HomeMy WebLinkAbout16 AB903 CABLE TV 05-16-05
A G END A REPORT
Agenda Item ~
Reviewed: *
City Manager
Finance Director -1::JiJJ.-
MEETING DATE:
MAY 16, 2005
FROM:
WILLIAM A. HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
TO:
SUBJECT:
LEGISLATIVE STATUS REPORT ON AB 903 RELATING TO CABLE
TELEVISION FRANCHISES
SUMMARY
AB 903 allows telephone service providers such as SBC and Verizon to obtain a local cable
television franchise from the local franchising authority for an area within the telephone
corporation's service territory. Staff is not recommending a City position at this time.
RECOMMENDATION
Staff recommends that the City Council direct staff to continue to monitor this legislation and
report back with any significant change in status.
FISCAL IMPACT
None
BACKGROUND
Assembly Member Hector De La Torre of Los Angeles County has introduced new
legislation relating to the issuance of cable television franchise agreements for telephone
services providers at the request of Verizon.
Existing state law (Section 53066.3 of the California Government Code) authorizes local
governments to grant additional cable television franchises in an area where a franchise has
already been granted after a public hearing to discuss specified issues. It also provides that
the additional franchises must serve the same geographic area as the original franchise.
Such service shall be provided within a reasonable time and in a sequence which doesn't
discriminate against lower income or minority residents. Additional franchises must also
contain the same public, educational and governmental access requirements
AB-903 allows a telephone corporation to obtain a local cable television franchise from the
local franchising authority for an area within the telephone corporation's service territory. It
also provides that a telephone corporation seeking a cable television franchise shall be
required to serve its entire franchise area within a reasonable time and in a sequence that
does not discriminate against lower income or minority residents and that the telephone
corporation's cable television franchise agreement contain the same public, educational and
government access requirements that are set forth in the existing cable television franchise.
Legislative Status Report on AB 903 Relating to Cable Television Franchises
March 16,2005
Page 2
Telephone companies maintain that the legislation is needed to foster competition in local
cable market areas. Cable television companies are generally opposed to this legislation
due to concerns that the franchise agreements that would be implemented under the
proposed bill could create an unlevel playing field related to current local cable franchise
agreements. This, in turn, could force local agencies to reopen existing franchises to
renegotiation.
This bill is currently held under submission in the Assembly Utilities and Commerce
Committee and a major rewrite is underway with a target of August for reconsideration.
Staff is not prepared to offer a recommendation on the City's position for this legislation but
is recommending that staff continue to closely monitor the legislation and report to the City
Council with any significant developments.
C~~~/4
Tim D. Serlet
Director of Public Works/City Engineer
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A Inlstratlve Services Manager
TDS:JM:ccg:AB903 status. doc