Part 15SUBSCRIPTION TELEVISION

Section § 35001

Explanation

This law section defines specific terms related to subscription television in California. A 'local agency' refers to counties or cities, and for certain applications, only to unincorporated areas in counties. 'Subscription television' describes closed circuit TV services exclusively for subscribers, excluding community antenna systems and educational TV. It explains 'subscription television business' as providing subscription TV using physical lines, excluding regulated telephone companies providing channels. A 'subscription television corporation' is any entity managing these services. 'Subscriber' is anyone agreeing to receive the service. 'Total gross receipts' include all forms of compensation a subscription TV company receives, with exceptions for taxes and specific fees collected for the state or local agencies.

For the purposes of this part, the following terms, phrases, words, and their derivations shall have the following meanings unless otherwise indicated by the context:
(a)CA Revenue and Taxation Code § 35001(a) “Local agency” shall mean a county, a city (whether general law or chartered city) and a city and county. For the purpose of applying Section 35003, the term “local agency” when used in reference to a county includes only unincorporated areas of such county.
(b)CA Revenue and Taxation Code § 35001(b) “Subscription televison” shall mean closed circuit television which is provided to and can be received only by subscribers. The provisions of this part shall not apply to community antenna television systems, hotel or apartment antenna systems, or educational television systems, whether closed or open circuit.
(c)CA Revenue and Taxation Code § 35001(c) “Subscription television business” shall mean the business of operating and providing subscription television to subscribers by the use of wires, lines, coaxial cables, wave guides or other tangible conduits of communication for the transmission to subscribers of television and music, including connecting the establishments of subscribers, or causing such establishments to be connected, with such communication conduits; provided, however, that this part shall not apply to a telephone or telegraph corporation subject to regulation by the Public Utilities Commission of the State of California when such telephone or telegraph corporation furnishes channels for the transmission of subscription television programs by a subscription television corporation.
(d)CA Revenue and Taxation Code § 35001(d) “Subscription television corporation” shall mean a person, firm, partnership or corporation owning, controlling, operating or managing a subscription television business.
(e)CA Revenue and Taxation Code § 35001(e) “Subscriber” shall mean any person, firm, partnership, corporation or other public or private entity agreeing to receive subscription television.
(f)CA Revenue and Taxation Code § 35001(f) “Total gross receipts” shall mean any and all compensation and other consideration in any form whatever received directly or indirectly by a subscription television corporation or sponsors. Total gross receipts shall not include any taxes on the services furnished by a subscription television corporation imposed directly on subscribers, or any fees payable pursuant to Section 35003 to the State or any local agency, and collected from subscribers by such subscription television corporation.
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(Added by Stats. 1963, 1st Ex. Sess., Ch. 5. Note: This section was repealed on Nov. 3, 1964, by initiative Prop. 15 (the Free Television Act), but that action was invalidated by the Calif. Supreme Court in its Weaver v. Jordan decision.)

Section § 35002

Explanation

This law allows subscription television companies to operate in California and set up the necessary equipment to connect their services to subscribers. They can install things like poles, cables, and other equipment in public spaces such as streets and bodies of water. However, they must do so in a way that doesn’t disrupt public use of these areas or interfere with water navigation.

A subscription television corporation shall have authority to engage in the subscription television business in this State and within all or part of any local agency, local agencies, or combinations thereof, and in connection therewith to connect the establishments of subscribers, or to cause such establishments to be connected, with communication conduits by erecting, installing, constructing, repairing, replacing, reconstructing, maintaining and retaining such poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments and other property as may be necessary for such purpose, in, on, over, along and across any public street, road, highway or freeway or in, on, over, along and across any of the waters within this State in such manner and at such points as not to incommode the public use of the street, road, highway or freeway or to interrupt the navigation of the waters.
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(Added by Stats. 1963, 1st Ex. Sess., Ch. 5. Note: This section was repealed on Nov. 3, 1964, by initiative Prop. 15 (the Free Television Act), but that action was invalidated by the Calif. Supreme Court in its Weaver v. Jordan decision.)

Section § 35003

Explanation

Subscription television companies in California must pay 1% of their quarterly gross income to the State and also 1% to each local government where they operate. This local payment replaces other taxes or fees from the local government for operating licenses or business practices. The State Board of Equalization is responsible for collecting these payments and enforcing the law, and they have the authority to review company records to ensure compliance.

(a)CA Revenue and Taxation Code § 35003(a) Each subscription television corporation shall pay quarterly to the State one percent (1%) of the total gross receipts received in such quarter by such subscription television corporation. All amounts required to be paid to the State under this subdivision shall be paid to the State Board of Equalization.
(b)CA Revenue and Taxation Code § 35003(b) In addition thereto such subscription television corporation shall pay to each local agency within which it is conducting operations one percent (1%) of the total gross receipts received in such quarter by such subscription television corporation from subscribers or sponsors whose establishments at which subscription television was provided were within such local agency at the time such revenues were received. The quarterly payments to a local agency required by this subdivision are in lieu of all other taxes or fees imposed by the local agency receiving the payments upon the subscription television corporation for the privilege of exercising any franchise or engaging in business. The State Board of Equalization shall collect any amount required to be paid to a local agency under this subdivision, and shall transmit to the local agency involved the amount so collected as promptly as feasible.
(c)CA Revenue and Taxation Code § 35003(c) The State Board of Equalization shall enforce the provisions of this part and shall adopt such reasonable rules and regulations as they may deem necessary or proper to provide for and facilitate the making and reporting of payments provided for in this section. At all reasonable times the State Board of Equalization may examine all records kept or maintained by such subscription television corporation or under its control which treat of the operations, affairs, property or transactions of the corporation with respect thereto.
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(Added by Stats. 1963, 1st Ex. Sess., Ch. 5. Note: This section was repealed on Nov. 3, 1964, by initiative Prop. 15 (the Free Television Act), but that action was invalidated by the Calif. Supreme Court in its Weaver v. Jordan decision.)