State of Illinois
92nd General Assembly
Legislation

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92_HB0336

 
                                               LRB9204495MWdv

 1        AN ACT in relation to cable television.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Counties  Code  is  amended  by  changing
 5    Section 5-1095 as follows:

 6        (55 ILCS 5/5-1095) (from Ch. 34, par. 5-1095)
 7        Sec.   5-1095.   Community  antenna  television  systems;
 8    satellite transmitted television programming.
 9        (a)  The County Board may license, tax or  franchise  the
10    business  of  operating a community antenna television system
11    or systems within the County and outside of  a  municipality,
12    as defined in Section 1-1-2 of the Illinois Municipal Code.
13        When  an  area is annexed to a municipality, the annexing
14    municipality shall thereby become the  franchising  authority
15    with  respect  to  that  portion  of  any  community  antenna
16    television  system  that,  immediately before annexation, had
17    provided cable television services within  the  annexed  area
18    under  a  franchise  granted  by the county, and the owner of
19    that community antenna television  system  shall  thereby  be
20    authorized  to  provide  cable television services within the
21    annexed area under the terms and provisions of  the  existing
22    franchise.   In  that instance, the franchise shall remain in
23    effect until, by its  terms,  it  expires,  except  that  any
24    franchise  fees  payable under the franchise shall be payable
25    only to the county for a period of 5 years or until,  by  its
26    terms,  the franchise expires, whichever occurs first.  After
27    the 5 year period,  any  franchise  fees  payable  under  the
28    franchise shall be paid to the annexing municipality.  In any
29    instance   in  which  a  duly  franchised  community  antenna
30    television system  is  providing  cable  television  services
31    within  the  annexing municipality at the time of annexation,
 
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 1    the annexing  municipality  may  permit  that  franchisee  to
 2    extend its community antenna television system to the annexed
 3    area  under  terms and conditions that are no more burdensome
 4    nor less favorable to  that  franchisee  than  those  imposed
 5    under  any  community antenna television franchise applicable
 6    to  the  annexed  area  at  the  time  of  annexation.    The
 7    authorization to  extend  cable  television  service  to  the
 8    annexed  area  and  any  community  antenna television system
 9    authorized to provide cable television  services  within  the
10    annexed  area  at the time of annexation shall not be subject
11    to the provisions of subsection (e) of this Section.
12        (b)  "Community antenna television  system"  as  used  in
13    this  Section,  means  any  facility  which is constructed in
14    whole or in part in, on, under or over any highway  or  other
15    public  place  and  which is operated to perform for hire the
16    service of receiving and amplifying the signals broadcast  by
17    one  or  more  television  stations  and  redistributing such
18    signals by wire, cable or  other  means  to  members  of  the
19    public  who  subscribe  to such service except that such term
20    does not include (i) any system which serves  fewer  than  50
21    subscribers   or  (ii)  any  system  which  serves  only  the
22    residents of one or more  apartment  dwellings  under  common
23    ownership,    control    or    management,   and   commercial
24    establishments located on the premises of such dwellings.
25        (c)  The authority hereby granted does  not  include  the
26    authority to license or franchise telephone companies subject
27    to  the  jurisdiction  of the Illinois Commerce Commission or
28    the Federal  Communications  Commission  in  connection  with
29    furnishing circuits, wires, cables or other facilities to the
30    operator of a community antenna television system.
31        The  County  Board may, in the course of franchising such
32    community antenna television system, grant to such franchisee
33    the authority and the right and permission to use all  public
34    streets,  rights  of  way,  alleys,  ways  for public service
 
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 1    facilities, parks,  playgrounds,  school  grounds,  or  other
 2    public  grounds,  in  which such county may have an interest,
 3    for the construction, installation,  operation,  maintenance,
 4    alteration, addition, extension or improvement of a community
 5    antenna television system.
 6        Any  charge  imposed  by  a  community antenna television
 7    system franchised pursuant to this Section for the raising or
 8    removal of cables or lines to permit passage on, to or from a
 9    street  shall  not  exceed  the  reasonable  costs  of   work
10    reasonably necessary to safely permit such passage.  Pursuant
11    to subsections (h) and (i) of Section 6 of Article VII of the
12    Constitution  of  the State of Illinois, the General Assembly
13    declares the regulation of charges which may  be  imposed  by
14    community  antenna  television  systems  for  the  raising or
15    removal of cables or lines to permit passage on, to  or  from
16    streets is a power or function to be exercised exclusively by
17    the  State  and not to be exercised or performed concurrently
18    with the State by any unit of local government, including any
19    home rule unit.
20        The  County  Board  may,  upon  written  request  by  the
21    franchisee of a community antenna television system, exercise
22    its right  of  eminent  domain  solely  for  the  purpose  of
23    granting  an  easement right no greater than 8 feet in width,
24    extending no greater than 8 feet from any lot  line  for  the
25    purpose  of  extending cable across any parcel of property in
26    the manner  provided  for  by  the  law  of  eminent  domain,
27    provided,  however,  such franchisee deposits with the county
28    sufficient security to pay all costs incurred by  the  county
29    in the exercise of its right of eminent domain.
30        Except   as   specifically  provided  otherwise  in  this
31    Section, this Section is not a limitation on  any  home  rule
32    county.
33        (d)  The   General   Assembly  finds  and  declares  that
34    satellite-transmitted  television   programming   should   be
 
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 1    available   to   those   who  desire  to  subscribe  to  such
 2    programming and that decoding devices should be obtainable at
 3    reasonable  prices  by  those  who  are  unable   to   obtain
 4    satellite-transmitted  television  programming  through  duly
 5    franchised community antenna television systems.
 6        In  any  instance  in  which a person is unable to obtain
 7    satellite-transmitted television programming through  a  duly
 8    franchised community antenna television system either because
 9    the  municipality and county in which such person resides has
10    not granted a franchise to operate and maintain  a  community
11    antenna  television  system,  or  because the duly franchised
12    community antenna television system operator  does  not  make
13    cable  television  services  available  to  such  person, any
14    programming  company  that   delivers   satellite-transmitted
15    television  programming  in scrambled or encrypted form shall
16    ensure that devices for decryption of  such  programming  are
17    made  available  to  such person, through the local community
18    antenna television operator  or  directly,  for  purchase  or
19    lease at prices reasonably related to the cost of manufacture
20    and distribution of such devices.
21        (e)  The  General  Assembly  finds  and declares that, in
22    order to ensure that community  antenna  television  services
23    are  provided  in  an  orderly,  competitive and economically
24    sound manner, the best interests of the public will be served
25    by  the  establishment  of  certain  minimum  standards   and
26    procedures  for  the  granting of additional cable television
27    franchises.
28        Subject  to  the  provisions  of  this  subsection,   the
29    authority  granted  under subsection (a) hereof shall include
30    the authority to license, franchise and  tax  more  than  one
31    cable   operator  to  provide  community  antenna  television
32    services  within  the  territorial   limits   of   a   single
33    franchising  authority.  For purposes of this subsection (e),
34    the term:
 
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 1             (i)  "Existing cable television franchise"  means  a
 2        community  antenna  television  franchise  granted  by  a
 3        county  which  is in use at the time such county receives
 4        an application or request by another cable operator for a
 5        franchise to provide cable  antenna  television  services
 6        within  all  or any portion of the territorial area which
 7        is or may be served under the existing  cable  television
 8        franchise.
 9             (ii)  "Additional  cable television franchise" means
10        a  franchise  pursuant   to   which   community   antenna
11        television   services   may   be   provided   within  the
12        territorial areas, or any portion thereof, which  may  be
13        served under an existing cable television franchise.
14             (iii)  "Franchising  Authority"  is  defined as that
15        term  is  defined  under  Section  602(9)  of  the  Cable
16        Communications Policy Act of 1984, Public Law 98-549.
17             (iv)  "Cable operator" is defined as  that  term  is
18        defined  under Section 602(4) of the Cable Communications
19        Policy Act of 1984, Public Law 98-549.
20        Before granting an additional cable television franchise,
21    the franchising authority shall:
22             (1)  Give written notice to the owner or operator of
23        any other community antenna television system  franchised
24        to serve all or any portion of the territorial area to be
25        served  by  such  additional  cable television franchise,
26        identifying the applicant for such  additional  franchise
27        and  specifying  the  date,  time  and place at which the
28        franchising authority shall conduct  public  hearings  to
29        consider  and  determine  whether  such  additional cable
30        television franchise should be granted.
31             (2)  Conduct  a  public  hearing  to  determine  the
32        public  need  for  such   additional   cable   television
33        franchise,   the  capacity  of  public  rights-of-way  to
34        accommodate such additional community antenna  television
 
                            -6-                LRB9204495MWdv
 1        services,  the  potential disruption to existing users of
 2        public  rights-of-way  to  be  used  by  such  additional
 3        franchise  applicant  to  complete  construction  and  to
 4        provide cable television  services  within  the  proposed
 5        franchise  area,  the  long  term economic impact of such
 6        additional cable television system within the  community,
 7        and such other factors as the franchising authority shall
 8        deem appropriate.
 9             (3)  Determine,  based  upon  the foregoing factors,
10        whether it is in the best interest of the county to grant
11        such additional cable television franchise.
12             (4)  If the franchising  authority  shall  determine
13        that  it  is in the best interest of the county to do so,
14        it may grant the additional cable  television  franchise.
15        Except  as  provided  in paragraph (5) of this subsection
16        (e), no such additional cable television franchise  shall
17        be  granted  under  terms or conditions more favorable or
18        less burdensome to  the  applicant  than  those  required
19        under  the existing cable television franchise, including
20        but not limited to terms and conditions pertaining to the
21        territorial  extent  of  the  franchise,  system  design,
22        technical performance standards, construction  schedules,
23        performance   bonds,   standards   for  construction  and
24        installation of cable television facilities,  service  to
25        subscribers,  public  educational and governmental access
26        channels   and   programming,   production    assistance,
27        liability and indemnification, and franchise fees.
28             (5)  Unless  the existing cable television franchise
29        provides that any additional cable  television  franchise
30        shall  be  subject  to  the  same  terms or substantially
31        equivalent terms and conditions as those of the  existing
32        cable television franchise, the franchising authority may
33        grant  an  additional  cable  television  franchise under
34        different terms and conditions than those of the existing
 
                            -7-                LRB9204495MWdv
 1        franchise, in which event the franchising authority shall
 2        enter into good  faith  negotiations  with  the  existing
 3        franchisee and shall, within 120 days after the effective
 4        date of the additional cable television franchise, modify
 5        the  existing  cable television franchise in a manner and
 6        to the  extent  necessary  to  ensure  that  neither  the
 7        existing  cable  television  franchise nor the additional
 8        cable  television  franchise,  each  considered  in   its
 9        entirety,  provides  a  competitive  advantage  over  the
10        other,  provided  that  prior  to  modifying the existing
11        cable television  franchise,  the  franchising  authority
12        shall  have  conducted  a  public hearing to consider the
13        proposed modification.   No modification in the terms and
14        conditions of the  existing  cable  television  franchise
15        shall oblige the existing cable television franchisee (1)
16        to   make  any  additional  payment  to  the  franchising
17        authority,  including  the  payment  of  any   additional
18        franchise   fee,   (2)   to   engage  in  any  additional
19        construction of the existing cable television system  or,
20        (3)  to  modify  the  specifications  or  design  of  the
21        existing  cable  television  system; and the inclusion of
22        the factors identified in items (2) and (3) shall not  be
23        considered   in   determining  whether  either  franchise
24        considered in its entirety, has a  competitive  advantage
25        over  the  other except to the extent that the additional
26        franchisee provides additional video or data services  or
27        the  equipment or facilities necessary to generate and or
28        carry such service.   No modification in  the  terms  and
29        conditions  of  the  existing  cable television franchise
30        shall be made if the existing cable television franchisee
31        elects  to  continue  to  operate  under  all  terms  and
32        conditions of the existing franchise.
33             If  within  the  120  day  period  the   franchising
34        authority  and  the  existing cable television franchisee
 
                            -8-                LRB9204495MWdv
 1        are unable to reach agreement  on  modifications  to  the
 2        existing cable television franchise, then the franchising
 3        authority  shall  modify  the  existing  cable television
 4        franchise, effective 45 days thereafter, in a manner, and
 5        only to the extent, that the terms and conditions of  the
 6        existing  cable  television  franchise  shall  no  longer
 7        impose  any duty or obligation on the existing franchisee
 8        which is not also  imposed  under  the  additional  cable
 9        television franchise; however, if by the modification the
10        existing  cable  television  franchisee  is  relieved  of
11        duties  or  obligations  not imposed under the additional
12        cable television franchise, then within the same 45  days
13        and following a public hearing concerning modification of
14        the  additional cable television franchise within that 45
15        day period, the franchising authority  shall  modify  the
16        additional  cable  television  franchise  to  the  extent
17        necessary  to  insure  that  neither  the  existing cable
18        television franchise nor the additional cable  television
19        franchise,  each considered in its entirety, shall have a
20        competitive advantage over the other.
21        No county shall be subject to suit for damages based upon
22    the county's determination to grant or its refusal  to  grant
23    an  additional  cable  television  franchise, provided that a
24    public hearing as herein  provided  has  been  held  and  the
25    franchising  authority  has determined that it is in the best
26    interest of the county to  grant  or  refuse  to  grant  such
27    additional franchise, as the case may be.
28        It  is  declared to be the law of this State, pursuant to
29    paragraphs (h) and (i) of Section 6 of  Article  VII  of  the
30    Illinois  Constitution,  that  the  establishment  of minimum
31    standards and procedures for the granting of additional cable
32    television franchises as provided in this subsection  (e)  is
33    an  exclusive  State  power  and  function  that  may  not be
34    exercised concurrently by a home rule unit.
 
                            -9-                LRB9204495MWdv
 1        (f)  If the county has granted a franchise to a community
 2    antenna television company under this Section, the  community
 3    antenna  television  company  may  not impose a rate increase
 4    unless the company has given its customers not less  than  60
 5    day's notice of the increase.  A community antenna television
 6    company  that has been granted a franchise under this Section
 7    must maintain  a  toll-free  telephone  number  in  order  to
 8    respond  to  customer  questions regarding the increase.  The
 9    telephone number must be provided to customers  at  the  same
10    time as the notice of the rate increase.
11    (Source: P.A. 90-14, eff. 7-1-97; 90-285, eff. 7-31-97.)

12        Section  10.   The  Illinois Municipal Code is amended by
13    changing Section 11-42-11 as follows:

14        (65 ILCS 5/11-42-11) (from Ch. 24, par. 11-42-11)
15        Sec. 11-42-11.   Community  antenna  television  systems;
16    satellite transmitted television programming.
17        (a)  The  corporate  authorities of each municipality may
18    license, franchise  and  tax  the  business  of  operating  a
19    community  antenna  television system as hereinafter defined.
20    In municipalities with less than 2,000,000  inhabitants,  the
21    corporate  authorities  may,  under the limited circumstances
22    set forth in this Section,  own  (or  lease  as  lessee)  and
23    operate  a community antenna television system; provided that
24    a municipality may not acquire, construct, own, or operate  a
25    community antenna television system for the use or benefit of
26    private consumers or users, and may not charge a fee for that
27    consumption  or  use,  unless  the  proposition  to  acquire,
28    construct,  own, or operate a cable antenna television system
29    has been submitted to and approved by  the  electors  of  the
30    municipality   in  accordance  with  subsection  (f).  Before
31    acquiring,  constructing,  or  commencing  operation   of   a
32    community  antenna  television system, the municipality shall
 
                            -10-               LRB9204495MWdv
 1    comply with the following:
 2             (1)  Give written notice to the owner or operator of
 3        any other community antenna television system  franchised
 4        to serve all or any portion of the territorial area to be
 5        served by the municipality's community antenna television
 6        system, specifying the date, time, and place at which the
 7        municipality  shall  conduct  public hearings to consider
 8        and determine whether the  municipality  should  acquire,
 9        construct,  or  commence operation of a community antenna
10        television  system.   The  public   hearings   shall   be
11        conducted at least 14 days after this notice is given.
12             (2)  Publish  a  notice  of the hearing in 2 or more
13        newspapers  published  in  the  county,  city,   village,
14        incorporated town, or town, as the case may be.  If there
15        is  no  such newspaper, then notice shall be published in
16        any 2 or more newspapers  published  in  the  county  and
17        having  a  general  circulation throughout the community.
18        The public hearings shall be conducted at least  14  days
19        after this notice is given.
20             (3)  Conduct a public hearing to determine the means
21        by  which construction, maintenance, and operation of the
22        system will be financed, including whether the use of tax
23        revenues or other fees will be required.
24        (b)  The  words  "community  antenna  television  system"
25    shall mean any facility which is constructed in whole  or  in
26    part  in, on, under or over any highway or other public place
27    and which is operated to perform  for  hire  the  service  of
28    receiving and amplifying the signals broadcast by one or more
29    television  stations and redistributing such signals by wire,
30    cable or other means to members of the public  who  subscribe
31    to  such  service;  except  that  such  definition  shall not
32    include  (i)  any  system  which  serves  fewer  than   fifty
33    subscribers,  or  (ii)  any  system  which  serves  only  the
34    residents  of  one  or  more apartment dwellings under common
 
                            -11-               LRB9204495MWdv
 1    ownership,   control   or    management,    and    commercial
 2    establishments located on the premises of such dwellings.
 3        (c)  The   authority  hereby  granted  does  not  include
 4    authority to license, franchise or  tax  telephone  companies
 5    subject  to  jurisdiction of the Illinois Commerce Commission
 6    or the Federal Communications Commission in  connection  with
 7    the   furnishing   of  circuits,  wires,  cables,  and  other
 8    facilities to the operator of a community antenna  television
 9    system.
10        The  corporate  authorities  of each municipality may, in
11    the course of franchising such community  antenna  television
12    system,  grant to such franchisee the authority and the right
13    and permission to use all  public  streets,  rights  of  way,
14    alleys,   ways   for   public   service   facilities,  parks,
15    playgrounds, school grounds,  or  other  public  grounds,  in
16    which  such  municipality  may  have  an  interest,  for  the
17    construction,     installation,    operation,    maintenance,
18    alteration, addition, extension or improvement of a community
19    antenna television system.
20        Any charge imposed  by  a  community  antenna  television
21    system franchised pursuant to this Section for the raising or
22    removal of cables or lines to permit passage on, to or from a
23    street   shall  not  exceed  the  reasonable  costs  of  work
24    reasonably necessary to safely permit such passage.  Pursuant
25    to subsections (h) and (i) of Section 6 of Article VII of the
26    Constitution of the State of Illinois, the  General  Assembly
27    declares  the  regulation  of charges which may be imposed by
28    community antenna  television  systems  for  the  raising  or
29    removal  of  cables or lines to permit passage on, to or from
30    streets is a power or function to be exercised exclusively by
31    the State and not to be exercised or  performed  concurrently
32    with the State by any unit of local government, including any
33    home rule unit.
34        The   municipality  may,  upon  written  request  by  the
 
                            -12-               LRB9204495MWdv
 1    franchisee of a community antenna television system, exercise
 2    its right  of  eminent  domain  solely  for  the  purpose  of
 3    granting  an  easement right no greater than 8 feet in width,
 4    extending no greater than 8 feet from any lot  line  for  the
 5    purpose  of  extending cable across any parcel of property in
 6    the manner provided by the law of eminent  domain,  provided,
 7    however,  such  franchisee  deposits  with  the  municipality
 8    sufficient   security  to  pay  all  costs  incurred  by  the
 9    municipality in the exercise of its right of eminent domain.
10        (d)  The  General  Assembly  finds  and   declares   that
11    satellite-transmitted   television   programming   should  be
12    available  to  those  who  desire  to   subscribe   to   such
13    programming and that decoding devices should be obtainable at
14    reasonable   prices   by  those  who  are  unable  to  obtain
15    satellite-transmitted  television  programming  through  duly
16    franchised community antenna television systems.
17        In any instance in which a person  is  unable  to  obtain
18    satellite-transmitted  television  programming through a duly
19    franchised community antenna television system either because
20    the municipality and county in which such person resides  has
21    not  granted  a franchise to operate and maintain a community
22    antenna television system, or  because  the  duly  franchised
23    community  antenna  television  system operator does not make
24    cable television  services  available  to  such  person,  any
25    programming   company   that  delivers  satellite-transmitted
26    television programming in scrambled or encrypted  form  shall
27    ensure  that  devices for description of such programming are
28    made available to such person, through  the  local  community
29    antenna  television  operator  or  directly,  for purchase or
30    lease at prices reasonably related to the cost of manufacture
31    and distribution of such devices.
32        (e)  The General Assembly finds  and  declares  that,  in
33    order  to  ensure  that community antenna television services
34    are provided in  an  orderly,  competitive  and  economically
 
                            -13-               LRB9204495MWdv
 1    sound manner, the best interests of the public will be served
 2    by   the  establishment  of  certain  minimum  standards  and
 3    procedures for the granting of  additional  cable  television
 4    franchises.
 5        Subject   to  the  provisions  of  this  subsection,  the
 6    authority granted under subsection (a) hereof  shall  include
 7    the  authority  to  license,  franchise and tax more than one
 8    cable  operator  to  provide  community  antenna   television
 9    services  within the corporate limits of a single franchising
10    authority.  For purposes of this subsection (e), the term:
11             (i)  "Existing cable television franchise"  means  a
12        community  antenna  television  franchise  granted  by  a
13        municipality   which   is   in   use  at  the  time  such
14        municipality  receives  an  application  or  request   by
15        another  cable  operator for a franchise to provide cable
16        antenna television services within all or any portion  of
17        the  territorial area which is or may be served under the
18        existing cable television franchise.
19             (ii)  "Additional cable television franchise"  means
20        a   franchise   pursuant   to   which  community  antenna
21        television  services   may   be   provided   within   the
22        territorial  areas,  or any portion thereof, which may be
23        served under an existing cable television franchise.
24             (iii)  "Franchising Authority" is  defined  as  that
25        term  is  defined  under  Section  602(9)  of  the  Cable
26        Communications Policy Act of 1984, Public Law 98-549, but
27        does  not  include  any municipality with a population of
28        1,000,000 or more.
29             (iv)  "Cable operator" is defined as  that  term  is
30        defined  under Section 602(4) of the Cable Communications
31        Policy Act of 1984, Public Law 98-549.
32        Before granting an additional cable television franchise,
33    the franchising authority shall:
34             (1)  Give written notice to the owner or operator of
 
                            -14-               LRB9204495MWdv
 1        any other community antenna television system  franchised
 2        to serve all or any portion of the territorial area to be
 3        served  by  such  additional  cable television franchise,
 4        identifying the applicant for such  additional  franchise
 5        and  specifying  the  date,  time  and place at which the
 6        franchising authority shall conduct  public  hearings  to
 7        consider  and  determine  whether  such  additional cable
 8        television franchise should be granted.
 9             (2)  Conduct  a  public  hearing  to  determine  the
10        public  need  for  such   additional   cable   television
11        franchise,   the  capacity  of  public  rights-of-way  to
12        accommodate such additional community antenna  television
13        services,  the  potential disruption to existing users of
14        public  rights-of-way  to  be  used  by  such  additional
15        franchise  applicant  to  complete  construction  and  to
16        provide cable television  services  within  the  proposed
17        franchise  area,  the  long  term economic impact of such
18        additional cable television system within the  community,
19        and such other factors as the franchising authority shall
20        deem appropriate.
21             (3)  Determine,  based  upon  the foregoing factors,
22        whether it is in the best interest of the municipality to
23        grant such additional cable television franchise.
24             (4)  If the franchising  authority  shall  determine
25        that it is in the best interest of the municipality to do
26        so,   it   may  grant  the  additional  cable  television
27        franchise.  Except as provided in paragraph (5)  of  this
28        subsection  (e),  no  such  additional  cable  television
29        franchise shall be granted under terms or conditions more
30        favorable  or less burdensome to the applicant than those
31        required under the existing cable  television  franchise,
32        including   but  not  limited  to  terms  and  conditions
33        pertaining to the territorial extent  of  the  franchise,
34        system    design,    technical   performance   standards,
 
                            -15-               LRB9204495MWdv
 1        construction schedules, performance bonds, standards  for
 2        construction   and   installation   of  cable  television
 3        facilities, service to  subscribers,  public  educational
 4        and   governmental   access   channels  and  programming,
 5        production assistance, liability and indemnification, and
 6        franchise fees.
 7             (5)  Unless the existing cable television  franchise
 8        provides  that  any additional cable television franchise
 9        shall be subject  to  the  same  terms  or  substantially
10        equivalent  terms and conditions as those of the existing
11        cable television franchise, the franchising authority may
12        grant an  additional  cable  television  franchise  under
13        different terms and conditions than those of the existing
14        franchise, in which event the franchising authority shall
15        enter  into  good  faith  negotiations  with the existing
16        franchisee and shall, within 120 days after the effective
17        date of the additional cable television franchise, modify
18        the existing cable television franchise in a  manner  and
19        to  the  extent  necessary  to  ensure  that  neither the
20        existing cable television franchise  nor  the  additional
21        cable   television  franchise,  each  considered  in  its
22        entirety,  provides  a  competitive  advantage  over  the
23        other, provided that  prior  to  modifying  the  existing
24        cable  television  franchise,  the  franchising authority
25        shall have conducted a public  hearing  to  consider  the
26        proposed modification.   No modification in the terms and
27        conditions  of  the  existing  cable television franchise
28        shall oblige the existing cable television franchisee (1)
29        to  make  any  additional  payment  to  the   franchising
30        authority,   including  the  payment  of  any  additional
31        franchise  fee,  (2)  to   engage   in   any   additional
32        construction  of the existing cable television system or,
33        (3)  to  modify  the  specifications  or  design  of  the
34        existing cable television system; and  the  inclusion  of
 
                            -16-               LRB9204495MWdv
 1        the  factors identified in items (2) and (3) shall not be
 2        considered  in  determining  whether   either   franchise
 3        considered  in  its entirety, has a competitive advantage
 4        over the other except to the extent that  the  additional
 5        franchisee  provides additional video or data services or
 6        the equipment or facilities necessary to generate and  or
 7        carry  such  service.    No modification in the terms and
 8        conditions of the  existing  cable  television  franchise
 9        shall be made if the existing cable television franchisee
10        elects  to  continue  to  operate  under  all  terms  and
11        conditions of the existing franchise.
12             If   within  the  120  day  period  the  franchising
13        authority and the existing  cable  television  franchisee
14        are  unable  to  reach  agreement on modifications to the
15        existing cable television franchise, then the franchising
16        authority shall  modify  the  existing  cable  television
17        franchise, effective 45 days thereafter, in a manner, and
18        only  to the extent, that the terms and conditions of the
19        existing  cable  television  franchise  shall  no  longer
20        impose any duty or obligation on the existing  franchisee
21        which  is  not  also  imposed  under the additional cable
22        television franchise; however, if by the modification the
23        existing  cable  television  franchisee  is  relieved  of
24        duties or obligations not imposed  under  the  additional
25        cable  television franchise, then within the same 45 days
26        and following a public hearing concerning modification of
27        the additional cable television franchise within that  45
28        day  period,  the  franchising authority shall modify the
29        additional  cable  television  franchise  to  the  extent
30        necessary to  insure  that  neither  the  existing  cable
31        television  franchise nor the additional cable television
32        franchise, each considered in its entirety, shall have  a
33        competitive advantage over the other.
34        No  municipality  shall  be  subject  to suit for damages
 
                            -17-               LRB9204495MWdv
 1    based upon the municipality's determination to grant  or  its
 2    refusal  to  grant  an additional cable television franchise,
 3    provided that a public hearing as herein  provided  has  been
 4    held  and the franchising authority has determined that it is
 5    in the best interest of the municipality to grant  or  refuse
 6    to grant such additional franchise, as the case may be.
 7        It  is  declared to be the law of this State, pursuant to
 8    paragraphs (h) and (i) of Section 6 of  Article  VII  of  the
 9    Illinois  Constitution,  that  the  establishment  of minimum
10    standards and procedures for the granting of additional cable
11    television franchises by  municipalities  with  a  population
12    less  than 1,000,000 as provided in this subsection (e) is an
13    exclusive State power and function that may not be  exercised
14    concurrently by a home rule unit.
15        (f)  No  municipality  may  acquire,  construct,  own, or
16    operate a community  antenna  television  system  unless  the
17    corporate authorities adopt an ordinance.  The ordinance must
18    set forth the action proposed; describe the plant, equipment,
19    and  property to be acquired or constructed; and specifically
20    describe the manner in which the  construction,  acquisition,
21    and operation of the system will be financed.
22        The  ordinance  may not take effect until the question of
23    acquiring, construction, owning,  or  operating  a  community
24    antenna  television system has been submitted to the electors
25    of the municipality at a regular election and approved  by  a
26    majority  of  the  electors  voting  on  the  question.   The
27    corporate authorities must certify the question to the proper
28    election  authority,  which  must  submit  the question at an
29    election in accordance with the Election Code.
30        The question  must  be  submitted  in  substantially  the
31    following form:
32             Shall  the ordinance authorizing the municipality to
33        (insert action authorized by ordinance) take effect?
34    The votes must be recorded as "Yes" or "No".
 
                            -18-               LRB9204495MWdv
 1        If a majority of electors voting on the question vote  in
 2    the affirmative, the ordinance shall take effect.
 3        Not  more than 30 or less than 15 days before the date of
 4    the  referendum,  the  municipal  clerk  must   publish   the
 5    ordinance  at  least once in one or more newspapers published
 6    in the municipality or, if no newspaper is published  in  the
 7    municipality,   in   one   or   more  newspapers  of  general
 8    circulation within the municipality.
 9        (g)  If the municipality has granted  a  franchise  to  a
10    community  antenna television company under this Section, the
11    community antenna television company may not  impose  a  rate
12    increase  unless the company has given its customers not less
13    than 60 day's notice of the  increase.  A  community  antenna
14    television  company  that  has been granted a franchise under
15    this Section must maintain a toll-free  telephone  number  in
16    order   to   respond  to  customer  questions  regarding  the
17    increase.  The telephone number must be provided to customers
18    at the same time as the notice of the rate increase.
19    (Source: P.A. 90-285, eff. 7-31-97; 91-648, eff. 1-1-00.)

20        Section 99.  Effective date.  This Act takes effect  upon
21    becoming law.

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