§ 23-19-203 — Franchising authority - Application for certificate of franchise authority - Modification of service areas - Term of certificate of franchise authority and termination of certificate of franchise authority

(a) After June 30, 2013: (1) A person shall not act as a video service provider within the state unless the person: (A) Is providing video service under a franchise from a political subdivision in effect on March 6, 2013, or a subsequent renewal of the franchise; (B) Elects to: (i) Negotiate a franchise with a political subdivision that establishes the terms and conditions applicable to that person to provide video service within the jurisdictional boundaries of the political subdivision and has been issued a franchise from the political subdivision for such a purpose; or (ii) Adopt the terms and conditions of an existing franchise issued by a political subdivision to an incumbent video service provider providing video service within the same service area and that has been issued a franchise from the political subdivision authorizing the video service provider to provide video services within the political subdivision under the same terms and conditions as the franchise issued to an incumbent video service provider in the political subdivision; or (C) Has been granted a certificate of franchise authority to do business in the state by the Secretary of State as authorized in this subchapter; and (2) A franchise between a political subdivision and a video service provider described in subdivision (a)(1)(A) or subdivision (a)(1)(B) of this section expires on the earlier of: (A) Ten (10) years from the date the franchise was effective; or (B) The original expiration date of the franchise. (b) (1) (A) This subchapter does not prohibit a person from holding a franchise issued by a political subdivision and holding a certificate of franchise authority issued by the Secretary of State for a different service area. (B) Except as permitted under this section, a video service provider shall not hold a franchise issued by a political subdivision and a certificate of franchise authority issued by the Secretary of State for the same service area. (2) An incumbent video service provider may submit an application for a certificate of franchise authority for a service area in which the incumbent video service provider has an existing franchise from a political subdivision for the service area, and upon the granting of a certificate of franchise authority to the incumbent video service provider, the incumbent video service provider's franchise from the political subdivision shall no longer be of any force or effect. (3) In each service area in which an incumbent video service provider provides video service, the incumbent video service provider has sole discretion to determine whether or not to apply for a certificate of franchise authority or continue to provide service under an existing franchise issued by a political subdivision. (c) An applicant seeking a certificate of franchise authority shall: (1) Submit an application to the Secretary of State that provides: (A) The name of the applicant; (B) The address of the applicant's principal place of business in the state; (C) The names of the applicant's principal executive officers; (D) The designated Arkansas representative for the applicant; (E) Identification of the political subdivisions or parts of political subdivisions constituting the service areas in which the applicant intends to provide video service; and (F) The date on which the applicant intends to begin providing video service in the service area described in the application; (2) Provide verification from an officer, general partner, or managing member of the applicant that: (A) The applicant has filed with the Federal Communications Commission the applicable forms needed by the Federal Communications Commission in advance of offering video service in this state; (B) The applicant is legally, financially, and technically qualified to provide video service; and (C) (i) The applicant has and maintains with one (1) or more companies licensed to do business in the state comprehensive general liability insurance coverage and automobile liability insurance coverage. (ii) The insurance policy shall require that the insurance carrier pay on behalf of the applicant, up to a limit of not less than one million dollars ($1,000,000) for bodily or personal injury, death, or property damage or loss as a result of any one (1) occurrence or accident, regardless of the number of persons injured or the number of claimants, arising out of the negligent or otherwise wrongful act or omission of the applicant, or the applicant's employees or agents. (iii) A certificate of automobile liability self-insurance issued to the applicant and maintained under § 27-19-107 satisfies the liability insurance coverage requirements of this subsection; and (3) Submit the filing fee required under § 23-19-204 . (d) Upon receipt of an application for a certificate of franchise authority under this section, the Secretary of State shall: (1) Notify the applicant within thirty (30) days after receipt of the application whether the application needs additional information or is complete; (2) Issue a certificate of franchise authority within fifteen (15) days after the application is complete; and (3) Provide written notice of a certificate of franchise authority within fifteen (15) days after issuance of a certificate of franchise authority to the governing body of each political subdivision located in the service area designated in the application for a certificate of franchise authority. (e) (1) A holder of a certificate of franchise authority may change the boundaries of an existing service area authorized under the certificate of franchise authority by filing written notice of the modification with the Secretary of State with the filing fee required under § 23-19-204 . (2) The boundary modifications are effective on the date the written notice is filed with the Secretary of State. (3) Such modifications shall not extend the term of the certificate of franchise authority as established in subsection (h) of this section. (f) (1) A certificate of franchise authority is transferrable. (2) To transfer a certificate of franchise authority, the successor shall: (A) File an application containing the information required in subsection (c) of this section; and (B) Acknowledge with the Secretary of State that the successor shall provide notice to the political subdivision with jurisdiction concerning the public rights-of-way to be used to undertake operation and maintenance of video facilities under an approved certificate of franchise authority. (3) A notice of transfer is approved once received by the Secretary of State. (g) The holder of a certificate of franchise authority may terminate the certificate of franchise authority by submitting a written notice to the Secretary of State and an affected political subdivision. (h) A certificate of franchise authority is: (1) Nonexclusive; (2) Valid for an initial term of ten (10) years, subject to changes in federal law; and (3) Renewable for additional ten-year periods for video service providers in compliance with the requirements of subsection (c) of this section. (i) To the extent required for the purposes of 47 U.S.C. §§ 521 - 561 , as it existed on January 1, 2013, the state shall constitute the franchising authority for video service providers in the state. (j) The duties of the Secretary of State under this subchapter are ministerial. The Secretary of State shall not condition or limit a certificate of franchise authority by imposing on the holder of a certificate of franchise authority any obligations or requirements that are not authorized by this subchapter.

Legislative History

Added by Act 2013, No. 276,§ 2, eff. 3/6/2013.