144 
made in accordance with generally accepted accounting 
principles except as otherwise provided. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) FRANCHISE
FEE.—The term ‘franchise 
fee’— 
‘‘(A) includes any tax, fee, or assessment of 
any kind imposed by a franchising authority or 
a State or local governmental entity on a video 
service provider or subscriber, or both, solely be-
cause of their status as such; but 
‘‘(B) does not include— 
‘‘(i) any tax, fee, or assessment of gen-
eral applicability (including any such tax, 
fee, or assessment imposed on both utilities 
and video service providers or their services 
but not including a tax, fee, or assessment 
which is unduly discriminatory against 
video service providers or subscribers); 
‘‘(ii) any fee that is required by the 
franchise under subsection (b)(4); 
‘‘(iii) requirements or charges inci-
dental to the use of public rights-of-way, in-
cluding payments for bonds, security funds, 
letters of credit, insurance, indemnification, 
penalties, or liquidated damages; 
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‘‘(iv) costs of fines, penalties, or 
recoupment; or 
‘‘(v) any fee imposed under title 17, 
United States Code. 
‘‘(2) GROSS REVENUE.— 
‘‘(A) IN
GENERAL.—The term ‘gross rev-
enue’ means all consideration of any kind or na-
ture including cash, credits, property, and in- 
kind contributions (services or goods) received by 
a video service provider from the provision of 
video service within a franchise area includ-
ing— 
‘‘(i) all charges and fees paid by sub-
scribers for the provision of video service, 
including fees attributable to video service 
when that service is sold individually or as 
part of a package or bundle, or is function-
ally integrated with services other than 
video service; 
‘‘(ii) revenue received by a video serv-
ice provider as compensation for carriage of 
video programming on the provider’s sys-
tem; 
‘‘(iii) compensation received by a video 
service provider as compensation for pro-
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motion or exhibition of any product or serv-
ice on the provider’s video service, such as 
a home shopping or similar channel, subject 
to subparagraph (D)(vi); and 
‘‘(iv) a pro rata portion of all revenue 
derived by a video service provider or an af-
filiate thereof pursuant to a compensation 
arrangement for advertising derived from 
the operation of the provider’s video service 
or the video service within a franchise area 
subject to subparagraph (D)(ii). 
‘‘(B) AFFILIATES.—The gross revenue of a 
video service provider includes gross revenue of 
an affiliate to the extent the exclusion of the af-
filiate’s gross revenue would have the effect of 
permitting the video service provider to evade the 
payment of franchise fees which would otherwise 
be paid by that video service provider for video 
services provided within the franchise area of the 
franchising authority imposing the fee. 
‘‘(C) REVENUE FROM BUNDLED OR FUNC-
TIONALLY INTEGRATED SERVICE.—In the case of 
a video service that is packaged, bundled, or 
functionally integrated with other services, capa-
bilities, or applications, gross revenue shall in-
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