Bill Text: CA AB1826 | 2023-2024 | Regular Session | Amended
Bill Title: Digital Equity in Video Franchising Act of 2024.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-29 - Read second time and amended. [AB1826 Detail]
Download: California-2023-AB1826-Amended.html
Corrected
April 29, 2024 |
Amended
IN
Assembly
April 29, 2024 |
Amended
IN
Assembly
April 16, 2024 |
Introduced by Assembly Member Holden |
January 12, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 309.5 of the Public Utilities Code is amended to read:309.5.
(a) There is within the commission an independent Public Advocate’s Office of the Public Utilities Commission to represent and advocate on behalf of the interests of public utility customers and subscribers within the jurisdiction of the commission. The goal of the office shall be to obtain the lowest possible rate for service consistent with reliable and safe service levels. For revenue allocation and rate design matters, the office shall primarily consider the interests of residential and small commercial customers. The office shall also conduct independent evaluations as described in Section 5855.SEC. 2.
The heading of Division 2.5 (commencing with Section 5800) of the Public Utilities Code is amended to read:DIVISION 2.5. THE DIGITAL EQUITY IN VIDEO FRANCHISING ACT OF 2024
SEC. 3.
Section 5800 of the Public Utilities Code is amended to read:5800.
This act shall be known, and may be cited, as the Digital Equity in Video Franchising Act of 2024.SEC. 4.
Section 5810 of the Public Utilities Code is amended to read:5810.
(a) The Legislature finds and declares all of the following:(B)About 87 percent of California households only have access to two or fewer choices of internet service providers, which indicates a concentrated and noncompetitive market, according to independent analysis of state broadband availability data published by Valley Vision.
(C)
(D)
(E)
SEC. 5.
Section 5820 of the Public Utilities Code is amended to read:5820.
(a) This division does not create a vested right in a state-issued franchise by the franchiseholder or its affiliates that precludes the state from amending the terms and conditions of a franchise.SEC. 6.
Section 5830 of the Public Utilities Code is amended to read:5830.
For purposes of this division, the following definitions apply:SEC. 7.
Section 5840 of the Public Utilities Code is amended to read:5840.
(a) (1) The commission is the sole franchising authority for a state franchise to provide video service under this division.SEC. 8.
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 a 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. 9.
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. The holder may apply for a renewal of the state franchise for an additional 10-year period to continue to provide video services in the area covered by the state franchise.(2)Notwithstanding paragraph (1), if more than five public hearings are required for renewal of a state video franchise with over one million (1,000,000) subscribers, the commission may hold virtual public hearings.
(3)Notwithstanding paragraph (1), for holders with fewer than 50,000 subscribers, telephone and written comments may substitute for in-person, public hearings on renewal applications.
SEC. 10.
Section 5855 is added to the Public Utilities Code, to read:5855.
(a) For purposes of an application for renewal of a state franchise, a holder that is seeking a renewal of its state franchise shall undergo an independent evaluation by the Public Advocate’s Office of the Public Utilities Commission, to document how the holder has met its obligations under this division. This evaluation shall include, but is not limited to, all of the following:SEC. 11.
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 to Section 5841, as provided in this section. The obligation to remit the franchise fee to a local entity begins immediately upon provision of video service within that local entity’s jurisdiction. However, the remittance shall not be due until the time of the first quarterly payment required under subdivision (h) that is at least 180 days after the provision of video service began. The fee remitted to a city or city and county shall be based on gross revenues, as defined in subdivision (d), derived from the provision of video service within that jurisdiction. The fee remitted to a county shall be based on gross revenues earned within the unincorporated area of the county. A fee under this section shall not become due unless the local entity provides documentation to the holder of a state franchise supporting the percentage paid by the incumbent cable operator serving the area within the local entity’s jurisdiction. The fee remitted to the local entity pursuant to this section may be used by the local entity for any lawful purpose.SEC. 12.
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. For purposes of this section, a PEG channel is deemed activated if it is being utilized for PEG programming within the local entity’s jurisdiction for at least eight hours per day. The holder shall have three months from the date the local entity requests the PEG channels to designate the capacity. However, the three-month period shall be tolled by any period during which the designation or provision of PEG channel capacity is technically infeasible, including any failure or delay of the incumbent cable operator to make adequate interconnection available, as required by this section.SEC. 13.
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 subdivision (n) of Section 5840, or until January 1, 2009, whichever is later.(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 video service within the franchise service area, regardless of income level.
(b)A cable operator or video service provider that has been granted a state franchise under this division shall not discriminate against or deny equal access to service to any group of potential residential subscribers.
(c)(1)Holders or their affiliates
satisfy subdivision (b) if both of the following conditions are met:
(A)Within three years after it begins providing video service under this division, at least 50 percent of households in low-income communities within its service territory have access to the holder’s video service.
(B)Within five years after it begins providing video service under this division and continuing thereafter, 100 percent of households in low-income communities within its service territory have access to the holder’s video service.
(2)Holders or their affiliates with fewer than 250,000 telephone customers in California satisfy the requirements of this section if they offer video service to all customers within their telephone service area within a reasonable time, as determined by the commission.
(3)After two years of providing service pursuant to this division, a holder may apply to the commission for an extension to meet the requirements of this subdivision. Notice of this application shall also be provided to the customers of the holder, the Secretary of the Senate, and the Chief Clerk of the Assembly.
(d)In reviewing
an alleged violation of subdivision (b), the commission shall consider any factors that are beyond the control of the holder, including, but not limited to, all of the following:
(1)The ability of the holder to obtain access to rights-of-way under reasonable terms and conditions.
(2)The degree to which developments or buildings are not subject to competition because of exclusive arrangements.
(3)The degree to which developments or buildings are inaccessible using reasonable technical solutions.
(4)Natural disasters.
(5)The need to access private property for which access could not be obtained.
(6)Whether the holder owns or controls the facilities used to deliver video services.
(e)Local entities and customers may bring complaints to the commission that a holder is not offering video service as required by this section, or the commission may open an investigation on its own motion. The
commission shall hold public hearings before issuing a decision. The commission may suspend or revoke the franchise if the holder fails to comply with this division.
(f)(1)If the commission finds that the holder is in violation of this section, it may, in addition to any other remedies provided by law, impose a fine of not more than one hundred thousand dollars ($100,000) per day that the violation occurred, not to exceed a total of 5 percent of the holder’s annual revenue derived from providing service within its franchise service area per violation.
(2)The commission may only impose a fine within one year of the violation occurring.
(g)If a court finds that the holder
of the state franchise is in violation of this section, the court may immediately terminate the holder’s state franchise, and the court shall, in addition to any other remedies provided by law, impose a fine.
(h)For purposes of this section, the following definitions apply:
(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 used, the technologies shall provide similar two-way broadband internet accessibility, speeds, capacities, latency, and other quality-of-service metrics and similar video programming.
(2)“Equal” means the opportunity to subscribe to an offered service that provides comparable speeds, and other quality-of-service metrics in a given area for comparable terms and conditions.
(3)“Household” means, consistent with the United States Census Bureau, a house, an apartment, a mobilehome, a group of rooms, or a single room that is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live and eat separately from any other persons in the building and that have direct access from the outside of the building or through a common hall.
(4)“Low-income community” means a census block group with a median household income at or below either 80 percent of the statewide median income or the income limit for lower income households described in Section 50079.5 of the Health and Safety Code.
SEC. 15.SEC. 14.
Section 5895 of the Public Utilities Code is amended to read:5895.
(a) The commission shall collect granular data on the actual locations served by the holder of a state franchise.SEC. 16.SEC. 15.
Section 5900 of the Public Utilities Code is amended to read:5900.
(a) The holder of a state franchise shall comply with Sections 53055, 53055.1, 53055.2, and 53088.2 of the Government Code, and any other customer service standards pertaining to the provision of video service established by federal law or regulation or adopted by subsequent enactment of the Legislature. All customer service and consumer protection standards under this section shall be interpreted and applied to accommodate newer or different technologies while meeting or exceeding the goals of the standards.SEC. 17.SEC. 16.
Section 5930 of the Public Utilities Code is amended to read:5930.
(a) Notwithstanding any other provision of this division, any video service provider that currently holds a franchise with a local franchising entity in a county that is a party, either alone or in conjunction with any other local franchising entity located in that county, to a stipulation and consent judgment executed by the parties thereto and approved by a federal district court shall neither be entitled to seek a state franchise in any area of that county, including any unincorporated area and any incorporated city of that county, nor abrogate any existing franchise before July 1, 2014. Before July 1, 2014, the video service provider shall continue to be exclusively governed by any existing franchise with a local franchising entity for the term of that franchise and any and all issues relating to renewal, transfer, or otherwise in relation to that franchise shall be resolved pursuant to that existing franchise and otherwise applicable federal and local law. This subdivision does not extend any existing franchise beyond its term.SEC. 18.SEC. 17.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.CORRECTIONS:
Text—Page 17.