Bill Text: IN HB1432 | 2013 | Regular Session | Introduced
Bill Title: Video service franchise fee.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Utilities and Energy [HB1432 Detail]
Download: Indiana-2013-HB1432-Introduced.html
Citations Affected: IC 8-1-34-23.
Synopsis: Video service franchise fee. Provides that a provider of
video service to Indiana customers under: (1) a certificate of franchise
authority issued by the utility regulatory commission; or (2) an
unexpired local franchise issued by a local unit before July 1, 2006;
may not be required to pay a franchise fee to any local unit with respect
to any calendar quarter or other reporting period that begins after June
30, 2015.
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Utilities and Energy.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
(b) This subsection applies to a holder or other provider providing video service in a unit in which a provider of video service is required on June 30, 2006, to pay a franchise fee based on a percentage of gross revenues. The holder's or provider's gross revenue shall be determined as follows:
(1) If only one (1) local franchise is in effect on June 30, 2006, the holder or provider shall determine gross revenue as the term is defined in the local franchise in effect on June 30, 2006.
(2) If:
(A) more than one (1) local franchise is in effect on June 30, 2006; and
(B) the holder or provider is subject to a local franchise in the unit on June 30, 2006;
the holder or provider shall determine gross revenue as the term is defined in the local franchise to which the holder or provider is subject on June 30, 2006.
(3) If:
(A) more than one (1) local franchise is in effect on June 30, 2006; and
(B) the holder is not subject to a local franchise in the unit on June 30, 2006;
the holder shall determine gross revenue as the term is defined in the local franchise in effect on June 30, 2006, that is most favorable to the unit.
(c) This subsection does not apply to a holder that is required to determine gross revenue under subsection (b). The holder shall include the following in determining the gross revenue received during the quarter with respect to a particular unit:
(1) Fees and charges charged to subscribers for video service provided by the holder. Fees and charges under this subdivision include the following:
(A) Recurring monthly charges for video service.
(B) Event based charges for video service, including pay per view and video on demand charges.
(C) Charges for the rental of set top boxes and other equipment.
(D) Service charges related to the provision of video service, including activation, installation, repair, and maintenance charges.
(E) Administrative charges related to the provision of video service, including service order and service termination charges.
(2) Revenue received by an affiliate of the holder from the affiliate's provision of video service, to the extent that treating the revenue as revenue of the affiliate, instead of revenue of the holder, would have the effect of evading the payment of fees that would otherwise be paid to the unit. However, revenue of an affiliate may not be considered revenue of the holder if the revenue is otherwise subject to fees to be paid to the unit.
(d) This subsection does not apply to a holder that is required to determine gross revenue under subsection (b). The holder shall not
include the following in determining the gross revenue received during
the quarter with respect to a particular unit:
(1) Revenue not actually received, regardless of whether it is
billed. Revenue described in this subdivision includes bad debt.
(2) Revenue received by an affiliate or any other person in
exchange for supplying goods and services used by the holder to
provide video service under the holder's certificate.
(3) Refunds, rebates, or discounts made to subscribers,
advertisers, the unit, or other providers leasing access to the
holder's facilities.
(4) Revenue from providing service other than video service,
including revenue from providing:
(A) telecommunications service (as defined in 47 U.S.C.
153(46));
(B) information service (as defined in 47 U.S.C. 153(20)),
other than video service; or
(C) any other service not classified as cable service or video
programming by the Federal Communications Commission.
(5) Any fee imposed on the holder under this chapter that is
passed through to and paid by subscribers, including the franchise
fee:
(A) imposed under section 24 of this chapter for the quarter
immediately preceding the quarter for which gross revenue is
being computed; and
(B) passed through to and paid by subscribers during the
quarter for which gross revenue is being computed.
(6) Revenue from the sale of video service for resale in which the
purchaser collects a franchise fee under:
(A) this chapter; or
(B) a local franchise agreement in effect on July 1, 2006;
from the purchaser's customers. This subdivision does not limit
the authority of a unit, or the commission on behalf of a unit, to
impose a tax, fee, or other assessment upon the purchaser under
47 U.S.C. 542(h).
(7) Any tax of general applicability:
(A) imposed on the holder or on subscribers by a federal, state,
or local governmental entity; and
(B) required to be collected by the holder and remitted to the
taxing entity;
including the state gross retail and use taxes (IC 6-2.5) and the
utility receipts tax (IC 6-2.3).
(8) Any forgone revenue from providing free or reduced cost
cable video service to any person, including:
(A) employees of the holder;
(B) the unit; or
(C) public institutions, public schools, or other governmental
entities, as required or permitted by this chapter or by federal
law.
However, any revenue that the holder chooses to forgo in
exchange for goods or services through a trade or barter
arrangement shall be included in gross revenue.
(9) Revenue from the sale of:
(A) capital assets; or
(B) surplus equipment that is not used by the purchaser to
receive video service from the holder.
(10) Reimbursements that:
(A) are made by programmers to the holder for marketing
costs incurred by the holder for the introduction of new
programming; and
(B) exceed the actual costs incurred by the holder.
(11) Late payment fees collected from customers.
(12) Charges, other than those described in subsection (c)(1), that
are aggregated or bundled with charges described in subsection
(c)(1) on a customer's bill, if the holder can reasonably identify
the charges on the books and records by the holder in the regular
course of business.
(e) If, under the terms of the holder's certificate, the holder provides
video service to any unincorporated area in Indiana, the holder shall
calculate the holder's gross income received from each unincorporated
area served in accordance with:
(1) subsection (b); or
(2) subsections (c) and (d);
whichever is applicable.
(f) If a unit served by the holder under a certificate annexes any
territory after the certificate is issued or renewed under this chapter, the
holder shall:
(1) include in the calculation of gross revenue for the annexing
unit any revenue generated by the holder from providing video
service to the annexed territory; and
(2) subtract from the calculation of gross revenue for any unit or
unincorporated area:
(A) of which the annexed territory was formerly a part; and
(B) served by the holder before the effective date of the
annexation;
the amount of gross revenue determined under subdivision (1);
beginning with the calculation of gross revenue for the calendar quarter in which the annexation becomes effective. The holder shall notify the commission of the new boundaries of the affected service areas as required under section 20(a)(7) of this chapter.
(g) This section expires January 1, 2016.
