CC - Item 6A - State and Federal Telecommunications Legislation•
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01?pORATEU 1Q5~
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNC;IL4
FROM: ANDREW C. LAZZARETTO, CITY MANAGEJ
DATE: JUNE 13, 2006
SUBJECT: STATE AND FEDERAL TELECOMMUNICATIONS LEGISLATION
SUMMARY
On May 31, 2006, the California State Assembly approved Assembly Bill (AB) 2987
(Attachment A) by a vote of 77 - 0 - 3. If signed into law, this measure would establish a
statewide franchise for video cable services and enact significant changes to the
telecommunications industry in California, thus causing a significant negative impact on the
City and its residents.
In Congress, House Resolution (HR) 5252 (Attachment B), the Community, Opportunity,
Promotion, and Enhancement (COPE) Act is currently being considered, and would enact
telecommunication regulations that would negatively affect the City of Rosemead in a
manner similar to that of AB 2987.
Staff Recommendation
Staff recommends that the City Council take the following action:
1. Vote to oppose AB 2987 and HR 5252.
Direct the City Manager to send correspondences to the appropriate agencies and
individuals regarding the City's opposition to AB 2987 and HR 5252.
ANALYSIS
If approved in their current form, AB 2987 and HR 5252 would establish new regulations
governing the telecommunications industry that do not provide adequate or appropriate
protections for local governments, resulting in a negative impact on the City of Rosemead in
the following ways:
Discriminator
AB 2987 and HR 5252 would permit new providers
discriminate against certain populations by allowing the
neighborhoods they will serve in a community. This
provider in Rosemead could provide service to only on(
other neighborhoods in town.
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ROSEMEAD CITY COUNCIL
in the video service industry to
company to pick and choose the
means that a new video service
portion of the City while ignoring
APPROVED FOR CITY COUNCIL AGENDA: ITEM NUMBER:
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City Council Meeting
June 6, 2006
Page 2 of 2
PEG Channels
Public access to broadcasting is not protected under AB 2987. Currently, communities
have access to public, education, and governmental (PEG) channels through cable
television service providers. These are important assets in a community that permit the
televising of community events, governmental deliberations, and educational opportunities.
The current language in the bill seriously narrows the PEG options that will be available to
local jurisdictions.
New State Bureaucracy
AB 2987 would establish a new state bureaucracy that will grow to regulate what is
essentially the local franchise process. This new state bureaucracy will be put in charge of
determining issues relating to local streets, and as a side effect, would empower the State
to make all decisions regarding local infrastructure when dealing with those industries
providing video services.
Rights-of-Way
Both AB 2987 and HR 5252 fail to adequately protect the taxpayers' investment in public
right-of-way areas. Under AB 2987, new entrants to the video service industry would have
access to local streets under rules that they themselves have written. Also, as HR 5252 is
currently written, the Federal Communications Commission (FCC) would preempt local
control and enforcement of the construction activity that telecommunication companies
engage in throughout all public right-of-way areas.
Revenues
Local government revenues from franchise fees are in jeopardy under the current language
of AB 2987. Serious legal flaws remain with the terminology in the legislation and
Rosemead's ability to collect a franchise fee could be preempted by the state based on the
way the bill is currently written. Furthermore, the legislation narrows the definition of "gross
revenues" upon which local governments calculate franchise fees, which will likely result in
a revenue loss for Rosemead.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
0W_t--
Oliver Chi
Director of Administrative Services
Attachment A: AB 2987
Attachment B: HR 5252
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ATTACHMENT A
AMENDED IN ASSEMBLY MAY 31, 2006
AMENDED IN ASSEMBLY MAY 26, 2006
AMENDED IN ASSEMBLY APRIL 6, 2006
AMENDED IN ASSEMBLY MARCH 30, 2006
CALIFORNIA LEGISLATURE-2005-o6 REGULAR SESSION
ASSEMBLY BILL No. 2987
Introduced by Assembly Members Nunez and Levine
(Principal coauthors: Assembly Members McCarthy and Plescia)
February 24, 2006
An act to add Article 3.7 (commencing with Section 53058) to
Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code,
relating to cable and video service.
LEGISLATIVE COUNSEL'S DIGEST
AB 2987, as amended, Nunez. Cable and video service.
Existing law provides that any city, county, or city and county may
authorize by franchise or license the construction and operation of a
community antenna television system and prescribe rules and
regulations to protect the subscribers. Existing law provides that cable
and video service providers comply with specified customer service
standards and perfonnance standards.
This bill would establish a procedure for the issuance of state
franchises for the provision of video service, which would be defined
to include cable service and open-video systems, that would be
administered by the Department of Consumer Affairs. The department
would be the sole franchising authority for state franchises to provide
video services. The bill would require any person who seeks to
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provide video service in this state to file an application with the
department for a state franchise. Cities, counties, or cities and counties
would receive state franchise fees for video services provided within
their jurisdictions, based on gross revenues, pursuant to specified
procedures. The bill would also authorize local entities to establish a
fee to support the capital costs of public, educational, and
governmental access channel facilities, in the amount of either 1% of'
gross revenues or a preexisting fee, whichever is lower. The bill
would require these local agencies to permit the installation of
networks by holders of state franchises and would preclude
enforcement of standards by the local agencies. The bill would
prescribe the extent of the obligation of state franchise holders to
provide public, educational, and government channels. The bill would
prescribe certain customer service and protection standards and
penalties for material breaches of those standards. The bill would
require any state franchise holder employing more than 750
employees to make an annual report of specified information to the
department.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Article 3.7 (commencing with Section 53058) is
2 added to Chapter 1 of Part 1 of Division 2 of Title 5 of the
3 Government Code, to read:
4
5 Article 3.7. The Digital Infrastructure and Video Competition
6 Act of 2006
8 53058. This act shall be known and may be cited as the
9 Digital Infrastructure and Video Competition Act of 2006.
10 53058.1. (a) This article shall be known and may be cited as
11 the Digital Infrastructure and Video Competition Act of 2006.
12 (b) The Legislature finds and declares all of the following:
13 (1) Video and cable services provide numerous benefits to all
14 Californians including access to a variety of news, public
15 information, education, and entertainment programming.
16 (2) Increased competition in the cable and video service sector
17 provides consumers with more choice, lowers prices, speeds the
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deployment of new communication and broadband technologies,
creates jobs, and benefits the California economy.
(3) To promote competition, the state should establish a
state-issued franchise authorization process that allows market
participants to use their networks and systems to provide video,
voice, and broadband services to all residents of the state.
(4) Legislation to develop this new process should adhere to
the following principles.
(i) Create a fair and level playing field for all market
competitors that does not disadvantage or advantage one service
provider or technology over another.
(ii) Promote the widespread access to the most technologically
advanced cable and video services to all California communities
in a nondiscriminatory manner regardless of socioeconomic
status.
(iii) Protect local government revenues and their control of
public rights of way.
(iv) Require market participants to comply with all applicable
consumer protection laws.
(v) Complement efforts to increase investment in broadband
infrastructure and close the digital divide.
(vi) Continue access to and maintenance of the public,
education, and government (PEG) channels.
(5) Telephone corporations providing video service pursuant
to this article shall not subsidize the cost of deploying network
that is used to provide video service and other costs necessary to
offer video service with revenue derived from the offering of
basic telephone services.
53058.2. For purposes of this article, the following words
have the following meanings:
(a) "Cable operator" means any person or group of persons
that either provides cable service over a cable system and
directly, or through one or more affiliates, owns a significant
interest in a cable system; or that otherwise controls or is
responsible for, through any arrangement, the management and
operation of a cable system, as set forth in Section 522(5) of Title
47 of the United States Code.
(b) "Cable service" is defined as the one-way transmission to
subscribers of either video programming, or other programming
service, and subscriber interaction, if any, that is required for the
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selection or use of video progranvning or other programming
service, as set forth in Section 522(6) of Title 47 of the United
States Code.
(c) "Cable system" is defined as set forth in Section 522(7) of
Title 47 of the United States Code.
(d) "Department" means the Department of Consumer Affairs.
(e) "Franchise" means an initial authorization, or renewal of
an authorization, issued by a franchising entity, regardless of
whether the authorization is designated as a franchise, permit,
license, resolution, contract, certificate, agreement, or otherwise,
that authorizes the construction and operation of a cable system
in public rights-of-way.
(f) "Franchising entity" means the city, county, or city and
county entitled to require franchises and impose fees on cable
operators, as set forth in Section 53066.
(g) "Incumbent cable operator" means the cable operator
serving the largest number of cable subscribers in a particular
city, county, or city and county franchise area on the effective
date of this article.
(h) "Local entity" means any city, county, or city and county
within the state within whose jurisdiction a holder of a
state-issued authorization under this article may provide cable
service or video service.
(i) "Network" means a component of a facility that is wholly
or partly physically located within a public right-of-way and that
is used to provide video service, cable service, or voice or data
services.
0) "Open-video system" or "OVS" means those services set
forth in Section 573 of Title 47 of the United States Code.
(k) "OVS operator" means any person or group of persons that
either provides cable service over an open-video system directly,
or through one or more affiliates, owns a significant interest in an
open-video system, or that otherwise controls or is responsible
for, through any arrangement, the management of an open-video
system.
(n "Public right-of-way" means the area along and upon any
public road or highway, or along or across any of the waters or
lands within the state.
(m) "State franchise" means a franchise that is issued pursuant
to this article.
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(n) "Subscriber" means a person who lawfully receives cable
service or video service from the holder of a state-issued
authorization or franchise for a fee.
(o) "Video programming" means programming provided by,
or generally considered comparable to programming provided
by, a television broadcast station, as set forth in Section 522(20)
of Title 47 of the United States Code.
(p) "Video service" means video programming services, cable
service, or OVS service provided through facilities located at
least in part in public rights-of-way without regard to delivery
technology, including Internet protocol technology. This
definition does not include any video programming provided by
a commercial mobile service provider defined in Section 322(d)
of Title 47 of the United States Code or video programming
provided via an Internet access service as that term is defined in
Section 231(e)(4) of Title 47 of the United States Code.
(q) "Video service provider" means an entity providing video
service. This term does not include an incumbent cable operator.
53058.3. (a) The Department of Consumer Affairs is the sole
franchising authority for a state franchise to provide video
service under this article. Neither the department nor any
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 fee or requirement on any holder of a state
franchise except as expressly provided in this article. Sections
53066, 53066.01, 53066.2, and 53066.3 shall not apply to holders
of a state franchise.
(b) The application process described in subdivisions (d) and
(e) and the authority granted to the department under this section
shall not exceed the provisions set forth in this section.
(c) Any person or corporation who seeks to provide cable
service or video service in this state after the effective date of this
article shall file an application for a state franchise with the
department. The department 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) The application for a state franchise shall be made on a
form prescribed by the department and shall include all of the
following:
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(1) A sworn affidavit, signed 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 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
53058.7.
(ii) A statement that the applicant will abide by all applicable
consumer protection laws and rules as provided in Section
53058.8.
(iii) A statement that the applicant will remit the fee required
by Section 53058.4 to the local entity.
(iv) A statement that the applicant will provide PEG channels
as required by Section 53058.5.
(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
department.
(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 service area footprint to be served
including the socioeconomic information of all residents within
the service area footprint.
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(7) If the applicant is a telephone corporation, as defined in
Section 234 of the Public Utilities Code, a description of the
territory in which the company provides telephone service. The
description shall include socioeconomic information of all
residents within in 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.
(e) (1) The department shall notify an applicant for a state
franchise and any affected local entities whether the applicant's
affidavit described by subdivision (d) is complete or incomplete
before the 30th calendar day after the applicant submits the
affidavit.
(2) If the department finds the affidavit is complete, it shall
issue a state franchise before the 14th calendar day after that
finding.
(3) If the department 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 department shall have 30 calendar
days from the date the application is amended to determine its
completeness.
(4) The failure of the department to notify the applicant of the
completeness or incompleteness of the applicant's affidavit
before the 44th calendar day after receipt of an affidavit shall be
deemed to constitute issuance of the certificate applied for
without further action on behalf of the applicant.
(f) The state franchise issued by the department shall contain
all of the following:
(1) A grant of authority to provide video service, in exchange
for the franchise fee required in Section 53058.4, in the service
area footprint as requested in the application.
(2) A grant of authority to use the public rights-of-way 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.
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(g) The state franchise issued by the department may be
terminated by the video service provider by submitting notice to
the department.
(h) Subject to the notice requirements of this article, 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 department.
(i) In connection with, or as a condition of, receiving a state
franchise, the department shall require a holder to notify the
department and any applicable local entity within 14 business
days of any of the following changes involving the holder or 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 department a certified copy of either of the following:
(A) The amended 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
article. The holder shall identify both of the following:
(A) The number of customers in the service area covered by
the state franchise being terminated.
(B) The method by which the holder's customers were notified
of the termination.
(6) A change in one or more of the service areas of this article
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.
0) As a condition of receiving a state franchise, the holder
shall notify all applicable local entities that the local entity is
included in the holder's service area under the state franchise
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being issued and that the holder intends to provide video service
in the local entity's jurisdiction. The holder shall give the notice
required under this subdivision not later than 10 days before the
holder begins providing video service in the local entity's
jurisdiction.
(k) The department shall develop information guides and other
tools to help educate local entities and other interested parties
about the various provisions of this article.
53058.4. (a) The holder of a state franchise that offers video
service within the jurisdiction of the local entity shall calculate
and remit to the local entity a state franchise fee, as provided in
this section. The obligation to remit the state franchise fee to a
local entity begins immediately upon provision of video service
within that local entity's jurisdiction. However, the remittance
shall not be due until the time of the first quarterly payment
required under subdivision (g) that is at least 180 days after the
provision of service began. The fee remitted to a city or city and
county shall be based on gross revenues earned within that
jurisdiction. The fee remitted to a county shall be based on gross
revenues earned within the unincorporated area of the county. No
fee under this section shall become due unless the local entity
provides documentation to the holder of the state franchise
supporting the percentage paid by the incumbent cable operator
serving the area within the local entity's jurisdiction, as provided
below. The fee shall be calculated as a percentage of the holder's
gross revenues, as defined in subdivision (d).
(b) The state franchise fee shall be a percentage of the holder's
gross revenues, as defined in subdivision (d), as follows:
(1) If there is an incumbent cable operator, the fee shall not be
more than 5 percent of the holder's gross revenues or the
percentage applied by the local entity to the gross revenue of the
incumbent cable operator, whichever is lesser.
(2) If there is no incumbent cable operator or upon the
expiration of the incumbent cable operator's franchise, a local
entity may, by ordinance, set the percentage applied to the gross
revenues of all video service providers, provided that the fee
shall not exceed 5 percent of gross revenues and shall be applied
equally to all video service providers in the local entity's
jurisdiction.
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(c) No local entity or any other political subdivision of this
state may demand any additional fees or charges or other
remuneration of any kind from the holder of a state franchise
based solely on its status as a provider of video or cable services
other than as set forth in this section and may not demand the use
of any other calculation method or definition of gross revenues.
However, nothing in this section shall be construed to limit a
local entity's ability to impose utility user taxes and other
generally applicable taxes, fees, and charges under other
applicable provisions of state law that are applied in a
nondiscriminatory and competitively neutral manner.
(d) For purposes of this section, the term "gross revenues"
means all revenue actually received by the holder of a state
franchise, as determined in accordance with generally accepted
accounting principles, that is derived from the operation of the
holder's network to provide cable or video service within the
jurisdiction of the local entity, including all of the following:
(1) All charges billed to subscribers for any and all cable
service or video service provided by the holder of a state
franchise, including all revenue related to programming provided
to the subscriber, equipment rentals, late fees, and not sufficient
fund fees.
(2) Any fees imposed on the holder of a state franchise by this
section that are passed through to, and paid by, the subscribers.
(3) Compensation received by the holder of a state franchise
that is derived from the operation of the holder's network to
provide cable service or video service with respect to
commissions that are paid to the holder of a state-issued
authorization as compensation for promotion or exhibition of any
products or services on the holder's network, such as a "home
shopping" or similar channel, subject to paragraph (4) of
subdivision (e).
(4) A pro rata portion of all revenue derived by the holder of a
state franchise or its affiliates pursuant to compensation
arrangements for advertising derived from the operation of the
holder's network to provide video service within the jurisdiction
of the local entity, subject to paragraph (1) of subdivision (e).
The allocation shall be based on the number of subscribers in the
local entity divided by the total number of subscribers in relation
to the relevant regional or national compensation arrangement.
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(e) For purposes of this section, the term "gross revenue" set
forth in subdivision (d) does not include any of the following:
(1) Amounts not actually received, even if billed, such as bad
debt; refunds, rebates, or discounts to subscribers or other third
parties; or revenue imputed from the provision of cable services
or video services for free or at reduced rates to any person as
required or allowed by law, including, but not limited to, the
provision of these services to public institutions, public schools,
governmental agencies, or employees other than forgone revenue
chosen not to be received in exchange for trades, barters,
services, or other items of value.
(2) Revenues received by any affiliate or any other person in
exchange for supplying goods or services used by the holder of a
state franchise to provide cable services or video services.
However, revenue received by an affiliate of the holder from the
affiliate's provision of cable or video service shall be included in
gross revenue as follows:
(A) To the extent that treating the revenue as revenue of the
affiliate, instead of revenue of the holder, would have the effect
of evading the payment of fees that would otherwise be paid to
the local entity.
(B) The revenue is not otherwise subject to fees to be paid to
the local entity.
(3) Revenue derived from services classified as noncable
services or nonvideo services under federal law, including, but
not limited to, revenue derived from telecommunications services
and information services, other than cable services or video
services, and any other revenues attributed by the holder of a
state franchise to noncable services or nonvideo services in
accordance with Federal Communications Conunission rules,
regulations, standards, or orders.
(4) Revenue paid by subscribers to "home shopping" or
similar networks directly from the sale of merchandise through
any home shopping channel offered as part of the cable services
or video services. However, commissions or other compensation
paid to the holder of a state franchise by "home shopping" or
similar networks for the promotion or exhibition products or
services shall be included in gross revenue.
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(5) Revenue from the sale of cable services or video services
for resale in which the reseller is required to collect a fee similar
to the state franchise fee from the reseller's customers.
(6) Amounts billed to and collected from subscribers to
recover any tax, fee, or surcharge imposed by any governmental
entity on the holder of a state franchise, including, but not limited
to, sales and use taxes, gross receipts taxes, excise taxes, utility
users taxes, public service taxes, communication taxes, and any
other fee not imposed by this section.
(7) Revenue from the sale of capital assets or surplus
equipment not used by the purchaser to receive cable services or
video services from the seller of those assets or surplus
equipment.
(8) Revenue from directory or Internet advertising revenue,
including, but not limited to, yellow pages, white pages, banner
advertisement, and electronic publishing.
(9) Revenue received as reimbursement by programmers of
marketing costs incurred by the holder of a state franchise for the
introduction of new programming.
(10) Security deposits received from subscribers, excluding
security deposits applied to the outstanding balance of a
subscriber's account and thereby taken into revenue.
(f) For purposes of this section, in the case of a video service
that may be bundled or integrated functionally with other
services, capabilities, or applications, the state franchise fee shall
be applied only to the gross revenue, as defined in subdivision
(d), attributable to cable service or video service, as reflected on
the books and records of the holder kept in the regular course of
business in accordance with generally accepted accounting
principles and Federal Communications Commission or Public
Utilities Commission rules, regulations, standards, and orders, as
applicable.
(g) The state franchise fee shall be remitted to the applicable
local entity quarterly, within 45 days after the end of the quarter
for the preceding calendar quarter. Each payment shall be
accompanied by a summary explaining the basis for the
calculation of the state franchise fee. If the holder does not pay
the franchise fee when due, the holder shall pay a late payment
charge at a rate per year equal to the highest prime lending rate
during the period of delinquency, plus I percent. If the holder has
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overpaid the franchise fee, it may deduct the overpayment from
its next quarterly payment.
(h) Not more than once annually, a local entity may examine
the business records of a holder of a state franchise to the extent
reasonably necessary to ensure compensation in accordance with
subdivision (a). The holder shall keep all business records
reflecting any gross revenues, even if there is a change in
ownership, for at least four years after those revenues are
recognized by the holder on its books and records. If the
examination discloses that the holder has underpaid franchise
fees by more than 5 percent during the examination period, the
holder shall pay all of the reasonable and actual costs of the
examination. If the examination discloses that the holder has not
underpaid franchise fees, the local entity shall pay all of the
reasonable and actual costs of the examination. In every other
instance, each party shall bear its own costs of the examination.
Any claims by a local entity that compensation is not in
accordance with subdivision (a), and any claims for refunds or
other corrections to the remittance of the holder of a state-issued
authorization, shall be made within three years and 45 days of the
end of the quarter for which compensation is remitted, or three
years from the date of the remittance, whichever is later. Either a
local entity or the holder may, in the event of a dispute
concerning compensation under this section, bring an action in a
court of competent jurisdiction.
(i) The holder of a state franchise may identify and collect the
amount of the state franchise fee as a separate line item on the
regular bill of each subscriber.
53058.5. (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 PEG channels, that the
incumbent cable operator has activated and provided within the
local entity under the terms of any franchise in effect in the local
entity as of the effective date of this article. For the purposes of
this section, a PEG channel is deemed activated if it is being
utilized for PEG programming within the municipality for at least
eight hours per day. The holder shall have six months from the
date the local entity requests the PEG channels to designate the
capacity. However, the six-month period shall be tolled by any
period during which the designation or provision of PEG channel
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capacity is technically infeasible, including any failure or delay
of the incumbent cable operator to make adequate
interconnection available, as required by this subdivision.
(b) The PEG channels shall be for the exclusive use of the
local entity or its designee to provide public, educational, and
governmental channels. PEG channels shall be used only for
noncommercial purposes. However, advertising or sponsorship
recognition may be carried on the channels for the purpose of
funding the operation of the channels. The PEG channels shall all
be carried on the basic service tier. To the extent feasible, 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) If no PEG channels are activated and provided within the
local entity as of the effective date of this article, a local entity
whose jurisdiction lies within the authorized service area of the
holder of a state franchise may request the holder to designate not
more than a total of three PEG channels.
The holder shall have six months from the date of the request
to designate the capacity. However, the six-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
subdivision.
(d) The holder shall provide an additional PEG channel when
the locally produced, nonduplicated programming televised on a
given channel exceeds hours per week, not including
televised public meetings or classes in an accredited learning
institution, 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.
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(e) Any PEG channel provided pursuant to this section that is
not utilized by the local entity for at least eight hours per day
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 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) 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 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. 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, including, at the holder's option, beyond the
jurisdictional boundaries of that local entity.
(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 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.
(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
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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.
0) In addition to any provision for PEG channels required
under subdivisions (a) to (k), inclusive, the holder shall reserve,
designate, and activate a channel for carriage of public affairs
programming that includes live and recorded coverage of state
goverrunent and state legislative activities originated by the
California Channel and designate and activate a channel for
carriage of public affairs programming originated by C-Span.
(k) After the effective date of this article 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 capital costs of public educational and
governmental access channel facilities, 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 capital costs
of public, educational, and governmental access channel
facilities.
(0 In determining the fee 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 with 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 public,
educational, and governmental access 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
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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.
(m) If there is no incumbent cable operator, or upon the
expiration of the incumbent cable operator's franchise, a local
entity may, by ordinance, establish a fee to support the capital
costs of public, educational, and governmental access channel
facilities and to support institutional network facilities. The fee
shall not exceed the per subscriber fee paid under subdivision (k),
if such a fee was paid, or-_ I percent of the holder's gross
revenues, as defined in Section 53058.4, earned in the local
entity, whichever is lower. Tire-For purposes of administration,
the fee shall be deposited in a special fund established by the
local entity to be used
seetion.. for purposes allowed under federal law.
(n) The following services shall continue to be provided by the
incumbent cable operator that was furnishing services pursuant to
a franchise until January 1, 2008, or until the term of the
franchise expires, whichever is later:
(1) PEG production or studio facilities.
(2) Institutional network capacity, however defined or referred
to in the incumbent cable operator's franchise, but generally
referring to a private line data network capacity for use by the
local entity for noncommercial purposes.
(3) Cable services to community public buildings, such as
municipal buildings and public schools.
(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 by barred from the provision of
service or be required to terminate service as a result of that
dispute or enforcement action.
53058.6. Holders of state franchises shall comply with the
Emergency Alert System requirements of the Federal
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Communications Commission in order that emergency messages
may be distributed over the holder's network.
53058.7. (a) The local entity shall allow the holder of a state
franchise under this article to install, construct, and maintain a
network within public rights-of-way under the same terms and
conditions as applicable to telephone corporations, as defined
under Section 234 of the Public Utilities Code, under applicable
state and federal law.
(b) A local entity may not enforce against the holder of a state
franchise any rule, regulation, or ordinance that purports to allow
the local entity to purchase or force the sale of a network.
53058.8. (a) A cable operator or video service provider that
has been granted a state franchise under this article 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, as required
by Section 541(a)(3) of Title 47 of the United States Code.
(b) It is the intent of the Legislature that the principles for
competition in the provision of video service will require a level
playing field to assure that competition is fair, will require
widespread build-out of state-of-the-art services so that
competition can benefit the greatest number of customers, and
will prohibit discrimination, redlining, and service abandonment
so that a lack of competition will not be detrimental to customers.
53058.9. (a) The holder of a state franchise shall comply
with the provisions of Sections 53055, 53055.1, 53055.2 and
53088.2, and any other customer service standards pertaining to
the provision of video service required to be enforced by federal
law, adopted by the department pursuant to subdivision (q) of
Section 53088.2, or adopted by subsequent enactment of the
Legislature.
(b) The local entity shall enforce all of the customer service
and protection standards of this section with respect to
complaints received from residents within the local entity's
jurisdiction, but it may not adopt or seek to enforce any
additional or different customer service or other performance
standards under Section 53055.3, subdivision (q), (r), or (s) of
Section 53088.2, or any other authority or provision of law.
(c) The local entity may, by ordinance, provide a schedule of
penalties for the material breach by a holder of a state franchise
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of this section. No monetary penalties shall be assessed for a
material breach if the breach is out of the reasonable control of
the holder. Further, no monetary penalties may be imposed prior
to the effective date of this section. Any schedule of monetary
penalties adopted pursuant to this section shall in no event
exceed two hundred dollars ($200) for each day of each material
breach, not to exceed six hundred dollars ($600) for each
occurrence of material breach. However, if a material breach of
this section has occurred and the city, county, or city and county
has provided notice and a fine or penalty has been assessed, in a
subsequent material breach of the same nature occurring within
12 months, the penalties may be increased by the city, county, or
city and county to a maximum of four hundred dollars ($400) for
each day of each material breach, not to exceed one thousand two
hundred dollars ($1,200) for each occurrence of the material
breach. If a third or further material breach of the same nature
occurs within those same 12 months, and the city, county, or city
and county has provided notice and a fine or penalty has been
assessed, the penalties may be increased to a maximum of one
thousand dollars ($1,000) for each day of each material breach,
not to exceed three thousand dollars ($3,000) for each occurrence
of the material breach. With respect to video providers subject to
a franchise or license, any monetary penalties assessed under this
section shall be reduced dollar for dollar to the extent any
liquidated damage or penalty provision of a current cable
television ordinance, franchise contract, or license agreement
imposes a monetary obligation upon a video provider for the
same customer service failures, and no other monetary damages
may be assessed.
(d) If the local entity adopts a schedule of monetary penalties,
the following procedures shall be followed:
(1) The local entity shall give the video provider written notice
of any alleged material breaches of the consumer service
standards of this division and allow the video provider at least 30
days from receipt of the notice to remedy the specified breach.
(2) A material breach for the purposes of assessing penalties
shall be deemed to have occurred for each day, following the
expiration of the period specified in paragraph (1), that any
material breach has not been remedied by the video provider,
irrespective of the number of customers affected.
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(e) This section shall not preclude a party affected by this
section from utilizing any judicial remedy available to that party
without regard to this section. Actions taken by a local legislative
body, including a franchising authority, pursuant to this section
shall not be binding upon a court of law. For this purpose, a court
of law may conduct de novo review of any issues presented.
53058.10. (a) The holder of a state franchise shall perform
background checks of applicants for employment, according to
current business practices.
(b) A background check equivalent to that performed by the
holder shall also be conducted on all of the following:
(1) Persons hired by a holder under a personal service
contract.
(2) Independent contractors and their employees.
(3) Vendors and their employees.
(c) Independent contractors and vendors shall certify that they
have obtained the background checks required pursuant to
subdivision (f), and shall make the background checks available
to the holder upon request.
(d) Except as otherwise provided by contract, the holder of a
state franchise shall not be responsible for administering the
background checks and shall not assume the costs of the
background checks of individuals who are not applicants for
employment of the holder.
(e) (1) Subdivision (a) only applies to applicants for
employment for positions that would allow the applicant to have
direct contact with or access to the holder's network, central
office, or customer premises, and perform activities that involve
the installation, service, or repair of the holder's network or
equipment.
(2) Subdivision (b) only applies to person that have direct
contact with or access to the holder's network, central office, or
customer premises, and perform activities that involve the
installation, service, or repair of the holder's network or
equipment.
(f) This section does not apply to temporary workers
performing emergency functions to restore the network of a
holder to its normal state in the event of a natural disaster or an
emergency that threatens or results in the loss of service.
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53058.11. (a) A holder of a state franchise employing more
than 750 total employees shall annually report to the department
all of the following:
(1) The number of California residents employed by the
holder, calculated on a full-time or full-time equivalent basis.
(2) The percentage of the holder's total domestic workforce,
calculated on a full-time or full-time equivalent basis.
(3) The types and numbers of jobs by occupational
classification held by residents of California employed by
holders of state franchises and the average pay and benefits of
those jobs and, separately, the number of corporations
headquartered outside of California.
(4) The number of California and separately, the number of
out-of-state residents employed by independent contractors,
companies, and consultants hired by the holder, calculated on a
full-time or full-time equivalent basis, when the holder has
obtained this information upon requesting it from the
independent contractor, company, or consultant, and the holder is
not contractually prohibited from disclosing the information to
the public. This paragraph applies only to those employees of an
independent contractor or consultant that are personally
providing services to the holder, and does not apply to employees
of an independent contractor or consultant not personally
performing services for the holder.
(5) The holder of net new positions proposed to be created
directly by the holder of a state franchise during the upcoming
year by occupational classifications and by category of full-time,
part-time, temporary, and contract employees.
(b) The department shall annually report the information
required to be reported by holders of state franchises pursuant to
subdivision (a), to the Assembly Committee on Utilities and
Commerce and the Senate Committee on Energy, Utilities and
Communications, or their successor committees, and within a
reasonable time thereafter, shall make the information available
to the public on its Internet Web site.
53058.12. (a) The provisions of this article are intended to be
consistent with the Federal Cable Act (47 U.S.C. Sec. 521 et
seq.).
(b) Nothing in this section shall be interpreted to prevent a
voice provider, cable operator or video service provider, or local
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I entity from seeking clarification of its rights and obligations
2 under federal law or from exercising any right or authority under
3 federal or state law.
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ATTACHMENT B
I
109T11 CONGRESS
2v tiEr:sslo~
ION H. Re 5252
To promote the dt'i►IoYnient of hroadhand networks and scm ices.
IN THE, HOUSE' OF REPRESKNTATnT~,s
1IAY 1, ZOOG
All'. BARTON of Texas (for himself, Abr. Rvsir, Mr. UPTON. Mr. PIChaMING,
VII'. STEMINS, All'. lWYER, All's. BLACIQ317RN, 11I1'. UILLRU)R, Mr. SIL1ll-
EG6, li►'. ILU)ANOYICII, All'. R(IGFms of 1llichiggan, 1Ir. FERGUSON, \Ir.
NORWOOD, Mr. WHITFIELD, 1Ir. SIII\IKUS, 1lrs. 1IYRICK, and Ilr. Bult-
ul~.ss) int.rodnced the folloxiing bill; which wits referred to the Committee
ou Energy and Coniniorce
A BILL
To proniote the deployment of broadband networks and
sclIVIC (Is.
1 Be lit enw-ted by the Senate and House nf'Represevla.-
2 ti'ues of the United Statcs ol'flmerica 'in Congress asserr►ble.d,
3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
4 (a) SH011T TITLE.-This Act may be cited as the
5 "Communications Opportunity, Promotion, and Enhance-
6 ment Act of 006".
7 (b) TABLE OF CONTENTS.-
See. 1. Short . title; table of contents.
TITI.E I-NATIC 1NA1. C '.1T31,E FILINCI I ISING
•
2
Sec. 101. National cable fraucbisiue.
Sec. 102. Defmitiom,.
Sec. 103. Monitorilty and reporting.
TITLE 11-ENFORCEMENT OF BROADB.IND POLICY STATEMENT
See. 201. Fuforecment of hroadhand policy statement,.
'T'ITLE II1-VOIP/911
Sec. 301. Energeney services; interemmuction.
TITLE W-MUNICIPAI, I'ItON ISION OF SERIWES
Sec. 101. (.overnment authority to pro%ide services.
TITI,F, V-BROADIIA\D SERVICE
Sec. 501. Stand-alone brvadbamd service.
Sec. 502. Stud}• of interrerence potential of broadband over potter lice system,.
TITLE 11-SEAMLESS MOBILITY
See. 1101. Development of seandess mohility.
1 TITLE I-NATIONAL CABLE
2 FRANCHISING
3 SEC. 101. NATIONAL CABLE FRANCHISING.
4 (a) AMENDMENT.-Part. III of title « of the Com-
5 munications Act of 1934 (47 U.S.C. 541 et secy.) is
6 an)ended by addin- at. the end the followill" neNe section:
7 "SEC. 630. NATIONAL CABLE FRANCHISING.
8 "GO NATIONAI. FRANCIIItiES.-
9 "(1) EILECTION.-A person or lri-oul) that is eli-
10 gihle under subsection (d) may elect to obta.irr a ua,
11 tional f llichise under tills section as anthorit_y to
12 provide cable service in a franchise area. in lieu of
13 any other arntllority lender Federal, State, or local
14 law to provide cable se)-Nice in such franchise area.
15 A person or grotip may not provide cable service
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3
1 under the authority of this section in a franchise
2 area unless such person or grout) has a. franchise
3 under this section that is effective with respect to
4 such franchise area. A franchising authority may not
5 require auy person or group that, has a national
6 franchise under this section in effeet with respect to
7 it franchise area to obtain a franchise cinder section
8 621 or any other law to pro-zde cable service in such
9 franchise area.
10 "(2) CERTIFICATION.-To obtain a national
11 franchise under this section as authority to provide
12 eahle service in a franchise area, a person or gn-oup
13 shall-
14 "(A) file with the Commission a ccrtifi-
15 citron for a national fi-michise containing the
16 information required by paragraph (3) with re-
17 sped to such franchise area, if such person or
18 group has not previously obtained it, national
19 franchise; or
20 "(I3) file with the Commission a. subse-
21 quern cert.ifieation for additional franchise areas
22 containing the information required by para-
23 graph (3) with respect to such additional fran-
24 chile areas, if such person or group has pre-
25 yiouslY ohtmned a nat.iouid h-anchisc.
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1 "(:3) CONTENTS OF CEIiTIFICATIm.-Such col-
2 tification shall be in such form as the Commission
3 shrill require by regulation and shall cont.ain-
4 "(A) the nrnne under which such person or
5 (;rrnrl) is offering- or intends to otter cable sell-
6 ice;
7 "(l3) the names and business addresses of
8 the directors an(] principal executive officers, or
9 the persons performing similar fiirletions, of
10 such person or group;
11 "(C) the location of such person or. grolrp's
12 principal business office;
13 "(D) the uarne, business address, Mee-
14 tropic Inail address, and telephone and fax
15 number of such person or gn-oup's loeal agent;
16 "(E) a. declaration by such person or group
17 that such person or group is eligible under sub-
18 section (d) to obtain a national franchise under
19 this section;
20 "(F) an identifieation of each franchise
21 area iii which such person or p;roup intends to
22 offer cable serx-ice pnl-silarrt to such ccrtifi-
23 cation, which franchise area shall be-
24 "(i) the entirety of a. franchise area, in
25 which a cable operator is, on the date of
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the filing of such certification, authorized
2
to proVnde ea.hle service under seet•lon 621
3
or any other law (including this section);
4
of,
5
"(ii) a. contign.ious geographic area
6
that. covers the entirety of the '1111-isdiction
7
of a. unit of general local government, ex-
8
cept that-
9
"(I) if the geographic area within
10
the jurisdiction of such milt, of general
I I
local government contains it franchise
12
area in which a cable operator is, on
13
such date, authorized to provide cable
14
service under section 621 or any other
15
law, the contiguous geographic area
16
identified in the certitlcatlon under
17
this clause as a franchise area shall
18
not include the area contained in the
19
franchise area of such cable operator;
20
and
21
"(11) if such eorltigilous geo-
22
graphic area inchldes areas that are,
23
respectively, within the ,jurisdiction of
24
different franchising authorities, the
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e.ert.ifi( •ation shall spec'6- each such
2
area as a separate franchise area;
3
`(ti) it declaration that such person, of
4
group transmitted, o1• will transmit on the clay
5
of filing such declaration, a copy of such cert.ifi-
6
cation to the franchising authority for each
7
frane.hise area for which such person or group
8
is filing a certification to offer cable service
9
under tills section;
10
"JI) it declination by the person oi- group
11
that the pet-soil or group will coniply with the
12
rights-of-way requirements of the franchising
13
authority under suhsect,ion (f); and
14
"(I) a declaration by the person or group
15
that-
16
"(1) the person or group will conipI.N
17
Avith III Commission consumer protection
18
and customer service rules under section
19
632(11) and subsection (g) of this section;
20
and
21
"(11) the person or group agrees that.
22
such standards rmaY be enforced by the
23
Commission or by the franchising author-
24
ity in accordance with suhsection (g) of
25
this See.tioll.
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"(4) LOCAL NOTIFICATION; PRESERVA'T`ION OF
OPPORTUNITY TO NEGOTIATE'.-
"(A) COPY TO FRANCHISING AiTTIIOR-
ITY.-Oll the day of filing anv certificatiOll
under parara.ph (2)(A) or (13) for a. franchise
area, the person or group shall transmit a copy
of sueh certification to the fra.nehisIng withority
for such area.
11(I3) NEGOTIATED FRANCHISE, AGREE-
AIENTS PERMITTED.-Nothing- ill this section
shall prevent, a person or group from ner;oti-
atirl~ a franchise agi-eement or any other au-
thority to provide cable set-vice in a franchise
area under section 621 or any other law. Upon
entry into any such negotiated franchise agree-
rent, such negotiated franchise agi-eenlent shall
apply ill lieu of any national franchise held by
that person or grout) under this section for such
franchise area.
"(5) UPDATING OF CERTIFICATIONS.-A person
or grroup that, files a certification under this s(,('t1O11
shall update any information contained ill such cer-
tification that is no longer accurate and Correct..
"(6) PUBLIC AVAILABILITY OF CERTIFI-
CATIONR.-The Commission shall provide for the
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18
19
20
21
22
23
24
25
pulylic avail ahiIit.y on the Commission's Internet.
website or other electronic facility of all current cer-
tifications filed under this section.
"(1)) I' FFEC'TIl'ENEtiS; I)ITILMON.-
"(1) E1+ F EC'TnTNEss.-A na,tlonal franeliisc
under this section shall be effective with respect to
any franchise area, 30 clays after the date of the fil-
in(, of a completed certification under subsection
(a)(2)(A) or (13) that applies to such fi-anchise area.
"(2) DuRATION.-
"(A) IN GENERAL.-A franuhise under this
section that applies to a franchise area shall be
effective for that franchise area foi- a torn of
10 y(ars.
"(I3) RENEWAL.-A franchise under this
section for a franchise area shall he renewed
automatically- upon ctiq)ir-ation of the 10-year
period described in subparagraph (A).
"(C) PUBLIC' IIF.ARING.-At the request of
a fra.nehisint; authority in a. franchise area, a
cahle operator authorized under this section to
proyidc cable service in such franchise area
shall, within the last year of the 10-,year period
applicable under subparagraph (A) to the cahle
operator's rranchise for such franchise area,
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participate in a pnhlie hearing on the e.a.hle op-
2
orator's performance in the franchise area., in-
3
eluding the cable operator's compliance with the
4
requirements of this title. The hearing shall of -
5
ford the public the opportunity to participate
6
for the purpose of identlA in cable-related eorn-
7
munlt}, heeds and interests all(] assessing the
8
operator's performance. The cable operator
9
Shall provide notice to its subscribers of the
10
hearing at least :30 days prior to the hearing-1
11
"(D) RFN,O('ATION.-A franchise under
12
this section for it franchise area may be revoked
13
by the Commission-
14
"(i) for willfill or repeated violation of
15
my Federal or Mate law, or any Conlnlis-
16
Sion regulation, relating; to the provision of
17
cable service rrl sliell frrrllell►se area;
18
"(ii) for false statements or material
19
omissions knowingly made in any filing
20
with the Commission relating to the provi-
21
Sion of gable sel-Nine in sueh frarlelliso ar(1a;
22
"(iii) for willful or reheated violation
23
of the rights-of=way management laws or
24
regulations of any franchising authority in
25
such franchise area. relating to the provi-
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sion of eable service in such fi•arlchise area;
2
011
3
"(W) for Willfill or repeated violation
4
of the antidiscrimination requirement of
5
slihsectioll (11) with respect to Such frall-
6
ehise area.
7
"(E) V'OTICE.-The Commission shall
8
send a notice of such revocation to cacti fran-
9
chislll". authority With jurisdiction over the
10
franchise areas for Which the cable operator's
11
fra.ncluse was revoked.
12
"(h`) RE INSTATE 11ENT.-!After a revoca-
13
tion under suhpa.ragraph (D) of a. franchise for
14
a fi'aluvllise area of any person or group , the
15
Commission may 1""efllSe to accept for filing a
16
new certification for authority of such person or
17
group to provide eable service under tills sect.1011
18
in such fi-alichisc a.r•ea. until the Commission de,
19
termines that the basis of such revocation has
20
been remedied.
21
"(G) RETURN TO LOCAL FRANCHISING IF
22
CABLE COMPETITION CEASE-,.-
23
"(i) If only one cable operator is pro-
24
viding cable service in a franchise area,
25
mid that cahlc oper.ltol. obtained a national
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franchise for such franchise area under
2
subsection (d)(2), the franchising authority
3
for such franchise area may file a petition
4
with the Commission requesting that the
5
Commission terminate such national fra,11-
6
uhise for such franchise area..
7
"(H) The Colnmisslon shall provide
8
public notice and opportunity to comment
9
on such petition. If it, finds that the re-
10
quirernerlts of clarlse (i) are satisfied, the
11
Commission Shall issue an order grantlllt;
12
such petition. Such order shall take effect,
13
oils year frorrl the date of such grant, if no
14
other cable operator offers cable service in
15
such area during that one ,year. If another
16
cable operator sloes offer cable ser N ice in
17
such frallel►iSe area ciurin;r that, one year,
18
the Commission shall rescind such order
19
and dismiss such petition.
20
"(iii) A cable operator whose national
21
franchise is terminated for suell franchise
22
area under this subparagraph may obtain
23
new authority to provide cable sm ice in
24
such franchise area. under this section, sec-
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1 tion 621, or any other law, if and when ell-
2 gible.
3 I r,,QvIR:E\IENTS OF NATIONAL FRANCHISE.-A
4 national franchise shall contain the following- require-
5 ments:
6 "(1) FF--1NCIII1;E FEE.-A cable operator au-
7 thor•ized healer this section to provide cable service
8 In it franchise area shall pav to the fi-allclrls111g all-
9 thorny in such f -michise area. a franchise fire of up
10 to 5 percent (as determined by the franchising Mu-
11 thority) of such cable operator's gross revenues from
12 the provision of cable sellrice under this section in
13 such franchise area. Such payment shall be assessed
14 and collected in a nla.nller consistent with section
15 622 and the definition of gross revenues in this sec-
16 t-ion.
17 "(2) PEG/1-NET REQUIREMENTS.-A eaiblc op-
18 orator authorized under this section to provide cable
19 service in a franchise area shall comply with the re-
20 (11111-ements of subsection (e).
21 "(3) RimITS-0F-WAY.-A cable operator au-
22 thorized under this section to provide cable servi(T
23 in a franchise area shall comply Nvith the rights-of-
24 wa.v requirements of the franchising authority under
25 Subsection (f).
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1 "(4) CONSUMER PROTECTION AND CUSTOMER
2 SI'RVICE STANDARDS.-A cable operator authorized
3 ender this section to provide cable service in a frarr-
4 chise area shall comply with tyre consumer protection
5 and crlstorner service standards estahlished by the
6 Commission under section 632(b).
7 "(5) CHILD PORNo(sRAPIIy.-A cable operator
8 authorized under this section to provide cable service
9 in a franchise area shall eomply with the rerIIlations
10 on child pornogn-aphy pronmlgated pursita►rt to sub-
11 section (i).
12 "(d) ELIGIBILITY FOR NATIONAL FRANCHISES.-
13 The following persons or groups are clipible to obta.iu it
14 national franchise under this section:
15 "(1) COMMENC E'MENT OF SERVICE AFTER EN-
16 ACTMENT.-A person or group that, is not. providing
17 cable service iu a franchise area on the date of en-
18 actrnent of this section under section 621 or any
19 other law pray obtain it national fi•anchise under this
20 section to pro-6de cable service in such franchise
21 area.
22 "(2) EXISTING PROVIDERS OF CABLE SERy-
23 ICE.-A person or group that is providing cable
24 service in a franchise area on the (late of enactment
25 of this section under section 621 or any other law
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1 may obtain a franchise under this section to proNTide.
2 cable scl-Oce in such fra.tichise area if, on the date
3 that, the national franchise becomes effective, an-
4 other person or group is providing cable service
5 under this section, section 621, or ally other law in
6 such franchise a.rca.
7 "(e) I'tTBLIC., EDi'CATIONt1L, AND GrOVERNMENTAL
8 USE.-
9 "(1) IN GENERAL.-Subject to pa.rag-Vaph (3), it
10 cable operator with it national franchise for a ti-
an-11 chise area under this section shall provide channel
12 capacity for public, educational, and governmental
13 use that is not. less than the channel eapacity re-
14 quired of the cable operator with the Inost sub-
15 scribers in such franchise area oil the effective date
16 of such national franchise. If there is no other cable
17 operator in such franchise area on the effective. (late
18 of such national franchise, or there is no other cable
19 operator in such franchise area on such date that is
20 required to provide channel capacity for public, edu-
21 mitional, and governmental use, the cable operator
22 shall pi-m ide the aunount of channel capacity for
23 such use as determined by Commission rile.
24 "(2) PEG' VND I-NET FINAM"IAL SUPPORT.-A
25 cable operator with a national franchise under this
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1 section for a franchise area shall pay all amount,
2 equal to 1 percent of the cable operator's ;Noss reve-
3 rmes (as such term is defined in this seet.ion) in the
4 franchise area to the fi-anchising authority for the
5 support of public, educational, and governmental use
6 acrd institutional networks (as such term is defined
7 in section 611(f)). Such papnent shall be assessed
8 dnd collceted in it niamlcr consistent with section
9 622, irlc.ludirng; the authority of the cahle operator to
10 des4 hate that portion of it subscriber's hill a,ttrib-
11 utable to such payment. A cable operator that pro-
12 vided cahle sell-ice in it fi-anchise area on the (late
13 of ellactrl►ect, of tills section and that ohtaills a na-
14 tional franchise nrrcler this section shall continue to
15 provide any institutional network that it was re-
16 quire( to provide in such franchise area tinder see-
17 tiorl 621 or any other law. Notwit.hst.amlillg section
18 621(h)(3)(D), it fi-anchising alithority may not re-
19 quire it cable operator franchised under- tills section
20 tc► construct a. new institutional network.
21 "(3) ADJUSTMENT.-Every 10 years after the
22 commenceluent of a franchise under this section for
23 a franchise area, a fracchising authority may require
24 it eahle operator authorized under such fra.nehise to
25 increase the chancel capacity desip;nated for piihlic,
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1 educational, or g0vernment,a.l use, and t.llc channel
2 capacity desipiat.ed for such use on anv institutional
3 networks required under paragraph (2). Such in-
4 crease shall not exceed the higher of-
5 "(A) one ellannel; or
6 4`(I3) 10 percent of the puhlic, educational,
7 or governmental channel capac°.it1, required of
8 that operator prior to the increase.
9 "(4) T1L: NSAIISSION AND PRODUCTION OF PRO-
10 c4 RAMAIING.-
11 "(A) A cable operator franchised under
12 this section sllall ensure that all subserihers re-
13 ecive any puhlic, educational, or governmental
14 programluin" carved by the cable operator
15 within the subscriber's franchise area.
16 "(13) The production of any programming
17 provided under this subsection shall be the re-
18 spol►sibility of the fi•anchising authol-Ity.
19 "W) A cable operator franchised udder
20 this section shall he responsible for the trans-
21 Mission from the signal origination point. (or
22 points) of the programming, or from the point
23 of interconnection with another cable operator
24 under subparagraph (1)), to the cable operator's
25 subscribers, of any public., educational, or gov-
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•
ernmental prop-raanming produced by or for the
2
franchising, aut.horI y and carried by the cable
3
operator pursumit to this section.
4
"(D) Unless two cable operators otherwise
5
agree to the tel'Ills for interconnection alld cost
6
sharing, such cable operators shall comply with
7
regulations proscribed by the Commission pro-
8
lidinr; fol'-
9
"(i) the intercouneetloll between two
10
cable operators ill it franchise area foi-
l I
transmission of public, educational, or gov-
12
e2'nmental rozirraniming, without material
13
deterioration in Siplal quallt;v 01'
14
firnctioliality; and
15
"(ii) the reasonable allocation of the
16
costs of such interconnection between such
17
cable operators.
18
"(F) A cable operator shall display the
19
progn-am infornation for public, ellneatlonal, or
20
governmental progi-animing carried under this
21
subsection in any print or electronic progn,am
22
guide in the same manner in which it displays
23
program information for other video program-
24
riling in the fi-anchise area. The cable operator
25
shall not omit such public, educational, or gov-
•1111 5252 1H
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I el'nmental programming from any nililgatlomil
2 „g111de, of meTlll containing other video
3 programming that is available to subscribers in
4 the franchise area.
5 "(f) ItIGIITS-OF-WAY. -
6 "(1) AUTHORITY TO rsE.-Ally franchise under
7 this section for a franchise area shall be construed
8 to authorize the construction of a. cable sN-dem over
9 public rights-of-way, and through casements, which
10 1S 1Itlln the area. to be served by the. cable s
11 and which have been dedicated for compatible uses,
12 except that in using such easements the cable oper-
13 ator shall ensure t.hat.-
14 "(A) the safety, functioning, and appear-
15 once of the propurtV and the convenience and
16 the safety of other persons not be adversely af-
17 fected by the installation or construction of fay
18 cilities necessary for a cable system;
19 "(I3) the cost of the installation, construe,
20 tion, operation, of removal of such facilities be
21 borne by the cable operator or subscriber, or a
22 c0111binatlon of both; and
23 "(C) the owner of the property be justly
24 compensated by the cable operator for any dam-
25 ages callscd by the installation, coustallet.ion,
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1 operation, or r•einoval of such facilities by the
2 cable operator.
3 "(Z) MANAGEMENT OF PUBLIC RI(IIITS-OF-
4 WAY.-Nothing in this Act affects the authorltY ot'
5 a State or local governlnerlt. (including; a fra.ncllisin';
6 authority) over a person or group in their capacity
7 as a cable operator i6th a franchise under this scc-
8 tion to manage, oil a reasonable, competitively neu-
9 tral, and non-discrinlinator.v basis, the public rights-
10 of-wily, ail(] easements that have been dedicated foi-
l 1 compatible uses. A State or local government (in-
12 eluding a franchising authority) may, on a. reason-
13 able, competitively neut.rnl, and non-discriminatory
14 basis-
15 "(A) impose charges for such mami ement,
16 and
17 "(I3) require compliance with such mail-
18 agreinent, such charg-es, and paragraphs (1) (A),
19 (R), and (C).
20 "(g) CONSUMER PROTECTION AND CUSTOMER SERV-
21 Ic'E.-
22 "(1) NATIONAL STANDARDS.-Notx%,ithstandln()*
23 section 632(d), Yio State or local law (includino, ally
24 regulation) shall impose on a. cable operator fran-
25 chised under this section ally consllincr protection or
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1 customer servree r'equir'ements other than consumer
2 protection or customer sem'rce requirements of ;en-
3 oral applicability.
4 "(2) PROCEEDIyG.-AVithin 120 clays after the
5 date of enactillent of this section, the. Commission
6 shall issue a report and order that, updates for cable
7 operators franchised under this section the national
8 consumer protection and customer service rules
9 under section 632(b), taking into consideration the
10 national nature of a franchise under till's section and
11 the role of State and local governments in enfor•cin",
12 but, not creating, consumer protection and customer
13 service standards for eahlc operators franchised
14 under fills scc•tiorr.
15 "(3) RE(i uIREMENT'~ OF NEW R.I'LES.-
16 "(A) Such rules shall, in addition to the
17 requirements of section 632(h), address, with
18 specificity, no less than the followirrh corrsrnruVr
19 protection and customer ser-Niee issues:
20 C'M Billing, billing disputes, and dis-
21 conl.il►uation of selvicc, ineluding when and
22 how any late fires may be assessed (but. not
23 the amount of such fees).
24 "(ii) Loss of service or service quality.
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I
"(iii) Chang-es in channel lineups or
2
other cable services and features.
3
"(iv) Availability- of parental control
4
options.
5
"(I3 ) Such rules shall require forfeiture
6
penalties or custo►ner rehates, or both, as deter-
7
mined by the Commission, that may he imposed
8
for violations of such Commission rules in a
9
f'ra.nehise area, and sha.11 provide for increased
10
forfeiture penalties or customer rebates, or
11
hotly, for reheated violations of the standards in
12
such rules.
13
"(C) The Commissions rules shall also es-
14
tablish procedures by Av1►ich ally forfeiture pen-
15
alts assessed by the Commission raider this
16
subsection shall he paid hy, the cahle operator
17
directly to the franchisin- authority.
18
"(D) The Commission shall report to the
19
Congress no less than once a ycar-
20
"(i) on complaints filed, and penalties
21
imposed, under this subsection; and
22
"(ii) oil any new consumer protection
23
or customer sei Tice issues arising under
24
this subsection.
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1 "(E) The Commission's rules established
2 under this subsection shall he revised as needed.
3 "(4) COMPLAT\TS.-Any Person nlay file 21
4 cornplaint with respect to a violation of the regula-
5 Lions Prescrihed under section 632(h) in a. fi-auchise
6 area by a cable operator fi-anchised hider this sec-
7 tion-
8 "(A) with the franchising authority in such
9 MINI; or
10 "(B) with the Commission.
11 "(5) LOCAL FRANCHISING ORDERS REQUIRING
12 COMPLIANCE.-Ill it proe.eeding commenced with a
13 franchising authority oil such a. colllp4lint, a. frall-
14 cllising authority llla} issue all order reciuil-ing com-
15 plia.nce with an.v of such regulations prescribed by
16 the Commission, but a franchising authority nlay
17 not create any new standard or regulation, or ex-
18 panel upon or rllodlfy the Commission's standards or
19 reg11111tlolls.
20 "(6) AcCE55 TO RECORDS.-Ill such a pro-
21 covdillg, the. franchising authority Irlm• issue all
22 order requiring t1w filing of any contract, agree-
23 molt, or arrangement between the subscriber and
24 the prox ides, or any other data, documents, or
25 records, directly related to the alleged violation.
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1 "(7) COADIISSION REMEDIES; APPEALS.-ITr7-
2 lass appealed to tluv Commission, an order of a, fran-
3 chising authority under this subsection shall be en-
4 forced by the Commission. Any such appeal shall be
5 resolved by the Commission within :30 days after re-
6 ceipt. of the appeal by the Commission.
7 "(8) COST OF FRANCHISING Ai" rIIORITY OR-
8 DERS.-11 franchising authority- may charge a pro-
9 hider of cable service under this section a nominal
10 fee to cover the costs of issirinr; such orclcr5.
11 "(h) ANTIDISCRIMINATic)N.-
12 "(1) PROHIBITION.-A cable operator with a
13 national franchise under this section to provide cable
14 service in a fi-arrchise area shall not decry access to
15 its r.able service to any group of potential residential
16 cable service subscribers in such franchise area be-
17 cause of the income of that group.
18 "(2) E\FORCEMENT.-
19 "(A) COMPLAINT.-If a franchising au-
20 t.horitY in a franchise area has reasonable cause
21 to bellcve that it cable operator is in vlolat.iou
22 of this subsection with respect to such fi-anchise
23 area, the franchising authority may, after com-
24 plying Ncith subparagraph (I3), file a complaint
25 with the Commission alleging such violation.
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"(B) NOTICE BY FILkNCIIISINU AUTHOR-
2
nw.-Before filing it complaint with the Cow-
3
mission under subparagraph (A), a fi-anchisilll,
4
autlloritA-
5
"(i) shall rite notice of each alleged
6
violation to the. cable operator;
7
"(ii) shall provide a period of not less
8
than 30 days for the cable operator to re-
9
spond to such allegations; and
10
"(111) (1111'lllr such period, Init ' 1-e(II111'('
11
the (table operator to submit it written re-
12
spouse stating the reasons why the oper-
13
ator has not Violated this suhsectlon.
14
"(C) BIANNUAL REPORT.-A ca.hle oper-
15
ator with a national frallChlse under this section
16
for a franehise area, not later than 180 days
17
After the offectite date of such national fran-
18
cllise, and hiannnallN, thereafter, shall submit it
19
report to the Commission and the franchising
20
authorltY In the franchise area-
21
"(i) iclcntifj'lllr the geographic areas
22
in the franchise area where the cable oper-
23
at.or offers cable service; and
-HR 5252 IH
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"(ii) describing the cable operator's
2
progress in extending cable senlice to other
3
areas in the franchise area.
4
"(D) NOTICE BY CO\IAIISSION.-Upon re-
5
cCipt of a complaint under this paragraph alleg-
6
ing a Violation of tills subsection by a cable op-
7
orator, the Cornnlission shall give notice of the
8
complaint to the cable operator.
9
"(E) INITATSTIGATION.-In illvestigatillg a.
10
Complaint illlder tills paragraph, the Collmlis-
11
slon may require it cable operator to disclose to
12
the Commission such information and doeu-
13
meets as the Commission deems necessary to
14
determine whether the cable operator is in eom-
15
pliance ivit11 this subsection. The Commissloll
16
shall maintain the eonfiderltiality of any infor-
17
Illation or document. collected under this sub-
18
paragraph.
19
"(F) DE -LINE FOR RESOLUTION OP
20
COMPLAINTS.-Not more than 60 clays after
21
the Commission receives it complaint 1111der this
22
paragraph, the Commission s11all issnc it deter-
23
nlination with respeet to each violation alleged
24
in the complaint.
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"(G) Dr'I'rRA'IINATION.-If the ('011111lis-
2
Sion determines (ill response to a complaint.
3
under this paragraph of oil its mvll initiative)
4
that a cable operator Nvith a franchise under
5
this section to pi-m ide cable scm; ice in a fran-
6
chile a.rva has defiled access to its Cable servlee
7
to a group of potential residential cable service
8
subscribers In such franchise area because of
9
the Income of that group, the Commission shall
10
erasure that the cable operator extends access to
11
that group within a reasonable period of time.
12
"(II) R-rAIrnlrS.-
13
"(1) IN c;F.NrRAL.-This subsection
14
shall be enfin'ced by the Connuission under
15
titles IV and V.
16
" (ii) AL-N-'IA4i'AI FORFEITURE PEN-
17
ALTT.-For purposes of section 503, the
18
maximulll forfeiture penalty applicable to a
19
violation of this subsection shall be
20
$500,000 for each day of the violation.
21
"(ill) PAYMENT OF PLNALrIES TO
22
FIt1Nl'IIISING AT"TIIORITY.-The Commis-
23
lion shill order anY cable operator subject
24
to a forfeiture penaltY under this sub-
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1 section to pay the penalty directly to the
2 franchising authority involved.
3 "(i) CHILD I'miNUGRAmIIY.-Not later than 180
4 days after the date of enactment of this section, the COIn-
5 mission shall promulgate rcgidations to require a cable op-
6 orator with a national fi-anchlsc under t.lris section to pre-
7 vent, the distribution of child pornography (as such term
8 is defined in section 254(h)(7)(F)) over its network.
9 "(I) AccEss.-Thc provisions of sec.t.ion
10 612(1) regarding the carriage of programming from it
11 qualified minority programming source or from any quali-
12 fled educational progr•amnung source shall apply to a cable
13 operator franchised under this section to prm6dc cable
14 scr N ice in it franchise area.
15 "(k) AI3PLIcA13ILITY OF OTHER PROVISIONS.-The
16 following sections shall not apply in a. franchise area to
17 a person or group franchised under this section in such
18 franchise area, or- confer arrv authority to regulate or 1111-
19 pose obligations on such person or group: Sections 611(a),
20 611(b), 611(c), 613(a), 617, 621 (other than subsections
21 (b)(3)(A), (b)(3)(13), (b)(3)(C), and (c)), 624(b), 624(e),
22 624(h), 625, 626, 627, and 632(a).
23 "(1) EmER(,ENCY ALER.Ts.-Nothing in this Act, shall
24 be construed to prohibit a State or local government from
25 accessing the emergency alert, system of a cable operator
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1 Nvith a. franchise under this section in the area screed by
2 the State or local government to transmit local or regional
3 emerg•ency alerts.
4 "(m) REPORTING, RECORRS, AND AuDITS.-
5 "(1) REPORTING.-A cable operator n•ith a
6 fraudiise under this section to provide cable sem iee
7 in a franchise area shall make such periodic reports
8 to the Commission and the Franchising; authority for
9 such franchise area, as the ("rnnrnissior► may rcarrirc
10 to vcrif}r compliance with the fee obligations of snb-
II sections (c)(1) and (e)(2).
12 "(2) AVAILABILITY OF ROOKS AND RECORDS.-
13 Uporr request larder paragraph (3) by it frayrehisinff
14 authority for it fi•anrehise area, and upon rearrest by
15 the Commission, a cable operator with a national
16 frane}rise for such fi•anchise area shall make avail-
17 angle its books and records to periodic audit by such
18 franchising anthor•ity or the Commission, respec-
19 tively.
20 "(:3) FILANCIIISING AUTHORITY AUDIT PROCE-
21 DUKE.-A franchising; authority rnay, upon reason-
22 able written request, but no more than once III MIN,
23 12-month period, review the business records of such
24 cable operator to the extent reasonably necessary to
25 eusurc payruent of the tees reauil-ed by subsections
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1 (c)(1) and (e)(2). Such review may include the meth-
2 odologgy- used by such cable operator to assign por-
3 tions of the revenue from cable service that may be
4 trundled or funetionallY integrated with other serv-
5 ices, capabilities, or applications. Such review shall
6 be conducted in accordance with procedures esta.b-
7 lished by the Commission.
8 "(4) COST RECOXTR.Y.-
9 "(A) To the extent that the review under
10 paragraph (:3) identifies an rlnderpayment of an
11 amount meeting the nllrlrrnunr percentage speci-
12 fled in subparagn-aph (R) of the fee required
13 under subsections (c)(1) and (e)(2) for the pe-
14 riod of reilew, the cable operator shall reiw-
15 burse the fi-anchisinb authority the reasonable
16 costs of any such review conducted by an inde-
17 pendent. third party, as determined by the Com-
18 mission, with respect to such fee. 'l'ire costs of
19 any contingency fee arrangement between the
20 franchising authority and the independent re-
21 vieNver shall not be suhlect. to reinrbtlrseruent.
22 "(13) The Commission shall deterr►rine by
23 rule the minimum percentage under-l)ayment
24 that requires cost reimbursement under sub-
25 paragraph (A).
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1 LI\IIT.ITION.-Any fee that is not reviewed
2 by a franchising authority within :3 years after it, is
3 paid or remitted shall not be sulilec.t. to later reyieW
4 by the franc.hisinr authority under this subsection
5 and shall he decnred accepted ill filll payment by the
6 franchIsing. authority.
7 "(n) ACCESS TO PRO )RAMMING' FOR SHARED FA-
9 CIL.ITiES.-
9 "(1) PRcIMBITION.-A cable pro ,ranlmint; yell-
10 dor ill which cable operator has an attributable ro-
l l terest shall not deny it cable operator with it national
12 fianchise uncles' this section access to lq(leo program-
13 IlllllZ, Solely because such cable operator lrses a
14 lrcadend for its cable system that is also used, under
15 a shared ownership or leasin a0 yeement, as the
16 headend for another cable system.
17 "(2) DEFINITION,-The terns `cable program-
18 miry; vendor' ineans a person engaged in the produc-
19 Lion, creation, or wholesale distribution for sale of
20 video prog -amming which is primarily intended for
21 the direct receipt by cable operators for their 110-
22 transmission to cable s(lbscribers.
23 "(o) GROss REITNUES.-As used in this section:
24 "(1) IN GENERAL.-N'ubject to parag-raphs (2)
25 and (:3), the l.er-m `gross rcv allies' sueaars all consid-
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F
1 eration of and- kind or nature, including cash, ered-
2 its, property, and in-kind contributions (servINIS or
3 goods) received by the cable operator from the provi-
4 lion of cable service «-ithin the franchise area.
5 "(Z) INCLUDED ITEMS.-Sultjeet. to paragraph
6 (3), the terns `gross reveries' shall include the to]-
7 lowing:
8 "(A) all charges and fees paid by sub-
9 scribers for the prm- lion of cable service, in-
10 chiding, fees a,ttribnttrble to cable service when
11 sold indiviclualiv or as part of a package or bun-
12 (lie, or firnetionallY integrated, with services
13 other than eable service;
14 "(R) anY franchise fee imposed on the
15 eable operator that is passed on to subscribers;
16 "(C) compensation received by the cable
17 operator for promotion or exhibition of ally
18 products or services over the cable service, such
19 as on `home shopping' or similar programming;
20 "(n) revenue received hY the cable oper-
21 ator as compensation for carriage of video pro-
22 gra.rnrning or other progranrrning service on
23 that operator's eable service;
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1 "(E) all revenue derived from the cable op-
2 crat.or's (able service pursuant to corupensatiorr
3 arra,ngemrrlts for advertising; and
4 (l+) any advertising commissions pal( to
5 an affiliated third party for cable services ad-
6 vert.isirig.
7 "(:3) Exc I,ITDED iTE1IS.-The tern] `g-ross reve-
8 hues' shall not include the following:
9 "(A) any revenue not actually received,
10 even if billed, such as brad debt net of any re-
11 coveries of bad debt;
12 "(13) refirnds, rebates, credits, or discounts
13 to subsca•iber•s or a municipality to tile extent.
14 not already offset by subparagz app (A) and to
15 the extent such r•efiurd, rebate, credit, or dis-
16 count is attributable to the cable service;
17 "(C) sul~jcct to paragraph (4), any reve-
18 noes received by the cable operator or its aftili-
19 at.es from the provision of services or capabili-
20 ties other than cable service, including; tele-
21 ('orLtrlrllill('atlons seances, Internet aeeess serv-
22 ices, and services, capabilities, and applications
23 that may be sold its part of a package or bun-
24 die, or fnnct.ionally integrated, with cable sen--
25 i ec;
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"(I)) any revenues received by the cable
operator or its affiliates for the provision of di-
rectoly or Internet advertising, including yellow
pages, white pages, banner advertisement., all(]
electronic publishing;
"(E) any amounts attributable to the pro-
vision of cable service to customers at no
charge, including the provision of such service
to public Inst.itut.ions without charge;
"(F) any tax, fee, or assessment of general
applicability imposed on the customer or the
transaction by a Federal, State, or local govern-
ment or any other governmental entity, (-()I-
lected by the provider, all(] required to be rernit-
ted to the taxing entity, including sales and use
twxes and utility user tames;
"(G) any forgone revenue from the provi-
sion of cable selvice at no charge to ally person,
except, that ally forgorle reverrue exchanged for
trades, barters, services, or other items of value
shell be included in gross rcverluc;
"(II) sales of Capital assets or surplus
equipment;
`c(l) reimbursement by Programmers of
marketing costs actually incurred by the cable
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1 operator for the introduction of new pro~n-am-
2 mini;; and
3 '`(J) the sale of cable services for resale to
4 the e\-t,ent the purchaser certifies in wr'lt,lrlr;
5 that it will resell the service and pay a fi•anchise
6 fee with respect thereto.
7 "(-1) FuNCTIONALLT INTEGRATED SERVICES.-
8 In the case of a eahle service that is bundled or inte-
9 (rrat,ed functionally with caller services, mipabilitics,
10 or applicatiolls, the portion of the cable operator's
11 revenue -.itt.ributable to such other services, capabili-
12 ties, or applications shall he included in gross rev-
13 enue unless the cable operator can reasonably- iden-
14 t.ity the division or exc111sion of such revenue fi•om
15 its hooks and records that are kept in the regnilar
16 course of business.
17 "(5) AFFILIATE REVENUE.-Revenue of all af-
18 filiate shall be included in the calculation of gross
19 revenues t.o tl►e extent the treatment of such revenue
20 as revenue of the affiliate has the effect: (whether in-
21 tentional or nuiuteut.ioml) of evildirrp; the payment.
22 of franchise fees which would otherwise be paid to]-
23 c.a,ble service.
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1 "(6) AIi;FF.(,T ON OTHER LAW.-Nothing in this
2 section is intended to limit a franchising authority's
3 rights pursuant to section 622(h).
4 "(p) ADDITIONAL DEFINITION' S.-For purposes of
5 this section:
6 "(1) CABLE, OPERATOR.-The term `cable oper-
7 ator' has the meaning provided in section 602(5) ex-
8 cept that, such term also includes person or g;TOUp
9 with it national franchise under this seetrcrn.
10 "(2) FRANC'IIISE FEE.-
11 "(A) The term `franchise fee' includes any
12 fee or assessment of any kind imposed by a
13 franchising authority or other governmental cn-
14 tity on it person or group providing eahle serv-
15 ice in a franchise area under this section, or on
16 a subscriber of such person or group, or hotly,
17 solely hecause of their status as such.
18 Ili) The terra `franchise fee' does not in-
19 clude-
20 any tax, fee, or assessment or
21 general applicability (irrcludir►g arry such
22 tali, fee, or assessment imposed on both
23 utilities and a person or group providing
24 cable service in a. franchise ar•ca under this
25 seet.ion (or the services of such person or
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1 (9.0111)) but not, including a. fee or assess-
2 merit, which is unduly diserirnirlatoly
3 against such person or group or the suh-
4 scribers of such person or group);
5 "(11) illy' fee assessed under sub-
6 section (e)(2) for support of public, edu-
7 cational, and governmental use and inst.it.11-
8 tional networks (as such term is defined in
9 section 611(f));
10 lll) requirerllellts or charges under
11 subsection (f)(2) for the management of
12 public rigllt.s-of-ways, including payments
13 for bonds, security firuds, letters of credit.,
14 ills] Irance, indemnification, penalties, or
15 liquidated damages; or
16 "(iv) any fee imposed under title 17,
17 United Stirtes Code.
18 "(3) INTERNET ACCESS SERVICE.-Thc terra
19 `Internet access servic'e' means a service that enables
20 users to access content, information, electronic mail,
21 or othCl' selvlces offered over the Internet.
22 "(4) UNIT OF GENEILU, I,OCAJ, GM-ERN-
23 IME T.-The term `unit of general local government'
24 nlei111s-
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1 "(A) a county, township, city, or political
2 subdivision of a County, township, or cit31;
3 ``(I3) the District of Columbia; or
4 ``(C) the rec.ogrliied governing body of all
5 Indian tribe or Alaskan Native -611age that car-
6 lies out substantial guvernnrental duties and
7 powers.".
8 (b) 1M1'LE.IIEN'I'IN(-; REw'LATIONS.-The Federal
9 Communications Commission shall prescribe regulations
10 to implen►erlt the arrlendnrent made by subsection (a) with-
11 in 120 day's after the (late of enactment of this Act..
12 SEC. 102. DEFINITIONS.
13 Section 602 of the Communications Act, of 19:34 (47
14 U.S.C. 522) is ainended-
15 (1) in paragraph (4), In, inserting before the
16 semicolon at the end the follmm qng: or its ecluiva-
17 lent as deter'rllllled by the Commission";
18 (2) in paragraph (5)(A), by inserting "(regavd-
19 less of whether such person or group provides Such
20 service separately or conlhined with a telecommuni-
21 NA1011S Sel''lee 01' infOl-Inatlon service)" after "ovel.
22 a cable systein"; and
23 (:3) by striking paragraph (6) and inserting the
24 following:
25 "(6) the term `Cable service, nleans-
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1 "(A)(0 the one-way transmission to sub-
2 scribers of (I) video progmanlnling, or (II) other
3 programmillg service; and
4 "(ii) subscriber interaction, if arty, -which is
5 rc(111ircd for the selectloll or llse of such video
6 progl'i1111tlling or other progratrllnlllg selvlce; of
7 "(B) the transmission to subscribers of
8 video programming or other progranll imr sely-
9 we provided through wireline facilities located
10 at least in part III the public rights-of-wav,
11 without regard to delivery technology, 1w-ludiIII"
12 Internet protocol technology, except to the ex-
13 telit. that. such video progralluuing or other pro-
14 gra.nuning service is provided as hart of-
15 "(i) a commercial mobile service (as
16 such term is defined in section 332((1)); or
17 "(11) all Internet access Service (as
18 such terrll is defilled ill section 630(p)).".
19 SEC. 103. MONITORING AND REPORTING.
20 (a) REPORT ON CABLE. SEUVIC'E DEPLOYMENT.-
21 The Federal Conimmileations Commission shall, coul-
22 ntencing not later than one year after the (late of cuact-
23 merit of this Act, issue a report annually on the deploy-
24 ment of cable service. In its report, the Commission shall
25 describe in detail-
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1 (1) with respect to deployment by new c.a.hle op-
2 erators-
3 (A) the progress of deployment of such
4 service within the telephone service area of
5 cable operators, if the operator is also an in-
6 cumbent local exchange carrier, inelrrding it
7 comparison with the progress of deployment of
8 broadband services not defined as cable services
9 within such telephone service area;
10 (I3) the number of fi•anchise areas in which
11 such service is being deployed wid offered;
12 (C) where such service is not being de-
13 ployed and offered; and
14 (D) the number and locations of fi-arrchise
15 areas in which the c~rblc operator is serving only
16 a portion of the franchise area, and the extent
17 of such service within the franchise area;
18 (2) the number and locations of fi•anchise areas
19 in which a cable operator with a franchise under sec-
20 Lion 621 of the Conimmnications Act. of 1934 (47
21 U.S.C. 541) on the (late of enactment. of this Act
22 withdraws service fi•oln any portion of the franchise
23 area for which it previously offered service, and the
24 extent of such withdrawal of service within the fran-
25 chise area;
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1 (:3) the rates generally charged for cable serviee;
2 (4) the rates char-Od by overlapping, competing
3 multichannel -,,ideo programming; distributors and by
4 competing cable operators for comparable serVice or
5 ca.hle se►vi(IC;
6 (5) the average household income of those fran-
7 chlse areas or portions of franchise areas where
8 cable services is being offered, and the average
9 household incorne of those fra.nelrise areas, or por-
10 tions of franchise areas, where cable el-vice is not
11 being; offered;
12 (6) the proportion of rural households to urban
13 households, as defined Iky the Iiureall of the Census,
14 ill those franchise areas or portions of franchise
15 areas where cable service is being offered, and the
16 proportion of rural households to urban households
17 irr those franchise areas or portions of franchise
18 areas where cable service is not being; offered, nr-
19 Cludim, a. State-ley-State brea.kdow-ii of such data
20 and a comparison with the overall ratio of rural and
21 urban households ill cach State; and
22 (7) a comparison of the sen ices and rates irr
23 areas served by national franchisees under section
24 6:30 of the Communimitions Act of 19:34 (as added
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1 by section 101 of this Act.) and the services and
2 rates in other areas.
3 (1i) CABLE, 01'FRATOR RFPORTs.-The Federal Com-
4 munrcatlons Commission is authorized-
5 (1) to require cable operators to report, to t1 w
6 Commission all of the information that. the Comrnis-
7 Sion rlcecls to compile the report required hY this Sec-
8 t.ion; and
9 (2) to require. Cable operators to file t.hC Samc
10 information with the relevant francliIslnr; authorities
11 and State commissioi►s.
12 TITLE II-ENFORCEMENT OF
13 BROADBAND POLICY STATE-
14 MENT
15 SEC. 201. ENFORCEMENT OF BROADBAND POLICY STATE-
16 MENT.
17 Title VII of the. Communications Act of 19:34 (47
18 II.S.C. 601 et seg.) is amended her adding. at the end the
19 following; new section:
20 "SEC. 715. ENFORCEMENT OF BROADBAND POLICY STATE.
21 MENT.
22 "(a) AUTIIORI'ry.-The Commission shall have the
23 authoritY to enforce the Commission's broadband policy
24 statement and the principles incorporated therein.
25 "(L)) ENI OlW ..III-,NT.-
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1 "(1) IN GENEIUL.-This section shall he en-
2 forced by the Commission under titles IA' and V. 11
3 violation of the Commission's broadband policy
4 statement or the principles incorporated therein
5 shall be fiva.ted as a. Nriola.t.ion of this Act..
6 "(2) lI'M FORFEITURE PENALTY.-For
7 purposes of section 503, the rnaxinlum forfeiture
8 penalty applicable to a violation described in Para-
9 graph (1) of this subsection shall he $500,000 for
10 each Vlolatic►rl.
11 "(3) AivTTDICATORY AUTHORITY.-The CO111-
12 mission shall have exclusive authority to adjudicate
13 arty complaint alleging a. violation of the broadband
14 policy statement and the prilciples incorporated
15 therein. The Commission shall complete an adjudica-
16 tor.y proceeding under t11is subsection not later than
17 90 clays after receipt of the complaint.. It', upon com-
18 pletiorl of all adjudicatory proceeding; pursuant to
19 this section, the Commission determines that such a
20 violation has occurred, the Commission shall have
21 authority to adopt. an order to require the entity
22 subJec•.t, to the complaint to comply with the
23 broadband policy statement and the principles incor-
24 porated therein. Such authority shall be in addit,1011
25 to the authority specitied in paragraph (1) to el1-
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1 force this section under titles IV and V. In addition,
2 the Commission shall have authority to adopt proce-
3 dnres for the a(ljitdication of complaints alleging a.
4 violation of the broadband policy statement or prin-
5 ciples incorporated therein.
6 "(4) Li\IITATIUN.-Not,withst.ran(ling paragraph
7 (1), the C'onunissior►'s aut.horit;y, to enforce the
8 broadband policy statement and the principles incor-
9 porated therein does not include anthorMition for-
10 the C'ornrrtission to adopt. or implement r.nlcs or reg -
11 ulations regarding enforcement of the broadband
12 policy- statement and the principles incorporated
13 therein, with the sole exception of the authority to
14 adopt procedures for the a(ljudicat.ion of complaints,
15 as prox~ded in paragraph (:3).
16 "(e) STUDY.-Within 180 days after the (late of en-
17 acttnent of this section, the Commission shall conduct., and
18 submit to the House Committee oil Energy and Commerce
19 and the Senate Committee oil Commerce, Science, and
20 Transportation, it study regarding whether the oiJectaves
21 of the hroadhand policy statement. and the principles in-
22 corporated therein are helm;' achieved.
23 "(d) DEFIN['moy.-For purposes of this section, the
24 term `Commission's broadband polio- statement' means
25 the police statement adopted on August 5, 2005, and
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1 issued on Septenrher 2:3, 2005, In the Matters of Appro-
2 priate Framework for Broadband Access to the Internet
3 over Wireline Facilities, find other Alatters (FCC 05-151;
4 CC Docket, No. 02-:33; CV, Docket, No. 01-337; CC Dock-
5 et Nos. 95-20, 98-10; GN Docket. No. 00-185; CS Dock-
6 et No. 02-52) "
7 TITLE III-VOIP/911
S SEC. 301. EMERGENCY SERVICES; INTERCONNECTION.
9 Title VII of the Communications Act of 19:34 (47
10 U.S.C. 601 et. sect.) is fin-ther amended by adding after
11 section 715 (as added by section 201 of this Act.) the fol-
12 lowing; new sections:
13 "SEC. 716. EMERGENCY SERVICES.
14 "(a) 911 :AND E-911 SERVICES.-
15 "(1) IN (1ENI,NtAL.-Each `TOIL' service pro-
16 viler has it duty to ensure that 911 and I:-911 serv-
17 tees are provided to subscribers of VOIP services.
18 "(2) USE OF E_XISTIN(3 REGULATIONS.-A
19 VOIP service provider that complies with the Com-
20 mission's regulations requiring; proNiders of VOIP
21 service to supply 911 and E911 capabilities to their
22 customers (Report and Order in PVC Docket Nos.
23 04-36 and 05-196) and that are in effect on the
24 date of enaetnient of this section shall be considered
25 to be irr compliance with the requirements of this
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1 section, other than slrhsection (c), until such regilla-
2 t.ions are modified or superseded by subsequent rely-
3 ulat'1011s.
4 "(b) NON-DIs('R NIINATORY ACCESS TO CAPABILI
5 TIES.-
6 "(1) A('('ESS.-Eacl► incumbent local exchangre
7 carrier (as such term is defined in section 25100)
8 or government ent.itY with ownership or control of
9 the necessary E-911 infrastructure shall provide any
10 requesting; VOII' service provider Avith nondiscriln-
11 matorv access to such infrastructure. Such carrier
12 or entity shall provide access to the infi'astructure at
13 just, and reasonable, nondiscriulinatory rates, terms,
14 and conditions. Such access shill be consistent with
15 industry standards established by the National
16 Emergency Number Association or other applicable
17 industry standards organizat.iolls.
18 "(Z) ENFORCEaIENT.-'I'he C01111111ss1on or it
19 State commission maY enforce the requirements of
20 this subsection and the Commission's regulations
21 thercuuder. A VMP service provider may ohtain ac,-
22 cess to such infrastructure pursuant to section 717
23 l~v asserting the rights described in such section.
24 "(c) NEW CUSTOMERS.-A VOIP service provider
25 shall make 911 service available to new customers Nvitllin
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1 a reasonable time in accordance with the following require-
2 rrreuts:
3 "(1) CONNECTION TO SELECTIVE W ITTER.-
4 For all neiv customers not within the geographic
5 areas where a NIOIP service prolk ider can inrrnc-
6 diatelti• provide 911 service to the geogi,a,phically ap-
7 propriate PSAP, a VMP service provider, or its
8 third party vendor, shall have no more than :30 days
9 h-om the elate the VOIP provider ha.s acquired a ems-
10 toiner to order service providing coil ncrtivity to the
l l selective router so that 911 ser Vice, or E911 service
12 where the PSAP is capable of reeeiving and proc-
13
cssing s11(,11
information,
can he provided through
14
the selective
router.
15 "(2) INTERIM SERVICE.-For all new customers
16 not within the geogn-aphic areas where the VOW
17 scIIIN, provider can immediately provide 911 service
18 to the gcogra.phic.ally appropriate PSAP, a VOIP
19 service provider shall provide 911 service throrrglr-
20 "(A) a,n arrangement mutually agreed to
21 by the VOID service provider and the PSAP or
22 PSAP governing authority; or
23
"(13
) an
emergency response center with
24
national
call r
outing capabilities.
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I Such service slra.ll he prol.1ded 24 hours a day from
2 the (late a VUIP service proIlder has acquired a cus-
3 tomes until the V0I1' service proNrlder earn provide
4 911 service to the geogil aplnieally appropriate PSAP.
5 "(3) NOTICE.-Before lrrmVidin- service to 1111'
6 new customer not. wrt.hnnr the r;eog-raplrrc areas where
7 the V01P service provider can immediately provide
8 911 service to the greorra.phically appropriate PSAP,
9 a V01P service provider shall provide such customer
10 with clear notice that 911 service IN,]]] be available.
11 onl}r as described in parag=raph (2).
12 "(4) RESTRICTION ON ACQUISITION OF NEW
13 CUSTOMERS.-A VUIP service provider may not a.c-
14 quire MINN, custonners within a geographic area served
15 by a selective router if, within 180 days of first ae-
16 quiring; a new customer in the area served by the se-
17 lective router, the VOIP service provider does not
18 provide 911 service, or E911 service where the
19 PSAP is capable of receiving and processing such in-
20 formation, to the geographically appropriate PSAP
21 for. all existing customers served by the selec41111
22 router.
23 "(5) ENFORCEMENT: No FIRST wARNINCI8.-
24 Paragraph (5) of section 503(b) shall not apple to
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1 the assessment of forfeiture penalties for violations
2 of this subsection or the regulations thereunder.
3 "(d) STATE AlTTIIORITI .-V'ot.1ring in this Act or any
4 Commission regulation or order shall prevent the imposi-
5 tion on or collec.t.ion from a. VOIP sem"Ice provider, of any
6 fee or charge specifically designated or presented as dedi-
7 ca.ted by a State, political subdivision thereof, or Indian
8 tribe on an equitable, and non-discrinunator;y basis for the
9 support of 911 and E-911 services if no portion of the
10 revenue derived from such fire or charge is obligated or
11 expended for any purpose other than support of 911 and
12 E-911 services or enhancements of such services.
13 "(e.) FI.nsIRILITY.-Ire establishing requiremctrt.s or-
14 obligations under subsections (a) and (h), the Commission
15 shall ensure that such standards impose requIrernerrts or
16 obligations on VOID service providers and entities with
17 ownership or control of necessan, E-911 infrastructure
18 that the Commission determines are technologically and
19 operationally feasible. In determining- the requirements
20 and obligations that, are technologically and operationally
21 feasible, the Commission shall talus into cousideratirnr
22 available industvv technological and operational standards.
23 "(f) PROGRESS REPORTS.-To the extent that the
24 Commission concludes that it is not technologically or
25 operationally feasible for VOIP service providers to comply
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I «ith E-911 requirements or obligations, then the Coln-
2 mission shell sulrrnit reports to the Committee on h:nergy
3 a.nd Commerce of the House of Representatives and the
4 Committee on Commerce, Science, and Transportation of
5 the Senate oil the progress in attaining and deploying E-
6 911 service. Such reports shall be submitted semiamnia.lly
7 until the Commission concludes that it is technologically
8 and operationallY feasible for all VOW service providers
9 to comply with E-911 requirement's and obli atlolls. Slrch
10 reports may include any recommendations the Commission
11 considers appropriate to encourage the migration of emer-
12 gency, services to TCP/IP protocol or other advanced serv-
13 ices.
14 "(g) ACCESS TO INFORMATION.-The Commission
15 shall have the anthority to compile a list of PSAP contact
16 information, testing procedures, and classes and types of
17 services supported by PSAPs, or other information c0n-
18 cer•nino; the necessa,ly E-911 infrastructure, for the pur-
19 pose of assisting providers in complying Nvith the require-
20 ments of this section.
21 "(I►) Ei,,IEI?(,ENcy Ro TINc. NumliEii AmIINIS-
22 T LvTc>R.-Within ,30 days after the date of enactlnent of
23 this section, the Federal Communications Commission
24 shall establish an emergency routing number adminis-
25 trat.or to canaille VOIP service providers to accluircI non-
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1 dia.lahle pseudo-automatle llumher identification numbers
2 for 9-1-1 routing purposes on a national seale. The Corn-
3 mission maY adopt such miles and practices its are nec-
4 essar;y to guide such administrator in the fair and espedi-
5 tious assignment of these nnnlhers.
6 "(1) EMERGENCY RESPO SE SYSTEAiS.-
7 "(1) NOTICE. PRIOR TO INSTALLATION OR NVAI-
8 PER ACTIVATION OF VOID SERVICE.-I'riol• to 1118till-
9 lation or number act.ivat.ion of V01P service for a
10 cllstonler, a. VOW service provider shall provide
11 clear and conspicuous notice to the customer that-
12 "(A) sued customer should arrange with
13 Ills or her emel•gcncv response system provider,
14 if any, to test such svst(.nl after installation;
15 "(R) siich customer should not.ifv his or
16 leer emergency response system provider after.
17 VOIP seme.e is installed; and
18 `(C) a hattery backup is reduircd fir cus-
19 tourer premises equipment installed ill rouuec-
20 tion with the VOIP service ill order for the sig-
21 11,111 g). of such systcill to hlllct.loll ill t,lle event.
22 of a power outage.
23 "(2) DEFINITION.-In this subsection:
24 "(A) The term `emergency response sys-
25 tern' means an alarm or security system, or per-
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1 sonal security or medical Illonito ling; system,
2 that is connected to an emergency response cen-
3 ter by means of a telecommunications carrier oI•
4 VOW service provider.
5 "(13) The term `emergency response ecnter'
6 means an entity that monitors transrnlsslonS
7 from an emergeneir response system.
8 "(j) MIGRATION TO IP-ENABLED E-MERc,ENC'Y NET-
9 wmm.-
10 "(1) NATIONAL, REPORT.-No more than 18
11 months after the (late of the enactment of this sec-
12 Lion, the National 911 Implementation and Coordi-
13 nation Office shall develop it report. to Congress oil
14 rnify°atim) to a national IP-enabled cnleru;cncjr uet-
15 work capable of receiving and responding; to all eit-
16 Izen activated emergencY co11 municatiolls.
17 "(2) CONTENTS OF REPORT.-The report. re-
18 quired hl• paragraph (1) shall-
19 "(A) outline the potential benefits of such
20 it migration;
21 "(B) identify barriers that. roust. he over-
22 come and funding; mecllanisuls to address those
23 barriers;
24 "(C) include a proposed timetable, an out-
25 line of costs and potential saving's;
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1 "(D) provide recommendat.iolis on specific
2 legislative langniage;
3 "(E) provide recomrnendatior►s on any leg-
4 islative changes, including; updating; definitions,
5 to facilitate a national IP-enabled erllcl- ency
6 network; and
7 "(P) assess, collect, and analyze the e.\-he-
8 riences of the I ''Al's and related lnlblic safety
9 authorities who are conducting trial deploy-
10 ments of IP-enalaled emcl-geney networks as of
11 the date of enactment of this section.
12 "(3) C O'NSULTA,rii~N.-In developing;, the report
13 required by paragraph (1), the Office shrill milslalt
14 mth representatives of the public safety community,
15 technology and telecommunications providers, and
16 others it deems appropriate.
17 "(k) IMPLEMENTATION.-
18 "(1) DEADLIER..-The Commission shall pre-
19 scribe regulations to implement this section within
20 120 days after the date of enactment of this section.
21 "(2) LIMITATION.-Nothing; in this secl.ion
22 shall he corlstrued to permit the Commission to issue
23 regulations that require or impose a specific teeh-
24 nolop, or technological standard.
25 "(1) DEFINITIONS.-For purposes of this section:
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"(1) VOIP sFI?-m-'E.-Tlw term `VOII' semlee'
means a service that-
"(A) provides real-time 2-way' voice com-
munleatlons transmitted through customer
premises equipment using; TCP/IP protocol, or
a successor protocol (including AN-hell the Vol(,,(,
communication is converted to or from T('P/IP
protocol 1)), the VOII' service provider and
transmitted to the subscriber. without use of cir-
cuit switching), for a fee;
"(13) is offered to the public, or such class-
es of users as to be effeetively available to the
public (whether part of a brindle of services or
separately); and
``((I) has the capability so that the serxiee
can originate t-rattle to, and terminate traffic
from, the public mVitchcd telephone network.
"(Z) VOIP SERVICE,, PROVIDER.-The term
`VOII' service provider' meads any person who pro-
vides or offers to provide a VOIP service.
"(:3) NEC.'ESSARl E-911 I\FILV TRtTCTURE.-
The term `ncc.essary E-911 infrastructure' means
the selective routers, selective router databases,
automatic location information databases, master
street address gmides, trunk lines between selective
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1 routers and PSAPs, trunk lines between aut.rnuat.ic
2 location information databases and PSAPs, and
3 other 911 and E-911 equipment, facilities, data-
4 bases, interfaces, and related capabilities specified
5 by the CoIIIII11SS1011.
6 "(4) NUN-DLILARLE PSET'DU-Ai?TU.ILATI(' NI T11-
7 BER IDENTIFICATION XT-M 3EIt..-The terns `non-
8 dialable pseudo-automatic number identification
9 ininiher' nivans a. slumber, consisting of the same
10 number of digits as numbers used for automatic
11 number identification, that is not a. North American
12 Numbering Plan telephone directori• number and
13 that, clay he used III place. of an antorliatie mnuber
14 identification number to com(;y special Inealli110.
15 The special meaning assigned to the non-dialable
16 pseudo-automatic number identification nurnber is
17 determined by rrationa.lly standard ag-recruents, or IIy
18 individual agreements, as neeessall', between the
19 system originating; the call, intermediate systems
20 handling and routing the call, and the destination
21 system.
22 "SEC. 717. RIGHTS AND OBLIGATIONS OF VOIP SERVICE
23 PROVIDERS.
24 "(a) IN GI:NERAL.-
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I "(1) FACILITIES-LASED v(IIP SFIMCF. P110-
2 ~'IDERS.-~1 facilities-based Vol]" service pro-6(ler
3 shall have the same 1•ights, duties, and obligati
4 a requesting telecollltill 11ications cat'I-lel- Under See-
5 tions 251 and 252, if the provider eleet.s to assert.
6 such rights.
7 "(2) VOIP SERVICE PROVIDERS.-A VOID sely-
8 ice provider that is not it faeilities-based VOII' sely-
9 ice provider shall have only tile salne rights, duties,
10 and obllgatioils as a requesting
11 carrier under sections 251(b), 251(e), and 252, if
12 the provider elects to assert such rights.
13 "(3) tyLARIFYI\G THE MME\T OF N'OIP SERV-
14 teleeol►111R1 licationS cal'1-1e1' lllav Ilse, inter-
15 connection, services, and network elements ohtained
16 pursuant to sections 251 anti 252 from an MC1111l-
17 help local exehallge carrier (as Snell terlll is detllled
18 in section 25100) to exchange VOID service traffic
19 with such incumbent local exchange carrier rega.rd-
20 less of the provider originating such VOIP service
21 traffic., including an affiliate of such t.eleeolllilium-
22 cations carrier.
23 "(h) DIS,\,m,ED Access.-A VOIP service provider
24 or a manufacturer of VOIP service equipment shall have
25 the same rights, duties, and obligations as a teleconlulllrll-
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I cations carrier or tviecolull11111leations equipment 111allllfac-
2 direr, respectively, under sections 225, 55, and 710 of
3 the Act.. Within I Year after the date of enactment of this
4 Act., the (lom mission, ill consultation with the Architee-
5 tural and 'rransporta.tion Rarrier;s Compliance Board,
6 shall prescribe such regulations as are necessary to 1111ple-
7 merit this section. III implementing this subsection, tile
8 Commission shall consider whet.hcr it VOII' scrvicc pr•0-
9 N ider or m,nnlfacturer of VOIP service equipment. pm-
10 marily markets such service or ecluiptnent as it substitute
11 for telecommllrlieations service, telecommunications eclnip-
12 merit, customer premises equipment, or telecominuill-
13 cations relay services.
14 "(c) DEFINTTIU\S.-For purposes of this section:
15 "(I) FACILITIES-BASF. VOID SERVICE I'Hc-
16 VIDER.-The term `facilities-based VOII' servicx1
17 provider' means all entity that provides VOII' serv-
18 ice over a. physical facility that tvi-minates at the end
19 user's location and which such entity or an affiliate
20 omis or over which such entity or affiliate has esclu-
21 sive use. An ent.1ty or affiliate shall be Considered a
22 facilities-hosed N'OII' Setvic•e provider ollly ill those
23 geo~mtphic. areas «vlrere such terminating physical
24 facilities are located.
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1 "(2) VOII' tSEKVICE I W I'II)ER; A'OII' SEIWICE.-
2 The terms T011' scillice pro-6der' and T011' serv-
3 ice' have the mearlulgs given such terms by section
4 7160).".
5 TITLE IV-MUNICIPAL
6 PROVISION OF SERVICES
7 SEC. 401. GOVERNMENT AUTHORITY TO PROVIDE SERV-
8 ICES.
9 (a) IN CIENEIHAL.-Neither the Communications Act
10 of 19:34 nor any State statute, reglrlation, or other State
11 legal requirement may prohibit or have the effect of pro-
12 hibiting any public provider of telecommunications service,
13 information servicv, or ea.ble servicv (as such te'r'ms are
14 defined in sections 3 and 602 of sueh Act.) from providing
15 such services to anY person or entity.
16 (b) ('()TA ETITIC)N NET'T]iAL,I ry.-Anv State or polit-
17 ical subdivision thereof', or anN' <lgency, authority, or rlr-
18 st.r umentality of it State or political subdivision thereof,
19 that is, owns, controls, or is otherwise affiliated with a
20 public provider of telecommunications service, information
21 service, or cable service shall not grant, any preference or
22 advantage to any such provider. Slleh entity shall apply
23 its ordinances, rules, and policies, including those rela.tirlg
24 to the use of puhlic rights-of-way, permitting, performance
25 bonding, and reporting without discrlininatlon in favor of
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1 any such provider as compared to other providers of such
2 services.
3 (c) ('01113LI.1NCE Wrm OTHER Ems NOT AF-
4 FEC'TED.-Nothing; in this section shall exempt, a public
5 provider from any law or regnilatlon that, applies to pro-
6 viders of telecommunications servIlve, Information service,
7 or cable service.
8 (d) RE130RT.-Not later than 1 year after the date
9 of the enactment, of this Act., the Federal C'ommunicatiorls
10 Cunlnlission shall submit to the Congress a report on the
11 status of the provision of tele,(.oi11111ui11Ccltlolls service, Irl-
12 formation service, and cable service by States 'and political
13 subdINIsions thereof.
14 (c) DEFINITION OF PUBLIC YROVIDEH.-For pur-
15 poses of this section, the term "public provider" means
16 it State or political subdivision thereof, or any agencY, au-
17 thority, or instri mentality of it State or political subdi-%q-
18 sign thereof, that provides telcco)11111uI11cations selvice, III-
19 formation service, or va.ble service, or anv e'nt'ity that is
20 mvmed, controlled, or is otherwise affiliated with swell
21 State or political subdiN ision t.hcrcot, or agency, authority,
22 or instrunlentrrlI y of it State or politicaI subdivision there-
23 of.
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1 TITLE V-BROADBAND SERVICE
2 SEC. 501. STAND-ALONE BROADBAND SERVICE.
3 Title V11 of the. Communications Act, of 1934 (47
4 U.S.C. 601 et seq.) is frnrther amended by adding; after
5 section 717 (as added by section :301 of this Act) the fol-
io lowin" new section:
7 "SEC. 718. STAND-ALONE BROADBAND SERVICE.
8 "(a) PROIIII3ITION.-A broadband scrviec proxider
9 shall not require a subscriber, as a condition on tile pur-
10 chase of a.nv broadband service the provider offers, to 1mr-
11 chase any cable service, telecommunications service, 01.
12 NIMP service offered by the provider.
13 "(b) DF., INITI N,~.-In this section:
14 "(1) The term 'broadhand service' means a. tzvo-
15 way transmission service that connects to the Inter-
16 net and transmits information at all average rate of
17 at least 200 kilobits per second in at least one direc-
t R t.ioll
19 "(2) The terra 'broadband service provider'
20 means a person or entity that controls, operates, or
21 resells and controls any facility used to provide
22 hroadhand service. to the puhlic, by whatever tech-
23 nology and whether provided for a fee, in exchange
24 for an explicit benefit, or for free.
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1 "(:3) The term `VOIP sets-ic.e' has the mea.nill"
2 (;iver► such term by section 71 fi(j)."
3 SEC. 502. STUDY OF INTERFERENCE POTENTIAL OF
4 BROADBAND OVER POWER LINE SYSTEMS.
5 within 90 days after the date of cnactlllent. of this
6 Act, the Federal Communications Commission shall coil-
7 duct, and submit to the Committee on Eiieroy and C0111-
8 nlerce of the House of Representatives and the Committee
9 oil Commerce, Science, and Transportation of tile sellate,
10 a study of the interference potential of broadband over
I I power line systems.
12 TITLE VI-SEAMLESS MOBILITY
13 SEC. 601. DEVELOPMENT OF SEAMLESS MOBILITY.
14 (a) STIZEANILINED 14,V1EW.-
15 (1) The Commission shall fiiiflier the develop-
16 meat of seamless I110blllty.
17 (2) Within 120 days after the date of' enact-
1$ mcnt of this Act, the Commission shall implement a
19 process for streandItied review and authorization of
20 multi-mode devices that permit, coill Milli lea ti oil
21 across multiple Internet protocol-enabled hroadhand
22 platforms, facilities, and networks.
23 (h) STt'DY.-The Commission shall undertake all in-
24 cluil;v to identify harriers to the achievement of seamless
25 uulhility. Within 180 days after the date of enactanent, of
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1 this Act, the Commission shall report. to the Congress on
2 its findings and its recommendations for steps to eliminate
3 those barriers.
4 (C I EWINITION .-For purposes of this section, the
5 tern) "sea►nleas mohility" means the ability of a comnnr-
6 n1mit.ions device to select. between and utilize multiple
7 Internet. protocol-enabled technoloky platforms, facilities,
$ and networks in a real-time manner to provide a. unified
9 scl-N-ice.
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