Legislation

Currently, the City of Los Angeles has 14 cable television franchise areas that are served by three incumbent cable operators; Time Warner with approximately 600,000 subscribers, Cox with approximately 10,000 subscribers and Charter with less than 60 subscribers. The City has provided cable television franchising regulatory authority of its cable television operators for over 30 years. The City's oversight of its incumbent cable television operators in the areas of consumer services, financial payments due the City for the use of its public rights-of-way, technical compliance with all local, state and federal laws, and Public, Educational and Governmental Access support have been ensured by City-issued franchises and ordinances and the City's vigilant enforcement of those ordinances.

Under changes brought by the State legislature and Governor, on September 29, 2006, Governor Arnold Schwarzenegger signed in to law the Digital Infrastructure and Video Competition Act of 2006 (DIVCA). The California Public Utilities Code was amended under DIVCA to preempt the City's cable television franchising rights to the California Public Utilities Commission (CPUC) as of January 1, 2007. The CPUC is mandated to provide state-issued franchises to all compliant applicants as of April 1, 2007.

DIVCA provides for the City to continue to collect a 5% gross revenue fee from the incumbent cable operators and after January 1, 2007, from the telecommunications companies that offer video television services within the City's limits. Under DIVCA the City will only enforce Federal and State Consumer Service Standards against a state franchise holder.