71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1394
A-Engrossed
House Bill 2680
Ordered by the House March 2
Including House Amendments dated March 2
Sponsored by Representative WITT (at the request of Oregon Cable
Telecommunications Association, Oregon Telecommunications
Association, Verizon, Qwest)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Imposes requirements on local governments that provide
telecommunication services to consumers. Requires that local
government providing such services establish and charge prices or
rates that are adequate to pay all direct and indirect costs
incurred by local government in providing services. { + Provides
exemptions under specified circumstances. + }
Requires annual full cost accounting of costs incurred by local
governments in providing specified telecommunication services.
Prohibits local government from paying direct or indirect costs
incurred in providing telecommunication service if costs are not
reflected in accounting.
Prohibits discrimination by local government against private
telecommunication service providers.
Requires three-year cost projection before local government
provides new telecommunication service.
A BILL FOR AN ACT
Relating to telecommunication services provided by local
governments.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Definitions. + } { + As used in sections 1 to
7 of this 2001 Act:
(1) 'Direct costs' means those expenses of a local government
that are directly attributable to the provision of a
telecommunication service and that would not be incurred if the
local government ceased to provide the telecommunication service.
(2) 'Indirect costs' means any expenses of a local government
that are not directly attributable to the provision of a
telecommunication service but that are shared in the provision of
a telecommunication service and one or more other utility
services, or that are shared in the provision of a
telecommunication service and in the performance of other
functions of the local government. 'Indirect costs' includes
shared costs for administration, accounting services, personnel,
purchasing, legal services and other staff or departmental
support.
(3) 'Local government' means a city, county or other political
subdivision of this state.
(4) 'Private provider' means any person, firm, partnership,
corporation or association that offers a telecommunication
service and that is not a local government.
(5) 'Telecommunication service' means providing to the public,
for a fee:
(a) Cable television access; or
(b) Access to the ability to transmit voice, video or data
information chosen by the consumer, to recipients chosen by the
consumer, without change in the form or content of the
information sent and received.
(6) 'Utility service' means the provision of a
telecommunication service to private consumers, the provision of
electricity to private consumers or the provision of natural gas
to private consumers. + }
SECTION 2. { + Minimum prices or rates for telecommunication
services provided by local government. + } { + (1) Except as
provided in subsection (2) of this section, a local government
that provides a telecommunication service to consumers shall
establish and charge prices or rates for the service that are
adequate to pay all direct and indirect costs incurred by the
local government in providing the service.
(2) If a local government proposes to provide a
telecommunication service to an area in which the specific
service to be provided is not already available from a private
provider, the local government shall be exempt from the
requirements of subsection (1) of this section if, before making
the service available, and once every three years thereafter, the
local government does all of the following:
(a) The local government mails notice to all private providers
that are providing a telecommunication service within the
boundaries of the local government, and publishes notice in a
newspaper of general circulation at least once each week for two
weeks. The notice required under this paragraph must inform
private providers that the local government intends to provide a
specific telecommunication service, or is providing the service
under the exemption provided by this subsection. The notice must
indicate that a private provider may file a statement of interest
within 60 days after the notice is mailed to the provider under
this paragraph, or within 60 days after the final publication in
the newspaper is made if the local government does not mail
notice to the private provider under this paragraph.
(b) If any private provider files a statement of interest under
the provisions of paragraph (a) of this subsection, the local
government conducts at least one public hearing on the statement
of interest and makes a record of the nature of the private
provider's interest adequate to allow the local government to
determine whether provision of the telecommunication service by
the local government is in the public interest.
(3) The exemption provided by subsection (2) of this section
does not apply to any telecommunication service provided by a
local government that is substantially different from the service
described in the notice to private providers required by
subsection (2) of this section. + }
SECTION 3. { + Full cost accounting for public
telecommunication services; prohibition on paying any cost not
reflected in accounting. + } { + (1) A local government that
provides a telecommunication service shall prepare an annual
accounting that records the full cost of providing the service,
including all direct and indirect costs. The accounting must be
prepared in accordance with generally accepted governmental
accounting principles.
(2) Accountings prepared by a local government under subsection
(1) of this section shall show the amount and source of capital,
including working capital, utilized in providing the
telecommunication service. In computing the indirect costs of
providing the telecommunication service, the local government
shall include amounts for franchise fees, regulatory fees,
occupation taxes, pole attachment fees and ad valorem property
taxes, calculated in the same manner as such amounts are
calculated for any private provider paying such costs to the
local government in the same service area, even though the local
government does not pay those fees and taxes.
(3) If a local government provides one or more utility services
in addition to the telecommunication service, indirect costs
shall be allocated to the utility services in proportion to the
actual benefit each utility service receives from the moneys
expended.
(4) A local government may not pay any direct or indirect costs
of providing a telecommunication service if those costs are not
reflected in the accounting required by this section.
(5) Nothing in sections 1 to 7 of this 2001 Act precludes a
local government from using capital from any lawful source,
including the general fund of the local government, if the
reasonable cost of the capital is accounted for as a cost of
providing the telecommunication service in the accounting
required by this section. + }
SECTION 4. { + Prohibitions on discrimination by local
government against private providers. + } { + (1) In setting
franchise terms and conditions, conditions of access to public
property and conditions of pole attachment, a local government
may not grant another local government providing
telecommunication services terms and conditions that are more
favorable than the terms and conditions imposed by the local
government upon any private provider providing telecommunication
services within the boundaries of the local government.
(2) A local government that is authorized to grant franchises
may not:
(a) Impose or enforce any ordinance, charter provision or
regulation on any private provider that is not also applicable to
a local government providing telecommunication services;
(b) Unreasonably withhold a request by a private provider to
transfer, modify or renew an existing franchise in accordance
with the terms of the franchise and in accordance with the
provisions of 47 U.S.C. 537, 545 and 546; or
(c) Discriminate in any other way between a local government
providing telecommunication services and a private provider.
(3) In any action by a local government to enforce any term or
condition of a franchise agreement, a private provider may assert
as a defense any violation of this section by the local
government.
(4) Nothing contained in this section limits the authority of a
local government that is authorized to grant franchises to
collect franchise fees, to control and regulate the streets and
public ways within the boundaries of the local government or to
exercise the powers of the local government to provide for the
public health, safety and welfare. + }
SECTION 5. { + Projection of costs of new telecommunication
service. + } { + (1) Before commencing the provision of a
telecommunication service, a local government must prepare a
three-year cost projection that identifies all anticipated direct
and indirect costs of providing the telecommunication service.
The projection must also identify the revenues that the local
government anticipates will be derived from providing the
telecommunication service. The projection must include a
cost-benefit analysis of providing the telecommunication service
over the three-year period. The costs of providing the
telecommunication service must be determined by using generally
accepted governmental accounting principles as described in
section 3 of this 2001 Act.
(2) Before commencing the provision of a telecommunication
service, a local government shall conduct at least one public
hearing. A notice of the time, place and date of the hearing
shall be published in a newspaper of general circulation within
the boundaries of the local government once a week for the two
weeks preceding the week in which the hearing is to be held. + }
SECTION 6. { + Public records; public meetings. + } { + (1)
All records of a local government relating to the provision of a
telecommunication service are subject to ORS 192.410 to 192.505.
(2) All meetings of a local government relating to the
provision of a telecommunication service are subject to ORS
192.610 to 192.690. + }
SECTION 7. { + Exemptions. Sections 1 to 7 of this 2001 Act
do not apply to:
(1) Any library that provides a telecommunication service;
(2) Any telecommunication service provided by a local
government to a department, division or other subdivision of the
local government; or
(3) Any telecommunication service provided by a local
government as part of a 9-1-1 emergency reporting system or other
telecommunications network for police, fire or public safety
purposes. + }
SECTION 8. { + Captions. + } { + The section captions used in
this 2001 Act are provided only for the convenience of the reader
and do not become part of the statutory law of this state or
express any legislative intent in the enactment of this 2001
Act. + }
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