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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
cable licensing; video service providers
Purpose
Requires counties to adopt a standard form of a uniform video service license agreement by the effective date of this legislation, rather than by July 1, 2019.
Background
Laws 2018, Chapter 331 established uniform local government regulation of VSPs. 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. VSP regulation defines local government as any city, charter city, town or county (A.R.S. § 9‑1401).
Currently, local governments must issue a uniform video service license beginning January 1, 2020 no later than 30 days after the application is received (A.R.S. §§ 9-1411 and 9-1415). 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).
All complaints alleging a violation of video service regulations against a VSP or a local government must be filed as a written demand with the Office of Administrative Hearings (OAH). OAH establishes, administers and collects fees as determined by the Director of OAH which are deposited into the Video Service Provider Complaint Fund (Fund) for the purposes of handling VSP-related complaints (A.R.S. § 9-1451).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Counties Regulations
1. Allows, beginning January 1, 2020, a county to impose on a VSP any requirement not directly related to the counties management of, development, use and occupancy of the highways rather than a county's management of the highways.
2. Requires counties to adopt a standard form of a uniform video service license agreement, application and affidavit for VSPs by the effective date of this legislation, rather than by July 1, 2019.
3. Requires counties to issue a license after an applicant files a completed application and affidavit within the county established time frame and no later than 45 days, instead of not later than 30 days.
4. Prohibits a county from levying additional charges on a VSP related to the use or occupancy of a highway, rather than the use of a highway only.
5. Allows a county to levy excise taxes on a VSP, rather than Transaction Privilege Taxes.
6. Removes a charter from the definition of local law in relation to counties.
Cities, Towns and Counties Regulations
7. Requires rules adopted by the OAH to apply uniformly to hearings involving local governments and counties.
8. Exempts, from complaint filing regulation, complaints made in a written demand regarding a violation of license fee obligations.
9. Removes the authorization for a uniform video service license holder to operate and maintain facilities installed in the highways in a service area under a local license.
OAH Regulations
10. Requires the Director of OAH to provide a copy of their annual report to the Secretary of State.
11. Requires OAH to provide a copy of a report, by December 1 for the prior fiscal year, relating to:
a) administrative law judge decisions rejected or modified by an agency;
b) motions filed to disqualify an administrative law judge; and
c) agency violations to the Secretary of State.
12. Requires OAH to receive complaints against a county and requires OAH to comply with the duties imposed on the office pursuant to the appropriate regulations when dealing with complaints involving local governments or counties.
13. Requires OAH to use the monies in the Fund to administer the enforcement of VSP regulation.
14. Requires OAH to adopt rules to administer hearings related to VSPs.
Miscellaneous
15. Removes counties from the definition of local government.
16. Transfers, from Title 9 relating to cities and towns to Title 11 relating to counties, county powers, responsibilities, duties and exemptions relating to VSPs.
17. Contains a legislative findings clause.
18. Makes technical and conforming changes.
19. Becomes effective on the general effective date.
House Action
COM 1/29/19 DP 9-0-0-0
3rd Read 2/14/19 60-0-0
Prepared by Senate Research
March 12, 2019
MG/AA/gs