REQUIRES TWO-THIRDS MAJORITY VOTE (§ 1 & NRS 711.200)                                                                         exempt

                                                 (Reprinted with amendments adopted on April 21, 2003)

 

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 community antenna television systems and video programming services. (BDR 58‑1072)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

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

 

AN ACT relating to communication services; requiring certain governmental entities that sell the services of a community antenna television system to the general public to comply with certain conditions and limitations relating to the provision of those services; requiring certain governmental entities to demonstrate that they are in compliance with such conditions and limitations under certain circumstances; 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 711 of NRS is hereby amended by adding

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

1-3  1.  If the governing body of a county or city is authorized

1-4  pursuant to NRS 711.175 to sell the services of a community

1-5  antenna television system to the general public, the governing

1-6  body, and any entity or agency that is directly or indirectly

1-7  controlled by the county or city, shall not construct, own, manage

1-8  or operate a community antenna television system in any area

1-9  outside its territorial boundaries unless it:

1-10      (a) Obtains a franchise from the appropriate governing body

1-11  pursuant to NRS 711.190 for that portion of the community

2-1  antenna television system which it constructs, owns, manages or

2-2  operates outside its territorial boundaries; and

2-3  (b) Complies with the same federal, state and local

2-4  requirements that apply to a privately held community antenna

2-5  television company with regard to that portion of the community

2-6  antenna television system which it constructs, owns, manages or

2-7  operates outside its territorial boundaries.

2-8  2.  On and after October 1, 2003, if the governing body of a

2-9  county or city is authorized pursuant to NRS 711.175 to sell the

2-10  services of a community antenna television system to the general

2-11  public, the governing body, and any entity or agency that is

2-12  directly or indirectly controlled by the county or city, shall not

2-13  construct, own, manage or operate a community antenna

2-14  television system in any area within its territorial boundaries

2-15  which is governed by another governing body and which is served

2-16  by one or more privately held community antenna television

2-17  companies unless it:

2-18      (a) Obtains a franchise from the other governing body

2-19  pursuant to NRS 711.190 or enters into an interlocal agreement

2-20  with the other governing body;

2-21      (b) Is required by the franchise or interlocal agreement to

2-22  comply with the same requirements that apply to the privately held

2-23  community antenna television companies; and

2-24      (c) Is prohibited by the franchise or interlocal agreement from

2-25  providing the services of the community antenna television system,

2-26  free of charge, to any governmental officer or employee for his

2-27  personal or household use.

2-28      Sec. 2. NRS 711.175 is hereby amended to read as follows:

2-29      711.175  1.  Except as otherwise provided in subsection 2 and

2-30  NRS 318.1192, 318.1193 and 318.1194:

2-31      [1.] (a) The governing body of a county whose population is

2-32  50,000 or more , and any entity or agency that is directly or

2-33  indirectly controlled by such a county, shall not sell the services of

2-34  a community antenna television system to the general public.

2-35      [2.] (b) The governing body of a city whose population is

2-36  25,000 or more , and any entity or agency that is directly or

2-37  indirectly controlled by such a city, shall not sell the services of a

2-38  community antenna television system to the general public.

2-39      2.  If the governing body of a county or city, or any entity or

2-40  agency that is directly or indirectly controlled by such a county or

2-41  city, was selling the services of a community antenna television

2-42  system to the general public on April 1, 2003, it may continue to

2-43  sell the services of a community antenna television system to the

2-44  general public after that date, regardless of the population of the

2-45  county or city.

3-1  Sec. 3. NRS 711.190 is hereby amended to read as follows:

3-2  711.190  1.  Except as otherwise provided in NRS 318.1194:

3-3  (a) A city [council] may grant a franchise to a community

3-4  antenna television company for the construction, maintenance and

3-5  operation of a community antenna television system which requires

3-6  the use of city property or that portion of the city dedicated to public

3-7  use for the maintenance of cables or wires underground, on the

3-8  surface or on poles for the transmission of a television picture.

3-9  (b) A county may grant a franchise to a community antenna

3-10  television company for the construction, maintenance and operation

3-11  of a community antenna television system which requires the use of

3-12  the property of the county or any town in the county or that portion

3-13  of the county or town dedicated to public use for the maintenance of

3-14  cables or wires underground, on the surface or on poles for the

3-15  transmission of a television picture.

3-16      2.  If a local government grants a franchise to two or more

3-17  community antenna television companies to construct, maintain or

3-18  operate a community antenna television system in the same area, the

3-19  local government shall impose the same terms and conditions on

3-20  each franchise [.] and shall enforce those terms and conditions in a

3-21  nondiscriminatory manner.

3-22      3.  A community antenna television company that is granted a

3-23  franchise pursuant to this [section] chapter may provide

3-24  telecommunications service or interactive computer service without

3-25  obtaining a separate franchise from the local government.

3-26      4.  A local government that grants a franchise pursuant to this

3-27  [section] chapter shall not require the community antenna television

3-28  company to place its facilities in ducts or conduits or on poles

3-29  owned or leased by the local government.

3-30      5.  If a county whose population is 400,000 or more, or an

3-31  incorporated city located in whole or in part within such a county,

3-32  grants a franchise pursuant to this [section,] chapter, the term of the

3-33  franchise must be at least 10 years. If a franchisee notifies such a

3-34  county or city on or before the end of the eighth year of a franchise

3-35  that it wishes to extend the franchise, the county or city shall, on or

3-36  before the end of the ninth year of the franchise, grant an extension

3-37  of 5 years on the same terms and conditions, unless the franchisee

3-38  has not substantially complied with the terms and conditions of the

3-39  franchise agreement.

3-40      6.  As used in this section:

3-41      (a) “Interactive computer service” has the meaning ascribed to it

3-42  in 47 U.S.C. § 230(e)(2), as that section existed on July 16, 1997.

3-43      (b) “Telecommunications service” has the meaning ascribed to it

3-44  in 47 U.S.C. § 153(46), as that section existed on July 16, 1997.

4-1  Sec. 4. Chapter 244 of NRS is hereby amended by adding

4-2  thereto a new section to read as follows:

4-3  1.  If the governing body of a county is authorized pursuant to

4-4  NRS 711.175 to sell video programming services to the general

4-5  public over a community antenna television system, the governing

4-6  body, and any entity or agency that is directly or indirectly

4-7  controlled by the county, shall not do any of the following:

4-8  (a) Sell such video programming services at a price that is less

4-9  than the actual cost of the video programming services or sell a

4-10  bundle of services containing such video programming services at

4-11  a price that is less than the actual cost of the bundle of services.

4-12      (b) Use any money from the county general fund for the

4-13  provision of such video programming services over its community

4-14  antenna television system.

4-15      (c) Use its rights-of-way, its property or any special power it

4-16  may possess by virtue of its status as a government or a

4-17  government-owned utility to:

4-18          (1) Create a preference or advantage for its community

4-19  antenna television system; or

4-20          (2) Impose any discriminatory burden on any privately held

4-21  community antenna television company.

4-22      2.  The provisions of this section must be enforced in the

4-23  manner set forth in paragraph (c) of subsection 4 of NRS 354.624

4-24  and paragraph (c) of subsection 5 of NRS 354.624.

4-25      3.  The provisions of this section do not create an exclusive

4-26  remedy and do not abrogate or limit any other action or remedy

4-27  that is available to the governing body or a privately held

4-28  community antenna television company pursuant to any other

4-29  statute or the common law.

4-30      4.  As used in this section:

4-31      (a) “Community antenna television company” has the

4-32  meaning ascribed to it in NRS 711.030.

4-33      (b) “Community antenna television system” has the meaning

4-34  ascribed to it in NRS 711.040.

4-35      (c) “Video programming services” means services which are

4-36  provided over a community antenna television system and which

4-37  contain:

4-38          (1) Programming provided by a television broadcast

4-39  station; or

4-40          (2) Programming that is generally considered comparable

4-41  to programming provided by a television broadcast station.

4-42      Sec. 5. NRS 277.045 is hereby amended to read as follows:

4-43      277.045  1.  Except as limited by NRS 280.105 [,] and

4-44  711.175, any two or more political subdivisions of this state,

4-45  including , without limitation , counties, incorporated cities and

5-1  towns, unincorporated towns, school districts and special districts,

5-2  may enter into a cooperative agreement for the performance of any

5-3  governmental function. Such an agreement may include the

5-4  furnishing or exchange of personnel, equipment, property or

5-5  facilities of any kind, or the payment of money.

5-6  2.  Every such agreement must be by formal resolution or

5-7  ordinance of the governing body of each political subdivision

5-8  included, and must be spread at large upon the minutes, or attached

5-9  in full thereto as an exhibit, of each governing body.

5-10      3.  Each participating political subdivision shall provide in its

5-11  annual budget for any expense to be incurred under any such

5-12  agreement, the money for which is not made available through

5-13  grant, gift or other source.

5-14      Sec. 6. NRS 277.110 is hereby amended to read as follows:

5-15      277.110  Except as limited by NRS 280.105 [:] and 711.175:

5-16      1.  Any power, privilege or authority exercised or capable of

5-17  exercise by a public agency of this state, including, but not limited

5-18  to, law enforcement, may be exercised jointly with any other public

5-19  agency of this state, and jointly with any public agency of any other

5-20  state or of the United States to the extent that the laws of such other

5-21  state or of the United States permit such joint exercise. Any agency

5-22  of this state when acting jointly with any other public agency may

5-23  exercise all the powers, privileges and authority conferred by NRS

5-24  277.080 to 277.180, inclusive, upon a public agency.

5-25      2.  Any two or more public agencies may enter into agreements

5-26  with one another for joint or cooperative action pursuant to the

5-27  provisions of NRS 277.080 to 277.170, inclusive. Those agreements

5-28  become effective only upon ratification by appropriate ordinance,

5-29  resolution or otherwise pursuant to law on the part of the governing

5-30  bodies of the participating public agencies. If it is reasonably

5-31  foreseeable that a participating public agency will be required to

5-32  expend $2,000 or more to carry out such an agreement, the

5-33  agreement must be in writing.

5-34      Sec. 7. NRS 354.624 is hereby amended to read as follows:

5-35      354.624  1.  Each local government shall provide for an annual

5-36  audit of all of its financial statements. A local government may

5-37  provide for more frequent audits as it deems necessary. Except as

5-38  otherwise provided in subsection 2, each annual audit must be

5-39  concluded and the report of the audit submitted to the governing

5-40  body as provided in subsection 6 not later than 5 months after the

5-41  close of the fiscal year for which the audit is conducted. An

5-42  extension of this time may be granted by the Department of

5-43  Taxation to any local government that submits an application for an

5-44  extension to the Department. If the local government fails to provide

5-45  for an audit in accordance with the provisions of this section, the

6-1  Department of Taxation shall cause the audit to be made at the

6-2  expense of the local government. All audits must be conducted by a

6-3  certified public accountant or by a partnership or professional

6-4  corporation that is registered pursuant to chapter 628 of NRS.

6-5  2.  The annual audit of a school district must:

6-6  (a) Be concluded and the report submitted to the board of

6-7  trustees as provided in subsection 6 not later than 4 months after the

6-8  close of the fiscal year for which the audit is conducted.

6-9  (b) If the school district has more than 150,000 pupils enrolled,

6-10  include an audit of the expenditure by the school district of public

6-11  money used:

6-12          (1) To design, construct or purchase new buildings for

6-13  schools or related facilities;

6-14          (2) To enlarge, remodel or renovate existing buildings for

6-15  schools or related facilities; and

6-16          (3) To acquire sites for building schools or related facilities,

6-17  or other real property for purposes related to schools.

6-18      3.  The governing body may, without requiring competitive

6-19  bids, designate the auditor or firm annually. The auditor or firm

6-20  must be designated and notification of the auditor or firm designated

6-21  must be sent to the Department of Taxation not later than 3 months

6-22  before the close of the fiscal year for which the audit is to be made.

6-23      4.  Each annual audit must cover the business of the local

6-24  government during the full fiscal year. It must be a financial audit

6-25  conducted in accordance with generally accepted auditing standards

6-26  in the United States, including [,] findings on compliance with

6-27  statutes and regulations and an expression of opinion on the

6-28  financial statements. The Department of Taxation shall prescribe the

6-29  form of the financial statements, and the chart of accounts must be

6-30  as nearly as possible the same as the chart that is used in the

6-31  preparation and publication of the annual budget. The report of the

6-32  audit must include:

6-33      (a) A schedule of all fees imposed by the local government

6-34  which were subject to the provisions of NRS 354.5989; [and]

6-35      (b) A comparison of the operations of the local government with

6-36  the approved budget, including a statement from the auditor that

6-37  indicates whether the governing body has taken action on the audit

6-38  report for the prior year [.] ; and

6-39      (c) If the local government is subject to the provisions of

6-40  section 4 of this act, a report showing that the local government is

6-41  in compliance with the provisions of paragraphs (a) and (b) of

6-42  subsection 1 of section 4 of this act.

6-43      5.  Each local government shall provide to its auditor:

6-44      (a) A statement indicating whether each of the following funds

6-45  established by the local government is being used expressly for the

7-1  purposes for which it was created, in the form required by

7-2  NRS 354.6241:

7-3       (1) An enterprise fund.

7-4       (2) An internal service fund.

7-5       (3) A fiduciary fund.

7-6       (4) A self-insurance fund.

7-7       (5) A fund whose balance is required by law to be:

7-8           (I) Used only for a specific purpose other than the

7-9  payment of compensation to a bargaining unit, as defined in NRS

7-10  288.028; or

7-11             (II) Carried forward to the succeeding fiscal year in any

7-12  designated amount.

7-13      (b) A list and description of any property conveyed to a

7-14  nonprofit organization pursuant to NRS 244.287 or 268.058.

7-15      (c) If the local government is subject to the provisions of

7-16  section 4 of this act, a declaration indicating that the local

7-17  government is in compliance with the provisions of paragraph (c)

7-18  of subsection 1 of section 4 of this act.

7-19      6.  The opinion and findings of the auditor contained in the

7-20  report of the audit must be presented at a meeting of the governing

7-21  body held not more than 30 days after the report is submitted to it.

7-22  Immediately thereafter, the entire report, together with the

7-23  management letter required by generally accepted auditing standards

7-24  in the United States or by regulations adopted pursuant to NRS

7-25  354.594, must be filed as a public record with:

7-26      (a) The clerk or secretary of the governing body;

7-27      (b) The county clerk;

7-28      (c) The Department of Taxation; and

7-29      (d) In the case of a school district, the Department of Education.

7-30      7.  If an auditor finds evidence of fraud or dishonesty in the

7-31  financial statements of a local government, the auditor shall report

7-32  such evidence to the appropriate level of management in the local

7-33  government.

7-34      8.  The governing body shall act upon the recommendations of

7-35  the report of the audit within 3 months after receipt of the report,

7-36  unless prompter action is required concerning violations of law or

7-37  regulation, by setting forth in its minutes its intention to adopt the

7-38  recommendations, to adopt them with modifications or to reject

7-39  them for reasons shown in the minutes.

7-40      Sec. 8.  This act becomes effective upon passage and approval.

 

7-41  H