XVIII. Renewal of a State Video Franchise

We remove state video franchise renewal provisions from the General Order. Formal consideration of comments on state video franchise renewals is deferred to Phase II.⁷⁸¹ In Phase II, we will address renewal issues only to the extent possible at the time of the proceeding. We recognize that we must develop a renewal process that is consistent with federal and state law applying to state video franchise holders, ⁷⁸² but federal and state law may change between now and 2017, the earliest a state video franchise may be renewed. ⁷⁸³

⁷⁸¹ Multiple parties argue that state video franchise renewals are governed by the federal Cable Act, which requires opportunities for public comment. Joint Cities Opening Comments at 11-13; Los Angeles County Opening Comments at 8-9; Oakland Reply Comments at 2-3. In addition, CCTA contends that the Commission exceeded its authority when tentatively concluding that only state video franchise holders in good standing are eligible to seek renewal of their franchises. CCTA Opening Comments at 8-9 (asserting that state video franchise holders are eligible to seek renewals of their state video franchises unless they are in violation of a final nonappealable court order or, pursuant to Public Utilities Code § 5890(g), in violation of nondiscrimination requirements). But see League of Cities/SCAN NATOA Reply Comments at 10 (arguing that whether a state video franchise holder is in compliance with the terms and conditions of its state video franchise is relevant to an applicant's financial, legal, and technical qualifications, which are subject to review during the renewal process).

⁷⁸² See Cal. Pub. Util. Code § 5850(c) ("Renewal of a state franchise shall be consistent with federal law and regulations.").

⁷⁸³ See id. at § 5850(a) ("A state issued franchise shall only be valid for 10 years after the date of issuance, and the video service provider shall apply for a renewal of the state franchise for an additional 10-year period if it wishes to continue to provide video services in the area covered by the franchise after the expiration of the franchise.").