House Amendment 1598


PAG LIN




     1  1    Amend Senate File 554, as amended, passed, and
     1  2 reprinted by the Senate, as follows:
     1  3 #1.  Page 1, by inserting after line 29 the
     1  4 following:
     1  5    <   .  "Franchise fee" means the fee imposed under
     1  6 section 477A.7.>
     1  7 #2.  Page 2, line 1, by inserting after the word
     1  8 <jurisdiction.> the following:  <Gross revenues are
     1  9 limited to the following:
     1 10    (1)  Recurring charges for cable service or video
     1 11 service.
     1 12    (2)  Event=based charges for cable service or video
     1 13 service, including but not limited to pay=per=view and
     1 14 video=on=demand charges.
     1 15    (3)  Rental of set=top boxes and other cable
     1 16 service or video service equipment.
     1 17    (4)  Service charges related to the provision of
     1 18 cable service or video service, including but not
     1 19 limited to activation, installation, and repair
     1 20 charges.
     1 21    (5)  Administrative charges related to the
     1 22 provision of cable service or video service, including
     1 23 but not limited to service order and service
     1 24 termination charges.
     1 25    (6)  A pro rata portion of all revenue derived,
     1 26 less refunds, rebates, or discounts, by a cable
     1 27 service provider or a video service provider for
     1 28 advertising over the cable service or video service
     1 29 network to subscribers within the franchise area where
     1 30 the numerator is the number of subscribers within the
     1 31 franchise area, and the denominator is the total
     1 32 number of subscribers reached by such advertising.
     1 33 This subparagraph applies only to municipalities that
     1 34 include this provision in their franchise agreements
     1 35 as of January 1, 2007.>
     1 36 #3.  Page 2, lines 17 and 18, by striking the words
     1 37 <revenue received in connection with advertising,>.
     1 38 #4.  Page 3, by inserting after line 25 the
     1 39 following:
     1 40    <(14)  Late payment charges.
     1 41    (15)  Maintenance charges.>
     1 42 #5.  Page 3, line 28, by striking the word <July>
     1 43 and inserting the following:  <January>.
     1 44 #6.  Page 3, by inserting after line 28 the
     1 45 following:
     1 46    <   .  "Institutional network" means the system of
     1 47 dedicated fibers, coaxial cables, or wires constructed
     1 48 and maintained by an incumbent cable provider which is
     1 49 reserved and dedicated by the municipality for
     1 50 noncommercial purposes.>
     2  1 #7.  Page 3, by striking lines 33 through 35 and
     2  2 inserting the following:  <greater than five percent.
     2  3 However, if the incumbent cable provider is a>.
     2  4 #8.  Page 5, line 27, by inserting after the word
     2  5 <area> the following:  <, and to the incumbent cable
     2  6 provider,>.
     2  7 #9.  Page 5, lines 31 and 32, by striking the words
     2  8 <offers or intends to> and inserting the following:
     2  9 <will>.
     2 10 #10.  Page 5, line 33, by inserting after the word
     2 11 <municipality> the following:  <, and shall not
     2 12 provide service without having provided such thirty
     2 13 days' notice>.
     2 14 #11.  Page 6, by striking lines 6 through 18 and
     2 15 inserting the following:
     2 16    <6.  If a competitive cable service provider or a
     2 17 competitive video service provider receives a
     2 18 certificate of franchise authority to operate within a
     2 19 municipality, the incumbent cable provider may, at its
     2 20 discretion, apply for a certificate of franchise
     2 21 authority for that same municipality.  Such
     2 22 application shall be automatically granted on the same
     2 23 day as a competitive cable service provider or
     2 24 competitive video service provider files a thirty
     2 25 days' notice of offering service as required pursuant
     2 26 to subsection 4.  The franchise agreement with the
     2 27 municipality is terminated on the date the board
     2 28 issues the certificate of franchise authority to an
     2 29 incumbent cable provider.  The terms and conditions of
     2 30 the certificate of franchise authority shall be the
     2 31 same as the terms and conditions of a competitive
     2 32 cable service provider or a competitive video service
     2 33 provider pursuant to this chapter and shall replace
     2 34 the terms and conditions of the franchise agreement
     2 35 previously granted by the municipality.>
     2 36 #12.  Page 6, line 34, by inserting after the words
     2 37 <laws and> the following:  <nondiscriminatory>.
     2 38 #13.  Page 8, by striking lines 3 through 11 and
     2 39 inserting the following:
     2 40    <4.  A certificate of franchise authority issued by
     2 41 the board is fully transferable to any successor of
     2 42 the applicant to which the certificate was initially
     2 43 issued.  A notice of transfer shall be filed by the
     2 44 holder of the certificate of franchise authority with
     2 45 the board and the affected municipality and shall be
     2 46 effective fourteen business days after submission.
     2 47 The notice of transfer shall include the address of
     2 48 the successor's principal place of business and the
     2 49 names of the successor's principal executive officers.
     2 50 The successor shall assume all regulatory rights and
     3  1 responsibilities of the holder of the certificate.
     3  2 Neither the board nor an affected municipality shall
     3  3 have authority to review or require approval of such
     3  4 transfer.>
     3  5 #14.  Page 10, line 15, by inserting after the word
     3  6 <services.> the following:  <At its election the
     3  7 municipality may reasonably request any cable service
     3  8 provider or video service provider to make any
     3  9 necessary change to the form of any programming,
     3 10 furnished for transmission, which shall be charged to
     3 11 the municipality, not to exceed the provider's
     3 12 incremental costs.  The municipality shall have up to
     3 13 twelve months to reimburse the cable service provider
     3 14 or video service provider.>
     3 15 #15.   Page 11, by striking lines 20 through 26 and
     3 16 inserting the following:
     3 17    <b.  All cable service providers and video service
     3 18 providers shall pay a franchise fee at the same
     3 19 percent of gross revenues as had been assessed on the
     3 20 incumbent cable provider by the municipality as of
     3 21 January 1, 2007, and such percentage shall continue to
     3 22 apply for the period of the remaining term of the
     3 23 existing franchise agreement with the municipality.
     3 24 Upon expiration of the period of the remaining term of
     3 25 the agreement with the incumbent cable service
     3 26 provider, a municipality may request an increase in
     3 27 the franchise fee up to five percent of gross
     3 28 revenues.>
     3 29 #16.  Page 12, line 5, by striking the word <eight>
     3 30 and inserting the following:  <five>.
     3 31 #17.  Page 12, by striking lines 12 through 29.
     3 32 #18.  Page 12, line 35, by inserting after the word
     3 33 <municipality> the following:  <, even if the
     3 34 incumbent cable provider elects to convert to a
     3 35 certificate of franchise authority pursuant to section
     3 36 477A.2>.
     3 37 #19.  Page 13, by striking lines 3 through 14 and
     3 38 inserting the following:
     3 39    <4.  a.  If an incumbent cable provider is required
     3 40 by a franchise agreement as of January 1, 2007, to
     3 41 provide institutional network capacity to a
     3 42 municipality for use by the municipality for
     3 43 noncommercial purposes, the incumbent cable provider
     3 44 and any subsequent holder of a certificate of
     3 45 franchise authority shall provide support only for the
     3 46 existing institutional network on a pro rata basis per
     3 47 customer.  Any financial support provided for an
     3 48 institutional network shall be limited to ongoing
     3 49 maintenance and support of the existing institutional
     3 50 network.  This subsection shall be applicable only to
     4  1 a cable service provider's or video service provider's
     4  2 first certificate of franchise authority issued under
     4  3 this chapter, and shall not apply to any subsequent
     4  4 renewals.  For the purposes of this subsection,
     4  5 maintenance and support shall only include the
     4  6 reasonable incremental cost of moves, changes, and
     4  7 restoring connectivity of the fiber or coaxial cable
     4  8 lines up to a demarcation point at the building.
     4  9    b.  For purposes of this subsection, the number of
     4 10 customers of a cable service provider or video service
     4 11 provider shall be determined based on the relative
     4 12 number of subscribers in that municipality at the end
     4 13 of the prior calendar year as reported to the
     4 14 municipality by all incumbent cable providers and
     4 15 holders of a certificate of franchise authority.  Any
     4 16 records showing the number of subscribers shall be
     4 17 considered confidential records pursuant to section
     4 18 22.7.  The incumbent cable provider shall provide to
     4 19 the municipality, on an annual basis, the maintenance
     4 20 and support costs of the institutional network,
     4 21 subject to an independent audit.  A municipality
     4 22 acting under this subsection shall notify and present
     4 23 a bill to competitive cable service providers or
     4 24 competitive video service providers for the amount of
     4 25 such support on an annual basis, beginning one year
     4 26 after issuance of the certificate of franchise
     4 27 authority.  The annual institutional network support
     4 28 shall be due and paid by the providers to the
     4 29 municipality in four quarterly payments, not later
     4 30 than forty=five days after the close of each quarter.
     4 31 The municipality shall reimburse the incumbent cable
     4 32 provider for the amounts received from competitive
     4 33 cable service providers or competitive video service
     4 34 providers.
     4 35    c.  This subsection shall not apply if the
     4 36 incumbent cable service provider is a municipal
     4 37 utility providing telecommunications services under
     4 38 section 388.10.>
     4 39 #20.  Page 13, by inserting before line 15 the
     4 40 following:
     4 41    <5.  A franchise fee may be assessed or imposed by
     4 42 a municipality without regard to the municipality's
     4 43 cost of inspecting, supervising, or otherwise
     4 44 regulating the franchise, and the fees collected may
     4 45 be credited to the municipality's general fund and
     4 46 used for municipal general fund purposes.
     4 47    6.  To the extent that any amount of franchise fees
     4 48 assessed by and paid to a municipality prior to the
     4 49 effective date of this Act,  pursuant to a franchise
     4 50 agreement between a municipality and any person to
     5  1 erect, maintain, and operate plants and systems for
     5  2 cable television, exceeds the municipality's
     5  3 reasonable costs of inspecting, supervising, or
     5  4 otherwise regulating the franchise, such amount is
     5  5 deemed and declared to be authorized and legally
     5  6 assessed by and paid to the municipality.>
     5  7 #21.  Page 14, line 24, by striking the words <four
     5  8 thousand> and inserting the following:  <two thousand
     5  9 five hundred>.
     5 10 #22.  Page 15, by inserting after line 14 the
     5 11 following:
     5 12    <Sec.    .  FRANCHISES FOR PROVISION OF CABLE
     5 13 SERVICE OR VIDEO SERVICE == SEVERABILITY.  If any
     5 14 provision of this Act, or its application thereof to
     5 15 any person or circumstance is held invalid, the
     5 16 invalidity shall not affect other provisions or
     5 17 applications of this Act which can be given effect
     5 18 without the invalid provision or application, and to
     5 19 this end the provisions of this Act are severable as
     5 20 provided in section 4.12.>
     5 21 #23.  By renumbering, redesignating, and correcting
     5 22 internal references as necessary.
     5 23
     5 24
     5 25                               
     5 26 COMMITTEE ON COMMERCE
     5 27 PETERSEN of Polk, CHAIRPERSON
     5 28 SF 554.506 82
     5 29 rn/je/9143

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