Under State law effective January 1, 2007, the California Public Utilities Commission ("PUC") will have the authority to grant state video franchises ("State Franchises"). The City of Berkeley ("City") will acquire certain rights and responsibilities with respect to state video franchise holders. These include the receipt of a franchise fee and a fee for Public, Educational and Government ("PEG") purposes, both based on a percentage of the gross revenues of state franchise holders, as well as the establishment and enforcement of penalties for violations of customer service rules. (Ord. 7014-NS § 2, 2008)