Senate Study Bill 1049 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON DANDEKAR) A BILL FOR An Act relating to the provision of telecommunications services 1 to multiple-unit residential buildings or complexes. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1644XC (3) 84 rn/nh
S.F. _____ Section 1. NEW SECTION . 477.15 Definitions. 1 1. For purposes of this section, unless the context 2 otherwise requires: 3 a. “Manufactured home community” and “mobile home park” mean 4 the same as defined in section 562B.7. 5 b. “Multiple-unit residential building or complex” means 6 a building or complex utilized for residential purposes and 7 consisting of at least two or more individual dwelling units, 8 or a manufactured home community or mobile home park, whether 9 leased or owned. 10 c. “Residential agent” means the property owner, manager, 11 lessee, or other person in possession or control of a 12 multiple-unit residential building or complex. 13 d. “Telecommunications provider” means a person, firm, or 14 corporation providing telecommunications service pursuant to a 15 cable or video service franchise granted pursuant to chapter 16 477A or chapter 364, a certificate of public convenience and 17 necessity issued pursuant to section 476.29, or as authorized 18 by a municipality which provides telecommunications service 19 directly to its residents. 20 e. “Telecommunications service” means the provision of 21 cable service or video service as defined in section 477A.1, 22 high-speed internet service, or telephone service whether by 23 coaxial cable, fiber optic line, or copper telephone line. 24 2. A residential agent of a multiple-unit residential 25 building or complex located within the service area in which 26 a telecommunications provider is authorized to provide 27 telecommunications service shall be subject to the following: 28 a. The residential agent shall not preclude or prevent 29 an occupant, tenant, or lessee of the building or complex 30 from receiving telecommunications service from a particular 31 telecommunications provider or municipality, demand or 32 accept payment from any occupant, tenant, or lessee in 33 any form as a condition of permitting the installation of 34 telecommunications service equipment or facilities or the 35 -1- LSB 1644XC (3) 84 rn/nh 1/ 9
S.F. _____ maintenance of such equipment or facilities on the premises 1 of the building or complex, or discriminate in rental charges 2 or in any other manner against an occupant, tenant, or lessee 3 receiving telecommunications services from a particular 4 telecommunications provider or municipality. 5 b. The residential agent shall not preclude or prevent a 6 telecommunications provider from entering upon the premises of 7 a multiple-unit residential building or complex for the purpose 8 of or in connection with the construction or installation 9 of telecommunications service equipment or facilities; 10 or constructing or installing upon, beneath, or over the 11 premises, including any buildings or other structures located 12 thereon, hardware, cable, equipment, materials, or other 13 telecommunications service equipment or facilities utilized 14 by the telecommunications provider in the construction or 15 installation of telecommunications service. 16 3. A telecommunications provider shall not install 17 telecommunications service equipment or facilities on the 18 premises of a multiple-unit residential building or complex 19 unless an occupant, tenant, or lessee of the building or 20 complex requests the delivery of telecommunications service. 21 In any instance in which a request for service is made, the 22 telecommunications provider may install telecommunications 23 service equipment or facilities throughout the building or 24 complex in a manner which enables the telecommunications 25 provider to provide telecommunications service to occupants, 26 tenants, or lessees of other residential units within the 27 building or complex without requiring the installation of 28 additional equipment or facilities other than within the 29 residential units occupied by such other occupants, tenants, 30 or lessees. 31 4. a. A telecommunications provider may remit reasonable 32 compensation to a residential agent for marketing support or 33 for a right of entry for the installation of telecommunications 34 service equipment or facilities, or the provision of 35 -2- LSB 1644XC (3) 84 rn/nh 2/ 9
S.F. _____ telecommunications service, as follows: 1 (1) Pursuant to a compensation agreement initiated by the 2 telecommunications provider with a residential agent. 3 (2) At the written request of a residential agent received 4 by a telecommunications provider within twenty days of the 5 date on which the agent is notified of the telecommunications 6 provider’s intention to install telecommunications service 7 equipment or facilities as provided in subsection 5. Unless 8 such a request is received from the residential agent, it 9 shall be conclusively presumed that the agent does not claim 10 or intend to request or require reasonable compensation. 11 The notice shall include the amount requested as reasonable 12 compensation by the agent. 13 b. Compensation received pursuant to this subsection shall 14 not confer an exclusive right of entry with respect to a 15 particular telecommunications provider. If compensation is 16 agreed to, no other payment or compensation shall be requested 17 or received by the residential agent, unless damage is incurred 18 during the course of the installation. A telecommunications 19 provider shall agree to indemnify a residential agent for any 20 damages caused by the installation, operation, or removal of 21 telecommunications service equipment or facilities. 22 5. a. Prior to the installation of telecommunications 23 service equipment or facilities, a telecommunications provider 24 shall notify the residential agent in writing of the intent 25 to proceed with installation. Notification shall include the 26 address of the multiple-unit residential building or complex, 27 the name of the telecommunications provider, the anticipated 28 installation date, and either a proposed amount of reasonable 29 compensation or contact information regarding the twenty-day 30 time frame for compensation notification as provided in 31 subsection 4. 32 b. In any instance in which a telecommunications provider 33 intends to install telecommunications service equipment or 34 facilities within or upon a multiple-unit residential building 35 -3- LSB 1644XC (3) 84 rn/nh 3/ 9
S.F. _____ or complex containing twelve or more residential units, 1 the written notice required pursuant to paragraph “a” shall 2 further acknowledge that the residential agent may require 3 the submission of written plans identifying the manner in 4 which telecommunications equipment and facilities are to be 5 installed, including the proposed location of coaxial cable, 6 fiber optic cable, or copper wire. Approval of such plans 7 by the residential agent, if required by the agent, shall 8 not be unreasonably withheld and consent to and approval 9 of such plans shall be presumed unless, within thirty days 10 following receipt thereof, the residential agent identifies 11 in writing the specific manner in which the plans deviate 12 from generally accepted construction or safety standards and 13 contemporaneously submits an alternative construction plan 14 providing for the installation of telecommunications service 15 equipment or facilities in an economically feasible manner. 16 A telecommunications provider may proceed with the plan 17 originally submitted if an alternative plan is not submitted 18 within thirty days, or if the alternative plan fails to comply 19 with generally accepted construction and safety standards or 20 does not provide for the installation of telecommunications 21 service equipment or facilities in an economically feasible 22 manner. 23 6. a. A residential agent having provided timely written 24 notice of a request for reasonable compensation pursuant to 25 subsection 4, paragraph “a” , subparagraph (2), may assert a 26 claim for such compensation if the agent has not received the 27 compensation within thirty days following receipt of the notice 28 by the telecommunications provider, or the telecommunications 29 provider has not agreed to pay the amount requested or an 30 alternative amount acceptable to the agent within a mutually 31 agreeable time frame. If compensation remains unpaid after 32 sixty days following receipt of the notice, or within the time 33 frame mutually agreed upon, the agent may bring suit to enforce 34 the claim in any court of competent jurisdiction, and, in 35 -4- LSB 1644XC (3) 84 rn/nh 4/ 9
S.F. _____ connection therewith, may require that the amount or reasonable 1 compensation be determined by the court. Any such action shall 2 be commenced within six months of receipt of the notice of a 3 request for reasonable compensation. 4 b. In an action to determine the amount of reasonable 5 compensation, the residential agent may submit evidence of 6 a decrease in the fair market value of the multiple-unit 7 residential building or complex occasioned by the installation 8 of the telecommunications service equipment or facilities, 9 that the agent has a specific alternative use for the space 10 occupied by the telecommunications service equipment or 11 facilities, the loss of which will result in a monetary loss 12 to the owner, or that installation of the telecommunications 13 service equipment or facilities substantially interferes 14 with the use or occupancy of the building or complex. In 15 determining reasonable compensation, the court shall not 16 consider or include potential earnings by a residential agent 17 were the agent to install or provide telecommunications service 18 independently. 19 c. Neither the giving of a notice requesting reasonable 20 compensation pursuant to subsection 4, paragraph “a” , 21 subparagraph (2), nor the assertion of a specific claim or 22 initiation of a legal action to enforce such claim as provided 23 in paragraphs “a” and “b” of this subsection shall delay or 24 impair the right of a telecommunications provider to construct 25 or install telecommunications service equipment or facilities 26 or maintain telecommunications service with respect to a 27 multiple-unit residential building or complex. 28 EXPLANATION 29 This bill concerns the installation of telecommunications 30 service equipment and facilities, and the provision of 31 telecommunications service, to multiple-unit residential 32 buildings or complexes. 33 The bill provides several definitions. The bill defines 34 a “multiple-unit residential building or complex” as a 35 -5- LSB 1644XC (3) 84 rn/nh 5/ 9
S.F. _____ building or complex utilized for residential purposes and 1 consisting of at least two or more individual dwelling 2 units, or a manufactured home community or mobile home park, 3 whether leased or owned. A “residential agent” is defined 4 as the property owner, manager, lessee, or other person in 5 possession or control of a building or complex. The bill 6 defines a “telecommunications provider” as a person, firm, or 7 corporation providing telecommunications service pursuant to 8 a cable or video service franchise granted pursuant to Code 9 chapter 364 or 477A, or pursuant to a certificate of public 10 convenience and necessity issued pursuant to Code section 11 476.29, or as authorized by a municipality which provides 12 telecommunications service directly to its residents. The 13 bill defines “telecommunications service” as the provision of 14 cable service or video service, high-speed internet service, or 15 telephone service. 16 The bill prohibits a residential agent of a multiple-unit 17 residential building or complex from preventing or precluding 18 an occupant, tenant, or lessee of the building or complex 19 from receiving telecommunications service from a particular 20 telecommunications provider or municipality, from demanding or 21 accepting a payment from any occupant, tenant, or lessee as a 22 condition of permitting the installation of telecommunications 23 service equipment or facilities or the maintenance of such 24 equipment or facilities on the premises of the building or 25 complex, or from discriminating in rental charges or in any 26 other manner against an occupant, tenant, or lessee receiving 27 telecommunications services from a particular provider. 28 Additionally, the bill prohibits an agent from precluding or 29 preventing a provider from entering upon the premises of a 30 building or complex for the purpose of or in connection with 31 the construction or installation of telecommunications service 32 equipment or facilities; or constructing or installing upon, 33 beneath, or over the premises, including any buildings or 34 other structures located thereon, hardware, cable, equipment, 35 -6- LSB 1644XC (3) 84 rn/nh 6/ 9
S.F. _____ materials, or other telecommunications service equipment or 1 facilities utilized by the provider in the construction or 2 installation of telecommunications service. 3 The bill states that an occupant, tenant, or lessee of the 4 building or complex must request delivery of telecommunications 5 service prior to an installation of telecommunications service 6 equipment or facilities by a provider, and that if such 7 a request is made, the provider may install equipment or 8 facilities throughout the building or complex in a manner which 9 enables the provider to provide telecommunications service to 10 additional occupants, tenants, or lessees. 11 The bill authorizes the payment of reasonable compensation 12 for marketing support or for a right of entry for the 13 installation of telecommunications service equipment or 14 facilities or the provision of telecommunications service by 15 a provider to an agent, either when initiated by the provider 16 or upon receipt of a written request from the agent. In the 17 latter case, the bill requires the request to be received by 18 the provider within 20 days from the date of notification 19 by the provider to the agent of an intent to install 20 telecommunications service equipment or facilities. The bill 21 provides that absent such a request, it will be presumed that 22 the agent does not intend to request or require reasonable 23 compensation. The bill clarifies that any compensation 24 received shall not confer an exclusive right of entry with 25 respect to a particular telecommunications provider, that no 26 other payment or compensation shall be requested or received 27 by the residential agent unless damage is incurred during 28 the course of the installation, and that the provider shall 29 agree to indemnify an agent for any damages caused by the 30 installation, operation, or removal of telecommunications 31 service equipment or facilities. 32 With regard to the required notification of an intent to 33 install, the bill provides that the notification shall be 34 in writing and shall include the address of the building or 35 -7- LSB 1644XC (3) 84 rn/nh 7/ 9
S.F. _____ complex, the name of the provider, the anticipated installation 1 date, and either a proposed amount of reasonable compensation 2 or contact information regarding the 20-day time frame for 3 requesting compensation. If the installation involves a 4 building or complex containing 12 or more residential units, 5 the bill states that the notice shall acknowledge that the 6 agent may require the submission of written plans identifying 7 the manner in which telecommunications equipment and facilities 8 are to be installed. The bill states that approval of such 9 plans by the agent, if required, shall not be unreasonably 10 withheld and consent to and approval of such plans shall be 11 presumed unless, within 30 days following receipt of the 12 plans, the agent identifies in writing the specific manner in 13 which they deviate from generally accepted construction or 14 safety standards, and unless an alternative plan providing 15 for the installation of telecommunications facilities in an 16 economically feasible manner is submitted by the agent. The 17 bill authorizes a provider to proceed with the plan originally 18 submitted if an alternative plan is not submitted within 30 19 days, or if the alternative plan fails to comply with generally 20 accepted construction and safety standards or does not provide 21 for the installation of telecommunications service equipment or 22 facilities in an economically feasible manner. 23 The bill permits an agent to assert a claim for reasonable 24 compensation if the agent has not received compensation 25 within 30 days following receipt by a provider of a request 26 from an agent, or if the provider has not agreed to pay the 27 amount requested or an alternative amount acceptable to the 28 agent within a mutually agreeable time frame. In the event 29 compensation remains unpaid after 60 days following receipt of 30 the request, or within the time frame mutually agreed upon, the 31 bill authorizes an agent to bring suit to enforce the claim 32 in any court of competent jurisdiction, and to require that 33 the amount of reasonable compensation be determined by the 34 court. The bill specifies that such an action must be brought 35 -8- LSB 1644XC (3) 84 rn/nh 8/ 9
S.F. _____ within six months of receipt of the notice of a request for 1 reasonable compensation. The bill provides that in an action 2 to determine the amount of reasonable compensation, the agent 3 may submit evidence of a decrease in the fair market value 4 caused by the installation of the telecommunications service 5 equipment or facilities, or that the agent has a specific 6 alternative use for the space occupied by the equipment or 7 facilities, the loss of which will result in a monetary loss to 8 the owner, or that installation of the equipment or facilities 9 substantially interferes with the use and occupancy of the 10 building or complex. In determining reasonable compensation, 11 a court is directed not to consider or include potential 12 earnings by an agent in the event the agent installed or 13 provided telecommunications service independently. The bill 14 states that providing notice requesting reasonable compensation 15 or asserting a claim or initiating an action shall not delay 16 or impair the right of a provider to construct or install 17 telecommunications service equipment or facilities or maintain 18 telecommunications service. 19 -9- LSB 1644XC (3) 84 rn/nh 9/ 9