HR 5252 RFS 
‘‘(I) reimbursement by programmers of 
marketing costs actually incurred by the cable 
operator for the introduction of new program-
ming; and 
‘‘(J) the sale of cable services for resale to 
the extent the purchaser certifies in writing 
that it will resell the service and pay a franchise 
fee with respect thereto. 
‘‘(4) FUNCTIONALLY INTEGRATED SERVICES.— 
In the case of a cable service that is bundled or inte-
grated functionally with other services, capabilities, 
or applications, the portion of the cable operator’s 
revenue attributable to such other services, capabili-
ties, or applications shall be included in gross rev-
enue unless the cable operator can reasonably iden-
tify the division or exclusion of such revenue from 
its books and records that are kept in the regular 
course of business. 
‘‘(5) AFFILIATE REVENUE.—Revenue of an af-
filiate shall be included in the calculation of gross 
revenues to the extent the treatment of such revenue 
as revenue of the affiliate has the effect (whether in-
tentional or unintentional) of evading the payment 
of franchise fees which would otherwise be paid for 
cable service. 
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‘‘(6) AFFECT ON OTHER LAW.—Nothing in this 
section is intended to limit a franchising authority’s 
rights pursuant to section 622(h). 
‘‘(p) ADDITIONAL DEFINITIONS.—For purposes of 
this section: 
‘‘(1) CABLE OPERATOR.—The term ‘cable oper-
ator’ has the meaning provided in section 602(5) ex-
cept that such term also includes a person or group 
with a national franchise under this section. 
‘‘(2) FRANCHISE FEE.— 
‘‘(A) The term ‘franchise fee’ includes any 
fee or assessment of any kind imposed by a 
franchising authority or other governmental en-
tity on a person or group providing cable serv-
ice in a franchise area under this section, or on 
a subscriber of such person or group, or both, 
solely because of their status as such. 
‘‘(B) The term ‘franchise fee’ does not in-
clude— 
‘‘(i) any tax, fee, or assessment of 
general applicability (including any such 
tax, fee, or assessment imposed on both 
utilities and a person or group providing 
cable service in a franchise area under this 
section (or the services of such person or 
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group) but not including a fee or assess-
ment which is unduly discriminatory 
against such person or group or the sub-
scribers of such person or group); 
‘‘(ii) any fee assessed under sub-
section (e)(2) for support of public, edu-
cational, and governmental use and institu-
tional networks (as such term is defined in 
section 611(f)); 
‘‘(iii) requirements or charges under 
subsection (f)(2) for the management of 
public rights-of-way, including payments 
for bonds, security funds, letters of credit, 
insurance, indemnification, penalties, or 
liquidated damages; or 
‘‘(iv) any fee imposed under title 17, 
United States Code. 
‘‘(3) INTERNET
ACCESS
SERVICE.—The term 
‘Internet access service’ means a service that enables 
users to access content, information, electronic mail, 
or other services offered over the Internet. 
‘‘(4) UNIT
OF
GENERAL
LOCAL
GOVERN-
MENT.—The term ‘unit of general local government’ 
means— 
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‘‘(A) a county, township, city, or political 
subdivision of a county, township, or city; 
‘‘(B) the District of Columbia; or 
‘‘(C) the recognized governing body of an 
Indian tribe or Alaskan Native village that car-
ries out substantial governmental duties and 
powers.’’. 
(b) IMPLEMENTING
REGULATIONS.—The Federal 
Communications Commission shall prescribe regulations 
to implement the amendment made by subsection (a) with-
in 120 days after the date of enactment of this Act. 
SEC. 102. DEFINITIONS. 
Section 602 of the Communications Act of 1934 (47 
U.S.C. 522) is amended— 
(1) in paragraph (4), by inserting before the 
semicolon at the end the following: ‘‘, or its equiva-
lent as determined by the Commission’’; 
(2) in paragraph (5)(A), by inserting ‘‘(regard-
less of whether such person or group provides such 
service separately or combined with a telecommuni-
cations service or information service)’’ after ‘‘over 
a cable system’’; 
(3) by striking paragraph (6) and inserting the 
following: 
‘‘(6) the term ‘cable service’ means— 
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