BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 185
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          Date of Hearing:  April 17, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                AB 185 (Roger Hernández) - As Amended:  April 2, 2013
          
          SUBJECT  :  Open and public meetings: televised meetings.

          SUMMARY  :  Requires a local agency that collects a franchise fee  
          pursuant to the Digital Infrastructure and Video Competition Act  
          to televise the open and public meetings of its legislative body  
          and planning commission, and provides that an audio or video  
          recording of an open and public meeting may be erased or  
          destroyed after two years.  Specifically,  this bill  :  

          1)Requires a local agency that collects a franchise fee adopted  
            pursuant to the Digital Infrastructure and Video Competition  
            Act of 2006 (DIVCA) from the holder of a state franchise that  
            provides public, educational, and governmental access (PEG)  
            channels to televise the open and public meetings of its  
            legislative body and planning commission.  

          2)Requires, if it is financially feasible to do so, these same  
            local agencies to also televise the open and public meetings  
            of their advisory committees that are governed by the Ralph M.  
            Brown Act (Brown Act).

          3)Allows a local agency to utilize any portion of franchise fees  
            collected from the holder of a state franchise pursuant to  
            DIVCA to televise the open and public meetings of the local  
            agency, including, but not limited to, any necessary expenses  
            for implementing the televising of the local agency's open and  
            public meetings.

          4)Provides that, if there are franchise fee moneys available in  
            excess of the amount necessary to televise open and public  
            meetings as required under this bill, the local agency may use  
            that money to fund live streaming of its open and public  
            meetings on the Internet.

          5)Defines "necessary expenses" to include, but not be limited  
            to, the hiring of personnel, the purchase and maintenance of  
            equipment, or the rental or leasing of production facilities.

          6)Provides that an audio or video recording of an open and  








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            public meeting made for whatever purpose by or at the  
            direction of the local agency may be erased or destroyed two  
            years after the recording.

          7)Finds and declares that:

             a)   There have been over 50 public access channel closures  
               in California municipalities.  Seven of those  
               municipalities are found within the boundaries of the 48th  
               Assembly District;

             b)   Unfortunately, many local governments are not utilizing  
               General Fund moneys or franchise fees for support, in  
               addition to PEG channel funds, for the operation of public  
               access television.  Not televising open meetings or  
               providing public access television is a threat to accessing  
               public information in a readily available medium; and,

             c)   PEG channels permit schools, governments, individuals,  
               and groups to provide and receive information about local  
               events, emergencies, and issues.  PEG channels encourage  
               the creation of local programming not only by local  
               municipalities but by civic groups and nonprofits to  
               promote localism and civic engagement.

          8)Provides that no reimbursement is required by this bill under  
            Section 6 of Article XIII B of the California Constitution  
            because the only costs that may be incurred by a local agency  
            or school district under this bill are the costs of complying  
            with the Brown Act and subdivision (c) of Section 36 of  
            Article XIII of the California Constitution provides that  
            costs of this type are not reimbursable.

           EXISTING LAW  :

          1)Provides, pursuant to DIVCA, that the Public Utilities  
            Commission (PUC) is the sole franchising authority for a state  
            franchise to provide video service, and outlines the  
            procedures for issuing a state video franchise. 

          2)Establishes a state franchise fee payable as rent or a toll  
            for the use of the public rights-of-way by holders of the  
            state franchise issued pursuant to DIVCA and sets the amount  
            of the franchise fee at 5% of gross revenues, as specified,  
            unless the local entity adopts an ordinance setting the amount  








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            of the franchise fee at less than 5%.

          3)Allows local entities to use the franchise fee for any lawful  
            purpose.

          4)Establishes requirements for the provision of PEG channels by  
            holders of a state franchise and requires PEG channels to be  
            for the exclusive use of the local entity or its designee to  
            provide public, educational, and governmental channels.

          5)Provides for the financial support of PEG programming on a  
            roll-out basis depending on the expiration of franchises that  
            were in place prior to DIVCA and, thereafter, allows a local  
            entity to establish a fee via ordinance to support PEG channel  
            facilities, as specified, that shall not exceed 1% of the  
            franchise holder's gross revenues.

          6)Requires, under the Brown Act, that all meetings of a  
            legislative body be open and public and all persons be  
            permitted to attend unless a closed session is authorized. 

          7)Provides that any audio or video recording of an open and  
            public meeting made for whatever purpose by or at the  
            direction of the local agency shall be subject to inspection  
            pursuant to the California Public Records Act but may be  
            erased or destroyed 30 days after the recording.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

          1)This bill requires all local agencies that receive franchise  
            fees from state video franchise holders that provide PEG  
            channels to televise the open and public meetings of their  
            governing boards and planning commissions, and to televise the  
            open and public meetings of their advisory committees that are  
            governed by the Brown Act, if it is financially feasible to do  
            so.  This bill also provides that an audio or video recording  
            of an open and public meeting made for whatever purpose by or  
            at the direction of the local agency may be erased or  
            destroyed two years after the recording.  This bill is  
            sponsored by the author.

          2)According to the author's office, "Some local governments are  
            not utilizing funds already being collected for the purpose of  








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            funding Public Access television.  Not televising open  
            meetings, even after funds are being collected from consumers  
            to do so, poses a threat to good governance, transparency and  
            the public's access to information in a readily available  
            medium...This bill ensures that these existing funds be  
            utilized for their purpose, rather than be used for unintended  
            purposes or returned to consumers."

          3)AB 2987 (Nuñez), Chapter 700, Statutes of 2006, or DIVCA, was  
            one of the more highly debated bills in the 2005-2006  
            legislative session.  The purpose of DIVCA was twofold: to  
            promote widespread competition in the video and broadband  
            markets; and, to accelerate the deployment of video and  
            advanced broadband infrastructure and services within  
            California, especially in unserved and underserved areas.

            DIVCA brought about major changes for local governments by  
            allowing telecommunications companies to obtain a single  
            franchise from the PUC in order to deliver Internet and  
            television services to homes and business, instead of having  
            to negotiate for individual franchises with each city and  
            county.  DIVCA was supported by a broad coalition of business  
            and labor groups, and community groups representing the needs  
            of minorities, among other organizations, and was opposed  
            mainly by cities, counties, and community television groups.

          4)One of the hotly-contested issues during DIVCA debates  
            involved PEG programming under the new franchise structure.   
            Supporters of community access television were concerned that  
            DIVCA would erode the traditional level of financial support  
            PEG programming had received under local franchise agreements.  
             DIVCA includes the following provisions in this regard:

             a)   Provides that the franchise holder must designate a  
               sufficient amount of capacity on its network to provide the  
               same number of PEG channels that the incumbent cable  
               operator prior to DIVCA provided within the local entity's  
               jurisdiction.  If less than three PEG channels were  
               provided within that local entity, the local entity was  
               allowed to request the holder to provide up to three PEG  
               channels if they produce more than 56 hours per week of  
               original, locally produced programming on the current  
               channels;

             b)   Requires video service providers to offer PEG  








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               programming to all subscribers, and to provide the PEG  
               programming at a similar quality and functionality as it  
               offers for its basic tier of service;

             c)   Requires incumbent cable operators to continue to offer  
               the same level of PEG support as they did under their  
               franchise agreements through January 1, 2009, or until the  
               franchise expires, or would have expired had it not been  
               abrogated, whichever is later.  Requires all holders of  
               state franchises to contribute a pro rata share of the  
               ongoing cash obligations of the incumbent cable operator  
               for PEG support; and,

             d)   Provides that, after the expiration of current franchise  
               agreements, local entities can require all video providers  
               to pay a fee of up to 1% of gross revenue to support PEG  
               operations.  If the franchise agreement that was in place  
               requires the incumbent cable operator to pay a fee greater  
               than 1%, the local entity can set the fee at that higher  
               level, not to exceed 3%.

            DIVCA also requires the holder of a state franchise to pay  
            rent to each local entity where it provides video service, in  
            the form of a franchise fee based on gross revenue for the use  
            of the public right-of-way.  This franchise fee was set at 5%  
            of gross revenue or a lower level set by the local government  
            through ordinance.  DIVCA allows local jurisdictions to use  
            franchise fees for any lawful purpose.

          5)According to information provided by the author's office and  
            prepared by the Buske Group, there have been 50 public access  
            television closures since the passage of DIVCA.  However, the  
            data contains a footnote stating that no government access  
            operations in the state have been closed due to DIVCA.

          6)Opponents have raised several concerns with this measure:

             a)   Franchise fees are collected in return for the use of  
               public rights-of-way, and their use is allowable for any  
               lawful purpose.  Franchise fees were never intended to be  
               collected for PEG programming.  PEG fees are dedicated to  
               this purpose.  Franchise fees contribute to local agencies  
               general funds and are used for critical government services  
               such as police and fire services.  Opponents are concerned  
               that AB 185 will force local agencies to divert general  








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               fund resources to pay for the bill's mandate to televise  
               local agency meetings;

             b)   Opponents assert that this bill is contrary to the  
               policy direction adopted by the Legislature in approving  
               DIVCA with regard to PEG programming, and that this bill  
               inappropriately expects local agencies to pay for this  
               change in policy direction;

             c)   Opponents also contend that this bill is an unreasonable  
               mandate on local agencies that are already strapped for  
               resources by requiring the televising of all open and  
               public meetings.  For example, Butte County reports that it  
               would have to televise meetings for more than 30 committees  
               and advisory bodies;

             d)   The author has not provided justification for changing  
               the 30-day retention period for audio or video recordings  
               of open and public meetings to a two-year time frame.   
               Local agencies are concerned with their ability to comply  
               with this provision with existing resources;  and,

             e)   Opponents also raise concerns with the bill's lack of  
               definition for what is "financially feasible," which could  
               lead to confusion regarding how franchise fees are to be  
               expended.

          7)It is also worth noting that PEG channels provide more than  
            just government programming.  In its own findings and  
            declarations, the bill discusses the importance and value of  
            public and educational programming.  By prioritizing  
            government programming, this bill could perversely limit  
            public and educational programming.

           8)Support arguments  :  The author's office argues that this bill  
            promotes transparency and accountability at the local level of  
            governance.

             Opposition arguments  :  Opponents argue that this bill is an  
            unfunded and unreasonable mandate that is inconsistent with  
            state policy.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 








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          None on file

           Opposition 
           
          Butte County Board of Supervisors
          California State Association of Counties
          City of West Covina
          League of California Cities
          Los Angeles County Board of Supervisors
          Marin County Council of Mayors and Council Members
          Rural County Representatives of California
          Sacramento County Board of Supervisors
          Urban Counties Caucus

           
          Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958