Explanation
In June of 2007 the Ohio General Assembly with the concurrence of the Governor of Ohio, enacted Senate Bill 117 to provide for a statewide video service authorization process for wireline multi-channel video service providers; to include but not be limited to cable operators and telecommunications providers.
The effective date for a statewide video service authorization process is September 24, 2007
Senate Bill 117 as enacted abolishes the requirement for all new video service providers to obtain a franchise or service permit from the municipality or township in which the video service provider intends to operate. The Bill as enacted also prohibits video service providers (including cable operators) and municipalities or townships from renewing any existing agreement.
Under the new state law, a current provider of video service or cable service may opt-out of any existing agreement if certain criteria exist. In the event, that an existing cable operator opts -in to a state video service authorization and negates an existing agreement or in the event a new video service provider obtains a state authorization to provide service in the City of Columbus, it is necessary to amend existing city code to extend to any state authorized video service provider the requirement to pay to the City of Columbus a service permit or video service authorization fee of 5% of gross revenue as defined by Senate Bill 117 and to specifically include in the gross revenue definition revenue obtained from the sale of advertising.
It is the purpose of this legislation to comply with State of Ohio requirements that the City notify a video service provider of the percentage fee to be collected and to comply with a further requirement that the City pass an ordinance stating that advertising revenue is to be included in the definition of gross revenue.
CONTRACT COMPLIANCE: Not Applicable
EMERGENCY DESIGNATION: This ordinance is being submitted as an emergency measure because the state law measure takes effect on September 24, 2007.
Title
To amend Chapter 595 of the City of Columbus Code to include language establishing a video service authorization fee of five percent of a video service provider's gross revenues and to specify that advertising revenue is to be included in gross revenues as defined by Ohio Revised Code; and to declare an emergency.
Body
Whereas, the Ohio General Assembly with the concurrence of the Governor of Ohio, enacted O.R.C. Sections 1332.21-34 ( otherwise known as amended Senate Bill 117) to provide for a statewide franchising or authorization process for wireline multi-channel video service providers to include but not be limited to cable operators and telecommunications providers, and
Whereas, the effective date for a statewide video service authorization process is September 24, 2007, and
Whereas, Senate Bill 117 as enacted abolishes the requirement for all new video service providers to obtain a franchise or service permit from the municipality or township in which the video service provider intends to operate, and
Whereas, Senate Bill 117 as enacted prohibits video service providers (including cable operators) and municipalities or townships from renewing any existing agreement, and
Whereas, under Senate Bill 117 as enacted a video service provider may opt -out of an existing agreement and seek a State of Ohio video service authorization (VSA) contingent upon certain criteria being met, and
Whereas, Senate Bill 117 as enacted does provide for the municipality or township in which a video service provider is authorized by the state to provide service the right to collect a franchise or service permit fee of up to 5% of gross revenues as defined by Senate Bill 117 as enacted, and
Whereas, Senate Bill 117 as enacted grants to municipalities and townships the right to include advertising revenues in the gross revenue definition, contingent upon the municipality's or township's passage of a resolution or ordinance so stating the jurisdiction's intent to include advertising revenues in the gross revenue definition it will use to collect a video service authorization fee, and
Whereas, Senate Bill 117 as enacted requires the municipality or township to notify all video service providers from whom it will collect a franchise or service permit fee the percentage of gross revenues to be collected,
Whereas, an emergency exists in the usual daily operation of the Department of Technology, in that it is immediately necessary to amend Chapter 595 so that the City may comply with state law for the immediate preservation of the public health, peace, property and safety; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Chapter 595 of the Columbus City Code is amended to include new Section 595.08(A)(9) which shall read as follows:
Any video service provider authorized by the State of Ohio to provide video service in the City of Columbus shall pay to the City of Columbus a video service authorization (VSA) fee equal to 5% of its gross revenue as defined by R.C. 1332.21-34. The definition of gross revenue to be used in computing the video service authorization fee is to include advertising revenue. The video service authorization fee is to be collected in compliance with R.C. 1332.21-34.
Section 2. That for the reasons stated in the preamble hereto, where is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure, which shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.