141 
‘‘(i) CONTINUED SERVICE.—Except as 
provided in subparagraph (D), a fran-
chising authority may require a cable oper-
ator or video service provider with a fran-
chise in effect on the date of enactment of 
the Video Competition and Savings for Con-
sumers Act of 2006 to continue to provide 
any institutional network it was required to 
provide on the date of enactment of that Act 
notwithstanding the expiration or termi-
nation of that franchise pursuant to section 
381(b) of the Video Competition and Sav-
ings for Consumers Act of 2006. 
‘‘(ii) NEW NETWORK NOT REQUIRED.— 
A franchising authority may not require a 
video service provider to construct a new in-
stitutional network. 
‘‘(D) SPECIAL RULE.—In Hawaii— 
‘‘(i) subparagraph (A)(ii) shall be ap-
plied by inserting ‘and institutional net-
works’ after ‘governmental access facilities’; 
and 
‘‘(ii) subparagraph (C)(i) shall be ap-
plied by inserting ‘or had committed to pro-
vide’ after ‘required to provide’.’’; and 
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142 
(2) by striking subsections (d) through (h), redes-
ignating subsection (i) as subsection (h), and insert-
ing the following after subsection (c): 
‘‘(d) OTHER TAXES, FEES, AND ASSESSMENTS NOT 
AFFECTED.—Except as otherwise provided in this section, 
nothing in this section shall be construed to modify, impair, 
supersede, or authorize the modification, impairment, or 
supersession of, any State or local law pertaining to tax-
ation. 
‘‘(e) ANNUAL REVIEW.— 
‘‘(1) FRANCHISING
AUTHORITY
AUDIT
PROCE-
DURE.—A franchising authority may, upon reason-
able written request, but no more than once in any 
12-month period, review the business records of a 
video service provider to the extent reasonably nec-
essary to ensure payment of the fees required by this 
section. The review may include the methodology used 
by the video service provider to assign portions of the 
revenue from video service that may be bundled or 
functionally integrated with other services, capabili-
ties, or applications. The review shall be conducted in 
accordance with procedures established by the Com-
mission. 
‘‘(2) AVAILABILITY OF BOOKS AND RECORDS.— 
Upon request under paragraph (1), a video service 
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143 
provider shall make available its books and records 
for periodic audit by a franchising authority. The 
franchising authority shall treat information obtained 
in the course of such an audit as confidential and 
proprietary and protect sensitive information from 
public disclosure. 
‘‘(3) COST RECOVERY.—To the extent that the re-
view under paragraph (1) identifies an under-
payment of more than 5 percent of any fee required 
by this section for the period of review, the video serv-
ice provider shall reimburse the franchising authority 
the reasonable costs of any such review conducted by 
an independent third party with respect to such fee. 
The costs of any contingency fee arrangement between 
the franchising authority and the independent re-
viewer shall not be subject to reimbursement. 
‘‘(4) LIMITATION.—Any fee that is not reviewed 
by a franchising authority within 3 years after it is 
paid or remitted shall not be subject to later review 
by the franchising authority under this subsection 
and shall be deemed accepted in full payment by the 
franchising authority. 
‘‘(f) GAAP STANDARDS.—For purposes of this section, 
all financial determinations and computations shall be 
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