137 
‘‘(D) DISPUTE RESOLUTION.—If a dispute 
arises concerning the application of subpara-
graph (A), (B), or (C), the sole recourse of any 
party to the dispute shall be to file an action in 
a court of competent jurisdiction. 
‘‘(3) USE
OF
PUBLIC
RIGHTS-OF-WAY.—Any 
franchise shall be construed to authorize the construc-
tion of a video service system over public rights-of- 
way, and through easements, which is within the area 
to be served by the video service system and which 
have been dedicated for compatible uses, except that 
in using such easements the video service provider 
shall ensure— 
‘‘(A) that the safety and functioning of the 
property and the safety of other persons not be 
adversely affected by the installation or construc-
tion of facilities necessary for a video service sys-
tem; and 
‘‘(B) that the cost of the installation, con-
struction, operation, or removal of such facilities 
be borne by the video service provider or sub-
scriber, or a combination of both.’’; and 
(2) by striking paragraph (1) of subsection (b) 
and inserting ‘‘(1) Except to the extent provided in 
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subsection (f), a video service provider may not pro-
vide video service without a franchise.’’. 
(b) FRANCHISE FEE.—Section 622 (47 U.S.C. 542) is 
amended— 
(1) by striking subsections (a) and (b) and in-
serting the following: 
‘‘(a) IN GENERAL.—A franchising authority may im-
pose and collect a franchise fee from a video service provider 
that provides video services within the local franchise area 
of that authority. A franchising authority may not dis-
criminate among video service providers in imposing or col-
lecting any fee assessed under this section. 
‘‘(b) AMOUNT.— 
‘‘(1) IN GENERAL.—The franchise fee imposed by 
a franchising authority under subsection (a) for any 
12-month period may not exceed 5 percent of the 
video service provider’s gross revenue derived in such 
period. For purposes of this section, the 12-month pe-
riod shall be the 12-month period applicable under 
the franchise for accounting purposes. 
‘‘(2) PREPAID
OR
DEFERRED
PAYMENT
AR-
RANGEMENTS.—Nothing in this subsection prohibits a 
franchising authority and a video service provider 
from agreeing that franchise fees which lawfully could 
be collected for any such 12-month period shall be 
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paid on a prepaid or deferred basis, except that the 
sum of the fees paid during the term of the franchise 
may not exceed the amount, including the time value 
of money, which would have lawfully been collected if 
such fees had been paid per annum. 
‘‘(3) FRANCHISING AUTHORITY AND VIDEO SERV-
ICE PROVIDER AGREEMENTS.—Nothing in this section 
precludes a State or local government and a video 
service provider from entering into a voluntary com-
mercial agreement, whereby in consideration for a 
mutually agreed upon reduction in the franchise fee 
under paragraph (1), the video service provider makes 
available to the local unit of government services, 
equipment, capabilities, or other valuable consider-
ation. 
‘‘(4) PEG AND INSTITUTIONAL NETWORK FINAN-
CIAL SUPPORT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (D), a video service provider may 
be required to pay a fee equal to— 
‘‘‘(i) not more than 1 percent of the 
video service provider’s gross revenue in the 
franchise area to the franchising authority 
for the support of public, educational, and 
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governmental access facilities and institu-
tional networks; or 
‘‘(ii) the value, on a per subscriber 
basis, of all monetary grants or in-kind 
services or facilities for public, educational, 
or governmental access facilities provided 
by the cable operator in the franchise area 
with the most cable service subscribers in 
the calendar year preceding the date of en-
actment of the Video Competition and Sav-
ings for Consumers Act of 2006, pursuant to 
that cable operator’s existing franchise in 
effect on the date of enactment of that Act. 
‘‘(B) CALCULATION
DATA.—A franchising 
authority may require a cable operator to pro-
vide information sufficient to calculate the per- 
subscriber equivalent fee allowed by subpara-
graph (A)(ii). The information shall be treated 
as confidential and proprietary business infor-
mation. The payments made by a video service 
provider pursuant to subparagraph (A) shall be 
assessed and collected in a manner consistent 
with this section. 
‘‘(C) 
EXISTING
INSTITUTIONAL
NET-
WORKS.— 
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