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BACKGROUND California Assembly Bill 2987 (AB 2987), the Digital Infrastructure and Video Competition Act (DIVCA) shifted oversight of cable television franchises from local governments to the state through the California Public Utilities Commission. The passage of AB 2987 caused limited use of PEG revenue collected from subscribers for capital costs only. PEG fees continue to be collected from subscribers by the cable operators. These fees are received by the City and are now specifically designated for capital costs only related to public education. This designation has affected TV 30 as well as public access channels throughout the country with similar state laws. The impact to the City has resulted in a General Fund Subsidy to TV 30 of approximately $140,000 per year for ongoing operations and limited use of PEG revenues of public education capital projects throughout the city such as equipment for city facilities that may host public meetings. Similar impacts are shared by the partner cities that jointly fund TV 30, Dublin and Livermore. The Community Access Preservation Act (CAP Act) was introduced in May 2011 in the 112th Congress as an attempt to correct the consequences of DIVCA. Unfortunately, the legislation made little progress. On December 10, 2013, U.S. Senator Tammy Baldwin (Wisconsin) introduced U.S. Senate Bill 1789 in the 113th Congress to address the same problems. The passage of U.S. Senate Bill 1789 would amend the Communications Act of 1934 to protect Public Education and Government (PEG) channels and would allow the City to use PEG revenue for operations in addition to equipment and capital expenditures. Submitted by: Fiscal Review: Approved b : Maria Ojeda Emily Wagner Nelson Fialho Assistant to the Director of Finance City Manager City Manager Attachments: 1. Resolution 2. U.S. Senate Bill 1789 Page 2 of 2