S.F. 2324 Section 1. Section 477A.2, subsection 4, Code 2009, is 1 amended to read as follows: 2 4. A competitive cable service provider or competitive 3 video service provider shall provide at least thirty days’ 4 notice to each municipality with authority to grant a franchise 5 in the service area, and to the incumbent cable provider, in 6 which the competitive cable service provider or competitive 7 video service provider is granted authority to provide service 8 under a certificate of franchise authority that the competitive 9 cable service provider or competitive video service provider 10 will offer cable services or video services within the 11 jurisdiction of the municipality, and shall not provide service 12 without having provided such thirty days’ notice. A copy of 13 the notice shall be filed with the board on the date that the 14 notice is provided. 15 Sec. 2. Section 477A.3, Code 2009, is amended to read as 16 follows: 17 477A.3 Application requirements —— certificate of franchise 18 authority. 19 1. The board shall issue a certificate of franchise 20 authority under this chapter within fifteen thirty business 21 days after receipt of a completed application and affidavit 22 submitted by the applicant and signed by an officer or general 23 partner of the applicant , subject to subsection 3 . The 24 application and affidavit shall provide all of the following 25 information: 26 a. That the applicant has filed or will timely file with 27 the federal communications commission all forms required by 28 the commission in advance of offering cable service or video 29 service in this state. 30 b. That the applicant agrees to comply with all applicable 31 federal and state statutes, regulations, and rules. 32 c. That the applicant agrees to comply with all applicable 33 state laws and nondiscriminatory municipal ordinances and 34 regulations regarding the use and occupation of a public 35 -1- LSB 5662SV (3) 83 rn/rj 1/ 6

S.F. 2324 right-of-way in the delivery of the cable service or video 1 service, to the extent consistent with this chapter, including 2 the police powers of the municipalities in which the service 3 is delivered. 4 d. A description of the service area to be served and the 5 municipalities to be served by the applicant which may include 6 certain designations of unincorporated areas. This description 7 shall be updated by the applicant prior to the expansion of 8 cable service or video service to a previously undesignated 9 service area and, upon such expansion, notice shall be given to 10 the board of the service area to be served by the applicant. 11 e. The address of the applicant’s principal place of 12 business and the names of the applicant’s principal executive 13 officers. 14 f. Documentation that the applicant possesses sufficient 15 managerial, technical, and financial capability to provide the 16 cable service or video service proposed in the service area. 17 g. Copies of advertisements or news releases announcing the 18 applicant’s intent to provide cable service or video service 19 in the service area intended for release if the certificate of 20 franchise authority is granted. 21 h. A schedule of dates by which the applicant intends to 22 commence operation in each municipality proposed to be served 23 within the service area. This schedule shall be timely updated 24 by the applicant as necessary to maintain accuracy. 25 2. In addition to the notice requirements in section 26 477A.2, subsection 4, an applicant shall provide notice to each 27 municipality with authority to grant a franchise in the service 28 area on the date that the application is submitted that the 29 applicant has submitted an application to the board pursuant to 30 subsection 1. 31 3. The board shall not issue a certificate of franchise 32 authority to an applicant unless the board is fully satisfied 33 that all of the requirements specified in subsection 1, 34 paragraphs “f” through “h” have been met. 35 -2- LSB 5662SV (3) 83 rn/rj 2/ 6

S.F. 2324 2. 4. The failure of the board to notify the applicant 1 of the completeness of the applicant’s affidavit or 2 issue a certificate of franchise authority before the 3 fifteenth thirtieth business day after receipt of a completed 4 affidavit shall constitute issuance of the certificate of 5 franchise authority applied for by the applicant without 6 further action by the applicant. 7 3. 5. The certificate of franchise authority issued by the 8 board shall contain all of the following: 9 a. A grant of authority to provide cable service or video 10 service in the service area designated in the application. 11 b. A grant of authority to use and occupy the public 12 right-of-way in the delivery of cable service or video service, 13 subject to the laws of this state, including the police powers 14 of the municipalities in which the service is delivered. 15 c. A statement that the grant of authority provided by the 16 certificate is subject to the lawful operation of the cable 17 service or video service by the applicant or the applicant’s 18 successor. 19 d. A statement that the franchise is for a term of ten 20 years, is renewable under the terms of this section, and is 21 nonexclusive. 22 6. If the holder of a certificate of franchise authority 23 fails to complete construction and commence operation of a 24 cable system or video service network within one year from the 25 date the application is submitted, the board may determine that 26 the applicant is not in compliance with the certificate of 27 franchise authority and may revoke the certificate, in which 28 case the franchise agreement previously in effect between 29 an incumbent cable provider and the municipality shall be 30 reinstated and honored by the incumbent. If the franchise 31 agreement with the incumbent cable provider has expired, the 32 franchise agreement previously in effect shall continue in 33 effect until a new franchise agreement between the incumbent 34 cable provider and the municipality is negotiated. 35 -3- LSB 5662SV (3) 83 rn/rj 3/ 6

S.F. 2324 7. In the event that an applicant granted a certificate 1 of franchise authority subsequently ceases to engage in 2 construction or operation of a cable system or video service 3 network and is no longer providing service, the applicant 4 shall notify the municipality and the board on the date that 5 construction or service is terminated, in which case the 6 franchise agreement previously in effect between an incumbent 7 cable provider and the municipality shall be reinstated and 8 honored by the incumbent. If the franchise agreement with the 9 incumbent cable provider has expired, the franchise agreement 10 previously in effect shall continue in effect until a new 11 franchise agreement between the incumbent cable provider and 12 the municipality is negotiated. 13 4. 8. A certificate of franchise authority issued by 14 the board is fully transferable to any successor of the 15 applicant to which the certificate was initially issued. 16 A notice of transfer shall be filed by the holder of the 17 certificate of franchise authority with the board and 18 the affected municipality and shall be effective fourteen 19 business days after submission. The notice of transfer shall 20 include the address of the successor’s principal place of 21 business and the names of the successor’s principal executive 22 officers. The successor shall assume all regulatory rights and 23 responsibilities of the holder of the certificate. Neither 24 the board nor an affected municipality shall have authority to 25 review or require approval of such transfer. 26 5. 9. The certificate of franchise authority issued by the 27 board may be terminated by a person providing cable service or 28 video service by submitting written notice to the board and 29 any affected municipality. Neither the board nor an affected 30 municipality shall have authority to review or require approval 31 of such termination. 32 6. 10. The board shall only have the authorization to 33 issue a certificate of franchise authority as provided in this 34 section, and shall not impose any additional requirements or 35 -4- LSB 5662SV (3) 83 rn/rj 4/ 6

S.F. 2324 regulations upon an applicant. 1 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 EXPLANATION 4 This bill modifies provisions relating to franchises for the 5 provision of cable service or video service. 6 The bill makes several changes to requirements concerning 7 providing notice of an intent to offer cable services or 8 video services, contents of applications to the utilities 9 board within the department of commerce for the issuance of a 10 certificate of franchise authority for the provision of such 11 services, and certificate issuance procedures. 12 The bill provides that a copy of the notice which a 13 competitive cable service provider or competitive video service 14 provider is required to provide to each municipality with 15 authority to grant a franchise in the service area, and to the 16 service area’s incumbent cable provider, regarding an intent 17 to provide services in the service area must be filed with 18 the utilities board on the date that the notice is provided. 19 A requirement that the board issue a certificate within 15 20 business days is modified in the bill to 30 business days. 21 The bill adds to information requirements to be included 22 in an application and affidavit for a franchise, submission 23 of documentation that the applicant possesses sufficient 24 managerial, technical, and financial capability to provide 25 the cable service or video service proposed, copies of 26 advertisements or news releases announcing the applicant’s 27 intent to provide cable service or video service in the service 28 area intended for release if the certificate is granted, and a 29 schedule of dates by which the applicant intends to commence 30 operation. The bill provides that these requirements must 31 be fully satisfied prior to issuance of a certificate. The 32 bill additionally requires an applicant for a certificate to 33 provide notice to each municipality with authority to grant a 34 franchise in the service area on the date that the application 35 -5- LSB 5662SV (3) 83 rn/rj 5/ 6

S.F. 2324 is submitted that the applicant has submitted an application 1 to the utilities board. 2 The bill addresses circumstances in which an applicant who 3 is granted a certificate of franchise authority subsequently 4 fails to complete construction and commence operation within a 5 one-year period, or terminates construction and operation at 6 a subsequent point and no longer provides service. The bill 7 provides that failure to complete construction and commence 8 operation within one year from the granting of the franchise 9 may constitute noncompliance with the certificate, resulting in 10 possible revocation of the certificate by the board. In this 11 event, the bill states that a franchise agreement previously 12 in effect between the municipality and an incumbent cable 13 provider shall be reinstated, and renegotiated if expired. If 14 construction or operation ceases or service is terminated, the 15 bill requires an applicant to notify the municipality and the 16 board on the date that construction or services are terminated, 17 and the reinstatement and renegotiation provisions previously 18 described with an incumbent cable provider shall apply. 19 The bill takes effect upon enactment. 20 -6- LSB 5662SV (3) 83 rn/rj 6/ 6