Selected State password Sections of details Interest to Cable Operators

In this ar you will uncover California laws and Title using of the interactions Act i beg your pardon relate especially to CCTA’s members and also the video, voice and also Internet solutions they provide. The most important addition to this ar this year is the Digital framework and video clip Competition act of 2006 (“DIVCA”). While us have consisted of a couple of general organization codes, the statutes had here are by no means exhaustive of the laws, regulations and rules that use to CCTA’s members. For more information top top California laws and also legislative activities, us encourage girlfriend to walk to the State’s main website, CCTA employee keeps apprised of brand-new developments through respect come state and federal laws and regulations which influence CCTA’s members. Please feel complimentary to call CCTA employee if you space in need of any kind of assistance.

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DEFINITION Public Utilities password # 216.4 specifies a cable television corporation as any kind of corporation or firm which transmits tv programs through cable to subscribers because that a fee.

THE DIGITAL framework AND video COMPETITION plot OF 2006 Public Utilities Code section 5800 et. Seq. Creates a considerable State frame for video franchising. The empowers the general public Utilities Commission to act as the franchising authority for the State and also splits authority because that various aspects of regulation of video service providers in between the State and also local government.

LOCAL FRANCHISING Government Code Section 53066 permits cities and also counties come authorize, by franchise or license, the building of a cable tv system.

FRANCHISE FEES Government Code Section 53066.01 borders the advance payment of franchise fees come the quantity due for the 12 months following the advancement payment, and further gives that only the early payment may be do in advance.

ACCESS to CABLE business Government Code Section 53066.2 prohibits “redlining” of potential subscribers other than under details circumstances.

OVERBUILDS Government Code Section 53066.3 sets soon a number of items come be thought about by franchising authorities prior to granting or denying secondary franchise to offer a currently franchised area. That is stated that the brand-new franchise wire and serve the exact same geographical area, and also contain the same accessibility requirements collection forth in the present franchise.

LOCKBOXES Government Code Section 53066.4 requires cable operator to do lockboxes obtainable to subscribers if the mechanism carries a pay channel giving adult programming and sets soon the maximum charge for such devices.

SUBSCRIBER an alert Government Code Section 53066.5 needs cable operator to notify new subscribers if audio or video clip signals may be present on channels to i m sorry they perform not subscribe, i.e. Adult programming that might be attack to part subscribers.

CABLE tv AND video clip PROVIDER client SERVICE and INFORMATION action Government Code Section 53054 et seq. Needs that cable operators create customer business standards and notify subscribers that those criter annually. Cable operators are compelled to report come subscribers on their success in meeting those standards. Franchise authorities might impose fines for failure to administer this information.

VIDEO CUSTOMER business ACT Government Code Section 53088 calls for thirty job written notification before enhancing rates or deleting channels, creates standards because that billing dates and termination the service, and also establishes measures for dealing with grievances, dispute resolutions and also wrongful termination. Franchise authorities room authorized to administer a schedule of penalty for failure to comply with these provisions.

LATE FEES Government Code Section 53088.6 et seq. Set forth procedures which should be adhered to by an operator in order come impose a late fee ~ above a subscriber for any kind of delinquent payment for cable television services. A rate fee of $4.75 is valid, together is a fee no in overabundance of $10.00 if the operator should send a representative come the subscriber’s residence to collection payment or disconnect service.

OPERATOR access TO new DEVELOPMENTS Government Code Section 66473.3 authorizes cities and also counties to need that developers, together a problem to the approval that residential subdivisions, permit the cable television agency to download its equipment in proposed utility easements ~ above the developer property, prior to a dedication of those easements. The effect is to allow cable to occupy the utilities’ joint trench.

Government Code Section 66473.6 calls for subdividers come reimburse cable operators for prices of relocation, undergrounding, or replacement of cable plant when necessitated by a need the city has imposed upon the developer.

DAMAGE come CABLE tree Penal Code Section 591 offers criminal penalties for malicious damage to cable plant.

Corporate Code Section 14400 gives for polite damages for the same.

TIME duration FOR business OR fix Civil Code Section 1722 gives cable subscribers the right to have a company connection or repair commenced within a four-hour duration if the subscriber’s presence is required. Cable companies should offer the four-hour period at the moment a subscriber calls, or through notifying subscribers by mail 3 times a year. The four-hour period must be noted only if the subscriber especially requests it.

THEFT the CABLE company Penal Code Section 593d provides criminal penalties and also civil damages and remedies because that the theft of cable service.

SUBSCRIBER PRIVACY civil liberties Penal Code Section 637.5 sets forth the duties and also obligations that cable operators about subscriber privacy. It need to be noted that this provisions space not preempted by the privacy provisions in title IV of the commonwealth Cable communications Act.

POLE ATTACHMENTS Public utility Code Section 767.5 sets soon the procedure through which the publicly Utilities the supervisory board will clear up disputes in between public utilities and also cable operators regarding rates, terms, or problems for pole attachments or conduit occupancy.

PUBLICLY-OWNED UTILITIES: Public Utilities Code ar 9510: (a) The legislature finds and declares the in bespeak to promote wireline and also wireless broadband accessibility and adoption, it is in the interest of the state to ensure that regional publicly owned electrical utilities, including irrigation districts, that very own or control utility poles and also support structures, including ducts and conduits, make obtainable appropriate an are and capacity on and also in those structures to cable tv corporations, video clip service providers, and telephone corporations under reasonable rates, terms, and also conditions.

VOIP: Public Utilities Code section 710: The Commission has no jurisdiction to manage VoIP:The the supervisory board shall no exercise regulatory jurisdiction or control over Voice over web Protocol and also Internet Protocol permitted services other than as required or specifically delegated through federal regulation or specifically directed to carry out so by state or as set forth in subdivision.

UNDERGROUNDING Business and also Professions Code Section 7042.5 requires cable operators to obtain a state contractor’s patent for certain underground trenching within public streets. The patent is forced when installation a key trunk or distribution cable, yet not once connecting a subscriber come the key trunk or distribution cable.

Government Code Section 4216 calls for that owner of subsurface installations, including cable, operated or preserved in or across a windy street or right-of-way, belong come a regional notification center, and also meet particular requirements prior to excavating.

COUNTY plank MEETINGS Government Code Section 26156 permits a county board of supervisors to contract through cable operators to bring meetings the the board.

SAFETY Public Utilities Code Section 768.5 gives the public Utilities commission the government to regulate the operation of cable solution for safety and security purposes.

Labor Code Section 6401.7 needs employers to establish, implement and also maintain an injury avoidance program.

VEHICLES Vehicle Code Section 25274 authorizes vehicles involved in the building or maintain of cable television solution to display flashing amber warning lights.

BACKGROUND check Penal code Section Section 11105 patent cable operator to accessibility information native the Attorney general for the function of conducting criminal background check on employees, contract employees, or subcontract employees who, in the course of their employment may be seeking enntrance gate to personal residences or nearby grounds.

THE DIGITAL infrastructure AND video COMPETITION action OF 2006

SECTION 1. Section 401 of the general public Utilities password is amended come read:

401. (a) The legislature finds and also declares that the general public interest is finest served by a commission that is accordingly funded and also staffed, that deserve to thoroughly research the issues prior to it, and also that can take timely and also well-considered action on matters before it. The Legislature further finds and declares that resources the commission by method of a reasonable fee enforced upon each common carrier and also business associated thereto, each public utility that the board of directors regulates, and also each applicant for, or holder of, a state franchise pursuant to department 2.5 (commencing with section 5800), helps to attain those goals and is, therefore, in the general public interest.

(b) The legislature intends, in it spreads widespread this chapter, that the fees levied and gathered pursuant thereto create enough, and also only enough, earnings to fund the commission v (1) its authorized expenditures because that each fiscal year to regulate usual carriers and also businesses associated thereto, windy utilities, and also applicants and holders that a state franchise to it is in a video service provider, less the amount come be payment from unique accounts except those established by this article, reimbursements, commonwealth funds, and the unencumbered balance from the coming before year; (2) an proper reserve; and also (3) any adjustment appropriated through the Legislature.

(c) For objectives of this chapter, an “appropriate reserve” means a to make reservation in enhancement to the commission’s complete authorized annual budget to regulate usual carriers and also related businesses, public utilities, and also applicants and also holders of a state franchise to it is in a video clip service provider, to be determined by the commission based on its past and also projected operating experience.

SECTION 2. Short article 4 (commencing with ar 440) is included to chapter 2.5 of component 1 of department 1 of the general public Utilities Code, come read:

Article 4. Video clip Service Franchises

440. (a) For purposes of this article, “state franchise,” “video service,” and also “video organization provider” shall have the same meaning as those terms are defined in ar 5830.

(b) the general public Utilities Commission video clip Franchising Account is hereby produced in the general public Utilities commission Utilities Reimbursement Account.

441. The the supervisory board shall yearly determine a fee to be payment by an applicant or holder that a state franchise pursuant to department 2.5 (commencing with ar 5800). The yearly fee shall be created to develop a full amount same to that amount developed in the authorized commission budget for the exact same year, consisting of adjustments for increases in employee compensation, other increases appropriated by the Legislature, and an appropriate reserve to bring out the provisions of department 2.5 (commencing with section 5800), less the amount to be payment from reimbursements, federal funds, and also any various other revenues, and the lot of unencumbered funds from the preceding year.

442. (a) The board of directors shall create the dues pursuant to ar 441 through the approval the the room of Finance. The commission shall specify the lot of its spending plan to be financed by the dues in its yearly budget request.

(b) The fee shall it is in determined and also imposed through the commission continual with the requirements of ar 542 of title 47 of the United claims Code.

(c) all fees gathered by the board of directors pursuant to this ar shall it is in transmitted to the Treasurer at the very least quarterly for deposit in the public Utilities Commission video clip Franchising Account.

(d) The the supervisory board shall maintain those documents as are crucial to account individually for every fees and also charges, consisting of the fees authorized by section 441.

(e) The commission shall authorize refunds that the fees provided for in this write-up when the fees were accumulated in error.

443. (a) The commission might require a video service provider subject to this article to furnish information and also reports come the commission, at the time or time it specifies, to allow it to recognize the fees pursuant to ar 441.

(b) Any video service provider forced to submit information and also reports under this post may, in lieu thereof, submit info or reports do to any type of other governmental company if all of the complying with are met:

(1) The alternative information or reports contain every one of the information compelled by the commission.

(2) The requirements to i m sorry the alternate reports or info are responsive are clearly identified.

(3) The details or reports are certified through the video clip service provider to it is in true and correct.

444. (a) If a video service provider subject to this short article is in default the the payment of any type of fee forced by this short article for a duration of 30 work or more, the commission might suspend or revoke the state franchise that the video clip service provider or order the video service provider to cease and also desist indigenous conducting all operations subject to the franchising government of the commission. The commission might estimate from all obtainable information the suitable fee and also may include to the amount of that estimated fee, a penalty no to exceed 25 percent of the amount, top top account of the failure, refusal, or disregard to prepare and also submit the report or to pay the fee, and also the video clip service provider shall be estopped come complain that the quantity of the commission’s estimate.

(b) upon payment the the fee so estimated and penalty, if applicable, the state franchise that the video service provider exposed in accordance v this ar shall it is in reinstated or the order come cease and also desist revoked. The the supervisory board may give a reasonable expansion of the 30-day period to any video clip service provider upon written application and also a showing of the need of the extension.

(c) upon revocation of any type of state franchise or issuance of an order come cease and also desist pursuant to this section, all fees in default shall end up being due and also payable immediately.

(d) The commission may bring an action, in its very own name or in the surname of the world of the state, in any kind of court of proficient jurisdiction, for the arsenal of delinquent fees estimated under this article, or for an lot due, owing, and also unpaid to it, as displayed by report filed through the commission, together with a punish of 25 percent because that the delinquency.

SECTION 3. Department 2.5 (commencing with section 5800) is added to the general public Utilities Code, to read:

DIVISION 2.5. THE DIGITAL facilities AND video COMPETITION action OF 2006

5800. This act shall it is in known and may it is in cited as the Digital framework and video clip Competition act of 2006.

5810. (a) The legislative finds and declares all of the following:


Increasing compete for video and broadband services is a matter of statewide issue for all of the following reasons:

(A) video and cable services provide numerous benefits to every Californians including access to a range of news, publicly information, education, and entertainment programming.

(B) raised competition in the cable and video service sector provides consumers with much more choice, lowers prices, speed the deployment of brand-new communication and also broadband technologies, create jobs, and benefits the California economy.

(C) To encourage competition, the state should establish a state-issued franchise authorization process that permits market participants to usage their networks and also systems to administer video, voice, and also broadband solutions to all inhabitants of the state.

(D) vain for video service need to increase methods for programming that appeals to California’s diverse populace and many cultural communities.

(2) regulation to build this brand-new process must adhere come the following principles:

(A) produce a fair and level playing ar for every market competitors that does not disadvantage or advantage one service provider or technology over another.

(B) encourage the widespread access to the many technologically progressed cable and video services to all California communities in a nondiscriminatory manner nevertheless of socioeconomic status.

(C) safeguard local government revenues and also control of publicly rights-of-way.

(D) Require market participants come comply through all applicable customer protection laws.

(E) match efforts to increase investment in broadband infrastructure and also close the digital divide.

(F) Continue access to and also maintenance the the public, education, and government (PEG) channels.

(G) maintain all existing authority of the California publicly Utilities the supervisory board as created in state and also federal statutes.


The public attention is ideal served when sufficient funds are appropriated come the the supervisory board to carry out adequate staff and resources to appropriately and timely process applications of video clip service providers and to ensure complete compliance through the requirements of this division. The is the will of the legislative branch that, although video service service providers are not public utilities or usual carriers, the commission shall collect any kind of fees authorized by this department in the exact same manner and also under the very same terms as it collects fees from typical carriers, electric corporations, gas corporations, telephone corporations, telegraph corporations, water corporations, and every various other public energy providing company directly to customers or subscribers subject to the jurisdiction such that it does not discriminate against video clip service carriers or your subscribers.


Providing an incumbent cable operator the alternative to for sure a state-issued franchise v the preemption the an currently cable franchise in between a cable operator and any politics subdivision of the state, including, however not restricted to, a charter city, county, or city and also county, is crucial element of the new regulatory framework created by this act as a issue of statewide problem to finest ensure same protection and also parity among providers and also technologies, as well as to achieve the goals stated by the legislature in it spreads widely this act.

(b) the is the intent of the Legislature that a video clip service provider candlestick pay together rent a franchise fee come the neighborhood entity in whose jurisdiction company is being noted for the continued use the streets, public facilities, and other rights-of-way the the regional entity in order to carry out service. The Legislature recognizes that neighborhood entities have to be compensated because that the usage of the general public rights-of-way and that the franchise fees is intended come compensate lock in the form of rent or a toll, similar to that which the court found to be appropriate in Santa Barbara ar Taxpayers association v. Plank of Supervisors because that the ar of Santa Barbara (1989) 257 Cal. App. 615.

(c) that is the will of the legislature that collective bargaining agreements be respected.

(d) that is the will of the Legislature that the an interpretation of gross profits in this division shall result in regional entities keeping their existing level that revenue indigenous franchise fees.

5820. (a) nothing in this division shall be deemed as developing a vested right in a state-issued franchise by the franchise holder or the affiliates that would certainly preclude the state native amending the provisions that develop the terms and conditions the a franchise.

(b) naught in this department shall be understood to eliminate or minimize a phone call corporation’s or video service provider’s responsibilities under any type of applicable state or federal eco-friendly protection laws. The neighborhood entity shall serve as the lead company for any kind of environmental testimonial under this division and may impose problems to mitigate eco-friendly impacts of the applicant’s use of the general public rights-of-way that might be required pursuant come the California environmental Quality act (Division 13 (commencing with ar 21000) of the Public sources Code).

(c) The holder the a state franchise shall not be considered a public utility as a result of providing video clip service under this division. This department shall no be construed as providing authority to the board of directors to manage the rates, terms, and also conditions of video services, other than as explicitly collection forth in this division.

5830. For purposes of this division, the following words have the adhering to meanings:

(a) “Broadband” method any business defined together broadband in the most recent Federal interactions Commission inquiry pursuant to section 706 of the Telecommunications action of 1996 (P.L. 104-104).

(b) “Cable operator” method any person or group of persons the either gives cable service over a cable system and directly, or v one or more affiliates, own a far-reaching interest in a cable system; or that otherwise controls or is responsible for, through any arrangement, the management and also operation that a cable system, as collection forth in ar 522(5) of title 47 the the United states Code.

(c) “Cable service” is identified as the one-way transmission to subscribers the either video clip programming, or various other programming service, and subscriber interaction, if any, that is forced for the an option or usage of video programming or other programming service, as collection forth in

Section 522(6) of location 47 of the United says Code.

(d) “Cable system” is defined as set forth in section 522(7) of location 47 that the United says Code.

(e) “Commission” means the windy Utilities Commission.

(f) “Franchise” means an initial authorization, or renewal of an authorization, issued by a franchising entity, nevertheless of whether the authorization is designated together a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, the authorizes the construction and also operation of any kind of network in the right-of-way capable of providing video service come subscribers.

(g) “Franchise fee” method the fee adopted pursuant to ar 5840.

(h) “Local franchising entity” means the city, county, city and also county, or share powers authority entitled to require franchises and also impose fees top top cable operators, as set forth in section 53066 the the federal government Code.

(i) “Holder” means a person or group of people that has actually been issued a state franchise native the board of directors pursuant come this division.

(j) “Incumbent cable operator” way a cable operator or OVS serving subscribers under a franchise in a certain city, county, or city and also county franchise area ~ above January 1, 2007.

(k) “Local entity” method any city, county, city and also county, or joint powers authority within the state within who jurisdiction a holder that a state franchise under this department may administer cable organization or video clip service.

(l) “Network” way a ingredient of a facility the is wholly or partly physically located within a publicly right-of-way and also that is provided to provide video service, cable service, voice, or data services.

(m) “Open-video system” or “OVS” way those services collection forth in section 573 of title 47 the the United states Code.

(n) “OVS operator” method any human being or team of persons that either provides cable business over an open-video mechanism directly, or v one or much more affiliates, own a far-reaching interest in an open-video system, or the otherwise controls or is responsible for, through any arrangement, the monitoring of one open-video system.

(o) “Public right-of-way” method the area along and also upon any kind of public roadway or highway, or follow me or across any of the waters or lands within the state.

(p) “State franchise” means a franchise that is authorize pursuant to this division.

(q) “Subscriber” way a human who legit receives video clip service from the holder that a state franchise for a fee.

(r) “Video programming” method programming provided by, or typically considered comparable to programming listed by, a tv broadcast station, as set forth in section 522(20) ofTitle 47 of the United claims Code.

(s) “Video service” way video programming services, cable service, or OVS service detailed through framework located at least in component in publicly rights-of-way without regard to delivery technology, consisting of Internet protocol or other technology. This an interpretation does not include (1) any video clip programming noted by a advertising mobile service provider identified in ar 322(d) of location 47 the the United claims Code, or (2) video clip programming provided as part of, and also via, a business that enables users to access content, information, electronic mail, or various other services readily available over the public Internet.

(t) “Video service provider” way an reality providing video clip service.

5840. (a) The the supervisory board is the single franchising authority for a state franchise come provide video clip service under this division. Neither the board of directors nor any local franchising entity or other local entity of the state might require the holder of a state franchise to attain a different franchise or otherwise impose any kind of requirement on any kind of holder the a state franchise other than as expressly listed in this division. Sections 53066, 53066.01, 53066.2, and 53066.3 the the government Code candlestick not apply to holders that a state franchise.

(b) The application procedure described in this section and the authority granted come the commission under this section shall not exceed the provisions set forth in this section.

(c) any kind of person or copy, group who looks for to provide video clip service in this state because that which a franchise has actually not already been issued, ~ January 1, 2008, shall paper an application for a state franchise with the commission. The commission may impose a fee on the applicant that shall no exceed the actual and reasonable costs of handling the application and also shall not be levied for general revenue purposes.

(d) No person or corporation shall it is in eligible for a state-issued franchise, consisting of a franchise derived from regeneration or deliver of an existing franchise, if that human or copy, group is in violation of any kind of final nonappealable bespeak relating to one of two people the Cable tv and video clip Provider customer Service and Information action (Article 3.5 (commencing with section 53054) of chapter 1 of part 1 of division 2 of title 5 the the federal government Code) or the video clip Customer company Act (Article 4.5 (commencing with ar 53088) of chapter 1 of component 1 of department 2 of location 5 of the government Code).

(e) The application for a state franchise shall it is in made top top a type prescribed by the commission and shall include every one of the following:


A sworn affidavit, signed under penalty of perjury by one officer or another person authorized to tie the applicant, the affirms every one of the following:

(A) that the applicant has filed or will timely document with the Federal communications Commission all forms required by the Federal communications Commission before offering cable service or video clip service in this state.

(B) that the applicant or its affiliates agrees to comply through all federal and also state statutes, rules, and regulations, including, however not restricted to, the following:

(i) A statement that the applicant will not discriminate in the supplication of video clip or cable services as detailed in section 5890.

(ii) A statement that the applicant will certainly abide by every applicable customer protection laws and rules as listed in ar 5900.

(iii) A statement the the applicant will remit the fee forced by subdivision (a) of ar 5860 come the neighborhood entity.

(iv) A statement that the applicant will carry out PEG channels and the required funding as compelled by ar 5870.

(C) that the applicant agrees to comply v all lawful city, county, or city and county regulations about the time, place, and manner the using the public rights-of-way, including, however not restricted to, payment the applicable encroachment, permit, and inspection fees.

(D) that the applicant will certainly concurrently provide a copy the the application to any type of local entity where the applicant will provide service.

(2) The applicant’s legitimate name and any name under i beg your pardon the applicant go or will do business in this state.


The resolve and telephone variety of the applicant’s principal ar of business, together with contact info for the human being responsible for ongoing interactions with the department.

(4) The names and titles the the applicant’s major officers.

(5) The legit name, address, and telephone variety of the applicant’s parent company, if any.


A description of the video clip service area footprint the is suggest to be served, as figured out by a collection of United claims Census office Block number (13 digit) or a geographic information device digital boundary meeting or exceeding nationwide map accuracy standards. This summary shall incorporate the socioeconomic status details of all occupants within the service area footprint.


If the applicant is a telephone copy, group or one affiliate of a call corporation, as characterized in ar 234, a description of the region in i m sorry the agency provides phone call service. The summary shall incorporate socioeconomic status info of all inhabitants within the phone call corporation’s business territory.

(8) The expected date for the deployment of video clip service in every of the areas identified in paragraph (6).


Adequate assurance the the applicant possesses the financial, legal, and technical qualifications crucial to construct and also operate the proposed system and also promptly repair any kind of damage to the general public right-of-way resulted in by the applicant. To accomplish these requirements, the commission may require a bond.

(f) The commission may require the a corporation through wholly owned subsidiaries or affiliates is eligible only for a single state-issued franchise and prohibit the hold of many franchises through separate subsidiaries or affiliates. The board of directors may establish procedures because that a holder the a state-issued franchise to amend its franchise to reflect transforms in its company area.

(g) The commission chandelier commence accepting applications for a state franchise no later than April 1, 2007.

(h) (1) The the supervisory board shall educate an applicant for a state franchise and also any affected local entities whether the applicant’s applications is finish or incomplete before the 30th calendar work after the applicant submits the application.


If the commission finds the applications is complete, that shall worry a state franchise before the 14th calendar job after that finding.


If the board of directors finds the the applications is incomplete, it shall specify through particularity the items in the application that room incomplete and permit the applicant come amend the applications to cure any kind of deficiency. The the supervisory board shall have 30 calendar days from the date the application is amended to recognize its completeness.


The fail of the commission to notify the applicant that the completeness or incompleteness the the application before the 44th calendar day after receipt of an applications shall be deemed to constitute issuance that the certificate used for there is no further activity on instead of of the applicant.

(i) The state franchise issued by the commission shall contain every one of the following:

(1) A approve of government to provide video clip service in the company area footprint as asked for in the application.


A approve of government to use the general public rights-of-way, in exchange for the franchise fee adopted under subdivision (q), in the distribution of video service, subject to the legislations of this state.


A statement that the give of authority is topic to lawful operation of the cable service or video clip service by the applicant or its successor in interest.

(j) The state franchise issued by the commission may be terminated through the video service provider by submitting at least 90 job prior written an alert to customers, local entities, and also the commission.

(k) that is unlawful to provide video service there is no a state or in your ar issued franchise.

(l) topic to the an alert requirements the this division, a state franchise may be transferred to any follower in attention of the holder come which the certificate is initially granted, noted that the transferee first submits all of the information compelled of the applicant by this section to the commission.

(m) In connection with, or together a problem of, receiving a state franchise, the commission shall need a holder to notify the commission and also any applicable regional entity in ~ 14 service days of any type of of the following alters involving the holder or the state franchise:

(1) any type of transaction involving a readjust 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 service name. The holder shall send to the board of directors a certified copy of either of the following:

(A) The suggest amendment to the state franchise.

(B) The certificate of assumed service name.

(3) A change in the holder’s principal business deal with or in the surname of the human authorized come receive an alert on behalf of the holder.

(4) any transfer the the state franchise come a follower in interest of the holder. The holder shall determine the successor in attention to which the move is made.

(5) The discontinuation of any type of state franchise authorize under this division. The holder shall recognize both of the following:

(A) The variety of customers in the service area extended by the state franchise gift terminated.\\

(B) The technique by i beg your pardon the holder’s client were informed of the termination.


A adjust in one or much more of the service locations of this department that would increase or to decrease the territory within the organization area. The holder shall define the new boundaries that the affected service areas after the proposed readjust is made.

(n) prior to offering video service in a regional entity’s jurisdiction, the holder that a state franchise shall educate the regional entity that the video service provider will provide video service in the regional entity’s jurisdiction. The notice shall be offered at least 10 days, yet no much more than 60 days, before the video clip service provider begins to offer service.

(o) Any video clip service provider that right now holds a franchise through a regional franchising entity is entitled to seek a state franchise in the area designated in the franchise ~ above meeting any of the adhering to conditions:

(1) The expiration, former to any renewal or extension, that its neighborhood franchise.


A support agreed top top date set by both the local franchising reality and video service provider to end the franchise listed in creating by both parties to the commission.


When a video service provider the holds a state franchise provides the notice required pursuant to subdivision (m) come a regional jurisdiction the it intends come initiate providing video clip service in every or part of that jurisdiction, a video service provider operating under a franchise approve by a regional franchising authority may elect to obtain a state franchise to replace its in your ar issued franchise. The franchise authorize by the regional franchising entity shall terminate and be replaced by a state franchise as soon as the state franchising authority worries a state franchise because that the video service provider that consists of the entire company area served by the video clip service provider and also the video service provider informs the regional entity that it will start providing video service in that area under a state franchise.

(p) Notwithstanding any rights come the contrary, one incumbent cable operator opting into a state franchise under this subdivision shall proceed to serve all areas as compelled by its neighborhood franchise agreement existing ~ above January 1, 2007, until that neighborhood franchise otherwise would have actually expired. However, one incumbent cable operator that is additionally a telephone coporation, group with much less than 1,000,000 telephone customers in California and is providing video clip service in competition with an additional incumbent cable operator shall not be forced to provide service past the area in which the is providing video clip service together of January 1, 2007.

(q) (1)

There is hereby adopted a state franchise dues payable together rent or a toll for the use of the general public right-of-way by holders the the state franchise issued pursuant to this division. The quantity of the state franchise fees shall it is in 5 percent of gun revenues, as identified in subdivision (d) of section 5860, or the percentage applied by the neighborhood entity to the gun revenue of the incumbent cable operator, whichever is less. If there is no incumbent cable operator or top top the expiration of the incumbent cable operator’s franchise, the amount of the state franchise dues shall it is in 5 percent of pistol revenues, as defined in subdivision (d) of ar 5860, uneven the regional entity by an ordinance setup the quantity of the franchise dues at much less than 5 percent.


(A) The state franchise dues shall apply equally come all video service service providers in the neighborhood entity’s jurisdiction.

(B) nevertheless subparagraph (A), if the video clip service provider is leasing accessibility to a network own by a regional entity, the regional entity may set a franchise fees for accessibility to the network various from the franchise fee fee to a video clip service provider for accessibility to the rights-of-way to install its very own network.

5850. (a) A state-issued franchise shall only be valid for 10 years after the date of issuance, and the video service provider shall use for a rebirth of the state franchise for an additional 10-year duration if it wishes to continue to provide video clip services in the area covered by the franchise ~ the expiration of the franchise.

(b) other than as noted in this section, the criteria and procedure described in ar 5840 shall use to a rebirth registration, and also the the supervisory board shall not impose any extr or various criteria.

(c) regeneration of a state franchise shall be regular with federal law and also regulations.

(d) The commission shall not renew the franchise if the video service provider is in violation of any type of final nonappealable court stimulate issued pursuant come this division.

5860. (a) The holder the a state franchise the offers video service in ~ the jurisdiction of the local entity chandelier calculate and remit come the neighborhood entity a state franchise fee, adopted pursuant come subdivision (q) of ar 5840, as provided in this section. The responsibility to remit the franchise fee to a regional entity begins automatically upon provision of video clip service in ~ that regional entity’ s jurisdiction. However, the remittance shall not be due until the moment of the an initial quarterly payment required under subdivision (g) that is at the very least 180 job after the supplication of company began. The dues remitted come a city or city and county candlestick be based on gross revenues, as identified in subdivision (d), obtained from the delivery of video service within the jurisdiction. The fee remitted come a ar shall be based on gross revenues earned within the unincorporated area that the county. No fees under this section shall end up being due uneven the regional entity gives documentation to the holder of the state franchise sustaining the portion paid by the incumbent cable operator serving the area in ~ the regional entity’s jurisdiction, as provided below. The fee shall it is in calculated as a percent of the holder’s pistol revenues, as identified in subdivision (d). The fee remitted to the regional entity pursuant to this section may be provided by the regional entity for any lawful purpose.

(b) The state franchise dues shall be a percent of the holder’s pistol revenues, as characterized in subdivision (d).

(c) No neighborhood entity or any other politics subdivision that this state may demand any added fees or charges or various other remuneration of any kind of kind indigenous the holder the a state franchise based exclusively on its status as a provider of video clip or cable services other than as set forth in this department and might not demand the use of any other calculation an approach or meaning of gun revenues. However, nothing in this section shall be construed to limit a neighborhood entity’s ability to impose energy user taxes and also other generally applicable taxes, fees, and also charges under other applicable provisions of state law that are applied in a nondiscriminatory and also competitively neutral manner.

(d) For objectives of this section, the term “gross revenues” method all revenue actually got by the holder that a state franchise, as identified in accordance with usually accepted bookkeeping principles, that is acquired from the operation of the holder’s network to carry out cable or video clip service within the jurisdiction that the regional entity, including every one of the following:


All fees billed to subscribers for any and all cable organization or video service noted by the holder that a state franchise, including all revenue regarded programming noted to the subscriber, equipment rentals, late fees, and insufficient fund fees.


Franchise fees implemented on the holder that a state franchise by this section that are passed through to, and paid by, the subscribers.


Compensation received by the holder that a state franchise the is acquired from the procedure of the holder’s network to provide cable service or video service with respect to rose that space paid come the holder that a state franchise as compensation for promotion or exhibition of any type of products or solutions on the holder’s network, such as a “home shopping” or similar channel, subject to i (4) that subdivision (e).


A pro rata portion of every revenue derived by the holder of a state franchise or that is affiliates pursuant to compensation arrangements for advertising derived from the procedure of the holder’ s network to provide video clip service within the jurisdiction the the neighborhood entity, subject to paragraph (1) that subdivision (e). The allocation shall be based upon the variety of subscribers in the neighborhood entity split by the total number of subscribers in relation to the relevant local or nationwide compensation arrangement.

(e) For functions of this section, the hatchet “gross revenue” set forth in subdivision (d) does no include any type of of the following:


Amounts not actually received, also if billed, together as bad debt; refunds, rebates, or discounts come subscribers or other third parties; or revenue imputed native the provision of cable solutions or video services for totally free or at reduced rates to any type of person as required or allowed by law, including, yet not limited to, the supplication of these solutions to windy institutions, windy schools, governmental agencies, or employees other than that forgone revenue liked not to be received in exchange for trades, barters, services, or other items of worth shall be included in pistol revenue.


Revenues got by any affiliate or any other human being in exchange because that supplying goods or services supplied by the holder that a state franchise to administer cable services or video clip services. However, revenue received by one affiliate the the holder indigenous the affiliate’s supplication of cable or video service chandelier be consisted of in gross revenue as follows:

(A) come the level that dealing with the revenue together revenue of the affiliate, rather of revenue the the holder, would have the result of evading the payment that fees that would otherwise be paid to the local entity.

(B) The revenue is no otherwise topic to fees to be payment to the regional entity.


Revenue acquired from solutions classified as noncable solutions or nonvideo services under federal law, including, however not minimal to, revenue derived from telecommunications services and also information services, various other than cable solutions or video clip services, and any other revenues attributed by the holder that a state franchise come noncable solutions or nonvideo solutions in accordance through Federal interactions Commission rules, regulations, standards, or orders.


Revenue payment by subscribers to “home shopping” or comparable networks straight from the revenue of goods through any home purchase channel available as part of the cable services or video clip services. However, rose or other compensation paid to the holder the a state franchise by “home shopping” or similar networks because that the promo or exhibition products or services shall be included in pistol revenue.


Revenue from the sale of cable solutions or video clip services because that resale in i beg your pardon the reseller is compelled to collect a fee comparable to the franchise fees from the reseller’s customers.


Amounts billed to, and built up from, subscribers come recover any tax, fee, or surcharge applied by any kind of governmental entity on the holder the a state franchise, including, yet not minimal to, sales and use taxes, gun receipts taxes, excise taxes, utility customers taxes, public company taxes, interaction taxes, and also any other fee not enforced by this section.


Revenue indigenous the revenue of funding assets or surplus devices not provided by the purchaser to receive cable services or video services from the seller the those heritage or surplus equipment.


Revenue from directory or Internet proclaiming revenue, including, but not limited to, yellow pages, white pages, banner advertisement, and electronic publishing.


Revenue obtained as reimbursement through programmers that specific, identifiable marketing expenses incurred through the holder that a state franchise because that the arrival of new programming.


Security deposits received from subscribers, excluding defense deposits used to the exceptional balance the a subscriber’ s account and also thereby taken into revenue.

(f) because that the functions of this section, in the case of a videoservice that may be go together or combined functionally with other services, capabilities, or applications, the state franchise dues shall be used only come the gun revenue, as defined in subdivision (d), attributable to video clip service. Where the holder of a state franchise or any affiliate bundles, integrates, ties, or combines video clip services with nonvideo services producing a bundled package, so that subscribers pay a solitary fee for more than one course of business or obtain a discount on video clip services, gross profits shall it is in determined based upon an equal allocation the the parcel discount, that is, the total price of the individual classes of company at advertised rates compared to the package price, amongst all great of service comprising the package. The reality that the holder of a state franchise offers a bundled package shall not be reputed a promotion activity. If the holder of a state franchise does not offer any component that the go together package separately, the holder of a state franchise shall declare a proclaimed retail worth for every component based upon reasonable equivalent prices because that the product or company for the objective of determining franchise fees based on the package discount defined above.

(g) because that the functions of identify gross revenue under this division, a video clip service provider shall usage the same an approach of determining profits under normally accepted audit principals as that i beg your pardon the video clip service provider uses in determining revenues for the objective of reporting to national and also state regulatory agencies.

(h) The state franchise fees shall be remitted come the applicable regional entity quarterly, in ~ 45 days after the end of the quarter for that calendar quarter. Every payment shall be accompanied through a summary explaining the basis for the calculation of the state franchise fee. If the holder does no pay the franchise fee as soon as due, the holder shall salary a late payment charge at a price per year same to the highest possible prime lending rate during the duration of delinquency, to add 1 percent. If the holder has actually overpaid the franchise fee, it might deduct the overpayment indigenous its following quarterly payment.

(i) Not an ext than once annually, a local entity might examine the company records of a holder the a state franchise come the level reasonably important to ensure compensation in accordance with subdivision (a). The holder shall save all business records reflecting any type of gross revenues, even if there is a change in ownership, because that at least four years ~ those revenues are known by the holder ~ above its books and also records. If the examination discloses that the holder has underpaid franchise fees by more than 5 percent throughout the check period, the holder shall pay every one of the reasonable and also actual expenses of the examination. If the examination discloses the the holder has not underpaid franchise fees, the regional entity shall pay every one of the reasonable and also actual expenses of the examination. In every various other instance, each party shall be affected by each other its own costs of the examination. Any kind of claims by a regional entity that compensation is not in accordance v subdivision (a), and also any insurance claims for refunds or various other corrections to the remittance the the holder that a state franchise, shall it is in made within 3 years and 45 job of the finish of the quarter for i m sorry compensation is remitted, or three years native the day of the remittance, whichever is later. One of two people 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 skilled jurisdiction.

(j) The holder of a state franchise may identify and collect the amount of the state franchise fee together a different line items on the consistent bill of each subscriber.

5870. (a) The holder of a state franchise shall designate a sufficient amount of volume on the network to enable the supplication of the same variety of public, educational, and also governmental access (PEG) channels, as space activated and listed by the incumbent cable operator that has actually simultaneously set off and listed the greatest number of PEG networks within the regional entity under the terms of any franchise in effect in the local entity together of January 1, 2007. Because that the purposes of this section, a PEG channel is deemed activated if that is being made use of for PEG programming in ~ the municipality for at least eight hours per day. The holder shall have actually three months from the day the neighborhood entity inquiry the PEG networks to clues the capacity. However, the three-month duration shall be tolled by any period during i beg your pardon the designation or provision of PEG channel volume is technically infeasible, including any kind of failure or hold-up of the incumbent cable operator come make enough interconnection available, as required by this section.

(b) The PEG networks shall be for the exclusive use of the regional entity or the designee to carry out public, educational, and also governmental channels. The PEG channels shall be provided only for noncommercial purposes. However, advertising, underwriting, or sponsorship recognition might be carried on the networks for the objective of capital PEG-related activities. The PEG channels shall all be carried on the straightforward service tier. To the extent feasible, the PEG channels shall no be be separate numerically from other channels carried on the basic service tier and also the channel numbers because that the PEG channels shall it is in the same channel numbers used by the incumbent cable operator uneven prohibited by commonwealth law. ~ the early stage designation the PEG channel numbers, the channel number shall no be readjusted without the agreement of the neighborhood entity unless the readjust is forced by federal law. Each channel shall be capable of delivering a nationwide Television device Committee (NTSC) television signal.

(c) (1)

If less than three PEG channels are triggered and listed within the local entity as of January 1, 2007, a neighborhood entity who jurisdiction lies in ~ the authorized service area that the holder that a state franchise may initially request the holder come designate not an ext than a complete of 3 PEG channels.


The holder shall have actually three months from the day of the inquiry to designate the capacity. However, the three-month period shall be tolled by any duration during which the designation or supplication of PEG channel volume is technically infeasible, including any type of failure or delay of the incumbent cable operator to make adequate interconnection available, as forced by this section.

(d) (1)

The holder candlestick provide second PEG channel once the nonduplicated in your ar produced video clip programming televised on a provided channel over 56 hrs per week as measured top top a quarterly basis. The extr channel shall not be offered for any purpose various other than to proceed programming added government, education, or public access television.


For the purposes of this section, “locally produced video programming” means programming created or noted by any local resident, the regional entity, or any local publicly or private agency that provides services to residents of the franchise area; or any type of transmission that a conference or proceeding of any kind of local, state, or commonwealth governmental entity.

(e) any PEG channel detailed pursuant come this ar that is not utilized by the local entity because that at least eight hrs per day as measured ~ above a quarterly basis might no longer be made obtainable to the local entity, and also may be programmed in ~ the holder’s discretion. At the moment that the local entity have the right to certify come the holder a schedule for at least eight hours of daily programming, the holder the the state franchise shall gain back the channel or networks for the usage of the neighborhood entity.

(f) The content to be listed over the PEG channel capacity provided pursuant come this section shall be the responsibility of the local entity or its designee receiving the benefit of that capacity, and also the holder of a state franchise bears just the responsibility for the infection of that content, topic to technical restraints.

(g) (1) The local entity shall ensure the all transmissions, content, or programming to it is in transmitted through a holder that a state franchise are listed or it is registered in a path or type that is compatible v the holder’s network, if the neighborhood entity to produce or maintains the PEG programming in that manner or form. If the regional entity does not develop or preserve PEG programming in the manner or form, climate the regional entity might submit or administer PEG programming in a path or type that is typical in the industry. The holder shall be responsible for any changes in the type of the transmission vital to do it compatible v the technology or protocol made use of by the holder to supply services. If the holder is required to readjust the form of the transmission, the regional entity shall allow the holder to perform so in a manner the is most economical to the holder.


The provision of those transmissions, content, or programming to the holder of a state franchise candlestick constitute authorization because that the holder to bring those transmissions, content, or programming. The holder may lug the transmission, content, or programming exterior of the regional entity’s jurisdiction if the holder agrees to salary the neighborhood entity or its designee any incremental licensing prices incurred by the regional entity or that is designee associated with that transmission. Neighborhood entities shall it is in prohibited from entering into licensing agreements that impose greater proportional prices for infection to subscribers outside the local entity’s jurisdiction.


The PEG signal shall be receivable by all subscribers, even if it is they obtain digital or analog service, or a mix thereof, there is no the need for any equipment various other than the tools necessary to receive the lowest expense tier that service. The PEG accessibility capacity provided shall be of comparable quality and also functionality to that available by commercial networks on the lowest cost tier of company unless the signal is provided to the holder in ~ a lower quality or with much less functionality.

(h) wherein technically feasible, the holder that a state franchise and an incumbent cable operator candlestick negotiate in an excellent faith to interconnect their networks because that the objective of providing PEG programming. Interconnection might be accomplished by direct cable, microwave link, satellite, or other reasonable method of connection. Holders the a state franchise and also incumbent cable operator shall administer interconnection that the PEG channels on reasonable terms and conditions and also may no withhold the interconnection. If a holder of a state franchise and an incumbent cable operator cannot with a support acceptable interconnection agreement, the neighborhood entity might require the incumbent cable operator to permit the holder to interconnect that is network through the incumbent’s network in ~ a technically feasible point on the holder’s network as figured out by the holder. If no technically feasible suggest for interconnection is available, the holder that a state franchise shall make an interconnection available to the channel originator and shall carry out the facilities crucial for the interconnection. The cost of any kind of interconnection shall it is in borne by the holder requesting the interconnection unless otherwise agreed to by the parties.

(i) A holder that a state franchise shall no be compelled to interconnect for, or otherwise to transmit, PEG contents that is branded v the logo, name, or other identifying point out of an additional cable operator or video clip service provider. For objectives of this section, PEG contents is no branded if it includes only manufacturing credits or other comparable information displayed at the conclusion that a program. The regional entity might require a cable operator or video clip service provider to remove its logo, name, or other identifying marks from PEG content that is to it is in made easily accessible through interconnection to an additional provider of PEG capacity.

(j) In addition to any provision for the PEG channels required under subdivisions (a) to (i), inclusive, the holder candlestick reserve, designate, and, ~ above request, activate a channel for carriage the state windy affairs programming administered by the state.

(k) All duties to administer and support PEG channel facilities and institutional networks and also to provide cable services to community structures contained in a in your ar issued franchise currently on December 31, 2006, shall continue until the neighborhood franchise expires, until the hatchet of the franchise would have actually expired if it had actually not to be terminated pursuant to subdivision (o) of ar 5840, or until January 1, 2009, whichever is later.

(l) after January 1, 2007, and until the expiration that the incumbent cable operator’s franchise, if the incumbent cable operator has actually existing unsatisfied responsibilities under the franchise to remit to the local entity any type of cash payments because that the ongoing expenses of public, educational, and also government accessibility channel facilities or institutional networks, the neighborhood entity shall divide those cash payments amongst all cable or video clip providers as detailed in this section. The fee shall be the holder’s agree rata every subscriber share of the cash payment required to be payment by the incumbent cable operator to the neighborhood entity because that the expenses of PEG channel facilities. All video service providers and also the incumbent cable operator shall be topic to the same requirements for recurring payments because that the assistance of PEG channel facilities and institutional networks, even if it is expressed as a portion of gun revenue or together an amount every subscriber, per month, or otherwise.

(m) In determining the fee on a pro rata every subscriber basis, every cable and video clip service suppliers shall report, because that the period in question, come the regional entity the total variety of subscribers served within the local entity’s jurisdiction, i beg your pardon shall be treated together confidential by the local entity and shall be supplied only to have the every subscriber fee compelled by this section. The regional entity chandelier then determine the payment early out from every provider based upon a every subscriber basis because that the duration by multiply the unsatisfied cash payments for the ongoing funding costs the PEG channel infrastructure by a proportion of the reported subscribers of every provider to the full subscribers within the regional entity as of the end of the period. The local entity shall notify the particular providers, in writing, that the resulting pro rata amount. After ~ the notice, any fees required by this section shall it is in remitted come the applicable regional entity quarterly, within 45 days after the end of the quarter for the coming before calendar quarter, and may just be provided by the local entity as authorized under federal law.

(n) A local entity may, through ordinance, develop a fees to assistance PEG channel facilities regular with federal legislation that would come to be effective subsequent to the expiration of any type of fee implemented pursuant to paragraph (2) the subdivision (l). If no together fee exists, the regional entity may establish the dues at any time. The fees shall no exceed 1 percent the the holder’s pistol revenues, as identified in section 5860. Nevertheless this limitation, if, ~ above December 31, 2006, a regional entity is imposing a different fee to support PEG channel infrastructure that is in overabundance of 1 percent, that reality may, by ordinance, develop a dues no greater than that separate fee, and also in no event greater than 3 percent, to assistance PEG activities. The ordinance shall expire, and also may it is in reauthorized, ~ above the expiration the the state franchise.

(o) The holder the a state franchise may recover the quantity of any type of fee remitted to a regional entity under this section by billing a restore fee as a different line article on the regular bill of each subscriber.

(p) A court of skilled jurisdiction shall have actually exclusive jurisdiction come enforce any requirement under this ar or resolve any dispute about the requirements collection forth in this section, and no provider may by barred native the provision of business or be required to terminate company as a an outcome of that conflict or enforcement action.

5880. Holders the state franchises shall comply through the Emergency Alert mechanism requirements the the Federal interactions Commission in order the emergency messages might be spread over the holder’s network. Any kind of provision in a locally issued franchise authorizing regional entities to provide local emergency notifications shall stay in effect, and also shall use to all holders the a state-issued franchise in the same regional area, for the term of the locally issued franchise, until the term of the franchise would have actually expired to be the franchise no terminated pursuant to subdivision (m) of ar 5840, or until January 1, 2009, whichever is later.

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5885. (a) The neighborhood entity shall enable the holder that a state franchise under this division to install, construct, and maintain a network in ~ public rights-of-way under the same time, place, and manner as the provisions administrate telephone corporations under applicable state and also federal law, including, yet not minimal to, the provisions of section 7901.1.

(b) nothing in this division shall be construed to change existing law concerning the permitting