Title Cont: Video Competition Act of 2006
Ordinance No. 946 is a new ordinance that establishes local regulations applicable to state video franchise holders. Historically, cable franchises were issued and regulated at the local level in California. However, the California Legislature enacted the Digital Infrastructure and Video Competition Act of 2006 ("DIVCA"), which went into effect on January 1, 2007. Under DIVCA, the Legislature created a new regulatory scheme for cable and video franchising in California that essentially shifted franchising authority away from local government to the State level. Under this new regulatory scheme, only the California Public Utilities Commission ("CPUC") may issue video franchises under DIVCA, and as locally granted franchises expire, the video service provider operating under a local franchise must obtain a State DIVCA franchise to continue to serve the local community. Although the CPUC now has most of the regulatory authority over the holders of state video franchises under DIVCA, DIVCA preserves some local government regulatory authority, including the collection of franchise and "PEG" fees, right-of-way management, and enforcement of state and federal customer service requirements. This regulatory authority is addressed in Ordinance No. 946. In particular, the Ordinance will enable the County to collect a fee from the state video franchise holders to support Public, Educational, and Governmental ("PEG") channel facilities.