The Digital Infrastructure and Video Competition Act of
Section § 5800
This law is called the Digital Infrastructure and Video Competition Act of 2006. It's the official name for this set of regulations.
Section § 5810
This law emphasizes the importance of increasing competition in video and broadband services across California. It highlights the benefits such as more choices for consumers, lower prices, and enhanced technological deployment. The state plans to create a system where service providers can easily offer video, voice, and broadband services throughout the state.
Key principles include fair competition among service providers, ensuring access to advanced cable and video services, protecting local government revenues and public spaces, and adherence to consumer protection laws. Additionally, it emphasizes maintaining public access channels, supporting broadband infrastructure investments, and sustaining the authority of the California Public Utilities Commission.
The law also mandates video service providers to pay local governments for using public spaces and ensures that any new video service franchise respects existing labor agreements. Furthermore, the revenue model should ensure local governments continue receiving the same level of revenue from franchise fees.
Section § 5820
This law states that holding a state-issued franchise does not guarantee a permanent right to the current franchise terms, meaning the state can change them. Telephone or video service providers must still comply with state and federal environmental laws, with local entities leading environmental reviews and potentially imposing conditions to lessen environmental impact. Also, franchises providing video services are not considered public utilities, and the law doesn't allow the commission to control video service rates or terms unless specifically stated in this division.
Section § 5830
This section defines key terms related to providing cable and video services, essential for understanding the rules and regulations for those services in California.
'Broadband' refers to any service classified by the FCC as such. A 'cable operator' is someone who owns or manages a cable system. 'Cable service' and 'cable system' definitions are set by federal law. 'Franchise' is the right to build a network providing video services, and a 'franchise fee' is associated with this right.
'Holder' is a person issued a state franchise, allowing them to provide services within public rights-of-way. Local authorities, termed 'local franchising entities,' can regulate and collect fees from cable operators. 'Video service' includes various programming services delivered through networks situated in public areas.
Other terms like 'network,' 'open-video system' (OVS), and 'public rights-of-way' specify components and areas involved in video service delivery. 'Subscriber' is someone who pays for these services, while the 'video service provider' is the entity delivering these services.
Section § 5840
This law gives the California Public Utilities Commission the authority to issue state franchises for video service providers, making it the sole franchising body. Applicants must apply to the commission, paying fees only to cover application costs. To qualify for a franchise, providers must adhere to service and consumer protection laws. They must also submit detailed applications including service area descriptions and company qualifications. Providers cannot operate without a franchise, and the franchise can transfer to successors or be terminated with proper notice. The franchise fee is set at 5% of gross revenues, potentially less if a local entity dictates. All franchises in an area are subject to the same fee structure, although different rules apply if a local entity owns the network used by the provider.
Section § 5850
If a company with a state-issued license to provide video services in California wants to continue doing so beyond 10 years, it must apply to renew the license for another 10-year term. The renewal process follows specific criteria set out in a different section and can't be changed by the state commission. Any violations of court orders might prevent the renewal from being approved. The whole process needs to line up with federal laws, too.
Section § 5860
This law states that companies holding a state franchise to provide video services must pay a franchise fee to local governments based on their revenue from these services. The fee calculation is based on 'gross revenues,' which includes the money they receive from subscribers for video services, equipment rentals, and certain advertising and promotional income. However, some types of income, like bad debt and refunds, are not included. These payments are made quarterly, and if late, additional charges apply. Local governments have the right to review the company's records to ensure the fees are correctly paid, and they can settle disputes in court if necessary. Companies can list these fees separately on customer bills.
Section § 5870
This law outlines the responsibilities of state franchise holders in California regarding public, educational, and governmental (PEG) access channels. Franchise holders must provide the same number of PEG channels as the local cable operator with the most channels as of January 1, 2007, with a time frame for compliance. These channels must be used exclusively for noncommercial purposes, though they may generate funding through advertising and sponsorships.
PEG channels should be on the same basic service tier as commercial channels, and their use is measured quarterly. A local entity can request up to three PEG channels if fewer were available in 2007. An extra channel can be added based on local programming volume. If a PEG channel isn’t used for 8 hours daily, the franchise holder can repurpose it until usage increases.
The local entity manages PEG content, and the franchise holder is only responsible for transmission. Franchise holders aren't obligated to carry PEG content branded with competitor information. Fees for supporting PEG channels can be imposed, and franchise holders can pass these fees to subscribers. Courts are responsible for resolving disputes under this law section.
Section § 5880
This law requires that companies with state-issued franchises must follow the Federal Communications Commission's rules for the Emergency Alert System. This ensures they can broadcast emergency messages over their networks. Additionally, if there are local franchise agreements that allow for local emergency notifications, they will continue to be valid for their original duration or until the specific date mentioned, which is January 1, 2009, whichever comes later.
Section § 5885
This law explains the rules for local entities when dealing with state franchise holders who want to build or maintain networks in public areas. It mandates that these franchises can work under the same rules as telephone companies, ensuring they're not allowed to change existing permit and environmental laws. When applying for a permit, known as an encroachment permit, local entities must decide on the application within 60 days and provide reasons for denial if applicable. There must also be a system for appealing denied applications. Local entities can't enforce rules that would let them buy or force the sale of a franchise's network.
Section § 5890
This law ensures that cable operators or video service providers with a state franchise cannot deny service to potential customers based on their income. For providers with over 1 million telephone customers in California, they must meet specific thresholds of providing service to low-income households within set timeframes and offer free service to community centers in underserved areas. Providers with fewer customers must extend service within their areas unless it's exceptionally costly. There is a presumption against discrimination if they're the only provider in an area. If providers predominantly use fiber optics, they have additional deployment targets. Providers can apply for deadline extensions for certain requirements if circumstances beyond their control occur. Local governments can report non-compliance, and fines can be imposed for violations. If a court finds a provider in violation, it can terminate their franchise.
Section § 5895
This law section requires the commission to gather specific data about where state franchise holders are providing services. They must also set and enforce customer service rules, and handle any related complaints. Importantly, any personal information collected through this process must remain private and not be shared publicly, unless it complies with another legal section (Section 583). Additionally, 'actual locations' means they need to collect address data.
Section § 5900
This law outlines the obligations of state franchise holders providing video services in terms of customer service and consumer protection. They must adhere to existing and new standards from various legal sources and technology changes. Local entities can enforce these standards but cannot create new ones. Penalties apply for breaches, with increasing fine amounts for repeated violations within a year. However, if multiple financial obligations exist for the same issue, deductions are applied. Providers are notified of breaches and given a month to fix them. Penalties collected are shared with the Digital Divide Account. Individuals can challenge local entity decisions in court, which will review issues afresh. "Material breach" refers to significant, repeated service failures. The Public Advocate’s Office can advocate for video subscribers' rights concerning franchise renewal and this law, having access to relevant information from the commission under privacy rules.
Section § 5910
This law requires companies holding a state franchise to conduct background checks on job applicants, specifically for roles that involve access to important equipment and locations like networks and subscriber premises. The same background checks must also be done on independent contractors, vendors, and their employees if they have similar access and responsibilities.
These contractors and vendors must confirm they've done these checks and share the results if asked. The franchise holder doesn't have to manage or pay for these checks for non-employees unless agreed otherwise. However, temporary workers fixing emergency issues, like after a natural disaster, are exempt from these checks.
Section § 5920
This California Public Utilities Code requires companies with state franchises that have over 750 employees in California to provide an annual report to the commission. They must include: the number of full-time equivalent employees who are California residents, the percentage of their domestic workforce, and details about job types and average pay for those residing in California. It also requires information about workers from other states hired through contractors, if allowed. Finally, they must report on new job positions expected in the next year.
Section § 5930
This section outlines rules for video service providers and cable operators in California regarding franchise agreements with local entities. Providers with existing agreements cannot apply for a state franchise or terminate their local franchise before July 1, 2014, in applicable counties with specific court-approved judgments. They must abide by their current agreements until then.
If a cable operator's franchise expired or expires by January 2, 2008, local entities can extend the agreement under its current terms until that date. For incumbents, a state franchise can't start until after January 2, 2008.
When a provider with a state franchise gives notice to local entities, those entities can mandate incumbent cable operators to seek a state franchise. The local agreement will end when a state franchise covers the provider's service area and the provider begins offering state-regulated services.
Section § 5940
If a company has a state franchise and offers basic residential phone service, it cannot raise the rates for these phone services to pay for building a video service network.
Section § 5950
This law states that from July 1, 2006, to January 1, 2009, traditional phone companies (acting as local carriers and offering video services) cannot raise rates for basic home phone lines above the rates set on July 1, 2006. However, they can increase rates if adjusted for inflation based on the Consumer Price Index. The rule doesn’t apply to rate hikes for phone service bundled with other services, and it doesn't stop the enforcement of specific commission decisions made before July 1, 2006.
Section § 5970
This law allows the transfer of a state franchise, like a license to operate a service, to another party who's taking over from the current holder. This can happen through various means, such as selling, merging, or restructuring, as long as two conditions are met: The new party must provide all required information to the commission, and they must agree to uphold any existing worker agreements, like union deals, just as the original holder would have.