Bill Text: CA SB28 | 2021-2022 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Digital Infrastructure and Video Competition Act of 2006: deployment data.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2021-10-08 - Chaptered by Secretary of State. Chapter 673, Statutes of 2021. [SB28 Detail]

Download: California-2021-SB28-Amended.html

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Amended  IN  Senate  February 10, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 28

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Introduced by Senator Caballero
(Coauthor: Senator Wilk)
(Coauthors: Assembly Members Arambula and Salas)

December 07, 2020

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An act relating to communications. An act to add the heading of Article 1 (commencing with Section 11545) to, and to add Article 2 (commencing with Section 11548.5) to, Chapter 5.6 of Part 1 of Division 3 of Title 2 of, the Government Code, and to amend Section 5890 of, and to add Sections 5895, 5897, and 5965 to the Public Utilities Code, relating to communications.

LEGISLATIVE COUNSEL'S DIGEST

SB 28, as amended, Caballero. Digital Infrastructure and Video Competition Act of 2006. Rural Broadband and Digital Infrastructure Video Competition Reform Act of 2021.

(1) Existing law establishes in state government the Department of Technology and makes it responsible for approval and oversight of information technology projects. Existing law requires the Director of General Services to compile and maintain an inventory of state-owned real property that may be available for lease to providers of wireless telecommunications services for location of wireless telecommunications facilities.

This bill, the Rural Broadband and Digital Infrastructure Video Competition Reform Act of 2021 (Reform Act), would similarly require the Department of Technology, in collaboration with other state agencies, to compile an inventory of state-owned resources, as defined, that may be available for use in the deployment of broadband networks in rural, unserved, and underserved communities, except as specified. The bill would require the department to collaborate on the development of a standardized agreement to enable those state-owned resources to be leased or licensed for that purpose. The bill would require the department to post the inventory and agreement on the department’s internet website, update them as necessary, and provide technical assistance related to them to state departments and agencies.

(2) Existing law, the Digital Infrastructure and Video Competition Act of 2006 (Act of 2006), establishes a procedure for the issuance of state franchises for the provision of video service, defined to include cable service and open-video systems, administered by the Public Utilities Commission. The act authorizes the commission to suspend or revoke a franchise if its holder fails to comply with the act’s provisions, and does not preclude the state from changing the terms of a franchise. The act prohibits a franchise holder from discriminating against or denying access to low-income subscribers, requires certain franchise holders to meet specified deployment standards, and authorizes the commission and a court to impose fines and to revoke a franchise for violations of those provisions. The act requires a franchise holder to annually report to the commission regarding the availability of and subscription to broadband and video service.

This bill would prohibit a franchise holder from discriminating against or denying access to service to any group of potential residential subscribers, regardless of their income, and would authorize the commission to suspend or revoke a franchise for a violation of this prohibition. The bill would require a franchise holder to meet specified milestones to deploy broadband service to rural, unserved, and underserved areas. The bill would require a franchise holder to notify the Public Utilities Commission if the holder accepts a state or federal grant for a project to increase broadband service to those areas and would require the holder to deliver the intended results by meeting the grant’s required milestones. For these broadband deployment requirements, the bill would authorize the commission, after an investigation and public hearing, to remove from the holder’s franchise the grant of authority to provide service in the rural, unserved, or underserved area applicable to the violation and would authorize the local franchising entity to grant a local franchise for that service area. The bill would require the commission to audit franchise holders for compliance with the Act of 2006 as amended by the Reform Act. The bill would require franchise holders to submit information requested by the commission regarding that compliance.

Existing law, the Digital Infrastructure and Video Competition Act of 2006, establishes a procedure, administered by the Public Utilities Commission, for the issuance of state franchises for the provision of video service, defined to include cable service and open-video systems. The act requires the holder of a state franchise to annually report to the commission, on a census tract basis, specified information relative to availability and usage of broadband and video service, and availability and usage of those services in low-income households.

This bill would state the intent of the Legislature to enact legislation relative to the Digital Infrastructure and Video Competition Act of 2006, to be known as the California Rural Broadband and DIVCA Reform Act of 2021.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 This act shall be known, and may be cited, as the Rural Broadband and Digital Infrastructure Video Competition Reform Act of 2021.

SEC. 2.

 (a) The Legislature finds and declares all of the following:

(1) The COVID-19 pandemic has put a spotlight on inequality caused by California’s persistent digital divide.

(2) Without adequate broadband access, students struggle with distance learning, rural residents must travel hours to medical appointments, and businesses that can no longer depend on local foot traffic shut down because they are not competing in the digital marketplace.

(3) For years, California’s policymakers and regulators have tried to encourage equal broadband network development across California to eliminate the digital divide.

(4) The COVID-19 pandemic has made clear that the effort to eliminate the digital divide has failed, as an estimated 2.3 million Californians still lack broadband access, according to a recent Little Hoover Commission report.

(5) Rural communities with low population density and low-income residents still lack broadband.

(6) Over 2 million people are struggling to participate in the 21st century way of life - children required to learn remotely, employees required to work from home, and businesses forced to conduct online sales and services – because of inferior or nonexistent broadband.

(7) The reasons for the lack of ubiquitous broadband coverage come down to a few systemic challenges, starting with federal rules that classify broadband differently than other life-sustaining utilities like energy, water, or even telecommunications.

(8) The state has an interest in ensuring that rural, unserved, and underserved communities receive broadband services through private broadband providers, public agencies, public-private partnerships, or any combination thereof.

(b) It is the intent of the Legislature that the Rural Broadband and Digital Infrastructure Video Competition Reform Act of 2021 help rural, unserved, and underserved communities build broadband networks that reach all Californians lacking access to high-speed internet connection and service.

SEC. 3.

 The heading of Article 1 (commencing with Section 11545) is added to Chapter 5.6 of Part 1 of Division 3 of Title 2 of the Government Code, to read:

Article  1. Powers and Duties, Generally

SEC. 4.

 Article 2 (commencing with Section 11548.5) is added to Chapter 5.6 of Part 1 of Division 3 of Title 2 of the Government Code, to read:

Article  2. California Resources for Broadband Networks

11548.5.

 (a) The Department of Technology, in collaboration with the Department of General Services, the State Department of Education, the Department of Transportation, and other relevant state agencies, shall do both of the following:

(1) Compile an inventory of state-owned resources that may be available for use in the deployment of broadband networks in rural, unserved, and underserved communities. The term “state-owned resources,” as used in this section, includes, but is not limited to, state-owned real properties, rights-of-way, spectrums, facilities and structures, infrastructure, programs, and other resources suitable for that purpose. The term does not include any state-owned resources that, if used for that purpose, would be inimical to the public health, safety, or welfare.

(2) Develop a standardized agreement to enable state-owned resources to be leased or licensed for the purpose described in paragraph (1). The agreement shall include, but not be limited to, provisions that ensure the broadband network developer uses the state-owned resource to provide broadband access to rural, unserved, or underserved communities and deploys broadband infrastructure that has the capacity to provide service at a minimum speed of 100 megabits per second (mbps) downstream. The agreement shall not require moneys from the General Fund to be used for the purposes of this article.

(b) The Department of Technology shall post on its internet website the inventory of state-owned resources and the standardized agreement described in subdivision (a) and shall update them as necessary. The department shall provide technical assistance to state departments and agencies for the purposes of this article.

SEC. 5.

 Section 5890 of the Public Utilities Code is amended to read:

5890.

 (a) A cable operator or video service provider that has been granted a state franchise under this division may shall 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. subscribers.

(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)

(b) 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)

(c) 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 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 internet accessibility and similar video programming. “Access” requires that the holder is capable of providing these services at the household level to all households in a census block.

(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)

(2) “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.

SEC. 6.

 Section 5895 is added to the Public Utilities Code, to read:

5895.

 (a) For purposes of this section, the following definitions apply:

(1) “Access” has the same meaning as specified in Section 5890.

(2) “Household” has the same meaning as specified in Section 5890.

(3) “Rural” has the same meaning as used by the United States Census Bureau.

(b) After a cable operator or video service provider that has been issued a state franchise or its renewal, whichever applies most recently, it shall provide broadband access to households in unserved, underserved, and rural areas within its service area according to the following milestones:

(1) Within____ years, ____percent of households in unserved areas have access to the holder’s broadband service.

(2) Within____years,____ percent of households in underserved areas have access to the holder’s broadband service.

(3) Within____years,____ percent of households in rural areas have access to the holder’s broadband service.

(4) After___years, an additional_____percent each year of households in all unserved, underserved, and rural areas have access to the holder’s broadband service until the time that the holder provides service to 100 percent of all households within its service area.

(c) If the commission finds, after an investigation and a public hearing, that a holder is in violation of this section, the commission may remove from the holder’s state franchise the grant of authority to provide service in any rural, unserved, or underserved area applicable to the violation.

(d) Notwithstanding any other law, if the grant of authority for a service area is removed from a holder’s state franchise pursuant to subdivision (c), the local franchising entity may grant a local franchise for that service area.

SEC. 7.

 Section 5897 is added to the Public Utilities Code, to read:

5897.

 (a) For purposes of this section, “rural” has the same meaning as used by the United States Census Bureau.

(b) A holder of a state franchise under this division shall notify the commission if the holder accepts a state or federal grant for a project to increase broadband service to any rural, unserved, or underserved area in the service area authorized by the holder’s state franchise. The holder shall notify the commission within 30 days of receipt of the grant funds and shall include information specifying all rural, unserved, or underserved areas that the project is intended to serve and all development or deployment requirements of the grant.

(c) A holder that accepts a state or federal grant as described in subdivision (b) shall use the public investment to deliver the intended results. The holder shall be in violation of this requirement if the holder fails to meet a development or deployment requirement of the grant.

(d) If the commission finds, after an investigation and a public hearing, that a holder is in violation of this section, the commission may remove from the holder’s state franchise the grant of authority to provide service in any rural, unserved, or underserved area applicable to the violation.

(e) Notwithstanding any other law, if the grant of authority for a service area is removed from a holder’s state franchise pursuant to subdivision (d), the local franchising entity may grant a local franchise for that service area.

SEC. 8.

 Section 5965 is added to the Public Utilities Code, to read:

5965.

 (a) The commission shall conduct audits to ensure that holders of a state franchise are meeting their obligations under this division.

(b) In conducting audits pursuant to subdivision (a), the commission may require a holder to submit information regarding its compliance with this division, including, but not limited to, all of the following:

(1) The total number of participants provided broadband access.

(2) The total number of hours that access has been provided to the community and the number of participants served.

(3) The number of participants that subsequently subscribe for broadband service.

(4) Methods of tracking, such as verification of subscriptions online through billing, surveys, sign-in sheets, or other methodologies.

(5) Broadband adoption levels and an accounting of remaining rural, unserved, and underserved households in the holder’s service area.

SECTION 1.

It is the intent of the Legislature to enact legislation relative to the Digital Infrastructure and Video Competition Act of 2006 (Division 2.5 (commencing with Section 5800) of the Public Utilities Code), to be known as the California Rural Broadband and DIVCA Reform Act of 2021.