Senate File 2324 - Reprinted SENATE FILE 2324 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SF 2113) (As Amended and Passed by the Senate February 25, 2010 ) A BILL FOR An Act modifying provisions relating to franchises for the 1 provision of cable service or video service, and including 2 effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 SF 2324 (5) 83 rn/rj/jh

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. All notices required by this subsection 15 shall be sent by certified mail. 16 Sec. 2. Section 477A.3, Code 2009, is amended to read as 17 follows: 18 477A.3 Application requirements —— certificate of franchise 19 authority. 20 1. The board shall issue a certificate of franchise 21 authority under this chapter within fifteen thirty business 22 days after receipt of a completed application and affidavit 23 submitted by the applicant and signed by an officer or general 24 partner of the applicant , subject to subsection 3 . The 25 application and affidavit shall provide all of the following 26 information: 27 a. That the applicant has filed or will timely file with 28 the federal communications commission all forms required by 29 the commission in advance of offering cable service or video 30 service in this state. 31 b. That the applicant agrees to comply with all applicable 32 federal and state statutes, regulations, and rules. 33 c. That the applicant agrees to comply with all applicable 34 state laws and nondiscriminatory municipal ordinances and 35 -1- SF 2324 (5) 83 rn/rj/jh 1/ 5

S.F. 2324 regulations regarding the use and occupation of a public 1 right-of-way in the delivery of the cable service or video 2 service, to the extent consistent with this chapter, including 3 the police powers of the municipalities in which the service 4 is delivered. 5 d. A description of the service area to be served and the 6 municipalities to be served by the applicant which may include 7 certain designations of unincorporated areas. This description 8 shall be updated by the applicant prior to the expansion of 9 cable service or video service to a previously undesignated 10 service area and, upon such expansion, notice shall be given to 11 the board of the service area to be served by the applicant. 12 e. The address of the applicant’s principal place of 13 business and the names of the applicant’s principal executive 14 officers. 15 f. Documentation that the applicant possesses sufficient 16 managerial, technical, and financial capability to provide 17 the cable service or video service proposed in the service 18 area. An applicant or its subsidiary which has been issued 19 a certificate of public convenience and necessity to provide 20 telephone service pursuant to section 476.29 shall be exempt 21 from the provisions of this paragraph. 22 g. Copies of advertisements or news releases announcing the 23 applicant’s intent to provide cable service or video service 24 in the service area intended for release if the certificate of 25 franchise authority is granted. 26 h. A schedule of dates by which the applicant intends to 27 commence operation in each municipality proposed to be served 28 within the service area. This schedule shall be timely updated 29 by the applicant as necessary to maintain accuracy. 30 2. In addition to the notice requirements in section 31 477A.2, subsection 4, an applicant shall provide notice to each 32 municipality with authority to grant a franchise in the service 33 area on the date that the application is submitted that the 34 applicant has submitted an application to the board pursuant to 35 -2- SF 2324 (5) 83 rn/rj/jh 2/ 5

S.F. 2324 subsection 1. 1 3. a. The board shall not issue a certificate of franchise 2 authority to an applicant unless the board finds that all 3 of the requirements specified in subsection 1, paragraphs 4 “f” through “h” have been met. 5 b. The board may take up to an additional sixty days, 6 beyond the thirty-day period for issuance of a certificate of 7 franchise authority specified in subsection 1, if the board 8 determines that additional information will be required to make 9 a determination regarding whether the requirements specified in 10 subsection 1, paragraphs “f” through “h” have been met, and that 11 the determination cannot be made within the thirty-day period. 12 c. The board may assess an applicant not otherwise paying 13 a fee or assessment to the board for the costs incurred by the 14 board during a review of an application and affidavit under the 15 circumstances described in paragraph “b” , and any additional 16 costs incurred resulting from a contested case proceeding 17 requested pursuant to chapter 17A. 18 2. 4. The failure of the board to notify the applicant 19 of the completeness of the applicant’s affidavit or 20 issue a certificate of franchise authority before the 21 fifteenth thirtieth business day after receipt of a completed 22 affidavit shall constitute issuance of the certificate of 23 franchise authority applied for by the applicant without 24 further action by the applicant. 25 3. 5. The certificate of franchise authority issued by the 26 board shall contain all of the following: 27 a. A grant of authority to provide cable service or video 28 service in the service area designated in the application. 29 b. A grant of authority to use and occupy the public 30 right-of-way in the delivery of cable service or video service, 31 subject to the laws of this state, including the police powers 32 of the municipalities in which the service is delivered. 33 c. A statement that the grant of authority provided by the 34 certificate is subject to the lawful operation of the cable 35 -3- SF 2324 (5) 83 rn/rj/jh 3/ 5

S.F. 2324 service or video service by the applicant or the applicant’s 1 successor. 2 d. A statement that the franchise is for a term of ten 3 years, is renewable under the terms of this section, and is 4 nonexclusive. 5 6. a. If the holder of a certificate of franchise authority 6 fails to commence operation of a cable system or video service 7 network within twelve months from the date the application is 8 granted, the board may determine that the applicant is not in 9 compliance with the certificate of franchise authority and may 10 revoke the certificate. 11 b. If a certificate is revoked pursuant to this subsection, 12 and if the franchise agreement previously in effect between 13 an incumbent cable provider and the municipality would have 14 remained in effect for at least a sixty-day period prior 15 to expiration, the previous franchise agreement shall be 16 reinstated for the duration of the previous agreement. The 17 incumbent cable provider shall comply with the terms of the 18 prior franchise agreement within ninety days of notification by 19 the board. This paragraph is applicable to an incumbent cable 20 provider who has not been issued a certificate of franchise 21 authority pursuant to section 477A.2, subsection 6, as of the 22 effective date of this Act. 23 7. a. In the event that an applicant granted a certificate 24 of franchise authority subsequently ceases to engage in 25 construction or operation of a cable system or video service 26 network and is no longer providing service, the applicant 27 shall notify the municipality, the board, and the incumbent 28 cable provider on the date that construction or service is 29 terminated. 30 b. If the franchise agreement previously in effect between 31 an incumbent cable provider and the municipality would have 32 remained in effect for at least a sixty-day period prior 33 to expiration, the previous franchise agreement shall be 34 reinstated for the duration of the previous agreement. The 35 -4- SF 2324 (5) 83 rn/rj/jh 4/ 5

S.F. 2324 incumbent cable provider shall comply with the terms of the 1 prior franchise agreement within ninety days of notification by 2 the applicant. This paragraph is applicable to an incumbent 3 cable provider who has not been issued a certificate of 4 franchise authority pursuant to section 477A.2, subsection 6, 5 as of the effective date of this Act. 6 4. 8. A certificate of franchise authority issued by 7 the board is fully transferable to any successor of the 8 applicant to which the certificate was initially issued. 9 A notice of transfer shall be filed by the holder of the 10 certificate of franchise authority with the board and 11 the affected municipality and shall be effective fourteen 12 business days after submission. The notice of transfer shall 13 include the address of the successor’s principal place of 14 business and the names of the successor’s principal executive 15 officers. The successor shall assume all regulatory rights and 16 responsibilities of the holder of the certificate. Neither 17 the board nor an affected municipality shall have authority to 18 review or require approval of such transfer. 19 5. 9. The certificate of franchise authority issued by the 20 board may be terminated by a person providing cable service or 21 video service by submitting written notice to the board and 22 any affected municipality. Neither the board nor an affected 23 municipality shall have authority to review or require approval 24 of such termination. 25 6. 10. The board shall only have the authorization to 26 issue a certificate of franchise authority as provided in this 27 section, and shall not impose any additional requirements or 28 regulations upon an applicant. 29 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 30 immediate importance, takes effect upon enactment. 31 -5- SF 2324 (5) 83 rn/rj/jh 5/ 5