Introduced

The act prohibits any franchising entity or other political subdivision of the state from requiring a competitive video service provider to obtain a separate franchise or otherwise impose any fees, license, or gross receipts tax in order to provide video service. A competitive video service provider must provide distribution capacity and make reasonable, technically feasible efforts to retransmit community programming.

Any entity that elects or seeks a video service authorization must describe the service area footprint in its application to the department of economic development. Any entity holding a video service authorization may amend its service area footprint upon notice to the department of economic development. An entity holding a video service authorization must provide at least ten days prior notice to each franchising entity with jurisdiction in a locality before providing video service in such entities jurisdiction.

The video service provider fee must be paid to the Department of Revenue on a quarterly basis and shall be calculated at a rate not to exceed five percent of gross revenue. In exchange for its collection, administration and distribution functions, the Department of Revenue will retain a collection fee of up to one percent, but not to exceed actual costs incurred, on all fees collected. The department may collect interest off such funds during the time between collection and distribution of the fees to the franchising entity. A competitive video service provider may identify and collect the amount of video service provider fee as a separate line item on the regular bill of each subscriber.

The Department of Revenue must be notified in writing within thirty days of any change in the franchise fee adopted by a political subdivision. Any such change in franchise fees may only take effect on the first day of a calendar quarter and only after a minimum of ninety days notice from the department of revenue to the video service provider. The Department of Revenue will have authority to audit any entity holding a video service authorization. The Department of Revenue must furnish a political subdivision with information requested to permit the political subdivision to review the payments of any competitive video service provider or incumbent cable operator.

The act prohibits a video service provider from denying access to service to any group of potential residential subscribers because of the income of residents in which such group resides.

JASON ZAMKUS