Bill Text: CA AB2748 | 2021-2022 | Regular Session | Introduced
Bill Title: Telecommunications: Digital Equity in Video Franchising Act of 2022.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2022-06-27 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2748 Detail]
Download: California-2021-AB2748-Introduced.html
Introduced by Assembly Member Holden |
February 18, 2022 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The heading of Division 2.5 (commencing with Section 5800) of the Public Utilities Code is amended to read:DIVISION 2.5. THE DIGITAL INFRASTRUCTURE AND EQUITY IN VIDEO COMPETITION FRANCHISING ACT OF 2006 2022
SEC. 2.
Section 5800 of the Public Utilities Code is amended to read:5800.
This act shall be known and may be cited as the DigitalSEC. 3.
Section 5810 of the Public Utilities Code is amended to read:(a)The Legislature finds and declares all of the following:
(1)Increasing competition for video and broadband services is a matter of statewide concern for all of the following reasons:
(A)Video and cable services provide numerous benefits to all Californians including access to a variety of news, public information, education, and entertainment programming.
(B)Increased competition in the cable and video service sector provides consumers with more choice, lowers prices, speeds the deployment of new communication and broadband technologies, creates jobs, and benefits the California economy.
(C)To promote competition, the state should establish a state-issued franchise authorization process that allows market participants to use their networks and systems to provide video, voice, and broadband services to all residents of the state.
(D)Competition for video service should increase opportunities for programming that appeals to California’s diverse population and many cultural communities.
(2)Legislation to develop this new process should adhere to the following principles:
(A)Create a fair and level playing field for all market competitors that does not disadvantage or advantage one service provider or technology over another.
(B)Promote the widespread access to the most technologically advanced cable and video services to all California communities in a nondiscriminatory manner regardless of socioeconomic status.
(C)Protect local government revenues and control of public rights-of-way.
(D)Require market participants to comply with all applicable consumer protection laws.
(E)Complement efforts to increase investment in broadband infrastructure and close the digital divide.
(F)Continue access to and maintenance of the public, education, and government (PEG) channels.
(G)Maintain all existing authority of the California Public Utilities Commission as established in state and federal statutes.
(3)The public interest is best served when sufficient funds are appropriated to the commission to provide adequate staff and resources to appropriately and timely process applications of video service providers and to ensure full compliance with the requirements of this division. It is the intent of the Legislature that, although video service providers are not public utilities or common carriers, the commission shall collect any fees authorized by this division in the same manner and under the same terms as it collects fees from common carriers, electrical corporations, gas corporations, telephone corporations, telegraph corporations, water corporations, and every other public utility providing service directly to customers or subscribers subject to its jurisdiction such that it does not discriminate against video service providers or their subscribers.
(4)Providing an incumbent cable operator the option to secure a state-issued franchise through the preemption of an existing cable franchise between a cable operator and any political subdivision of the state, including, but not limited to, a charter city, county, or city and county, is an essential element of the new regulatory framework established by this act as a matter of statewide concern to best ensure equal protection and parity among providers and technologies, as well as to achieve the goals stated by the Legislature in enacting this act.
5810.
(a) The Legislature finds and declares all of the following:
SEC. 4.
Section 5820 of the Public Utilities Code is amended to read:5820.
(a)SEC. 5.
Section 5830 of the Public Utilities Code is amended to read:5830.
For purposes of this division, the following words have the following meanings:SEC. 6.
Section 5840 of the Public Utilities Code is amended to read:5840.
(a) The commission is the sole franchising authority for a state franchise to provide video service under this division.(b)The application process described in this section and the authority granted to the commission under this section shall not exceed the provisions set forth in this section.
(7)
(8)
(9)
(h)(1)The commission shall notify an applicant for a state franchise and any affected local entities whether the applicant’s application is complete or incomplete before the 30th calendar day after the applicant submits the application.
(2)If the commission finds the application is complete, it shall issue a state franchise before the 14th calendar day after that finding.
(3)If the commission finds that the application is incomplete, it shall specify with particularity the items in the application that are incomplete and permit the applicant to amend the application to cure any deficiency. The commission shall have 30 calendar days from the date the application is amended to determine its completeness.
(4)The failure of the commission to notify the applicant of the completeness or incompleteness of the application before the 44th calendar day after receipt of an application shall be deemed to constitute issuance of the certificate applied for without further action on behalf of the applicant.
(i)
(j)
(k)
(l)
(m)
(n)Prior to
(o)
(p)
(q)(1)There is hereby adopted a state franchise fee payable as rent or a toll for the use of the public rights-of-way by holders of the state franchise issued pursuant to this division. The amount of the state franchise fee shall be 5 percent of gross revenues, as defined in subdivision (d) of Section 5860, or the percentage applied by the local entity to the gross revenue of the incumbent cable operator, whichever is less. If there is no incumbent cable operator or upon the expiration of the incumbent cable operator’s franchise, the amount of the state franchise fee shall be 5 percent of gross revenues, as defined in subdivision (d) of Section 5860, unless the local entity adopts an ordinance setting the amount of the franchise fee at less than 5 percent.
(2)(A)The state franchise fee shall apply equally to all video service providers in the local entity’s jurisdiction.
(B)Notwithstanding subparagraph (A), if the video service provider is leasing access to a network owned by a local entity, the local entity may set a franchise fee for access to the network different from the franchise fee charged to a video service provider for access to the rights-of-way to install its own network.
SEC. 7.
Section 5841 is added to the Public Utilities Code, to read:5841.
(a) There is hereby adopted a state franchise fee payable as rent or a toll for the use of the public rights-of-way by holders of the state franchise issued pursuant to this division. The amount of the state franchise fee shall be 5 percent of gross revenues, as defined in subdivision (d) of Section 5860, or the percentage applied by the local entity to the gross revenue of the incumbent cable operator, whichever is less. If there is no incumbent cable operator or upon the expiration of the incumbent cable operator’s franchise, the amount of the state franchise fee shall be 5 percent of gross revenues, as defined in subdivision (d) of Section 5860, unless the local entity adopts an ordinance setting the amount of the franchise fee at less than 5 percent.SEC. 8.
Section 5850 of the Public Utilities Code is amended to read:5850.
(a) A state-issued franchise shall only be valid for 10 years after the date of issuance, and the holder shall apply for a renewal of the state franchise for an additional 10-year period if it wishes to continue to provide video services in the area covered by the franchise after the expiration of the franchise.SEC. 9.
Section 5860 of the Public Utilities Code is amended to read:5860.
(a) The holder of a state franchise that offers video service within the jurisdiction of the local entity shall calculate and remit to the local entity a state franchise fee, adopted pursuant toSEC. 10.
Section 5870 of the Public Utilities Code is amended to read:5870.
(a) The holder of a state franchise shall designate a sufficient amount of capacity on its network to allow the provision of the same number of public, educational, and governmental access (PEG) channels, as are activated and provided by the incumbent cable operator that has simultaneously activated and provided the greatest number of PEG channels within the local entity under the terms of any franchise in effect in the local entity as of January 1, 2007. ForSEC. 11.
Section 5880 of the Public Utilities Code is amended to read:5880.
Holders of state franchises shall comply with the Emergency Alert System requirements of the Federal Communications Commission in order that emergency messages may be distributed over the holder’s network. Any provision in a locally issued franchise authorizing local entities to provide local emergency notifications shall remain in effect, and shall apply to all holders of a state-issued franchise in the same local area, for the duration of the locally issued franchise, until the term of the franchise would have expired were the franchise not terminated pursuant to subdivisionSEC. 12.
Section 5890 of the Public Utilities Code is amended to read:(a)
5890.
(a) It is the policy of the State of California that subscribers and potential subscribers of a state video franchiseholder should benefit from equal access to service within the service area.
(b)Holders or their affiliates with more than 1,000,000 telephone customers in California satisfy subdivision (a) if all of the following conditions are met:
(1)Within three years after it begins providing video service under this division, at least 25 percent of households with access to the holder’s video service are low-income households.
(2)Within five years after it begins providing video service under this division and continuing thereafter, at least 30 percent of the households with access to the holder’s video service are low-income households.
(3)Holders provide service to community centers in underserved areas, as determined by the holder, without charge, at a ratio of one community center for every 10,000 video subscribers. The holder shall not be required to take its facilities beyond the appropriate demarcation point outside the community center building or perform any inside wiring. The community center may not receive service from more than one state franchise holder at a time under this section. For purposes of this section, “community center” means any facility operated by an organization that has qualified for the California Teleconnect Fund, as established in Section 280 and that will make the holder’s service available to the community.
(c)Holders or their affiliates with fewer than 1,000,000 telephone customers in California satisfy this section if they offer video service to all customers within their telephone service area within a reasonable time, as determined by the commission. However, the commission shall not require the holder to offer video service if the cost to provide video service is substantially above the average cost of providing video service in that telephone service area.
(d)When a holder provides video service outside of its telephone service area, is not a telephone corporation, or offers video service in an area where no other video service is being offered, other than direct-to-home satellite service, there is a rebuttable presumption that discrimination in providing service has not occurred within those areas. The commission may review the holder’s proposed video service area to ensure that the area is not drawn in a discriminatory manner.
(e)For holders or their affiliates with more than 1,000,000 telephone customers in California, either of the following shall apply:
(1)If the holder is predominantly deploying fiber optic facilities to the customer’s premise, the holder shall provide access to its video service to a number of households at least equal to 25 percent of the customer households in the holder’s telephone service area within two years after it begins providing video service under this division, and to a number at least equal to 40 percent of those households within five years.
(2)If the holder is not predominantly deploying fiber optic facilities to the customer’s premises, the holder shall provide access to its video service to a number of households at least equal to 35 percent of the households in the holder’s telephone service area within three years after it begins providing video service under this division, and to a number at least equal to 50 percent of these households within five years.
(3)A holder shall not be required to meet the 40-percent requirement in paragraph (1) or the 50-percent requirement in paragraph (2) until two years after at least 30 percent of the households with access to the holder’s video service subscribe to it for six consecutive months.
(4)If 30 percent of the households with access to the holder’s video service have not subscribed to the holder’s video service for six consecutive months within three years after it begins providing video service, the holder may submit validating documentation to the commission. If the commission finds that the documentation validates the holder’s claim, then the commission shall permit a delay in meeting the 40-percent requirement in paragraph (1) or the 50-percent requirement in paragraph (2) until the time that the holder does provide service to 30 percent of the households for six consecutive months.
(f)(1)After two years of providing service under this division, the holder may apply to the state franchising authority for an extension to meet the requirements of subdivision (b), (c), or (e). Notice of this application shall also be provided to the telephone customers of the holder, the Secretary of the Senate, and the Chief Clerk of the Assembly.
(2)Upon application, the franchising authority shall hold public hearings in the telephone service area of the applicant.
(3)In reviewing the failure to satisfy the obligations contained in subdivision (b), (c), or (e), the franchising authority shall consider factors that are beyond the control of the holder, including, but not limited to, the following:
(A)The ability of the holder to obtain access to rights-of-way under reasonable terms and conditions.
(B)The degree to which developments or buildings are not subject to competition because of existing exclusive arrangements.
(C)The degree to which developments or buildings are inaccessible using reasonable technical solutions under commercially reasonable terms and conditions.
(D)Natural disasters.
(4)The franchising authority may grant the extension only if the holder has made substantial and continuous effort to meet the requirements of subdivision (b), (c), or (e). If an extension is granted the franchising authority shall establish a new compliance deadline.
(g)
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(1)“Access” means that the holder is capable of providing video service at the household address using any technology, other than direct-to-home satellite service, providing two-way broadband Internet capability and video programming, content, and functionality, regardless of whether any customer has ordered service or whether the owner or landlord or other responsible person has granted access to the household. If more than one technology is utilized, the technologies shall provide similar two-way broadband Internet accessibility and similar video programming.
(2)
(k)Nothing in this section shall be construed to require a holder to provide video service outside its wireline footprint or to match the existing service area of any cable operator.
SEC. 13.
Section 5900 of the Public Utilities Code is amended to read:5900.
(a) The holder of a state franchise shall comply with(c)The local entity shall enforce all of the customer service and protection standards of this section with respect to complaints received from residents within the local entity’s jurisdiction, but it may not adopt or seek to enforce any additional or different customer service or other performance standards under Section 53055.3 or subdivision (q), (r), or (s) of Section 53088.2 of the Government Code, or any other authority or provision of law.
(d)
(e)
(f)
(g)Any penalty assessed pursuant to this section shall be remitted to the local entity, which shall submit one-half of the penalty to the Digital Divide Account established in Section 280.5.
(h)
(i)
(j)
(k)