BILL NUMBER: AB 2232	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member De La Torre

                        FEBRUARY 20, 2008

   An act to amend Sections 5810, 5910, and 7910 of the Public
Utilities Code, relating to video service franchises.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2232, as introduced, De La Torre. Video service franchises.
   Existing law, the Digital Infrastructure and Video Competition Act
of 2006, establishes a procedure for the issuance of state
franchises for the provision of video service, defined to include
cable service and open-video systems, administered by the Public
Utilities Commission. The act includes findings and declarations of
the Legislature with respect to certain matters, including that the
Legislature intends that collective bargaining agreements be
respected.
   This bill would state the intent of the Legislature that
collective bargaining agreements be respected and the well-being of
industry employees be promoted.
   The act requires background checks be conducted for applicants for
employment by the holder of a video franchise only when those
applicants will have direct contact with, or access to, the holder's
network, central office, or subscriber premises. The act requires an
equivalent background check be conducted for persons hired under a
personal services contract, or hired by independent contractors or
vendors of the holder of a video franchise, only when those hires
have direct contact with, or access to, the holder's network, central
office, or subscriber premises.
   This bill would prohibit any individual from entering upon the
premises of a customer on behalf of the holder of a video franchise
unless he or she has had a background check. The bill would require
background checks be conducted for applicants for employment by the
holder of a video franchise if those applicants have direct contact
with, or access to, the holder's network or central office. The bill
would require an equivalent background check be conducted for persons
hired under a personal services contract, or hired by independent
contractors or vendors of the holder of a video franchise, if those
hires have direct contact with, or access to, the holder's network or
central office.
   Existing law requires background checks be conducted for
applicants for employment by a telephone corporation only when those
applicants will have direct contact with, or access to, the telephone
corporation's network, central office, or subscriber premises.
Existing law requires an equivalent background check be conducted for
persons hired under a personal services contract, or hired by
independent contractors or vendors of a telephone corporation, only
when those hires have direct contact with, or access to, the
telephone corporations's network, central office, or subscriber
premises.
   This bill would prohibit any individual from entering upon the
premises of a customer on behalf of a telephone corporation unless he
or she has had a background check. The bill would require background
checks be conducted for applicants for employment by a telephone
corporation if those applicants have direct contact with, or access
to, the telephone corporations's network or central office. The bill
would require an equivalent background check be conducted for persons
hired under a personal services contract, or hired by independent
contractors or vendors of a telephone corporation, when those hires
have direct contact with, or access to, the telephone corporation's
network or central office.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5810 of the Public Utilities Code is amended to
read:
   5810.  (a) The Legislature finds and declares all of the
following:
   (1) Increasing competition for video and broadband services is a
matter of statewide concern for all of the following reasons:
   (A) Video and cable services provide numerous benefits to all
Californians including access to a variety of news, public
information, education, and entertainment programming.
   (B) Increased competition in the cable and video service sector
provides consumers with more choice, lowers prices, speeds the
deployment of new communication and broadband technologies, creates
jobs, and benefits the California economy.
   (C) 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.
   (D) Competition for video service should increase opportunities
for programming that appeals to California's diverse population and
many cultural communities.
   (2) Legislation to develop this new process should adhere to the
following principles:
   (A) Create a fair and level playing field for all market
competitors that does not disadvantage or advantage one service
provider or technology over another.
   (B) Promote the widespread access to the most technologically
advanced cable and video services to all California communities in a
nondiscriminatory manner regardless of socioeconomic status.
   (C) Protect local government revenues and control of public
rights-of-way.
   (D) Require market participants to comply with all applicable
consumer protection laws.
   (E) Complement efforts to increase investment in broadband
infrastructure and close the digital divide.
   (F) Continue access to and maintenance of the public, education,
and government (PEG) channels.
   (G) Maintain all existing authority of the California Public
Utilities Commission as established in state and federal statutes.
   (3) The public interest is best served when sufficient funds are
appropriated to the commission to provide adequate staff and
resources to appropriately and timely process applications of video
service providers and to ensure full compliance with the requirements
of this division. It is the intent of the Legislature that, although
video service providers are not public utilities or common carriers,
the commission shall collect any fees authorized by this division in
the same manner and under the same terms as it collects fees from
common carriers, electrical corporations, gas corporations, telephone
corporations, telegraph corporations, water corporations, and every
other public utility providing service directly to customers or
subscribers subject to its jurisdiction such that it does not
discriminate against video service providers or their subscribers.
   (4) Providing an incumbent cable operator the option to secure a
state-issued franchise through the preemption of an existing cable
franchise between a cable operator and any political subdivision of
the state, including, but not limited to, a charter city, county, or
city and county, is an essential element of the new regulatory
framework established by this act as a matter of statewide concern to
best ensure equal protection and parity among providers and
technologies, as well as to achieve the goals stated by the
Legislature in enacting this act.
   (b) It is the intent of the Legislature that a video service
provider shall pay as rent a franchise fee to the local entity in
whose jurisdiction service is being provided for the continued use of
streets, public facilities, and other rights-of-way of the local
entity in order to provide service. The Legislature recognizes that
local entities should be compensated for the use of the public
rights-of-way and that the franchise fee is intended to compensate
them in the form of rent or a toll, similar to that which the court
found to be appropriate in Santa Barbara County Taxpayers Association
v. Board of Supervisors for the County of Santa Barbara (1989) 209
Cal. App. 3d 940.
   (c) It is the intent of the Legislature that collective bargaining
agreements be respected  and the well-being of industry
employees be promoted  .
   (d) It is the intent of the Legislature that the definition of
gross revenues in this division shall result in local entities
maintaining their existing level of revenue from franchise fees.
  SEC. 2.  Section 5910 of the Public Utilities Code is amended to
read:
   5910.  (a) The holder of a state franchise shall perform
background checks of applicants for employment, according to 
current   usual  business practices.
   (b) A background check equivalent to that performed by the holder
shall also be conducted on all of the following:
   (1) Persons hired by a holder under a personal service contract.
   (2) Independent contractors and their employees.
   (3) Vendors and their employees.
   (c) Independent contractors and vendors shall certify that they
have obtained the background checks required pursuant to subdivision
(b), and shall make the background checks available to the holder
upon request.
   (d) Except as otherwise provided  in paragraph (1) of
subdivision (e) or  by contract, the holder of a state franchise
shall not be responsible for administering the background checks and
shall not assume the costs of the background checks of individuals
who are not applicants for employment of the holder.
   (e) (1)  Subdivision (a) only   An individual
shall not, on behalf of a holder of a state franchise, enter upon
the premises of a customer unless he or she has   ad the
background check required by subdivision (a). 
    (2)     Subdivision (a)  applies to
applicants for employment for positions that would allow the
applicant to have direct contact with  ,  or access to 
,  the holder's network  ,   or 
central office  , or subscriber premises,  and 
would require the applicant to  perform activities that involve
the installation, service, or repair of the holder's network or
equipment. 
   (2) 
    (3)  Subdivision (b)  only  applies to
 persons that have  any person who has 
direct contact with or access to the holder's network, central office
 , or subscriber premises, and perform   and
performs  activities that involve the installation, service, or
repair of the holder's network or equipment.
   (f) This section does not apply to temporary workers performing
emergency functions to restore the network of a holder to its normal
state in the event of a natural disaster or an emergency that
threatens or results in the loss of service.
  SEC. 3.  Section 7910 of the Public Utilities Code is amended to
read:
   7910.  (a) Telephone corporations shall perform background checks
of applicants for employment, according to  current 
 usual  business practices.
   (b) A background check equivalent to that performed by the
contracting telephone corporation shall also be conducted on all of
the following:
   (1) Persons hired by a telephone corporation under a personal
services contract.
   (2) Independent contractors and their employees.
   (3) Vendors and their employees.
   (c) Independent contractors and vendors shall certify that they
have obtained the background checks required pursuant to subdivision
(b), and shall make the background checks available to the telephone
corporation upon request.
   (d) Except as otherwise provided  in paragraph (1) of
subdivision (e) or  by contract, the telephone corporation shall
not be responsible for administering the background checks and shall
not assume the cost of the background checks of individuals who are
not applicants for employment of the telephone corporation.
   (e) (1)  Subdivision (a) only   An  
individual shall not, on behalf of the telephone corporation, enter
upon the premises of a customer unless he or she has had the
background check required by subdivision (a). 
    (2)     Subdivision (a)  applies to
applicants for employment for positions that would allow the
applicant to have direct contact with or access to the telephone
network  ,   or  the telephone corporation'
s central office  , or customer premises,  and would
require the applicant to perform activities that involve the
installation, service, or repair of the telephone network or
telephone equipment. 
   (2) 
    (3)  Subdivision (b)  only  applies to
 persons that have   any person that has 
direct contact with or access to the telephone network  ,
  or  the telephone corporation's central office
 , or customer premises, and perform   and
performs  activities that involve the installation, service, or
repair of the telephone network or telephone equipment.
   (f) This section does not apply to temporary workers performing
emergency functions to restore the network of a telephone corporation
to its normal state in the event of a natural disaster or an
emergency that threatens or results in the loss of service.
   (g) The provisions of this section apply only to applicants for
employment who apply for employment on and after January 1, 2003, and
to contracts entered into on or after January 1, 2003.