requires two-thirds majority vote (§ 8)                                                                                                                 

                                                                                                  

 

Senate Bill No. 429–Committee on Commerce and Labor

 

March 24, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes relating to high-speed Internet access service, broadband service, video programming service and community antenna television systems. (BDR 58‑1072)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to communication services; prohibiting certain regulations relating to high-speed Internet access service and broadband service; enacting various provisions regulating video programming service provided by certain governmental entities; restricting the powers of certain governmental entities with regard to video programming service; requiring the Public Utilities Commission of Nevada to regulate certain governmental entities that provide video programming service; prohibiting certain governmental entities from providing the services of a community antenna television system; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 704 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  Except as otherwise provided in subsection 2, the

1-4  Commission shall not impose any regulation upon a provider of

1-5  high-speed Internet access service or broadband service in its

1-6  provision of the service.

1-7  2.  The provisions of subsection 1 do not:

2-1  (a) Limit or modify the duties of an incumbent local exchange

2-2  carrier or an affiliate of an incumbent local exchange carrier to

2-3  provide unbundled access to network elements to the extent

2-4  required under 47 U.S.C. §§ 251 and 252, and 47 C.F.R. § 51.319

2-5  or any successor regulations issued by the Federal

2-6  Communications Commission, at rates determined in accordance

2-7  with the standards established by the Federal Communications

2-8  Commission pursuant to 47 C.F.R. §§ 51.503 to 51.513, inclusive,

2-9  or any successor regulations; or

2-10      (b) Prohibit the Commission from:

2-11          (1) Considering any revenues, costs and expenses that a

2-12  public utility derives from providing a high-speed Internet access

2-13  service or broadband service, if the Commission is determining the

2-14  rates of the public utility under a general rate application that is

2-15  filed pursuant to subsection 3 of NRS 704.110;

2-16          (2) Acting on a consumer complaint pursuant to NRS

2-17  703.310, if the consumer complaint relates to a high-speed

2-18  Internet access service or broadband service that is provided by a

2-19  public utility; or

2-20          (3) Including any appropriate gross operating revenue that

2-21  a public utility derives from providing a high-speed Internet access

2-22  service or broadband service when the Commission calculates the

2-23  gross operating revenue of the public utility for the purposes of

2-24  levying and collecting the annual assessment in accordance with

2-25  the provisions of NRS 704.033.

2-26      3.  As used in this section:

2-27      (a) “Affiliate of an incumbent local exchange carrier” or

2-28  “affiliate” means a competitive provider of telecommunication

2-29  service that is controlled by or under common control with an

2-30  incumbent local exchange carrier to the extent the competitive

2-31  provider of telecommunication service is doing business within

2-32  any service territory in which its affiliated incumbent local

2-33  exchange carrier has been designated by the Commission as the

2-34  provider of last resort of basic service.

2-35      (b) “High-speed Internet access service” or “broadband

2-36  service” means any services and underlying facilities that provide

2-37  access, or enable users to access, and transmit information to and

2-38  from, the Internet, and any services and underlying facilities that

2-39  are capable of transmitting information, at a rate that exceeds 150

2-40  kilobits per second in at least one direction, regardless of the

2-41  technology or medium used, including, but not limited to, wireless,

2-42  copper wire, fiber optic cable or coaxial cable, to provide that

2-43  service.

2-44      (c) “Incumbent local exchange carrier” has the meaning

2-45  ascribed to it in NRS 704.68932.

3-1  Sec. 2.  Chapter 711 of NRS is hereby amended by adding

3-2  thereto the provisions set forth as sections 3 to 9, inclusive, of this

3-3  act.

3-4  Sec. 3.  “Commission” means the Public Utilities

3-5  Commission of Nevada.

3-6  Sec. 4.  As used in sections 4 to 9, inclusive, of this act, unless

3-7  the context otherwise requires, the words and terms defined in

3-8  sections 5, 6 and 7 of this act have the meanings ascribed to them

3-9  in those sections.

3-10      Sec. 5.  “County” means a county whose population is less

3-11  than 30,000.

3-12      Sec. 6.  “Privately operated video programming system” or

3-13  “private system” means a community antenna television system,

3-14  an open video system or any other system which is capable of

3-15  providing video programming service to one or more subscribers,

3-16  whether or not the video programming service is unbundled or

3-17  bundled with other services, if the system is owned, operated or

3-18  managed by a private entity.

3-19      Sec. 7.  “Publicly operated video programming system” or

3-20  “public system” means a community antenna television system, an

3-21  open video system or any other system which is capable of

3-22  providing video programming service to one or more subscribers,

3-23  whether or not the video programming service is unbundled or

3-24  bundled with other services, if the system is owned, operated or

3-25  managed by a county or any entity or agency that is controlled,

3-26  directly or indirectly, by a county.

3-27      Sec. 8.  1.  Before a publicly operated video programming

3-28  system may provide video programming service to subscribers in

3-29  the franchise area of a privately operated video programming

3-30  system, the public system must obtain a franchise granted by the

3-31  appropriate governing body having jurisdiction over the area.

3-32      2.  If the public system obtains a franchise and provides video

3-33  programming service to subscribers in the franchise area of the

3-34  private system:

3-35      (a) The public system is subject to the same regulations, terms,

3-36  conditions and requirements that apply to the private system,

3-37  including, without limitation, all requirements to pay taxes and

3-38  fees that are imposed on the private system by governmental

3-39  entities; and

3-40      (b) The county that owns, operates or manages the public

3-41  system must not:

3-42          (1) Appropriate, pledge or use any public money, extend

3-43  any credit, guarantee any loan or otherwise authorize the use of

3-44  any public resources to construct, maintain or operate the public

3-45  system; or

4-1       (2) Use or authorize the use of any right-of-way, property

4-2  or power conferred upon the county to create a preference or

4-3  advantage for the public system or to impose an undue burden

4-4  upon the private system.

4-5  Sec. 9.  1.  Notwithstanding any other provision of law, the

4-6  Commission is given the jurisdiction and power to enforce the

4-7  provisions of sections 4 to 9, inclusive, of this act.

4-8  2.  If a privately operated video programming system files with

4-9  the Commission a complaint which contains a prima facie

4-10  showing that a county or a publicly operated video programming

4-11  system is violating or has violated any provision of sections 4 to 9,

4-12  inclusive, of this act, the Commission shall:

4-13      (a) Issue a temporary order directing the county or the public

4-14  system to cease and desist from committing or repeating the

4-15  violation; and

4-16      (b) Schedule a hearing on the matter.

4-17      3.  If, after conducting the hearing, the Commission

4-18  determines that the county or the public system is violating or has

4-19  violated any provision of sections 4 to 9, inclusive, of this act, the

4-20  Commission shall:

4-21      (a) Issue a permanent order directing the county or the public

4-22  system to cease and desist from committing or repeating the

4-23  violation; and

4-24      (b) Award to the private system all damages that have been

4-25  proximately caused by the violation and all costs incurred by the

4-26  private system to prosecute the complaint, including, without

4-27  limitation, reasonable attorney’s fees.

4-28      4.  The provisions of this section do not create an exclusive

4-29  remedy and do not abrogate or limit any other action or remedy

4-30  that is available to the private system pursuant to any other statute

4-31  or the common law.

4-32      Sec. 10.  NRS 711.020 is hereby amended to read as follows:

4-33      711.020  [The words and phrases] As used in this chapter ,

4-34  unless the context otherwise requires, the words and terms defined

4-35  in NRS 711.030 to 711.074, inclusive, and section 3 of this act

4-36  have the meanings ascribed to them in [NRS 711.030 to 711.074,

4-37  inclusive, unless a different meaning clearly appears in the context.]

4-38  those sections.

4-39      Sec. 11.  NRS 711.030 is hereby amended to read as follows:

4-40      711.030  “Community antenna television company” means any

4-41  person or organization which owns, controls, operates or manages a

4-42  community antenna television system, except that the definition

4-43  does not include:

4-44      1.  A telephone, telegraph or electric utility regulated by the

4-45  [Public Utilities Commission of Nevada] Commission where the

5-1  utility merely leases or rents to a community antenna television

5-2  company wires or cables for the redistribution of television signals

5-3  to or toward subscribers of that company; or

5-4  2.  A telephone or telegraph utility regulated by the [Public

5-5  Utilities Commission of Nevada] Commission where the utility

5-6  merely provides channels of communication under published tariffs

5-7  filed with [that] the Commission to a community antenna television

5-8  company for the redistribution of television signals to or toward

5-9  subscribers of that company.

5-10      Sec. 12.  NRS 711.175 is hereby amended to read as follows:

5-11      711.175  Except as otherwise provided in NRS 318.1192,

5-12  318.1193 and 318.1194:

5-13      1.  [The governing body of a] A county whose population is

5-14  [50,000] 30,000 or more , or any entity or agency that is controlled,

5-15  directly or indirectly, by such a county, shall not sell the services of

5-16  a community antenna television system to the general public.

5-17      2.  [The governing body of a] A city whose population is

5-18  25,000 or more , or any entity or agency that is controlled, directly

5-19  or indirectly, by such a city, shall not sell the services of a

5-20  community antenna television system to the general public.

5-21      Sec. 13.  NRS 711.190 is hereby amended to read as follows:

5-22      711.190  1.  Except as otherwise provided in NRS 318.1194:

5-23      (a) A city [council] may grant a franchise to a community

5-24  antenna television company for the construction, maintenance and

5-25  operation of a community antenna television system which requires

5-26  the use of city property or that portion of the city dedicated to public

5-27  use for the maintenance of cables or wires underground, on the

5-28  surface or on poles for the transmission of a television picture.

5-29      (b) A county may grant a franchise to a community antenna

5-30  television company for the construction, maintenance and operation

5-31  of a community antenna television system which requires the use of

5-32  the property of the county or any town in the county or that portion

5-33  of the county or town dedicated to public use for the maintenance of

5-34  cables or wires underground, on the surface or on poles for the

5-35  transmission of a television picture.

5-36      2.  If a local government grants a franchise to two or more

5-37  community antenna television companies to construct, maintain or

5-38  operate a community antenna television system in the same area, the

5-39  local government shall [impose] :

5-40      (a) Impose the same terms and conditions on each franchise[.] ;

5-41  and

5-42      (b) Administer the terms and conditions in a manner that does

5-43  not discriminate against any of those community antenna

5-44  television companies.

6-1  3.  A community antenna television company that is granted a

6-2  franchise pursuant to this section may provide telecommunications

6-3  service or interactive computer service without obtaining a separate

6-4  franchise from the local government.

6-5  4.  A local government that grants a franchise pursuant to this

6-6  section shall not require the community antenna television company

6-7  to place its facilities in ducts or conduits or on poles owned or

6-8  leased by the local government.

6-9  5.  If a county whose population is 400,000 or more, or an

6-10  incorporated city located in whole or in part within such a county,

6-11  grants a franchise pursuant to this section, the term of the franchise

6-12  must be at least 10 years. If a franchisee notifies such a county or

6-13  city on or before the end of the eighth year of a franchise that it

6-14  wishes to extend the franchise, the county or city shall, on or before

6-15  the end of the ninth year of the franchise, grant an extension of 5

6-16  years on the same terms and conditions, unless the franchisee has

6-17  not substantially complied with the terms and conditions of the

6-18  franchise agreement.

6-19      6.  As used in this section:

6-20      (a) “Interactive computer service” has the meaning ascribed to it

6-21  in 47 U.S.C. § 230(e)(2), as that section existed on July 16, 1997.

6-22      (b) “Telecommunications service” has the meaning ascribed to it

6-23  in 47 U.S.C. § 153(46), as that section existed on July 16, 1997.

6-24      Sec. 14.  NRS 711.240 is hereby amended to read as follows:

6-25      711.240  1.  Except with respect to reasonable promotional

6-26  activities, a person shall not advertise, offer to provide or provide

6-27  any service to subscribers of television services at a rate, including

6-28  any rebate, less than the cost to the company to provide the service

6-29  which is advertised, offered or provided with the intent to:

6-30      (a) Impair fair competition or restrain trade among companies

6-31  which provide services in the same area; or

6-32      (b) Create a monopoly.

6-33      2.  For the purposes of this section, “cost” means the expense of

6-34  doing business , including, without limitation, expenses for labor,

6-35  rent, depreciation, interest, maintenance, delivery of the service,

6-36  franchise fees, taxes, insurance and advertising.

6-37      3.  A community antenna television company may offer any

6-38  telecommunication or related services which are offered in the same

6-39  area by a telephone company, pursuant to chapter 704 of NRS and

6-40  regulations approved by the [Public Utilities Commission of

6-41  Nevada] Commission for providers of similar services. A

6-42  community antenna television company shall obtain a certificate of

6-43  public convenience and necessity pursuant to NRS 704.330 before

6-44  providing telecommunication or related services which are subject

7-1  to regulation by the [Public Utilities Commission of Nevada.]

7-2  Commission.

7-3  4.  A violation of subsection 1 constitutes a prohibited act under

7-4  NRS 598A.060. The Attorney General and any other person may

7-5  exercise the powers conferred by that chapter to prevent, remedy or

7-6  punish such a violation. The provisions of chapter 598A of NRS

7-7  apply to any such violation.

7-8  Sec. 15.  This act becomes effective upon passage and

7-9  approval.

 

7-10  H