2012 -- S 2601

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LC01969

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - FRANCHISES

     Introduced By: Senators Pichardo, Goodwin, Ruggerio, Perry, and Metts

     Date Introduced: March 01, 2012

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 39-17-2 and 39-17-3 of the General Laws in Chapter 39-17

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entitled "Franchises" are hereby amended to read as follows:

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     39-17-2. Purposes for which permitted -- Duration -- Protection of existing

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businesses -- Landowner's rights. -- Any grants, whether by ordinance or by contract, may

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confer upon any corporation created by the general assembly for the purpose of distributing

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water, or for the purpose of producing, selling, and distributing currents of electricity to be used

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for light, heat, or motive power, or for the purpose of manufacturing, selling, and distributing

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illuminating or heating gas, or for the purpose of operating street railways by any motive power,

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or for the purpose of operating telephones, telecommunications and related services, and

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providing cable or satellite services; the exclusive right, for a time not exceeding twenty-five (25)

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years, to erect, lay, construct, and maintain for the purposes for which the corporation is created,

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poles, wires, pipes, conduits, rails, or cables, with necessary and convenient appurtenances as

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may be required for the conduct of the business of the corporation, in, over, or under the streets of

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the town or city; provided, however, that no grant of exclusive rights or franchises for any of the

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purposes described in this section shall be made by any city or town where, at the time a

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corporation created for the same purpose, or a person duly authorized by law to use the streets for

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such purpose, shall be in actual use and enjoyment of the rights, except to the corporation or

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person already carrying on business in the city or town; and provided, further, that whenever in

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any city or town more than one corporation shall at the time be in actual use and enjoyment of

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portions of the streets and highways for any of the purposes described in this section, no

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exclusive right or franchise shall be granted to either without the consent of the other; and

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provided, further, that no grant shall prevent any town or city from permitting any person or

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corporation to use streets or highways for any of the purposes described in this section in order to

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connect and serve any two (2) or more estates owned by the person or corporation.

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     39-17-3. Franchise tax payable to city or town. -- Every corporation which shall accept

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exclusive rights or franchises granted by ordinance or contract under the provisions of this

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chapter, shall make and render to the treasurer of the town or city granting the same, on or before

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the thirtieth day of January, April, July, and October in every year, returns, verified by the oath of

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its president or treasurer, of the gross earnings of the corporation within the town or city for the

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period of three (3) months next preceding the first day of January, April, July, and October in the

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same year, and shall at the time pay to the town or city treasurer, in full payment for the rights

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and franchises granted under this chapter, a special tax upon the gross earnings at a rate not

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exceeding three percent (3%) upon the gross earnings of the corporation within the town or city in

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that year.

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     SECTION 2. This act shall take effect upon passage.

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LC01969

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - FRANCHISES

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     This act would permit cities and towns to grant non-exclusive franchise rights to

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telecommunications and cable services.

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     This act would take effect upon passage.

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LC01969

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