AZ HB2579

Establishes a state-level licensing system through the Secretary of State for video service providers to obtain certificates of authority, effective December 31, 2019, preempting local government regulation of video service.

Creates definitions and regulatory framework for video service providers, video service networks, and related terms, with video service defined as multichannel video programming delivered by any technology including internet protocol.

Limits local government authority to charge video service providers only a license fee based on gross revenue (capped at 5% when combined with transaction privilege taxes) and generally applicable fees for highway use, construction permits, and inspections.

Allows incumbent cable operators to either continue operating under existing local licenses or terminate those licenses and obtain state certificates of authority; operators not obtaining state certificates become "holdover cable operators" subject to existing local license terms.

Establishes enforcement procedures through the Office of Administrative Hearings for complaints by local governments against video service providers and vice versa, with a two-month hearing timeline and appeal rights to superior court.