Assembly Bill 41 (Holden)

Summary of the Bill

Originally, AB 41, the Digital Equity in Video Franchising Act of 2023 (DEVFA), updated and reformed the Digital Infrastructure & Video Competition Act (DIVCA) of 2006, to meet the needs of California communities left on the wrong side of the digital divide. However, the recent amendments have stripped AB 41 of its equity, anti-discrimination, and equal service provisions – central principles of the original bill and provisions crucial to solving the digital divide and providing broadband service to households and communities that have been digitally redlined. The amendments not only threaten the regulatory, budgetary, and policy momentum in the digital equity space made over the last couple of years but may actually serve to set California’s efforts to provide affordable, high-quality broadband service to all back 20 years. For these reasons, we, along with our digital equity coalition partners, have taken the regretful yet necessary position to now strongly oppose AB 41.

Background

When the Digital Infrastructure & Video Competition Act (DIVCA) of 2006 was passed it was expected to increase competition between cable and internet service providers and, as a result, improve broadband access, enhance service quality, and reduce prices. After 17 years, the evidence is clear: DIVCA has failed to deliver on these promises. Today, millions of households across California still lack access to fast, reliable, and affordable broadband services and overall competition has actually decreased in certain areas of the state.

Amendments to AB 41 that NextGen Opposes:

• Further restricts the California Public Utilities Commission’s (CPUC) regulatory and enforcement capability as the state’s sole franchise authority and adds new restrictions that undermine provisions in the current DIVCA law of 2006.
• Weakens the limited customer service protection authority granted to the CPUC in SB 28.
• Strikes all antidiscrimination benchmarks and all equal access provisions.