State of Illinois
91st General Assembly
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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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