SB429_R1

Senate Bill No. 429–Committee on Commerce and Labor

CHAPTER..........

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:

Section 1. Chapter 711 of NRS is hereby amended by adding

thereto a new section to read as follows:

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

pursuant to NRS 711.175 to sell the services of a community

antenna television system to the general public, the governing

body, and any entity or agency that is directly or indirectly

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

or operate a community antenna television system in any area

outside its territorial boundaries unless it:

(a) Obtains a franchise from the appropriate governing body

pursuant to NRS 711.190 for that portion of the community

antenna television system which it constructs, owns, manages or

operates outside its territorial boundaries; and

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

requirements that apply to a privately held community antenna

television company with regard to that portion of the community

antenna television system which it constructs, owns, manages or

operates outside its territorial boundaries.

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

county or city is authorized pursuant to NRS 711.175 to sell the

services of a community antenna television system to the general

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

directly or indirectly controlled by the county or city, shall not

construct, own, manage or operate a community antenna

television system in any area within its territorial boundaries

which is governed by another governing body and which is served

by one or more privately held community antenna television

companies unless it:

(a) Obtains a franchise from the other governing body

pursuant to NRS 711.190 or enters into an interlocal agreement

with the other governing body;

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

comply with the same requirements that apply to the privately held

community antenna television companies; and

providing the services of the community antenna television system,

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

personal or household use.

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

711.175 1. Except as otherwise provided in subsection 2 and

NRS 318.1192, 318.1193 and 318.1194:

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

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

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

a community antenna television system to the general public.

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

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

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

community antenna television system to the general public.

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

agency that is directly or indirectly controlled by such a county or

city, was selling the services of a community antenna television

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

sell the services of a community antenna television system to the

general public after that date, regardless of the population of the

county or city.

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

711.190 1. Except as otherwise provided in NRS 318.1194:

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

antenna television company for the construction, maintenance and

operation of a community antenna television system which requires

the use of city property or that portion of the city dedicated to public

use for the maintenance of cables or wires underground, on the

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

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

television company for the construction, maintenance and operation

of a community antenna television system which requires the use of

the property of the county or any town in the county or that portion

of the county or town dedicated to public use for the maintenance of

cables or wires underground, on the surface or on poles for the

transmission of a television picture.

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

community antenna television companies to construct, maintain or

operate a community antenna television system in the same area, the

local government shall impose the same terms and conditions on

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

nondiscriminatory manner.

3. A community antenna television company that is granted a

franchise pursuant to this [section] chapter may provide

telecommunications service or interactive computer service without

obtaining a separate franchise from the local government.

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

[section] chapter shall not require the community antenna television

company to place its facilities in ducts or conduits or on poles

owned or leased by the local government.

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

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

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

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

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

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

before the end of the ninth year of the franchise, grant an extension

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

has not substantially complied with the terms and conditions of the

franchise agreement.

6. As used in this section:

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

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

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

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

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

thereto a new section to read as follows:

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

NRS 711.175 to sell video programming services to the general

public over a community antenna television system, the governing

body, and any entity or agency that is directly or indirectly

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

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

than the actual cost of the video programming services or sell a

bundle of services containing such video programming services at

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

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

provision of such video programming services over its community

antenna television system.

may possess by virtue of its status as a government or a

government-owned utility to:

(1) Create a preference or advantage for its community

antenna television system; or

(2) Impose any discriminatory burden on any privately held

community antenna television company.

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

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

and paragraph (c) of subsection 5 of NRS 354.624.

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

remedy and do not abrogate or limit any other action or remedy

that is available to the governing body or a privately held

community antenna television company pursuant to any other

statute or the common law.

4. As used in this section:

(a) “Community antenna television company” has the

meaning ascribed to it in NRS 711.030.

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

ascribed to it in NRS 711.040.

provided over a community antenna television system and which

contain:

(1) Programming provided by a television broadcast

station; or

(2) Programming that is generally considered comparable

to programming provided by a television broadcast station.

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

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

711.175, any two or more political subdivisions of this state,

including , without limitation , counties, incorporated cities and

towns, unincorporated towns, school districts and special districts,

may enter into a cooperative agreement for the performance of any

governmental function. Such an agreement may include the

furnishing or exchange of personnel, equipment, property or

facilities of any kind, or the payment of money.

2. Every such agreement must be by formal resolution or

ordinance of the governing body of each political subdivision

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

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

3. Each participating political subdivision shall provide in its

annual budget for any expense to be incurred under any such

agreement, the money for which is not made available through

grant, gift or other source.

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

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

1. Any power, privilege or authority exercised or capable of

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

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

agency of this state, and jointly with any public agency of any other

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

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

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

exercise all the powers, privileges and authority conferred by NRS

277.080 to 277.180, inclusive, upon a public agency.

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

with one another for joint or cooperative action pursuant to the

provisions of NRS 277.080 to 277.170, inclusive. Those agreements

become effective only upon ratification by appropriate ordinance,

resolution or otherwise pursuant to law on the part of the governing

bodies of the participating public agencies. If it is reasonably

foreseeable that a participating public agency will be required to

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

agreement must be in writing.

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

354.624 1. Each local government shall provide for an annual

audit of all of its financial statements. A local government may

provide for more frequent audits as it deems necessary. Except as

otherwise provided in subsection 2, each annual audit must be

concluded and the report of the audit submitted to the governing

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

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

extension of this time may be granted by the Department of

Taxation to any local government that submits an application for an

extension to the Department. If the local government fails to provide

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

Department of Taxation shall cause the audit to be made at the

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

certified public accountant or by a partnership or professional

corporation that is registered pursuant to chapter 628 of NRS.

2. The annual audit of a school district must:

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

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

close of the fiscal year for which the audit is conducted.

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

include an audit of the expenditure by the school district of public

money used:

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

schools or related facilities;

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

schools or related facilities; and

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

or other real property for purposes related to schools.

3. The governing body may, without requiring competitive

bids, designate the auditor or firm annually. The auditor or firm

must be designated and notification of the auditor or firm designated

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

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

4. Each annual audit must cover the business of the local

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

conducted in accordance with generally accepted auditing standards

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

statutes and regulations and an expression of opinion on the

financial statements. The Department of Taxation shall prescribe the

form of the financial statements, and the chart of accounts must be

as nearly as possible the same as the chart that is used in the

preparation and publication of the annual budget. The report of the

audit must include:

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

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

(b) A comparison of the operations of the local government with

the approved budget, including a statement from the auditor that

indicates whether the governing body has taken action on the audit

report for the prior year [.] ; and

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

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

subsection 1 of section 4 of this act.

5. Each local government shall provide to its auditor:

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

established by the local government is being used expressly for the

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

NRS 354.6241:

(1) An enterprise fund.

(2) An internal service fund.

(3) A fiduciary fund.

(4) A self-insurance fund.

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

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

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

288.028; or

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

designated amount.

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

nonprofit organization pursuant to NRS 244.287 or 268.058.

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

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

of subsection 1 of section 4 of this act.

6. The opinion and findings of the auditor contained in the

report of the audit must be presented at a meeting of the governing

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

Immediately thereafter, the entire report, together with the

management letter required by generally accepted auditing standards

in the United States or by regulations adopted pursuant to NRS

354.594, must be filed as a public record with:

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

(b) The county clerk;

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

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

financial statements of a local government, the auditor shall report

such evidence to the appropriate level of management in the local

government.

8. The governing body shall act upon the recommendations of

the report of the audit within 3 months after receipt of the report,

unless prompter action is required concerning violations of law or

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

recommendations, to adopt them with modifications or to reject

them for reasons shown in the minutes.

Sec. 8. This act becomes effective upon passage and approval.

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