Protecting Community Television Act

Protecting Community Television Act

This bill limits the scope of the franchise fee paid by cable operators to encompass only a tax, fee, or other monetary assessment. (This fee is charged by a state or local authority for a franchise that a cable operator must obtain in order to provide its services in a particular area.)

Historically, the franchise fee, which is capped at 5% of the franchise holder's gross revenues from providing cable services, did not include certain in-kind contributions and other costs, including some costs that support public, educational, and governmental (PEG) access channels. However, under a rule adopted on August 1, 2019, the Federal Communications Commission included most cable-related in-kind contributions and costs for PEG channels (except for certain capital costs) paid by new entrants and incumbent cable operators as part of the franchise fee, and therefore subject to the cap. This bill excludes those contributions and costs from the cap.