5870
. (a) The holder of a state franchise shall designate a
sufficient amount of capacity on its network to allow the provision
of the same number of public, educational, and governmental access
(PEG) channels, as are activated and provided by the incumbent cable
operator that has simultaneously activated and provided the greatest
number of PEG channels within the local entity under the terms of any
franchise in effect in the local entity as of January 1, 2007. For
the purposes of this section, a PEG channel is deemed activated if it
is being utilized for PEG programming within the local entity's
jurisdiction for at least eight hours per day. The holder shall have
three months from the date the local entity requests the PEG channels
to designate the capacity. However, the three-month period shall be
tolled by any period during which the designation or provision of PEG
channel capacity is technically infeasible, including any failure or
delay of the incumbent cable operator to make adequate
interconnection available, as required by this section.
(b) The PEG channels shall be for the exclusive use of the local
entity or its designee to provide public, educational, and
governmental channels. The PEG channels shall be used only for
noncommercial purposes. However, advertising, underwriting, or
sponsorship recognition may be carried on the channels for the
purpose of funding PEG-related activities. The PEG channels shall all
be carried on the basic service tier. To the extent feasible, the
PEG channels shall not be separated numerically from other channels
carried on the basic service tier and the channel numbers for the PEG
channels shall be the same channel numbers used by the incumbent
cable operator unless prohibited by federal law. After the initial
designation of PEG channel numbers, the channel numbers shall not be
changed without the agreement of the local entity unless the change
is required by federal law. Each channel shall be capable of carrying
a National Television System Committee (NTSC) television signal.
(c) (1) If less than three PEG channels are activated and provided
within the local entity as of January 1, 2007, a local entity whose
jurisdiction lies within the authorized service area of the holder of
a state franchise may initially request the holder to designate not
more than a total of three PEG channels.
(2) The holder shall have three months from the date of the
request to designate the capacity. However, the three-month period
shall be tolled by any period during which the designation or
provision of PEG channel capacity is technically infeasible,
including any failure or delay of the incumbent cable operator to
make adequate interconnection available, as required by this section.
(d) (1) The holder shall provide an additional PEG channel when
the nonduplicated locally produced video programming televised on a
given channel exceeds 56 hours per week as measured on a quarterly
basis. The additional channel shall not be used for any purpose other
than to continue programming additional government, education, or
public access television.
(2) For the purposes of this section, "locally produced video
programming" means programming produced or provided by any local
resident, the local entity, or any local public or private agency
that provides services to residents of the franchise area; or any
transmission of a meeting or proceeding of any local, state, or
federal governmental entity.
(e) Any PEG channel provided pursuant to this section that is not
utilized by the local entity for at least eight hours per day as
measured on a quarterly basis may no longer be made available to the
local entity, and may be programmed at the holder's discretion. At
the time that the local entity can certify to the holder a schedule
for at least eight hours of daily programming, the holder of the
state franchise shall restore the channel or channels for the use of
the local entity.
(f) The content to be provided over the PEG channel capacity
provided pursuant to this section shall be the responsibility of the
local entity or its designee receiving the benefit of that capacity,
and the holder of a state franchise bears only the responsibility for
the transmission of that content, subject to technological
restraints.
(g) (1) The local entity shall ensure that all transmissions,
content, or programming to be transmitted by a holder of a state
franchise are provided or submitted in a manner or form that is
compatible with the holder's network, if the local entity produces or
maintains the PEG programming in that manner or form. If the local
entity does not produce or maintain PEG programming in that manner or
form, then the local entity may submit or provide PEG programming in
a manner or form that is standard in the industry. The holder shall
be responsible for any changes in the form of the transmission
necessary to make it compatible with the technology or protocol
utilized by the holder to deliver services. If the holder is required
to change the form of the transmission, the local entity shall
permit the holder to do so in a manner that is most economical to the
holder.
(2) The provision of those transmissions, content, or programming
to the holder of a state franchise shall constitute authorization for
the holder to carry those transmissions, content, or programming.
The holder may carry the transmission, content, or programming
outside of the local entity's jurisdiction if the holder agrees to
pay the local entity or its designee any incremental licensing costs
incurred by the local entity or its designee associated with that
transmission. A local entity shall not enter into a licensing
agreement that imposes higher proportional costs for transmission to
subscribers outside the local entity's jurisdiction.
(3) The PEG signal shall be receivable by all subscribers, whether
they receive digital or analog service, or a combination thereof,
without the need for any equipment other than the equipment necessary
to receive the lowest cost tier of service. The PEG access capacity
provided shall be of similar quality and functionality to that
offered by commercial channels on the lowest cost tier of service
unless the signal is provided to the holder at a lower quality or
with less functionality.
(h) Where technically feasible, the holder of a state franchise
and an incumbent cable operator shall negotiate in good faith to
interconnect their networks for the purpose of providing PEG
programming. Interconnection may be accomplished by direct cable,
microwave link, satellite, or other reasonable method of connection.
Holders of a state franchise and incumbent cable operators shall
provide interconnection of the PEG channels on reasonable terms and
conditions and may not withhold the interconnection. If a holder of a
state franchise and an incumbent cable operator cannot reach a
mutually acceptable interconnection agreement, the local entity may
require the incumbent cable operator to allow the holder to
interconnect its network with the incumbent's network at a
technically feasible point on the holder's network as identified by
the holder. If no technically feasible point for interconnection is
available, the holder of a state franchise shall make an
interconnection available to the channel originator and shall provide
the facilities necessary for the interconnection. The cost of any
interconnection shall be borne by the holder requesting the
interconnection unless otherwise agreed to by the parties.
(i) A holder of a state franchise shall not be required to
interconnect for, or otherwise to transmit, PEG content that is
branded with the logo, name, or other identifying marks of another
cable operator or video service provider. For purposes of this
section, PEG content is not branded if it includes only production
credits or other similar information displayed at the conclusion of a
program. The local entity may require a cable operator or video
service provider to remove its logo, name, or other identifying marks
from PEG content that is to be made available through
interconnection to another provider of PEG capacity.
(j) In addition to any provision for the PEG channels required
under subdivisions (a) to (i), inclusive, the holder shall reserve,
designate, and, upon request, activate a channel for carriage of
state public affairs programming administered by the state.
(k) All obligations to provide and support PEG channel facilities
and institutional networks and to provide cable services to community
buildings contained in a locally issued franchise existing on
December 31, 2006, shall continue until the local franchise expires,
until the term of the franchise would have expired if it had not been
terminated pursuant to subdivision (o) of Section 5840, or until
January 1, 2009, whichever is later.
(l) After January 1, 2007, and until the expiration of the
incumbent cable operator's franchise, if the incumbent cable operator
has existing unsatisfied obligations under the franchise to remit to
the local entity any cash payments for the ongoing costs of public,
educational, and government access channel facilities or
institutional networks, the local entity shall divide those cash
payments among all cable or video providers as provided in this
section. The fee shall be the holder's pro rata per subscriber share
of the cash payment required to be paid by the incumbent cable
operator to the local entity for the costs of PEG channel facilities.
All video service providers and the incumbent cable operator shall
be subject to the same requirements for recurring payments for the
support of PEG channel facilities and institutional networks, whether
expressed as a percentage of gross revenue or as an amount per
subscriber, per month, or otherwise.
(m) In determining the fee described in subdivision (l) on a pro
rata per subscriber basis, all cable and video service providers
shall report, for the period in question, to the local entity the
total number of subscribers served within the local entity's
jurisdiction, which shall be treated as confidential by the local
entity and shall be used only to derive the per subscriber fee
required by this section. The local entity shall then determine the
payment due from each provider based on a per subscriber basis for
the period by multiplying the unsatisfied cash payments for the
ongoing capital costs of PEG channel facilities by a ratio of the
reported subscribers of each provider to the total subscribers within
the local entity as of the end of the period. The local entity shall
notify the respective providers, in writing, of the resulting pro
rata amount. After the notice, any fees required by this section
shall be remitted to the applicable local entity quarterly, within 45
days after the end of the quarter for the preceding calendar
quarter, and may only be used by the local entity as authorized under
federal law.
(n) A local entity may, by ordinance, establish a fee to support
PEG channel facilities consistent with federal law that would become
effective subsequent to the expiration of any fee imposed pursuant to
subdivision (l). If no such fee exists, the local entity may
establish the fee at any time. The fee shall not exceed 1 percent of
the holder's gross revenues, as defined in Section 5860.
Notwithstanding this limitation, if, on December 31, 2006, a local
entity is imposing a separate fee to support PEG channel facilities
that is in excess of 1 percent, that entity may, by ordinance,
establish a fee no greater than that separate fee, and in no event
greater than 3 percent, to support PEG activities. The ordinance
shall expire, and may be reauthorized, upon the expiration of the
state franchise.
(o) The holder of a state franchise may recover the amount of any
fee remitted to a local entity under this section by billing a
recovery fee as a separate line item on the regular bill of each
subscriber.
(p) A court of competent jurisdiction shall have exclusive
jurisdiction to enforce any requirement under this section or resolve
any dispute regarding the requirements set forth in this section,
and no provider may be barred from the provision of service or be
required to terminate service as a result of that dispute or
enforcement action.