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Public Act 91-0648
SB1141 Enrolled SRS91S0045PMcb
AN ACT to amend the Illinois Municipal Code by changing
Section 11-42-11.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Section 11-42-11 as follows:
(65 ILCS 5/11-42-11) (from Ch. 24, par. 11-42-11)
Sec. 11-42-11. Community antenna television systems;
satellite transmitted television programming.
(a) The corporate authorities of each municipality may
license, franchise and tax the business of operating a
community antenna television system as hereinafter defined.
In municipalities with less than 2,000,000 inhabitants, the
corporate authorities may, under the limited circumstances
set forth in this Section, own (or lease as lessee) and
operate a community antenna television system; provided that
a municipality may not acquire, construct, own, or operate a
community antenna television system for the use or benefit of
private consumers or users, and may not charge a fee for that
consumption or use, unless the proposition to acquire,
construct, own, or operate a cable antenna television system
has been submitted to and approved by the electors of the
municipality in accordance with subsection (f). Before
acquiring, constructing, or commencing operation of a
community antenna television system, the municipality shall
comply with the following:
(1) Give written notice to the owner or operator of
any other community antenna television system franchised
to serve all or any portion of the territorial area to be
served by the municipality's community antenna television
system, specifying the date, time, and place at which the
municipality shall conduct public hearings to consider
and determine whether the municipality should acquire,
construct, or commence operation of a community antenna
television system. The public hearings shall be
conducted at least 14 days after this notice is given.
(2) Publish a notice of the hearing in 2 or more
newspapers published in the county, city, village,
incorporated town, or town, as the case may be. If there
is no such newspaper, then notice shall be published in
any 2 or more newspapers published in the county and
having a general circulation throughout the community.
The public hearings shall be conducted at least 14 days
after this notice is given.
(3) Conduct a public hearing to determine the means
by which construction, maintenance, and operation of the
system will be financed, including whether the use of tax
revenues or other fees will be required.
(b) The words "community antenna television system"
shall mean any facility which is constructed in whole or in
part in, on, under or over any highway or other public place
and which is operated to perform for hire the service of
receiving and amplifying the signals broadcast by one or more
television stations and redistributing such signals by wire,
cable or other means to members of the public who subscribe
to such service; except that such definition shall not
include (i) any system which serves fewer than fifty
subscribers, or (ii) any system which serves only the
residents of one or more apartment dwellings under common
ownership, control or management, and commercial
establishments located on the premises of such dwellings.
(c) The authority hereby granted does not include
authority to license, franchise or tax telephone companies
subject to jurisdiction of the Illinois Commerce Commission
or the Federal Communications Commission in connection with
the furnishing of circuits, wires, cables, and other
facilities to the operator of a community antenna television
system.
The corporate authorities of each municipality may, in
the course of franchising such community antenna television
system, grant to such franchisee the authority and the right
and permission to use all public streets, rights of way,
alleys, ways for public service facilities, parks,
playgrounds, school grounds, or other public grounds, in
which such municipality may have an interest, for the
construction, installation, operation, maintenance,
alteration, addition, extension or improvement of a community
antenna television system.
Any charge imposed by a community antenna television
system franchised pursuant to this Section for the raising or
removal of cables or lines to permit passage on, to or from a
street shall not exceed the reasonable costs of work
reasonably necessary to safely permit such passage. Pursuant
to subsections (h) and (i) of Section 6 of Article VII of the
Constitution of the State of Illinois, the General Assembly
declares the regulation of charges which may be imposed by
community antenna television systems for the raising or
removal of cables or lines to permit passage on, to or from
streets is a power or function to be exercised exclusively by
the State and not to be exercised or performed concurrently
with the State by any unit of local government, including any
home rule unit.
The municipality may, upon written request by the
franchisee of a community antenna television system, exercise
its right of eminent domain solely for the purpose of
granting an easement right no greater than 8 feet in width,
extending no greater than 8 feet from any lot line for the
purpose of extending cable across any parcel of property in
the manner provided by the law of eminent domain, provided,
however, such franchisee deposits with the municipality
sufficient security to pay all costs incurred by the
municipality in the exercise of its right of eminent domain.
(d) The General Assembly finds and declares that
satellite-transmitted television programming should be
available to those who desire to subscribe to such
programming and that decoding devices should be obtainable at
reasonable prices by those who are unable to obtain
satellite-transmitted television programming through duly
franchised community antenna television systems.
In any instance in which a person is unable to obtain
satellite-transmitted television programming through a duly
franchised community antenna television system either because
the municipality and county in which such person resides has
not granted a franchise to operate and maintain a community
antenna television system, or because the duly franchised
community antenna television system operator does not make
cable television services available to such person, any
programming company that delivers satellite-transmitted
television programming in scrambled or encrypted form shall
ensure that devices for description of such programming are
made available to such person, through the local community
antenna television operator or directly, for purchase or
lease at prices reasonably related to the cost of manufacture
and distribution of such devices.
(e) The General Assembly finds and declares that, in
order to ensure that community antenna television services
are provided in an orderly, competitive and economically
sound manner, the best interests of the public will be served
by the establishment of certain minimum standards and
procedures for the granting of additional cable television
franchises.
Subject to the provisions of this subsection, the
authority granted under subsection (a) hereof shall include
the authority to license, franchise and tax more than one
cable operator to provide community antenna television
services within the corporate limits of a single franchising
authority. For purposes of this subsection (e), the term:
(i) "Existing cable television franchise" means a
community antenna television franchise granted by a
municipality which is in use at the time such
municipality receives an application or request by
another cable operator for a franchise to provide cable
antenna television services within all or any portion of
the territorial area which is or may be served under the
existing cable television franchise.
(ii) "Additional cable television franchise" means
a franchise pursuant to which community antenna
television services may be provided within the
territorial areas, or any portion thereof, which may be
served under an existing cable television franchise.
(iii) "Franchising Authority" is defined as that
term is defined under Section 602(9) of the Cable
Communications Policy Act of 1984, Public Law 98-549, but
does not include any municipality with a population of
1,000,000 or more.
(iv) "Cable operator" is defined as that term is
defined under Section 602(4) of the Cable Communications
Policy Act of 1984, Public Law 98-549.
Before granting an additional cable television franchise,
the franchising authority shall:
(1) Give written notice to the owner or operator of
any other community antenna television system franchised
to serve all or any portion of the territorial area to be
served by such additional cable television franchise,
identifying the applicant for such additional franchise
and specifying the date, time and place at which the
franchising authority shall conduct public hearings to
consider and determine whether such additional cable
television franchise should be granted.
(2) Conduct a public hearing to determine the
public need for such additional cable television
franchise, the capacity of public rights-of-way to
accommodate such additional community antenna television
services, the potential disruption to existing users of
public rights-of-way to be used by such additional
franchise applicant to complete construction and to
provide cable television services within the proposed
franchise area, the long term economic impact of such
additional cable television system within the community,
and such other factors as the franchising authority shall
deem appropriate.
(3) Determine, based upon the foregoing factors,
whether it is in the best interest of the municipality to
grant such additional cable television franchise.
(4) If the franchising authority shall determine
that it is in the best interest of the municipality to do
so, it may grant the additional cable television
franchise. Except as provided in paragraph (5) of this
subsection (e), no such additional cable television
franchise shall be granted under terms or conditions more
favorable or less burdensome to the applicant than those
required under the existing cable television franchise,
including but not limited to terms and conditions
pertaining to the territorial extent of the franchise,
system design, technical performance standards,
construction schedules, performance bonds, standards for
construction and installation of cable television
facilities, service to subscribers, public educational
and governmental access channels and programming,
production assistance, liability and indemnification, and
franchise fees.
(5) Unless the existing cable television franchise
provides that any additional cable television franchise
shall be subject to the same terms or substantially
equivalent terms and conditions as those of the existing
cable television franchise, the franchising authority may
grant an additional cable television franchise under
different terms and conditions than those of the existing
franchise, in which event the franchising authority shall
enter into good faith negotiations with the existing
franchisee and shall, within 120 days after the effective
date of the additional cable television franchise, modify
the existing cable television franchise in a manner and
to the extent necessary to ensure that neither the
existing cable television franchise nor the additional
cable television franchise, each considered in its
entirety, provides a competitive advantage over the
other, provided that prior to modifying the existing
cable television franchise, the franchising authority
shall have conducted a public hearing to consider the
proposed modification. No modification in the terms and
conditions of the existing cable television franchise
shall oblige the existing cable television franchisee (1)
to make any additional payment to the franchising
authority, including the payment of any additional
franchise fee, (2) to engage in any additional
construction of the existing cable television system or,
(3) to modify the specifications or design of the
existing cable television system; and the inclusion of
the factors identified in items (2) and (3) shall not be
considered in determining whether either franchise
considered in its entirety, has a competitive advantage
over the other except to the extent that the additional
franchisee provides additional video or data services or
the equipment or facilities necessary to generate and or
carry such service. No modification in the terms and
conditions of the existing cable television franchise
shall be made if the existing cable television franchisee
elects to continue to operate under all terms and
conditions of the existing franchise.
If within the 120 day period the franchising
authority and the existing cable television franchisee
are unable to reach agreement on modifications to the
existing cable television franchise, then the franchising
authority shall modify the existing cable television
franchise, effective 45 days thereafter, in a manner, and
only to the extent, that the terms and conditions of the
existing cable television franchise shall no longer
impose any duty or obligation on the existing franchisee
which is not also imposed under the additional cable
television franchise; however, if by the modification the
existing cable television franchisee is relieved of
duties or obligations not imposed under the additional
cable television franchise, then within the same 45 days
and following a public hearing concerning modification of
the additional cable television franchise within that 45
day period, the franchising authority shall modify the
additional cable television franchise to the extent
necessary to insure that neither the existing cable
television franchise nor the additional cable television
franchise, each considered in its entirety, shall have a
competitive advantage over the other.
No municipality shall be subject to suit for damages
based upon the municipality's determination to grant or its
refusal to grant an additional cable television franchise,
provided that a public hearing as herein provided has been
held and the franchising authority has determined that it is
in the best interest of the municipality to grant or refuse
to grant such additional franchise, as the case may be.
It is declared to be the law of this State, pursuant to
paragraphs (h) and (i) of Section 6 of Article VII of the
Illinois Constitution, that the establishment of minimum
standards and procedures for the granting of additional cable
television franchises by municipalities with a population
less than 1,000,000 as provided in this subsection (e) is an
exclusive State power and function that may not be exercised
concurrently by a home rule unit.
(f) No municipality may acquire, construct, own, or
operate a community antenna television system unless the
corporate authorities adopt an ordinance. The ordinance must
set forth the action proposed; describe the plant, equipment,
and property to be acquired or constructed; and specifically
describe the manner in which the construction, acquisition,
and operation of the system will be financed.
The ordinance may not take effect until the question of
acquiring, construction, owning, or operating a community
antenna television system has been submitted to the electors
of the municipality at a regular election and approved by a
majority of the electors voting on the question. The
corporate authorities must certify the question to the proper
election authority, which must submit the question at an
election in accordance with the Election Code.
The question must be submitted in substantially the
following form:
Shall the ordinance authorizing the municipality to
(insert action authorized by ordinance) take effect?
The votes must be recorded as "Yes" or "No".
If a majority of electors voting on the question vote in
the affirmative, the ordinance shall take effect.
Not more than 30 or less than 15 days before the date of
the referendum, the municipal clerk must publish the
ordinance at least once in one or more newspapers published
in the municipality or, if no newspaper is published in the
municipality, in one or more newspapers of general
circulation within the municipality.
(Source: P.A. 89-657, eff. 8-14-96; 90-285, eff. 7-31-97.)
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