Amends TCA Title 7, Chapter 59 and Title 65, Chapter 25.

Under present law, the Competitive Cable and Video Services Act (the "act") creates a fair franchising process for cable and video services. Under the act, any entity, person, or joint venture, seeking to provide cable or video services over a cable system or video service network facility in this state may elect from the franchise options as set forth in the act. A cable or video service provider must not provide cable or video service without a franchise obtained pursuant to the act. This bill redefines "cable services" and "video services" for purposes of the act.<br /> <br /> CABLE SERVICE<br /> <br /> Under present law, "cable service” means the one-way transmission to subscribers of (i) video programming or other programming service, and (ii) subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. However, the term does not include video programming provided by a commercial mobile service provider, or video programming accessed via a service that enables end users to access content, information, electronic mail, or other services offered over the internet. <br /> <br /> This bill revises the definition of "cable service" to include video programming accessed via a service that enables end users to access content, information, electronic mail, or other services offered over the internet, including streaming video content. This bill also clarifies that the term does not include video programming provided by a commercial mobile service provider. As used in this bill, "commercial mobile service" means mobile service that is for profit and makes an interconnected service available to the public.<br /> <br /> VIDEO SERVICE<br /> <br /> Under present law, "video service" means the provision of video programming by a video service provider through wireline facilities, without regard to delivery technology, including internet protocol technology. However, the term does not include (i) video programming provided by a commercial mobile service provider, (ii) direct-to-home satellite services, (iii) video programming accessed via a service that enables end users to access content, information, electronic mail, or other services offered over the internet, including streaming video content, regardless of the provider of the internet access services; or (iv) cable service. <br /> <br /> This bill revises the definition of "video service" to include video programming accessed via a service that enables end users to access content, information, electronic mail, or other services offered over the internet, including streaming video content.<br /> <br /> This bill clarifies that the term continues to not include (i) video programming provided by a commercial mobile service provider, (ii) direct-to-home satellite services, or (iii) cable services. <br /> <br /> GROSS REVENUES<br /> <br /> Under present law, the act requires a holder of a state-issued certificate of franchise authority to pay a franchise fee equal to five percent of gross revenues derived from (i) the provision of cable or video service to subscribers located within the municipality or unincorporated areas of the county and (ii) nonsubscribers for cable and video advertising services and as commissions for cable and video home shopping services. <br /> <br /> Additionally, under present law, the act requires municipalities and counties to be eligible to receive support fees for state-authorized public, educational, and governmental access channels, “PEG” channels. The support fee payments are due by the holder of a state-issued certificate of franchise authority, from the time cable or video services are being offered for purchase in that municipality or county. Support payments are calculated based on whether the cable or video service provider makes periodic or lump sum PEG support payments, the gross revenues the provider received, and whether past due support fee obligations are owed by the provider.<br /> <br /> Following the initial PEG support payment period, a municipality or county that had received initial PEG support payments must be entitled to continue to receive the support payments based on the gross revenues received from the initial PEG support period. A municipality or county not receiving initial PEG support payments, may require that a holder of a state-issued certificate of franchise authority pay state-authorized PEG support payments in an amount not to exceed one percent of gross revenue, for the sole purpose of paying capital costs of equipment in connection with the operation of PEG channels; provided, that the aggregate amount of state-authorized PEG support payments together with any franchise fees must not exceed 5 percent of gross revenues.<br /> <br /> This bill expands the definition of "gross revenues" in relation to the act to include revenues received from subscribers by franchisees for providing cable, video, or internet access services, instead of only including video and cable services.<br /> <br /> Additionally, this bill specifies that "gross revenues" does not include revenue from services provided over the cable system or video service system that are associated with or classified as non-cable or non-video services under federal law, including (i) revenues received from providing telecommunications services, (ii) information services other than cable or video services or internet access services, or (iii) directory or internet advertising services, including yellow pages, white pages, banner, and electronic publishing advertising. Where the sale of such non-cable or non-video service is bundled with the sale of a cable or video service and sold for a single non-itemized price, the term "gross revenues" includes only those revenues that are attributable to cable or video services based on the provider's books and records.<br />