Telecommunications: The Digital Equity in Video Franchising Act of 2023.

The Digital Infrastructure and Video Competition Act of 2006 establishes a procedure for the Public Utilities Commission to issue state franchises for the provision of video service, defined as video programming services, cable service, or open-video system service, except any video programming provided by a commercial mobile service provider, as defined in federal law, or video programming provided as part of, and via, a service that enables users to access content, information, email, or other services offered over the public internet. The act provides that the holder of a state franchise is not a public utility as a result of providing video services and that the act does not authorize the commission to regulate the rates, terms, and conditions of video service, except as explicitly set forth in the act. The act establishes a state franchise fee to be remitted to a local entity based on the franchiseholder's gross revenues, as defined, derived from the provision of cable or video service within that jurisdiction. The act prohibits a cable operator or video service provider that has been granted a state franchise from discriminating against, or denying access to service to, any group of potential residential subscribers because of the income of the residents in the local area in which the group resides, as specified. The act limits the maximum amount of a penalty that a local entity is authorized to assess on a holder of a state franchise for a material breach of certain customer service and consumer protection standards, as specified. This bill would revise and recast the Digital Infrastructure and Video Competition Act of 2006 to, among other things, rename the act as the Digital Equity in Video Franchising Act of 2023, require the commission to conduct any hearings and issue a state franchise or a reject each application for a state franchise not more than 120 days after the commission has deemed the application complete, and extend deadlines related to the commission's review of applications for state franchises. This bill would establish a policy of the state that subscribers and potential subscribers of a state video franchiseholder should benefit from equal access, as defined, to video service within the franchise service area, and expand the prohibition on certain cable operators or video service providers from discriminating against, or denying access to service to, any group of potential residential subscribers to include denial of equal access, as specified. The bill would require the commission to enforce customer service requirements for a holder of a state franchise and would increase the maximum amount of a penalty that a local entity is authorized to assess on a holder of a state franchise for a material breach of certain customer service and consumer protection standards, as specified. Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of a commission action implementing this bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.