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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
video service providers; license
Purpose
Makes changes to video service provider (VSP) regulations.
Background
In 2018, the legislature established uniform local government regulation of VSPs (Laws 2018, Chapter 331). VSP means any person that: 1) provides or offers to provide video service over a video service network to subscribers in Arizona; 2) is an incumbent cable operator that elected to terminate its local license and a multichannel video programming distributor; and 3) is not a holdover cable operator (A.R.S. § 9-1401).
Current statue requires local governments to issue a uniform video service license (license) beginning January 1, 2020, prohibits local government regulation beyond enumerated powers and specifies license agreement provisions (A.R.S. §§ 9-1402 and 9-1411). Local governments may require the payment of license fees and transaction privilege tax but are prohibited from levying additional taxes, rent, fees or charges on VSPs (A.R.S. § 9-1442). Local governments may audit a VSP not more than once every three years to ensure payment of license fees. A complaint regarding a violation of license fee obligations may not be made until a written demand is submitted to the Office of Administrative Hearings. A complaint must be filed within two years after the written demand is made but not sooner than four months after the written demand (A.R.S. § 9-1445).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a local government, in response to an audit, to assess a VSP additional license fees due at any time within four years after the date on which the fees were originally required to be paid.
2. Increases, from two to three years, the time frame a complaint for a violation of license fee obligations must be filed after a written demand is made and changes, from four to six months, the earliest filing date a complaint for a violation of license fee obligations can be made after a written demand.
3. Increases, from 30 to 45 days, the time period in which a local government must issue a license after an applicant files a completed application and affidavit.
4. Specifies that a local government must issue a license within the time frame provided in city and town licensing time frame regulations.
5. Adds, to the uniform video service license agreement, a requirement that the VSP agrees to comply with all generally applicable, nondiscriminatory local laws that relate to letters of credit.
6. Removes the prohibition on local governments to audit the business books and records of a VSP during any period that ends more than three years before the date that the notice of audit is received.
7. Makes technical and conforming changes.
8. Becomes effective on the general effective date.
Prepared by Senate Research
February 19, 2019
MG/AA/gs