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To: Public Utilities
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Powell
HOUSE BILL NO. 1664
(As Sent to Governor)
AN ACT TO CREATE THE MISSISSIPPI VIDEO SERVICE ACT; TO STATE 1
THE INTENTION OF THE LEGISLATURE; TO PROVIDE CERTAIN DEFINITIONS 2
RELATING TO THIS ACT; TO PROVIDE FOR FRANCHISING AUTHORITY; TO 3
REQUIRE PROVIDERS TO OBTAIN A CERTIFICATE OF FRANCHISE AUTHORITY 4
FROM THE SECRETARY OF STATE BEFORE CONDUCTING BUSINESS UNDER THIS 5
ACT; TO REQUIRE PROVIDERS TO MEET CERTAIN REQUIREMENTS; TO PROVIDE 6
FOR INCUMBENT VIDEO SERVICE PROVIDERS; TO REQUIRE APPLICATIONS FOR 7
CERTIFICATES OF FRANCHISE AUTHORITY TO INCLUDE CERTAIN 8
INFORMATION; TO PROVIDE THE DUTIES AND RESPONSIBILITIES OF THE 9
SECRETARY OF STATE WITH REGARD TO CERTIFICATES OF FRANCHISE 10
AUTHORITY UNDER THIS ACT; TO PROVIDE FOR TRANSFER AND TERMINATION 11
OF CERTIFICATES; TO PROVIDE CERTAIN FEES RELATING TO FRANCHISING 12
AUTHORITY; TO PROVIDE FOR USE OF PUBLIC RIGHTS-OF-WAY BY HOLDER OF 13
THE CERTIFICATE OF FRANCHISING AUTHORITY; TO PROVIDE FOR FEES PAID 14
TO THE POLITICAL SUBDIVISION WHERE SERVICE OCCURS; TO PROHIBIT 15
POLITICAL SUBDIVISIONS FROM REQUIRING CERTAIN ADDITIONAL FEES OR 16
CALCULATION METHODS; TO PROVIDE FOR NONCOMPLIANCE WITH THIS ACT; 17
TO PROVIDE REMEDIES FOR SUCH NONCOMPLIANCE; TO PROVIDE CUSTOMER 18
SERVICE STANDARDS RELATING TO VIDEO SERVICE PROVIDERS; TO PROVIDE 19
CERTAIN DESIGNATION AND USE OF CHANNEL CAPACITY FOR PUBLIC, 20
EDUCATIONAL OR GOVERNMENTAL USE; TO PROVIDE FOR APPLICATION OF 21
THIS ACT; AND FOR RELATED PURPOSES. 22
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 23
SECTION 1. This act shall be known and may be cited as the 24
"Mississippi Video Service Act." It is the intent of the 25
Legislature that nothing in this act shall be construed to 26
diminish, impair, limit or preempt the authority of a political 27
subdivision over public rights-of-way that the political 28
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subdivision owns, maintains and is responsible for, including the 29
authority to manage, regulate and protect those rights-of-way in 30
the public interest. Nothing in this act shall be construed to 31
relieve a video service provider of its obligation to comply with 32
all generally applicable rights-of-way management regulations of a 33
political subdivision. Nothing in this act shall be construed to 34
limit the police powers of a political subdivision to protect 35
public health, safety and welfare. 36
SECTION 2. The following words and phrases have the meanings 37
as provided in this section unless the context clearly indicates 38
otherwise: 39
(a) "Access to video service" means the capability of a 40
video service provider to provide video service at a household 41
address irrespective of whether a subscriber has ordered the 42
service or the service is provided at the address. 43
(b) "Books and records" includes, without limitation: 44
(i) Records kept in the regular course of business 45
and that are not limited to accounting records; 46
(ii) Billing detail records; and 47
(iii) Tax billing detail records. 48
(c) "Cable service" means the same as defined in 47 USC 49
Section 522, as it existed on January 1, 2026. 50
(d) "Certificate of franchise authority" means a 51
certificate issued by the Secretary of State to a video service 52
provider under this act. 53
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(e) (i) 1. "Franchise" means the same as defined in 54
47 USC Section 522, as it existed on January 1, 2026. 55
2. A certificate of franchise issued under 56
this act shall constitute a franchise for the purpose of 47 USC 57
Section 542, as it existed on January 1, 2026. 58
(ii) "Franchise" also means any agreement between 59
a video service provider and a political subdivision under which a 60
video service provider is authorized or otherwise permitted to 61
provide video service in the political subdivision. 62
(f) "Franchising entity" means this state or a city or 63
county in this state authorized by state or federal law to grant a 64
franchise. 65
(g) "Governing body" means the board of aldermen or 66
city council of a municipality or the county board of supervisors. 67
(h) "Incumbent video service provider" means a person 68
that provides cable or video service and holds a franchise issued 69
by a political subdivision before July 1, 2026. 70
(i) "Nonincumbent video service provider" means: 71
(i) A person authorized under this act to provide 72
video service in an area in which video service is being provided 73
by an incumbent video service provider; 74
(ii) A person authorized under this act to provide 75
service in a geographical area in which on July 1, 2026, there was 76
no incumbent video service provider providing video service; or 77
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(iii) Any other person who provides video service 78
after July 1, 2026, that is not an incumbent video service 79
provider. 80
(j) "Political subdivision" means a city, county, or 81
other governmental entity of the state having maintenance and 82
operation responsibility over the public rights-of-way in a 83
geographical area for which a franchise or certificate of 84
franchise authority has been issued by a franchising entity. 85
(k) "Public rights-of-way" means the area on, below, or 86
above a public roadway, highway, street, public sidewalk, alley, 87
waterway, or utility easement dedicated for compatible uses. 88
(l) "Service area" means contiguous geographical 89
territory in the state where a video service provider may provide 90
video service under a certificate of franchise authority. 91
(m) "Service tier" means a category of video service 92
provided by a video service provider to a subscriber and for which 93
a separate rate is charged by the video service provider. 94
(n) (i) "Subscriber" means a person in this state who 95
buys video service. 96
(ii) "Subscriber" does not include a person who 97
buys video service for resale and that, on resale, is required to 98
pay a video service provider fee under this act or under the terms 99
of a franchise with a political subdivision. 100
(o) (i) "Video service" means the delivery of video 101
programming by a video service provider to subscribers in which: 102
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1. The video programming is generally 103
considered comparable to video programming delivered to viewers by 104
a television broadcast station, cable service, or digital 105
television service, without regard to the technology used to 106
deliver the video service, including internet protocol 107
technologies; and 108
2. The service is provided primarily through 109
equipment or facilities owned, controlled, constructed, or 110
operated by the video service provider and located in whole or in 111
part in, on, under, or over any public right-of-way. 112
(ii) "Video service" includes cable service and 113
video service delivered by a community antenna television system. 114
(iii) "Video service" excludes video programming: 115
1. Provided to persons: 116
a. In their capacity as subscribers to 117
commercial mobile service as defined in 47 USC Section 332(d), as 118
it existed on January 1, 2026; or 119
b. By means of direct-to-home satellite 120
services as defined in 47 USC Section 303(v), as it existed on 121
January 1, 2026, that are transmitted from a satellite directly to 122
a customer's premises without using or accessing any portion of 123
the public right-of-way; or 124
2. Accessed via a service that enables end 125
users to access content, information, electronic mail, or other 126
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services offered over the public internet, including streaming 127
content. 128
(p) "Video service provider" means a provider of video 129
service, including, without limitation, a cable service provider, 130
an incumbent video service provider, and a nonincumbent video 131
service provider. 132
(q) "Video service provider fee" means the amount paid 133
by a video service provider to a political subdivision under this 134
act. 135
SECTION 3. (1) After May 31, 2026: 136
(a) A person shall not act as a video service provider 137
within the state unless the person: 138
(i) Is providing video service under a franchise 139
from the political subdivision in which service is to be provided 140
which is in effect on May 31, 2026, or a subsequent renewal of the 141
franchise; 142
(ii) Elects to: 143
1. Negotiate a franchise with a political 144
subdivision that establishes the terms and conditions applicable 145
to that person to provide video service within the jurisdictional 146
boundaries of the political subdivision and has been issued a 147
franchise from the political subdivision for such a purpose; or 148
2. Adopt the terms and conditions of an 149
existing franchise issued by a political subdivision to an 150
incumbent video service provider providing video service within 151
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the same service area and that has been issued a franchise from 152
the political subdivision authorizing the video service provider 153
to provide video services within the political subdivision under 154
the same terms and conditions as the franchise issued to an 155
incumbent video service provider in the political subdivision; or 156
(iii) Has been granted a certificate of franchise 157
authority to do business in the state by the Secretary of State as 158
authorized in this act; and 159
(2) A franchise between a political subdivision and a video 160
service provider expires on the earlier of: 161
(a) Ten (10) years from the date the franchise was 162
effective; or 163
(b) The original expiration date of the franchise. 164
(3) This act does not prohibit a person from holding a 165
franchise issued by a political subdivision and holding a 166
certificate of franchise authority issued by the Secretary of 167
State for a different service area. 168
(4) Except as permitted under this section, a video service 169
provider shall not hold a franchise issued by a political 170
subdivision and a certificate of franchise authority issued by the 171
Secretary of State for the same service area. 172
(5) An incumbent video service provider may submit an 173
application for a certificate of franchise authority for a service 174
area in which the incumbent video service provider has an existing 175
franchise from a political subdivision for the service area, and 176
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upon the granting of a certificate of franchise authority to the 177
incumbent video service provider, the incumbent video service 178
provider's franchise from the political subdivision shall no 179
longer be of any force or effect. 180
(6) In each service area in which an incumbent video service 181
provider provides video service, the incumbent video service 182
provider has sole discretion to determine whether or not to apply 183
for a certificate of franchise authority or continue to provide 184
service under an existing franchise issued by a political 185
subdivision. 186
(7) An applicant seeking a certificate of franchise 187
authority shall: 188
(a) Submit an application to the Secretary of State 189
that provides: 190
(i) The name of the applicant; 191
(ii) The address of the applicant's principal 192
place of business in the state; 193
(iii) The names of the applicant's principal 194
executive officers; 195
(iv) The designated Mississippi representative for 196
the applicant; 197
(v) Identification of the political subdivisions 198
or parts of political subdivisions constituting the service areas 199
in which the applicant intends to provide video service; and 200
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(vi) The date on which the applicant intends to 201
begin providing video service in the service area described in the 202
application; 203
(b) Provide verification from an officer, general 204
partner, or managing member of the applicant that: 205
(i) The applicant has filed with the Federal 206
Communications Commission the applicable forms needed by the 207
Federal Communications Commission in advance of offering video 208
service in this state; 209
(ii) The applicant is legally, financially, and 210
technically qualified to provide video service; and 211
(iii) The applicant has and maintains with one (1) 212
or more companies licensed to do business in the state 213
comprehensive general liability insurance coverage and automobile 214
liability insurance coverage. 215
1. The insurance policy shall require that 216
the insurance carrier pay on behalf of the applicant, up to a 217
limit of not less than One Million Dollars ($1,000,000.00) for 218
bodily or personal injury, death, or property damage or loss as a 219
result of any one (1) occurrence or accident, regardless of the 220
number of persons injured or the number of claimants, arising out 221
of the negligent or otherwise wrongful act or omission of the 222
applicant, or the applicant's employees or agents. 223
2. A master performance bond filed with the 224
Secretary of State's office with a value of One Million Dollars 225
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($1,000,000.00), or an attestation that the applicant will 226
establish an individual performance bond with the political 227
subdivision to be served upon request. A political subdivision 228
may request a performance bond only when a video service provider 229
has indicated an intention to perform construction work in the 230
rights-of-way of the political subdivision, and the amount shall 231
be reasonably tied to the work being performed. The Secretary of 232
State shall promulgate rules establishing a process by which a 233
political subdivision may assert claims against a master 234
performance bond for unpaid right-of-way remediation costs. 235
3. A certificate of automobile liability 236
self-insurance issued to the applicant and maintained under 237
Section 63-15-53, Mississippi Code of 1972, satisfies the 238
liability insurance coverage requirements of this subsection; and 239
(c) Submit the filing fee as required under this act. 240
(8) Upon receipt of an application for a certificate of 241
franchise authority under this section, the Secretary of State 242
shall: 243
(a) Notify the applicant within thirty (30) days after 244
receipt of the application whether the application needs 245
additional information or is complete; 246
(b) Issue a certificate of franchise authority within 247
fifteen (15) days after the application is complete for any 248
provider seeking franchise authority pursuant to Section 3(a)(iii) 249
of this act, the certificate of franchise authority issued by the 250
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Secretary of State shall be provisional and shall become final 251
only upon a certification by the video service provider of the 252
date on which video service was launched in the political 253
subdivision; and 254
(c) Provide written notice of a certificate of 255
franchise authority within fifteen (15) days after issuance of a 256
certificate of franchise authority to the governing body of each 257
political subdivision located in the service area designated in 258
the application for a certificate of franchise authority. 259
(9) A holder of a certificate of franchise authority may 260
change the boundaries of an existing service area authorized under 261
the certificate of franchise authority by notifying the political 262
subdivision in writing describing the modification and filing 263
written notice of the modification with the Secretary of State 264
with the filing fee required under this act. The boundary 265
modifications are effective ten (10) days after such written 266
notice is filed with the Secretary of State and provided to the 267
political subdivision. Such modifications shall not extend the 268
term of the certificate of franchise authority as established in 269
subsection (12) of this section. 270
(10) A certificate of franchise authority is transferrable. 271
To transfer a certificate of franchise authority, the successor 272
shall: 273
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(a) Notify the political subdivision in writing of the 274
transfer ten (10) days before an application is filed with the 275
Secretary of State; 276
(b) File an application containing the information 277
required in subsection (7) of this section and proof that the 278
notice required in paragraph (a) of this subsection has been 279
given; and 280
(c) Acknowledge with the Secretary of State that the 281
successor shall provide notice to the political subdivision with 282
jurisdiction concerning the public rights-of-way to be used to 283
undertake operation and maintenance of video facilities under an 284
approved certificate of franchise authority. 285
A notice of transfer is approved once received by the 286
Secretary of State. 287
(11) The holder of a certificate of franchise authority may 288
terminate the certificate of franchise authority by submitting a 289
written notice to the Secretary of State and an affected political 290
subdivision. 291
(12) A certificate of franchise authority is: 292
(a) Nonexclusive; 293
(b) Valid for an initial term of ten (10) years, 294
subject to changes in federal law; and 295
(c) Renewable for additional ten-year periods for video 296
service providers in compliance with the requirements of 297
subsection (7) of this section to the extent required for the 298
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purposes of 47 USC Sections 521 through 561, as it existed on 299
January 1, 2026, the state shall constitute the franchising 300
authority for video service providers in the state. 301
(13) The duties of the Secretary of State under this act are 302
ministerial. The Secretary of State shall not condition or limit 303
a certificate of franchise authority by imposing on the holder of 304
a certificate of franchise authority any obligations or 305
requirements that are not authorized by this act. 306
SECTION 4. The fees for a certificate of franchise authority 307
to be collected by the Secretary of State include: 308
(a) An application filing fee as set by the Secretary 309
of State that includes the cost of issuance of a certificate of 310
franchise authority by the Secretary of State; and 311
(b) A fee as set by the Secretary of State for 312
accepting an amendment to a certificate of franchise authority or 313
providing a notice required by this act. 314
SECTION 5. (1) A political subdivision shall allow the 315
holder of a certificate of franchise authority to install, 316
construct and maintain facilities in the public rights-of-way 317
subject to the political subdivision's reasonable rights-of-way 318
management, permitting, inspection, coordination and safety 319
requirements adopted to protect the public health, safety and 320
welfare. 321
(2) A political subdivision shall provide the holder of a 322
certificate of franchise authority with open, comparable, 323
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nondiscriminatory, and competitively neutral access to the public 324
rights-of-way in its jurisdiction. 325
(3) Nothing in this act shall be construed to exempt a video 326
service provider from compliance with all lawful political 327
subdivision land use and permitting regulations, including, 328
without limitation, zoning laws, building permit requirements, 329
pole attachment agreements, street cut permits, boarding ordinance 330
regulations and other permits required for the use of a political 331
subdivision's right-of-way. 332
(4) Nothing in this act shall be construed to exempt a video 333
service provider from obtaining, complying with or being subject 334
to reasonable local permits, authorizations or approvals required 335
for any work within the public rights-of-way. 336
(5) A political subdivision may require and enforce local 337
permits to ensure: 338
(a) Advance notice of proposed work within the public 339
rights-of-way; 340
(b) Sequencing of construction activity to avoid 341
conflicts with existing or planned public works; 342
(c) Coordination with existing utilities and planned 343
municipal capital projects; and 344
(d) Protective construction methods, including, but not 345
limited to: 346
(i) Drilling requirements; 347
(ii) Minimum depth of cover/spacing; 348
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(iii) Traffic control plans; 349
(iv) Pavement and surface restoration to a 350
condition equal to or better than the pre-existing conditions; 351
(v) Regulation of the days and hours during which 352
boring and excavation activities may occur; 353
(vi) Proper staging and placement of equipment and 354
materials; and 355
(vii) Reasonable limitations on the number, 356
duration and geographic concentration of permits issued or active 357
at any given time to prevent disruption of public services and to 358
avoid overwhelming the response capacity of water, sewer and other 359
municipal personnel or contractors. 360
(6) A political subdivision may impose reasonable permit, 361
inspection, restoration and traffic control fees that reimburse 362
the political subdivision for its actual costs in administering 363
and enforcing rights-of-way permits, provided such fees are 364
nondiscriminatory and proportionate to the impacts caused by the 365
video service provider's work. 366
(7) Nothing in this act shall be construed to limit, alter, 367
impair or supersede the authority of a political subdivision to 368
require the relocation of facilities located within the public 369
rights-of-way, at the video service provider's expense, when such 370
relocation is reasonably necessary for public infrastructure 371
projects, roadway improvements, drainage enhancements or public 372
safety improvements. 373
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(8) A video service provider may offer such other services 374
over its existing facilities, without having to obtain additional 375
franchises, licenses, permits or authorizations for use of the 376
right-of-way; provided, however, that a political subdivision may 377
require a permit when the provision of such services necessitates 378
the installation, placement, replacement or material modification 379
of equipment within the public rights-of-way. 380
(9) Unless otherwise agreed to by the governing body, a 381
video service provider shall remove any above-ground facilities, 382
including poles, cables, wires, pedestals, cabinets, amplifiers, 383
and associated equipment located within the public rights-of-way 384
that is abandoned, obsolete, no longer in active service, or 385
rendered duplicative by the installation of replacement 386
facilities. 387
Such removal shall occur within one hundred eighty (180) days 388
after receipt of written notice from the political subdivision; 389
however, facilities rendered duplicative by placement into the 390
service of replacement facilities shall be removed promptly, and 391
in no event later than sixty (60) days after such replacement 392
facilities are placed into service, unless the political 393
subdivision approves a longer period for good cause shown. 394
Facilities posing an immediate threat to public safety shall be 395
secured or removed promptly in accordance with a timeframe 396
reasonably directed by the political subdivision. 397
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If, at any time, a video service provider ceases to provide 398
video service, as defined in this act, the video service provider 399
shall not be required to remove its facilities from the public 400
rights-of-way so long as such facilities remain in active use to 401
provide lawful communications services and do not interfere with 402
the public health, safety, or welfare, the use of the public 403
rights-of-way, or the operation of municipal infrastructure. 404
Nothing in this subsection shall limit the authority of a 405
political subdivision to require relocation, removal, or 406
consolidation of facilities as otherwise provided in this act. 407
(10) A video service provider shall maintain its facilities 408
located within the public rights-of-way in a safe condition and in 409
good working order so as not to interfere with the public health, 410
safety or welfare, the use of the public rights-of-way, or the 411
operation of municipal infrastructure. 412
Upon written notice from the political subdivision: 413
(a) Facilities that pose an immediate threat to public 414
health or safety shall be secured, repaired, or removed 415
immediately, or within such shorter timeframe as reasonably 416
directed by the political subdivision; 417
(b) Facilities determined to be unsafe, structurally 418
unsound, or noncompliant with applicable construction standards 419
shall be repaired, replaced, stabilized, or removed within thirty 420
(30) days, unless the political subdivision approves a longer 421
period for good cause shown; and 422
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(c) Routine maintenance necessary to bring facilities 423
into compliance shall be completed within ninety (90) days, unless 424
otherwise approved by the political subdivision. Nothing in this 425
subsection shall relieve a video service provider of its 426
obligation to comply with applicable safety codes and generally 427
accepted engineering standards. All maintenance shall be 428
performed in a manner that minimizes disruption to public travel 429
and municipal operations. 430
SECTION 6. (1) The following words and phrases have the 431
meanings as provided in this section unless the context clearly 432
indicates otherwise: 433
(a) "Gross revenue" shall be calculated in accordance 434
with generally accepted accounting principles and means all 435
consideration of any kind or nature, including, without 436
limitation, cash, credit, property, and in-kind contributions, 437
services, or goods derived by the holder of a certificate of 438
franchise authority from the operation of the video service 439
provider's network to provide video service within the political 440
subdivision. 441
(i) "Gross revenue" includes all consideration 442
paid to the holder of a certificate of franchise authority and its 443
affiliates only to the extent that the holder of a certificate of 444
franchise authority or its affiliates are acting as a provider of 445
video service under this act, which includes the following: 446
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1. All fees charged to subscribers for any 447
video services provided by the holder of a certificate of 448
franchise authority; 449
2. Any fee imposed on the holder of a 450
certificate of franchise authority by this act that is passed 451
through and paid by subscribers, including, without limitation, 452
the video service fee; 453
3. Compensation received by the holder of a 454
certificate of franchise authority or its affiliates that is 455
derived from the operation of the holder of a certificate of 456
franchise authority's network to provide video service with 457
respect to commissions that are paid to the holder of a 458
certificate of franchise authority as compensation for promotion 459
or exhibition of any products or services on the holder of 460
certificate of franchise authority's network, including "home 461
shopping" or a similar channel under this subsection (1); and 462
4. A pro rata portion of all revenue derived 463
by the holder of a certificate of franchise authority or its 464
affiliates under compensation arrangements for advertising derived 465
from the operation of the holder of a certificate of franchise 466
authority's network to provide the video service within a 467
political subdivision under this subsection. The allocation is 468
based on the number of subscribers in the political subdivision 469
divided by the total number of subscribers in relation to the 470
relevant regional or national compensation arrangement. 471
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Advertising commissions paid to third parties shall not be netted 472
against advertising revenue included in gross revenue. Revenue of 473
an affiliate derived from the affiliate's provision of video 474
service is gross revenue to the extent the treatment of such 475
revenue as revenue of the affiliate and not of the holder of a 476
certificate of franchise authority has the effect, whether 477
intentional or unintentional, of evading the payment of fees that 478
would otherwise be paid to the political subdivision. In no event 479
shall revenue of an affiliate be gross revenue to the holder of a 480
certificate of franchise authority if such revenue is otherwise 481
subject to fees to be paid to the political subdivision. 482
(ii) "Gross revenue" does not include: 483
1. Any revenue not actually received even if 484
billed, such as bad debt; 485
2. Nonvideo service revenues received by any 486
affiliate or any other person in exchange for supplying goods or 487
services used by the holder of a certificate of franchise 488
authority to provide video service; 489
3. Refunds, rebates, or discounts made to 490
subscribers, leased access providers, or a political subdivision; 491
4. Any revenues from services classified as 492
nonvideo service under federal law, including, without limitation, 493
revenue received from telecommunications services, 494
Internet-streaming services, revenue received from information 495
services, and any other revenues attributed by the holder of a 496
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certificate of franchise authority to nonvideo service, according 497
to Federal Communications Commission rules, regulations, 498
standards, or orders; 499
5. Any revenue paid by subscribers to home 500
shopping programmers directly from the sale of merchandise through 501
any home shopping channel offered as part of the video services 502
but not excluding any commissions that are paid to the holder of a 503
certificate of franchise authority as compensation for promotion 504
or exhibition of any products or services on the holder of a 505
certificate of franchise authority's network, such as a "home 506
shopping channel" or a similar channel; 507
6. The sale of video services for resale in 508
which the purchaser is required by this act to collect the fees 509
from the purchaser's customer. This act is not intended to limit 510
state's rights under 47 USC Section 542(h); 511
7. The provision of video services to 512
customers at no charge, including, without limitation, the 513
provision of video services to public institutions, public 514
schools, or governmental entities; 515
8. Any tax of general applicability imposed 516
upon the holder of a certificate of franchise authority or upon 517
subscribers by a city, state, federal, or any other governmental 518
entity and required to be collected by the holder of a certificate 519
of franchise authority and remitted to the taxing entity, 520
including sales and use tax, gross receipts tax, excise tax, 521
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utility users' tax, public service tax, communication taxes, and 522
fees not imposed by this act; 523
9. Any foregone revenue from the holder of a 524
certificate of franchise authority's provision of free or reduced 525
cost video services to any person, including, without limitation, 526
employees of the holder of a certificate of franchise authority, 527
to the political subdivision and other public institutions or 528
other institutions. However, any foregone revenue that the holder 529
of a certificate of franchise authority chooses not to receive in 530
exchange for trades, barters, services, or other items of value is 531
included in gross revenue; 532
10. Sales of capital assets or sales of 533
surplus equipment that are not used by the purchaser to receive 534
video services from the holder of a certificate of franchise 535
authority; 536
11. Directory or Internet advertising 537
revenue, including yellow pages, white pages, banner 538
advertisement, and electronic publishing; and 539
12. Reimbursement by programmers of marketing 540
costs incurred by the holder of a franchise for the introduction 541
of new programming that exceeds the actual costs; and 542
(b) "Provider's network" means the optical spectrum 543
wavelengths, bandwidth, or other current or future technological 544
capacity used for the transmission of video programming over 545
wireline directly to subscribers within the geographic area within 546
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the political subdivision as designated by the provider in its 547
franchise. 548
(2) A video service provider offering video service in a 549
political subdivision under a certificate of franchise authority 550
shall pay to the political subdivision where it provides video 551
service a video service provider fee, as may be required by the 552
political subdivision under this section. 553
(3) The video service provider's fee is: 554
(a) Paid to the political subdivision where video 555
service is provided quarterly, forty-five (45) days after the 556
close of each calendar quarter; 557
(b) Computed as a percentage of gross revenue; and 558
(c) Beginning on the first day after the forty-fifth 559
day after the close of the previous calendar quarter, simple 560
interest at a rate equal to that for judgments shall apply to 561
video service provider fee payments past due. 562
(4) The political subdivision shall not require: 563
(a) Any unreasonable additional fees or charges from 564
the video service provider, except as otherwise provided in this 565
section or Section 5 of this act, including direct costs for 566
reasonable and nondiscriminatory cost-based permit, inspection, 567
restoration, traffic control and rights-of-way management fees 568
necessary to administer, manage and protect the public 569
rights-of-way; or 570
(b) The use of a different calculation method. 571
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(5) (a) The video service provider fee is a percentage of 572
gross revenue and determined by the political subdivision. 573
(b) (i) If there is an incumbent video service 574
provider providing video service in the political subdivision, the 575
video service provider shall pay an amount equal to the percentage 576
of gross revenue paid by an incumbent video service provider or 577
the maximum allowed by federal law under 47 USC Section 542, 578
whichever is less. 579
(ii) If there is not an incumbent video service 580
provider having a franchise agreement with the political 581
subdivision or if a political subdivision has not previously 582
established and assessed a fee to an incumbent video service 583
provider, the political subdivision may establish the video 584
service provider fee in an amount not in excess of the maximum 585
allowed by federal law under 47 USC Section 542. A video service 586
provider shall provide the political subdivision with written 587
notice of its intent to offer video services and request that the 588
political subdivision provide written notice of the video service 589
provider fee. If the political subdivision fails to respond 590
within sixty (60) days, the presumption shall be the maximum 591
allowed by federal law under 47 USC Section 542. 592
(6) The percentage of gross revenue shall apply equally to 593
all video service providers in the political subdivision, 594
regardless of whether they provide video service under a local 595
franchise or a certificate of franchise authority. However, a fee 596
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shall not be imposed on any video service customer except pursuant 597
to a valid franchise or pursuant to a certificate of franchise 598
authority. 599
(7) If the political subdivision enters into an agreement 600
with another nonregulated entity for access to the political 601
subdivision's rights-of-way: 602
(a) For a percentage of revenue, earnings, or some 603
other financial metric, and that percentage is less than that 604
which is agreed upon by the political subdivision and the video 605
service provider, the political subdivision shall, within ninety 606
(90) days, notify the video service provider and reduce the amount 607
of the gross revenue percentage assessed on video service 608
providers to the same percentage as the other nonregulated entity. 609
(b) For a monthly or annual rental fee, the political 610
subdivision shall, within ninety (90) days, notify the video 611
service provider and provide the video service provider the option 612
to provide either the agreed-to percentage or the monthly or 613
annual rental fee, whichever is less. 614
(c) For a one-time fixed fee, the political subdivision 615
shall, within ninety (90) days, notify the video service provider 616
and reduce the amount of the gross revenue percentage assessed on 617
video service providers to zero percent. 618
(8) (a) A political subdivision shall provide ninety (90) 619
days' notice to a video service provider operating in the 620
political subdivision before establishing, increasing, or lowering 621
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a video service provider fee; provided, however, that in no case 622
shall the amount of such provider fee be greater than five percent 623
(5%) of the gross revenue. 624
(b) A video service provider fee or a change to the 625
percentage level of an existing fee is not effective until ninety 626
(90) days after the notice required in this subsection is given to 627
the video service provider. 628
(9) Payment of the fees required in this section shall 629
accompany a written report that: 630
(a) Identifies the amount of gross revenue received 631
from subscribers for the provision of video service to 632
subscribers; and 633
(b) Allows for a proper compliance review by the 634
political subdivision. 635
(10) (a) A political subdivision may conduct an audit of a 636
video service provider to ensure proper and accurate payment of 637
the video service provider fee. 638
(b) To conduct an audit, the political subdivision 639
shall: 640
(i) Provide reasonable advance written notice; 641
(ii) Audit the video service provider not more 642
than one (1) time in a calendar year; and 643
(iii) At its discretion, review the books and 644
records at the location in the jurisdiction where the books and 645
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records are kept or consent to review copies of the books and 646
records provided electronically. 647
(c) The political subdivision and the video service 648
provider are responsible for their respective costs of the audit. 649
(11) Payment of an undisputed amount or refund due to the 650
political subdivision or the video service provider is required 651
within sixty (60) days after it is recognized, plus the interest 652
as computed on civil judgments. 653
(12) The video service provider shall keep business records 654
showing any gross revenue, even if there is a change in ownership, 655
for at least three (3) years after the revenue is recognized by 656
the video service provider in its books and records. 657
(13) A video service provider may identify and collect the 658
amount of the video service provider fee as a separate line item 659
on the regular bill of each subscriber. 660
(14) (a) Any city annexing lands shall notify a video 661
service provider in writing of any such annexation, including a 662
description of the territory annexed. 663
(b) Beginning the first day of the calendar quarter 664
occurring after the video service provider has received at least 665
ninety (90) days' notice of annexation of customers into the 666
city's corporate limits, subscribers within the annexed territory 667
shall be considered city subscribers for purposes of this section. 668
SECTION 7. (1) A video service provider shall not deny 669
access to video service to any group of potential residential 670
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subscribers based on the income of the residents in the local area 671
in which such a group resides. 672
(2) A franchising authority or political subdivision shall 673
not impose on a video service provider any build-out or other 674
requirements for the construction, placement, or installation of 675
facilities used to provide video services. 676
(3) (a) If a court of competent jurisdiction finds that the 677
holder of a certificate of franchise authority is not in 678
compliance with this act, the court shall order the holder of the 679
certificate of franchise authority to cure the noncompliance 680
within a reasonable time. 681
(b) If the holder of a certificate of franchise 682
authority fails to cure the noncompliance as ordered by a court 683
under paragraph (a) of this subsection, the court may remedy the 684
noncompliance. 685
SECTION 8. (1) A video service provider shall comply with 686
the customer service requirements under 47 CFR Section 76.309(c), 687
as it existed on January 1, 2026. 688
(2) (a) A video service provider shall provide a political 689
subdivision, in writing, with a direct point of contact for 690
receiving complaints from the political subdivision. A video 691
service provider shall maintain a local or toll-free number for 692
customer service contact. 693
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(b) A video service provider shall implement an 694
informal process for handling political subdivision or customer 695
inquiries, billing issues, service issues, and other complaints. 696
(c) If an issue is not resolved through the informal 697
process under this section, a political subdivision may request a 698
confidential, nonbinding mediation with the video service 699
provider, with the costs of the mediation to be shared equally 700
between the political subdivision and the video service provider. 701
(3) (a) A video service provider shall notify customers in 702
writing of a change in rates, programming services, or channel 703
positions as soon as possible. 704
(b) Written notice shall be given to subscribers at 705
least thirty (30) days in advance of the change if the change is 706
within the control of the video service provider. 707
(c) The written notice required herein may be provided 708
electronically. 709
SECTION 9. (1) As used in this section, "public, education, 710
and government access channels," also known as "PEG channels," 711
means channels used for noncommercial local interest programming. 712
(2) (a) A video service provider, on the date that it first 713
provides video service to a subscriber in the service area of a 714
political subdivision or within a reasonable time, shall: 715
(i) Designate a sufficient amount of capacity on 716
its video service network to allow PEG channels for noncommercial 717
programming; and 718
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(ii) Designate a sufficient amount of capacity on 719
its video service network to allow up to three (3) PEG channels or 720
channels equal in number to those that have been activated by an 721
incumbent video service provider, if any, on the date that the 722
video service provider first provides video service to a 723
subscriber in a political subdivision, whichever is less. 724
(b) (i) A political subdivision served by an incumbent 725
video service provider that opts to provide service under a 726
certificate of franchise authority issued under this act is 727
entitled to PEG channels under this section. 728
(ii) If the political subdivision was not served 729
by an incumbent video service provider, the video service provider 730
shall provide one (1) PEG channel for the use of the political 731
subdivision. 732
(c) A political subdivision may waive its rights to a 733
PEG channel. 734
(3) (a) A video service provider is responsible for: 735
(i) The transmission of the programming on each 736
channel to subscribers; and 737
(ii) Providing one (1) point of connectivity to 738
each PEG channel distribution point in the political subdivision 739
to be served. 740
(b) A video service provider may: 741
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(i) Provide PEG channels on a service tier 742
subscribed to by more than fifty percent (50%) of a video service 743
provider's subscribers; 744
(ii) Consolidate PEG channels to a single-channel 745
location; and 746
(iii) Provide PEG channels through an application 747
on a menu or as a choice on an assigned channel. 748
(c) A video service provider shall not: 749
(i) Change a channel location assigned to a PEG 750
channel without providing written notice to the affected political 751
subdivision at least thirty (30) days before the date on which the 752
change is to become effective; or 753
(ii) Be required to provide an institutional 754
network or equivalent capacity on its video service network. 755
(d) When technically and economically possible, a video 756
service provider shall: 757
(i) Use reasonable efforts to interconnect its 758
video network to share PEG channel programming with other video 759
service providers through direct cable, microwave link, satellite, 760
or other reasonable method of connection; 761
(ii) Negotiate in good faith to provide 762
interconnection of PEG channels; and 763
(iii) If requesting to interconnect its video 764
network to share PEG channel programming with another video 765
service provider, pay for the cost of the interconnection. 766
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(4) (a) The operation, production, and content of any 767
programming aired on a PEG channel is solely the responsibility of 768
the public, educational, and governmental agencies receiving the 769
benefit of the capacity. 770
(b) The entity producing the PEG channel programming 771
and sending it to the video service provider shall ensure that 772
transmissions, content, or programming to be sent to the video 773
service provider is: 774
(i) Provided in a manner that is capable of being 775
accepted and sent by the video service provider over its video 776
service network without alteration or change in the content or 777
transmission signal; and 778
(ii) Compatible with the technology or protocol 779
used by the video service provider to deliver its video service. 780
(c) Governmental entities utilizing PEG channels shall 781
make the programming available to video service providers 782
providing service in the governmental entity's jurisdiction in a 783
nondiscriminatory manner. 784
(d) The governmental entity providing programming for 785
use on a channel designated for public, education, and government 786
access use may request a change of the point of connectivity but 787
shall pay the video service provider for costs associated with the 788
change of the point of connectivity. 789
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SECTION 10. (1) The Legislature intends that this act be 790
consistent with the Cable Communications Policy Act of 1984, 47 791
USC Section 521 et seq., as it existed on January 1, 2026. 792
(2) Except as otherwise provided in this act, this act shall 793
not be interpreted to prevent a video service provider, a 794
political subdivision, or a franchising entity from entering into 795
a negotiated franchise agreement with a political subdivision or 796
seeking clarification of its rights and obligations under federal 797
or state law or to exercise a right or authority under federal or 798
state law. 799
(3) Nothing in this section shall be interpreted to 800
abrogate, limit or supersede the rights afforded to cable 801
television operators pursuant to Title VI of the Communications 802
Act of 1934, as amended (47 USC Section 521 et seq.). 803
(4) This act does not limit, abrogate, or supersede Article 804
7, Chapter 9, Title 77, Mississippi Code of 1972, regarding 805
telecommunications service in the state, and does not require a 806
telephone corporation to get a certificate of franchise authority 807
or local authorization under this act to permit the telephone 808
corporation to construct, upgrade, operate, or maintain its 809
telecommunications system to provide telecommunications service. 810
(5) The regulation of a person holding a certificate of 811
franchise authority shall be exclusive to the Secretary of State, 812
except with respect to the management and control of public 813
rights-of-way by political subdivisions. 814
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ST: Mississippi Video Service Act; create.
(6) A person holding a certificate of franchise authority 815
shall not be required to obtain an additional franchise from a 816
political subdivision to provide video service within the 817
political subdivision. Nothing in this subsection shall be 818
construed to limit the authority of a political subdivision to 819
require direct costs for reasonable permits, approvals, 820
inspections, bonding, insurance or cost-based fees necessary to 821
manage and protect the public rights-of-way and the public health, 822
safety and welfare. 823
SECTION 11. This act shall take effect and be in force from 824
and after its passage. 825