5890
. (a) A cable operator or video service provider that has been
granted a state franchise under this division may not discriminate
against or deny access to service to any group of potential
residential subscribers because of the income of the residents in the
local area in which the group resides.
(b) Holders or their affiliates with more than 1,000,000 telephone
customers in California satisfy subdivision (a) if all of the
following conditions are met:
(1) Within three years after it begins providing video service
under this division, at least 25 percent of households with access to
the holder's video service are low-income households.
(2) Within five years after it begins providing video service
under this division and continuing thereafter, at least 30 percent of
the households with access to the holder's video service are
low-income households.
(3) Holders provide service to community centers in underserved
areas, as determined by the holder, without charge, at a ratio of one
community center for every 10,000 video subscribers. The holder
shall not be required to take its facilities beyond the appropriate
demarcation point outside the community center building or perform
any inside wiring. The community center may not receive service from
more than one state franchise holder at a time under this section.
For purposes of this section, "community center" means any facility
operated by an organization that has qualified for the California
Teleconnect Fund, as established in Section 280 and that will make
the holder's service available to the community.
(c) Holders or their affiliates with fewer than 1,000,000
telephone customers in California satisfy this section if they offer
video service to all customers within their telephone service area
within a reasonable time, as determined by the commission. However,
the commission shall not require the holder to offer video service if
the cost to provide video service is substantially above the average
cost of providing video service in that telephone service area.
(d) When a holder provides video service outside of its telephone
service area, is not a telephone corporation, or offers video service
in an area where no other video service is being offered, other than
direct-to-home satellite service, there is a rebuttable presumption
that discrimination in providing service has not occurred within
those areas. The commission may review the holder's proposed video
service area to ensure that the area is not drawn in a discriminatory
manner.
(e) For holders or their affiliates with more than 1,000,000
telephone customers in California, either of the following shall
apply:
(1) If the holder is predominantly deploying fiber optic
facilities to the customer's premise, the holder shall provide access
to its video service to a number of households at least equal to 25
percent of the customer households in the holder's telephone service
area within two years after it begins providing video service under
this division, and to a number at least equal to 40 percent of those
households within five years.
(2) If the holder is not predominantly deploying fiber optic
facilities to the customer's premises, the holder shall provide
access to its video service to a number of households at least equal
to 35 percent of the households in the holder's telephone service
area within three years after it begins providing video service under
this division, and to a number at least equal to 50 percent of these
households within five years.
(3) A holder shall not be required to meet the 40-percent
requirement in paragraph (1) or the 50-percent requirement in
paragraph (2) until two years after at least 30 percent of the
households with access to the holder's video service subscribe to it
for six consecutive months.
(4) If 30 percent of the households with access to the holder's
video service have not subscribed to the holder's video service for
six consecutive months within three years after it begins providing
video service, the holder may submit validating documentation to the
commission. If the commission finds that the documentation validates
the holder's claim, then the commission shall permit a delay in
meeting the 40-percent requirement in paragraph (1) or the 50-percent
requirement in paragraph (2) until the time that the holder does
provide service to 30 percent of the households for six consecutive
months.
(f) (1) After two years of providing service under this division,
the holder may apply to the state franchising authority for an
extension to meet the requirements of subdivision (b), (c), or (e).
Notice of this application shall also be provided to the telephone
customers of the holder, the Secretary of the Senate, and the Chief
Clerk of the Assembly.
(2) Upon application, the franchising authority shall hold public
hearings in the telephone service area of the applicant.
(3) In reviewing the failure to satisfy the obligations contained
in subdivision (b), (c), or (e), the franchising authority shall
consider factors that are beyond the control of the holder,
including, but not limited to, the following:
(A) The ability of the holder to obtain access to rights-of-way
under reasonable terms and conditions.
(B) The degree to which developments or buildings are not subject
to competition because of existing exclusive arrangements.
(C) The degree to which developments or buildings are inaccessible
using reasonable technical solutions under commercially reasonable
terms and conditions.
(D) Natural disasters.
(4) The franchising authority may grant the extension only if the
holder has made substantial and continuous effort to meet the
requirements of subdivision (b), (c), or (e). If an extension is
granted the franchising authority shall establish a new compliance
deadline.
(g) Local governments may bring complaints to the state
franchising authority that a holder is not offering video service as
required by this section, or the state franchising authority may open
an investigation on its own motion. The state franchising authority
shall hold public hearings before issuing a decision. The commission
may suspend or revoke the franchise if the holder fails to comply
with the provisions of this division.
(h) If the state franchising authority finds that the holder is in
violation of this section, it may, in addition to any other remedies
provided by law, impose a fine not to exceed 1 percent of the holder'
s total monthly gross revenue received from provision of video
service in the state each month from the date of the decision until
the date that compliance is achieved.
(i) If a court finds that the holder of the state franchise is in
violation of this section, the court may immediately terminate the
holder's state franchise, and the court shall, in addition to any
other remedies provided by law, impose a fine not to exceed 1 percent
of the holder's total gross revenue of its entire cable and service
footprint in the state in the full calendar month immediately prior
to the decision.
(j) As used in this section, the following definitions shall
apply:
(1) "Access" means that the holder is capable of providing video
service at the household address using any technology, other than
direct-to-home satellite service, providing two-way broadband
Internet capability and video programming, content, and
functionality, regardless of whether any customer has ordered service
or whether the owner or landlord or other responsible person has
granted access to the household. If more than one technology is
utilized, the technologies shall provide similar two-way broadband
Internet accessibility and similar video programming.
(2) "Customer's household" means those residential households
located within the holder's existing telephone service area that are
customers of the service by which that telephone service area is
defined.
(3) "Household" means, consistent with the United States Census
Bureau, a house, an apartment, a mobilehome, a group of rooms, or a
single room that is intended for occupancy as separate living
quarters. Separate living quarters are those in which the occupants
live and eat separately from any other persons in the building and
which have direct access from the outside of the building or through
a common hall.
(4) "Low-income household" means those residential households
located within the holder's existing telephone service area where the
average annual household income is less than thirty-five thousand
dollars ($35,000) based on the United States Census Bureau estimates
adjusted annually to reflect rates of change and distribution through
January 1, 2007.
(k) Nothing in this section shall be construed to require a holder
to provide video service outside its wireline footprint or to match
the existing service area of any cable operator.