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 Section 5870.
(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.
(l) 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:
(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.