CC SR 20171003 02 - Video Service Providers Regulatory OrdinanceRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 10/03/2017
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action to introduce a Video Service Providers Regulatory
Ordinance.
RECOMMENDED COUNCIL ACTION:
(1) Introduce Ordinance No. , AN ORDINANCE REPEALING AND REPLACING
CHAPTER 13.12 (TELECOMMUNICATIONS REGULATORY ORDINANCE) OF
TITLE 13 (PUBLIC SERVICES) RELATING TO VIDEO SERVICE PROVIDERS.
FISCAL IMPACT: Enacting a Video Service Providers Regulatory Ordinance would,
among other things, authorize the City to assess monetary penalties for material
breaches of video providers' customer service standards. Enforcement of such an
ordinance may increase the City's legal costs in the event that litigation is pursued
against video providers. Penalty revenues and legal costs are too speculative to
realistically estimate at this time.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Kit Fox, AICP, Senior Administrative Analyst:"
REVIEWED BY: Gabriella Yap, Deputy City Manager.
APPROVED BY: Doug Willmore, City Manager`;`,,,,)
ATTACHED SUPPORTING DOCUMENTS:
A. Ordinance No. (page A-1)
B. Current RPVMC Chapter 13.12 (page B-1)
C. May 2nd City Council Staff report (page C-1)
BACKGROUND AND DISCUSSION:
On May 2, 2017, Staff presented a proposal to the City Council to initiate a video
provider customer service standards ordinance. As described the May 2nd Staff report
(Attachment C), the City retains the authority to enforce customer service standards for
video service providers, even though the City's authority to require local franchise
agreements was stripped away under the Digital Infrastructure and Video Competition
Act (DIVCA) in 2006. The City's franchise agreement with Cox Communications expired
in October 2015 and the City has never had a video provider franchise agreement with
Frontier Communications (formerly Verizon) or AT&T.
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In researching the necessary amendments to the City's Telecommunications Regulatory
Ordinance (Rancho Palos Verdes Municipal Code (RPVMC) Chapter 13.12), Staff found
that many provisions of the ordinance had been superseded or invalidated by the
enactment of DIVCA. Therefore, the Video Service Providers Regulatory Ordinance
presented to the City Council for introduction tonight constitutes a complete overhaul of
RPVMC Chapter 13.12.
The ordinance codifies the City's authority to obtain from state franchise holders a
franchise fee of 5% of the franchisee's gross revenue, plus 1 % gross revenue to be
used for the City's PEG purposes. (Proposed RPVMC § 13.12.040, page A-3.)
With respect to video providers customer service standards, DIVCA and the proposed
ordinance give the City the authority to impose monetary penalties for material breaches
of these standards. These penalties start at $500 per day/$1,500 maximum per
occurrence, with the ability to increase to $1,000 per day/$3,000 per occurrence and
$2,500 per day/$7,500 per occurrence in the event of second and third material
breaches, respectively, within a 12 -month period. (Proposed RPVMC § 13.12.090, page
A-7.)
Pursuant to Government Code Section 53088.2, specific customer service standards
covered by the ordinance would include (but not be limited to):
• Providing knowledgeable, qualified company representatives available to
respond to customer telephone inquiries Monday to Friday, inclusive, excluding
holidays, during normal business hours.
• Providing a toll-free or local telephone number for installation, service, and
complaint calls.
• Rendering bills that are accurate and understandable.
• Responding to a complete outage in a customer's service promptly, generally
within 24 hours except in those situations beyond the reasonable control of the
video provider.
• Providing a minimum of 30 days' written notice before increasing rates or
deleting channels.
• Requiring any service terminated without good cause to be restored without
charge for the service restoration.
• Prohibiting video providers from disclosing the name and address of a subscriber
for commercial gain to be used in mailing lists or for other commercial purposes
not reasonably related to the conduct of the businesses of the video providers or
their affiliates.
The proposed ordinance also codifies the requirement for video service providers to
obtain an encroachment permit from the Public Works Department for the placement of
related equipment in the City's public rights-of-way (proposed Sections 13.12.100 and
13.12.110 on pages A-8 through A-9). The Director of Public Works will have the
authority to approve or deny such encroachment permit applications, which action shall
be appealable to the City Council. Since there is currently no appeal fee for
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encroachment permits in the City's Master Fee Schedule, Staff will prepare and present
a resolution adopting this appeal fee concurrent with the City Council's adoption of the
Video Service Providers Regulatory Ordinance at a future City Council meeting.
Due to the extensive nature of the proposed amendments to RPVMC Chapter 13.12,
only a "clean" version of the proposed ordinance (Attachment A) is provided (i.e., there
is no "redlined" version). However, a copy of the current language of RPVMC Chapter
13.12 (Attachment B) is provided for the City Council's reference.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available
for the City Council's consideration:
1. Discuss and provide direction to modify the proposed ordinance, and
continue this matter for re -introduction of a revised ordinance at a future
City Council meeting.
2. Do not introduce the proposed ordinance and take no further action in this
matter.
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Eel N1110V-1101014ul ]
AN ORDINANCE REPEALING AND REPLACING CHAPTER 13.12
(TELECOMMUNICATIONS REGULATORY ORDINANCE) OF TITLE 13
(PUBLIC SERVICES) RELATING TO VIDEO PROVIDERS
WHEREAS, effective January 1, 2007, the California Public Utilities Commission
became the sole authority with power to grant state franchises pursuant to the Digital
Infrastructure and Video Competition Act of 2006 (DIVCA), Pub. Utilities Code §
5830(h). DIVCA provides that the cities shall receive a franchise fee, as well as a fee for
public, educational, and/or government (PEG) purposes from all state franchise holders
operating within the City.
WHEREAS, pursuant to DIVCA, the City has the responsibility to establish and
enforce penalties for violations of customer service standards, consistent with state law,
against all state franchise holders operating within the City.
WHEREAS, DIVCA leaves unchanged the City's authority to regulate the City's
cable franchises and any City cable franchise issued prior to January 1, 2008, if any,
until their expiration.
WHEREAS, the City Council finds that the proposed repeal and replacement of
Chapter 13.12 updates the City's code comply with current law.
WHEREAS, all legal prerequisites to the adoption of the Ordinance have been
met.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY ORDAIN AS FOLLOWS:
Section 1: The facts set forth in the Recitals are true and correct.
Section 2: Chapter 13.12 (Telecommunications Regulatory Ordinance) of Title
13 (Public Services) is hereby repealed and replaced with the following:
Chapter 13.12 Video Service Providers Regulatory Ordinance
13.12.010 Title.
This chapter is known and may be cited as the "Video Service Providers Regulatory
Ordinance" of the City of Rancho Palos Verdes.
13.12.020 Purpose and Intent.
This chapter's purposes are as follows:
A. To regulate video service providers holding state franchises and operating partly
or wholly within the public right-of-way.
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B. To provide that the City shall receive a franchise fee, and provisions for payment
for the fee.
C. Provisions governing provision of PEG channels by any State franchise holder
operating within the City, and a fee for PEG purposes.
D. To establish and enforce penalties for violations of customer service standards,
consistent with state law, against all state franchise holders operating within the City.
13.12.030 Definitions.
The words, terms, phrases, and their derivations set forth in this article have the
meanings set forth below. Any reference to definitions in the Public Utilities Code
include any later amendments of the definitions. Unless otherwise expressly stated,
words, terms, and phrases not defined in this article will be given their meaning as used
in Title 47 of the United States Code, as amended, and, if not defined in that Code, their
meaning as used in Title 47 of the Code of Federal Regulations.
"Cable operator" has the same meaning as Section 5830(e) of the Public Utilities
Code.
"Cable services" has the same meaning as Section 5830(c) of the Public Utilities
Code.
"Communications Act" means the Communications Act of 1934 (47 U.S.C. Sections
153, et seq.), as amended by the Cable Communications Policy Act of 1984, the
Cable Television Consumer Protection and Competition Act of 1992, and the
Telecommunications Act of 1996.
"CPUC" means the California Public Utilities Commission.
"Director" means the Director of Public Works of the City, and includes his or her
designee.
"DIVCA" means the Digital Infrastructure and Video Competition Act of 2006,
codified as Section 5800 et seq. of the Public Utilities Code.
"Encroachment permit" means any permit issued by the City relating to construction
or operation of facilities pursuant to this chapter, in accordance with the provisions of
Section 7901 of the Public Utilities Code.
"FCC" or "Federal Communications Commission" means the federal administrative
agency, or any lawful successor, that is authorized to regulate telecommunications
services and telecommunications service providers on a national level.
"Franchise" has the same meaning as Section 5830(f) of the Public Utilities Code.
"Franchise fee" has the same meaning as Section 5830(g) of the Public Utilities
Code.
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"Gross revenue" has the same meaning as Section 5860 of the Public Utilities Code.
"Incumbent cable operator" has the same meaning as Section 5830(i) of the Public
Utilities Code.
"NTSC" means National Television System Committee.
"PEG" means public, educational, and/or government.
"State franchise" has the same meaning as Section 5830(p) of the Public Utilities
Code.
"State franchise holder" of "holder" has the same meaning as Section 5830(h) of the
Public Utilities Code.
"Subscriber" means any person who, for any purpose, subscribes to the services
provided by a multichannel video programming distributor and who pays the charges
for those services.
"Telecommunications" means the transmission, between or among points specified
by the user, of information of the user's choosing, without change in the form or
content of the information as sent and received.
"Telecommunications service" means the offering of telecommunications directly to
the public for a fee, or to such classes of users as to be effectively available directly
to the public, regardless of the equipment or facilities that are used.
Telecommunications services include video services.
"Telecommunications service provider" means any provider of telecommunications
service, and include video services providers.
"Video service" has the same meaning as Section 5830(s) of the Public Utilities
Code.
"Video service provider" has the same meaning as Section 5830(t) of the Public
Utilities Code.
13.12.040 State Video Service Provider Franchise Fee.
A. For any state franchise holder operating within the boundaries of the City, there
shall be a fee paid to the City equal to 5% of the gross revenue of that state
franchise holder in accordance with the following:
1. The fee shall be payable to the City quarterly no later than 45 days
following the end of the calendar quarter for which the payment is due.
However, in accordance with the Public Utilities Code subsection 5860(a)
the first remittance by a franchise holder shall not be due until one
hundred and eighty (180) days after the provision of service began
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2. Pursuant to Section 5860(h) of the Public Utilities Code, the payment shall
be accompanied by a summary explaining the basis for the calculation of
the franchise fee.
3. Pursuant to Section 5860(h) of the Public Utilities Code, if the franchise
holder does not pay the franchise fee when due, the franchise holder shall
pay a late payment charge at a rate per year equal to the highest prime
lending rate during the period of delinquency, plus 1 %.
B. For any state franchise holder operating within the boundaries of the City, there
shall be an additional fee paid to the City equal to 1 % of the gross revenue of
that state franchise holder, which fee shall be used by the City for PEG purposes
consistent with state and federal law, and in accordance with the following:
1. The fee shall be payable to the City quarterly no later than 45 days
following the end of the calendar quarter for which the payment is due.
2. As permitted by Public Utilities Code Section 5870(o), any franchise
holder operating in the City may recover the PEG fees required herein as
a separate line item on the regular bill of each subscriber.
C. To the extent reauthorization is required by law upon the expiration of any state
franchise, subsection B above shall automatically be reauthorized as to that state
franchisee. Any and all reauthorizations under the section shall be effective for so
long as reauthorization is required by law.
13.12.050 City Response to State Franchise Applications.
A. Applicants for state franchises within the boundaries of the City must
concurrently provide complete copies to the City of any application or
amendments to applications filed with the CPUC. One complete copy must be
provided to the City Clerk.
B. The City will provide any appropriate comments to the CPUC regarding an
application or an amendment to an application for a state franchise.
13.12.060 City's Audit Authority.
A. Not more than once annually, the City may examine the business records of a
state franchise holder to the extent reasonably necessary to ensure
compensation in accordance with Section 13.12.050.
B. If the examination discloses that the holder has underpaid franchise fees by more
than 5% during the examination period, the holder shall pay all of the reasonable
and actual costs of the examination. If the examination discloses that the holder
has not underpaid franchise fees, the City shall pay all of the reasonable and
actual costs of the examination. In every other instance, each party shall bear its
own costs of the examination.
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C. Any claims by the City that compensation is not in accordance with Section
13.12.050, and any claims for refunds or other corrections to the remittance of
the state franchise holder, shall be made within 3 years and 45 days of the end of
the quarter for which compensation is remitted, or 3 years from the date of the
remittance, whichever is later. Either the City or the holder may, in the event of a
dispute concerning compensation under this section, bring an action in a court of
competent jurisdiction.
13.12.070 Special Provisions Applicable to Holders of State Franchises.
A. PEG Channel Capacity. The goal of the PEG access channels is to provide a
means and opportunity for citizens to become informed about City and
educational services, events, regulations, and also about decisions being made
by their representatives, both elected and appointed.
B. A state franchise holder that uses the public rights-of-way shall designate
sufficient capacity on its network to enable the carriage of at least three PEG
access channels.
1. PEG access channels shall be for the exclusive use of the City or its
designees to provide public, educational, or governmental programming.
2. Advertising, underwriting, or sponsorship recognition may be carried on
the PEG access channels for the purpose of funding PEG -related
activities, at the City's sole discretion.
3. The PEG access channels shall be carried on the basic service tier.
4. To the extent feasible, the PEG access channels shall not be separated
numerically from other channels carried on the basic service tier, and the
channel numbers for the PEG access channels shall be the same channel
numbers used by the incumbent cable operator, unless prohibited by
federal law.
5. After the initial designation of PEG access channel numbers, the channel
numbers shall not be changed without the prior written consent of the City,
unless the change is required by federal law.
6. Each PEG access channel shall be capable of carrying a NTSC television
signal.
7. City shall have the ability to coordinate with other Palos Verdes Peninsula
cities for programming
8. City shall have the ability to contract with independent contractors or
operate the PEG channels with City employees.
9. The state franchise holder shall provide the maximum assistance for PEG
channels required by law.
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10. The state franchise holder will provide City the same or better services
and assistance that the state franchise holder provides to any other City.
11. City shall have complete control over programming.
C. Viewership Ratings. Upon 30 days of City's written request to the state franchise
holder, the state franchise holder shall provide the City with viewership ratings
and other similar statistical information on each PEG channel provided by that
state franchisee.
D. Interconnection. Where technically feasible, a state franchise holder and an
incumbent cable operator shall negotiate in good faith to interconnect their
networks for the purpose of providing PEG access channel programming.
Interconnection may be accomplished by direct cable, microwave link, satellite,
or other reasonable method of connection. State franchise holders and
incumbent cable operators shall provide interconnection of the PEG access
channels on reasonable terms and conditions and may not withhold the
interconnection. If a state franchise holder and an incumbent cable operator
cannot reach a mutually acceptable interconnection agreement, the City may
require the incumbent cable operator to allow the state franchise holder to
interconnect its network with the incumbent's network at a technically feasible
point on the holder's network as identified by the holder. If no technically feasible
point for interconnection is available, the state franchise holder shall make an
interconnection available to the channel originator and shall provide the facilities
necessary for the interconnection. The cost of any interconnection shall be borne
by the state franchise holder requesting the interconnection unless otherwise
agreed to by the parties.
E. Emergency Alert System and Emergency Overrides. A state franchise holder
must comply with the emergency alert system requirements of the Federal
Communications Commission in order that emergency messages may be
distributed over the state franchise holder's network. Provisions in City -issued
franchises authorizing the City to provide local emergency notifications shall
remain in effect, and shall apply to all state franchise holders in the City for the
duration of the City -issued franchise, or until the term of the franchise would have
expired had it not been terminated pursuant to subdivision (o) of Section 5840 of
the California Public Utilities Code, or until January 1, 2009, whichever is later.
13.12.080 Video Service Providers Customer Service Standards.
Unless the customer protection and customer service obligations of a video service
provider are specified in the franchise agreement, a video service provider must comply
with all applicable provisions of the following state statutes:
A. The Cable Television and Video Customer Service and Information Act
(Government Code Sections 53054, et seq.)
B. The Video Customer Service Act (Government Code Sections 53088, et seq.).
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C. Any other applicable state or federal customer protection and customer service
laws, as they may be enacted or amended.
13.12.090 Customer Service Penalties Under State Franchises.
A. The holder of a state franchise shall comply with all applicable state and federal
customer service and protection standards pertaining to the provision of video
service.
B. The City Manager shall monitor the compliance of state franchise holders with
respect to state and federal customer service and protection standards. The City
Manager will provide the state franchise holder written notice of any material
breaches of applicable customer and service standards, and will allow the state
franchise holder 30 days from the receipt of the notice to remedy the specified
material breach. Material breaches not remedied within the 30 -day time period
will be subject to the following penalties to be imposed by the City:
1. For the first occurrence of a violation, a fine of up to $500 may be imposed
for each day the violation remains in effect, not to exceed $1,500 for each
violation.
2. For a second violation of the same nature within 12 months, a fine of
$1,000 shall be imposed for each day the violation remains in effect, not to
exceed $3,000 for each violation.
3. For a third or further violation of the same nature within 12 months, a fine
of $2,500 shall be imposed for each day the violation remains in effect, not
to exceed $7,500 for each violation.
C. Any monetary penalties assessed under this section shall be reduced dollar -for -
dollar to the extent any liquidated damage or penalty provision of a current cable
television ordinance, franchise contract, or license agreement imposes a
monetary obligation upon a video provider for the same customer service
failures, and no other monetary damages may be assessed.
D. A state franchise holder may appeal a monetary penalty assessed by the City
pursuant to the provisions of Section 12.18.060(D) of the Rancho Palos Verdes
Municipal Code. Any interested person may seek judicial review of the City's final
decision in a court of appropriate jurisdiction.
E. Pursuant to Section 5900 of the Public Utilities Code, this section shall not
preclude a party affected by this section from utilizing any judicial remedy
available to that party without regard to this section.
F. The City and any franchise holder may mutually agree to extend the time periods
specified herein. Any such agreement shall be in writing and executed by the City
Manager, or his or her designee, and an authorized representative of the
franchise holder.
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G. Any penalty imposed on the franchise holder pursuant to this Section 13.12.080
shall be paid to the City. As provided for in Section 5900(g) of the Public Utilities
Code, the City shall submit 1/2 of all penalties received from a franchise holder to
the Digital Divide Account established in Section 280.5 of the Public Utilities
Code.
13.12.100 Permits to Install, Construct, and Maintain Networks Within Public
Rights -Of -Way.
A. A state franchise holder must obtain an encroachment permit from the Director
prior to installation and maintenance of a network or part thereof within the public
right-of-way. A state franchise holder may install, construct, and maintain a
network within the public rights-of-way under the same time, place, and manner
as the provisions governing telephone corporations under applicable state and
federal law, including, but not limited to, the provisions of Section 7901.1 of the
Public Utilities Code.
B. The Director shall either approve or deny an application from a state franchise
holder for an encroachment permit within 60 days of receiving a completed
application. An application for an encroachment permit is complete when the
applicant has complied with all statutory requirements, including the California
Environmental Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code).
C. If the Director denies an application for an encroachment permit, it shall, at the
time of notifying the applicant of the denial, furnish to the applicant a detailed
explanation of the reason for the denial.
D. The Director's denial of an encroachment permit application may be appealed
pursuant to the provisions of Section 12.18.060(D) of the Rancho Palos Verdes
Municipal Code. The fee for the appeal shall be determined by City Council
resolution.
E. An applicant and the Director may mutually agree to an extension of any time
limit provided by this section or the appeal provisions.
F. An Encroachment Permit shall include indemnity and insurance obligations for
the state franchise holder, in accordance with Section 13.12.110, or as may be
required by the Director.
13.12.110 Indemnification and insurance requirements for state franchise
holders.
A. The franchise holder shall, at the sole risk and expense of franchise holder, upon
demand of the City, made by and through the City Council, City Administrator or
City Attorney, appear in and defend any and all suits, actions, or other legal
proceedings, whether judicial, quasi-judicial, administrative, legislative, or
otherwise, brought or instituted or had by third person or duly constituted
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authorities, against or affecting the City, its elected officers, boards,
commissions, agents or employees, and arising out of, or pertaining to, the
exercise or the enjoyment of such State video franchise.
B. The franchise holder shall pay and satisfy and shall cause to be paid and
satisfied any judgment, decree, order, directive, or demand rendered, made or
issued against the franchise holder, the City, its elected officers, boards,
commissions, agents, or employees in any of these premises; and such
indemnity shall exist and continue without reference to or limitation by the
amount of any bond, policy of insurance, deposit, undertaking or other assurance
required hereunder, or otherwise provided, that neither the franchise holder nor
City shall make or enter into any compromise or settlement of any claim,
demand, cause of action, action, suit, or other proceeding, without first obtaining
the written consent of the other.
C. Upon becoming a franchise holder, the franchise holder shall file with the risk
manager and shall thereafter, during the entire term of the installation and/or
occupation in the public rights-of-way with any of the franchise holder's
equipment, maintain, in full force and effect, at its own cost and expense, proof of
the following policies of insurance:
General comprehensive liability insurance in the amount of $3,000,000.00,
together with bodily injury liability insurance in an amount not less than
$3,000,000.00 for injuries including accidental death, to any one person, and
subject to the same limit for each person in an amount not less than
$1,000,000.00 on account of any one occurrence, and property damage liability
insurance in an amount not less than $100,000.00 resulting from any one
occurrence; provided, as follows:
1. The City shall be named as an additional insured in any of such insurance
policies;
2. The insurance provided shall be primary and non-contributory and shall
not be cancelled or materially amended without 30 days' written notice to
the City, except 10 days' written notice shall be sufficient for nonpayment
of the premium; and
3. Where such insurance is provided by a policy which also covers the
franchise holder or any other entity or person, it shall contain the standard
cross -liability endorsement which excludes cross -liability suits.
13.12.120 Undergrounding.
A. In those areas and portions of the City where the transmission or distribution
facilities of both the public utility provided telephone service and those of the
utility providing electric service are underground or hereafter may be placed
underground, then the franchise holder shall likewise construct, operate and
maintain all of its transmission and distribution facilities underground.
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B. When the franchise holder's conduits and other facilities are not being installed
underground, the franchise holder shall utilize its existing poles, conduits or other
facilities (collectively, "system") to the extent feasible, as reasonably determined
by the Director, and shall remove all portions of the above -ground system which
will no longer be utilized. In addition, all facilities which are installed above
ground shall utilize anti -graffiti surfaces.
C. If the City undertakes a program to cause all conduits and other facilities to be
located beneath the surface of the streets in any area or throughout the city, then
upon reasonable notice to a franchise holder utilizing poles, conduits or other
above -ground facilities, any such conduits or other facilities of the franchise
holder shall be constructed, installed, placed or replaced beneath the surface of
the streets. Any construction, installation, placement, replacement or changes
which may be so required shall be made at the expense of the franchise holder,
whose costs shall be determined as in the case of public utilities.
13.12.130 Multichannel video programming distributors — Private property.
Video service providers do not include facilities that serve subscribers without using any
public rights-of-way. Consequently, the categories of multichannel video programming
distributors identified below are not deemed to be video service providers and are
therefore exempt from the franchise requirements and from certain other local
regulatory provisions authorized by law, provided that their distribution or transmission
facilities do not involve the use of the City's public rights-of-way.
A. Multichannel multipoint distribution service ("MMDS "), also known as "wireless
cable," which typically involves the transmission by an FCC -licensed operator of
numerous broadcast stations from a central location using line -of -sight
technology.
B. Local multipoint distribution service ("LMDS"), another form of over -the -air
wireless video service for which licenses are auctioned by the FCC, and which
offers video programming, telephony, and data networking services.
C. Direct broadcast satellite ("DBS"), also referred to as "direct -to -home satellite
services," which involves the distribution or broadcasting of programming or
services by satellite directly to the subscriber's premises without the use of
ground receiving or distribution equipment, except at the subscriber's premises
or in the uplink process to the satellite. Local regulation of direct -to -home satellite
services is further proscribed by the following federal statutory provisions:
1. 47 U.S.C. Section 303(v) confers upon the FCC exclusive jurisdiction to
regulate the provision of direct -to -home satellite services.
2. Section 602 of the Communications Act states that a provider of direct -to -
home satellite service is exempt from the collection or remittance, or both,
of any tax or fee imposed by any local taxing jurisdiction on direct -to -home
satellite service. The terms "tax" and "fee" are defined by federal statute to
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mean any local sales tax, local use tax, local intangible tax, local income
tax, business license tax, utility tax, privilege tax, gross receipts tax, excise
tax, franchise fees, local telecommunications tax, or any other tax, license,
or fee that is imposed for the privilege of doing business, regulating, or
raising revenue for a local taxing jurisdiction.
13.12.140 Antennas for video programming – Private property.
A. Section 17.76.020 (Antennas) of Chapter 17.76 (Miscellaneous Permits and
Standards) of Title 17 (Zoning) of this code sets forth the City's regulatory
requirements relating to the siting and construction of the following categories of
antennas that are commonly used in video programming:
1. Satellite earth station antennas, (also known as "satellite dish antennas"),
which are parabolic or dish -shaped antennas which are in excess of one
meter in diameter or devices that are designed for over -the -air reception of
radio or television broadcast signals, multichannel multipoint distribution
service, or direct broadcast satellite services.
2. Commercial antennas, which are unstaffed facilities for the transmission or
reception of radio, television, and communications signals, commonly
consisting of an antenna array, connection cables, a support structure to
achieve the necessary elevation, and an equipment facility to house
accessory equipment, which may include cabinets, pedestals, shelters,
and similar protective structures.
B. Notwithstanding any other provision of this chapter, Chapter 12.18 (Wireless
Telecommunications Facilities in the Public Right -of -Way) of this code shall apply
to siting, modification, and construction of wireless telecommunication facilities,
as defined therein, which in whole or in part, itself or as part of another structure,
rests upon, in, over or under the public right-of-way, including, but not limited to,
any such facility owned, controlled, operated or managed by an entity entitled to
construct within the right-of-way pursuant to a franchise with the City or state law.
13.12.150 Violations—Enforcement.
A. Any person who violates any provision of this chapter is guilty of a misdemeanor
and is punishable as provided for in Chapter 1.08 of Title 1 of this Code.
B. A violation of the provisions of this chapter is deemed a public nuisance.
C. The City may initiate a civil action in any court of competent jurisdiction to enjoin
any violation of this chapter.
Section 3: If any section, subsection, subdivision, sentence, clause, phrase, or
portion of this ordinance or the application thereof to any person or place, is for any
reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remainder of this ordinance.
The City Council hereby declares that it would have adopted this ordinance, and each
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and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof,
irrespective of the fact that any one or more sections, subsections, subdivisions,
sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
Section 4: The City Clerk shall cause this Ordinance to be posted in 3 public
places in the City within 15 days after its passage, in accordance with the provisions of
Section 36933 of the Government Code. The City Clerk shall further certify to the
adoption and posting of this Ordinance, and shall cause this Ordinance and its
certification, together with proof of posting, to be entered in the Book of Ordinances of
the Council of this City of Rancho Palos Verdes.
Section 5: This Ordinance shall go into effect and be in full force and effect at
12:01 AM on the 31St day after its passage.
PASSED, APPROVED AND ADOPTED this day of
Brian Campbell, Mayor
Attest:
Emily Colborn, City Clerk
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES
2017.
I, EMILY COLBORN, City Clerk of the City of Rancho Palos Verdes, do hereby certify
that the whole number of members of the City Council of said City is five; that the
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foregoing Ordinance No. passed first reading on , 2017, was duly
and regularly adopted by the City Council of said City at a regular meeting thereof held
on 2017, and that the same was passed and adopted by the following roll
call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk
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Chapter 13.12 - TELECOMMUNICATIONS REGULATORY ORDINANCE
Sections:
Article I. - General Provisions
13.12.010 - Title.
This chapter is known and may be cited as the "Telecommunications Regulatory Ordinance" of the city
of Rancho Palos Verdes.
(Ord. 339 § 2 (part), 1998)
13.12.020 - Purpose and intent.
A. The city council finds and determines as follows:
The development of cable television and other telecommunications systems may provide significant
benefits for, and have substantial impacts upon, the residents of the city.
2. Because of the complex and rapidly changing technology associated with telecommunications
services and systems, the public convenience, safety, and general welfare can best be served by
establishing regulatory powers to be exercised by the city.
3. This chapter is intended to establish regulatory provisions that authorize the city to regulate
telecommunications services and systems to the extent authorized by federal and state law,
including but not limited to the Federal Cable Communications Policy Act of 1984, the Federal Cable
Television Consumer and Competition Act of 1992, the Federal Telecommunications Act of 1996,
applicable regulations of the Federal Communications Commission, and applicable California
statutes and regulations.
B. The purpose and intent of this chapter is to provide for the attainment of the following objectives:
To enable the city to discharge its public trust in a manner consistent with rapidly evolving federal
and state regulatory policies, industry competition, and technological development.
2. To authorize and to manage reasonable access to the city's public rights-of-way and public property
for telecommunications purposes on a competitively neutral and nondiscriminatory basis.
3. To obtain fair and reasonable compensation for the city and its residents for authorizing the private
use of the public rights-of-way and public property.
4. To promote competition in telecommunications services, minimize unnecessary local regulation of
telecommunications service providers, and encourage the delivery of advanced and competitive
telecommunications services on the broadest possible basis to local government and to the
businesses, institutions, and residents of the city.
5.
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To establish clear local guidelines, standards, and time frames for the exercise of local authority
with respect to the regulation of telecommunications service providers.
6. To encourage the profitable deployment of advanced telecommunications infrastructures that
satisfy local needs, deliver enhanced government services, and provide informed consumer choices
in an evolving telecommunications market.
(Ord. 339 § 2 (part), 1998)
13.12.030 - Defined terms and phrases.
Various terms and phrases used in this chapter are defined below in Article V, Section 13.12.400.
(Ord. 339 § 2 (part), 1998)
Article II. - Cable Television Systems
13.12.100 - Authority and findings.
A. In accordance with applicable federal and state law, the city is authorized to grant one or more
nonexclusive franchises to construct, reconstruct, operate, and maintain cable television systems within
the city limits.
B. The city council finds that the development of cable television and related telecommunications services
may provide significant benefits for, and substantial impacts upon, the residents of the city. Because of
the complex and rapidly changing technology associated with cable television, the city council further
finds that the public convenience, safety, and general welfare can best be served by establishing
regulatory powers to be exercised by the city. This article is intended to specify the means for providing
to the public the best possible cable television and related telecommunications services, and every
franchise issued in accordance with this article is intended to achieve this primary objective. It is the
further intent of this article to adopt regulatory provisions that will enable the city to regulate cable
television and related telecommunications services to the maximum extent authorized by federal and
state law.
(Ord. 339 § 2 (part), 1998)
13.12.110 - Franchise terms and conditions.
A. Franchise Purposes. A franchise granted by the city under the provisions of this article may authorize
the grantee to do the following:
1. To engage in the business of providing cable service and such other telecommunications services as
may be authorized by law and which grantee elects to provide to its subscribers within the
designated franchise service area.
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2. To erect, install, construct, repair, rebuild, reconstruct, replace, maintain, and retain, cable lines,
related electronic equipment, supporting structures, appurtenances, and other property in
connection with the operation of the cable system in, on, over, under, upon, along and across
streets or other public places within the designated franchise service area.
3. To maintain and operate the franchise properties for the origination, reception, transmission,
amplification, and distribution of television and radio signals, and for the delivery of cable services
and such other services as may be authorized by law.
B. Franchise Required. It is unlawful for any person to construct, install, or operate a cable television
system within any street or public way in the city without first obtaining a franchise under the
provisions of this article.
C. Term of the Franchise.
A franchise granted under this article will be for the term specified in the franchise agreement,
commencing upon the effective date of the ordinance or resolution adopted by the city council that
authorizes the franchise.
2. A franchise granted under this article may be renewed upon application by the grantee in
accordance with the then -applicable provisions of state and federal law and of this article.
D. Franchise Territory. A franchise is effective within the territorial limits of the city, and within any area
added to the city during the term of the franchise, unless otherwise specified in the ordinance or
resolution granting the franchise or in the franchise agreement.
E. Federal or State Jurisdiction. This article will be construed in a manner consistent with all applicable
federal and state laws, and it applies to all franchises granted or renewed after the effective date of this
article, to the extent authorized by applicable law.
F. Franchise Non -Transferable.
Grantee may not sell, transfer, lease, assign, sublet, or dispose of, in whole or in part, either by
forced or involuntary sale, or by ordinary sale, contract, consolidation, or otherwise, the franchise
or any of the rights or privileges therein granted, without the prior consent of the city council and
then only upon such terms and conditions as may be prescribed by the city council, which consent
may not be unreasonably denied or delayed. Any attempt to sell, transfer, lease, assign, or
otherwise dispose of the franchise without the consent of the city council is null and void. The
granting of a security interest in any assets of the grantee, or any mortgage or other hypothecation,
will not be deemed a transfer for the purposes of this subsection.
2. The requirements of subsection (F)(1) of this section apply to any change in control of grantee. The
word "control" as used herein is not limited to the ownership of major stockholder or partnership
interests, but includes actual working control in whatever manner exercised. If grantee is a
corporation, prior authorization of the city council is required where ownership or control of more
than ten percent of the voting stock of grantee is acquired by a person or a group of persons acting
in concert, none of whom, singularly or collectively, owns or controls the voting stock of the grantee
as of the effective date of the franchise. R `�
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3. Grantee must notify the city in writing of any foreclosure or judicial sale of all or a substantial part
of the grantee's franchise property, or upon the termination of any lease or other interest covering
all or a substantial part of that franchise property. That notification will be considered by the city as
notice that a change in control of ownership of the franchise has taken place, and the provisions of
this paragraph that require the prior consent of the city council to that change in control of
ownership will apply.
4. For the purpose of determining whether it will consent to an acquisition, transfer, or change in
control, the city may inquire as to the qualifications of the prospective transferee or controlling
party, and grantee must assist the city in that inquiry. In seeking the city's consent to any change of
ownership or control, grantee or the proposed transferee, or both, must complete Federal
Communications Commission Form 394 or its equivalent. This application must be submitted to the
city not less than one hundred twenty days prior to the proposed date of transfer. The transferee
must establish that it possesses the legal, financial, and technical capability to operate and maintain
the cable system and to comply with all franchise requirements during the remaining term of the
franchise. If the legal, financial, and technical qualifications of the applicant are satisfactory, the city
will consent to the transfer of the franchise. The consent of the city to that transfer will not be
unreasonably denied or delayed.
5. Any financial institution holding a pledge of the grantee's assets to secure the advance of money for
the construction or operation of the franchise property has the right to notify the city that it, or a
designee satisfactory to the city, will take control of and operate the cable television system upon
grantee's default in its financial obligations. Further, that financial institution must also submit a
plan for such operation within ninety days after assuming control. The plan must insure continued
service and compliance with all franchise requirements during the period that the financial
institution will exercise control over the system. The financial institution may not exercise control
over the system for a period exceeding one year unless authorized by the city, in its sole discretion,
and during that period of time it will have the right to petition the city to transfer the franchise to
another grantee.
6. Grantee must reimburse the city for the city's reasonable review and processing expenses incurred
in connection with any transfer or change in control of the franchise. These expenses include,
without limitation, costs of administrative review, financial, legal, and technical evaluation of the
proposed transferee, consultants (including technical and legal experts and all costs incurred by
these experts), notice and publication costs, and document preparation expenses. No
reimbursement may be offset against any franchise fee payable to the city during the term of the
franchise.
G. Geographical Coverage.
Grantee must design, construct, and maintain the cable television system so as to have the
capability to pass every dwelling unit in the city, subject to any service -area line extension
requirements of the franchise agreement.
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2. After service has been established by activating trunk or distribution cables for any service area,
grantee must provide service to any requesting subscriber in that service area within thirty days
from the date of request, provided that the grantee is able to secure on reasonable terms and
conditions all rights-of-way necessary to extend service to that subscriber within that thirty -day
period.
H. Nonexclusive Franchise. Every franchise granted is nonexclusive. The city specifically reserves the right
to grant, at any time, such additional franchises for a cable television system, or any component
thereof, as it deems appropriate, subject to applicable state and federal law. If an additional franchise is
proposed to be granted to a subsequent grantee, a noticed public hearing must first be held in
accordance with the provisions of Government Code Section 53066.3.
Multiple Franchises.
The city may grant any number of franchises, subject to applicable state and federal law. The city
may limit the number of franchises granted, based upon, but not necessarily limited to, the
requirements of applicable law and specific local considerations, such as:
a. The capacity of the public rights-of-way to accommodate multiple cables in addition to the
cables, conduits, and pipes of the existing utility systems, such as electrical power, telephone,
gas, and sewerage.
b. The benefits that may accrue to subscribers as a result of cable system competition, such as
lower rates and improved service.
c. The disadvantages that may result from cable system competition, such as the requirement for
multiple pedestals on residents' property, and the disruption arising from numerous
excavations within the public rights-of-way.
2. The city may require that any new grantee be responsible for its own underground trenching and
the associated costs if, in the city's opinion, the rights-of-way in any particular area cannot
reasonably accommodate additional cables.
(Ord. 339 § 2 (part), 1998)
13.12.120 - Franchise applications and renewal.
A. Filing of Applications. Any person desiring an initial franchise for a cable television system must file an
application with the city. A reasonable nonrefundable application fee in an amount established by
resolution of the city council must accompany the application. That application fee will cover all costs
associated with reviewing and processing the application, including without limitation costs of
administrative review, financial, legal, and technical evaluation of the applicant, consultants (including
technical and legal experts and all costs incurred by those experts), notice and publication
requirements, and document preparation expenses. If those costs exceed the application fee, the
applicant must pay the difference to the city within thirty days following receipt of an itemized
statement of those costs.
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B. Applications—Contents. An application for an initial franchise for a cable television system must
contain, as applicable:
A statement as to the proposed franchise service area.
2. A resume of the applicant's prior history, including the experience and expertise of the applicant in
the cable television and telecommunications industry.
3. A list of the partners, general and limited, of the applicant, if a partnership, or the percentage of
stock owned or controlled by each stockholder, if a closely -held corporation. If the applicant is a
publicly -owned corporation, each owner of ten percent or more of the issued and outstanding
capital stock must be identified.
4. A list of officers, directors, and managing employees of the applicant, together with a description of
the background of each such person.
5. The names and addresses of any parent or subsidiary of the applicant, or any other business entity
owning or controlling applicant in whole or in part, or that is owned or controlled in whole or in part
by the applicant.
6. A current financial statement of the applicant verified by a certified public accountant or otherwise
certified to be true, complete, and correct to the reasonable satisfaction of the city.
7. The proposed construction and service schedule.
8. Any additional information that the city deems to be reasonably necessary.
C. Consideration of Initial Applications.
Upon receipt of an application for an initial franchise, the city manager or the city manager's
designee must prepare a report and make recommendations to the city council concerning that
application.
2. A public hearing will be noticed prior to any initial franchise grant, at a time and date approved by
the city council. Within thirty days after the close of the hearing, the city council will make a decision
based upon the evidence received at the hearing as to whether the franchise should be granted,
and, if granted, subject to what conditions. The city council may grant one or more franchises, or
may decline to grant any franchise.
D. Franchise Renewal. Franchise renewals will be processed in accordance with then -applicable law. The
city and grantee, by mutual consent, may enter into renewal negotiations at any time during the term of
the franchise.
(Ord. 339 § 2 (part), 1998)
13.12.130 - Contents of cable television franchise agreements.
A. The terms and provisions of a franchise agreement for the operation of a cable television or related
telecommunications services may relate to or include, without limitation, the following subject matters:
The nature, scope, geographical area, and duration of the franchise.
2.
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The applicable franchise fee to be paid to the city, including the amount, the method of
computation, and the time for payment.
3. Requirements relating to compliance with and implementation of state and federal laws and
regulations pertaining to the operation of the cable television system.
4. Requirements relating to the construction, upgrade, or rebuild of the cable television system, as
well as the provision of special services, such as outlets for public buildings, emergency alert
capability, and parental control devices.
5. Requirements relating to the maintenance of a performance bond, a security fund, a letter of credit,
or similar assurances to secure the performance of the grantee's obligations under the franchise
agreement.
6. Requirements relating to comprehensive liability insurance, workers' compensation insurance, and
indemnification.
7. Requirements relating to consumer protection and customer service standards, including the
resolution of subscriber complaints and disputes and the protection of subscribers' privacy rights.
8. Requirements relating to the grantee's support of local cable usage, including the provision of
public, educational, and governmental access channels, the coverage of public meetings and special
events, and financial support for governmental access channels.
9. Requirements relating to construction, operation, and maintenance of the cable television system
within the public rights-of-way, including compliance with all applicable building codes and permit
requirements of the city, the abandonment, removal, or relocation of facilities, and compliance with
FCC technical standards.
10. Requirements relating to recordkeeping, accounting procedures, reporting, periodic audits, and
performance reviews, and the inspection of grantee's books and records.
11. Acts or omissions constituting material breaches of or defaults under the franchise agreement,
and the applicable penalties or remedies for such breaches or defaults, including fines, penalties,
liquidated damages, suspension, revocation, and termination.
12. Requirements relating to the sale, assignment, or other transfer or change in control of the
franchise.
13. The grantee's obligation to maintain continuity of service and to authorize, under certain specified
circumstances, the city's operation and management of the cable system.
14. Such additional requirements, conditions, policies, and procedures as may be mutually agreed
upon by the parties to the franchise agreement and that will, in the judgment of city staff and the
city council, best serve the public interest and protect the public health, welfare, and safety.
B. If there is any conflict or inconsistency between the provisions of a franchise agreement authorized by
the city council and provisions of this article, the provisions of the franchise agreement will control.
(Ord. 339 § 2 (part), 1998)
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13.12.140 - Fee for support of local cable usage.
A fee paid to the city is hereby established for the support of public, educational, and governmental
access facilities and activities within the city. Unless a higher percentage is authorized by applicable state or
federal law, this fee shall be one percent of a grantee's gross annual cable service revenues, as that term is
defined below in Section 13.12.400, or in the grantee's franchise agreement, or in applicable provisions of
state or federal law. This fee is also applicable to a state video franchise holder operating within the city,
which shall pay to the city one percent of its gross revenues, as defined in California Public Utilities Code
Section 5860.
(Ord. 454 § 1, 2007: Ord. 455U § 1, 2007)
13.12.150 - Special provisions applicable to holders of state video franchises.
A. Franchise Fee. A state video franchise holder operating in the city shall pay to the city a franchise fee
that is equal to five percent of the gross revenues of that state video franchise holder. The term "gross
revenues" shall be defined as set forth in Public Utilities Code Section 5860.
B. Audit Authority. Not more than once annually, the city may examine and perform an audit of the
business records of a holder of a state video franchise to ensure compliance with all applicable statutes
and regulations related to the computation and payment of franchise fees.
C. Customer Service Penalties Under State Video Franchises.
1. The holder of a state video franchise shall comply with all applicable state and federal customer
service and protection standards pertaining to the provision of video service.
2. The city shall monitor a state video franchise holder's compliance with state and federal customer
service and protection standards. The city will provide to the state video franchise holder written
notice of any material breaches of applicable customer service and protection standards, and will
allow the state video franchise holder thirty days from receipt of the notice to remedy the specified
material breach. Material breaches not remedied within the thirty -day time period will be subject to
the following monetary penalties to be imposed by the city in accordance with state law:
a. For the first occurrence of a violation, a monetary penalty of five hundred dollars shall be
imposed for each day the violation remains in effect, not to exceed one thousand five hundred
dollars for each violation.
b. For a second violation of the same nature within twelve months, a monetary penalty of one
thousand dollars shall be imposed for each day the violation remains in effect, not to exceed
three thousand dollars for each violation.
c. For a third or further violation of the same nature within twelve months, a monetary penalty of
two thousand five hundred dollars shall be imposed for each day the violation remains in
effect, not to exceed seven thousand five hundred dollars for each violation.
3.
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A state video franchise holder may appeal a monetary penalty assessed by the city within sixty
days. After relevant evidence and testimony is received, and staff reports are submitted, the city
council will vote to either uphold or vacate the monetary penalty. The city council's decision on the
imposition of a monetary penalty shall be final.
D. City Response to State Video Franchise Applications.
Applicants for state video franchises within the boundaries of the city must concurrently provide to
the city complete copies of any application or amendments to applications filed with the California
Public Utilities Commission. One complete copy must be provided to the city clerk.
2. The city will provide any appropriate comments to the California Public Utilities Commission
regarding an application or an amendment to an application for a state video franchise.
E. PEG Channel Capacity. A state video franchise holder that uses the public rights-of-way shall designate
sufficient capacity on its network to enable the carriage of at least three public, educational, or
governmental (PEG) access channels.
PEG access channels shall be for the exclusive use of the city or its designees to provide public,
educational, or governmental programming.
2. Advertising, underwriting, or sponsorship recognition may be carried on the PEG access channels
for the purpose of funding PEG -related activities.
3. The PEG access channels shall be carried on the basic service tier.
4. To the extent feasible, the PEG access channels shall not be separated numerically from other
channels carried on the basic service tier, and the channel numbers for the PEG access channels
shall be the same channel numbers used by the incumbent cable operator unless prohibited by
federal law.
5. After the initial designation of PEG access channel numbers, the channel numbers shall not be
changed without the prior written consent of the city, unless the change is required by federal law.
6. Each PEG access channel shall be capable of carrying a National Television System Committee
(NTSC) television signal.
F. Interconnection. Where technically feasible, a state video franchise holder and an incumbent cable
operator shall negotiate in good faith to interconnect their networks for the purpose of providing PEG
access channel programming. Interconnection may be accomplished by direct cable, microwave link,
satellite, or other reasonable method of connection. State video franchise holders and incumbent cable
operators shall provide interconnection of the PEG access channels on reasonable terms and conditions
and may not withhold the interconnection. If a state video franchise holder and an incumbent cable
operator cannot reach a mutually acceptable interconnection agreement, the city may require the
incumbent cable operator to allow the state video franchise holder to interconnect its network with the
incumbent's network at a technically feasible point on the holder's network as identified by the holder.
If no technically feasible point for interconnection is available, the state video franchise holder shall
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make an interconnection available to the channel originator and shall provide the facilities necessary for
the interconnection. The cost of any interconnection shall be borne by the state video franchise holder
requesting the interconnection unless otherwise agreed to by the parties.
G. Emergency Alert System and Emergency Overrides. A state video franchise holder must 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. Provisions in city -issued franchises
authorizing the city to provide local emergency notifications shall remain in effect, and shall apply to all
state video franchise holders in the city for the duration of the city -issued franchise, or until the term of
the franchise would have expired had it not been terminated pursuant to subdivision (m) of Section
5840 of the California Public Utilities Code, or until January 1, 2009, whichever is later.
(Ord. 454 § 2, 2007: Ord. 455U § 2, 2007)
Article III. - Open Video Systems
13.12.200 - Applicability.
The provisions of this article are applicable to an open video system operator, as defined below in
Article V, that intends to deliver video programming to consumers in the city over an open video system.
(Ord. 339 § 2 (part), 1998)
13.12.210 - Application required.
A. Before commencing the delivery of video programming services to consumers in the city over an open
video system, the open video system operator must file an application with the city. That application
must include or be accompanied by the following, as applicable:
The identity of the applicant, including all affiliates of the applicant.
2. Copies of FCC Form 1275, all "Notices of Intent" filed under 47 CFR Section 76.1503(b) (1), and the
Order of the FCC, all of which relate to certification of the applicant to operate an open video
system in accordance with Section 653(a) (1) of the Communications Act and the FCC's rules.
3. The area or areas of the city that the applicant desires to serve.
4. A description of the open video system services that will be offered by the applicant over its existing
or proposed facilities
5. A description of the transmission medium that will be used by the applicant to deliver the open
video system services.
6. Information in sufficient detail to establish the applicant's technical qualifications, experience, and
expertise regarding the ownership and operation of the open video system described in the
application.
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7. Financial statements prepared in accordance with generally accepted accounting principles that
demonstrate the applicant's financial ability to:
Construct, operate, maintain and remove any new physical plant that is proposed to be
constructed in the city.
b. Comply with the city's public, educational, and governmental access requirements as specified
below in Section 13.12.230 (13)(4).
c. Comply with the city's requirement that gross revenue fees be paid in the sum of five percent,
as specified below in Section 13.12.230 (13)(2).
8. An accurate map showing the location of any existing telecommunications facilities in the city that
the applicant intends to use, to purchase, or to lease.
9. If the applicant's operation of the open video system will require the construction of new physical
plant in the city, the following additional information must be provided:
a. A preliminary construction schedule and completion dates.
b. Preliminary engineering plans, specifications, and a network map of any new facilities to be
constructed in the city, in sufficient detail to identify:
The location and route requested for the applicant's proposed facilities.
The locations, if any, for interconnection with the facilities of other telecommunications
service providers.
iii. The specific structures, improvements, facilities, and obstructions, if any, that the applicant
proposes to remove or relocate on a temporary or permanent basis.
c. The applicant's statement that, in constructing any new physical plant, the applicant will comply
with all applicable ordinances, rules, and regulations of the city, including the payment of all
required permit and processing fees.
10. The information and documentation that is required to be submitted to the city by a video
provider, as specified below in subsection B of Section 13.12.310.
11. Such additional information as may be requested by the city manager.
12. A nonrefundable filing fee in an amount established by resolution of the city council.
B. If any item of information specified above in subsection A of this section is determined under
paramount federal or state law to be unlawful, the city manager is authorized to waive the requirement
that such information be included in the application.
(Ord. 339 § 2 (part), 1998)
13.12.220 - Review of the application.
Within thirty days after receipt of an application filed under Section 13.12.210 that is deemed to be
complete, the city manager will give written notice to the applicant of the city's intent to negotiate an
agreement setting forth the terms and conditions under which the operation of the proposed open video
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system will be authorized by the city. The commencement of those negotiations will be on a date that is
mutually acceptable to the city and to the applicant.
(Ord. 339 § 2 (part), 1998)
13.12.230 - Agreement required.
A. No video programming services may be provided in the city by an open video system operator unless
the operator and the city have executed a written agreement setting forth the terms and conditions
under which the operation of the proposed open video system will be authorized by the city.
B. The agreement between the city and the open video system operator may contain terms and conditions
that relate to the following subject matters, to the extent that such terms, conditions, and subject
matters are not preempted by federal statute or regulations:
The nature, scope, and duration of the agreement, including provisions for its renewal or extension.
2. The obligation of the open video system operator to pay to the city, at specified times, fees on the
gross revenues received by the operator, as authorized by 47 CFR Section 76.1511, in accordance
with the following standards and procedures:
a. The amount of the fees on the gross revenues will be five percent, and will be paid in lieu of the
franchise fees permitted under Section 622 of the Communications Act.
b. The term "gross revenues" means (i) all gross revenues received by an open video system
operator or its affiliates, including all revenues received from subscribers and all carriage
revenues received from unaffiliated video programming providers; and (ii) all advertising
revenues received by the operator or its affiliates in connection with the provision of video
programming, where such revenues are included in the calculation of the cable franchise fee
paid to the city by the franchised cable operator. The term "gross revenues" does not include
revenues, such as subscriber or advertising revenues, collected by unaffiliated video
programming providers.
3. The obligation of the open video system operator to comply with requirements relating to
information collection and recordkeeping, accounting procedures, reporting, periodic audits, and
inspection of records in order to ensure the accuracy of the fees on the gross revenues that are
required to be paid as specified above in subsection (13)(2) of this section.
4. The obligation of the open video system operator to meet the city's requirements with respect to
public, educational, and governmental access channel capacity, services, facilities, and equipment,
as provided for in 47 CFR Section 76.1505. In this regard, the following standards and procedures
are applicable:
a. The open video system operator is subject to the same public, educational, and governmental
access requirements that apply within the cable television franchise service area with which its
system overlaps.
b.
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The open video system operator must ensure that all subscribers receive all public,
educational, and governmental access channels within the franchise service area in which the
city's subscribers are located.
c. The open video system operator may negotiate with the city to establish the operator's
obligations with respect to public, educational, and governmental access channel capacity,
services, facilities, and equipment. These negotiations may include the city's franchised cable
operator if the city, the open video system operator, and the franchised cable operator so
desire.
d. If the open video system operator and the city are unable to reach an agreement regarding the
operator's obligations with respect to public, educational, and governmental access channel
capacity, services, facilities, and equipment within the city's jurisdiction, then the following
obligations will be imposed:
i. The open video system operator must satisfy the same public, educational, and
governmental access obligations as the city's franchised cable operator by providing the
same amount of channel capacity for public, educational, and governmental access and by
matching the city's franchised cable operator's annual financial contributions in support of
public, educational, and governmental access services, facilities, and equipment that are
actually used by the city. For in-kind contributions, such as cameras or production studios,
the open video system operator may satisfy its statutory obligation by negotiating mutually
agreeable terms with the city's franchised cable operator, so that public, educational, and
governmental access services to the city are improved or increased. If such terms cannot
be agreed upon, the open video system operator must pay to the city the monetary
equivalent of the franchised cable operator's depreciated in-kind contribution, or, in the
case of facilities, the annual amortization value. Any matching contributions provided by
the open video system operator must be used to fund activities arising under Section 611
of the Communications Act.
ii. The city will impose upon the open video system operator the same rules and procedures
that it imposes upon the franchised cable operator with regard to the open video system
operator's use of channel capacity designated for public, educational, and governmental
access use when that capacity is not being used for such purposes.
e. The city's franchised cable operator is required under federal law to permit the open video
system operator to connect with its public, educational, and governmental access channel
feeds. The open video system operator and the franchised cable operator may decide how to
accomplish this connection, taking into consideration the physical and technical characteristics
of the cable and the open video systems involved. If the franchised cable operator and the
open video system operator cannot agree on how to accomplish the connection, the city has
the right to decide. The city may require that the connection occur on city -owned property or
on public rights-of-way.
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All costs of connection to the franchised cable operator's public, educational, and
governmental access channel feed must be borne by the open video system operator. These
costs will be counted towards the open video system operator's matching financial
contributions set forth above in subsection (13)(4)(d)(i) of this section.
g. The city will not impose upon the open video system operator any public, educational, or
governmental access obligations that are greater than those imposed upon the franchised
cable operator.
h. If there is no existing franchised cable operator, the provisions of 47 CFR Section 76.1505(d)(6)
will be applicable in determining the obligations of the open video system operator.
The open video system operator must adjust its system to comply with new public, educational,
and access obligations imposed on the city's franchised cable operator following a renewal of
the cable television franchise; provided, however, that the open video system operator will not
be required to displace other programmers using its open video system to accommodate
public, educational, and governmental access channels. The open video system operator must
comply with such new public, educational, and governmental access obligations whenever
additional capacity is or becomes available, whether it is due to increased channel capacity or
to decreased demand for channel capacity.
5. If the city and the open video system operator cannot agree as to the application of the FCC's rules
regarding the open video system operator's obligations to provide public, educational, and
governmental access under the provisions of subsection (13)(4) of this section, then either party may
file a complaint with the FCC in accordance with the dispute resolution procedures set forth in 47
CFR Section 76.1514. No agreement will be executed by the city until the dispute has been finally
resolved.
6. If the open video system operator intends to maintain an institutional network, as defined in
Section 611(f) of the Communications Act, the city will require that educational and governmental
access channels be designated on that institutional network to the same extent that those channels
are designated on the institutional network of the city's franchised cable operator.
7. The authority of an open video system provider to exercise editorial control over any public,
educational, or governmental use of channel capacity will be restricted in accordance with the
provisions of 47 CFR Section 76.1505(f).
8. The obligation of the open video system operator to comply with all applicable federal and state
statutes and regulations relating to customer service standards, including the Cable Television and
Video Customer Service and Information Act (Government Code Sections 53054, et seq.), and the
Video Customer Service Act (Government Code Sections 53088, et seq.)
9. If new physical plant is proposed to be constructed within the city, the obligation of the open video
system operator to comply with the following rights-of-way use and management responsibilities
that are also imposed by the city upon other telecommunications service providers in a
nondiscriminatory and competitively neutral manner:
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Compliance with all applicable city building and zoning codes, including applications for
excavation, encroachment, and construction permits and the payment of all required permit
and inspection fees.
b. The coordination of construction requirements.
c. Compliance with established standards and procedures for constructing lines across private
property.
d. Compliance with all applicable insurance and indemnification requirements.
e. The repair and resurfacing of construction -damaged streets.
Compliance with all public safety requirements that are applicable to telecommunications
service providers using public property or public rights-of-way.
10. Acts or omissions constituting breaches or defaults of the agreement, and the applicable penalties,
liquidated damages, and other remedies, including fines or the suspension, revocation, or
termination of the agreement.
11. Requirements relating to the sale, assignment, or transfer of the open video system.
12. Requirements relating to the open video system operator's compliance with and implementation
of state and federal laws, rules, and regulations pertaining to the operation of the open video
system.
13. Such additional requirements, conditions, terms, policies, and procedures as may be mutually
agreed upon by the city and the open video system operator and that will, in the judgment of the
city council, best serve the public interest and protect the public health, welfare, and safety.
(Ord. 339 § 2 (part), 1998)
Article IV. - Other Telecommunications Services and Systems
13.12.300 - Other multichannel video programming distributors.
The term "cable system," as defined in federal law and as set forth in Article V below, does not include a
facility that serves subscribers without using any public rights-of-way. Consequently, the categories of
multichannel video programming distributors identified below are not deemed to be "cable systems" and
are therefore exempt from the city's franchise requirements and from certain other local regulatory
provisions authorized by federal law, provided that their distribution or transmission facilities do not involve
the use of the city's public rights-of-way.
A. Multichannel multipoint distribution service ("MMDS"), also known as "wireless cable," which
typically involves the transmission by an FCC -licensed operator of numerous broadcast stations
from a central location using line -of -sight technology.
a
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Local multipoint distribution service ("LMDS"), another form of over -the -air wireless video service
for which licenses are auctioned by the FCC, and which offers video programming, telephony, and
data networking services.
C. Direct broadcast satellite ("DBS"), also referred to as "direct -to -home satellite services," which
involves the distribution or broadcasting of programming or services by satellite directly to the
subscriber's premises without the use of ground receiving or distribution equipment, except at the
subscriber's premises or in the uplink process to the satellite. Local regulation of direct -to -home
satellite services is further proscribed by the following federal statutory provisions:
47 U.S.C. Section 303(v) confers upon the FCC exclusive jurisdiction to regulate the provision of
direct -to -home satellite services
2. Section 602 of the Communications Act states that a provider of direct -to -home satellite service
is exempt from the collection or remittance, or both, of any tax or fee imposed by any local
taxing jurisdiction on direct -to -home satellite service. The terms "tax" and "fee" are defined by
federal statute to mean any local sales tax, local use tax, local intangible tax, local income tax,
business license tax, utility tax, privilege tax, gross receipts tax, excise tax, franchise fees, local
telecommunications tax, or any other tax, license, or fee that is imposed for the privilege of
doing business, regulating, or raising revenue for a local taxing jurisdiction.
(Ord. 339 § 2 (part), 1998)
13.12.310 - Video providers—Registration—Customer service standards.
A. Unless the customer protection and customer service obligations of a video provider, as that term is
defined in Article V, are specified in a franchise, license, lease, or similar written agreement with the city,
a video provider must comply with all applicable provisions of the following state statutes:
The Cable Television and Video Customer Service and Information Act (Government Code Sections
53054, et seq.)
2. The Video Customer Service Act (Government Code Sections 53088, et seq.)
B. All video providers that are operating in the city on the effective date of the ordinance codified in this
chapter, or that intend to operate in the city after the effective date of said ordinance, must register
with the city. The registration form must include or be accompanied by the following:
The video provider's name, address, and local telephone numbers.
2. The names of the officers of the video provider.
3. A copy of the video provider's written policies and procedures relating to customer service
standards and the handling of customer complaints, as required by Government Code Sections
53054, et seq. These customer service standards must include, without limitation, standards
regarding the following:
Installation, disconnection, service and repair obligations, employee identification, and service
call response time and scheduling.
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b. Customer telephone and office hours.
c. Procedures for billing, charges, refunds, and credits.
d. Procedures for termination of service.
e. Notice of the deletion of a programming service, the changing of channel assignments, or an
increase in rates.
Complaint procedures and procedures for bill dispute resolution.
g. The video provider's written commitment to distribute annually to the city, and to its
employees and customers, a notice describing the customer service standards specified above
in subsections (B)(3)(a) through (f) of this section. This annual notice must include the report of
the video provider on its performance in meeting its customer service standards, as required
by Government Code Section 53055.2.
4. Unless a video provider is exempt under federal law from its payment, a registration fee in an
amount established by resolution of the city council to cover the reasonable costs incurred by the
city in reviewing and processing the registration form.
5. In addition to the registration fee specified above in subsection (13)(4) of this section, the written
commitment of the video provider to pay to the city, when due, all costs and expenses reasonably
incurred by the city in resolving any disputes between the video provider and its subscribers, which
dispute resolution is mandated by Government Code Section 53088.2(o).
C. The city council may establish by ordinance a schedule of monetary penalties for the material breach by
a video provider of its obligations under subparagraphs (a) through (n) of Government Code Section
53088.2. As used herein, the term "material breach" means any substantial and repeated failure to
comply with the consumer service standards set forth in Government Code Section 53088.2. The
provisions of that ordinance must be consistent with the provisions of Government Code Section
53088.2. The schedule of monetary penalties may also impose a penalty, as authorized by Government
Code Section 53056(a), for the failure of a video provider to distribute the annual notice required by
Government Code Section 53055.1, which penalty may not exceed $500 for each year in which the
notice is not distributed as required by state statute.
(Ord. 339 § 2 (part), 1998)
13.12.320 - Antennas for telecommunications services.
A. Section 17.76.020 (Antennas) of Chapter 17.76 (Miscellaneous Permits and Standards) of Title 17
(Zoning) of this code sets forth the city's regulatory requirements relating to the siting and construction
of the following categories of antennas that are commonly used in providing or receiving
telecommunications services:
Satellite earth station antennas, (also known as "satellite dish antennas"), which are parabolic or
dish -shaped antennas which are in excess of one meter in diameter or devices that are designed
for over -the -air reception of radio or television broadcast signals, multichannel multipoint
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distribution service, or direct broadcast satellite services.
2. Commercial antennas, which are unstaffed facilities for the transmission or reception of radio,
television, and communications signals, commonly consisting of an antenna array, connection
cables, a support structure to achieve the necessary elevation, and an equipment facility to house
accessory equipment, which may include cabinets, pedestals, shelters, and similar protective
structures.
B. Notwithstanding any other provision of this chapter, Chapter 12.18 (Wireless Telecommunications
Facilities in the Public Right -of -Way) of this code shall apply to siting, modification and construction of
wireless telecommunication facilities, as defined therein, which in whole or in part, itself or as part of
another structure, rests upon, in, over or under the public right-of-way, including, but not limited to, any
such facility owned, controlled, operated or managed by an entity entitled to construct within the right-
of-way pursuant to a franchise with the city or state law.
(Ord. 339 § 2 (part), 1998)
(Ord. No. 578U, § 3, 1-19-16; Ord. No. 580, § 3, 3-15-16)
13.12.330 - Telecommunications service provided by telephone corporations.
A. The city council finds and determines as follows:
The Federal Telecommunications Act of 1996 preempts and declares invalid all state rules that
restrict entry or limit competition in both local and long-distance telephone service.
2. The California Public Utilities Commission ("CPUC") is primarily responsible for the implementation
of local telephone competition, and it issues certificates of public convenience and necessity to new
entrants that are qualified to provide competitive local telephone exchange services and related
telecommunications service, whether using their own facilities or the facilities or services provided
by other authorized telephone corporations.
3. Section 234(a) of the California Public Utilities Code defines a "telephone corporation" as "every
corporation or person owning, controlling, operating, or managing any telephone line for
compensation within this state."
4. Section 616 of the California Public Utilities Code provides that a telephone corporation "may
condemn any property necessary for the construction and maintenance of its telephone line."
5. Section 2902 of the California Public Utilities Code authorizes municipal corporations to retain their
powers of control to supervise and regulate the relationships between a public utility and the
general public in matters affecting the health, convenience, and safety of the general public,
including matters such as the use and repair of public streets by any public utility and the location
of the poles, wires, mains, or conduits of any public utility on, under, or above any public streets.
6. Section 7901 of the California Public Utilities Code authorizes telephone and telegraph corporations
to construct telephone or telegraph lines along and upon any public road or highway, along or
across any of the waters or lands within this state, and to erect poles, posts, piers, or abatements
m
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for supporting the insulators, wires, and other necessary fixtures of their lines, in such manner and
at such points as not to incommode the public use of the road or highway or interrupt the
navigation of the waters.
7. Section 7901.1 of the California Public Utilities Code confirms the right of municipalities to exercise
reasonable control as to the time, place, and manner in which roads, highways, and waterways are
accessed, which control must be applied to all entities in an equivalent manner, and may involve
the imposition of fees
8. Section 50030 of the California Government Code provides that any permit fee imposed by a city
for the placement, installation, repair, or upgrading of telecommunications facilities, such as lines,
poles, or antennas, by a telephone corporation that has obtained all required authorizations from
the CPUC and the FCC to provide telecommunications services, must not exceed the reasonable
costs of providing the service for which the fee is charged, and must not be levied for general
revenue purposes.
B. In recognition of and in compliance with the statutory authorizations and requirements set forth above
in subsection A of this section, the following regulatory provisions are applicable to a telephone
corporation that desires to provide telecommunications service by means of facilities that are proposed
to be constructed within the city's public rights-of-way:
1. The telephone corporation must apply for and obtain, as may be applicable, an excavation permit,
an encroachment permit, or a building permit ("ministerial permit")
2. In addition to the information required by this code in connection with an application for a
ministerial permit, a telephone corporation must submit to the city the following supplemental
information:
a. A copy of the certificate of public convenience and necessity issued by the CPUC to the
applicant, and a copy of the CPUC decision that authorizes the applicant to provide the
telecommunications service for which the facilities are proposed to be constructed in the city's
public rights-of-way.
b. If the applicant has obtained from the CPUC a certificate of public convenience to operate as a
"competitive local carrier," the following additional requirements are applicable:
As required by Decision No. 95-12-057 of the CPUC, the applicant must establish that it has
timely filed with the city a quarterly report that describes the type of construction and the
location of each construction project proposed to be undertaken in the city during the
calendar quarter in which the application is filed, which information is sufficient to enable
the city to coordinate multiple projects, as may be necessary.
If the applicant's proposed construction project will extend beyond the utility rights-of-way
into undisturbed areas or other rights-of-way, the applicant must establish that it has filed
a petition with the CPUC to amend its certificate of public convenience and necessity and
that the proposed construction project has been subjected to a full-scale environmental
analysis by the CPUC, as required by Decision No. 95-12-057 of the CPUC.
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iii. The applicant must inform the city whether its proposed construction project will be
subject to any of the mitigation measures specified in the negative declaration
["Competitive Local Carriers" (CLCs) Projects for Local Exchange Communication Service
throughout California] or to the mitigation monitoring plan adopted in connection with
Decision No. 95-12-057 of the CPUC. The city's issuance of a ministerial permit will be
conditioned upon the applicant's compliance with all applicable mitigation measures and
monitoring requirements imposed by the CPUC upon telephone corporations that are
designated as "competitive local carriers."
C. In recognition of the fact that numerous excavations in the public rights-of-way diminish the useful life
of the surface pavement, and for the purpose of mitigating the adverse impacts of numerous
excavations on the quality and longevity of public street maintenance within the city, the following
policies and procedures are adopted:
The city manager is directed to ensure that all public utilities, including telephone corporations,
comply with all local design, construction, maintenance and safety standards that are contained
within, or are related to, a ministerial permit that authorizes the construction of facilities within the
public rights-of-way.
2. The city manager is directed to coordinate the construction and installation of facilities by public
utilities, including telephone corporations, in order to minimize the number of excavations in the
public rights-of-way. In this regard, based upon projected plans for street construction or
renovation projects, the city manager is authorized to establish on a quarterly basis one or more
construction time periods or "windows" for the installation of facilities within the public rights-of-
way. Telephone corporations and other public utilities that submit applications for ministerial
permits to construct facilities after a predetermined date may be required to delay such
construction until the next quarterly "window" that is established by the city.
D. Chapter 9.04 of Title 9 of this Code sets forth the city's regulatory requirements that apply to the
installation and operation of burglar alarm devices within the city.
(Ord. 339 § 2 (part), 1998)
Article V. - Definitions
13.12.400 - Defined terms and phrases.
A. For the purposes of this chapter, the words, terms, phrases, and their derivations set forth in this article
have the meanings set forth below. Words used in the present tense include the future tense, and
words in the singular include the plural number.
"Affiliate" means, when used in relation to any person, another person who owns or controls, is owned
or controlled by, or is under common ownership or control with, such person. For purposes of this
definition, the term "own" means to own an equity interest, or its equivalent, of ten percent or more.
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"Cable service" means the one-way transmission to subscribers of video programming, or other
programming services, and subscriber interaction, if any, that is required for the selection or use of that
video programming or other programming service. For the purposes of this definition, "video programming'
means programming provided by, or generally considered comparable to programming provided by, a
television broadcast station; and "other programming service" means information that a cable system
operator makes available to all subscribers generally.
"Cable system," or "cable communications system" or "cable television system," means a facility,
consisting of a set of closed transmission paths and associated signal generation, reception, and control
equipment that is designed to provide cable service that includes video programming and that is provided
to multiple subscribers within a community. The term "cable system" does not include:
a. A facility that serves only to retransmit the television signals of one or more television broadcast
stations;
b. A facility that serves subscribers without using any public right-of-way;
c. A facility of a common carrier that is subject, in whole or in part, to the provisions of Title II of the
Telecommunications Act of 1996, except that such facility will be considered a cable system (other
than for purposes specified in Section 621(c) of the 1984 Cable Act) to the extent such facility is
used in the transmission of video programming directly to subscribers, unless the extent of such
use is solely to provide interactive on -demand services;
d. An open video system that complies with Section 653 of Title VI of the Telecommunications Act of
1996; or
e. Any facilities of an electric utility that are used solely for operating its electric utility system.
"Cable system operator" means any person or group of persons:
a. Who provides cable service over a cable system and directly or through one or more affiliates owns
a significant interest in that cable system; or
b. Who otherwise controls or is responsible for, through any arrangement, the management and
operation of that cable system.
"City" means the city of Rancho Palos Verdes as represented by its city council or by any delegate acting
within the scope of its delegated authority.
CFR Section " means the Code of Federal Regulations. Thus, the citation of "47
CFR 80.1" refers to Title 47, part 80, section 1, of the Code of Federal Regulations.
"Communications Act" means the Communications Act of 1934 (47 U.S.C. Sections 153, et seq.), as
amended by the Cable Communications Policy Act of 1984, the Cable Television Consumer Protection and
Competition Act of 1992, and the Telecommunications Act of 1996.
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"FCC" or "Federal Communications Commission" means the federal administrative agency, or any lawful
successor, that is authorized to regulate telecommunications services and telecommunications service
providers on a national level.
"Franchise" means an initial authorization, or the renewal of an initial authorization, issued by the city
council, whether such authorization is designated as a franchise, permit, license, resolution, contract,
certificate, agreement, or otherwise, that authorizes the construction or operation of a cable system.
"Franchise fee" means any fee or assessment of any kind that is authorized by state or federal law to be
imposed by the city on a grantee as compensation in the nature of rent for the grantee's use of the public
rights-of-way. The term "franchise fee" does not include:
a. Any tax, fee, or assessment of general applicability (including any such tax, fee, or assessment
imposed on both utilities and cable operators or their services);
b. Capital costs that are required by the franchise to be incurred by grantee for public, educational, or
governmental access facilities;
c. Costs or charges that are incidental to the award or enforcement of the franchise, including
payments for bonds, security funds, letters of credit, insurance, indemnification, penalties, or
liquidated damages; or
d. Any fee imposed under Title 17, United States Code.
"Franchise service area" or "service area" means the entire geographic area of the city as it is now
constituted, or may in the future be constituted, unless otherwise specified in the ordinance or resolution
granting a franchise, or in an franchise agreement.
"Grantee" means any person that is awarded a franchise in accordance with this chapter, and that
person's lawful successor, transferee, or assignee.
"Gross annual cable service revenues" means the annual gross revenues received by a grantee from all
operations of its cable television system within the city, excluding uncollected bad debt, refundable
deposits, rebates or credits, and further excluding any sales, excise, or other taxes or charges that are
required to be collected for direct pass-through to the local, state or federal government. Revenues
identified and collected from subscribers as franchise fees may not be excluded from a grantee's gross
annual cable service revenues.
"Gross annual telecommunications service revenues" means the annual revenues received by a grantee
from the operation of a cable system to provide telecommunications services other than video
programming services.
"Multichannel video programming distributor" or "video programming distributor" means a person
such as, but not limited to, a cable system operator, a multichannel multipoint distribution service, a direct
broadcast satellite service, or a television receive -only satellite program distributor, who makes available
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multiple channels of video programming for purchase by subscribers or customers.
"Open video system" means a facility consisting of a set of transmission paths and associated signal
generation, reception, and control equipment that is designed to provide cable service, including video
programming, and that is provided to multiple subscribers within the city, provided that the FCC has
certified that such system complies with 47 CFR Section 1500 et seq., entitled "Open Video Systems."
"Open video system operator" means any person or group of persons who provides cable service over
an open video system and directly or through one or more affiliates, owns a significant interest in that open
video system, or otherwise controls or is responsible for the management and operation of that open video
system.
"Person" means an individual, partnership, association, joint stock company, trust, corporation, or
governmental entity.
"Public, educational or government access facilities" or "PEG access facilities," means the total of the
following:
a. Channel capacity designated for noncommercial public, educational, or government use; and
b. Facilities and equipment for the use of that channel capacity.
"Subscriber" or "customer" or "consumer" means any person who, for any purpose, subscribes to the
services provided by a multichannel video programming distributor and who pays the charges for those
services.
"Street" or "public way" means each of the following that has been dedicated to the public and
maintained under public authority or by others and is located within the city limits: streets, roadways,
highways, avenues, lanes, alleys, sidewalks, easements, rights-of-way, and similar public property that the
city from time to time authorizes to be included within the definition of a street.
"Telecommunications" means the transmission, between or among points specified by the user, of
information of the user's choosing, without change in the form or content of the information as sent and
received.
"Telecommunications equipment" means equipment, other than customer premises equipment, used
by a telecommunications service provider to provide telecommunications service, including software that is
integral to that equipment.
"Telecommunications service" means the offering of telecommunications directly to the public for a fee,
or to such classes of users as to be effectively available directly to the public, regardless of the equipment or
facilities that are used.
"Telecommunications service provider" means any provider of telecommunications service.
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" U.S.C. Section " means the United States Code. Thus, the citation of "47 U.S.C. Section 153"
refers to Title 47, section 153, of the United States Code.
"Video programming provider" means any person or group of persons who has the right under the
federal copyright laws to select and to contract for the carriage of specific video programming on an open
video system.
"Video provider" means any person, company, or service that provides one or more channels of video
programming to a residence, including a home, condominium, apartment, or mobilehome, where some fee
is paid for that service, whether directly or as included in dues or rental charges, and whether or not public
rights-of-way are used in the delivery of that video programming. A "video provider" includes, without
limitation, providers of cable television service, master antenna television, satellite master antenna
television, direct broadcast satellite, multipoint distribution services, and other providers of video
programming, whatever their technology.
B. Unless otherwise expressly stated, words, terms, and phrases not defined in this article will be given
their meaning as used in Title 47 of the United States Code, as amended, and, if not defined in that
Code, their meaning as used in Title 47 of the Code of Federal Regulations.
(Ord. 339 § 2 (part), 1998)
Article VI. - Violations—Severability
13.12.500 - Violations—Enforcement.
A. Any person who wilfully violates any provision of this chapter is guilty of a misdemeanor and is
punishable as provided for in Chapter 1.08 of Title 1 of this Code.
B. The misdemeanor penalty specified above in subsection A of this section is not applicable to a violation
of any provision of this chapter for which another sanction or penalty may be imposed under any
franchise, license, lease, or similar written agreement between the city and a multichannel video
programming distributor or other telecommunications service provider.
C. The city may initiate a civil action in any court of competent jurisdiction to enjoin any violation of this
chapter.
(Ord. 339 § 2 (part), 1998)
13.12.510 - Severability.
If any provision of this chapter is determined by any court of competent jurisdiction, or by any federal
or state agency having jurisdiction over its subject matter, to be invalid and in conflict with any paramount
federal or state law or regulation now or hereafter in effect, or is determined by that court or agency to
require modification in order to conform to the requirements of that paramount law or regulation then that
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provision will be deemed a separate, distinct, and independent part of this chapter, and such determination
will not affect the validity and enforceability of any other provisions. If that paramount federal or state law
or regulation is subsequently repealed or amended so that the provision of this chapter determined to be
invalid or subject to modification is no longer in conflict with that law or regulation, then that provision will
again become effective and will thereafter be binding on the city and any affected telecommunications
service provider; provided, however, that the city must give the affected telecommunications service
provider thirty days written notice of that change before requiring compliance with that provision, or such
longer period of time as may be reasonably required for the telecommunications service provider to comply
with that provision.
(Ord. 339 § 2 (part), 1998)
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RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 05/02/2017
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action to direct Staff to prepare a Video Provider Customer
Service Standards ordinance.
RECOMMENDED COUNCIL ACTION:
(1) Discuss the feasibility and desirability of enacting a Video Provider Customer
Service Standards ordinance pursuant to the Digital Infrastructure and Video
Competition Act and Section 13.12.310(C) of the Rancho Palos Verdes Municipal
Code.
FISCAL IMPACT: Enacting a Video Provider Customer Service Standards ordinance
would authorize the City to assess monetary penalties for material breaches of video
providers' customer service standards. Enforcement of such an ordinance may
increase the City's legal costs in the event that litigation is pursued against video
providers. Penalty revenues and legal costs are too speculative to realistically estimate
at this time.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Kit Fox, AICP, Senior Administrative Analyst
REVIEWED BY: Gabriella Yap, Deputy City Manager.J�-
APPROVED BY: Doug Willmore, City Manager fes'
ATTACHED SUPPORTING DOCUMENTS:
A. RPVMC 13.12.310 (page A-1)
B. Cable Television and Video Customer Service and Information Act (page
B-1)
C. Video Customer Service Act (page C-1)
D. Digital Infrastructure and Video Competition Act (page D-1)
E. California Public Utilities Commission FAQs about DIVCA (page E-1)
BACKGROUND AND DISCUSSION:
In 1998, the City Council adopted Ordinance No. 339, the City's Telecommunications
Regulatory Ordinance, which was codified as Chapter 13.12 of the Rancho Palos
Verdes Municipal Code (RPVMC). The ordinance established regulations for cable
television systems, open video systems, and other telecommunications services and
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systems, including the procedures for granting local franchise agreements. RPVMC
Section 13.12.310(C) (Attachment A) provided the authority for the City to enact an
ordinance to establish monetary penalties for a video provider's material breach of
customer service standards set forth in the Cable Television and Video Customer
Service and Information Act (Attachment B) and the Video Customer Service Act
(Attachment C), although this authority has been superseded by recent legislation
discussed below. Under the terms of the City's previous local franchise agreement with
Cox Communications (Cox), however, the City Council did not previously feel the need
to enact such an ordinance since the franchise agreement generally provided the City
with the necessary leverage to ensure that residents' customer service issues were
dealt with appropriately by Cox.
In 2006, this all began to change with the enactment of the Digital Infrastructure and
Video Competition Act (DIVCA) (Attachment D). DIVCA shifted franchise agreement
authority from local agencies to the California Public Utilities Commission (CPUC), but
obliged local agencies to retain the responsibility for enforcing customer service
standards (Attachment E). Since the City's franchise agreement with Cox expired in
October 2015, Staff has received anecdotal reports that residents' customer service
complaints have not been addressed timely by Cox. Staff reached out to Cox's
Government Affairs Division and was advised that the City retains the option to adopt an
ordinance to impose monetary penalties for material breaches of Cox's customer
service standards under DIVCA.
Staff has researched the municipal codes of other California cities that have adopted
ordinances to establish monetary penalties for violations of customer service standards
by video providers. Most of these ordinances appear to be modeled directly after
DIVCA Section 5900 (p. D-12 of Attachment D), which states that:
• Video providers must comply with specified provisions of the Cable Television
and Video Customer Service and Information Act and the Video Customer
Service Act.
• Local jurisdictions may impose penalties of $500 per day ($1,500 maximum per
occurrence) for a material breach of these provisions, with the ability to increase
these penalties to $1,000 per day/$3,000 per occurrence and $2,500 per
day/$7,500 per occurrence in the event of second and third material breaches,
respectively, within a 12 -month period.
• Local jurisdictions must notify video providers of a material breach in writing, and
video providers have thirty (30) days from receipt to remedy the breach;
monetary penalties may be imposed if the breach is not timely remedied.
• "Material breach" is defined as any substantial and repeated failure of a video
service provider to comply with specified service quality and other standards.
Enacting a Video Provider Customer Service Standards ordinance would authorize the
City to assess monetary penalties for material breaches of video providers' customer
service standards. Hopefully, this would provide an incentive for Cox to respond to
resident complaints more fully and timely than has been the case recently.
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CONCLUSION:
As a result of the enactment of DIVCA, the City retains the responsibility for responding
to customer service complaints regarding Cox. Adopting an ordinance to allow the City
to assess monetary penalties against Cox is authorized by both DIVCA. Since the City
no longer has a local franchise agreement with Cox to use a leverage to ensure that
customer service complaints are dealt with appropriately and timely, Staff believes that
it would be appropriate to amend RPVMC Chapter 13.12 to enact a Video Provider
Customer Service Standards ordinance. In addition, since the enactment of DIVCA has
made fundamental changes in the nature of franchises for video providers, it may be
appropriate to completely overhaul Chapter 13.12 to be consistent with the provisions of
DIVCA.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action is available for
the City Council's consideration:
Discuss and provide direction to Staff regarding the City's role in
addressing video provider customer service complaints by some means
other than a Video Provider Customer Service Standards ordinance.
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13.12.310 - Video providers—Registration—Customer service standards.
A. Unless the customer protection and customer service obligations of a video provider, as that term is
defined in Article V, are specified in a franchise, license, lease, or similar written agreement with the city,
a video provider must comply with all applicable provisions of the following state statutes:
The Cable Television and Video Customer Service and Information Act (Government Code Sections
53054, et seq.)
2. The Video Customer Service Act (Government Code Sections 53088, et seq.)
B. All video providers that are operating in the city on the effective date of the ordinance codified in this
chapter, or that intend to operate in the city after the effective date of said ordinance, must register
with the city. The registration form must include or be accompanied by the following:
1. The video provider's name, address, and local telephone numbers.
2. The names of the officers of the video provider.
3. A copy of the video provider's written policies and procedures relating to customer service
standards and the handling of customer complaints, as required by Government Code Sections
53054, et seq. These customer service standards must include, without limitation, standards
regarding the following:
Installation, disconnection, service and repair obligations, employee identification, and service
call response time and scheduling.
b. Customer telephone and office hours.
c. Procedures for billing, charges, refunds, and credits.
d. Procedures for termination of service.
e. Notice of the deletion of a programming service, the changing of channel assignments, or an
increase in rates.
Complaint procedures and procedures for bill dispute resolution.
g. The video provider's written commitment to distribute annually to the city, and to its
employees and customers, a notice describing the customer service standards specified above
in subsections (13)(3)(a) through (f) of this section. This annual notice must include the report of
the video provider on its performance in meeting its customer service standards, as required
by Government Code Section 53055.2.
4. Unless a video provider is exempt under federal law from its payment, a registration fee in an
amount established by resolution of the city council to cover the reasonable costs incurred by the
city in reviewing and processing the registration form.
5. In addition to the registration fee specified above in subsection (13)(4) of this section, the written
commitment of the video provider to pay to the city, when due, all costs and expenses reasonably
incurred by the city in resolving any disputes between the video provider and its subscribers, which
dispute resolution is mandated by Government Code Section 53088.2(o).
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C. The city council may establish by ordinance a schedule of monetary penalties for the material breach by
a video provider of its obligations under subparagraphs (a) through (n) of Government Code Section
53088.2. As used herein, the term "material breach" means any substantial and repeated failure to
comply with the consumer service standards set forth in Government Code Section 53088.2. The
provisions of that ordinance must be consistent with the provisions of Government Code Section
53088.2. The schedule of monetary penalties may also impose a penalty, as authorized by Government
Code Section 53056(x), for the failure of a video provider to distribute the annual notice required by
Government Code Section 53055.1, which penalty may not exceed $500 for each year in which the
notice is not distributed as required by state statute.
(Ord. 339 § 2 (part), 1998)
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GOVERNMENT CODE - GOV
TITLE 5. LOCAL AGENCIES [50001 - 57550] ( Title 5 added by Stats. 1949, Ch. 81. )
DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81
PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7]
Part 1 added by Stats. 1949, Ch. 81. )
CHAPTER 1. General [53000 - 53166] ( Chapter 1 added by Stats. 1949, Ch. 81. )
ARTICLE 3.5. Cable Television and Video Provider Customer Service and Information Act [53054 - 53056] ( Article 3.5
added by Stats. 1992, Ch. 262, Sec. 1. )
53054. This act shall be known and may be cited as the Cable Television and Video Provider Customer Service and
Information Act.
(Added by Stats. 1992, Ch. 262, Sec. 1. Effective January 1, 1993.)
53054.1. The Legislature finds and declares all of the following:
(a) In an unregulated environment, customers of cable and video providers should get their money's worth for the
service they subscribe to, and one way to ensure this is to encourage that customer service standards be
established and that customers be informed to those standards.
(b) Cable television and video providers have made efforts to provide high-quality service to their customers. Cable
television and video providers should continue to establish standards for customer service so as to further the
development of high-quality customer service.
(c) It is not the intent of this article to establish standards for customer service, but to encourage cable television
and video providers to inform their customers about the standards they have established and to work to achieve
these customer service goals.
(Added by Stats. 1992, Ch. 262, Sec. 1. Effective January 1, 1993.)
53054.2. As used in this article:
(a) "Cable television operator" means the person or entity providing cable television services through the cable
television system.
(b) "Cable television system" means a community antenna television system, under common ownership and
control, serving a franchise area or two or more contiguous or electronically connected franchise areas.
(c) "Video provider" means any person, company, or service which provides one or more channels of video
programming to a residence, including a home, condominium, apartment, or mobilehome, where some fee is paid,
whether directly or as included in dues or rental charges, for that service, whether or not public rights-of-way are
utilized in the delivery of the video programming. A "video provider" shall include, but not be limited to, providers of
cable television, master antenna television, satellite master antenna television, direct broadcast satellite,
multipoint distribution service, and other providers of video programming, whatever their technology.
(Added by Stats. 1992, Ch. 262, Sec. 1. Effective January 1, 1993.)
53055. Each cable television operator or video provider in the state shall establish customer service standards.
These customer service standards shall include, but not be limited to, standards regarding the following:
(a) Installation, disconnection, service and repair obligations, employee identification and service call response
time and scheduling.
(b) Customer telephone and office hours; procedures for billing, charges, refunds, and credits.
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(c) Procedures for termination of service.
(d) Notice of the deletion of a programming service, the changing of channel assignments, or an increase in rates.
(e) Complaint procedures and procedures for bill dispute resolution.
(Added by Stats. 1992, Ch. 262, Sec. 1. Effective January 1, 1993.)
53055.1. (a) Each cable television operator or video provider shall annually distribute to employees, to each
customer, and to the city, county, or city and county in which the cable television operator or video provider
furnishes service to customers, a notice describing these customer service standards. New customers shall also be
provided with this notice when service is initiated.
(b) The notice given to new customers pursuant to this section shall include, in addition to all of the information
described in subdivisions (a) to (e), inclusive, of Section 53055, all of the following:
(1) A listing of the services offered by the cable television operator or video provider which clearly describes all
levels of service, and including the rates for each level of service, provided that, if the information concerning levels
of service and rates is otherwise distributed to new customers upon installation by the cable television operator or
video provider, the information need not be included in the notice to new customers required by this section.
(2) The telephone number or numbers through which customers may subscribe to, change, or terminate service,
request customer service, or seek general or billing information.
(3) A description of the rights and remedies which the cable television operator or video provider may make
available to its customers if the cable television operator or video provider does not materially meet its customer
service standards.
(Added by Stats. 1992, Ch. 262, Sec. 1. Effective January 1, 1993.)
53055.2. After the customer service standards established pursuant to Section 53055 have been in effect for one
year, each cable television operator and video provider shall report annually on the performance of that cable
television operator or video provider with regard to meeting its customer service standards. This report shall be
included in the annual notice required by Section 53055.1.
(Added by Stats. 1992, Ch. 262, Sec. 1. Effective January 1, 1993.)
53055.3. No provision of this article shall be construed to preempt the prerogative of a city, county, or city and
county to enforce customer protection standards that are contained in a franchise or license granted to a cable
television operator or video provider pursuant to Section 53066.1 or that are otherwise authorized by law for other
cable television operators or video providers.
(Added by Stats. 1992, Ch. 262, Sec. 1. Effective January 1, 1993.)
53056. (a) The legislative body of the city, county, or city and county in which the cable television operator or video
provider furnishes service to customers may, by ordinance, provide a schedule of penalties for the failure of the
cable television operator or video provider to distribute the annual notice required by Section 53055.1, not to
exceed five hundred dollars ($500) for each year in which the notice is not distributed to all customers.
(b) The city, county, or city and county shall give a cable television operator or video provider written notice of any
alleged failure to distribute to all customers the annual notice required by Section 53055.1 before imposing any
penalty pursuant to subdivision (a). If the cable television operator or video provider distributes this notice to all
customers within 60 days after receipt of the notice from the city, county, or city and county pursuant to this
subdivision, no penalty shall be imposed upon the cable television operator or video provider pursuant to
subdivision (a).
(Added by Stats. 1992, Ch. 262, Sec. 1. Effective January 1, 1993.)
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GOVERNMENT CODE - GOV
TITLE 5. LOCAL AGENCIES [50001 - 57550] ( Title 5 added by Stats. 1949, Ch. 81. )
DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 55821] ( Division 2 added by Stats. 1949, Ch. 81
PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES [53000 - 54999.7]
Part 1 added by Stats. 1949, Ch. 81. )
CHAPTER 1. General [53000 - 53166] ( Chapter 1 added by Stats. 1949, Ch. 81. )
ARTICLE 4.5. Video Customer Service Act [53088 - 53088.2] ( Article 4.5 added by Stats. 1992, Ch. 1198, Sec. 1. )
53088. This article shall be known and may be cited as the Video Customer Service Act.
(Added by Stats. 1992, Ch. 1198, Sec. 1. Effective January 1, 1993.)
53088.1. (a) "Video provider" means any person, company, or service which provides one or more channels of video
programming to a residence, including a home, condominium, or apartment where some fee is paid, whether
directly or as included in dues or rental charges, for that service, whether or not public rights-of-way are utilized in
the delivery of the video programming. A "video provider" shall include, but not be limited to, providers of cable
television, master antenna television, satellite master antenna television, direct broadcast satellite, multipoint
distribution services, and other providers of video programming, whatever their technology. A video provider shall
not include a landlord providing only broadcast video programming to a single-family home or other residential
dwelling consisting of four units or less.
(b) "Material breach" means any substantial and repeated failure to comply with the consumer service standards
set forth in Section 53088.2.
(Added by Stats. 1992, Ch. 1198, Sec. 1. Effective January 1, 1993.)
53088.2. (a) Every video provider shall render reasonably efficient service, make repairs promptly, and interrupt
service only as necessary.
(b) All video provider personnel contacting subscribers or potential subscribers outside the office of the provider
shall be clearly identified as associated with the video provider.
(c) At the time of installation, and annually thereafter, all video providers shall provide to all customers a written
notice of the programming offered, the prices for that programming, the provider's installation and customer service
policies, and the name, address, and telephone number of the local franchising authority.
(d) All video providers shall have knowledgeable, qualified company representatives available to respond to
customer telephone inquiries Monday to Friday, inclusive, excluding holidays, during normal business hours.
(e) All video providers shall provide to customers a toll-free or local telephone number for installation, and service,
and complaint calls. These calls shall be answered promptly by the video providers. The city, county, or city and
county may establish standards for what constitutes promptness.
(f) All video providers shall render bills that are accurate and understandable.
(g) All video providers shall respond to a complete outage in a customer's service promptly. The response shall
occur within 24 hours of the reporting of the outage to the provider, except in those situations beyond the
reasonable control of the video provider. A video provider shall be deemed to respond to a complete outage when a
company representative arrives at the outage location within 24 hours and begins to resolve the problem.
(h) All video providers shall provide a minimum of 30 days' written notice before increasing rates or deleting
channels. All video providers shall make every reasonable effort to submit the notice to the city, county, or city and
county in advance of the distribution to customers. The 30 -day notice is waived if the increases in rates or deletion
MIKO-1
of channels were outside the control of the video provider. In those cases the video provider shall make reasonable
efforts to provide customers with as much notice as possible.
(i) Every video provider shall allow every residential customer who pays his or her bill directly to the video provider
at least 15 days from the date the bill for services is mailed to the customer, to pay the listed charges unless
otherwise agreed to pursuant to a residential rental agreement establishing tenancy. Customer payments shall be
posted promptly. No video provider may terminate residential service for nonpayment of a delinquent account
unless the video provider furnishes notice of the delinquency and impending termination at least 15 days prior to
the proposed termination. The notice shall be mailed, postage prepaid, to the customer to whom the service is
billed. Notice shall not be mailed until the 16th day after the date the bill for services was mailed to the customer.
The notice of delinquency and impending termination may be part of a billing statement. No video provider may
assess a late fee any earlier than the 22nd day after the bill for service has been mailed.
(j) Every notice of termination of service pursuant to subdivision (i) shall include all of the following information:
(1) The name and address of the customer whose account is delinquent.
(2) The amount of the delinquency.
(3) The date by which payment is required in order to avoid termination of service.
(4) The telephone number of a representative of the video provider who can provide additional information and
handle complaints or initiate an investigation concerning the service and charges in question.
Service may only be terminated on days in which the customer can reach a representative of the video provider
either in person or by telephone.
(k) Any service terminated without good cause shall be restored without charge for the service restoration. Good
cause includes, but is not limited to, failure to pay, payment by check for which there are insufficient funds, theft of
service, abuse of equipment or system personnel, or other similar subscriber actions.
(1) A video provider shall cease charging a customer for services within seven business days of receiving a request
to terminate service. If the customer requests that service be terminated and provides seven or more business
day's notice before the date for termination of service, the video provider shall cease charging the customer for
additional services as of midnight of the last day of service. Nothing in this subdivision shall prohibit a video
provider from billing for charges incurred by the customer prior to the date for termination of service.
(m) All video providers shall issue requested refund checks promptly, but no later than 45 days following the
resolution of any dispute, and following the return of the equipment supplied by the video provider, if service is
terminated.
(n) All video providers shall issue security or customer deposit refund checks promptly, but no later than 45 days
following the termination of service, less any deductions permitted by law.
(o) Video providers shall not disclose the name and address of a subscriber for commercial gain to be used in
mailing lists or for other commercial purposes not reasonably related to the conduct of the businesses of the video
providers or their affiliates, unless the video providers have provided to the subscriber a notice, separate or
included in any other customer notice, that clearly and conspicuously describes the subscriber's ability to prohibit
the disclosure. Video providers shall provide an address and telephone number for a local subscriber to use without
toll charge to prevent disclosure of the subscriber's name and address.
(p) Disputes concerning the provisions of this article shall be resolved by the city, county, or city and county in
which the customer resides. For video providers under Section 53066, the franchising authority shall resolve
disputes. All other video providers shall register with the city in which they provide service or, where the customers
reside in an unincorporated area, in the county in which they provide service. The registration shall include the
name of the company, its address, its officers, telephone numbers, and customer service and complaint procedures.
Counties and cities may charge these other video providers operating in the state a fee to cover the reasonable
cost of administering this division.
(q) Nothing in this division limits any power of a city, county, or city and county or video provider to adopt and
enforce service standards and consumer protection standards that exceed those established in this division.
(r) The legislative body of the city, county, or city and county, may, by ordinance, provide a schedule of penalties
for the material breach by a video provider of subdivisions (a) to (p), inclusive. No monetary penalties shall be
assessed for a material breach if the breach is out of the reasonable control of the video provider. Further, no
monetary penalties may be imposed prior to the effective date of this section. Any schedule of monetary penalties
adopted pursuant to this section shall in no event exceed two hundred dollars ($200) for each day of each material
breach, not to exceed six hundred dollars ($600) for each occurrence of material breach. However, if a material
breach of any of subdivisions (a) to (p), inclusive, has occurred and the city, county, or city and county has
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provided notice and a fine or penalty has been assessed, in a subsequent material breach of the same nature
occurring within 12 months, the penalties may be increased by the city, county, or city and county to a maximum of
four hundred dollars ($400) for each day of each material breach, not to exceed one thousand two hundred dollars
($1,200) for each occurrence of the material breach. If a third or further material breach of the same nature occurs
within those same 12 months, and the city, county, or city and county has provided notice and a fine or penalty has
been assessed, the penalties may be increased to a maximum of one thousand dollars ($1,000) for each day of
each material breach, not to exceed three thousand dollars ($3,000) for each occurrence of the material breach.
With respect to video providers subject to a franchise or license, any monetary penalties assessed under this
section shall be reduced dollar for dollar to the extent any liquidated damage or penalty provision of a current cable
television ordinance, franchise contract, or license agreement imposes a monetary obligation upon a video provider
for the same customer service failures, and no other monetary damages may be assessed. However, this section
shall in no way affect the right of franchising authorities concerning assessment or renewal of a cable television
franchise under the provisions of the Cable Communications Policy Act of 1984 (47 U.S.C. Sec. 521 et seq.).
(s) If the legislative body of a city, county, or city and county adopts a schedule of monetary penalties pursuant to
subdivision (q), the following procedures shall be followed:
(1) The city, county, or city and county shall give the video provider written notice of any alleged material breaches
of the consumer service standards of this division and allow the video provider at least 30 days from receipt of the
notice to remedy the specified breach.
(2) A material breach for the purposes of assessing penalties shall be deemed to have occurred for each day,
following the expiration of the period specified in paragraph (1), that any material breach has not been remedied by
the video provider, irrespective of the number of customers affected.
(t) Notwithstanding subdivision (o), or any other provision of law, this section shall not preclude a party affected by
this section from utilizing any judicial remedy available to that party without regard to this section. Actions taken
by a local legislative body, including a franchising authority, pursuant to this section shall not be binding upon a
court of law. For this purpose, a court of law may conduct de novo review of any issues presented.
(Amended by Stats. 2005, Ch. 429, Sec. 1. Effective January 1, 2006.)
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PUBLIC UTILITIES CODE - PUC
DIVISION 2.5. THE DIGITAL INFRASTRUCTURE AND VIDEO COMPETITION ACT OF 2006 [5800 - 5970] ( Division 2.5
added by Stats. 2006, Ch. 700, Sec. 3. )
5800. This act shall be known and may be cited as the Digital Infrastructure and Video Competition Act of 2006.
(Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007)
5810. (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
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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.
(b) It is the intent of the Legislature that a video service provider shall pay as rent a franchise fee to the local
entity in whose jurisdiction service is being provided for the continued use of streets, public facilities, and other
rights-of-way of the local entity in order to provide service. The Legislature recognizes that local entities should be
compensated for the use of the public rights-of-way and that the franchise fee is intended to compensate them in
the form of rent or a toll, similar to that which the court found to be appropriate in Santa Barbara County Taxpayers
Association v. Board of Supervisors for the County of Santa Barbara (1989) 209 Cal. App. 3d 940.
(c) It is the intent of the Legislature that collective bargaining agreements be respected.
(d) It is the intent of the Legislature that the definition of gross revenues in this division shall result in local entities
maintaining their existing level of revenue from franchise fees.
(Amended by Stats. 2007, Ch. 123, Sec. 1. Effective January 1, 2008.)
5820. (a) Nothing in this division shall be deemed as creating a vested right in a state -issued franchise by the
franchise holder or its affiliates that would preclude the state from amending the provisions that establish the terms
and conditions of a franchise.
(b) Nothing in this division shall be construed to eliminate or reduce a telephone corporation's or video service
provider's obligations under any applicable state or federal environmental protection laws. The local entity shall
serve as the lead agency for any environmental review under this division and may impose conditions to mitigate
environmental impacts of the applicant's use of the public rights-of-way that may be required pursuant to the
California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(c) The holder of a state franchise shall not be deemed a public utility as a result of providing video service under
this division. This division shall not be construed as granting authority to the commission to regulate the rates,
terms, and conditions of video services, except as explicitly set forth in this division.
(Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.)
5830. For purposes of this division, the following words have the following meanings:
(a) "Broadband" means any service defined as broadband in the most recent Federal Communications Commission
inquiry pursuant to Section 706 of the Telecommunications Act of 1996 (P.L. 104-104).
(b) "Cable operator" means any person or group of persons that either provides cable service over a cable system
and directly, or through one or more affiliates, owns a significant interest in a cable system; or that otherwise
controls or is responsible for, through any arrangement, the management and operation of a cable system, as set
forth in Section 522(5) of Title 47 of the United States Code.
(c) "Cable service" is defined as the one-way transmission to subscribers of either video programming, or other
programming service, and subscriber interaction, if any, that is required for the selection or use of video
programming or other programming service, as set forth in Section 522(6) of Title 47 of the United States Code.
(d) "Cable system" is defined as set forth in Section 522(7) of Title 47 of the United States Code.
(e) "Commission" means the Public Utilities Commission.
(f) "Franchise" means an initial authorization, or renewal of an authorization, issued by a franchising entity,
regardless of whether the authorization is designated as a franchise, permit, license, resolution, contract,
certificate, agreement, or otherwise, that authorizes the construction and operation of any network in the right-of-
way capable of providing video service to subscribers.
(g) "Franchise fee" means the fee adopted pursuant to Section 5840.
(h) "Holder" or "holder of a state franchise" means a person or group of persons that has been issued a state
franchise from the commission pursuant to this division.
(i) "Incumbent cable operator" means a cable operator or OVS serving subscribers under a franchise in a particular
city, county, or city and county franchise area on January 1, 2007.
(j) "Local entity" means any city, county, city and county, or joint powers authority within the state within whose
jurisdiction a holder of a state franchise under this division may provide cable service or video service.
(k) "Local franchising entity" means the city, county, city and county, or joint powers authority entitled to require
franchises and impose fees on cable operators, as set forth in Section 53066 of the Government Code.
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(1) "Network" means a component of a facility that is wholly or partly physically located within a public right-of-way
and that is used to provide video service, cable service, voice, or data services.
(m) "Open -video system" or "OVS" means those services set forth in Section 573 of Title 47 of the United States
Code.
(n) "OVS operator" means any person or group of persons that either provides cable service over an open -video
system directly, or through one or more affiliates, owns a significant interest in an open -video system, or that
otherwise controls or is responsible for, through any arrangement, the management of an open -video system.
(o) "Public rights-of-way" means the area along and upon any public road or highway, or along or across any of the
waters or lands within the state.
(p) "State franchise" means a franchise that is issued pursuant to this division.
(q) "Subscriber" means a person who lawfully receives video service from the holder of a state franchise for a fee.
(r) "Video programming" means programming provided by, or generally considered comparable to programming
provided by, a television broadcast station, as set forth in Section 522(20) of Title 47 of the United States Code.
(s) "Video service" means video programming services, cable service, or OVS service provided through facilities
located at least in part in public rights-of-way without regard to delivery technology, including Internet protocol or
other technology. This definition does not include (1) any video programming provided by a commercial mobile
service provider defined in Section 332(d) of Title 47 of the United States Code, or (2) video programming provided
as part of, and via, a service that enables users to access content, information, electronic mail, or other services
offered over the public Internet.
(t) "Video service provider" means an entity providing video service.
(Amended by Stats. 2007, Ch. 123, Sec. 2. Effective January 1, 2008.)
5840. (a) The commission is the sole franchising authority for a state franchise to provide video service under this
division. Neither the commission nor any local franchising entity or other local entity of the state may require the
holder of a state franchise to obtain a separate franchise or otherwise impose any requirement on any holder of a
state franchise except as expressly provided in this division. Sections 53066, 53066.01, 53066.2, and 53066.3 of
the Government Code shall not apply to holders of a state franchise.
(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.
(c) Any person or corporation who seeks to provide video service in this state for which a franchise has not already
been issued, after January 1, 2008, shall file an application for a state franchise with the commission. The
commission may impose a fee on the applicant that shall not exceed the actual and reasonable costs of processing
the application and shall not be levied for general revenue purposes.
(d) No person or corporation shall be eligible for a state -issued franchise, including a franchise obtained from
renewal or transfer of an existing franchise, if that person or corporation is in violation of any final nonappealable
order relating to either the Cable Television and Video Provider Customer Service and Information Act (Article 3.5
(commencing with Section 53054) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code) or the
Video Customer Service Act (Article 4.5 (commencing with Section 53088) of Chapter 1 of Part 1 of Division 2 of
Title 5 of the Government Code).
(e) The application for a state franchise shall be made on a form prescribed by the commission and shall include all
of the following:
(1) A sworn affidavit, signed under penalty of perjury by an officer or another person authorized to bind the
applicant, that affirms all of the following:
(A) That the applicant has filed or will timely file with the Federal Communications Commission all forms required by
the Federal Communications Commission before offering cable service or video service in this state.
(B) That the applicant or its affiliates agrees to comply with all federal and state statutes, rules, and regulations,
including, but not limited to, the following:
(i) A statement that the applicant will not discriminate in the provision of video or cable services as provided in
Section 5890.
(ii) A statement that the applicant will abide by all applicable consumer protection laws and rules as provided in
Section 5900.
(iii) A statement that the applicant will remit the fee required by subdivision (a) of Section 5860 to the local entity.
(iv) A statement that the applicant will provide PEG channels and the required funding as required by Set'on T.
(C) That the applicant agrees to comply with all lawful city, county, or city and county regulations regarding the
time, place, and manner of using the public rights-of-way, including, but not limited to, payment of applicable
encroachment, permit, and inspection fees.
(D) That the applicant will concurrently deliver a copy of the application to any local entity where the applicant will
provide service.
(2) The applicant's legal name and any name under which the applicant does or will do business in this state.
(3) The address and telephone number of the applicant's principal place of business, along with contact information
for the person responsible for ongoing communications with the commission.
(4) The names and titles of the applicant's principal officers.
(5) The legal name, address, and telephone number of the applicant's parent company, if any.
(6) A description of the video service area footprint that is proposed to be served, as identified by a collection of
United States Census Bureau Block numbers (13 digit) or a geographic information system digital boundary meeting
or exceeding national map accuracy standards. This description shall include the socioeconomic status information
of all residents within the service area footprint.
(7) If the applicant is a telephone corporation or an affiliate of a telephone corporation, as defined in Section 234, a
description of the territory in which the company provides telephone service. The description shall include
socioeconomic status information of all residents within the telephone corporation's service territory.
(8) The expected date for the deployment of video service in each of the areas identified in paragraph (6).
(9) Adequate assurance that the applicant possesses the financial, legal, and technical qualifications necessary to
construct and operate the proposed system and promptly repair any damage to the public right-of-way caused by
the applicant. To accomplish these requirements, the commission may require a bond.
(f) The commission may require that a corporation with wholly owned subsidiaries or affiliates is eligible only for a
single state -issued franchise and prohibit the holding of multiple franchises through separate subsidiaries or
affiliates. The commission may establish procedures for a holder of a state -issued franchise to amend its franchise
to reflect changes in its service area.
(g) The commission shall commence accepting applications for a state franchise no later than April 1, 2007.
(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) The state franchise issued by the commission shall contain all of the following:
(1) A grant of authority to provide video service in the service area footprint as requested in the application.
(2) A grant of authority to use the public rights-of-way, in exchange for the franchise fee adopted under subdivision
(q), in the delivery of video service, subject to the laws of this state.
(3) A statement that the grant of authority is subject to lawful operation of the cable service or video service by
the applicant or its successor in interest.
(j) The state franchise issued by the commission may be terminated by the video service provider by submitting at
least 90 days prior written notice to subscribers, local entities, and the commission.
(k) It is unlawful to provide video service without a state or locally issued franchise.
(1) Subject to the notice requirements of this division, a state franchise may be transferred to any successor in
interest of the holder to which the certificate is originally granted, provided that the transferee first submits all of
the information required of the applicant by this section to the commission and is in compliance with Section 5970.
(m) In connection with, or as a condition of, receiving a state franchise, the commission shall require a holder to
notify the commission and any applicable local entity within 14 business days of any of the following changes
involving the holder of the state franchise:
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(1) Any transaction involving a change in the ownership, operation, control, or corporate organization of the holder,
including a merger, an acquisition, or a reorganization.
(2) A change in the holder's legal name or the adoption of, or change to, an assumed business name. The holder
shall submit to the commission a certified copy of either of the following:
(A) The proposed amendment to the state franchise.
(B) The certificate of assumed business name.
(3) A change in the holder's principal business address or in the name of the person authorized to receive notice on
behalf of the holder.
(4) Any transfer of the state franchise to a successor in interest of the holder. The holder shall identify the
successor in interest to which the transfer is made.
(5) The termination of any state franchise issued under this division. The holder shall identify both of the following:
(A) The number of subscribers in the service area covered by the state franchise being terminated.
(B) The method by which the holder's subscribers were notified of the termination.
(6) A change in one or more of the service areas of the holder of a state franchise pursuant to this division that
would increase or decrease the territory within the service area. The holder shall describe the new boundaries of
the affected service areas after the proposed change is made.
(n) Prior to offering video service in a local entity's jurisdiction, the holder of a state franchise shall notify the local
entity that the video service provider will provide video service in the local entity's jurisdiction. The notice shall be
given at least 10 days, but no more than 60 days, before the video service provider begins to offer service.
(o) Any video service provider that currently holds a franchise with a local franchising entity is entitled to seek a
state franchise in the area designated in that franchise upon meeting any of the following conditions:
(1) The expiration, prior to any renewal or extension, of its local franchise.
(2) A mutually agreed upon date set by both the local franchising entity and video service provider to terminate the
franchise provided in writing by both parties to the commission.
(3) When a video service provider that holds a state franchise provides the notice required pursuant to subdivision
(n) to a local jurisdiction that it intends to initiate providing video service in all or part of that jurisdiction, a video
service provider operating under a franchise issued by a local franchising entity may elect to obtain a state
franchise to replace its locally issued franchise. The franchise issued by the local franchising entity shall terminate
and be replaced by a state franchise when the commission issues a state franchise for the video service provider
that includes the entire service area served by the video service provider and the video service provider notifies
the local entity that it will begin providing video service in that area under a state franchise.
(p) Notwithstanding any rights to the contrary, an incumbent cable operator opting into a state franchise under this
section shall continue to serve all areas as required by its local franchise agreement existing on January 1, 2007,
until that local franchise otherwise would have expired. However, an incumbent cable operator that is also a
telephone corporation with less than 1,000,000 telephone customers in California and is providing video service in
competition with another incumbent cable operator shall not be required to provide service beyond the area in
which it is providing video service as of January 1, 2007.
(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.
(Amended by Stats. 2007, Ch. 123, Sec. 3. Effective January 1, 2008.)
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.
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(b) Except as provided in this section, the criteria and process described in Section 5840 shall apply to a renewal
registration, and the commission shall not impose any additional or different criteria.
(c) Renewal of a state franchise shall be consistent with federal law and regulations.
(d) The commission shall not renew the franchise if the video service provider is in violation of any final
nonappealable court order issued pursuant to this division.
(Amended by Stats. 2007, Ch. 123, Sec. 4. Effective January 1, 2008.)
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 subdivision (q) of Section 5840, 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
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. No fee under this section
shall become due unless the local entity provides documentation to the holder of the state franchise supporting the
percentage paid by the incumbent cable operator serving the area within the local entity's jurisdiction. The fee shall
be calculated as a percentage of the holder's gross revenues, as defined in subdivision (d). The fee remitted to the
local entity pursuant to this section may be used by the local entity for any lawful purpose.
(b) The state franchise fee shall be a percentage of the holder's gross revenues, as defined in subdivision (d).
(c) No local entity or any other political subdivision of this state may demand any additional fees or charges or
other remuneration of any kind from the holder of a state franchise based solely on its status as a provider of video
or cable services other than as set forth in this division and may not demand the use of any other calculation
method or definition of gross revenues. However, nothing in this section shall be construed to limit a local entity's
ability to impose utility user taxes and other generally applicable taxes, fees, and charges under other applicable
provisions of state law that are applied in a nondiscriminatory and competitively neutral manner.
(d) For purposes of this section, the term "gross revenues" means all revenue actually received by the holder of a
state franchise, as determined in accordance with generally accepted accounting principles, that is derived from the
operation of the holder's network to provide cable or video service within the jurisdiction of the local entity,
including all of the following:
(1) All charges billed to subscribers for any and all cable service or video service provided by the holder of a state
franchise, including all revenue related to programming provided to the subscriber, equipment rentals, late fees,
and insufficient fund fees.
(2) Franchise fees imposed on the holder of a state franchise by this section that are passed through to, and paid
by, the subscribers.
(3) Compensation received by the holder of a state franchise that is derived from the operation of the holder's
network to provide cable service or video service with respect to commissions that are paid to the holder of a state
franchise 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 paragraph (4) of subdivision (e).
(4) A pro rata portion of all revenue derived by the holder of a state franchise or its affiliates pursuant to
compensation arrangements for advertising derived from the operation of the holder's network to provide video
service within the jurisdiction of the local entity, subject to paragraph (1) of subdivision (e). The allocation shall be
based on the number of subscribers in the local entity divided by the total number of subscribers in relation to the
relevant regional or national compensation arrangement.
(e) For purposes of this section, the term "gross revenue" set forth in subdivision (d) does not include any of the
following:
(1) Amounts not actually received, even if billed, such as bad debt; refunds, rebates, or discounts to subscribers or
other third parties; or revenue imputed from the provision of cable services or video services for free or at reduced
rates to any person as required or allowed by law, including, but not limited to, the provision of these services to
public institutions, public schools, governmental agencies, or employees except that forgone revenue chosen not to
be received in exchange for trades, barters, services, or other items of value shall be included in gross revenue.
(2) Revenues received by any affiliate or any other person in exchange for supplying goods or services used by the
holder of a state franchise to provide cable services or video services. However, revenue received by an affiliate of
the holder from the affiliate's provision of cable or video service shall be included in gross revenue as follows:
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(A) To the extent that treating the revenue as revenue of the affiliate, instead of revenue of the holder, would have
the effect of evading the payment of fees that would otherwise be paid to the local entity.
(B) The revenue is not otherwise subject to fees to be paid to the local entity.
(3) Revenue derived from services classified as noncable services or nonvideo services under federal law, including,
but not limited to, revenue derived from telecommunications services and information services, other than cable
services or video services, and any other revenues attributed by the holder of a state franchise to noncable
services or nonvideo services in accordance with Federal Communications Commission rules, regulations,
standards, or orders.
(4) Revenue paid by subscribers to "home shopping" or similar networks directly from the sale of merchandise
through any home shopping channel offered as part of the cable services or video services. However, commissions
or other compensation paid to the holder of a state franchise by 'home shopping" or similar networks for the
promotion or exhibition of products or services shall be included in gross revenue.
(5) Revenue from the sale of cable services or video services for resale in which the reseller is required to collect a
fee similar to the franchise fee from the reseller's subscribers.
(6) Amounts billed to, and collected from, subscribers to recover any tax, fee, or surcharge imposed by any
governmental entity on the holder of a state franchise, including, but not limited to, sales and use taxes, gross
receipts taxes, excise taxes, utility users taxes, public service taxes, communication taxes, and any other fee not
imposed by this section.
(7) Revenue from the sale of capital assets or surplus equipment not used by the purchaser to receive cable
services or video services from the seller of those assets or surplus equipment.
(8) Revenue from directory or Internet advertising revenue, including, but not limited to, yellow pages, white
pages, banner advertisement, and electronic publishing.
(9) Revenue received as reimbursement by programmers of specific, identifiable marketing costs incurred by the
holder of a state franchise for the introduction of new programming.
(10) Security deposits received from subscribers, excluding security deposits applied to the outstanding balance of
a subscriber's account and thereby taken into revenue.
(f) For the purposes of this section, in the case of a video service that may be bundled or integrated functionally
with other services, capabilities, or applications, the state franchise fee shall be applied only to the gross revenue,
as defined in subdivision (d), attributable to video service. Where the holder of a state franchise or any affiliate
bundles, integrates, ties, or combines video services with nonvideo services creating a bundled package, so that
subscribers pay a single fee for more than one class of service or receive a discount on video services, gross
revenues shall be determined based on an equal allocation of the package discount, that is, the total price of the
individual classes of service at advertised rates compared to the package price, among all classes of service
comprising the package. The holder's offering a bundled package shall not be deemed a promotional activity. If the
holder of a state franchise does not offer any component of the bundled package separately, the holder of a state
franchise shall declare a stated retail value for each component based on reasonable comparable prices for the
product or service for the purpose of determining franchise fees based on the package discount.
(g) For the purposes of determining gross revenue under this division, a video service provider shall use the same
method of determining revenues under generally accepted accounting principals as that which the video service
provider uses in determining revenues for the purpose of reporting to national and state regulatory agencies.
(h) The state franchise fee shall be remitted to the applicable local entity quarterly, within 45 days after the end of
the quarter for that calendar quarter. Each payment shall be accompanied by a summary explaining the basis for
the calculation of the state franchise fee. If the holder does not pay the franchise fee when due, the holder shall
pay a late payment charge at a rate per year equal to the highest prime lending rate during the period of
delinquency, plus 1 percent. If the holder has overpaid the franchise fee, it may deduct the overpayment from its
next quarterly payment.
(i) Not more than once annually, a local entity may examine the business records of a holder of a state franchise to
the extent reasonably necessary to ensure compensation in accordance with this section. The holder shall keep all
business records reflecting any gross revenues, even if there is a change in ownership, for at least four years after
those revenues are recognized by the holder on its books and records. If the examination discloses that the holder
has underpaid franchise fees by more than 5 percent during the examination period, the holder shall pay all of the
reasonable and actual costs of the examination. If the examination discloses that the holder has not underpaid
franchise fees, the local entity shall pay all of the reasonable and actual costs of the examination. In every other
instance, each party shall bear its own costs of the examination. Any claims by a local entity that compensation is
not in accordance with subdivision (a), and any claims for refunds or other corrections to the remittance of the
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holder of a state franchise, shall be made within three years and 45 days of the end of the quarter for which
compensation is remitted, or three years from the date of the remittance, whichever is later. Either a local entity or
the holder may, in the event of a dispute concerning compensation under this section, bring an action in a court of
competent jurisdiction.
(j) The holder of a state franchise may identify and collect the amount of the state franchise fee as a separate line
item on the regular bill of each subscriber.
(Amended by Stats. 2007, Ch. 123, Sec. 5. Effective January 1, 2008.)
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 the 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.
(b) The PEG channels shall be for the exclusive use of the local entity or its designee to provide public, educational,
and governmental channels. The PEG channels shall be used only for noncommercial purposes. However,
advertising, underwriting, or sponsorship recognition may be carried on the channels for the purpose of funding
PEG -related activities. The PEG channels shall all be carried on the basic service tier. To the extent feasible, the
PEG channels shall not be separated numerically from other channels carried on the basic service tier and the
channel numbers for the PEG channels shall be the same channel numbers used by the incumbent cable operator
unless prohibited by federal law. After the initial designation of PEG channel numbers, the channel numbers shall
not be changed without the agreement of the local entity unless the change is required by federal law. Each channel
shall be capable of carrying a National Television System Committee (NTSC) television signal.
(c) (1) If less than three PEG channels are activated and provided within the local entity as of January 1, 2007, a
local entity whose jurisdiction lies within the authorized service area of the holder of a state franchise may initially
request the holder to designate not more than a total of three PEG channels.
(2) The holder shall have three months from the date of the request 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.
(d) (1) The holder shall provide an additional PEG channel when the nonduplicated locally produced video
programming televised on a given channel exceeds 56 hours per week as measured on a quarterly basis. The
additional channel shall not be used for any purpose other than to continue programming additional government,
education, or public access television.
(2) For the purposes of this section, "locally produced video programming" means programming produced or
provided by any local resident, the local entity, or any local public or private agency that provides services to
residents of the franchise area; or any transmission of a meeting or proceeding of any local, state, or federal
governmental entity.
(e) Any PEG channel provided pursuant to this section that is not utilized by the local entity for at least eight hours
per day as measured on a quarterly basis may no longer be made available to the local entity, and may be
programmed at the holder's discretion. At the time that the local entity can certify to the holder a schedule for at
least eight hours of daily programming, the holder of the state franchise shall restore the channel or channels for
the use of the local entity.
(f) The content to be provided over the PEG channel capacity provided pursuant to this section shall be the
responsibility of the local entity or its designee receiving the benefit of that capacity, and the holder of a state
franchise bears only the responsibility for the transmission of that content, subject to technological restraints.
(g) (1) The local entity shall ensure that all transmissions, content, or programming to be transmitted by a holder
of a state franchise are provided or submitted in a manner or form that is compatible with the holder's network, if
the local entity produces or maintains the PEG programming in that manner or form. If the local entity does not
produce or maintain PEG programming in that manner or form, then the local entity may submit or provide PEG
programming in a manner or form that is standard in the industry. The holder shall be responsible for any changes
in the form of the transmission necessary to make it compatible with the technology or protocol utilized by the
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holder to deliver services. If the holder is required to change the form of the transmission, the local entity shall
permit the holder to do so in a manner that is most economical to the holder.
(2) The provision of those transmissions, content, or programming to the holder of a state franchise shall constitute
authorization for the holder to carry those transmissions, content, or programming. The holder may carry the
transmission, content, or programming outside of the local entity's jurisdiction if the holder agrees to pay the local
entity or its designee any incremental licensing costs incurred by the local entity or its designee associated with
that transmission. A local entity shall not enter into a licensing agreement that imposes higher proportional costs
for transmission to subscribers outside the local entity's jurisdiction.
(3) The PEG signal shall be receivable by all subscribers, whether they receive digital or analog service, or a
combination thereof, without the need for any equipment other than the equipment necessary to receive the lowest
cost tier of service. The PEG access capacity provided shall be of similar quality and functionality to that offered by
commercial channels on the lowest cost tier of service unless the signal is provided to the holder at a lower quality
or with less functionality.
(h) Where technically feasible, the holder of a state franchise and an incumbent cable operator shall negotiate in
good faith to interconnect their networks for the purpose of providing PEG programming. Interconnection may be
accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. Holders of a
state franchise and incumbent cable operators shall provide interconnection of the PEG channels on reasonable
terms and conditions and may not withhold the interconnection. If a holder of a state franchise and an incumbent
cable operator cannot reach a mutually acceptable interconnection agreement, the local entity may require the
incumbent cable operator to allow the holder to interconnect its network with the incumbent's network at a
technically feasible point on the holder's network as identified by the holder. If no technically feasible point for
interconnection is available, the holder of a state franchise shall make an interconnection available to the channel
originator and shall provide the facilities necessary for the interconnection. The cost of any interconnection shall be
borne by the holder requesting the interconnection unless otherwise agreed to by the parties.
(i) A holder of a state franchise shall not be required to interconnect for, or otherwise to transmit, PEG content that
is branded with the logo, name, or other identifying marks of another cable operator or video service provider. For
purposes of this section, PEG content is not branded if it includes only production credits or other similar
information displayed at the conclusion of a program. The local entity may require a cable operator or video service
provider to remove its logo, name, or other identifying marks from PEG content that is to be made available
through interconnection to another provider of PEG capacity.
(j) In addition to any provision for the PEG channels required under subdivisions (a) to (i), inclusive, the holder
shall reserve, designate, and, upon request, activate a channel for carriage of state public affairs programming
administered by the state.
(k) All obligations to provide and support PEG channel facilities and institutional networks and to provide cable
services to community buildings contained in a locally issued franchise existing on December 31, 2006, shall
continue until the local franchise expires, until the term of the franchise would have expired if it had not been
terminated pursuant to subdivision (o) of Section 5840, or until January 1, 2009, whichever is later.
(1) After January 1, 2007, and until the expiration of the incumbent cable operator's franchise, if the incumbent
cable operator has existing unsatisfied obligations under the franchise to remit to the local entity any cash
payments for the ongoing costs of public, educational, and government access channel facilities or institutional
networks, the local entity shall divide those cash payments among all cable or video providers as provided in this
section. The fee shall be the holder's pro rata per subscriber share of the cash payment required to be paid by the
incumbent cable operator to the local entity for the costs of PEG channel facilities. All video service providers and
the incumbent cable operator shall be subject to the same requirements for recurring payments for the support of
PEG channel facilities and institutional networks, whether expressed as a percentage of gross revenue or as an
amount per subscriber, per month, or otherwise.
(m) In determining the fee described in subdivision (1) on a pro rata per subscriber basis, all cable and video
service providers shall report, for the period in question, to the local entity the total number of subscribers served
within the local entity's jurisdiction, which shall be treated as confidential by the local entity and shall be used only
to derive the per subscriber fee required by this section. The local entity shall then determine the payment due
from each provider based on a per subscriber basis for the period by multiplying the unsatisfied cash payments for
the ongoing capital costs of PEG channel facilities by a ratio of the reported subscribers of each provider to the total
subscribers within the local entity as of the end of the period. The local entity shall notify the respective providers,
in writing, of the resulting pro rata amount. After the notice, any fees required by this section shall be remitted to
the applicable local entity quarterly, within 45 days after the end of the quarter for the preceding calendar quarter,
and may only be used by the local entity as authorized under federal law.
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(n) A local entity may, by ordinance, establish a fee to support PEG channel facilities consistent with federal law
that would become effective subsequent to the expiration of any fee imposed pursuant to subdivision (1). If no such
fee exists, the local entity may establish the fee at any time. The fee shall not exceed 1 percent of the holder's
gross revenues, as defined in Section 5860. Notwithstanding this limitation, if, on December 31, 2006, a local entity
is imposing a separate fee to support PEG channel facilities that is in excess of 1 percent, that entity may, by
ordinance, establish a fee no greater than that separate fee, and in no event greater than 3 percent, to support PEG
activities. The ordinance shall expire, and may be reauthorized, upon the expiration of the state franchise.
(o) The holder of a state franchise may recover the amount of any fee remitted to a local entity under this section
by billing a recovery fee as a separate line item on the regular bill of each subscriber.
(p) A court of competent jurisdiction shall have exclusive jurisdiction to enforce any requirement under this section
or resolve any dispute regarding the requirements set forth in this section, and no provider may be barred from the
provision of service or be required to terminate service as a result of that dispute or enforcement action.
(Amended by Stats. 2007, Ch. 123, Sec. 6. Effective January 1, 2008.)
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 (o) of Section 5840, or until January 1, 2009, whichever is later.
(Amended by Stats. 2007, Ch. 123, Sec. 7. Effective January 1, 2008.)
5885. (a) The local entity shall allow the holder of a state franchise under this division to install, construct, and
maintain a network within public rights-of-way under the same time, place, and manner as the provisions governing
telephone corporations under applicable state and federal law, including, but not limited to, the provisions of
Section 7901.1.
(b) Nothing in this division shall be construed to change existing law regarding the permitting process or
compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code) for projects by a holder of a state franchise.
(c) (1) For purposes of this section, an "encroachment permit" means any permit issued by a local entity relating to
construction or operation of facilities pursuant to this division.
(2) A local entity shall either approve or deny an application from a holder of a state franchise for an encroachment
permit within 60 days of receiving a completed application. An application for an encroachment permit is complete
when the applicant has complied with all statutory requirements, including the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources Code).
(3) If the local entity denies an application for an encroachment permit, it shall, at the time of notifying the
applicant of the denial, furnish to the applicant a detailed explanation of the reason for the denial.
(4) The local entity shall adopt regulations prescribing procedures for an applicant to appeal the denial of an
encroachment permit application issued by a department of the local entity to the governing body of the local
entity.
(5) Nothing in this section precludes an applicant and a local entity from mutually agreeing to an extension of any
time limit provided by this section.
(d) A local entity may not enforce against the holder of a state franchise any rule, regulation, or ordinance that
purports to allow the local entity to purchase or force the sale of a network.
(Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.)
5890. (a) A cable operator or video service provider that has been granted a state franchise under this division may
not discriminate against or deny access to service to any group of potential residential subscribers because of the
income of the residents in the local area in which the group resides.
(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.
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(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.
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(g) Local governments may bring complaints to the state franchising authority that a holder is not offering video
service as required by this section, or the state franchising authority may open an investigation on its own motion.
The state franchising authority shall hold public hearings before issuing a decision. The commission may suspend or
revoke the franchise if the holder fails to comply with the provisions of this division.
(h) If the state franchising authority finds that the holder is in violation of this section, it may, in addition to any
other remedies provided by law, impose a fine not to exceed 1 percent of the holder's total monthly gross revenue
received from provision of video service in the state each month from the date of the decision until the date that
compliance is achieved.
(i) 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 not to exceed 1 percent of the holder's total gross revenue of its entire cable and service footprint in
the state in the full calendar month immediately prior to the decision.
(j) As used in this section, the following definitions shall 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
utilized, the technologies shall provide similar two-way broadband Internet accessibility and similar video
programming.
(2) "Customer's household" means those residential households located within the holder's existing telephone
service area that are customers of the service by which that telephone service area is defined.
(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 which
have direct access from the outside of the building or through a common hall.
(4) 'Low-income household" means those residential households located within the holder's existing telephone
service area where the average annual household income is less than thirty-five thousand dollars ($35,000) based
on the United States Census Bureau estimates adjusted annually to reflect rates of change and distribution through
January 1, 2007.
(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.
(Amended by Stats. 2007, Ch. 123, Sec. 8. Effective January 1, 2008.)
5900. (a) The holder of a state franchise shall comply with the provisions of 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.
(b) The holder of a state franchise shall comply with provisions of Section 637.5 of the Penal Code and the privacy
standards contained in Section 551 and following of Title 47 of the United States Code.
(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) The local entity shall, by ordinance or resolution, provide a schedule of penalties for any material breach by a
holder of a state franchise of this section. No monetary penalties shall be assessed for a material breach if it is out
of the reasonable control of the holder. Further, no monetary penalties may be imposed prior to January 1, 2007.
Any schedule of monetary penalties adopted pursuant to this section shall in no event exceed five hundred dollars
($500) for each day of each material breach, not to exceed one thousand five hundred dollars ($1,500) for each
occurrence of a material breach. However, if a material breach of this section has occurred, and the local entity has
provided notice and a fine or penalty has been assessed, and if a subsequent material breach of the same nature
occurs within 12 months, the penalties may be increased by the local entity to a maximum of one thousand dollars
($1,000) for each day of each material breach, not to exceed three thousand dollars ($3,000) for each occurrence
of the material breach. If a third or further material breach of the same nature occurs within those same 12 months,
and the local entity has provided notice and a fine or penalty has been assessed, the penalties may be increased to
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a maximum of two thousand five hundred dollars ($2,500) for each day of each material breach, not to exceed
seven thousand five hundred dollars ($7,500) for each occurrence of the material breach. With respect to video
providers subject to a franchise or license, any monetary penalties assessed under this section shall be reduced
dollar -for -dollar to the extent any liquidated damage or penalty provision of a current cable television ordinance,
franchise contract, or license agreement imposes a monetary obligation upon a video provider for the same
customer service failures, and no other monetary damages may be assessed.
(e) The local entity shall give the video service provider written notice of any alleged material breach of the
customer service standards of this division and allow the video provider at least 30 days from receipt of the notice
to remedy the specified material breach.
(f) A material breach for the purposes of assessing penalties shall be deemed to have occurred for each day within
the jurisdiction of each local entity, following the expiration of the period specified in subdivision (e), that any
material breach has not been remedied by the video service provider, irrespective of the number of customers or
subscribers affected.
(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) Any interested person may seek judicial review of a decision of the local entity in a court of appropriate
jurisdiction. For this purpose, a court of law shall conduct a de novo review of any issues presented.
(i) This section shall not preclude a party affected by this section from utilizing any judicial remedy available to that
party without regard to this section. Actions taken by a local legislative body, including a local franchising entity,
pursuant to this section shall not be binding upon a court of law. For this purpose, a court of law shall conduct de
novo review of any issues presented.
(j) For purposes of this section, "material breach" means any substantial and repeated failure of a video service
provider to comply with service quality and other standards specified in subdivision (a).
(k) The Office of Ratepayer Advocates shall have authority to advocate on behalf of video subscribers regarding
renewal of a state -issued franchise and enforcement of this section, and Sections 5890 and 5950. For this purpose,
the office shall have access to any information in the possession of the commission subject to all restrictions on
disclosure of that information that are applicable to the commission.
(Amended by Stats. 2013, Ch. 356, Sec. 49. Effective September 26, 2013.)
5910. (a) The holder of a state franchise shall perform background checks of applicants for employment, according
to current business practices.
(b) A background check equivalent to that performed by the holder shall also be conducted on all of the following:
(1) Persons hired by a holder under a personal service contract.
(2) Independent contractors and their employees.
(3) Vendors and their employees.
(c) Independent contractors and vendors shall certify that they have obtained the background checks required
pursuant to subdivision (b), and shall make the background checks available to the holder upon request.
(d) Except as otherwise provided by contract, the holder of a state franchise shall not be responsible for
administering the background checks and shall not assume the costs of the background checks of individuals who
are not applicants for employment of the holder.
(e) (1) Subdivision (a) only applies to applicants for employment for positions that would allow the applicant to
have direct contact with or access to the holder's network, central office, or subscriber premises, and perform
activities that involve the installation, service, or repair of the holder's network or equipment.
(2) Subdivision (b) only applies to persons that have direct contact with or access to the holder's network, central
office, or subscriber premises, and perform activities that involve the installation, service, or repair of the holder's
network or equipment.
(f) This section does not apply to temporary workers performing emergency functions to restore the network of a
holder to its normal state in the event of a natural disaster or an emergency that threatens or results in the loss of
service.
(Amended by Stats. 2007, Ch. 123, Sec. 10. Effective January 1, 2008.)
5920. A holder of a state franchise employing more than 750 total employees in California shall annually report to
the commission all of the following:
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(a) The number of California residents employed by the holder, calculated on a full-time or full-time equivalent
basis.
(b) The percentage of the holder's total domestic workforce, calculated on a full-time or full-time equivalent basis.
(c) The types and numbers of jobs by occupational classification held by residents of California employed by holders
of state franchises and the average pay and benefits of those jobs and, separately, the number of out-of-state
residents employed by independent contractors, companies, and consultants hired by the holder, calculated on a
full-time or full-time equivalent basis, when the holder is not contractually prohibited from disclosing the
information to the public. This paragraph applies only to those employees of an independent contractor, company,
or consultant that are personally providing services to the holder, and does not apply to employees of an
independent contractor, company, or consultant not personally performing services for the holder.
(d) The number of net new positions proposed to be created directly by the holder of a state franchise during the
upcoming year by occupational classifications and by category of full-time, part-time, temporary, and contract
employees.
(Amended by Stats. 2015, Ch. 612, Sec. 64. Effective January 1, 2016.)
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. Prior to 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 shall not be deemed to extend
any existing franchise beyond its term.
(b) When an incumbent cable operator is providing service under an expired franchise or a franchise that expires
before January 2, 2008, the local entity may extend that franchise on the same terms and conditions through
January 2, 2008. A state franchise issued to any incumbent cable operator shall not become operative prior to
January 2, 2008.
(c) When a video service provider that holds a state franchise provides the notice required pursuant to subdivision
(n) of Section 5840 to a local entity, the local franchising entity may require all incumbent cable operators to seek
a state franchise and shall terminate the franchise issued by the local franchising entity when the commission
issues a state franchise for the video service provider that includes the entire service area served by the video
service provider and the video service provider notifies the local entity that it will begin providing video service in
that area under a state franchise.
(Amended by Stats. 2007, Ch. 123, Sec. 11. Effective January 1, 2008.)
5940. The holder of a state franchise under this division who also provides stand-alone, residential, primary line,
basic telephone service shall not increase this rate to finance the cost of deploying a network to provide video
service.
(Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.)
5950. The commission shall not permit a telephone corporation that is providing video service directly or through its
affiliates pursuant to a state -issued franchise as an incumbent local exchange carrier to increase rates for
residential, primary line, basic telephone service above the rate as of July 1, 2006, until January 1, 2009, unless
that telephone corporation is regulated under rate of return regulation. However, the commission may allow rate
increases to reflect increases in inflation as shown in the Consumer Price Index published by the Bureau of Labor
Statistics. This section does not affect the authority of the commission to authorize an increase in rates for basic
telephone service that is bundled with other services and priced as a bundle. Nothing in this section is intended to
prohibit implementation of commission decision D. 06-04-071 to the extent it has not been implemented prior to
July 1, 2006.
(Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.)
5960. (a) For purposes of this section, "census tract" has the same meaning as used by the United States Census
Bureau, and "household" has the same meaning as specified in Section 5890.
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(b) Every holder, no later than April 1, 2008, and annually no later than April 1 thereafter, shall report to the
commission on a census tract basis the following information:
(1) Broadband information:
(A) The number of households to which the holder makes broadband available in this state. If the holder does not
maintain this information on a census tract basis in its normal course of business, the holder may reasonably
approximate the number of households based on information it keeps in the normal course of business.
(B) The number of households that subscribe to broadband that the holder makes available in this state.
(C) Whether the broadband provided by the holder utilizes wireline -based facilities or another technology.
(2) Video information:
(A) If the holder is a telephone corporation:
(i) The number of households in the holder's telephone service area.
(ii) The number of households in the holder's telephone service area that are offered video service by the holder.
(B) If the holder is not a telephone corporation:
(i) The number of households in the holder's video service area.
(ii) The number of households in the holder's video service area that are offered video service by the holder.
(3) Low-income household information:
(A) The number of low-income households in the holder's video service area.
(B) The number of low-income households in the holder's video service area that are offered video service by the
holder.
(c) All information submitted to the commission pursuant to this section shall be disclosed to the public only as
provided for pursuant to Section 583.
(Amended by Stats. 2015, Ch. 612, Sec. 65. Effective January 1, 2016.)
5970. Subject to the requirements of this division, a state franchise may be transferred to any successor in interest
of the holder to which the certificate originally is granted, whether this transfer is by merger, sale, assignment,
bankruptcy, restructuring, or any other type of transaction, provided that the following conditions are met:
(a) The transferee submits to the commission all of the information required by this division of an applicant.
(b) The transferee agrees that any collective bargaining agreement entered into by a video service provider shall
continue to be honored, paid, or performed to the same extent as would be required if the video service provider
continued to operate under its franchise for the duration of that franchise unless the duration of that agreement is
limited by its terms or by federal or state law.
(Added by Stats. 2006, Ch. 700, Sec. 3. Effective January 1, 2007.)
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r
4 California Public Utilities Commission
January 2016
Frequently Asked Questions
Digital Infrastructure and
Video Competition Act of 2006
Q: What has changed in video franchising?
A: The Legislature passed, and Governor Schwarzenegger signed, Assembly Bill 2987
(Nunez), which established a new state video franchise process. The Digital
Infrastructure and Video Competition Act of 2006 (DIVCA) creates a new state franchise
process that replaces the current local franchise process to speed new infrastructure
investment and to promote competition for broadband and video services in California.
Q: What is the California Public Utilities Commission® (PUC) role in video
franchising?
A: DIVCA directs the California Public Utilities Commission (PUC) to issue state video
franchises for the provision of video. The PUC has a limited role set forth by DIVCA that
involves approving applications; enforcing antidiscrimination and build -out rules;
preventing the use of stand-alone, residential, primary line, basic phone service revenues
from being used to pay for deployment of video infrastructure; and handling complaints
brought forth by local governments regarding discrimination or build -out.
Q: What aspects of video franchising does the PUC not regulate?
A: Local entities, not the PUC, have sole authority to regulate the public, education, and
government (PEG) channel requirements; Emergency Alert System requirements
imposed by the Federal Communications Commission; and federal and state customer
service and protection standards. A local entity will be the lead agency for any
environmental review with respect to network construction, installation, and maintenance
in local rights-of-way. The PUC expects to work in partnership with the local entities to
ensure that issues of concern are promptly dealt with.
x California Public Utilities Commission
Q: What is the main benefit of a state video franchise program?
A: This state video program facilitates market entry of those companies that are most
eager to compete against existing cable and satellite video companies. Under current law,
absent a state video franchise program, a company that wants to provide video service
must obtain local cable franchises from each local city or town. This new law means that
new video competitors may greatly speed up their deployment of state-of-the-art
infrastructure that will deliver video and broadband services to Californians.
Q: What are the consumer benefits of the new video franchise order?
A: The California video franchise law will bring new competitors to cable and satellite
video providers. This new competition is expected to drive down prices for video services
(e.g., rates for cable and satellite video services from providers like DISH Network and
DirecTV). Once this new advanced infrastructure is in place, it also may be used to
provide very fast Internet service to consumers, in addition to new services like on -
demand television, movies, music, and more.
Q: What is the PUC doing to protect consumers, especially low-income and rural
Californians?
A: The PUC intends to vigorously enforce the antidiscrimination rules and build -out
requirements of the DIVCA to ensure that the migital Divide Elis narrowed in California.
An enforcement process is set forth in the video franchise decision that makes it clear that
the PUC intends to enforce these provisions, using sanctions ranging from monetary
fines, suspension, and revocation of the video franchise license.
Q: Who will consumers call if they have a problem with their cable or video
service bill?
A: Consumers will continue to contact their local franchise authority ❑usually a city or
county F1 about their cable or video service bills. The PUC does not have authority to
enforce customer service issues related to cable; that authority remains with local
government pursuant to state and federal law.
Q: Who is responsible for rate increases and changes in promotional packages?
A: Rates for video programming are deregulated, and the CPUC has no jurisdiction in
pricing issues.
Q: Who has authority to enforce video customer service rules?
A: Cities and counties have the sole jurisdiction to enforce video customer service rules.
Disputes between local entities and franchise holders can be settled in court.
For more information on the CPUC, please visit www.cpuc.ca.gov.
2x California Public Utilities Commission