BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 2987
          Author:   Nunez (D) and Levine (D), et al
          Amended:  8/28/06 in Senate
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  9-0, 6/29/06
          AYES:  Escutia, Cox, Alarcon, Battin, Dunn, Dutton, Kehoe,  
            Murray, Simitian
          NO VOTE RECORDED:  Bowen

           SENATE APPROPRIATIONS COMMITTEE  :  13-0, 8/17/06
          AYES:  Murray, Aanestad, Alarcon, Alquist, Ashburn, Battin,  
            Dutton, Escutia, Florez, Ortiz, Poochigian, Romero,  
            Torlakson

           ASSEMBLY FLOOR  :  77-0, 5/31/06 - See last page for vote


           SUBJECT  :    Cable and video service

           SOURCE  :     Author


           DIGEST :    This bill enacts the Digital Infrastructure and  
          Video Competition Act of 2006.

           Senate Floor Amendments  of 8/28/06 authorize the Public  
          Utilities Commission (PUC) to impose non-discriminatory fee  
          to pay for its activities in the same way that public  
          utilities pay fees to the PUC.  The PUC is required to  
          commence accepting applications for a state-issued video  
          franchise by April 1, 2007.  Holders of franchises must  
                                                           CONTINUED





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          report specified information to the PUC annually, and the  
          PUC shall make such information publicly available pursuant  
          to the existing rules.  The Division of Ratepayer Advocates  
          within the PUC is authorized to advocate on behalf of video  
          customers under specified circumstances.

          The amendments require local governments to either approve  
          or deny encroachment permits for the construction of video  
          facilities within 60 days.

           ANALYSIS :    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 five percent of gross revenues.  The local  
          franchising authority may require the franchise to provide  
          channel capacity for public, educational, or governmental  
          use.

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

          This bill replaces the local franchising process with a  
          state process.

          The backdrop for this legislation is the development of  
          technologies that allow telephone companies to provide  
          television service over their telephone networks.  More  
          competition should keep cable television prices from rising  
          and result in new services that combine telephone, internet  
          and cable television capabilities.  However, this welcome  
          development comes with a few strings attached.  The biggest  
          is that the telephone companies don't want to negotiate  
          individual cable franchises with the hundreds of local  
          governments, which have been delegated the jurisdiction to  
          issue the franchise from the state.  Instead the telephone  
          companies seek the simplicity and ease of a single  
          state-issued franchise whose parameters are established in  
          statute.  

          When local governments originally granted cable franchises  
          decades ago they were almost exclusively monopolies.  Today  







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          the market for cable service is much different.  Satellite  
          providers are viable competitors, capturing nearly  
          one-third of the market.  Technological advances will soon  
          make it possible to view television from other wireless  
          providers like cell phones.  Internet-based video service  
          is already widely available.  And of course new entrants  
          must compete with the existing cable operators.  It is this  
          much more competitive market which provides the public  
          policy rationale for this bill.

          Unlike the local franchising process, the state-franchising  
          process is intended to be largely ministerial.  The  
          give-and-take which characterizes local franchise  
          negotiations is replaced with statutorily established  
          requirements for franchise fees, build-out requirements,  
          anti-discrimination requirements, Public, Education and  
          Governmental (PEG) channel obligations, customer service  
          standards, and privacy requirements.   Administering the  
          state franchising process is the Public Utilities  
          Commission.  The provisions of the bill are intended to  
          encompass telephone companies and their affiliates offering  
          cable service.  This bill is not intended to alter the  
          regulatory requirements for offering telephone service.

           Non-discrimination/Build-out Commitments/Technology  .  Under  
          a typical local franchise, the cable company must build out  
          virtually the entire local community, except for high-cost  
          areas.  (Los Angeles is an exception, having divided itself  
          up into 14 non-overlapping franchise areas.)  This  
          requirement has not been applied to new competitors under  
          this bill, except under limited circumstances.

          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  
          competitive 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 spread 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  







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          locally franchised, are designed and built to coincide with  
          the local franchisor's political boundaries.  Most  
          relevantly, as noted above the new competitors face much  
          more competition than the original cable operators faced,  
          making an initial requirement to build out the  
          telecommunications company's entire foot print unrealistic  
          and unreasonable.

          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.  Indeed  
          a goal of this bill is for all Californian's to have access  
          to the most technologically advanced cable and video  
          services. The authors have negotiated buildout commitments  
          from each of the two largest telecommunications companies.   
          Those commitments, 25 percent of customers offered video  
          service within two years, and 40 percent within five years  
          for Verizon, and 35 percent within three years and 50  
          percent within five years for AT&T, reflect the different  
          technology and installation hurdles faced by each company.   
          While well short of 100 percent, 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 proposals by establishing a specific  
          test for ensuring that discrimination is not occurring for  
          the two largest telephone companies in California.  That  
          test, which is that within three years at least 25 percent  
          of the households being offered video service are low  
          income, and 30 percent 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 cannot meet the requirements because of  
          circumstances outside of its control and has made  







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          substantial and continuous effort to meet those  
          requirements.  The second waiver mechanism is that the five  
          year buildout requirement, 40 percent for Verizon and 50  
          percent for AT&T, does not apply until two years after at  
          least 30 percent of households with access to their video  
          service subscribe for at least six months.  

          This bill allows for some flexibility in the technology  
          that can be used to meet these requirements, but explicitly  
          excludes satellite-based technology.

           Fee or Tax  .  Local governments have raised concerns that  
          the structure of this bill may be found to be  
          unconstitutional because it could be seen either as a tax,  
          rather than a fee, or as a state tax assessed for local  
          purposes.  Legislative Counsel disagrees with both  
          concerns, as do the bill sponsors,  and has opined that the  
          bill establishes a franchise fee, which is a rent, for use  
          of the right-of-way.  

          The state franchise fee is set at five percent though local  
          governments may reduce that fee if they wish.  

           Local Control over the Right of Way  .  This bill preserves  
          local control over the right of way by giving local  
          government the same rights over the installation of video  
          equipment as they have over telephone equipment.  This  
          means that local government has control over the time,  
          place, and manner in which such equipment is installed.

           Public, Educational and Governmental (PEG) Access  .  Current  
          law authorizes local franchising authorities to negotiate  
          channel set-asides for PEG access as well as support for  
          PEG operations.  Some local franchising authorities have  
          also negotiated institutional networks (I-nets), which are  
          communication networks used by local governments for their  
          own communications purposes.  This bill grandfathers in the  
          existing PEG channel requirements, and authorizes all local  
          franchising authorities to receive three PEG channels.  In  
          addition the state of California is authorized to establish  
          a PEG channel for state purposes.  All local governments  
          are authorized to impose via ordinance a one percent fee  
          for PEG purposes.  Those four percent of local governments  
          that impose a fee for PEG support through their current  







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          franchise higher than one percent are authorized to impose  
          that same level of fee after the franchise expires, but not  
          to exceed three percent.  

           Gross Revenues  .  A key dispute in this bill is the  
          definition of gross revenues upon which the franchise fee  
          is based.  The intent of the bill is to keep local  
          governments whole.  Local governments argue that the gross  
          revenues definition in the bill falls short of that intent  
          and suggest several additional categories of revenues which  
          should be included.  The cable operators contend that those  
          additional categories of revenues are not currently counted  
          as revenue in any of the franchises of the major cable  
          operators and would therefore increase franchise fees to  
          local government.  

           Cross-subsidy Protection  .   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; 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.

          This bill deals with the potential for cross-subsidization  
          by freezing rates for basic residential telephone service  
          at current levels until 2009, with the PUC authorized to  
          raise those rates to reflect inflation increases.   
          Additionally, this bill prohibits all telephone companies  
          from raising the price of basic telephone service to  
          finance the cost of providing cable service.

           Privacy  .  The major telecommunications companies have been  
          accused by whistle-blowers of sharing customer information  
          with federal authorities without a warrant, raising privacy  
          concerns. Federal lawsuits have resulted.  Heightening  
          those concerns are very recent press reports that AT&T will  







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          keep track of their video customers' viewing habits and  
          that those customer records are business records owned by  
          AT&T.  

          This bill subjects new cable competitors to the same state  
          and federal privacy standards as are imposed on the  
          existing cable operators.

           Transition Period  .  The bill provides for a transition  
          period until January 1, 2008 during which competitors can  
          seek a state franchise but incumbent cable operators  
          cannot.  During that period incumbent cable operators may  
          continue to operate under their existing local franchises,  
          renew their expired franchises, and otherwise continue to  
          operate, maintain, and upgrade their systems.  After that  
          time a cable operator may seek a state franchise once a  
          competitor has been granted a state franchise or after the  
          local franchise expires.

           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, which are statutory, have been raised to  
          $500/day.

           No Vested Right .  Locally-issued franchises are contracts  
          which cannot be altered until their term expires.  This  
          bill preserves the right to amend the statute and therefore  
          the terms of the state-issued franchise.  There has been no  
          objection to this provision.  
           
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

                          Fiscal Impact (in thousands)

           Major Provisions             2006-07             2007-08          
              2008-09             Fund

           Cable franchising            $1,000             $1,000       
                 $1,000            Special








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           SUPPORT  :   (Verified  8/28/06)

          Academic Uprise
          Actiontec Electronics, Inc.
          African American Business Council
          African American Historical and Cultural Museum
          Alcatel
          Alliance for Community Media
          American Federation of State, County and Municipal  
          Employees
          American G.I. Forum
          American Heart Association
          Anaheim Chamber of Commerce
          Arriba Juntos
          Asian Americans for Community Involvement
          Asian American Resource Center

          Asian Business Association
          Asian Business Council
          Asian Pacific American Legal Center of  Southern   
          California
          Asian Pacific Islander American Public Asian American  
          Resource Center
          Affairs Association Community Education Foundation 
          Asians for Corporate and Community Action
          AT&T California
          Bakersfield Homeless Center
          Bank of the West
          Beaumont Chamber of Commerce
          Black Business Association
          Black Women Organized for Political Action
          Boys and Girls Club of Auburn
          Boys and Girls Club of Fontana
          Breakthru
          Brotherhood Crusade
          Burton, Kevin Fruitvale School District Trustee
          Cabrillo Economic Development Corporation
          California Black Chamber of Commerce
          California Building Trades Council
          California Business Roundtable

          California Chamber of Commerce
          California Commission on APIA Affairs
          California Consumers United







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          California Hispanic Association on Corp. Responsibility
          California Hispanic Chamber of Commerce
          California Labor Federation
          California Small Business Association
          California State Conference of the NAACP
          CSU, Chico, Center for Economic Development
          CSU, Sacramento, College of Business Administration
          California Video & Technology Choice
          Camarillo Health Care District
          Campbell Union High School Dist. 
          Capitol Claims Services
          Castle and Cooke 
          Center for Accessible Technology
          Center for Fathers and Families
          Central American Resource Center
          Central City Association of LA 
          Central Labor Council of Fresno, Madera, Tulare & Kings  
          Counties
          Charles Industries, Ltd.
          CHARO Community Development Chico Economic Planning Corp.
          Chris Bernal Tax Services
          Citizens Against Regulatory Excess
          City of Firebaugh
          Colton Chamber of Commerce
          CWA, District 9
          CWA, Local 9333
          CWA, Local 9404
          CWA, Local 9408
          CWA, Local 9412
          CWA, Local 9415
          CWA, Local 9416
          CWA, Local 9417 
          CWA, Local 9421
          CWA, Local 9423
          Computer Technologies Program
          Community Union, Inc.
          Congress of California Seniors
          Consumers Federation of California
          Consumers First Inc.
          Create-N-Animate
          Culver City Chamber of Commerce
          Deaf and Hard of Hearing Svc. Center
          Delano Union Elementary School District Board of Trustees
          Developmental Disabilities Service Organization, Inc.







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          Disabled Sports USA - FAR WEST
          Dunham, Sarah - Career Counselor, University of California,  
          Berkeley
          Edmund G. Pat Brown Institute of Public Affairs
          El Centro de Amistad
          El Concilio del Conduado de Ventura
          El Granito Foundation
          Elder Help of San Diego
          Elizabeth Peterson Group, Inc.
          Federal Technology Center
          Fiber-to-the-Home Council
          Filipino American Chamber of Commerce of Solano County
          Fontana Herald News
          Fresno Center for New Americans
          Friends Unlimited
          Gardena Valley Chamber of Commerce
          Gateway Chambers Alliance - Los Angeles
          Global Energy & Technology, Inc.
          Greater Huntington Park Area Chamber of Commerce
          Greater Los Angeles African American Chamber of Commerce
          Greenlining Institute
          Habitat for Humanity, Fresno County
          Halsa Inc.
          Hammerhead Systems Inc.
          Harbor City/Harbor Gateway Chamber of Commerce
          Hartnell College
          Henry Mayo Newhall Memorial Health Foundation
          Hispanic Association of Communication Employees of AT&T
          Hispanic Chamber of Commerce of Contra Costa County
          Hispanic Chamber of Commerce of Marin
          Hispanic Chamber of Commerce of Orange County
          Hispanic Chamber of Commerce of Stanislaus County
          Hollywood Chamber of Commerce
          Huntington Park Chamber of Commerce
          Information Technology Consortium
          Inland Action, Inc.
          Inland Empire African American Chamber of Commerce 
          Intel
          International Brotherhood of Electrical Workers
          Irvine Chamber of Commerce
          Irvine Valley College Foundation
          ITC
          Joanne David on behalf of Haven Hills
          Kern County Taxpayers Association







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          Korean Health, Education, Information & Research Center
          La Casa de San Gabriel Community Center
          Lao Khmu Association
          Latino Community Roundtable, Stanislaus County
          Latino Council of Marin
          Latino Journal
          League of United Latin American Citizens
          Lighthouse Computer Group
          Los Angeles Area Chamber of Commerce
          Materus
          McMillin Homes
          Mexican American Opportunity Foundation
          Microsoft Corporation 
          Milpitas Chamber of Commerce
          Minerva Networks, Inc.
          NAACP - Fresno Branch
          NAACP - Hercules, Pinole, & Rodeo
          NAACP - Lake Elsinore Branch
          NAACP - Los Angeles 
          NAACP - Monterey Peninsula Branch
          NAACP - San Gabriel Valley Branch 
          NAACP - Vallejo Branch
          National Council on Aging
          National Tax-Limitation Committee
          National Taxpayers Union
          Networking Everyone w/ Technology
          Society for the Blind
          New Beginnings Academy 
          New Economics For Women
          Novato Chamber of Commerce
          OASIS
          Observer Newspaper
          Ocean Park Community Center
          Paint Your Heart Out, Inc.
          Pasadena Chamber of Commerce
          Pets Are Wonderful - Los Angeles
          Pittsburg Chamber of Commerce
          Plaza Development Partners, LLC
          Polaris Group
          Poway Chamber of Commerce
          Powers, Robert
          President Health Corp.
          Printing Consultants
          Project Amiga







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          Rainbow/PUSH Coalition
          RBD Communications
          Rio Hondo Boys and Girls Club
          RJ Martin Insurance Agency
          Roberts Family Development Center
          RSVP Volunteers 
          Sacramento Black Chamber of Commerce
          Sacramento County Taxpayers League
          San Anselmo Chamber of Commerce
          San Bernardino Community College District
          San Diego East County Chamber of Commerce
          San Fracisco Chamber of Commerce
          San Joaquin Valley Black Chamber of  Commerce
          San Jose Silicon Valley Chamber of Commerce
          Santa Ana Chamber of Commerce
          Santa Ana Education Foundation
          Santa Monica Chamber of Commerce
          Self-Help For the Elderly
          Sempra Energy
          Senior Community Centers
                                                                   Serving God's People
          Shasta County Board of Supervisors - Patricia Clarke,  
          District 5
          Social Concerns of Southern CA 
          South Bay Latino Chamber of Commerce
          Southeast Asian Community Center 
          State Association of Electrical Workers
          State Building and Construction Trades Council of  
          California
          Suscol Intertribal Council
          Telamon
          Telecommunications Industry Association
          Thoma Electric
          Thousand Oaks-Westlake Village Regional Chamber
          Torrance Area Chamber of Commerce
          TriNet Communications, Inc.
          Tri-Valley Business Council 
          Tulare County League of Mexican-American Women
          United Way of Butte and Glenn Counties 
          United Way of Northern California
          United Way of San Joaquin County 
          USC, Annenberg School for \Communication
          Ventura County Economic Development Association
          Ventura County Taxpayers Assn. 







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          Verizon
          Vietnamese Community of Pomona Valley
          Video Access Alliance
          Vital Link
          Volunteers of America of Southwest California
          Watts/Century Latino Organization
          West Fresno Healthcare Coalition 
          Western Region Puerto RicanCouncil
          Westside Council of Chambers of Commerce
          Women's Council of Realtors
          World Institute On Disability
          Youth Violence Prevention Council of Shasta County
          Yuba Sutter Economic Development Corporation

           OPPOSITION  :    (Verified  8/28/06)

          AARP
          Adelphia Communications
          Artelias S. Guyton & Associates
          Business Women for the Environment
          California Contract Cities Association
          California Library Association
          California State Association of Counties
          California State University , Monterey Bay, Chief  
          Information Officer
          Calaveras County Community Television
          Charter Communications, LLC
          Charter Communications - Inland Empire
          Cities of Alameda, Antioch, Arcadia, Arcata, Arroyo, Azusa,  
            Bakersfield, Banning, Bellflower, Belmont, Benicia,  
            Berkeley, Blue Lake, Brea, Brentwood, Buena Park.  
            Calabasas, Calistoga, Campbell, Capitola, Carlsbad,  
            Carpinteria, Carson, Cerritos, Chico, Chino, Chino Hills,  
            Claremont, Clayton, Cloverdale, Clovis, Colusa, Commerce,  
            Compton, Concord, Coronado, Costa Mesa, Cotati, Covina,  
            Culver City, Cupertino, Cypress, Daly City, Del Mar,  
            Diamond Bar, Downey, Duarte, El Cajon, El Segundo, El  
            Dorado Hills, Elk Grove, Emeryville, Encinitas,  
            Escondido, Fairfax, Fairfield, Fort Bragg, Fortuna,  
            Foster City, Fountain Valley, Fremont, Fresno, Garden  
            Grove, Gardena, Gilroy, Goleta, Grover Beach, Hollister,  
            Hughson, Huntington Beach, Imperial Beach, Inglewood,  
            Irvine, La Canada Flintridge, La Mesa, La Mirada, La  
            Palma, La Quinta, La Verne, Lafayette, Laguna Hills, Lake  







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            Forest, Lakeport, Lakewood, Larkspur, Lathrop, Laverne,  
            Lemon Grove, Lincoln, Live Oak, Livermore, Lomita,  
            Lompoc, Long Beach, Lynwood, Manhattan Beach, Manteca,  
            Maywood, Menlo Park, Merced, Mill Valley, Millbrae,  
            Mission Viejo, Modesto, Monrovia, Monterey, Monterey  
            Park, Moorpark, Moreno Valley, Morro Bay, Mountain View,  
            Mt. Shasta, Murrieta, Nevada City, Norwalk, Novato,  
            Oakland, Oceanside, Ontario, Orange, Pacific Grove,  
            Pacifica, Palm Desert, Palmdale, Palo Alto, Palos Verdes  
            Estates, Paramount, Pasadena, Petaluma, Pinole, Pismo  
            Beach, Pittsburg, Pleasant Hill, Pomona, Porterville,  
            Poway, Rancho Cordova, Rancho Cucamonga, Rancho Mirage,  
            Rancho Palos Verdes, Red Bluff, Redding, Redlands,  
            Redondo Beach, Redwood City, Rohnert Park, Rolling Hills  
            Estates, Rosemead, Roseville, Salinas, San Bernardino,  
            San Clemente, San Diego, San Dimas, San Jose, San  
            Gabriel, San Juan Capistrano, San Leandro, San Luis  
            Obispo, San Marcos, San Mateo, San Pablo, Santa Ana,  
            Santa Barbara, Santa Cruz, Santa Fe Springs, Santa Maria,  
            Santa Monica, Santa Rosa, Sausalito, Scotts Valley, Seal  
            Beach, Sebastopol, Sierra Madre, Solana Beach, Soledad,  
            Sonoma, South Lake Tahoe, South San Francisco, Stanton,  
            Stockton, Suisun City, Sunnyvale, Thousand Oaks,  
            Torrance, Tracy, Tustin, Upland, Vacaville, Ventura,  
            Visalia, Vista, Walnut, Walnut Creek, West Covina, West  
            Hollywood, Whittier, Woodland, Yreka, Yuba City, and  
            Yucaipa
          City/County Association of Governments of San Mateo County
          City/County of San Francisco
          Community Media Access Partnership
          Counties of Contra Costa, Monterey, Nevada, Sacramento, San  
            Bernardino, Santa Barbara and Santa Cruz
          El Dorado Hills Community Svc Dist.
          Foundation for Taxpayers and Consumer Rights
          Las Virgenes-Malibu Council of Governments
          League of CA Cities
          League of CA Cities LA Division
          League of CA Cities, City of Morro Bay
          Livermore City Council
          Jim Madaffer, Councilmember
          Marin Telecommunications Agency
          Marine County Board of Supervisors
          Mayors and Council Members Association of Sonoma County
          Judith Mitchell, Councilmember







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          Monterey County Board of Supervisors
          Monterey County Mayors' Association
          Public Access Television of Calaveras County
          Public Cable Television Authority
          Gloryanna Rhodes, Mayor, City of Lathrop
          Rohnert Park City Council
          Sacramento County Board of Supervisors
          Sacramento Metropolitan Cable Television Commission
          San Diego County Board of Supervisors
          San Mateo County Telecommunications Authority
          Santa Barbara Channel
          Santa Clara County Board of Supervisors
          Santa Rosa Community Media Center
          Sutter Medical Center of Santa Rosa
          Towns of Apple Valley, Fairfax, Truckee, and Windsor
          Urban Counties Caucus
          Ventura Council of Governments

           ARGUMENTS IN SUPPORT  :    Proponents argue that telephone  
          company entry into cable markets should be welcomed as a  
          way to help lower prices, improve service quality and spur  
          innovation.  Proponents argue that revising existing cable  
          franchising laws is necessary.  They argue 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.

           ARGUMENTS IN OPPOSITION  :    Opponents argue this is a  
          complex issue that deserves full public review.  They argue  
          that the bill sacrifices the interests of consumers and  
          their communities.  Opponents argue the bill (1) makes  
          customer cherry-picking legal (they fear this will increase  
          the digital divide), (2) provides a one-size-fits-all  
          approach to the PEG/I-Net issue (will cause many  
          communities to lose their right to activate PEG access  
          channels that are in current franchise), (3) will make  
          customer standards difficult to enforce (the bill includes  
          several provisions that undermine enforcement efforts), (4)  
          there is a public safety risk with the expiration of local  
          emergency service notifications, (5) creates a new state  
          bureaucracy to perform a local function (they argue the  
          franchise should be issued at the local level, and (6)  







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          provides a one-sided abrogation of local contracts.


           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Arambula, Baca, Bass, Benoit, Berg,  
            Bermudez, Blakeslee, Bogh, Calderon, Canciamilla, Chan,  
            Chavez, Chu, Cogdill, Cohn, Coto, Daucher, De La Torre,  
            DeVore, Dymally, Emmerson, Evans, Frommer, Garcia,  
            Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley  
            Horton, Houston, Huff, Jones, Karnette, Keene, Klehs,  
            Koretz, La Malfa, La Suer, Laird, Leno, Leslie, Levine,  
            Lieber, Lieu, Liu, Matthews, Maze, McCarthy, Montanez,  
            Mountjoy, Mullin, Nakanishi, Nava, Negrete McLeod, Parra,  
            Pavley, Plescia, Richman, Ridley-Thomas, Sharon Runner,  
            Ruskin, Saldana, Salinas, Spitzer, Strickland, Torrico,  
            Tran, Umberg, Vargas, Villines, Walters, Wolk, Wyland,  
            Yee, Nunez
          NO VOTE RECORDED:  Nation, Niello, Oropeza


          NC:cm  8/28/06   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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