A measure that would strip cities of the power to regulate cable franchises and allow phone companies to enter the cable market cleared the state Legislature late Thursday and was on the verge of becoming law.
The measure, AB 2987 by Assembly Speaker Fabian Nu & #324;ez, D-Los Angeles, and Assemblyman Lloyd Levine, D-Van Nuys, would allow companies to seek statewide pay-television franchises from the California Public Utilities Commission instead of seeking franchises from local governments. Cities would still get a 5 percent cut of cable revenues, though the money would come from the state.
After passing the state Senate on a 33-4 vote on Wednesday, the amended bill went back to the state Assembly, which passed it by an overwhelming 64-5 margin.
The bill made it to Gov. Arnold Schwarzenegger’s desk after intense lobbying by phone companies chiefly AT & T; Inc. and Verizon Communications Inc. that were seeking admission into the lucrative pay-television market. It was opposed by existing cable franchise holders and local governments. Schwarzenegger has indicated he intends to sign the bill.
