Code of Ordinances

of Union County, Illinois.

Ordinance Chapter: Article II - Cable/Video Service Provider Fee and Peg Access Fee

All fees due and pay­ments which are past due shall be gov­erned by ordi­nances adopt­ed by this munic­i­pal­i­ty pur­suant to the Local Gov­ern­ment Tax­pay­ers’ Bill of Rights Act, 50 ILCS 45/1 et seq.

(See 220 ILCS 5/21–801)

(A) Audit Require­ment.  The Coun­ty will noti­fy the hold­er of the require­ments it impos­es on oth­er cable ser­vice or video ser­vice providers to sub­mit to an audit of its books and records.  The hold­er shall com­ply with the same require­ments the Coun­ty impos­es on oth­er cable ser­vice or video ser­vice providers in its juris­dic­tion to audit the holder’s books and records and to recom­pute any amounts deter­mined to be payable under the require­ments of the Coun­ty.  If all local fran­chis­es between the Coun­ty and cable oper­a­tor ter­mi­nate, the audit require­ments shall be those adopt­ed by the Coun­ty pur­suant to the Local Gov­ern­ment Tax­pay­ers’ Bill of Rights Act, 50 ILCS 45/1 et seq. found in Chap­ter 36.  No accep­tance of amounts remit­ted should be con­strued as an accord that the amounts are cor­rect.  (See Chap­ter 36 – Tax­a­tion)

(B) Addi­tion­al Pay­ments.  Any addi­tion­al amount due after an audit shall be paid with­in thir­ty (30) days after the County’s sub­mis­sion of an invoice for the sum.

Noth­ing con­tained in this Arti­cle shall be con­strued to exempt a hold­er from any tax that is or may lat­er be imposed by the Coun­ty, includ­ing any tax that is or may lat­er be required to be paid by or through the hold­er with respect to cable ser­vice or video ser­vice.  A State-issued autho­riza­tion shall not affect any require­ment of the hold­er with respect to pay­ment of the County’s sim­pli­fied munic­i­pal telecom­mu­ni­ca­tions tax or any oth­er tax as it applies to any tele­phone ser­vice pro­vid­ed by the hold­er.  A State-issued autho­riza­tion shall not affect any require­ment of the hold­er with respect to pay­ment of the local unit of government’s 911 or E911 fees, tax­es or charges.

All deter­mi­na­tions and cal­cu­la­tions under this Arti­cle shall be made pur­suant to gen­er­al­ly accept­ed account­ing principles.

(A) PEG Fee Imposed.  A PEG access sup­port fee is here­by imposed on any hold­er pro­vid­ing cable ser­vice or video ser­vice in the Coun­ty in addi­tion to the fee imposed pur­suant to Sec­tion 8–2‑2(B).

(B) Amount of Fee.  The amount of the PEG access sup­port fee imposed here­by shall be one per­cent (1%) of the holder’s gross rev­enues or, if greater, the per­cent­age of gross rev­enues that incum­bent cable oper­a­tors pay to the Coun­ty or its designee for PEG access sup­port in the County.

(C) Pay­ment.  The hold­er shall pay the PEG access sup­port fee to the Coun­ty or to the enti­ty des­ig­nat­ed by the Coun­ty to man­age PEG access.  The holder’s lia­bil­i­ty for the PEG access sup­port fee shall com­mence on the date set forth in Sec­tion 8–2‑2(D).

(D) Pay­ment Due.  The pay­ment of the PEG access sup­port fee shall be due on a quar­ter­ly basis, forty-five (45) days after the close of the cal­en­dar quar­ter.  If mailed, the fee is con­sid­ered paid on the date it is post­marked.  Each pay­ment shall include a state­ment explain­ing the basis for the cal­cu­la­tion of the fee.

(E) Cred­it for Oth­er Pay­ments.  An incum­bent cable oper­a­tor that elects to ter­mi­nate an exist­ing agree­ment pur­suant to 220 ILCS 5/21–301(c) shall pay, at the time they would have been due, all mon­e­tary pay­ments for PEG access that would have been due dur­ing the remain­ing term of the agree­ment had it not been 
ter­mi­nat­ed pur­suant to that sec­tion.  All pay­ments made by an incum­bent cable oper­a­tor pur­suant to the pre­vi­ous sen­tence may be cred­it­ed against the fees that the oper­a­tor owed under Sec­tion 8–2‑3(B).

(A) Fee Imposed.  A fee is here­by imposed on any hold­er pro­vid­ing cable ser­vice or video ser­vice in the County.

(B) Amount of Fee.  The amount of the fee imposed here­by shall be five per­cent (5%) of the holder’s gross revenues.

(C) Notice to the Coun­ty.  The hold­er shall noti­fy the Coun­ty at least ten (10) days pri­or to the date on which the hold­er begins to offer cable ser­vice or video ser­vice in the County.

(D) Holder’s Lia­bil­i­ty.  The hold­er shall be liable for and pay the ser­vice provider fee to the Coun­ty.  The holder’s lia­bil­i­ty for the fee shall com­mence on the first day of the cal­en­dar month fol­low­ing thir­ty (30) days after receipt of the ordi­nance adopt­ing this Arti­cle by the hold­er.  The ordi­nance adopt­ing this Arti­cle shall be sent by mail, postage pre­paid, to the address list­ed on the holder’s appli­ca­tion notice sent pur­suant to 220 ILCS 5/21–401(b)(6) to the County.

(E) Pay­ment Date.  The pay­ment of the ser­vice provider fee shall be due on a quar­ter­ly basis, forty-five (45) days after the close of the cal­en­dar quar­ter.  If mailed, the fee is con­sid­ered paid on the date it is post­marked.  Each pay­ment shall include a state­ment explain­ing the basis for the cal­cu­la­tion of the fee.

(F) Exemp­tion.  The fee here­by imposed does not apply to exist­ing cable ser­vice or video ser­vice providers that have an exist­ing fran­chise agree­ment with the Coun­ty in which a fee is paid.

(G) Cred­it for Oth­er Pay­ments.  An incum­bent cable oper­a­tor that elects to ter­mi­nate an exist­ing agree­ment pur­suant to 220 ILCS 5/21–301(c) with cred­it to pre­paid fran­chise fees under that agree­ment may deduct the amount of such cred­it from the fees that oper­a­tor owes under Sec­tion 116.02(b).

As used in this Arti­cle, the fol­low­ing terms shall have the fol­low­ing meanings:

(A) “Cable Ser­vice” means that term as defined in 47 U.S.C. § 522(6).

(B) “Com­mis­sion” means the Illi­nois Com­merce Com­mis­sion.

(C) “Gross Rev­enues” means all con­sid­er­a­tion of any kind or nature, includ­ing, with­out lim­i­ta­tion, cash, cred­its, prop­er­ty, and in-kind con­tri­bu­tions received by the hold­er for the oper­a­tion of a cable or video sys­tem to pro­vide cable ser­vice or video ser­vice with­in the holder’s cable ser­vice or video ser­vice area with­in the County.

  1. Gross rev­enues shall include the following: 
    • Recur­ring charges for cable or video service.
    • Event-based charges for cable ser­vice or video ser­vice, includ­ing, but not lim­it­ed to, pay-per-view and video-on-demand charges.
    • Rental of set top box­es and oth­er cable ser­vice or video ser­vice equipment.
    • Ser­vice charges relat­ed to the pro­vi­sion of cable ser­vice or video ser­vice, includ­ing but not lim­it­ed to acti­va­tion, instal­la­tion, and repair charges.
    • Admin­is­tra­tive charges relat­ed to the pro­vi­sion of cable ser­vice or video ser­vice, includ­ing but not lim­it­ed to ser­vice order and ser­vice ter­mi­na­tion charges.
    • Late pay­ment fees or charges, insuf­fi­cient funds check charges, and oth­er charges assessed to recov­er the costs of col­lect­ing delin­quent payments.
    • A pro rata por­tion of all rev­enue derived by the hold­er or its affil­i­ates pur­suant to com­pen­sa­tion arrange­ments for adver­tis­ing or for pro­mo­tion or exhi­bi­tion of any prod­ucts or ser­vices derived from the oper­a­tion of the holder’s net­work to pro­vide cable ser­vice or video ser­vice with­in the Coun­ty.  The allo­ca­tion shall be based on the num­ber of sub­scribers in the Coun­ty divid­ed by the total num­ber of sub­scribers in rela­tion to the rel­e­vant region­al or nation­al com­pen­sa­tion arrangement.
    • Com­pen­sa­tion received by the hold­er that is derived from the oper­a­tion of the holder’s net­work to pro­vide cable ser­vice or video ser­vice with respect to com­mis­sions that are received by the hold­er as com­pen­sa­tion for pro­mo­tion or exhi­bi­tion of any prod­ucts or ser­vices on the holder’s net­work, such as a “home shop­ping” or sim­i­lar chan­nel, sub­ject to sub­sec­tion (i).
    • In the case of a cable ser­vice or video ser­vice that is bun­dled or inte­grat­ed func­tion­al­ly with oth­er ser­vices, capa­bil­i­ties, or appli­ca­tions, the por­tion of the holder’s rev­enue attrib­ut­able to the oth­er ser­vices, capa­bil­i­ties, or appli­ca­tions shall be includ­ed in the gross rev­enue unless the hold­er can rea­son­ably iden­ti­fy the divi­sion or exclu­sion of the rev­enue from its books and records that are kept in the reg­u­lar course of business.
    • The ser­vice provider fee per­mit­ted by 220 ILCS 5/21–801(b).
  2. Gross rev­enues do not include any of the following: 
    • Rev­enues not actu­al­ly received, even if billed, such as bad debt, sub­ject to 220 ILCS 5/21–801(c)(1)(vi).
    • Refunds, dis­counts, or oth­er price adjust­ments that reduce the amount of gross rev­enues received by the hold­er of the State-issued autho­riza­tion to the extent the refund, rebate, cred­it, or dis­count is attrib­ut­able to cable ser­vice or video service.
    • Regard­less of whether the ser­vices are bun­dled, pack­aged, or func­tion­al­ly inte­grat­ed with cable ser­vice or video ser­vice, any rev­enues received from ser­vices not clas­si­fied as cable ser­vice or video ser­vice, includ­ing, with­out lim­i­ta­tion, rev­enue received from telecom­mu­ni­ca­tion ser­vices, infor­ma­tion ser­vices, or the pro­vi­sion of direc­to­ry or Inter­net adver­tis­ing, includ­ing yel­low pages, white pages, ban­ner adver­tise­ment, and elec­tron­ic pub­lish­ing or any oth­er rev­enues attrib­uted by the hold­er to non-cable ser­vice or non-video ser­vice in accor­dance with the holder’s books and records and records kept in the reg­u­lar course of busi­ness and any applic­a­ble laws, rules, reg­u­la­tions, stan­dards, or orders.
    • The sale of cable ser­vices or video ser­vices for resale in which the pur­chas­er is required to col­lect the ser­vice provider fee from the purchaser’s sub­scribers to the extent the pur­chas­er cer­ti­fies in writ­ing that it will resell the ser­vice with­in the Coun­ty and pay the fee per­mit­ted by 220 ILCS 5/21–801(b) with respect to the service.
    • Any tax or fee of gen­er­al applic­a­bil­i­ty imposed upon the sub­scribers or the trans­ac­tion by a city, state, fed­er­al, or any oth­er gov­ern­men­tal enti­ty and col­lect­ed by the hold­er of the State-issued autho­riza­tion and required to be remit­ted to the tax­ing enti­ty, includ­ing sales and use taxes.
    • Secu­ri­ty deposits col­lect­ed from subscribers.
    • Amounts paid by sub­scribers to “home shop­ping” or sim­i­lar ven­dors for mer­chan­dise sold through any home shop­ping chan­nel offered as part of the cable ser­vice or video service.
  3. Rev­enue of an affil­i­ate of a hold­er shall be includ­ed in the cal­cu­la­tion of gross rev­enues to the extent the treat­ment of the rev­enue as rev­enue of the affil­i­ate rather than the hold­er has the effect of evad­ing the pay­ment of the fee per­mit­ted by 220 ILCS 5/21–801(b) which would oth­er­wise be paid by the cable ser­vice or video service.

(D) “Hold­er” means a per­son or enti­ty that has received autho­riza­tion to offer or pro­vide cable or video ser­vice from the Com­mis­sion pur­suant to 220 ILCS 5/21–401.

(E) “Ser­vice” means the pro­vi­sion of “cable ser­vice” or “video ser­vice” to sub­scribers and the inter­ac­tion of sub­scribers with the per­son or enti­ty that has received autho­riza­tion to offer or pro­vide cable or video ser­vice from the Com­mis­sion pur­suant to 220 ILCS 5/21–401.

(F) “Ser­vice Provider Fee” means the amount paid under this Arti­cle and 220 ILCS 5/21–801 by the hold­er to a Coun­ty for the ser­vice areas with­in its ter­ri­to­r­i­al jurisdiction.

(G) “Video Ser­vice” means video pro­gram­ming and sub­scriber inter­ac­tion, if any, that is required for the selec­tion or use of such video pro­gram­ming ser­vices, and which is pro­vid­ed through wire­line facil­i­ties locat­ed at least in part in the pub­lic right-of-way with­out regard to deliv­ery tech­nol­o­gy, includ­ing Inter­net pro­to­col tech­nol­o­gy.  This def­i­n­i­tion does not include any video pro­gram­ming pro­vid­ed by a com­mer­cial mobile ser­vice provider defined in 47 U.S.C. § 332(d) or any video pro­gram­ming pro­vid­ed sole­ly as part of, and via, ser­vice that enables users to access con­tent, infor­ma­tion, elec­tron­ic mail, or oth­er ser­vices offered over the pub­lic Internet.