House File 2491 - Introduced
HOUSE FILE
BY GASKILL
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the termination of a franchise agreement by a
2 city.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6357YH 81
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PAG LIN
1 1 Section 1. Section 364.2, subsection 4, Code Supplement
1 2 2005, is amended to read as follows:
1 3 4. a. A city may grant to any person a franchise to
1 4 erect, maintain, and operate plants and systems for electric
1 5 light and power, heating, telegraph, cable television,
1 6 district telegraph and alarm, motor bus, trolley bus, street
1 7 railway or other public transit, waterworks, or gasworks,
1 8 within the city for a term of not more than twenty=five years.
1 9 After a franchise is granted, the city may amend, extend,
1 10 renew, or terminate a franchise as provided in this section.
1 11 The city shall not terminate a franchise less than five years
1 12 after the effective date of the franchise or after the last
1 13 election which had the effect of retaining the franchise.
1 14 When considering whether to grant, amend, extend, or renew, or
1 15 terminate a franchise, a city shall hold a public hearing on
1 16 the question. Notice of the time and place of the hearing
1 17 shall be published as provided in section 362.3. The
1 18 franchise may be granted, amended, extended, or renewed, or
1 19 terminated only by an ordinance, but no exclusive franchise
1 20 shall be granted, amended, extended, or renewed.
1 21 b. Such an ordinance shall not become effective unless
1 22 approved at an election. The proposal may be submitted by the
1 23 council on its own motion to the voters at any city election.
1 24 Upon receipt of a valid petition as defined in section 362.4
1 25 requesting that a proposal be submitted to the voters, the
1 26 council shall submit the proposal at the next regular city
1 27 election or at a special election called for that purpose
1 28 before the next regular city election. If the proposal is to
1 29 terminate a franchise, the effective date of the termination
1 30 is contingent upon voter approval of a new franchise pursuant
1 31 to this paragraph "b", and the election shall be set not less
1 32 than ninety days after the council's action to submit the
1 33 termination proposal to the voters. However, the city council
1 34 may dispense with such election as to the grant, amendment,
1 35 extension, or renewal of an electric light and power, heating,
2 1 or gasworks franchise unless there is a valid petition
2 2 requesting submission of the proposal to the voters, or the
2 3 party seeking such franchise, grant, amendment, extension, or
2 4 renewal requests an election. If a majority of those voting
2 5 approves the proposal, the city may proceed as proposed. The
2 6 complete text of the ordinance shall be included on the ballot
2 7 if paper ballots are used. If an electronic voting system or
2 8 voting machine is used, the proposal shall be stated on the
2 9 ballot and the full text of the ordinance posted for the
2 10 voters pursuant to section 52.25. All absentee voters shall
2 11 receive the full text of the ordinance.
2 12 If the proposal is to terminate a franchise and a majority
2 13 of those voting approves the proposal, the council shall seek
2 14 another person to provide the service of the terminated
2 15 franchise pursuant to the requirements of this section to
2 16 grant a new franchise and shall submit the proposed ordinance
2 17 to grant the new franchise to the voters at an election to be
2 18 held within ninety days after the ordinance is adopted by the
2 19 council. However, the franchise proposed to be terminated
2 20 shall not be terminated if any of the following occurs:
2 21 (1) A majority of those voting does not approve the
2 22 proposal to terminate the franchise.
2 23 (2) The city fails to find another person to provide the
2 24 service of the terminated franchise within one hundred eighty
2 25 days after the election to terminate the franchise.
2 26 (3) A majority of those voting does not approve the new
2 27 franchise.
2 28 c. Notice of the election shall be given by publication as
2 29 prescribed in section 49.53 in a newspaper of general
2 30 circulation in the city.
2 31 d. The person asking for the granting, amending,
2 32 extension, or renewal, or termination of a franchise shall pay
2 33 the costs incurred in holding the election, including the
2 34 costs of the notice. A franchise shall not be finally
2 35 effective until an acceptance in writing has been filed with
3 1 the council and payment of the costs has been made.
3 2 e. The franchise ordinance may regulate the conditions
3 3 required and the manner of use of the streets and public
3 4 grounds of the city, and it may, for the purpose of providing
3 5 electrical, gas, heating, or water service, confer the power
3 6 to appropriate and condemn private property upon the person
3 7 franchised.
3 8 f. If a city franchise fee is assessed to customers of a
3 9 franchise, the fee shall not be assessed to the city as a
3 10 customer.
3 11 g. If a city grants more than one cable television
3 12 franchise, the material terms and conditions of any additional
3 13 franchise shall not give undue preference or advantage to the
3 14 new franchisee. A city shall not grant a new franchise that
3 15 does not include the same territory as that of the existing
3 16 franchise. A new franchisee shall be given a reasonable
3 17 period of time to build the new system throughout the
3 18 territory.
3 19 EXPLANATION
3 20 This bill relates to the termination of a franchise
3 21 agreement by a city. The bill provides that in addition to a
3 22 city being able to grant, amend, extend, or renew a franchise,
3 23 the city may also terminate a franchise after the franchise
3 24 has been effective for five years. A proposal to terminate a
3 25 franchise may be submitted by the council on its own motion or
3 26 shall be submitted upon receipt of a valid petition requesting
3 27 the proposal be submitted to the voters.
3 28 The bill requires a city to hold a public hearing on the
3 29 question of whether to terminate a franchise and requires the
3 30 city to terminate only after adoption of an ordinance to
3 31 terminate and approval from a majority of those voting at an
3 32 election. The election on a proposal to terminate a franchise
3 33 is required by the bill to be held not less than 90 days after
3 34 the proposal was submitted for election by the city council.
3 35 If at the election a majority of those voting approves the
4 1 proposal to terminate the franchise, the city council shall
4 2 seek a person to provide those services of the terminated
4 3 franchise by complying with the same requirements required for
4 4 granting a new franchise. The election on the new franchise
4 5 proposal shall be held within 90 days after the proposal is
4 6 adopted by ordinance by the city council.
4 7 The bill provides that a franchise shall not be terminated
4 8 if the proposal to terminate the franchise fails to receive a
4 9 majority of those voting in the election, or if the city fails
4 10 to find another person to provide the service of the
4 11 terminated franchise within 180 days after the election to
4 12 terminate. The franchise may also not be terminated if a
4 13 majority of those voting does not approve the new franchise as
4 14 provided by the bill. The bill provides that the person
4 15 asking for the termination of a franchise shall pay the costs
4 16 incurred in holding the election.
4 17 LSB 6357YH 81
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