(a)Subject to subsection (f), not later than
forty-five (45) days after the end of each calendar quarter, the holder
shall pay to each unit included in the holder's service area under a
certificate issued under this chapter a franchise fee equal to:
(1)the amount of gross revenue received from providing video
service in the unit during the most recent calendar quarter, as
determined under section 23 of this chapter; multiplied by
(2)except as provided in subsection (c) or (d), whichever applies,
a percentage equal to one (1) of the following:
(A)If a local franchise has never been in effect in the unit
before July 1, 2006, five percent (5%).
(B)If no local franchise is in effect in the unit on July 1, 2006,
but one (1) or more local franchises have been in effect in the
unit before Ju
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(a) Subject to subsection (f), not later than
forty-five (45) days after the end of each calendar quarter, the holder
shall pay to each unit included in the holder's service area under a
certificate issued under this chapter a franchise fee equal to:
(1) the amount of gross revenue received from providing video
service in the unit during the most recent calendar quarter, as
determined under section 23 of this chapter; multiplied by
(2) except as provided in subsection (c) or (d), whichever applies,
a percentage equal to one (1) of the following:
(A) If a local franchise has never been in effect in the unit
before July 1, 2006, five percent (5%).
(B) If no local franchise is in effect in the unit on July 1, 2006,
but one (1) or more local franchises have been in effect in the
unit before July 1, 2006, the percentage of gross revenue paid
by the holder of the most recent local franchise in effect in the
unit, unless the unit elects to impose a different percentage,
which may not exceed five percent (5%).
(C) If there is one (1) local franchise in effect in the unit on July
1, 2006, the percentage of gross revenue paid by the holder of
that local franchise as a franchise fee to the unit, unless the unit
elects to impose a different percentage, which may not exceed
five percent (5%). Upon the expiration of a local franchise
described in this clause, the percentage shall be determined by
the unit but may not exceed five percent (5%).
(D) If there is more than one (1) local franchise in effect with
respect to the unit on July 1, 2006, a percentage determined by
the unit, which may not exceed the greater of:
(i) five percent (5%); or
(ii) the percentage paid by a holder of any local franchise in
effect in the unit on July 1, 2006.
(b) If the holder provides video service to an unincorporated area in
Indiana, as described in section 23(e) of this chapter, the holder shall:
(1) calculate the franchise fee with respect to the unincorporated
area in accordance with subsection (a); and
(2) remit the franchise fee to the county in which the
unincorporated area is located.
If an unincorporated area served by the provider is located in one (1)
or more contiguous counties, the provider shall remit part of the
franchise fee calculated under subdivision (1) to each county having
territory in the unincorporated area served. The part of the franchise fee
remitted to a county must bear the same proportion to the total
franchise fee for the area, as calculated under subdivision (1), that the
number of subscribers in the county bears to the total number of
subscribers in the unincorporated area served.
(c) In the case of a franchise issued before January 1, 2026, the
percentage applied under subsection (a)(2) to the holder's gross
revenue for calendar years beginning on or after January 1, 2026, shall
be the percentage that applied under subsection (a)(2) on December 31,
2025, less one percent (1%). However, the percentage applied to the
gross revenue of a holder subject to this subsection may not be reduced
to an amount that is less than one percent (1%).
(d) In the case of a franchise that is initially issued by the
commission after December 31, 2025, the percentage applied under
subsection (a)(2) to the gross revenue of a holder subject to this
subsection may not exceed four percent (4%).
(e) With each payment of a franchise fee to a unit under this section,
the holder shall include a statement explaining the basis for the
calculation of the franchise fee. A unit may review the books and
records of:
(1) the holder; or
(2) an affiliate of the holder, if appropriate;
to the extent necessary to ensure the holder's compliance with section
23 of this chapter in calculating the gross revenue upon which the
remitted franchise fee is based. Each party shall bear the party's own
costs of an examination under this subsection. If the holder and the unit
cannot agree on the amount of gross revenue on which the franchise fee
should be based, either party may petition the commission to determine
the amount of gross revenue on which the franchise fee should be
based. A determination of the commission under this subsection is
final, subject to the right of direct appeal by either party.
(f) A franchise fee owed by a holder to a unit under this section may
be passed through to, and collected from, the holder's subscribers in the
unit. To the extent allowed under 47 U.S.C. 542(c), the holder may
identify as a separate line item on each regular bill issued to a
subscriber:
(1) the amount of the total bill assessed as a franchise fee under
this section; and
(2) the identity of the unit to which the franchise fee is paid.
(g) A holder that elects under section 21(b)(1) of this chapter to
continue providing video service under a local franchise is not required
to pay the franchise fee prescribed under this section, but shall pay any
franchise fee imposed under the terms of the local franchise.