or maintain a VSN using highways; and
ii. Regulate VS or the construction of a VSN.
c. Impose an infrastructure, facility, or equipment requirement;
d. Require a license or authorization from a local government to provide telecommunication, information, interactive computer or other services using its VSN in the service area; and
e. Require a VSP to pay to locate or install its equipment on poles or ducts or conduits owned by the local government.
Limited Application (Sec. 1)
10. Stipulates that the provisions do not:
a. Prevent a telecommunications provider from exercising any rights or authority granted by federal or state law;
b. Affect any authority of a local government or agricultural improvement district or special taxing district; and
c. Grant the Arizona Corporation Commission (ACC) jurisdiction over VS, VSP or VSN regarding rates and terms of utility pole attachments under federal law.
Uniform Video Service License (Sec. 1)
11. Requires a person to file a UVSL application and a signed affidavit by the principal executive officers or general partners of the applicant with the clerk of a local government.
12. Requires an application and affidavit to include the service area in which the applicant intends to provide VS.
13. Outlines the required VSP identifying information.
14. States the term of the UVSL may not exceed 10 years.
15. Requires the local government to provide written notice of any application deficiencies.
16. Prohibits a local government from doing any of the following:
a. Charge a fee for filing or processing any application, affidavit, notice or other document;
b. Vote or take other official action regarding the application;
c. Require the applicant to obtain approval from the local government; and
d. Require an applicant to provide in-kind services or goods as a condition of operating in a service area under a UVSL.
Uniform Video Service License Agreements (Sec. 1)
17. Grants exclusive authority to a local government to issue a UVSL to a person to provide VS and construct and operate a VSN in any service area beginning on January 1, 2020.
18. Requires each local government to adopt a standard form for a UVSL application and a UVSL agreement by July 1, 2019.
19. Outlines the provisions required in a UVSL agreement.
20. Prohibits a person from acting as a VSP and constructing or operating a VSN within the boundaries of a local government without first having been issued a UVSL.
Authority Granted by a Uniform Video Service License (Sec. 1)
21. Requires a local government to issue a UVSL no later than 30 days after the submission of a completed application.
22. States that if the local government does not notify the applicant regarding the completeness of the UVSL agreement or issue the agreement within 30 days, the agreement is considered complete.
23. Asserts that the UVSL issued by a local government to an applicant, including an ICO, is a nonexclusive license granting the holder of the UVSL the authority to operate in the designated service area.
24. Prohibits a local government from limiting a UVSL by imposing any additional requirements or unauthorized fees.
Amendment of a Uniform Video Service License (Sec. 1)
25. Permits a UVSL to add one or more new service areas by filing an application for an amendment with the clerk of a local government to add each new service area.
26. States that an amendment application for a UVSL is subject to the same procedures, requirements, limitations, and time periods as an application for issuance of a UVSL.
Termination of Service (Sec. 1)
27. Allows a VSP to terminate VS in service areas authorized under the UVSL if the VSP files a written notice with the clerk of a local government.
28. States that the termination of service may begin once the written notice has been filed with a local government.
29. Requires the holder of the UVSL to comply with applicable federal law and give at least a 90-day notice to all affected subscribers and local governments before termination of VS in all service areas.
Transfer of a Uniform Video Service License (Sec. 1)
30. Allows a UVSL to be transferred to any person through any type of transaction and does not function as an instrument to secure indebtedness.
31. Requires the UVSL holder to submit a written notice of the transfer of the UVSL to the local government.
32. States that the transferee becomes the holder of the UVSL once notice of the transfer has been filed with the local government.
Extension of a Uniform Video Service License (Sec. 1)
33. Requires the UVSL holder to file an extension with the clerk of a local government at least one month before expiration of the UVSL for a period not to exceed 10 years.
34. Specifies that a UVSL extension becomes effective after the date of the then current term.
35. States that transferring, amending or modifying a UVSL does not extend the term of the UVSL.
Incumbent Cable Operator (Sec. 1)
36. Allows an ICO, beginning January 1, 2020, to do either of the following:
a. Continue to operate within a service area as defined in the local license; or
b. Terminate the ICO's local license for a service area by applying for and receiving a UVSL.
37. Requires an ICO, by July 1, 2020, to apply for a UVSL in the same manner as a VSP.
38. Asserts that if an ICO obtains a UVSL, the following apply:
a. The ICO's local license is terminated on the date the UVSL is issued; and
b. The ICO must operate within the confines of the local license, unless the ICO submits an application for a UVSL to expand the service area.
Incumbent Cable Operator; Procedure Under a Local License (Sec. 1)
39. Allows an ICO to continue to use a local license until its expiration, if the ICO decides not to apply for a UVSL and the ICO then becomes an HCO under the aforementioned provision.
40. Prohibits a local government from renewing or extending the local license.
41. Requires the HCO to apply for and obtain a UVSL once a local license expires.
42. Stipulates that if an HCO is issued a UVSL within a service area that matches the local license, the UVSL does not become effective until the local license expires.
43. States that if the HCO decides to apply for a UVSL, the HCO must do so one month before the local license expires.
Management of Highways by Local Governments (Sec. 1)
44. Specifies a VSP's requirements to a local government regarding construction, installation and repairing of highways or facilities in, on, under, or over any highway in the affected service area.
45. Allows a VSP to begin emergency repairs in, on, under or over any highway without prior approval from a local government if the VSP promptly notifies the local government.
Office of Administrative Hearings
46. Requires the OAH to receive complaints against a local government or a VSP and comply with the duties imposed on the OAH by VS statutes. (Sec. 2)
47. Establishes the VSP Complaint Fund which is subject to the following:
a. Administration by the OAH including deposits into the Fund;
b. Monies in the fund are continuously appropriated; and
c. Any monies from the Fund are used for administration and enforcement purposes. (Sec. 1)
48. Outlines the complaint process and the statute of limitations for a local government and a VSP. (Sec. 1)
Miscellaneous
49. Requires a local government to notify each VSP in a timely manner if the boundaries of a local government change. (Sec. 1)
50. Specifies the complaint process for a VS subscriber to the following: the local government; the Attorney General; the Federal Communications Commission or other lawful authorities. (Sec. 1)
51. Requires a UVSL holder to provide VS to at least one subscriber in each authorized service area within 24 months or risk revocation of the UVSL in the affected areas. (Sec. 1)
52. Outlines VSP semiannual reporting requirements to a local government that is receiving VS and stipulates all information as confidential proprietary information of the VSP and not considered as a public record. (Sec. 1)
53. Lists the requirements for a VSP to be compliant with standards in federal law. (Sec. 1)
54. Outlines television channel requirements a local government may impose on a VSP. (Sec. 1)
55. Allows a city or town to acquire an ownership interest in a VSN if it is acquired at not less than fair market value. (Sec. 1)
56. Contains legislative findings. (Sec. 3)
57. Defines pertinent terms. (Sec. 1)
58. MAKES CLARIFYING AND CONFORMING CHANGES. (Approp)
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 SB 1140
Second Regular Session Version 2: Caucus & COW
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