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Satellite Services Bill

DM
Daniel McClure
Mon, May 16, 2022 3:52 PM

Hello Attorneys,

The bill below has been sneaking through the legislature it was dropped in an unrelated bill. It modifies the definition of “video services” to include “broadband satellite service”. I am concerned this will limit future revenue  streams by circumventing the “rental payment” authorized in 11 O.S. 2021, Section 22-107.1.  I am also concerned we may have ROW issues like we did when the big roll out of federal funds for broadband occurred. Passing it along to get your input/feedback because you all are the smart folks 😊 It will have to move in the next few days and the satellite folks are flying in lobbyists this evening. Gotta’ love politics. (amendment highlighted towards the end.)

Thanks,

Daniel

       Bill Number: OK58RSB  573



       HOUSE AMENDED SENATE BILL







                            ENGROSSED HOUSE AMENDMENT

1                                        TO

2          ENGROSSED SENATE BILL NO. 573  By:    Montgomery of the Senate

3                                          and

4            Martinez of the House

5              An Act relating to cities and towns; creating the

6              Oklahoma Electrical Access and Resiliency Task Force;

7              providing for membership of task force; providing

8              purpose; requiring task force to make recommendations

9              for energy use; requiring submission of report to

10              certain persons by certain date; providing for cease

11              of operations of task force; providing for

12              codification; providing an effective date; and

13              declaring an emergency.

14        AMENDMENT NO. 1.  Strike the title, enacting clause, and entire bill

15        and insert:

16        "An Act relating to powers of municipalities;

17        amending 11 O.S. 2021, Section 22-107.1, which

18        relates to regulation of video services systems;

19        modifying definition; and providing an effective

20        date.

21        BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

22            SECTION 1.    AMENDATORY    11 O.S. 2021, Section 22-107.1, is

23        amended to read as follows:

24            Section 22-107.1  A.  A municipality may by ordinance or

                                     1

1        otherwise grant a certificate, license, permit or franchise for the

2        operation of a video services system, unless such authority is

3        already provided for by law.  Any certificate, license, permit or

4        franchise granted pursuant to this section shall constitute a

5        bargained contract between the municipality and the video services

6        provider and shall provide for a consideration payment to the

7        municipality as rental for the privileges granted to the provider to

8        use the public ways and grounds within the municipality in

9        furtherance of its video services business.  The rental payment

10        shall be set at the amount bargained between the municipality and

11        the video services provider but shall not exceed five percent (5%)

12        of the annual gross revenues derived by the video services provider

13        from the provision of video services within the municipality.  Any

14        certificate, license, permit or franchise issued by the governing

15        body shall be nonexclusive and shall not exceed a period of twenty-

16        five (25) years and may be revocable by the governing body if said

17        body determines that the holder of the certificate, license, permit

18        or franchise has willfully failed or neglected to perform duties

19        pursuant to the terms of the grant of the certificate, license,

20        permit or franchise.  Nothing herein shall limit the authority of a

21        municipality to comply with state or federal law.

22            B.  In the event a municipality grants an overlapping

23        certificate, license, permit or franchise for video services within

24        its jurisdiction on terms or conditions more favorable or less

25        burdensome than those in any existing certificate, license, permit

26        or franchise within the municipality the holder of the existing

27        certificate, license, permit or franchise shall be entitled, upon

                                     2

1        written notice to the municipality, to adopt the terms in the

2        overlapping certificate, license, permit or franchise that are more

3        favorable or less burdensome than those in the existing certificate,

4        license, permit or franchise and the adopted terms shall become

5        enforceable by the municipality.

6            C.  In addition to any other authority granted to municipalities

7        by this section or other applicable law, a municipality may also

8        adopt an ordinance regulating a video services system pursuant to

9        its police power.  No municipal provisions regulating a video

10        services system may be adopted which are inconsistent with either

11        state or federal law or with the terms and conditions of the

12        certificate, license, permit or franchise bargained by the

13        municipality and the video services provider.

14            D.  In awarding or renewing a certificate, license, permit or

15        franchise for video services, a municipality may require adequate

16        assurance that the video services system provider will provide

17        adequate public, educational, and governmental access channel

18        capacity, facilities or financial support.  A video services system

19        provider may, at its sole option, provide a "family friendly" tier

20        of video services in lieu of channel capacity, facilities, or

21        financial support for public access as a condition of any

22        certificate, license, permit or franchise for video services or

23        renewal thereof.  Nothing herein shall affect any channel capacity,

24        facilities, or financial support for educational or governmental

25        access contained in any certificate, license, permit or franchise

26        for video services or renewal thereof.

27            E.  A "family friendly" tier of services is a group of channels,

                                     3

1        offered to customers pursuant to Federal Communications Commission

2        (FCC) regulations, that primarily contains programming with a

3        television viewing rating of TV-Y, TV-Y7 or TV-G.

4            F.  "Video services" means video programming, including cable

5        services, provided through wireline facilities located at least in

6        part in the public rights-of-way without regard to the delivery

7        technology, including Internet protocol technology.  "Video

8        services" shall not include video programming provided [by a]:

9            1.  By a commercial mobile service provider as defined in 47

10        U.S.C., Section 332(d);

11            2.  By a provider of direct broadcast satellite service as

12        defined in 47 U.S.C., Section 335(b)(5)(A);

13            3.  By a provider of digital audiovisual works delivered over

14        the Internet, including streaming content; or [provided solely]

15            4.  Solely as part of and via a service that enables users to

16        access content, information, electronic mail, messaging and other

17        services offered over the public Internet.

18            SECTION 2.  This act shall become effective November 1, 2022."

19            Passed the House of Representatives the 27th day of April, 2022.

20                                                Presiding Officer of the House of

21                                                  Representatives

22            Passed the Senate the ____ day of __________, 2022.

23                                                Presiding Officer of the Senate

24        ENGR. H. A. to ENGR. S. B. NO. 573Page 1

                                     4

Daniel McClure, J.D., M.P.A.
Deputy General Counsel – OK Municipal League
405-528-7515
201 N.E. 23rd St., OKC, OK, 73105
[Oklahoma Municipal League] <oml.org>        [LinkedIn Profile Tips to Improve Your Personal Brand - Business 2 Community] https://www.linkedin.com/in/daniel-mcclure-jr-53097920/

Hello Attorneys, The bill below has been sneaking through the legislature it was dropped in an unrelated bill. It modifies the definition of “video services” to include “broadband satellite service”. I am concerned this will limit future revenue streams by circumventing the “rental payment” authorized in 11 O.S. 2021, Section 22-107.1. I am also concerned we may have ROW issues like we did when the big roll out of federal funds for broadband occurred. Passing it along to get your input/feedback because you all are the smart folks 😊 It will have to move in the next few days and the satellite folks are flying in lobbyists this evening. Gotta’ love politics. (amendment highlighted towards the end.) Thanks, Daniel Bill Number: OK58RSB 573 HOUSE AMENDED SENATE BILL ENGROSSED HOUSE AMENDMENT 1 TO 2 ENGROSSED SENATE BILL NO. 573 By: Montgomery of the Senate 3 and 4 Martinez of the House 5 An Act relating to cities and towns; creating the 6 Oklahoma Electrical Access and Resiliency Task Force; 7 providing for membership of task force; providing 8 purpose; requiring task force to make recommendations 9 for energy use; requiring submission of report to 10 certain persons by certain date; providing for cease 11 of operations of task force; providing for 12 codification; providing an effective date; and 13 declaring an emergency. 14 AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill 15 and insert: 16 "An Act relating to powers of municipalities; 17 amending 11 O.S. 2021, Section 22-107.1, which 18 relates to regulation of video services systems; 19 modifying definition; and providing an effective 20 date. 21 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 22 SECTION 1. AMENDATORY 11 O.S. 2021, Section 22-107.1, is 23 amended to read as follows: 24 Section 22-107.1 A. A municipality may by ordinance or 1 1 otherwise grant a certificate, license, permit or franchise for the 2 operation of a video services system, unless such authority is 3 already provided for by law. Any certificate, license, permit or 4 franchise granted pursuant to this section shall constitute a 5 bargained contract between the municipality and the video services 6 provider and shall provide for a consideration payment to the 7 municipality as rental for the privileges granted to the provider to 8 use the public ways and grounds within the municipality in 9 furtherance of its video services business. The rental payment 10 shall be set at the amount bargained between the municipality and 11 the video services provider but shall not exceed five percent (5%) 12 of the annual gross revenues derived by the video services provider 13 from the provision of video services within the municipality. Any 14 certificate, license, permit or franchise issued by the governing 15 body shall be nonexclusive and shall not exceed a period of twenty- 16 five (25) years and may be revocable by the governing body if said 17 body determines that the holder of the certificate, license, permit 18 or franchise has willfully failed or neglected to perform duties 19 pursuant to the terms of the grant of the certificate, license, 20 permit or franchise. Nothing herein shall limit the authority of a 21 municipality to comply with state or federal law. 22 B. In the event a municipality grants an overlapping 23 certificate, license, permit or franchise for video services within 24 its jurisdiction on terms or conditions more favorable or less 25 burdensome than those in any existing certificate, license, permit 26 or franchise within the municipality the holder of the existing 27 certificate, license, permit or franchise shall be entitled, upon 2 1 written notice to the municipality, to adopt the terms in the 2 overlapping certificate, license, permit or franchise that are more 3 favorable or less burdensome than those in the existing certificate, 4 license, permit or franchise and the adopted terms shall become 5 enforceable by the municipality. 6 C. In addition to any other authority granted to municipalities 7 by this section or other applicable law, a municipality may also 8 adopt an ordinance regulating a video services system pursuant to 9 its police power. No municipal provisions regulating a video 10 services system may be adopted which are inconsistent with either 11 state or federal law or with the terms and conditions of the 12 certificate, license, permit or franchise bargained by the 13 municipality and the video services provider. 14 D. In awarding or renewing a certificate, license, permit or 15 franchise for video services, a municipality may require adequate 16 assurance that the video services system provider will provide 17 adequate public, educational, and governmental access channel 18 capacity, facilities or financial support. A video services system 19 provider may, at its sole option, provide a "family friendly" tier 20 of video services in lieu of channel capacity, facilities, or 21 financial support for public access as a condition of any 22 certificate, license, permit or franchise for video services or 23 renewal thereof. Nothing herein shall affect any channel capacity, 24 facilities, or financial support for educational or governmental 25 access contained in any certificate, license, permit or franchise 26 for video services or renewal thereof. 27 E. A "family friendly" tier of services is a group of channels, 3 1 offered to customers pursuant to Federal Communications Commission 2 (FCC) regulations, that primarily contains programming with a 3 television viewing rating of TV-Y, TV-Y7 or TV-G. 4 F. "Video services" means video programming, including cable 5 services, provided through wireline facilities located at least in 6 part in the public rights-of-way without regard to the delivery 7 technology, including Internet protocol technology. "Video 8 services" shall not include video programming provided [by a]: 9 1. By a commercial mobile service provider as defined in 47 10 U.S.C., Section 332(d); 11 2. By a provider of direct broadcast satellite service as 12 defined in 47 U.S.C., Section 335(b)(5)(A); 13 3. By a provider of digital audiovisual works delivered over 14 the Internet, including streaming content; or [provided solely] 15 4. Solely as part of and via a service that enables users to 16 access content, information, electronic mail, messaging and other 17 services offered over the public Internet. 18 SECTION 2. This act shall become effective November 1, 2022." 19 Passed the House of Representatives the 27th day of April, 2022. 20 Presiding Officer of the House of 21 Representatives 22 Passed the Senate the ____ day of __________, 2022. 23 Presiding Officer of the Senate 24 ENGR. H. A. to ENGR. S. B. NO. 573Page 1 4 Daniel McClure, J.D., M.P.A. Deputy General Counsel – OK Municipal League 405-528-7515 201 N.E. 23rd St., OKC, OK, 73105 [Oklahoma Municipal League] <oml.org> [LinkedIn Profile Tips to Improve Your Personal Brand - Business 2 Community] <https://www.linkedin.com/in/daniel-mcclure-jr-53097920/>