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
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Utilities and Energy.
A BILL FOR AN ACT to amend the Indiana Code concerning
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;