Chapter 5.55 LOCAL ADMINISTRATION AND ENFORCEMENT OF PROVISIONS OF THE DIGITAL INFRASTRUCTURE AND VIDEO COMPETITION ACT OF 2006

Chapter 5.55
LOCAL ADMINISTRATION AND ENFORCEMENT OF PROVISIONS OF THE DIGITAL INFRASTRUCTURE AND VIDEO COMPETITION ACT OF 2006

Sections:

5.55.010 Purpose and applicability; definitions.

5.55.040 Customer service and protection; monetary penalties.

5.55.010 Purpose and applicability; definitions.

The purpose of this Chapter is to set forth regulations for the provision of video service by state franchise holders in accordance with the Digital Infrastructure and Video Competition Act, California Public Utilities Code Sections 5800 et seq. (“the Act”). This Chapter shall apply only to video service providers issued a state franchise to serve any area within the City by the California Public Utilities Commission pursuant to the Act.

For purposes of this Chapter, the terms used shall have the same definitions given those terms in the Act. (Ord. 2009-02, Add, 02/03/2009)

5.55.020 Delegation of powers.

Except as otherwise expressly provided in any action of the City Council pursuant to its reserved powers under Section 5.50.042 of Chapter 5.50 of the Galt Municipal Code, all powers, rights, duties and obligations of the City pursuant to the provisions of the Act as it exists now or should hereafter be amended, is hereby delegated to and conferred upon the Board of Directors of the Sacramento Metropolitan Cable Television Commission (“SMCTC”) as to any video service provider included within the scope of the Act, including, without limitation, the Act’s provisions for customer service regulation and enforcement, establishment of the percent of franchise fees, provision of public, educational and governmental access (“PEG”) channels, PEG program carriage and PEG channel facilities fees and enforcement of the Act. (Ord. 2009-02, Add, 02/03/2009)

5.55.030 Implementation actions.

Consistent with the delegation of powers provided in Section 5.55.020 of this Chapter 5.55 and without limiting this delegation of powers, the following implementation actions provided for under the Act are hereby confirmed, ratified and delegated to the SMCTC:

A. Franchise Fee. All state franchise holders shall remit to the SMCTC a franchise fee in the amount of five percent (5%) of the gross revenues of the state franchise holder in compliance with California Public Utilities Code Sections 5840(q) and 5860.

B. PEG Channels.

1. All state franchise holders shall provide capacity for seven PEG channels in accordance with California Public Utilities Code Section 5870.

2. All state franchise holders shall comply with the provisions of the Act related to PEG channels, including the following requirements of California Public Utilities Code Section 5870:

a. The PEG channels shall all be carried on the basic service tier.

b. To the extent feasible, the PEG channels shall not be separated numerically from other channels carried on the basic service tier and the channel numbers for the PEG channels shall be the same channel numbers used by the incumbent cable operator, unless prohibited by federal law.

c. After the initial designation of PEG channel numbers, the channel numbers shall not be changed without the agreement of the City, unless the change is required by federal law.

d. The PEG access capacity provided shall be of similar quality and functionality to that offered by commercial channels on the lowest cost tier of service, unless the signal is provided to the state franchise holder at a lower quality or with less functionality.

3. A state franchise holder shall have three (3) months from the date SMCTC requests the PEG channels to designate the capacity. However, the three-month period shall be tolled by any period during which the designation or provision of PEG channel capacity is technically infeasible, including any failure or delay of the incumbent cable operator to make adequate interconnection available as required by the Act. Any state franchise holder who believes that the designation or provision of PEG channel capacity is technically infeasible, shall provide to SMCTC, in writing, its reasons therefor and its plan for correcting or solving the infeasibility. SMCTC may hold a hearing on the claim of infeasibility to provide the PEG channel capacity on the state franchise holder’s network.

C. PEG Channel Facilities Fee.

1. All state franchise holders shall remit to the SMCTC a fee to support PEG channel facilities and equipment in an amount of up to three percent (3%) of gross revenues (“PEG Fee”) in the manner and at the time SMCTC determines. Use of the PEG Fee shall be consistent with applicable state and federal law. Any PEG Fee required to be collected may be shown as a separate line item on the regular bill of each subscriber.

2. Any state franchise holder that believes that it is exempt from said PEG Fee or subject to a different or lower fee may file a written request with the SMCTC for a determination of exemption from or reduction of the PEG Fee. Said requests shall be filed within thirty (30) days of the effective date of the PEG Fee or within thirty (30) days of the date the state franchise holder commences providing video services within the City, whichever occurs last. Said requests shall be heard by SMCTC.

a. Said requests may be based on state or federal law, or on the provisions of local franchises. For example, requests for reduction of the PEG Fee to be paid to the SMCTC may be based on monetary support or in-kind PEG channel support provided by the claimant, including support of PEG channel facilities and equipment and/or institutional network facilities.

(Ord. 2009-02, Add, 02/03/2009)

5.55.040 Customer service and protection; monetary penalties.

A. All state franchise holders shall comply with the provisions of Section 637.5 of the California Penal Code and the privacy standards contained in Section 631 of the federal Cable TV Privacy Act of 1984, 47 U.S.C. Sections 551 et seq. All state franchise holders shall comply with the provisions of Sections 53055, 53055.1, 53055.2 and 53088.2 of the California Government Code, and any other customer service standards pertaining to the provision of video service established by federal law or regulation or adopted by subsequent enactment of the Act. The SMCTC and/or the City shall enforce, in the manner set forth in the Act, all customer service and consumer protection standards contained in Section 5900 of the California Public Utilities Code, including without limitation those standards set forth in Section 5900(c). SMCTC has been and hereby is authorized to impose penalties for any material breach of Section 5900 of the California Public Utilities Code, as set forth herein.

B. The maximum monetary penalties set forth in California Public Utilities Code Section 5900 are hereby adopted and enacted as the applicable schedule of penalties for material breaches of Section 5900 by a state franchise holder, as follows:

1. Five hundred dollars ($500) per day for each material breach, not to exceed one thousand five hundred dollars ($1,500) for each occurrence of a material breach. The SMCTC shall provide notice to the state franchise holder of the material breach pursuant to California Public Utilities Code Section 5900(e) prior to the imposition of the penalty.

2. For a second material breach of the same nature that occurs within twelve (12) months, and if the SMCTC has provided notice to the state franchise holder of the material breach pursuant to California Public Utilities Code Section 5900(e) and a penalty has been assessed, one thousand dollars ($1,000) per day for each material breach, not to exceed three thousand dollars ($3,000) for each occurrence of the material breach.

3. For a third or further material breach of the same nature that occurs within those same twelve (12) months, and if the SMCTC has provided notice to the state franchise holder of the material breach pursuant to California Public Utilities Code Section 5900(e) and a penalty has been assessed, two thousand five hundred dollars ($2,500) per day for each material breach, not to exceed seven thousand five hundred dollars ($7,500) for each occurrence of the material breach. (Ord. 2009-02, Add, 02/03/2009)