BILL ANALYSIS                                                                                                                                                                                                              1
          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            MARTHA M. ESCUTIA, CHAIRWOMAN
          

          AB 2987 -  Nunez/Levine                           Hearing Date:   
          June 29, 2006                   A
          As Amended:         June 22, 2006            FISCAL       B

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                                      DESCRIPTION
           
           Current law  authorizes local governments to grant franchises to  
          provide cable television service.  In awarding a franchise the  
          local government must assure that access to cable service is not  
          denied to any group of customers because of their income.   
          Franchise fees may not exceed 5% of gross revenues.  The local  
          franchising authority may require the franchisee to provide  
          channel capacity for public, educational, or governmental (PEG)  
          use.

           Current law  requires any competitor to an existing cable  
          operator to provide service to the same entire area as that  
          operator.

           This bill  establishes a framework for a state franchise to  
          provide video service issued by the Secretary of State.  Video  
          service is broadly defined to include cable service as well as  
          any other cable-like service delivered using the public right of  
          way, such as AT&T's internet protocol service.  The franchise  
          provides the holder with the same rights to install and maintain  
          the video network as the telephone companies. The state  
          franchise authorizes a franchise fee of up to 5%, payable  
          directly to the local government where service is provided and  
          gives local government control over the installation of the  
          video network under the same terms as telephone corporations.   
          Local government is also given authority to enforce customer  
          service standards.

           This bill  prohibits discrimination in the provision of video  
          service and establishes a specific standard for satisfying that  











          prohibition.  This bill also establishes specific obligations  
          for building out the video systems by the largest telephone  
          companies.  Reports on the progress toward meeting these  
          requirements must be provided annually two years after the  
          franchise is granted.  Waivers from these requirements can be  
          given by the franchising authority under specified conditions  
          after public hearings.  The larger franchisees must provide  
          annual reports on jobs and employment.

           This bill  requires a franchisee to provide for the same number  
          of PEG channels as the incumbent cable operator.  Additional PEG  
          channels are required if there is a demonstrated need.  Local  
          governments are authorized to establish a fee to support the  
          capital cost of PEG channels and to support institutional  
          network facilities.







































                                      BACKGROUND
           
          The market for television service is dominated by cable.  In  
          California, 63% of households with televisions get their TV from  
          cable, 27% from satellite, and the remainder over the air.

          Advances in technology are making additional competition  
          possible in the television business.  The industry has evolved  
          from over-the-air broadcast stations to cable-based networks to  
          satellite-based systems.  Now telephone companies are able to  
          turbocharge their telephone infrastructure to provide cable-like  
          services.

          Telephone company entry into cable markets should be welcomed as  
          a way to help lower prices, improve service quality, and spur  
          innovation.  Nothing in current law bars telephone companies  
          from offering cable service.  To do so they must go through the  
          same process for obtaining a local franchise as the cable  
          operator.  Indeed, Verizon has done so in six California cities.  
           But Verizon and AT&T have argued that the local franchising  
          process is slow and the requirement that the new franchisee must  
          build to the same geographic area as the incumbent cable  
          operator is expensive.  They argue that revising existing cable  
          franchising laws is a necessary inducement for them to invest in  
          and compete for cable customers.  And this raises the classic  
          public policy question of how to create a level playing field  
          between competitors, the subject of this bill.

          California has two of the top 10 television markets in the  
          country, and four of the top 26<1>.  With the sixth highest  
          broadband penetration rate of all the states at 28.4%<2> and 34  
          million residents, California is an attractive market for video  
          and broadband services.

                                       COMMENTS
           
           It's Not Just TV  -- More competition for cable services should  
          be welcomed, if not encouraged.  But this bill is not just about  
          TV.  That's because these new video networks will also provide  
          ---------------------------
          <1> Nielsen Media Research  
          (http://www.nielsenmedia.com/DMAs.html)
          <2> Leichtman Research Group, "New England and Far West Lead in  
          Broadband Penetration", July 7, 2004 republished at  
          (http://www.websiteoptimization.com/bw/0407/)









          extremely fast Internet service.  The leap from dial-up Internet  
          access to broadband created vast economic opportunities that  
          were seized upon by iconic California companies such as Google,  
          Yahoo, and eBay.  These new video networks can expand the  
          availability of broadband to more parts of the state and  
          materially increase download speeds to create even more economic  
          opportunities.  And as the telecommunications companies market  
          the bundle of telephone, video, and high speed internet,  
          broadband penetration rates should rise.

           No Price Wars  -- One would expect competition to lower cable  
          rates, but statements by officers of the major  
          telecommunications companies indicate something a bit different.  
           Rather than get into price wars over basic cable service, the  
          telecommunications companies instead intend to market bundles of  
          service (e.g. telephone, video, high-speed internet, and perhaps  
          even cellular service) and offer discounts on the bundle.   
          Advocates for this bill have suggested savings to customers  
          which are not reflective of the actual market strategies  
          announced by company officers.

           Double Referral  -- This bill has been double-referred to the  
          Senate Rules Committee.































           Questions of Interest to the Committee
           
           1.State- or Locally-issued Franchise/Tax or Fee?  -- The first  
            question posed by this bill is whether a state franchising  
            process should replace the existing local franchising process.  
             The author argues that the local franchising process is  
            protracted and expensive, giving local governments an ability  
            to leverage the potential franchisee with costly new  
            obligations.  Technological advance has created a new, more  
            competitive world where franchising should be simplified and  
            streamlined.  Local governments argue that the local  
            franchising process works fine.  They note that some cities  
            have offered the telephone companies an expedited franchise if  
            they are willing to adopt the identical franchise as the  
            incumbent cable operator.  And if the local franchising  
            process is protracted or expensive, the state could simply  
            constrain the local government by requiring timely processing  
            and restricting their ability to extract concessions,  
            eliminating the need for establishing a state bureaucracy.

            Cities argue that the bill triggers local elections under  
            Proposition 218 because the franchise fee is tied to the act  
            of granting the franchise.  While the franchise is granted by  
            the state the franchise fee is imposed locally.  If there is  
            no nexus, the imposition of the local franchise fee could be  
            considered a tax subject to voter approval.  The Senate Local  
            Government Committee staff concurs with this analysis and has  
            recommended a fix, which is to impose the franchise fee at the  
            state level.   The author and committee may wish to consider   
            such an amendment.

           2.Gross Revenues/Right of Way/Local Utility Taxes  -- Though they  
            have many concerns, three additional issues are at the core of  
            local government's opposition: the definition of gross  
            revenues, local control over the right of way, and preserving  
            their ability to impose local utility taxes.

            The gross revenue definition has importance because it is the  
            base upon which the franchise fee is levied.  Fully two and  
            one-half pages of the bill are devoted to defining what is and  
            what is not included in that definition.  The authors have  
            tried to be as inclusive as possible but because the  
            definition varies among local franchising authorities it has  
            been difficult to settle on a definition which does result in  










            less revenue for any city.  This is not a question of a level  
            playing field as all video franchisees will abide by the same  
            definition.  Moreover, additional revenue will accrue to the  
            city if Verizon and AT&T are successful at luring  
            non-franchise fee-paying satellite TV customers onto their  
            franchise fee-paying video services.  

            Local governments are concerned that the bill limits their  
            ability to control access to the public right of way, a  
            critical issue because the new video-capable telecommunication  
            networks require installation of large refrigerator-sized  
            boxes every couple hundred homes.  There is an argument that  
            the bill could be construed to allow for a telecommunications  
            company to not pay the franchise fee.  This is not the intent  
            of the author, and  the author and committee may wish to  
            consider  making a technical fix to resolve this issue.  The  
            concern that the bill limits the imposition of local utility  
            taxes appears unfounded.  The bill specifically says that it  
            does not limit a local entity's ability to impose utility user  
            taxes (beginning on page 12, line 30).

           3.Franchising Authority  -- No state agency has volunteered to be  
            responsible for administering the state franchising process.   
            This bill has at various times assigned those duties to the  
            Department of Corporations, Department of Consumer Affairs,  
            and the Secretary of State.  There is no perfect fit in state  
            government, but the closest fit is the California Public  
            Utilities Commission (CPUC).  The CPUC already has regulatory  
            authority over telecommunications companies as well as the  
            telephone operations of cable companies.  It is the only state  
            agency with an understanding of telecommunications markets and  
            has for several years analyzed broadband markets, issuing  
            reports on broadband deployment.  And it regularly conducts  
            public hearings, takes testimony, and examines evidence.   
            Concerns have been raised about the CPUC's faithfulness to the  
            law, given their remoteness from Sacramento.  This concern can  
            be at least partially addressed through regular Legislative  
            oversight.   The author and committee may wish to consider   
            making the state franchising authority the CPUC.

           4.Non-discrimination/Build-out Commitments/Technology  -- Under a  
            typical local franchise, the cable company must build out  
            virtually the entire local community using its best  
            technology.  (Los Angeles is an exception, having divided  










            itself up into 14 non-overlapping franchise areas.)  Many  
            argue that if the level playing field principle is to apply,  
            telecommunications companies should have that same obligation.  
             

            Requiring a complete build out of an entire city, much less  
            the telecommunications company's entire telephone foot print,  
            is probably an unfair burden due both to the engineering/cost  
            constraints and to the differing circumstances.   
            Telecommunications companies wish to build their cable  
            networks in a sort of overlay to their existing telephone  
            network.  The telephone networks consist of linked computer  
            sites.  From each site telephone lines branch out into  
            neighborhoods like tree branches.  These branches are designed  
            for engineering efficiency and therefore do not coincide with  
            political boundaries.  This contrasts with cable networks  
            which, because they are locally franchised, were designed and  
            built to coincide with the local franchisor's political  
            boundaries.  

            And it is fair to account for the differing circumstances  
            between the incumbent cable operator and the  
            telecommunications company.  When the incumbent sought the  
            franchise there was no competition.  Today the  
            telecommunications company competes against the incumbent  
            cable operator and satellite providers.  This competition  
            means that financial success is less assured for the  
            telecommunications companies, though they do have the  
            considerable advantage of starting with an existing telephone  
            network and nearly 100% market share for telephone service.

            This does not mean that there should not be any buildout  
            requirement.  California has an interest in promoting the  
            widest possible availability of these services so that the  
            greatest possible number of customers may benefit.  The  
            authors have negotiated buildout commitments from each of the  
            two largest telecommunications companies.  Those commitments,  
            25% of customers offered video service within 2 years, and 40%  
            within 5 years for Verizon, and 35% within 3 years and 50%  
            within 5 years for AT&T, reflect the different technology and  
            installation hurdles faced by each company.  While well short  
            of 100%, these requirements are far more than either company  
            has agreed to in any other state.  











            The same can be said for the anti-discrimination language.   
            While discrimination in the offering of video service is  
            barred, the law is difficult to enforce without numerical  
            targets.  This bill again goes beyond other state and federal  
            franchising bills by establishing a specific test for ensuring  
            that discrimination is not occurring.  That test, which is  
            that within three years at least 25% of the households being  
            offered video service are low income, and 30% within five  
            years, is measurable and enforceable.

            While the authors expect the companies to live up to these  
            requirements, they are not absolute.  After two years the  
            telecommunications company can seek a waiver of any of these  
            anti-discrimination and buildout requirements.  The waiver can  
            be granted if the franchising authority finds that the company  
            has made substantial and continuous effort to meet the  
            requirements.  While some flexibility is reasonable, allowing  
            a waiver after just two years sends the signal that the  
            requirements aren't serious.  Surely Fortune 500 companies can  
            make commitments of longer than 2 years.   The authors and  
            committee may wish to consider  allowing for the seeking of the  
            waiver only after the companies have met their 2- and 3-year  
            buildout requirements.

            The second escape hatch is that the five year buildout  
            requirement, 40% for Verizon and 50% for AT&T, does not apply  
            until two years after at least 30% of households with access  
            to their video service subscribe for at least six months.   
            This is an automatic escape hatch not subject to franchising  
            authority review.  While some flexibility for a lack of  
            financial success may be reasonable, this metric is hard to  
            measure and appears to be so high that it may well be  
            unattainable.   The authors and committee may wish to consider   
            crafting a more reasonable success-based waiver.
           
            Cable companies are required to provide their most capable  
            technology to all of their customers.  Under this bill, AT&T  
            would be permitted to meet its buildout and  
            anti-discrimination obligations using its satellite-based  
            product.  This mixes apples and oranges because their  
            satellite-based product can be offered without a franchise and  
            is not subject to franchise fees.  It is not the subject of  
            this bill. That product is also not a new video competitor  
            because it relies on a satellite service which is currently  










            available.  And the product does not result in the degree of  
            new jobs and investment as their fiber-based product.  AT&T  
            has said that the satellite-based product is an interim  
            product that will be replaced with their fiber-based product.   
            While the satellite-based product is a fine product, it is  
            clearly not as good.   The authors and committee may wish to  
            consider  amending the bill so that only AT&T's best product  
            counts towards meeting its anti-discrimination and buildout  
            obligations.

           5.Cross-subsidy prohibition  -- Competition is unfair if one  
            competitor can use the profits of a relatively uncompetitive  
            business to subsidize its entry into a relatively competitive  
            business.  This anti-competitive behavior hurts customers  
            because it creates an unlevel playing field, making it more  
            likely that competition will be neither robust nor durable.   
            Most telecommunications markets are competitive, though less  
            so after the mergers of AT&T/SBC and MCI/Verizon.  Competition  
            keeps a lid on rate increases and so provides a check against  
            anti-competitive cross subsidy.  But the market for basic  
            residential telephone service is not very competitive.  While  
            there is some substitution of cellular service for basic  
            residential service, and there are a few competitors, such as  
            Cox Cable, by and large there is little competition.  Indeed  
            for residential service, AT&T and Verizon, the two largest  
            telephone companies in the country, don't compete with each  
            other.  And the effect of cross-subsidization could be huge.   
            With just a $1 increase in basic telephone service rates, AT&T  
            would raise roughly $100 million annually, fully 30% of what  
            AT&T is going to invest in California to provide video service  
            over the next three years, creating a considerable competitive  
            advantage.

            Ensuring there is no cross-subsidization could be accomplished  
            with a rigorous and continuous examination of the revenues and  
            expenses of the telephone companies.  But the CPUC no longer  
            has the capacity or inclination to do such work.  A simpler,  
            though less precise, mechanism is to simply cap basic  
            telephone rates.  This is the mechanism used by the CPUC since  
            the late 1980's to assure that rates for non-competitive  
            services were reasonable and that cross-subsidies did not  
            grow.   The authors and committee may wish to consider  capping  
            basic telephone service rates at current levels for a period  
            of time as a means of ensuring that cross-subsidization does  










            not occur.

           6.Opt in/Abrogation  -- Cable companies argue that it is unfair  
            for telecommunication companies providing cable-like service  
            to operate under a different regulatory scheme.  A level  
            playing field requires that when telecommunication companies  
            are permitted to operate under a state franchise, so too  
            should the cable companies, they contend.  Opponents argue  
            that a deal is a deal.  Cable companies agreed to a local  
            franchise; it would be unfair to let them out of those  
            voluntary agreements.

            While local franchises are voluntary agreements, it seems  
            unfair to impose different rules on similarly situated  
            companies.  Local franchise agreements were negotiated before  
            the telecommunications companies became a significant  
            competitive threat.  The formidable threat of Verizon or AT&T  
            surely changes the landscape upon which the original franchise  
            was based.   The authors and committee may wish to consider   
            allowing cable operators to seek a state franchise, and upon  
            receipt abrogate their existing local franchise, once the  
            competitive threat of Verizon or AT&T is imminent.  However, a  
            consequence of shifting to a state franchise is that the local  
            franchise requirement to offer service is no longer operative.  
             In extreme circumstances this could lead to a cable operator  
            discontinuing the offering of service to "unprofitable"  
            neighborhoods.   The authors and committee may also wish to  
            consider  making any discontinuance of the offering of service  
            subject to prior approval by the franchising authority.

           7.Privacy  -- The major telecommunications companies have  
            admitted to sharing customer information with federal  
            authorities without a warrant, raising privacy concerns.   
            Heightening those concerns are very recent press reports that  
            AT&T will keep track of their video customers' viewing habits  
            and that those customer records are business records owned by  
            AT&T.  

            California law bars cable companies from providing any person  
            with any individually identifiable information regarding its  
            subscribers, including television viewing habits, without the  
            subscriber's express written consent.  Cable companies may  
            only retain subscriber information to the extent reasonably  
            necessary for billing purposes and other business practices.   










            A cable company may compile and distribute a list containing  
            the names and addresses of its subscribers if the list  
            contains no other individually identifiable information and if  
            subscribers are afforded the right to  opt out  . Cable companies  
            may not make individual subscriber information available to  
            government agencies in the absence of legal compulsion.   
            (Section 637.5 of the Penal Code) At a minimum, to establish a  
            level playing field, as well as to protect video customer  
            privacy rights,  the authors and committee may wish to consider   
            making any holder of a state video franchise subject to  
            existing cable television privacy laws.  There may be  
            additional privacy issues regarding whether opt-out or opt-in  
            is the more appropriate default and whether more stringent  
            federal law dealing with the collection of data applies to  
            cable companies but not telephone companies providing video  
            service.

           8.Customer service standards  -- California established minimum  
            state-wide cable customer service standards more than ten  
            years ago.  This bill makes those state standards, as well as  
            existing federal standards, a part of the state franchise. The  
            penalties for a material breech of those standards are low,  
            having been capped in the original statute and never updated.   
            For example, the maximum penalty for a material breech is  
            $200/day, hardly enough to be a deterrent.   The authors and  
            committee may wish to consider  updating the penalties to a  
                                           meaningful amount and to eliminate the local authority to  
            establish lower penalties.

           9.Public, Educational and Governmental Access/Institutional  
            Networks  -- Federal law authorizes cable franchisors to  
            require channel capacity to be set aside for PEG use.  While  
            federal law does not define PEG use, the legislative history  
            suggests that PEG channels were intended to be "the video  
            equivalent of the speaker's soapbox or the electronic parallel  
            to the printed leaflet.  They provide groups and individuals  
            who generally have not had access to the electronic media with  
            the opportunity to become sources of information in the  
            electronic marketplace of ideas.  PEG channels also contribute  
            to an informed citizenry by bringing local schools into the  














            home and by showing the public local government at work."<3> 

            Federal law also authorizes additional fees to pay for the  
            capital cost of supporting PEG activities.  Some local  
            franchisors have negotiated for institutional communications  
            networks (I-net) as part of the franchise negotiations.  This  
            bill establishes a minimum number of PEG channels for the  
            state franchisees equivalent to the number of PEG channels  
            carried by the incumbent cable operator.  If the cable  
            operator has no PEG channels then the local government can  
            request up to three.  This bill also permits local entities to  
            establish an additional fee of up to 1% to fund PEG capital  
            costs.

            Local governments raise concerns that the bill will reduce PEG  
            funding and I-net support.  In some cases this is true.  While  
            many cities impose no additional PEG funding, some cities do  
            at a level greater than 1%.  Other take-aways occur if cable  
            operators are allowed to abrogate their local franchises.  
            Local governments have been creative in negotiating for  
            PEG/I-net services.   But once the local franchises lapse,  
            either through abrogation or the lapse of the term, this bill  
            does not provide local government with any room to negotiate  
            to keep their deals.  

            This bill also does not provide for minimum funding of PEG  
            capital costs.  The bill does require the state franchisee to  
            set aside a channel for state public affairs programming.

            This bill does create a level playing field with regard to the  
            PEG obligation because the same obligation applies to every  
            franchisee.  The unresolved questions are whether the state  
            should establish a minimum level of PEG funding, whether  
            existing PEG/I-net obligations of cable operators should  
            remain through the end of the local franchise irrespective of  
            abrogation, and whether local governments and video/cable  
            operators should be permitted to negotiate their PEG/I-net  
            agreements.

           10.                                Bonding  -- Because the grant  
            of a franchise authorizes the cable company to construct in  
          ---------------------------
          <3> H.R. Rep. No.98-934, at 30 (1984), reprinted in  
           Telecommunications: The Governmental Role in Managing the  
          Connected Community  by Paul Valle-Riestra (2002), p.183.)









            the public right of way, local governments have typically  
            required the cable company to post a bond to ensure that the  
            construction is done safely and completely, and that plant is  
            not abandoned.   The authors and committee may wish to consider   
            whether to require the state franchising authority to develop  
            similar bonding requirements.

           11.                                Peace, at Last?  -- Cable  
            franchising reform is the subject of federal legislation  
            moving in both houses.  Local governments are fighting with  
            telephone companies over whether the telephone companies must  
            first obtain a local franchise before building video networks  
            and offering video service.  This bill represents an effort by  
            the authors to achieve some consensus around this contentious  
            issue.  It would be bad faith to go through the exhausting  
            effort of negotiating this bill, only to have it undercut or  
            challenged in another venue.

           12.                                Technical Amendments  -- The  
            author suggests the following technical amendments:

               Page 5, line 22, change "Franchising entity" to "Local  
               franchising entity"
                
               Page 7, line 6, change "Franchising entity" to "Local  
               franchising entity"

               Page 8, line 38:  strike "(e)" and replace with "(d)".  
                Counsel:  this will put it back as it was in the  
               prior version.  The change should not have been  
               requested.
                
               Page 11, lines 27, 28, 29 and 30:  strike in their  
               entirety.  Line 31:  strike "local entity to the  
               holder of a state franchise."
                
               Page 21, lines 11 and 12:  remove the strike out - so  
               the sentence again contains the words:  "as required  
               by Section 541 (a) (3) of Title 47 of the United  
               States Code".  As above, this strike out request  
               should not have been submitted.
                
               Page 28, line 23:  delete "by the franchising  
               authority










                
                                    ASSEMBLY VOTES
           
          Assembly Floor                     (77-0)
          Assembly Appropriations Committee  (12-0)
          Assembly Utilities and Commerce Committee                       
          (10-0)                                                         

                                       POSITIONS
           
           Sponsor:
           
          Authors

           Support:
           
           --------------------------------------------------------------------- 
          | Academic Uprise      | Developmental         | New Beginnings       |
          | Actiontec            | Disabilities Service  | Academy              |
          |Electronics, Inc.     |      Organization,    | New Economics For    |
          | African American     | Inc.                  | Women                |
          |Business Council      | Disabled Sports USA - | Novato Chamber of    |
          | African American     | FAR WEST              | Commerce             |
          |Historical and        | Dunham, Sarah -       | OASIS                |
          |       Cultural       | Career Counselor,     | Observer Newspaper   |
          |Museum                |      University of    | Ocean Park Community |
          | Alcatel              | California, Berkeley  | Center               |
          | Alliance for         | Edmund G. Pat Brown   | Paint Your Heart     |
          |Community Media       | Institute of          | Out, Inc.            |
          | American Consumer    |      Public Affairs   | Pasadena Chamber of  |
          |Institute             | El Centro de Amistad  | Commerce             |
          |American Federation   | El Concilio del       | Pets Are Wonderful - |
          |of State,             | Conduado de Ventura   | LA                   |
          |     County and       | El Granito Foundation | Pittsburg Chamber of |
          | Municipal Employees  | Elder Help of San     | Commerce             |
          | American G.I. Forum  | Diego                 | Plaza Development    |
          | American Heart       | Elizabeth Peterson    | Partners, LLC        |
          | Association          | Group, Inc.           | Polaris Group        |
          | Anaheim Chamber of   | Federal Technology    | Poway Chamber of     |
          | Commerce             | Center                | Commerce             |
          | Arriba Juntos        | Fiber-to-the-Home     | Powers, Robert       |
          | Asian Americans for  | Council               | President Health     |
          | Community            | Filipino American     | Corp.                |
          |      Involvement     | Chamber of            | Printing Consultants |










          | Asian American       |      Commerce of      | Project Amiga        |
          |Resource Center       | Solano County         | Rainbow/PUSH         |
          | Asian Business       | Fontana Herald News   | Coalition            |
          | Association          | Fresno Center for New | RBD Communications   |
          | Asian Business       | Americans             | Rio Hondo Boys and   |
          | Council              | Friends Unlimited     | Girls Club           |
          | Asian Pacific        | Gardena Valley        | RJ Martin Insurance  |
          | American Legal       | Chamber of            | Agency               |
          | Center               |      Commerce         | Roberts Family       |
          |      of  Southern    | Gateway Chambers      | Development          |
          | California           | Alliance - LA         |      Center          |
          | Asian Pacific        | Global Energy &       |  RSVP Volunteers     |
          | Islander American    | Technology, Inc.      | Sac. Black Chamber   |
          | Public Asian         | Greater Huntington    | of Commerce          |
          | American Resource    | Park Area Chamber of  | Sac. County          |
          |      Center          | Commerce              | Taxpayers League     |
          | Affairs Association  | Greater Los Angeles   | San Anselmo Chamber  |
          | Community            | African               | of Commerce          |
          |      Education       |      American Chamber | San Bernardino       |
          | Foundation           | of Commerce           | Community College    |
          | Asians for Corporate | Greenlining Institute |      District        |
          | and                  | Habitat for Humanity, | San Diego East       |
          |      Community       | Fresno County         | County Chamber of    |
          | Action               | Halsa Inc.            |      Commerce        |
          | AT&T California      | Hammerhead Systems    | San Fracisco Chamber |
          | Bakersfield Homeless | Inc.                  | of Commerce          |
          | Center               | Harbor City/Harbor    | San Joaquin Valley   |
          | Bank of the West     | Gateway Chamber of    | Black Chamber        |
          | Bay Area Council     | Commerce              |      of  Commerce    |
          | Beaumont Chamber of  | Hartnell College      | San Jose Silicon     |
          | Commerce             | Henry Mayo Newhall    | Valley Chamber of    |
          | Black Business       | Memorial Health       |      Commerce        |
          | Association          | Foundation            | Santa Ana Chamber of |
          | Black Women          | Hispanic Association  | Commerce             |
          | Organized for        | of                    | Santa Ana Education  |
          |      Political       |      Communication    | Foundation           |
          | Action               | Employees of          | Santa Monica Chamber |
          | Boys and Girls Club  |      AT&T             | of                   |
          | of Auburn            | Hispanic Chamber of   |      Commerce        |
          | Boys and Girls Club  | Commerce of           | Self-Help For the    |
          | of Fontana           |      Contra Costa     | Elderly              |
          | Breakthru            | County                | Sempra Energy        |
          | Brotherhood Crusade  | Hispanic Chamber of   | Senior Community     |
          | Burton, Kevin        | Commerce of           | Centers              |










          | Fruitvale School     |      Marin            | Serving God's People |
          |      District        | Hispanic Chamber of   | Shasta County Board  |
          | Trustee              | Commerce of           | of Supervisors-      |
          | Cabrillo Economic    |      Orange County    |     Patricia Clarke, |
          | Development          | Hispanic Chamber of   | District 5           |
          |      Corporation     | Commerce of           | Social Concerns of   |
          | CA Black Chamber of  |      Stanislaus       | Southern CA          |
          | Commerce             | County                |                      |
          |  CA Building Trades  |                       |                      |
          |Council               |                       | Southeast Asian      |
          | CA Business          | Hollywood Chamber of  | Community Center     |
          | Roundtable           | Commerce              | State Assn. of       |
          | Support (continued): | Huntington Park       | Electrical Workers   |
          |                      | Chamber of            | State Building and   |
          | CA Cable & Telco.    |      Commerce         | Construction         |
          | Assn.                |  Information          |      Trades Council  |
          | CA Chamber of        |Technology Consortium  | of California        |
          | Commerce             | Inland Action, Inc.   | Suscol Intertribal   |
          | CA Commission on     | Inland Empire African | Council              |
          | APIA Affairs         | American Chamber of   | Telamon              |
          | CA Consumers United  | Commerce              | Telecommunications   |
          |  CA Hispanic Assn.   |  Intel                | Industry Assn.       |
          |on Corp.              |  International        | Thoma Electric       |
          |                      |Brotherhood of         | Thousand             |
          |Responsibility        |      Electrical       | Oaks-Westlake        |
          | CA Hispanic Chamber  |Workers                | Village              |
          | of Commerce          | Irvine Chamber of     |      Regional        |
          | California Labor     | Commerce              | Chamber              |
          | Federation           | Irvine Valley College | Torrance Area        |
          | California Small     | Foundation            | Chamber of           |
          | Business Assn.       | ITC                   |      Commerce        |
          | CA State Conference  | Joanne David on       | TriNet               |
          | of the NAACP         | behalf of Haven       | Communications, Inc. |
          | CSU, Chico, Center   |      Hills            | Tri-Valley Business  |
          | for Economic         | Kern County Taxpayers | Council              |
          |      Development     | Association           | Tulare County League |
          | CSU, Sacramento,     | Korean Health,        | of Mexican-          |
          | College of           | Education,            |      American Women  |
          |      Business        | Information &         | United Way of Butte  |
          | Administration       | Research Center       | and Glenn            |
          |  CA for Video &      | La Casa de San        |      Counties        |
          |Technology Choice     | Gabriel Community     | United Way of        |
          | Camarillo Health     |      Center           | Northern CA          |
          | Care District        | Lao Khmu Association  | United Way of San    |










          | Campbell Union High  | Latino Community      | Joaquin              |
          | School Dist.         | Roundtable,           |      County          |
          | Capitol Claims       |      Stanislaus       | USC, Annenberg       |
          | Services             | County                | School for           |
          | Castle and Cooke     | Latino Council of     |      Communication   |
          | Center for           | Marin                 | Ventura County       |
          | Accessible           | Latino Journal        | Economic             |
          | Technology           | League of United      |      Development     |
          | Center for Fathers   | Latin American        | Association          |
          | and Families         |      Citizens         | Ventura County       |
          | Central American     | Lighthouse Computer   | Taxpayers Assn.      |
          | Resource Center      | Group                 | Verizon              |
          | Central City         | Los Angeles Area      | Vietnamese Community |
          | Association of LA    | Chamber of            | of Pomona            |
          | Central Labor        |      Commerce         |      Valley          |
          | Council of Fresno,   | Los Angeles Urban     | Video Access         |
          | Madera, Tulare &     | League                | Alliance             |
          | Kings Counties       | Materus               | Vital Link           |
          | Charles Industries,  | McMillin Homes        | Volunteers of        |
          | Ltd.                 | Mexican American      | America of Southwest |
          | CHARO Community      | Opportunity           |                      |
          | Development Chico    |      Foundation       |      California      |
          | Economic Planning    | Microsoft Corporation | Watts/Century Latino |
          | Corp.                |                       | Organization         |
          | Chris Bernal Tax     | Milpitas Chamber of   | West Fresno          |
          | Services             | Commerce              | Healthcare Coalition |
          | Citizens Against     | Minerva Networks,     |                      |
          | Regulatory Excess    | Inc.                  | Western Region       |
          | City of Firebaugh    | NAACP - Fresno Branch | Puerto Rican         |
          | Colton Chamber of    | NAACP - Hercules,     |      Council         |
          | Commerce             | Pinole, & Rodeo       | Westside Council of  |
          | CWA, District 9      | NAACP - Lake Elsinore | Chambers of          |
          | CWA, Local 9333      | Branch                |      Commerce        |
          | CWA, Local 9404      | NAACP - Los Angeles   | Women's Council of   |
          | CWA, Local 9408      | NAACP - Monterey      | Realtors             |
          | CWA, Local 9412      | Peninsula Branch      | World Institute On   |
          | CWA, Local 9415      | NAACP - San Gabriel   | Disability           |
          | CWA, Local 9416      | Valley Branch         | Youth Violence       |
          | CWA, Local 9417      | NAACP - Vallejo       | Prevention Council   |
          | CWA, Local 9421      | Branch                |      of  Shasta      |
          | CWA, Local 9423      | National Council on   | County               |
          | Computer             | Aging                 | Yuba Sutter Economic |
          | Technologies Program | National              | Development          |
          | Community Union,     | Tax-Limitation        |      Corporation     |










          | Inc.                 | Committee             |   Several            |
          | Congress of          | National Taxpayers    |individuals           |
          | California Seniors   | Union                 |                      |
          | Consumers Federation | Networking Everyone   |                      |
          | of California        | w/ Technology         |                      |
          | Consumers First Inc. | Society for the Blind |                      |
          | Create-N-Animate     | South Bay Latino      |                      |
          | Culver City Chamber  | Chamber of            |                      |
          | of Commerce          |      Commerce         |                      |
          | Deaf & Hard of       |                       |                      |
          | Hearing Svc. Center  |                       |                      |
          | Delano Union         |                       |                      |
          | Elementary School    |                       |                      |
          |      District Board  |                       |                      |
          | of Trustees          |                       |                      |
           --------------------------------------------------------------------- 
           
          Oppose:
           
           --------------------------------------------------------------------- 
          |AARP                  |City of La Mirada      |City of Santa Fe      |
          |Adelphia              |City of La Palma       |Springs               |
          |Communications        |City of La Quinta      |City of Santa Maria   |
          |Artelias S. Guyton &  |City of La Verne       |City of Santa Monica  |
          |Associates            |City of Lafayette      |City of Santa Rosa    |
          |Business Women for    |City of Laguna Hills   |City of Saratoga      |
          |the Environment       |City of Laguna Niguel  |City of Sausalito     |
          |California Contract   |City of Lake Forest    |City of Scotts Valley |
          |Cities Association    |City of Lakeport       |City of Seal Beach    |
          |California Library    |City of Lakewood       |City of Seaside       |
          |Association           |City of Larkspur       |City of Sebastopol    |
          |California State      |City of Lathrop        |City of Selma         |
          |Association of        |City of Laverne        |City of Sierra Madre  |
          |     Counties         |City of Lawndale       |City of Simi Valley   |
          |CA State University , |City of Lemon Grove    |City of Solana Beach  |
          |Monterey Bay,         |City of Lincoln        |City of Soledad       |
          |     Chief            |City of Live Oak       |City of Sonoma        |
          |Information Officer   |City of Livermore      |City of South Gate    |
          |Calaveras County      |City of Lodi           |City of South Lake    |
          |Community             |City of Lomita         |Tahoe                 |
          |     Television       |City of Lompoc         |City of South San     |
          |Charter               |City of Long Beach     |Francisco             |
          |Communications, LLC   |City of Lynwood        |City of Stanton       |
          |Charter               |City of Manhattan      |City of Stockton      |










          |Communications -      |Beach                  |City of Suisun City   |
          |Inland                |City of Manteca        |City of Sunnyvale     |
          |     Empire           |City of Martinez       |City of Susanville    |
          |City of Alameda       |City of Maywood        |City of Temple        |
          |City of Alhambra      |City of Menlo Park     |City of Thousand Oaks |
          |City of Antioch       |City of Merced         |City of Torrance      |
          |City of Arcadia       |City of Mill Valley    |City of Tracy         |
          |City of Arcata        |City of Millbrae       |City of Tustin        |
          |City of Arroyo        |City of Mission Viejo  |City of Upland        |
          |City of Azusa         |City of Modesto        |City of Vacaville     |
          |City of Bakersfield   |City of Monrovia       |City of Ventura       |
          |City of Banning       |City of Monterey       |City of Vernon        |
          |City of Beaumont      |City of Monterey Park  |City of Victorville   |
          |City of Bellflower    |City of Moorpark       |City of Visalia       |
          |City of Belmont       |City of Moreno Valley  |City of Vista         |
          |City of Benicia       |City of Morro Bay      |City of Walnut        |
          |City of Berkeley      |City of Mountain View  |City of Walnut Creek  |
          |City of Beverly Hills |City of Mt. Shasta     |City of West Covina   |
          |City of Blue Lake     |City of Murrieta       |City of West          |
          |City of Bradbury      |City of Nevada         |Hollywood             |
          |City of Brea          |City of Norwalk        |City of West          |
          |City of Brentwood     |City of Novato         |Sacramento            |
          |City of Buena Park    |City of Oakland        |City of Whittier      |
          |City of Burbank       |City of Oceanside      |City of Woodland      |
          |City of Calabasas     |City of Ontario        |City of Yreka         |
          |City of Calistoga     |City of Orange         |City of Yuba City     |
          |City of Camarillo     |City of Pacific Grove  |City of Yucaipa       |
          |City of Campbell      |City of Pacifica       |City of Yucca Valley  |
          |City of Capitola      |City of Palm Desert    |City/County Assn. of  |
          |City of Carlsbad      |City of Palmdale       |Governments of        |
          |City of Carpinteria   |City of Palo Alto      |     San Mateo County |
          |City of Carson        |City of Palos Verdes   |City/County of San    |
          |City of Ceres         |Estates                |Francisco             |
          |City of Cerritos      |                       |Community Media       |
          |City of Chico         |                       |Access Partnership    |
          |City of Chino         |City of La Canada      |Contra Costa County   |
          |City of Chino Hills   |Flintridge             |County of Los Angeles |
          |City of Claremont     |City of La Mesa        |County of Monterey    |
          |City of Clayton       |City of Paramount      |County of Nevada      |
          |City of Cloverdale    |City of Pasadena       |                      |
          |City of Clovis        |City of Patterson      |                      |
          |City of Colusa        |City of Petaluma       |Foundation for        |
          |City of Commerce      |City of Pinole         |Taxpayers and         |
          |Oppose (continued):   |City of Pismo Beach    |     Consumer Rights  |










          |                      |City of Pittsburg      |Hispanic National Bar |
          |City of Compton       |City of Pleasant Hill  |Association           |
                     |City of Concord       |City of Pomona         |Kern County Board of  |
          |City of Coronado      |City of Porterville    |Supervisors           |
          |City of Costa Mesa    |City of Poway          |Las Virgenes-Malibu   |
          |City of Cotati        |City of Rancho Cordova |Council of            |
          |City of Covina        |City of Rancho         |     Governments      |
          |City of Culver City   |Cucamonga              |League of CA Cities   |
          |City of Cupertino     |City of Rancho Mirage  |League of CA Cities   |
          |City of Cypress       |City of Rancho Palos   |LA Division           |
          |City of Daly City     |Verdes                 |League of CA Cities,  |
          |City of Davis         |City of Red Bluff      |City of Morro         |
          |City of Del Mar       |City of Redding        |     Bay              |
          |City of Diamond Bar   |City of Redlands       |League of Women       |
          |City of Downey        |City of Redondo Beach  |Voters                |
          |City of Duarte        |City of Redwood City   |Livermore City        |
          |City of El Cajon      |City of Rohnert Park   |Council               |
          |City of El Cerrito    |City of Rolling Hills  |Jim Madaffer,         |
          |City of El Dorado     |Estates                |Councilmember         |
          |Hills                 |City of Rosemead       |Marin                 |
          |City of El Segundo    |City of Roseville      |Telecommunications    |
          |City of Elk Grove     |City of Sacramento     |Agency                |
          |City of Emeryville    |City of Salinas        |Marin County Board of |
          |City of Encinitas     |City of San Bernardino |Supervisors           |
          |City of Escondido     |City of San Clemente   |Mayors and Council    |
          |City of Fairfax       |City of San Diego      |Members               |
          |City of Fairfield     |City of San Dimas      |     Association of   |
          |City of Fillmore      |City of San Jose       |Sonoma County         |
          |City of Folsom        |City of San Gabriel    |Judith Mitchell,      |
          |City of Fontana       |City of San Juan       |Councilmember         |
          |City of Fort Bragg    |Capistrano             |Monterey County Board |
          |City of Fortuna       |City of San Leandro    |of                    |
          |City of Foster City   |City of San Luis       |     Supervisors      |
          |City of Fountain      |Obispo                 |Monterey County       |
          |Valley                |City of San Marcos     |Mayors' Assn.         |
          |City of Fremont       |City of San Mateo      |Public Access         |
          |City of Fresno        |City of San Pablo      |Television of         |
          |City of Garden Grove  |City of San Rafael     |Calaveras             |
          |City of Gardena       |City of Santa Ana      |     County           |
          |City of Gilroy        |City of Santa Barbara  |Public Cable          |
          |City of Goleta        |City of Santa Clara    |Television Authority  |
          |City of Grover Beach  |City of Santa Cruz     |Gloryanna Rhodes,     |
          |City of Hawaiian      |County of Sacramento   |Mayor, City of        |
          |Gardens               |County of San          |     Lathrop          |










          |City of Hercules      |Bernardino             |Rohnert Park City     |
          |City of Hollister     |County of Santa        |Council               |
          |City of Hughson       |Barbara                |Sac. County Board of  |
          |City of Huntington    |County of Santa Cruz   |Supervisors           |
          |Beach                 |El Dorado Hills        |Sac. Metropolitan     |
          |City of Huntington    |Community Svc Dist.    |Cable Television      |
          |Park                  |                       |     Commission       |
          |City of Imperial      |                       |San Diego Association |
          |Beach                 |                       |of                    |
          |City of Industry      |                       |     Governments      |
          |City of Inglewood     |                       |San Diego County      |
          |City of Irvine        |                       |Board of              |
          |City of Irwindale     |                       |     Supervisors      |
          |                      |                       |San Mateo County      |
          |                      |                       |Telecommunica-        |
          |                      |                       |     tions Authority  |
          |                      |                       |Santa Barbara Channel |
          |                      |                       |Santa Clara County    |
          |                      |                       |Board of              |
          |                      |                       |     Supervisors      |
          |                      |                       |Santa Rosa Community  |
          |                      |                       |Media Center          |
          |                      |                       |Sutter Medical Center |
          |                      |                       |of Santa Rosa         |
          |                      |                       |Town of Apple Valley  |
          |                      |                       |Town of Corte Madera  |
          |                      |                       |Town of Fairfax       |
          |                      |                       |Town of Truckee       |
          |                      |                       |Town of Windsor       |
          |                      |                       |Urban Counties Caucus |
          |                      |                       |Ventura Council of    |
          |                      |                       |Governments           |
          |                      |                       |                      |
           --------------------------------------------------------------------- 
          Randy Chinn 
          AB 2987 Analysis
          Hearing Date:  June 29, 2006